In this follow-up letter, CSOs respond to IFC’s proposed approach for reviewing the Sustainability Framework and asks for clarification and stronger commitments to ensure the process leads to meaningful improvements in environmental and social safeguards. Some key demands raised include:
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One World Bank Group: as IFC seeks to align its Sustainability Framework with the “One World Bank Group” approach, IFC should strive to integrate positive lessons from the World Bank’s public sector lending.
- Harmonization of E&S standards: the IFC should align with international human rights standards and incorporate, among others, the UN Guiding Principles on Business and Human Rights, including the commitment for investors to provide remedy if they have caused or contributed to adverse rights impacts.
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Principle of no regression: Once environmental and social standards have been set, they should not be weakened or reversed; this is at the core of the principle of no regression.
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Stronger accountability and remedy: CSOs urge the IFC to integrate its Remedial Action Framework and Responsible Exit Principles into the updated framework so communities harmed by IFC projects can obtain remedy.
- Financial Intermediaries: the IFC should improve its ability to retain leverage with financial intermediaries clients and implement the Sustainability Framework down the investment chain,
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Concerns about “mutual reliance” between development banks: The letter warns that arrangements where multilateral development banks rely on one another’s safeguards could restrict affected communities’ access to accountability mechanisms.
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Transparency in the review process: the IFC should publicly disclose the final draft of the revised framework before board approval to allow meaningful public input.
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Inclusive participation: The review process should involve affected communities, Indigenous Peoples, civil society, and other stakeholders, ensuring their perspectives shape the policy update.
You can read the full submission here.