Summary of Proposed Investment
Project Number
506997
Company Name
INTERNATIONAL FINANCE CORPORATION
Date SPI Disclosed
May 6, 2002
Country
World Region
Industry
Infrastructure
Projected Board Date
Jun 6, 2002
Status
Pending Approval
Sector
Other (For Non-Investment Projects)
Department
Risk Mgmt. and Financial Policy
Environmental Category
C - No Impact
Project Description
IFC’s approach to sustainable development is to recognize its potential to bring financial value to businesses in emerging economies. By making more visible the business case for more advanced approaches to Corporate Citizenship and Sustainability, IFC believes that broader benefits in the provision of public goods, social equity in local economic development, and environmental conditions will accrue. Research by IFC (and others) has demonstrated that these links exist. The Corporation has developed a substantial data base of IFC experiences to help inform and guide future efforts in these areas, and is planning to jointly publish key findings and conclusions later this year. However, recognition and understanding of these opportunities among businesses in emerging economies are highly variable. They therefore face risks in new potential barriers to trade and investment in relation to social and environmental performance.
The Corporate Citizenship Facility is designed to support best practices in emerging markets businesses, disseminate them through business to business interactions, and leverage benefits at the sector level. The CCF will implement its objectives through three programs: (i) the Environmental Stewardship Program, (ii) the Communities, Stakeholders and Engagement Program, and (iii) the Employment and Employees Program. The issues to be addressed through these programs are coalescing as core developmental challenges and critical business issues developing countries.
IFC''s role: The design of the CCF draws heavily on IFC’s extensive experience in working on environmental and social issues with project sponsors. It responds to a growing demand from clients for assistance to address changing business expectations in relation to environmental and social performance, that are being driven by external pressures (such as concerns about the impact of globalization, consumer and shareholder action, access to markets and capital); internal responses (such as brand and reputational risk assurance strategies, and increasing cost efficiencies through more resource efficient production); and the availability and use of information about company activities. The CCF will enhance the commitment that IFC has made to expand the range of non-financial value-added support to clients, and will support the global leadership role in support of sustainability that IFC is seeking to develop. Efforts in the area of corporate citizenship to date have been largely supported by individual and ad-hoc trust fund financing. To achieve the required scale and impact of change in our client base and wider private sector goes beyond the level of support that IFC can currently provide. If IFC is to achieve significant change, it needs to be able to deliver a more proactive, focused, and structured program of project support, through a dedicated project facility.
Developmental impact: CCF will have potentially significant development impact through the provision of guidance and support to the private sector in the areas of corporate social responsibility and environmental stewardship. It is clear that environmental and social performance is becoming an increasingly important issue for many businesses in emerging economies and that enhanced performance in these areas can deliver business benefits through reducing operational and reputational risk, increasing access to capital, securing price premiums and market access opportunities, and increasing employee fidelity and retention. By strengthening the environmental and social capacity of companies, CCF will help private sector companies to: (i) identify, define, and promote better practices; (ii) help realize opportunities; and (iii) disseminate and replicate successful findings more widely through the private sector in emerging economies. As such, the objectives of CCF are closely aligned with emerging commitments and strategy in relation to IFCs Sustainability Initiative.
The Corporate Citizenship Facility is designed to support best practices in emerging markets businesses, disseminate them through business to business interactions, and leverage benefits at the sector level. The CCF will implement its objectives through three programs: (i) the Environmental Stewardship Program, (ii) the Communities, Stakeholders and Engagement Program, and (iii) the Employment and Employees Program. The issues to be addressed through these programs are coalescing as core developmental challenges and critical business issues developing countries.
IFC''s role: The design of the CCF draws heavily on IFC’s extensive experience in working on environmental and social issues with project sponsors. It responds to a growing demand from clients for assistance to address changing business expectations in relation to environmental and social performance, that are being driven by external pressures (such as concerns about the impact of globalization, consumer and shareholder action, access to markets and capital); internal responses (such as brand and reputational risk assurance strategies, and increasing cost efficiencies through more resource efficient production); and the availability and use of information about company activities. The CCF will enhance the commitment that IFC has made to expand the range of non-financial value-added support to clients, and will support the global leadership role in support of sustainability that IFC is seeking to develop. Efforts in the area of corporate citizenship to date have been largely supported by individual and ad-hoc trust fund financing. To achieve the required scale and impact of change in our client base and wider private sector goes beyond the level of support that IFC can currently provide. If IFC is to achieve significant change, it needs to be able to deliver a more proactive, focused, and structured program of project support, through a dedicated project facility.
Developmental impact: CCF will have potentially significant development impact through the provision of guidance and support to the private sector in the areas of corporate social responsibility and environmental stewardship. It is clear that environmental and social performance is becoming an increasingly important issue for many businesses in emerging economies and that enhanced performance in these areas can deliver business benefits through reducing operational and reputational risk, increasing access to capital, securing price premiums and market access opportunities, and increasing employee fidelity and retention. By strengthening the environmental and social capacity of companies, CCF will help private sector companies to: (i) identify, define, and promote better practices; (ii) help realize opportunities; and (iii) disseminate and replicate successful findings more widely through the private sector in emerging economies. As such, the objectives of CCF are closely aligned with emerging commitments and strategy in relation to IFCs Sustainability Initiative.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mark Eckstein, Environment Specialist
Environment and Social Development Department
International Finance Corporation
2121 Pennsylvania Avenue, N.W.
Washington, D.C. 20433 USA
Email: meckstein@ifc.org
Environment and Social Development Department
International Finance Corporation
2121 Pennsylvania Avenue, N.W.
Washington, D.C. 20433 USA
Email: meckstein@ifc.org