2019 Sustainability Review LETTER FROM THE MANAGING DIRECTORS W e are pleased to present the streamlined • We have continued to increase the share of our corporate World Bank Sustainability Review 2019 procurement going to women-owned or led businesses in and the supplemental indicators in the line with our goal to reach 7 percent by 2023. accompanying Global Reporting Initiative (GRI) • We reinvigorated our internal governance body to Index, summarizing our sustainability efforts over the past deepen sustainability efforts and to have the ability to act fiscal year. more quickly. We are committed to operating in a sustainable manner, with • After surpassing our last greenhouse gas reduction our finances, our people, and our places. Living our core target, we have committed to reducing direct and indirect values of impact, integrity, respect, teamwork and innovation carbon emissions from our global facilities by 28 percent demands nothing less. Our shareholders and investors by 2026, using 2016 as a baseline. who have entrusted us with their resources demand the • In all World Bank Group buildings in Washington, a same. On behalf of the entire senior management team centralized waste collection system was introduced, of the World Bank Group, we are proud to share our including composting, that eliminated bins from individual accomplishments in FY19. offices. Plastic bottles were also phased out. • IDA's entrance in the capital markets in 2018, with an We encourage you to read this document in conjunction inaugural $1.5 billion benchmark bond, has enabled the with the GRI index, the financial and operational specifics institution to significantly scale up its support toward presented in the World Bank Annual Report 2019, and the achieving the Sustainable Development Goals, while Financial Report. Your comments and reactions are welcome offering investors an efficient way to contribute to global and should be directed to: crinfo@worldbank.org. development. Environmental degradation disproportionately affects the • The annual Staff Engagement Survey shows that we poor and managing our corporate environmental and social have a very engaged workforce with 83 percent of impacts is fully aligned with our mission to reduce extreme staff participating in the survey and 92 percent of staff poverty. We will continue to report on our journey as we expressing pride in working for the World Bank Group. safeguard the wellbeing of staff and manage the impact of our work. Shaolin Yang Axel van Trotsenburg Managing Director and WBG Chief Administrative Officer Managing Director, Operations Co-chair of Corporate Responsibility Oversight Committee  Co-chair of Corporate Responsibility Oversight Committee STRATEGIC PATH The World Bank Group Strategy, released in 2013, discusses the significant areas in which the World Bank makes economic, social, and environmental impacts, as well as the associated challenges and opportunities along the path toward ending poverty and promoting shared prosperity in a sustainable manner. In fiscal year 2017, the Forward Look, a collaboration between management and the Board, helped shape a common view among shareholders on how the World Bank Group can reach the institution’s goals and support the 2030 development agenda. » For more information on the World Bank Group Strategy, visit: worldbank.org/about The impacts highlighted in this Sustainability Review are related to the Bank’s “corporate” impacts with details in the 2019 GRI Index. Governance adverse impacts. This is done through policies that identify, avoid, and minimize harm to people and the environment. These policies require the borrowing governments to address certain Our core values articulate what we care about most. They guide environmental and social risks in order to receive World Bank how we work with each other, with our clients, and our partners. support for investment projects. This includes, among other things, And most importantly, they help us become a better institution community consultations and public disclosure of key documents. delivering on the goals of ending extreme poverty and boosting The World Bank currently applies two sets of environmental and shared prosperity. Our values include: social policies: the Safeguard Policies, for projects with concept notes before October 1, 2018; and the Environmental and Social Framework (ESF), for projects with concept notes after October 1, 2018. The ESF was adopted in August 2016 and will incrementally VA LU E S We help our clients solve their greatest replace the Safeguard Policies; the two are expected to operate in development challenges. parallel for about seven years. The ESF offers broader and more We do what is right. systematic coverage of environmental and social risks, including important advances on transparency, non-discrimination, social inclusion, public participation, and accountability. W  e care for our people, our clients, our partners, and our planet. For details, see: worldbank.org/en/projects-operations/environmental- and-social-policies  e work together to achieve W our goals. Accountability Mechanisms  e learn and adapt to find better ways W of doing things. Four key groups hold the Bank accountable to its clients and shareholders, ensure the highest performance standards in development effectiveness, protect the integrity of the projects Shareholders financed, and constantly improve the efficacy of its internal operations: Member countries govern the Bank through the Boards of Governors and the Board of Executive Directors. The Boards of The Inspection Panel, established by the Bank’s Board of Governors consist of one Governor and one alternate Governor Directors as the first independent accountability mechanism at an appointed by each member country. The Governors delegate international financial institution, provides people and communities specific duties to the 25 Executive Directors, who sit as a who believe that they have been or are likely to be harmed by a resident Board of Directors in Washington, DC. The five largest project funded by IBRD or IDA access to an independent body, shareholders appoint an Executive Director, while other member where they can express their concerns and seek recourse. countries are represented by elected Executive Directors. The Inspection Panel’s annual reports are available online at Together, the Boards of Governors and the Executive Directors inspectionpanel.org. make all major decisions for the organization, including policy, The Independent Evaluation Group (IEG) aims to strengthen the financial, and membership issues. Bank Group’s development effectiveness through evaluations that The World Bank Group President chairs meetings of the Boards assess results and performance and provide recommendations for of Directors and is responsible for overall management of the improvements. IEG’s evaluations contribute to accountability and Bank. The President is selected by the Board of Executive learning, helping inform the Bank Group’s directions, policies and Directors for a five-year, renewable term. procedures, and country partnership frameworks. IEG reports are available online at ieg.worldbankgroup.org. Stakeholders The Integrity Vice Presidency (INT) investigates allegations of fraud, corruption, collusion, coercion, and obstruction in Bank In the context of World Bank-supported activities, stakeholders Group-financed projects, including those involving Bank Group are considered to be anyone who is in some way—positively staff and corporate vendors. INT’s annual report is available online or negatively—impacted by the potential outcomes of these at worldbank.org/en/about/unit/integrity-vice-presidency. activities. The World Bank categorizes stakeholders into two main groups: internal and external. The Group Internal Audit (GIA) provides independent, objective, and insightful risk-based assurance and advice to protect and Internal stakeholders include shareholder governments enhance the value of the World Bank Group. GIA provides senior (the Boards of Governors), Executive Directors and Senior management and the Board with an independent view and Management, and Bank employees. reasonable assurance that processes for managing and controlling risks—as well as their overall governance—are adequately External stakeholders include parliamentarians; civil society; faith- designed and functioning effectively. GIA’s annual and quarterly based organizations; academics; professionals; the private sector reports are available online at worldbank.org/internalaudit. (including sustainable, responsible, and impact investors in World Bank bonds, companies, and social entrepreneurs); beneficiaries The World Bank monitors operational performance through the of Bank-supported activities, and international, national, and local World Bank Corporate Scorecard, the IDA Results Measurement media, among others. See details in GRI disclosure 102-42. System, and regular opportunities to discuss progress on operations with the Bank's Executive Directors. The World Bank Environmental & Social Policies for Projects Corporate Scorecard is available online at scorecard.worldbank. org. IDA results are available at ida.worldbank.org/results. Boards When providing financing to governments, the World Bank of Directors' Work Programs, Calendars, and Meeting minutes are looks to protect people and the environment from potential available at worldbank.org/en/about/leadership/directors. O U R F I N A N C E S As a development institution, the Bank must maintain financial strength to serve GRI growing demand from clients and meet an ambitious development agenda. Our 200 economic performance is better understood by grasping the unique business models and associated risks for the two agencies that make up the World Bank. FY19 In October 2018, the Board of Governors approved support borrowers with an average annual financing a capital package consisting of a $7.5 billion capital capacity of about $100 billion during fiscal 2019–30, increase—our largest ever—and a series of financial up from $65 billion during fiscal 2014–16. and policy reforms. This will enable the Bank to WORLD BANK BONDS To fund development projects in member countries, IBRD In fiscal 2018, IDA entered the capital markets for the first finances its loans from its own equity and from funds time with an inaugural $1.5 billion benchmark bond. This borrowed in the capital markets through the issuance of has enabled IDA to significantly scale up its support toward World Bank bonds. IBRD is rated Aaa by Moody’s and AAA achieving the Sustainable Development Goals, while offering by Standard & Poor’s, and investors view its bonds as high- investors an efficient way to contribute to global development. quality securities. IBRD’s ability to intermediate the funds it raises in international capital markets to developing member countries is important in helping to achieve its goals. IBRD’s FY19 strategy has enabled it to borrow at favorable market IBRD bonds raised (27 currencies) $54.0 billion terms and pass the savings on to its borrowing members.  IDA bonds total orders $4.6 billion Information about IBRD innovative bonds, including Green Bonds, is available at www.treasury.worldbank.org. (US dollar equivalent) GLOBAL COMMITMENTS $45.1 billion Global Commitments IBRD & IDA Commitments by Theme, Fiscal 2019 (millions of dollars) (consists of loans, grants and IBRD IDA guarantees) Economic Policy 1,363 1,073 For monitoring, reporting, and Environment and Natural Resources Management 8,514 9,680 better decision-making about its commitments, the World Bank Finance 3,546 2,418 applies a taxonomy of codes to all Human Development and Gender 7,227 7,860 lending operations to reflect the Private Sector Development 4,438 5,145* sectors and themes into which it directs its resources. Theme codes Public Sector Management 2,912 2,513 reflect the goals and objectives of Social Development and Protection 2,453 2,722 Bank-supported activities and are Urban and Rural Development 6,511 7,866 used to capture the Bank’s support Note: Because lending commitments for individual operations can be applied to multiple theme categories, figures to the Sustainable Development organized by theme do not add up to fiscal year commitment totals, and therefore should not be summed. Goals. Breakdowns of lending * Figure does not include $393 million in approved IDA18 IFC-MIGA PSW instruments, of which IDA has exposure data are available at http://www. of $106 million in guarantees, $25 million in derivatives, and $1 million through funding of IFC-PSW related equity worldbank.org/financialresults. investment. NET REVENUES IBRD net revenue IDA net revenue The financial performance of IBRD reflects the impact of the measures put in place in $ 2.3 $ 2.16 1.91 $ billion $ 1.7 1.65 $ $ 1.52 previous years to increase billion billion billion billion billion its financial capacity and ensure its long-term financial sustainability. 2019 2018 2017 2019 2018 2017 Note: Sources of IBRD revenue include net revenue from loans, Equity Management, and investment trading. IDA's revenues include revenue from loans and from invest- ments, net of borrowing costs. The financial performance of IBRD reflects the impact from the measures put in place in previous years to increase its financial capacity and ensure its long-term financial sustainability. EXPENSES Significant progress has IBRD net administrative expenses IDA administrative expenses (including grants) been made to ensure budget spending discipline and efficiency, which has resulted $ 9.2 $ 6.5 $ 4.08 billion billion billion in an improvement in the $ 1.17 $ 1.18 $ 1.34 Budget Anchor (an efficiency billion billion billion measure that shows net administrative expenses as 2019 2018 2017 2019 2018 2017 a percentage of loan spread revenue.) Note: The figure provides IBRD administrative expenses and IDA administrative and development grant expenses. O U R P E O P L E Staff are the World Bank’s greatest asset. They bring a wide range of perspectives GRI to bear on poverty-reduction issues and emerging development challenges, and are 102 critical to the effectiveness of the Bank’s core operational and knowledge services. GRI 400 FY19 The annual staff engagement survey provides an percent of staff expressing their pride in working for opportunity for staff to share their views on the the Bank. There was improvement in staff responses to workplace and to provide feedback to management on questions such as (1) being inspired by the institution to areas to strengthen our Employee Value Proposition. do their best work, and (2) the Bank is the best place to Results show that we have a strongly engaged work in development. workforce with 83 percent of staff participating and 92 HUMAN RESOURCES Bank staff includes economists, educators, environmental and retains world-class, diverse talent with the critical skills, scientists, financial analysts, foresters, agronomists, engineers, experiences, mindsets, and behaviors needed to effectively information technology specialists, social scientists, etc., and respond to complex and constantly evolving client needs. The offer clients a unique combination of global expertise and People Strategy sets out a three-year roadmap of HR programs in-depth local knowledge. To deliver on its mission, the World and priorities focused on achieving the business objectives Bank strives to be the best place to work in development by outlined in the Forward Look. offering an Employment Value Proposition that attracts, motivates, 12,283 staff 43% work in 140 countries 29% Self-Employed Workers 409 extended term consultants 6% Rate of New Employee Hires 52% are female 5,097 full-time equivalent 6.7% Employee Turnover Rate short-term consultants DIVERSITY Diversity targets World Bank staff come from over 170 countries. FY19 Target Their diversity and global reach stand out among Managers from developing countries 42% 50% international financial institutions and other Female Managers 43% 50% development organizations. Female Technical (Professional level) 46% 50% Sub-Saharan/Caribbean 14% 12.5% (Professional & Managerial level) Diversity of governance body Age diversity 62% aged 30–50 34% over 50 4 of 25 Executive Directors are women 4% less than 30 DISCRIMINATION The World Bank promotes a positive and respectful workplace. Staff have numerous 4 allegations of discrimination avenues to raise a concern and comprehensive reviewed in FY19 grievance mechanisms to address and resolve workplace issues through informal and formal These included alleged instances of discrimination based on race, nationality, religion/ services. These services provide space for the creed, and gender. None of these resulted in a report of investigation or finding of misconduct. effective management of conflict and increase the Bank’s capacity to build and retain a globally- representative workforce. STAFF HEALTH AND SAFETY FY18 workers compensations claims due to illness The World Bank Group’s Occupational Health 14 cases for full-time staff and Safety Management System identifies and 8 cases for short-term consultants systematically controls health and safety hazards (e.g. infectious diseases related to travel ) in our workplaces, with an approach guided by international health and safety standards. FY18 workers compensation claims due to injury 53 cases for full-time staff 7 cases for short-term consultants (e.g. sprains and fractures) STAFF TRAINING The World Bank invests in staff learning to enhance technical skills and knowledge, 91 % of salaried workforce attended at least  strengthen problem-solving skills, and foster one learning event innovation to attain the Bank Group’s twin goals 5,100 # training courses delivered globally efficiently and creatively. Staff take courses to retain and enhance cutting-edge skills on emerging strategic priorities as they carry out the World Bank’s mission and develop their careers. COMMUNITY CONNECTIONS Around the world, where Bank staff live and work, $ 4.3 $ 8.6 we engage locally. Through volunteering, staff million million donations, corporate matching funds, and asset staff donation with WBG match donations we take seriously our responsibility as a neighbor in our host communities. 86% Staff participation O U R P L A C E S The World Bank recognizes that reducing its own corporate environmental impacts is GRI in line with the institutional mission to reduce poverty, as environmental degradation 300 affects the world’s poor disproportionately. Increasing the efficiency of how the organization runs its business—through facility-level and staff-behavior changes— reduces natural-resource waste and decreases the cost of day-to-day operations. FY19 In fiscal 2019, the World Bank adopted a new corporate have also eliminated single-use plastic bottles from their carbon emissions reduction target to reduce direct and sites, while others are looking to reduce use. indirect carbon emissions from our global facilities by In all Bank buildings in Washington, a centralized waste 28 percent between 2016-2026. collection system was introduced, including composting Plastic bottles were phased out in Bank buildings in and recycling, that eliminated bins from individual Washington. Offices in Ethiopia, France, and Pakistan offices. World Bank Global GHG Emissions (mtons CO₂e) World Bank Global GHG Emissions (mtons CO₂e) GHG EMISSIONS 160,000 154,292 148,184 The Bank committed to reduce direct and indirect carbon 143,047 emissions from our global facilities by 28 percent by 2026 from a 2016 baseline. A range of measures are being 110,000 considered, including using renewable energy wherever feasible and improving energy efficiency. To offset direct Business Travel and indirect carbon emissions that were not curtailed, carbon offsets as well as Renewable Energy Credits were 60,000 purchased and retired. Note: Fiscal year 2018 data was collected from the Bank’s 136 country office Purchased Electricity facilities and 14 facilities in the U.S. GHG emissions data lags by one fiscal year. 2016 is the base year. Information on the methodology are in the Inventory 10,000 Management Plan for fiscal year 2018. Onsite Energy, Refrigerants, Mobile Fuel FY18 FY17 FY16 MATERIALS Major corporate material purchases (including Materials Used FY19 FY18 FY17 office construction and renovations, paper, IT hardware, and furniture) are made with Single-use plastic water bottles 4 100 95 sustainability impacts in mind and incorporate purchased in HQ (metric tons) mandatory environmental and social FSC-certified paper used in HQ (%) 100 100 100 specifications as well as evaluation criteria to 100% recycled-content paper used in 57 50 64 reward sustainability best practices. To encourage HQ (%) a diverse supplier base, the Bank Group has a goal of doubling corporate procurement from Corporate procurement spent with 4 3.7 3.1 women-owned businesses to 7 percent of our women-owned businesses in global total procurement spending by 2023. offices (%) Note: A phase-out of plastic bottles at the Bank’s headquarters was completed early in fiscal year 2019. The only bottled water purchases were residual orders from the previous fiscal year. ENERGY CONSUMPTION  We measure and manage the energy utilized in our 140 country locations with an aim to minimize 4% ↓ 0.77 GJ/m2 our impact on host communities and curtail global energy use (2016-2018) Energy use intensity in WB facilities climate impacts, while reducing costs. The World Note: Total global energy use from onsite fuel use includes vehicle fuel use, and purchased electricity, Bank has 14 buildings certified to sustainable cooling, and steam. Fiscal year 2018 data was collected from the Bank's 136 country office facilities building standards, including two buildings outside of the U.S. Energy use data lags by one fiscal year. 2016 is the base year. certified in 2019—in Afghanistan and Myanmar— which were the first in their respective countries to be certified as LEED Gold. WATER World Bank facilities conserve the amount of 17% ↑ 83%  water used through technological upgrades and proactive maintenance practices. This includes water use in Washington, World Bank-owned offices globally purchasing water-efficient fixtures, proactively DC facilities (2016-2018) reported their water usage checking for leaks, and investing in water-efficient equipment in our HVAC systems.  LOW-IMPACT COMMUTING 79% of World Bank Group Choosing sustainable modes of transportation staff in Washington, D.C. to commute to work is becoming easier for staff use alternative means working at HQ. The World Bank has been a gold- of commuting, including level Bike Friendly Business since 2017. biking, walking, public transportation, and carpooling. 10% increase in cyclists from FY17–FY19 WASTE A combination of source reduction, reuse, and 61% of waste recycled 39% went to landfills recycling efforts aims to reduce the amount of and composted in waste sent to landfills through World Bank offices Washington, DC globally. Typical waste items from World Bank facilities include paper, bottles, cans, cardboard, food waste, toner cartridges, carpet tiles, and electronics. Collection of waste data from country offices is being improved. A B O U T The World Bank The World Bank is a vital source of financial and technical • Research, analysis, partnership coordination, and assistance to developing countries around the world. The technical assistance services that are designed to share World Bank Group comprises five institutions managed by their the best knowledge available to achieve development member countries. results and that underpin World Bank financing. Established in 1944, the World Bank Group is headquartered in We work throughout the following regions: Africa, East Asia Washington, D.C. We have more than 10,000 employees in more and the Pacific, Europe and Central Asia, Latin America and the than 140 locations worldwide. Caribbean, the Middle East and North Africa, and South Asia. The work of the World Bank is anchored in its goals: to end • IBRD is governed by and works with its 189 member extreme poverty—reducing the share of the global population countries to achieve equitable and sustainable economic living in extreme poverty to 3 percent by the year 2030; and to growth in their national economies, and to find solutions promote shared prosperity—by increasing the incomes of the to pressing regional and global problems in economic poorest 40 percent of people in every country. Both goals must development and other important areas, such as envi- be met in a sustainable manner. ronmental sustainability. Through global capital markets, To attain its goals, the World Bank offers: IBRD has been mobilizing financing for our client coun- tries for over 70 years, raising nearly $900 billion since • Innovative financing instruments and products for an its first bond in 1947. array of investments in such areas as education, health, • IDA works with its 173 member countries, offering financ- public administration, infrastructure, financial and private ing on highly concessional terms to governments of the sector development, agriculture, and environmental and poorest countries to boost economic growth, reduce natural resource management. Some of the Bank's proj- inequalities, and improve people's living conditions. ects are cofinanced with governments, other multilateral institutions, commercial banks, export credit agencies, Each of the World Bank entities operates according to and private sector investors. The Bank also provides or procedures established by their respective Articles of facilitates financing through trust fund partnerships with Agreement. These agreements outline the conditions of each bilateral and multilateral donors. Many partners have entity’s membership and the general principles of organization, asked the Bank to help manage initiatives that address management, and operations. needs across myriad sectors and developing regions. About the Report The Sustainability Review 2019 highlights World Bank activities undertaken in fiscal year 2019 (July 1, 2018 - June 30, 2019), to manage the environmental, social, and economic impacts of internal business operations. The Review complements the standalone index of indicators prepared in accordance with the GRI Standards: Core option, which can be found here. Scope: The content and data in this document relate to the International Bank of Reconstruction and Development (IBRD) and the International Development Association (IDA), together, the World Bank. The Sustainability Review 2019 does not cover activities of the other three agencies of the World Bank Group: the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID). These agencies publish separate annual reports. Some references to the World Bank Group have been made in this report as appropriate. For more about the World Bank and its sibling agencies, see worldbank.org/about. Except for the eligibility of support and terms of lending to client countries, IBRD and IDA are tightly integrated and work as a single unit. Materiality: The topics deemed relevant for disclosure in the Sustainability Review were identified by considering annual corporate priorities outlined by the institution’s Boards and President and by valuing stakeholder input, as well as by ascertaining sustainability impacts of carrying out the Bank’s mission and strategy. GRI aspect categories were used to determine topics to be included in the Sustainability Review. Relevance was determined by assessing (1) the potential impact on the Bank’s business and (2) the sustainability impacts stemming from our business. Boundary: The World Bank’s corporate operations address how Bank buildings and staff, and the communities that host Bank offices, are managed with the environment, society, and economy in mind. This type of impact is referred to as “corporate,” and is the basis of this year’s Sustainability Review. Simultaneously, GRI indicators related to these impacts are categorized as “corporate” indicators. This Review complements the World Bank Annual Report 2019, which addresses the World Bank’s impacts from lending to client countries. This type of impact is referred to as “operational” impact. Topics stemming from Bank work with clients are discussed in further detail in the GRI Index 2019 indicators specified as “operational,” as well as in the World Bank Annual Report 2019. » Send questions and comments to crinfo@worldbank.org.