81067 The World Bank Group 2010 Environment Strategy Analytical Background Papers Furthering World Bank Group’s Corporate Environmental Sustainability December 13, 2010 Acknowledgements This report was prepared by Monika Kumar, Adam Rubinfield and Judith Moore from World Bank’s (WB) Corporate Responsibility Team, in partnership with Sarah Raposa, and Maria Fyodorova of International Finance Corporation’s (IFC) Footprint Program. We would like to thank Bilal Rahill, Elizabeth Casqueiro, Mark Malloy, Robert D. Sensenig, Vivek Chaudhry, and Mariam Roshini Jacob for their guidance and review. The authors are grateful to the WB’s General Services Department and IFC’s Facilities Management Department for their continued dedication to m anaging the World Bank Group’s corporate environmental impacts. Table of Contents Acknowledgements ................................................................................................................................ 2 1. Background ..................................................................................................................................... 4 2. Progress to date............................................................................................................................... 6 3. Looking forward ............................................................................................................................. 7 Annex 1: Efficiencies Gained from Initiatives .................................................................................13 Annex 2: WBG Guidelines for Emission Reduction Offsets ...........................................................15 Annex 3: WBG Emission Reduction Plan ........................................................................................17 1. Background The World Bank Group (WBG) has focused on reducing the environmental impacts of its internal operations1 and improving corporate environmental practices since 2002, when the WBG President announced WBG’s commitment to Corporate Social Responsibil ity (CSR)2. That year, external audits conducted by Price Waterhouse Coopers and Green Seal recommended establishing a defined program to manage and reduce the environmental impacts from WBG’s operations and identified specific areas of focus. Suggestions included defining and publishing a strategy for managing and reducing impacts, defining concrete reduction action plans, assigning senior management responsibility for internal ownership of a program, monitoring progress, and publicly disclosing relevant sustainability data. This recommendation led to the establishment of the WB Corporate Responsibility (CR) Program and, three years later, the IFC Footprint Program, which was named an official ‚corporate initiative‛ in Fiscal Year 2009. Since then, not eworthy progress has been made on mitigating WBG’s contribution to climate change, increasing energy efficiency in WBG facilities, improving sustainable procurement practices, and increasing the public disclosure of WBG’s environmental impacts from internal operations. There is still work to be done to integrate sustainability into how WBG runs its daily business operations, however. The objective of this document is to summarize the actions WBG has taken thus far to reduce environmental impacts from internal operations and present an action plan to further integrate sustainability into WBG’s internal operations. Although this work focuses on the environmental impact associated with WBG daily operations, the links between WBG policies and actions related to environmental management and the financial/ social considerations are significant. For example, energy efficiency choices reduce long-term costs and impact budget trade-offs; environmental conditions within the WBG impact workplace health, safety, and morale; WBG facilities and staff management sets an example for the WBG’s client communities; and WBG corporate environmental and social values strengthen and broaden the investor base of IBRD and IFC. Rationale for incorporating environmental sustainability within WBG internal operations 1) Ensuring consistency with our mission In a time when environmental sustainability - especially climate change - is being actively integrated into WBG’s lending portfolio, policy advice and technical assistance, impro ving the World Bank Group’s (WBG) own corporate environmental ‚footprint‛ is essential for WBG’s reputation and credibility on these issues. In addition, reducing WBG’s own corporate environmental impacts is in line with the WBG’s institutional mission on reducing poverty, as environmental degradation impacts the world’s poor disproportionately. 2) Sustainability is Good Business The business case for environmental sustainability is clear. Increasing the efficiency of how WBG runs its business – through facility-level and staff behavior changes – reduces natural 1 “Internal Operations” encompass facilities management, procurement, food services, and all other systems and processes that support the operations of the WBG as it conducts its business day-to-day. 2 Speech by President James Wolfensohn, 2002. 4 resource waste and decreases the costs of day-to-day operations. Annex 1 highlights efficiencies gained through a few key initiatives undertaken or currently in process. In addition, country offices are seeing additional business opportunities from showcasing low carbon and sustainable development behavior for their clients and partners. Examples are discussed later in the document. 3) Commitment to Leadership & Transparency Tracking WBG’s corporate environmental impact data not only helps to identify areas of improvement, but also allows WBG to be a leader among its peers through public reporting of its data. For example, the WBG is the first and only multilateral development bank to report in the Carbon Disclosure Project (CDP), the world’s largest database of institutional self-reported climate change information. Reporting of this data is also in line with WBG’s overall commitment to transparency in how it does business. 4) Brand positioning The success of these corporate programs provides an opportunity for additional brand positioning as a leader on sustainability issues. WBG’s sustainability efforts in its internal operations have attracted sustainable investors to WB bonds, helping to expand funding during the financial crises (See Box 1). Box 1: Green Bonds Raising World Bank’s corporate responsibility profile has contributed to ongoing efforts by IBRD to increase its funding base through new product offerings, such as green bonds. The green bonds mark the first World Bank debt product dedicated to a specific development purpose and highlights the increased demand for debt investment products that support low-carbon growth activities. The green bonds have reduced funding costs and have slightly lowered overall borrowing costs making them an attractive product for the World Bank. Other climate-themed bond offerings are World Bank CO2 “Cool” Bonds (5-year USD dominated notes tied to Certified Emission Reductions (CERs) generated by GHG-reducing projects in China and Malaysia) and World Bank Eco Notes (6-year World Bank notes with minimum coupon plus amount linked to Eco equity index).  Since launch, $1.5B has been raised through World Bank green bonds with savings that vary from bond to bond depending on size, currency, maturity and investor base reached  Separately, a total of $31.5 million has been raised in two “’Cool’ Bond” transactions in 2008 and $390 million in three transactions in Eco notes. A huge potential is foreseen for new green investment products that support low-carbon growth. These types of products attract more funding, from new and varied sources for World Bank bonds, with more potential for funding cost savings 5 2. Progress to date The WB Corporate Responsibility Program and the IFC Footprint Program work closely with the units that manage WBG’s internal operations (Facilities Manageme nt, IT Departments, Business Travel, Conference Services, etc.), and are actively reaching out to over 200 WBG country offices. Both programs are overseen by internal cross-unit oversight committees made up of senior staff to engage high-level input on corporate sustainability priorities. This structure has facilitated progress towards reducing the environmental impacts of WBG’s internal operations, which includes:  Established a WBG program for measuring, reporting and offsetting greenhouse gas emission from internal WBG’s day-to-day operations:  In 2006, the WBG announced —and became—carbon neutral for its Headquarters’ based internal business operations including all facilities operations, staff air travel, and owned vehicle use. In 2009, this commitment was reaffirmed by President Zoellick and expanded to include country offices.  In July 2008, WBG became the first multilateral development bank and first member of the UN family to have a corporate GHG emissions inventory management plan (IMP), and to have both this IMP and GHG inventory for WBG Washington, DC, offices third- party verified.  In 2009, WBG became the first multilateral development bank to report its GHG emissions to the Carbon Disclosure Project (CDP)—starting with WBG Washington DC operations.  Increased efficiencies in energy and water use, earning US Environmental Protection Agencies’ Energy Star rating and US Green Buildings Council’s Leadership in Energy and Environmental Design (LEED) certification for several new and existing facilities.  Diverted waste from landfills by establishing comprehensive recycling contracts, electronics disposal guidelines, and instituting composting capabilities in WB and IFC Buildings.  Integrated weighting tools and contract clauses for sustainability in the procurement of key goods and services.  Increased disclosure of WBG’s environmental impacts through leading industry reporting venues such as the Global Reporting Initiative and the Carbon Disclosure Project.  Increased outreach to educate staff on the environmental impacts of their day-to-day choices while at work. 6 3. Looking forward Recommendations To further integrate environmental sustainability within its internal operations, the WBG recognizes that more action is needed. The World Bank Corporate Responsibility and the IFC Footprint Programs have identified the following actions and are working with key WBG stakeholders to implement them.  Continue strengthening the WBG’s Corporate GHG Management Program to ensure best practice.  Establish a defined governance structure for integrating corporate sustainability objectives and targets into corporate business units/departments.  Formalize a WBG-level corporate sustainability vision statement to guide WBG’s day-to-day internal operations.  Establish a sustainability management system framework with metrics and accountability for managing progress in relevant WBG units.  Strengthen internal and external communication on WBG’s corporate sustainability objectives, programs.  Leverage opportunities and demand in WBG country offices and from clients to demonstrate corporate sustainability initiatives. Work Done to Inform Recommendations These recommendations seek to align current WBG programs with leading industry efforts on managing environmental impacts from internal operations. Recommendations were informed by third party reviews of WBG programs and input from internal and external stakeholders. a. Review of WBG’s Corporate Greenhouse Gas (GHG) Management Program WBG has made a commitment to reduce the climate change impacts of its daily corporate operations through a comprehensive program to measure, reduce, offset and report on its GHG emissions from WBG’s internal operations. The WBG has come a long way since it conducted its first GHG inventory for its Washington DC based internal operations in fiscal year 2005. Each year the WBG refines its inventory based on the most up-to-date best practices in GHG inventory management. In 2008, the inventory was expanded to collect data for all WBG global offices. That same year, the WBG became the first multilateral development bank and the first member of the UN family to have a corporate GHG emissions inventory management plan (IMP); it also had both the IMP and the GHG inventory for the Washington, DC offices third-party verified. In 2009, the WBG became the first multilateral development bank to report its GHG emissions to the Carbon Disclosure Project (CDP)—starting with WBG Washington, DC operations. CDP is the world’s largest database of corporate information on climate change. Recently, a global online data collection and management system was adopted to increase the transparency of the collection process, centralize data collection, and simplify feedback to WBG country office staff members. This system aims to eliminate errors and data gaps, especially when gathering data from the 200+ WBG offices. 7 To ensure the WBG’s corporate GHG management program remains ahead of industry practice, the following actions were conducted, identifying gaps and next steps:  Third-party review of the WBG’s Corporate GHG Inventory and Inventory Management Plan The Fiscal Year 2009 global inventory, covering over 200 IFC and WB offices, was reviewed against the WBG’s Inventory Management Plan by an independent third party organization. The inventory was found to be in compliance with the established IMP. Some recommendations were made for changes in methodology, none of which materially affected the inventory. Preliminary findings did shed light on some flaws in the calculations being used by the online data management system, including errors in conversion factors and reported units. Upon correction of identified errors, the independent third party re-evaluated the data to ensure all fixes were correctly implemented. A testing protocol was developed by the data management system vendor to ensure that further errors were caught before data entry by country offices. The review highlighted the need for constant vigilance required on the part of internal staff to catch such errors.  Development of an emissions reduction plan An emissions reduction plan (ERP) is an important tool to guide institutional efforts to reduce corporate climate change impacts. The ERP identifies opportunities and lays out a framework for the reduction of greenhouse gas emissions in WBG and to link the GHG footprint reduction commitment to the operational mandate of the organization. WBG developed the ERP in conjunction with the Sustainable UN (SUN) Initiative, which requested that all members of the UN family submit ERPs to be included in an aggregate report to the Cancun UNFCCC COP in December 2010. The WBG has already taken active steps to reduce its emissions through efforts such as increasing the energy efficiency of its facilities (examples are listed in Annex 1). The WBG’s emissions reduction plan is included in Annex 3.  Review of WBG’s Emissions Reduction Offset Guidelines Emissions reduction is the WBG’s first step in its emissions management. A zero emission organization, however, is not possible in the near term, given the nature of WBG’s mandated activities. Therefore, the WBG purchases renewable energy certificates (RECs), representing investment in new wind installations, to offset the emissions from electricity use (‚Scope 2‛ emissions). Other emissions (Scope 1 and Scope 3) are offset through the purchase of Verified Emission Reductions (VERs). Scope 1 and 3 emissions include direct emissions associated with on-site generators and air conditions, for example, and indirect emissions associated with air travel. VERs are typically purchased either directly from the creator of the emission reductions through Emission Reduction Purchase Agreements (ERPAs), through a broker, or through a market like the Chicago Climate Exchange (CCX). Joint WBG Guidelines/Criteria for Selection of Emission Reduction Offsets have been drafted for the WBG’s purchase of corporate offsets. Credits must come from WBG client countries, ensure ‘’additionality,’’ and provide environmental/social benefits above emissions reductions. A WBG Offset Guideline is attached in Annex 2. WBG is currently assessing long term contractual projects to promote stability for project providers as well as the Bank Group. The steps involved in such a purchase will be included in the Offset Guide. b. Third Party Review: Independent Benchmarking Study to identify strengths, gaps, and opportunities for improvement in WBG internal operations A 2010 WBG benchmarking study was commissioned jointly by WB and IFC to (1) assess WBG progress since the Price Waterhouse Coopers/GreenSeal audit in 2002, (2) identify where the WBG is a leader, is average, or a laggard in relation to its peers and other leading organizations 8 (3) learn from other organizations’ best practices and (4) buil d upon the current successes for adopting sustainability best-practices internally. Two key groups were consulted. Internal stakeholders were surveyed on major areas contributing to WBG’s environmental impact such as building management, travel, and procurement. Nine external organizations, composed of international financial institutions, non-governmental organizations, and the private sector were surveyed on major aspects of corporate sustainability (see chart below for list of sustainability ‚Indicators‛ used in the study). On a scale where ‚1st‛ was the highest ranked organization, this study ranked WBG 7 th of the 10 organizations in its overall environmental sustainability stance (see image). IFC and WB were ranked separately; with IFC gaining one point for their work on energy management and LEED certification (IFC’s HQ building was recently awarded LEED Platinum certification for Existing Buildings in Spring 2010. At the time of the survey, the C building was still in the process of gaining LEED Commercial Interiors Certification). Table 1: Benchmark results: Scoring - Each organization earned a score of 0 to 3 as follows: 3: awarded when the aspect was fully addressed. The company had a systematic approach to the aspect, and provided contextual background; quantitative data for multiple years (so trends could be determined); and goals if applicable to the aspect. 2: awarded when the aspect was partially addressed. The company had a systematic approach, but did not address all three of the following elements: contextual discussion, metrics, and goals.1: awarded when reporting on the aspect was very limited. 0: awarded when an aspect is not addressed. Table 2 provides an overview of the main challenges highlighted in the study, along with select recommendations for moving forward. 9 Table 2: Main challenges and recommendations of the benchmarking study Aspect Challenges Recommendations  Policies in place are general without  Create a governing corporate sustainability any basis for implementation or statement on managing environmental Institutional enforcement (e.g., procurement impacts of internal operations Commitment policies)  Improve visibility, communications from  There is a need for leadership Group leadership on commitment to sustainability commitment  Establish an environmental management system framework (EMS)  Need to set targets and engage the Governance and  Imbed sustainability targets in management organization to meet them. Accountability performance goals  Lack of staff/ resources  Establish a governance structure  Develop business air travel management program including policy, reduction targets ($ or miles), analysis of high impact routes, Business Air Travel prioritized programs to achieve targets including rail, economy class, tele-presence  Connect business travel to carbon offsets  Implement secure printing and eliminate personal printers IT initiatives  There is a gap in sustainability  Default double-sided printing initiatives/policies – A materiality  Roll-out power down initiative currently in assessment is needed to assure focus pilot on priority issues Commuting and Formalize telecommuting and flex-work Telecommuting program with targets and tracking  WB and IFC practices differ in some Energy areas (energy, waste, staff education)  Implement Green Office and Events Guidelines Water and  Harmonize waste management WBG-wide wastewater  Unify staff messaging around behavior Waste changes for sustainability Integrate sustainable procurement standards Procurement into WBG sustainability policy commitment Building standards Harmonize building standards WBG-wide GHG Management Continue leadership status Three of the benchmarking study recommendations were selected by the WBG because they establish a strong foundation for a long-term institutional commitment to environmental sustainability at the WBG. These are: 1) Establishment of an environmental management system framework (EMS); 2) Creation of a governing WBG corporate sustainability statement on managing environmental impacts of internal operations; 3) Increase internal and external communication on WBG’s corporate sustainability objectives  Environmental Management System (EMS) / Sustainability Management System (SMS) While the business need is strong to ensure the WBG is a ‘’best -practice’’ environmentally responsible organization, there is currently no formal strategy defined to guide this initiative. Investor rating agencies have noted (negatively) that a governing WBG corporate environmental sustainability policy and a management system framework for continuous 10 improvement of key metrics are Box 2: EMS and SMS missing. The lack of such a system was reinforced in the recent An EMS establishes a systematic way of identifying and managing an organization’s environmental impact, and an benchmarking study conducted. The SMS further encompasses the social and economic impacts. UN is also encouraging members of The system outlines the organizational structure, planning the UN family to adopt a system for and resources for developing, implementing and maintaining managing its sustainability footprint an environmental or sustainability policy and objectives. and is currently developing a template for use. Some of the key units that manage WBG’s internal business operations have management systems in place, but they have not been pulled together and identified as an EMS. A draft guide for pulling the systems together to reflect their EMS characteristics within each individual unit is being developed and will be piloted by GSD’s Printing and Graphics team in FY 2011. The inventory management and emissions reductions plans will be core components of the EMS systems. Although it is anticipated that this process will take several years, the end result will be a systems map of WBG processes and a body of sustainable management information on WBG units.  Governing Sustainability Statement A WBG sustainability statement to guide efforts on reducing the environmental impacts of WBG’s internal operations is an essential component of an EMS, as well as a supportive component of the process for obtaining Green Building certification (a WBG goal for several of its Washington, DC buildings and some country offices). In addition, adopting a sustainability statement will address a common criticism of sustainable investment rating agencies as well as the recommendation from the recent benchmarking study. IFC is developing a ‚Footprint Commitment Statement‛ for its corporate IFC Sustainability Policy, which will be finalized in FY11. The recommendation is to have a single WBG commitment statement.  Increased Visibility and Communications Aside from the financial and reputational benefits that WBG has to gain from a comprehensive approach to managing it internal operations, there are many other benefits including employee recruitment and retention and brand positioning. Thoughtful and consistent communications will allow the WBG to maximize the investments it makes to run its business day-to-day in a more sustainable manner. Strengthening communications will be critical in our efforts to further facilitate staff innovation and behavior change related to WBG’s sustainability goals and to communicate WBG’s efforts to external audiences. c. Rising demand in WBG country offices and from clients The WBG’s work in integrating environmental sustainability within its internal operations serves as an opportunity to demonstrate best practice for clients and partners. The WBG sustainability programs frequently respond to requests from clients and partners, providing information on tools, best practices, and lessons learned from internal efforts. External requests have come from: Banorte, Industrial Bank, Finansbank, Overseas Private Investment Corporation (OPIC), Organisation for Economic Co-operation and Development (OECD), AIDB, as well as to various UN agencies through the SUN initiative. There are increasing requests for support from WB country offices, as they see benefits from modeling low carbon and sustainable development behavior for their clients and partners. For 11 example, the WB Macedonia country office has showcased various carbon footprint reduction initiatives in their office—aiming to be a role model in support of the country’s drive for accession into the European Union (see Box 3). Box 3: WB Macedonia Country Office Macedonia country office activities are an excellent example of how the WBG’s footprint reduction obligations complement country priorities. Macedonia’s Country Partnership Strategy (CPS) for FY 11-14 details a path of green and inclusive growth that supports the country’s accession into the European Union. With an aim to be role a model in low carbon and sustainable development behavior, the Macedonia country office has showcased various carbon footprint reduction initiatives in their office. These include:  Early replacement and “downgrading” of office vehicle fleet (car fuel was consumption cut by 43% and CO2 emissions by 55%)  Replacement of windows and air-conditioners, and installation of roof insulation office building energy consumption cut by 30%)  Procurement of local and environmentally friendly products  Calculating, reducing and offsetting of the carbon footprint of large events  Stimulated similar activities at local embassies Through these initiatives, the Macedonia country office hopes to not only raise awareness about green growth and climate change, but also position the Bank as a thought leader and role model. Additional requests for assistance have come from other WBG offices in Eastern Europe and Central Asia, Latin America and the Caribbean, as well as a member government and development partner in the Middle East and North Africa region. IFC is working with the regions to launch regional footprint plans (see Box 4). The WB lags in the regional approach, but can build on IFC’s initiative, begi nning with shared offices. For each region, this will include:  Identifying Regional Champions to identify and coordinate country office Champions.  Creating a regional work plan that harmonizes with core operational goals, including timelines and responsibilities.  Achieving priority outcomes that resonate with the core operational goals in the countries and region, and that help raise basic awareness of environmental responsibility and reduction activities. Box 4: IFC Middle East and North Africa (CME) IFC’s Middle East and North Africa (CME) region launched a comprehensive regional strategy and work-plan to engage every office in the region to model corporate environmental responsibility. The strategy over the past three years has been implemented by all 11 CME Country Offices, and includes activities that reduce the environmental footprint of their office’s operations. In one example, CME banned individual plastic water bottles in all offices, showcasing responsible solid waste management behavior. Opportunities to showcase efforts to implement, and benefit from, corporate sustainability initiatives will be leveraged further. 12 Annex 1: Efficiencies gained from initiatives Initiative Efficiencies Gained Energy Savings from Facilities Management Summary: Throughout WBG Headquarters buildings, energy saving initiatives These initiatives have resulted in have been implemented (list of examples below). This has helped WBG energy consumption reduction of Headquarters buildings receive US EPA’s Energy Star certification for multiple 10% from 2006 to 2010 for WB’s years since the late 1990s for the F, I, and J buildings. More recently, our Headquarters campus-wide energy saving initiatives have been a key part of our efforts towards LEED energy use and 10% from 2008- certification for the F, I, J and MC buildings. The F building has received LEED 2010 for IFC’s Headquarters Platinum for Existing Buildings. The C building has already earned LEED energy use. Platinum certification for core and shell and is in the process of earning Commercial Interiors Certification (likely gold). The I and the J buildings are in the process of earning LEED certification for existing buildings (likely gold). [WB] Installation of USES power conditioning equipment Estimated 400,000 kWh/year [WB] Replacement of garage lighting in I-building with LED lamps Estimated 103,450 kWh/year [WB] Schedule lighting sweeps Estimated 100,000 kWh/year [WB] Replaced cooling tower in J building Estimated 575,000 kWh/year [WB] Replaced chillers in J Building with frictionless chillers [IFC] Reduced operations hours of office Estimated 510,000 kWh/year [IFC] Installed Variable Frequency Drives on motors (includes large and small Estimated 392,000 kWh/year cooling towers) [IFC] De-lamped 50% of open office area lighting on ten floors and turned off Estimated 525,000 kWh/year parking level drive lane lights on 3 levels of parking garage [IFC] Changed HVAC set points 1 degree in both heating and cooling seasons Estimated 302,000 kWh/year [IFC] CFL replacement of incandescent Estimated 293,000 kWh/year [IFC] Installed occupancy sensors - all offices (900+) Estimated 72,000 kWh/year Water Savings from Facilities Management Summary: Throughout WBG Headquarters buildings, water saving initiatives have been implemented (list of examples below). This has been an important part of our efforts towards LEED certification for the F, I, J and MC buildings. [WB] Replacement of flush cartridges in urinals from 1.0 gpf to 0.5 gpf Estimated 1.4 million gallons/year [WB] Replacement of water closets from 2.5 gpf to 1.6 gpf Estimated 9 million gallons/year [WB] Installed low-flow automatic light powered faucet devices in lavatories [WB] Cooling tower upgrade [IFC] Water-closet flush valve conversion Estimated 3,000,000 gallons/year [IFC] Installed urinal low-flow devises Estimated 131,250 gallons/year [IFC] Installed low-flow faucet devices in lavatories and pantries Estimated 823,625 gallons/year [IFC] Installed shower-head low-flow devices Estimated 151,875 gallons/year [IFC] Installed rain sensors devices for irrigation Estimated 8,000 gallons/year 13 Procurement Summary: Incorporating sustainability criteria into bid documents increases Sustainable procurement can be the amount of environmentally and socially responsible goods used at the introduced at no additional cost. World Bank Group. In all the examples below, potential and current suppliers were asked about their environmental policies, programs, These procurements can have certifications, and senior management support, in addition to specific potential cost avoidance, including requirements. energy efficiency benefits from sustainable electronics purchasing. WBG Food & WBG Catering Contract: Language was included to ensure the Food Services provider will “strive in all ways to reduce the environmental footprint from food service operations including packaging, food preparation, plating/delivery, and end use waste management. The Food Services provider will consider water, energy, resource use, and waste as part of the comprehensive approach to environmental management”. WBG Paper Options for In-House Printing Services: The General Services The paper WBG now procures is the Division’s Printing, Graphics and Map Design Unit (GSDPG) has worked with most environmentally and socially the Bank's Environmental Department to develop a framework to evaluate responsible choice AND the least all paper vendor proposals on a combination of advanced environmental cost option. characteristics and price. The new evaluation process includes looking at recycled content of paper, fiber source and certifications, transport distance, chemicals used in processing, environmental certifications, and more. Sustainability criteria was weighted at 70% of the total bid score, and price at only 30%. WBG ED5 Computers: Contracts were scored based on green policies as they Meeting EPEAT Silver specifications related to a) packaging b) energy conservation of hardware c) take back require that monitors must meet program and disposal of hardware. The WBG monitor procurement minimum environmental specified that displays must meet EPEAT Silver specifications. requirements including meeting Energy Star criteria, having sleep and stand-by modes enabled, avoiding the use of toxic materials, and being designed for end-of-life reuse or recycling. WBG Modular Carpet tiles: Companies are required to provide information as part of their proposal submission for evaluation on their commitment on greening (vision statement, policy, audit), recycled content of face fiber and backing, dying process, VOC emission, reusability, recyclability, collection and disposal (reclaiming) of used carpet tiles, Green label program and ratings. WBG Term Construction Services Contract: A Request for Proposal to rebid the current General Contractor’s term contract with the Bank Group (same contractor used by IFC) increases the emphasis on responsible environmental purchasing, waste management, and recycling as noted in above procurement principles. WBG Closed-loop carpet recycling system: WBG is buying carpet made of 30% recycled content that are 100% recyclable. WBG Cleaning Products: The majority of WBG’s cleaning products meet Green Seal or EcoLogo’s certification standards (reputable environmental certification programs in North America). WB Furniture Procurement: In 2009, the WB furniture procurement ensured All system furniture now must be that all furniture procured met criteria outlined in LEED Commercial Interiors made of sustainable wood including guidelines those earning FSC Certification, Greenguard indoor air quality certification and avoiding the use of chemicals such as formaldehydes. 14 Annex 2: WBG Guidelines for Emission Reduction Offsets  Guidelines will be reviewed annually to ensure alignment with WBG’s business priorities and emission reduction offset market trends.  All offsets should be posted on the World Bank and IFC websites World Bank Group (WBG) Guidelines/Criteria for Selection of Emission Reduction Offsets  Renewable energy (e.g. wind, hydro, biomass) Project Types  Energy efficiency (e.g. fuel switching, single-to-combine cycle, etc.)  Waste management (e.g. landfills, wastewater, etc)  Forestry and agriculture (land-based carbon sequestration) Project Locations Credits must come from WBG client countries. No priority order  Certified Emissions Reductions (CERs), Emissions Reduction Units (ERUs) – with additional environmental and social benefits  Pre-registration vintages under the Clean Development Mechanism (CDM) Desirable Offset  Gold Standard Standards3  Carbon Financial Instrument (CFI) No priority  Voluntary Carbon Standard (VCS) order  Community Climate Biodiversity Standard (CCBA) [*All projects are subject to due diligence by ENVCF and/or CGFCU, regardless of standards met.]  Direct contract with private sector project providers. WB (IBRD) may also enter contract agreements with public sector projects. Sourcing  Emission reduction offset exchanges, such as the Chicago Climate Exchange (CCX) No priority  Emission reduction offset brokers order *Joint purchases of IFC and WB are desirable, but WB’s and IFC’s purchase decisions will not be constrained by each other’s program decisions. Unless the offset standard includes a registry to ensure proper retirement and avoid multiple sales, projects shall be required to (i) number or mark each offset with appropriate unique Offset identification codes and, (ii) show evidence of the registration of the offsets in WBG’s na me on Retirement 4 their website. Requirements The WBG will post offset purchase information on its external websites (IBRD and IFC websites).  Vintage: Credits should be generated not earlier than three years prior to the calendar year in which they are purchased (example: if purchasing in 2010, vintage can be no earlier Other Project than 2007). Features  Additionality of the credits should be clearly documented.  Sufficient credits have already been generated, verified, and available No priority  Efficient purchase options with minimal transaction costs order  Associated benefits above emissions reductions  Community benefits desirable for all project types  Biodiversity benefits desirable for land-based projects 3 See overview of existing market standards 4 Intended to avoid double sales 15 Overview of proposed emission reduction credit market standards Standard Name & Project Criteria Registry Sponsors CERs, ERUs CDM/ JI CDM CDM Pre-registration CDM -- Gold Standard CDM methodology plus satisfactory answers to the following 2 Gold Standard questions: Database Sponsored by  Does the project use renewable energy or energy efficiency DEFRA5, REEP6 and technologies? WWF  Does the project promote sustainable development? Carbon Financial Distinctive criteria and approved verifiers for each of the following CCX Instrument (CFI) – project types: CCX  Agricultural Methane  Landfill Methane  Coal Mine Methane  Forestry and Rangelands  Renewable Energy and Energy Efficiency Voluntary Carbon CDM or CA Climate Action methodology plus: VCS – under Standard (VCS)  Recognition of emission reductions generated as early as construction January 1st, 2000 Sponsored by IETA7,  Demonstration that project implementation has no negative Climate Group and impact on sustainable development in the local community. the WEF8 See pages 10-20 of the VCS’s Protocol & Criteria for detailed information Community Climate  Land-based projects that simultaneously address climate CCBA Biodiversity Standard change, support local communities, and conserve biodiversity (CCBA)  Promoting innovation in project design.  Audited under the Climate, Community & Biodiversity Standards 5 British Department for Environment, Food and Rural Affairs 6 Renewable Energy and Energy Efficiency Partnership 7 International Emissions Trading Association 8 World Economic Forum 16 Annex 3: WBG Emission Reduction Plan Drafted September 15th, 2010 1. Statement from the Head of Organization The World Bank Group*, one of the world’s largest development institutions, is a major source of financial and technical assistance to developing countries around the world. Our mission is to ‚fight poverty with passion and professionalism for lasting results *and+ to help people help themselves and their environment by providing resources, sharing knowledge, building capacity, and forging partnerships in the public and private sectors.‛ ( Source: www.worldbank.org) We believe global environmental challenges facing our world today, such as climate change, threaten to derail or roll back development progress for many countries. Reconciling the double challenge of mitigating and adapting to these environmental threats like climate change, while supporting the growth priorities of developing nations, is a major test for the international community and should open new economic opportunities for developing countries. “The scale and scope of the World Bank Group’s support to our country clients on climate change issues has grown rapidly, as has our engagement in the international dialogue.” - Robert Zoellick, President, WBG. In a time when environmental sustainability - especially climate change - is being actively integrated into WBG’s lending portfolio, policy advice and technical assistance, improving the World Bank Group’s (WBG) own corporate environmental ‚footprint‛ is essential for WBG’s reputation and credibility on these issues. In addition, reducing our corporate environmental impacts is in line with the WBG’s overall mission on reducing poverty, as environmental degradation impacts the world’s poor disproportionately. *Note: The World Bank Group is a development cooperative owned by 187 countries and made up of five institutions: The International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID). Each institution specializes in a different aspect of development, but they all have the same goal: a world free of poverty. For more information, visit www.worldbank.org 2. Introduction/Background The WBG has focused on reducing the environmental impacts of its corporate operations 9 and improving environmental practices since 2002, when the WBG President James D. Wolfensohn announced WBG’s commitment to Corporate Social Responsibility (CSR). That same year, external audits were conducted by Price Waterhouse Cooper and Green Seal. Their recommendations to establish a defined program to manage and reduce the environmental impacts from WBG’s corporate operations led to the establishment of the ‚WB Corporate Responsibility Program‛ and, three years later, the ‚Footprint Program‛ at IFC. Since 2005, the WB Corporate Responsibility Program and the IFC Footprint Program work closely with the units that manage WBG’s internal operations (Facilities Management, IT 9 ‘Internal Operations’ encompass facilities management, procurement, food services, and all other systems and processes that support the operations of the WBG as it conducts its business day-to-day. 17 departments, Business Travel, Conference Services, etc.), and are actively reaching out to over 200 WBG country offices. Both programs are overseen by internal cross-unit oversight committees made up of senior staff to engage high-level input on corporate sustainability priorities. Laudable progress has been made on:  Mitigating WBG’s corporate contribution to climate change  Increasing energy efficiency in our facilities  Improving sustainable procurement practices  Increasing the transparent, public disclosure of WBG’s environmental impacts using leadin g industry reporting standards While this structure has facilitated progress towards reducing the environmental impacts of WBG’s internal business operations, more work needs to be done. To strengthen the WBG corporate sustainability agenda, the two Programs have jointly undertaken or will be conducting several studies to identify priority steps:  An independent benchmarking study.  A third party verification of the WBG’s corporate GHG inventory and inventory management plan.  An emissions reduction plan.  A road map for a WBG Environmental Management System /Sustainability Management System (EMS/SMS).  A commitment statement for integrating sustainability in WBG’s internal business operations. Focusing on sustainability promotes an innovative environment where staff can identify new ways to make our offices and business processes more efficient and think creatively about reducing their footprint. These initiatives increase efficiencies, reduce costs and waste, and enhance credibility among our owners, investors, and clients. Details on the World Bank In FY 09, 36% of the World Bank’s full -time staff force (4,085 staff members) worked in 128 country offices in 120 cities in 112 countries. The other 64% of the staff (11,236 staff members) worked in the World Bank’s headquarters in Washington, DC and the surrounding area. The World Bank’s Corporate Responsibility program has three main areas of focus:  In partnership with champions around the World Bank Group (WBG), the World Bank Corporate Responsibility (CR) team identifies opportunities and supports efforts to reduce the WBG’s environmental footprint and promote inter-unit collaboration on sustainability initiatives. This includes activities such as coordinating the WBG greenhouse gas emissions reduction program, promoting efficiencies in water, waste, energy and sustainable procurement, educating staff and on environmental issues, and supporting new products for clients.  The program promotes greater transparency on the World Bank’s environmental and social performance at both the operational and corporate levels through forums such as the Carbon 18 Disclosure Project, the Sustainable UN Initiative, investor-rating agencies and investor forums, a web-based sustainability report, and a report compliant with the Global Reporting Indicators.  The program supports World Bank Treasury in its strategic effort to develop innovative products and services and to broaden its investor base by reaching out to Socially Responsible Investors (SRIs) Details on IFC In FY09, 46% of IFC’s full -time staff (1,575 staff members) was in headquarters office in Washington, D.C., encompassing 1,138,000 gross square feet and over 2,560 workstations to accommodate staff, consultants, and contractors. The other 54% of IFC’s full -time staff (1,872 staff members) was located in 101 offices in 102 cities in 86 countries, including 41 of the poorest countries. IFC’s public ‚Footprint Commitment‛ is to make sustainability an integral part of its day -to-day work in IFC offices around the world, and to continually improve the environmental performance of IFC’s internal operations. This commitment is an important part of IFC’s vision, its corporate response to climate change, and its alignment of corporate business operations with what the WBG asks of our clients. The commitment includes pursuing best practices to address environmental and social impacts and to ensure carbon neutrality of its global internal business operations, raising staff awareness of their role in fulfilling the Footprint Commitment, and reporting internally and externally on IFC's environmental and social ‚footprint‛ from internal operations. 3. A brief description of environmental governance in the organisation The World Bank Group has two senior level management advisory committees (one for IBRD and one for IFC) made up of vice president- and director-level staff who oversee the WBG’s sustainability commitments for internal operations, including the carbon-neutral commitment. The committees approve program priorities and objectives and promote high-level involvement Footprint and Corporate Responsibility programs at the WBG. The World Bank Corporate Responsibility Program and the IFC Footprint Program are responsible for the day-to-day management of the sustainability commitment for internal operations. The two programs are made up of technical experts who use their knowledge to help the WBG meet the priorities set by the senior-level management committees. Each group works closely with champions in units responsible for key sustainability themes, including facilities management, travel, food and conference services, procurement, information technology, commuter service, corporate real estate and others. Along with champions in each unit, the two programs identify sustainability goals for each target area and work towards achieving these targets. These two Programs are also responsible for the greenhouse gas inventory of the WBG. They have developed the Inventory Management Plan (IMP), a process document that is designed to provide transparency and step-by-step instructions on how the WBG performs their GHG inventory. It details the steps taken to collect emissions-related activity data, how emissions inventories are calculated, and the data quality steps taken to assure our data. In July 2008 WBG became the first multilateral development bank and first member of the UN family to have a corporate GHG emissions inventory management plan (IMP), and to have both this IMP and 19 GHG inventory for WBG Washington, DC, offices third-party verified. The WBG utilizes a web- based data management system to track and measure GHG inventory related data. This system has been evaluated by two separate reviews and the World Bank CR team, which leads this work in the WBG, is in the process of updating the system for the FY 2010 data collection. The World Bank CR team is also responsible for responding annually to the Global Reporting Initiatives index, and both teams work on reporting our GHG inventory to the Carbon Disclosure Project, the Climate Neutral UN initiatives and other outlets. Staff at each organization can play a voluntary role in environmental governance. The IFC’s well - established Footprint Champion network utilizes staff representatives from nearly every unit and country office at the IFC to be role models for sustainable behaviour, to communicate Footprint events and to provide input the IFC footprint program’s goals. At t he World Bank, the nascent Green Ambassadors program has met to learn about corporate responsibility at the World Bank, to help spread the word about the CR program and have identified areas where actions (such as placement of additional recycle bins) were needed throughout the Bank campus. Future plans for improving environmental governance To further align WBG’s public emphasis on sustainability in its core business lines with how it runs its business and to help WBG become a leader on corporate social sustainability, the WBG recognizes that more action is needed. The World Bank Corporate Responsibility and the IFC Footprint Programs will be working with WBG management throughout the organization to promote the following goals:  Institutionalizing a formal governance structure for managing corporate sustainability objectives that ensures accountability and compliance.  Detailing a WBG-level corporate sustainability vision and strategy to guide operational decision-making in an increasingly decentralized institution.  Integrating sustainability objectives throughout departments that manage aspects of WBG’s internal operations to ensure awareness and innovation on all levels. 4. Overview of current emissions (based on the 2008 inventory) FY 2008 inventory: Scope 1 Stationary Combustion 5,490 metric tons CO2-e Mobile Combustion 2,614 metric tons CO2-e Refrigerants 1,342 metric tons CO2-e Scope 2 Electricity Consumption 72,937 metric tons CO2-e Scope 3 Business Travel 107,585 metric tons CO2-e The WBG has chosen to set its organizational boundaries for the GHG inventory according to the operational control approach. Consistent with this approach the WBG accounts for GHG emissions from its locations for which it has direct control over operations, and where it can influence decisions that impact GHG emissions. This includes all owned and leased 20 facilities/vehicles operated by WBG. A portion of leased facilities operate under full-service gross leases, where the building owner/manager pays the utilities directly and WBG does not have access to actual energy consumption information. WBG includes these facilities in its definition of operational control and estimates the energy consumption as described in the Data Management section below. World Bank Group FY 2008 GHG Emissions 189,968 metric tons CO2-e Mobile Combustion Refrigerants Stationary 1% Combustion 1% 3% Electricity 38% Business Travel 57% Forecast of emissions based on planned activities As our client needs increase, our business travel emissions may gradually increase. Air travel is an important part of the way the WBG does business, and we must continue to address the needs of the increasing number of poor in the world. Nevertheless, institutional budgetary incentives have been established to encourage a reduction in travel. Recently introduced is the policy asking units to reduce their business travel spend between 5% and 15%. Units directly serving our developing country clients may reduce less, while units serving administrative functions should reduce more. Additional policies include requiring train travel for shorter distances (i.e. within Europe or from DC to NYC), and economy class travel for flights under 8 hours. The World Bank group is dedicated to reducing the emissions of our other day-to-day operations, and significant investments have already been made to reduce emissions in our buildings and vehicle fleets. 5. Emission reduction targets (%) Because IFC and WB operate in different facilities with different emissions reduction potentials, separate reduction target goals have been set for the two agencies within the World Bank Group. Prior to the goal-setting, the building efficiencies were already quite high, as a result of a number of years of efficiency improvements. a. IFC In FY08, IFC made a commitment to reduce electricity use per workstation at IFC headquarters building in Washington, D.C. by 10 percent by FY13. In FY10, this reduction target was achieved, reducing electricity use per workstation to 6,394 kilowatt hours. IFC will be readjusting this target in FY11 to encourage even more energy efficient operations. 21 b. WB The World Bank has committed to reducing Scope 1 and 2 emissions from our day-to-day operations in Washington, DC by 7% from a 2006 baseline by 2011. Currently, the WB is in on target to more than meet this commitment through the combined use of building energy efficiency upgrades, better facility management and emissions offsets including renewable energy certificates. 6. Organisation’s approach to reducing emissions Aligned with the WBG mission of sustainable development, which includes a commitment to increase lending for energy efficiency and alternative energy, and reducing the GHG emissions associated with our daily operations, the World Bank Group is investing in energy efficiency initiatives in our facilities. While our efforts will be global, actions aimed at our headquarters buildings in Washington, DC will have the biggest impact considering they are the largest WBG facilities and host more than half of the World Bank Group staff. Our building engineers go above and beyond each day to ensure our facilities are operated as efficiently as possible. This includes maintaining equipment and operating our buildings efficiently by managing the HVAC systems, controlling lighting, and incorporating innovative technologies and practices. Below is a list of our most recent initiatives upon which we will build to achieve further emissions reductions in our offices. HVAC:  The use of technologies such as free cooling and the introduction of fresh air to minimize chiller use in cooler months.  Replacing old chillers with more energy- and water-efficient models.  Installing variable speed motors to control air flow efficiently.  Using plate and frame heat exchangers to decrease the need for heating.  Utilizing variable speed pumps to efficiently operate chillers.  Installing more efficient air-filters to increase indoor air quality as well as increase the efficiency of HVAC systems.  Replacing old fan-coil units with more efficient models.  Reducing HVAC operating hours.  Change HVAC set points in the cooling and heating seasons (by minimum of 1 degree) Lighting:  Putting building lighting and HVAC on timers to turn off the lights and ventilation system when the buildings aren't occupied.  Turning off non-essential lights on extremely hot days to help with load curtailment.  Installing the most modern and efficient lighting possible - the latest upgrade increased the efficiency of the lamps 30-60%. 22  Removing excess lighting in open office areas and in parking garage.  Installing thousands of occupancy sensors to turn off lights when rooms are not occupied in Washington, DC, and in some select country offices.  We have installed a new green roof on one of our Washington, DC, buildings to divert rainwater, mitigate the urban heat island effects of the building, and improve energy efficiency by requiring less cooling.  Refitting bathrooms with light-powered water-saving automatic faucets.  Piloting an open-space plan that will compress our workspaces, while implementing day- lighting technologies. .  Instituting sustainable procurement guidelines--our most recent computer procurement will save about 2.5 million kWh of electricity per year. Travel:  Requiring train travel for trips between DC and NYC and within Europe.  Requiring economy-class bookings for flights less than 8 hours.  Utilizing video conferences where appropriate – in FY 2010 nearly 25,000 video conferences were used by the WBG, an increase from 19,000 in FY 2008.  Instituting budgetary incentives to cut travel spend between 5-15% . 6.1 Top five actions to reduce emissions See table at the end of this Annex. 7. Measures to reduce other impacts The World Bank Group has an active program to measure and reduce the impact related to our water consumption, waste production and staff behaviour. Staff within respective general services department units champion initiatives to reduce the unit’s impact on the environment, working in partnership with the WB Corporate Responsibility and IFC Footprint Programs. Areas we focus on include reducing the waste produced from our food services, encouraging the increased use of alternative commutes by our staff, increasing the landfill diversion rate in our facilities, procuring environmentally and socially preferable products, and using healthy and environmentally sound products to clean and maintain our buildings. A few specific examples are detailed below: Waste: WBG promotes active recycling by staff in the D.C. office. Every conference room, kitchen pantry, and the café and cafeteria has recycling bins, making it as convenient as possible to recycle. In DC, WBG staff is now able to recycle plastics from types 1 through 6, in addition to glass, aluminum cans, and paper. Composting programs have also been initiated in several of our headquarters building to reduce the amount of trash going to the landfill (programs include compostable cafeteria disposables and food waste). The WBG also provides an area for staff to recycle ‚technotrash,‛ which includes small electronics, batteries, computer components and CDs/DVDs. Reducing the waste stream is an important focus. For example, a policy is currently under 23 discussion to eliminate the use of bottled water (in lieu of pitchers) at all internal meetings. In addition, the Footprint and Corporate Responsibility Programs have distributed hundreds of reusable water bottles to staff. Water: WBG has been reducing water consumption by hundreds of thousands of gallons per year in its headquarters operations. Some of the more successful initiatives include reducing urinal flow, lavatory faucets flow, shower head-flow, converting to more efficient water closet flush valves, and replacing landscaping with native adaptive species and installing rain sensors on the irrigation system. Commuting: The World Bank Group offers all regular staff member who qualify a transit incentive of up to $40 a month for public transportation. Its Commuter Services Office in D.C. has a partnership with a car-sharing service, Zipcar, to offer promotions and discounts, and is a member of NuRide, an organization that works to link drivers and passengers to reduce the total miles driven in the D.C. area. All World Bank Group offices also have biking facilities, and the World Bank Group was recently awarded a Bronze award by the League of American Bicyclists as a Bike Friendly Business. Paper Use: Paper is one of the most significant waste streams for the D.C. office. Paper use per person has decreased not only because of technology (duplex printing is the default for all printers on the D.C. network and all computers in the D.C. office have an easy PDF function) but also because of behavior change. In addition, the World Bank’s General Services Division’s Printing, Graphics and Map Design Unit (GSDPG) has worked with the Corporate Responsibility Program to develop a framework to evaluate all paper-vendor proposals on a combination of advanced environmental characteristics and price. As a result, GSDPG provides paper to all of the WBG in Washington, DC that is 100% post-consumer recycled content, is chlorine-free, and contains no endangered, ancient, or old-growth forest content for copy centers, unit-owned printers, walk-up copiers, and fax machines. The internal World Bank Group print shop also uses only soy-based inks, digital short-run, and on-demand printing to reduce print runs, and Energy Star-certified copy machines with duplexing/double-sided capability. In the cafeteria, paper napkins are made from 100 % recycled and bleach-free paper. Food Service: The World Bank Group’s food service provider, Restaurant Associates, was chosen partly because of their environmentally preferable products and services. This includes ‚greener‛ disposables like potato-based utensils, post-consumer paper containers, and post-consumer fiber cups; fair trade, organic coffee; trans-fat-free oils; rBGH-free dairy items; seafood purchases based on the Monterey Bay Aquarium Sustainable Seafood Watchlist; cagefree eggs; and organic items, where available. Surplus food is donated to D.C. Central Kitchen. WBG Projects: Expanding our climate protection into our lending portfolio is by far the largest step that the WBG could take in reducing our effects on climate change. WBG has set aggressive targets for increasing its lending for renewable energy and energy efficiency lending. To help countries on their energy agenda, in FY09, WBG’s total energy financing rose to more than US$8.2 billion. In 2010, WBG’s financing commitments to new renewable energy projects increased to $1.5 billion, more than triple the amount committed in 2008. Energy efficiency lending increased 48 percent during the same period. In 2010, the Bank Group commitments on renewable energy, energy efficiency, transmission and distribution, and energy sector reform accounted for more than 60 percent of total energy financing. The figures confirm the institution is on track to meet its commitment to increase support for new renewable energy and energy efficiency by nearly $8.8 billion over 2008-2012. 24 Our climate work spans more than just energy. Climate vulnerability and risk management increasingly is part of our dialogue and work with developing countries. Key sectors affected by climate change include health, water supply and sanitation, energy, transport, industry, mining, construction, trade, tourism, agriculture, forestry, fisheries, environmental protection, and disaster management. WBG has several projects underway to strengthen the knowledge base for climate change and to translate such insights into informed decision making. Climate change adaptation considerations are being integrated into Country Assistance Strategies. A new screening tool that gives us a simple way of assessing development projects for potential sensitivities to climate change and further work is being done on sector-specific tools and guidance. We are also piloting innovative climate risk insurance. The Global Facility for Disaster Risk Reduction and Recovery, which helps countries integrate disaster planning into their development strategies, is including long-term climate risk with the programs. WBG is taking action on key issues:  IFC, MIGA, and all World Bank regions have developed climate change strategies or/and business plans.  Over 60 percent of all new Country Assistance or Country Partnership Strategies in fiscal year 2009 substantively addressed climate-related issues.  A growing range of activities and instruments are being developed to support climate resilient development and adaptation.  Energy efficiency and renewable energy financing continues to grow.  Significant progress is being made with new and innovative financing such as the Climate Investment Funds, the Forest Carbon Partnership Facility, climate risk management products, and ‚Green Bonds‛.  Knowledge dissemination is being supported for key emerging technologies, such as Concentrated Solar Power and Smart Grids.  Low carbon country case studies designed to explore options for lower carbon development have been developed or are underway.  Data tracking systems are being developed-- IFC requires an estimate of GHG emissions associated with its real sector project investments, and the World Bank is currently is piloting a data tracking system for projects in its lending portfolio with climate change co-benefits. Additionally, the World Bank utilizes safeguards, and the IFC performance standards, to ensure environmental and social protection in areas where it does business. The World Bank's environmental and social safeguard policies are a cornerstone of its support to sustainable poverty reduction. The objective of these policies is to prevent and mitigate undue harm to people and their environment in the development process. These policies provide guidelines for bank and borrower staffs in the identification, preparation, and implementation of programs and projects. IFC's Performance Standards define clients' roles and responsibilities for managing their projects and the requirements for receiving and retaining IFC support. The standards include requirements to disclose information. 8. Resourcing The IFC Footprint and World Bank Corporate Responsibility teams facilitate the sustainability commitment of the World Bank Group and monitor and track its progress. These teams provide technical information and research support to a dedicated group of champions throughout the 25 World Bank Group who implement emission reduction activities. Budget for these activities flows primarily through the Environment Department, the General Services Department, and IFC Facilities Management and Administration. The Environment Department and IFC Facilities management each resource one staff member to provide back-up research support and to monitor and report on environmental metrics, with building engineers and managers and project officers from across the WBG contributing. 9. Communications Reporting: The World Bank Group has and will continue to report publicly our environmental performance on our external websites. In 2009, WBG became the first multilateral development bank to report its GHG emissions to the Carbon Disclosure Project (CDP) —starting with WBG Washington DC operations. WBG President Zoellick will be the front commentator of CDP’s 201 0 flagship report. Staff Outreach: Active staff engagement is necessary for fulfilling WBG’s internal sustainability commitment. Consequently, the WB Corporate Responsibility and IFC Footprint Programs count staff engagement as a key component of the Programs’ strategies. A central component of our engagement strategy is IFC’s global community of ‚Footprint Champions‛ and the WB’s ‚Green Ambassadors‛ network at its headquarters building. These staff members help to disseminate information to colleagues, propose and implement changes, share ideas, achievements, questions, and solutions, and demonstrate adoption of best practices at the individual level. Both Programs also have internal informative websites to provide tips and tools to staff members on how they can contribute to fulfilling WBG’s sustainability commitment for its internal operations . IFC’s Footprint Program leads with communications and outreach to raise staff awareness of sustainability issues, including events, seminars, film screenings, and ‚hands-on‛ workshops. In addition, every two months, the Program sends out a newsletter to all staff. Each newsletter has a specific theme (such as reducing the use of plastics or water conservation) and provides tips for simple changes staff can make at home and at work and links to additional IFC and non-IFC information. In 2009, the Footprint Program launched the ‚10 -Minute Tune Up,‛ with the goal of sharing simple ways IFC staff could use resources more efficiently while at work —in a quick 10 minutes. In the program’s first year, over 800 staff (almost 30% of HQ staff) were ‚Tuned Up,‛ including many senior-level staff. The Footprint Program also runs the annual Footprint Challenge, a competition where IFC staff are challenged to come up with innovative ideas on how to integrate environmental and social sustainability into IFC’s day-to-day operations. The award categories are changed annually, and a panel of judges selects the winners. Winners receive monetary awards to be used to implement their idea, as well as assistance from the Footprint Program staff. In addition, the Footprint Program has created a suite of materials (signs/posters/PPTs) to communicate various ‘footprint’ messages to staff. A shared staff person is being hired by the WB Corporate Responsibility Program and the IFC Footprint Program to standardize and share these outreach initiatives across the WBG. 26 WBG Top Five Actions to Reduce Emissions Action Reduction Potential Cost implications Cost savings Responsibility Status Replace chillers in The current chillers in the MC were installed when the The cost to replace even 3 Operating costs from new GSD Budgeting Main Complex building was constructed and are near the end of of the chillers will be chillers are expected to process should building (WB) their life-cycle. A plan to replace 3 of the current extremely high – not only be relatively high – but commence in chillers before they reach the end of their useful life, are replacement chillers not on the same the next 2 fiscal combined with using 2 existing chillers more expensive, but the labor magnitude as the years, efficiently, is being drafted. needed to dismantle the replacement costs. replacement existing chillers and Payback periods for within the next transport them out of the chillers usually are in the 5 fiscal years building will be high. range of 20 years. Optimization of In conjunction with the switch-out of the chillers in Moderately high – exact Moderately high GSD Linked to the the Main the MC, the cooling plant will be optimized with activities are not yet budget Complex Cooling variable flow chilled and condenser water, the known. schedule for Plant (WB) building will be rebalanced and recommissioned and the minor modifications will be made to the piping layout replacement of as needed. Reduction potential will be high, as this chillers in the will increase the efficiency of the entire HVAC system MC. in the MC. Implementation A consultant will be brought in to make Moderately high – exact Moderately high GSD and IFC Facilities To be adopted of lighting retrofit recommendations on lighting retrofit and lighting activities are not yet – LED lighting control replacements in all buildings. Technologies to known. (WBG) be considered include occupancy and dimming controls, LED lights and daylight harvesting. Exact reduction potential is not yet known. Maintaining In line with President Zoellick’s commitment to Moderately high The purchase of green-e GSD, WB CR and IFC Ongoing global carbon- carbon neutrality for our business operations, the certified RECs is a low- Footprint neutrality for our World Bank Group will continue to purchase cost method to reduce day-to-day Renewable Energy Certificates (RECs) to offset our our net carbon emission operations (WBG) electricity use and high-quality carbon credits to and support the offset our emissions from travel and our facilities. generation of renewable electricity. Co-location of IFC According to WBG internal policy enacted in March of Low – new offices are Moderate – The IBRD Director-GSD and Ongoing and WB offices 2009, IFC and IBRD offices shall co-locate wherever constructed or leased on administrative and travel the IFC Vice President-CHR (WBG) possible. Housing both organizations under one roof an as needed basis, and costs will decrease due to are responsible for issuing fosters collaboration and sends a desired message of no additional costs except this policy the policy, monitoring “One World Bank Group” to member countries, and possible additional compliance with its facilitates administrative efficiency and cost capacity needs will be requirements, interpreting effectiveness of country operations incurred through the it, revising it, and execution of this policy. developing and implementing procedures and standards.