This Advisory Note represents CAO’s contribution to IFC’sreview and update of its Sustainability Framework, whichconsists of the Policy and Performance Standards onSocial and Environmental Sustainability (PPS) and Policyon Disclosure of Information. IFC adopted the Policy and Performance Standards on Social and Environmental Sustainability andDisclosure Policy (“Sustainability Framework”) in 2006, it marked a shift in the way in which IFC, and MIGA, address environmental and social risks. The philosophy inherent in the new policies and standardssignaled a move from satisfying a set of prescriptive requirements to an ‘outcomes-based’ approach. ThePerformance Standards require client companies to engage with host communities early; to buildconstructive relationships, and maintain them over time. However, the level of engagement variesdepending on the nature of company operations and the associated risks and impacts. CAO’s review builds on ourprevious advisory work related to IFC’s policy framework, and aims to make pragmatic recommendations focused on improving implementation at the project-level and enhancing IFC’s local development impact. CAO’s experience shows that sound company-community engagement creates predictability for host communities around project-level impacts and mitigation measures, and can help to prevent conflict around private sector projects. We have drawn these insights from our case load over the past ten years,and it is illustrated by CAO’s existing body of advisory work.In accordance with CAO’s mandate, this review focused on IFC commitments and client company requirements with a direct impact on host communities and the community-company relationship Specifically, we found gaps in company-community engagement at the project-level that require moreattention. For example, engagement with affected communities regarding project mitigation activitiescould be enhanced by better articulating local development impacts and providing up-to-date project information to host communities. An increase in resources dedicated to environmentaland social appraisal and supervision of IFC’s FI portfolio could help close this gap.
Evaluación de las Políticas y las Normas de Desempeño sobre Sostenibilidad Social y Ambientaly Políticas de Divulgación de Información de la Corporación Financiera Internacional (CFI)
client company;Host Communities;Environmental and Social Management System;Environment and Social Development;indigenous people development plan;Oil, Gas and Mining;growth in trade finance;projects on the ground;Development Outcome Tracking System;local stakeholder;mitigation measure;social risk management;social and environmental;accountability for outcomes;significant adverse impact;civil society participants;approval process;
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CAO Advisory note : Evaluación de las Políticas y las Normas de Desempeño sobre Sostenibilidad Social y Ambientaly Políticas de Divulgación de Información de la Corporación Financiera Internacional (CFI) (Spanish). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/149881478088138753/Evaluación-de-las-Políticas-y-las-Normas-de-Desempeño-sobre-Sostenibilidad-Social-y-Ambientaly-Políticas-de-Divulgación-de-Información-de-la-Corporación-Financiera-Internacional-CFI