April 6, 2010 -- The World Bank Group has launched a web site dedicated to the development of its future engagement strategy in the palm oil sector. The web site provides information about the strategy development process and allows for stakeholders to provide input. To learn more about the World Bank Group Palm Oil Strategy development process and to participate please go to www.ifc.org/palmoilstrategy.
The focus of the audit was to evaluate IFC’s compliance with its own applicable policy provisions and how IFC assured itself of project performance. The audit did not evaluate the performance of Wilmar nor did it evaluate any potential environmental and social impacts of IFC’s projects with Wilmar.
IFC acknowledges the substantial effort and the significance of the issues reviewed by the CAO in its audit report and welcomes the contribution by the CAOto help IFC strengthen the development impact of its projects.
The CAO audit pointed out a number of shortcomings in IFC’s assessment of its projects with Wilmar. In its response to the audit IFC acknowledged the shortcomings and outlined some of the actions IFC will be taking to correct the deficiencies identified.
Specifically, IFC is developing a comprehensive strategy that will guide IFC’s future involvement in the palm oil sector. The strategy will be developed in consultation with key stakeholders, including industry, financial institutions, civil society, and indigenous peoples’ organizations. Until the new strategy is in place, IFC will not approve any new investments in the palm oil sector. The issues related to categorization of trade finance facilities and supply chain due diligence will be addressed in detail during the current review of IFC’s Performance Standards through a broad consultative process.
