Project Examples

IFC's work in Sustainable Investing focuses the development of market infrastructure for the inclusion of environmental and social criteria in investment decisions. We support projects that increase the provision of investment research on such criteria, enhance methodologies for including this data in traditional equity research and generate new investment vehicles.

Bovespa Sustainability Index, Brazil

Following the landmark 2003 report "Towards Sustainable and Responsible Investing in Emerging Markets", the Sao Paolo stock exchange sought IFC's assistance in developing a Sustainability Index that would track the corporate social responsibility performance of Brazilian firms. Successfully launched in December 2005, the Bovespa Sustainability Index provides market-based incentives for more sustainable business practices and included an awareness-raising program for Brazilian companies. In the short time since its launch, this index has consistently matched or outperformed its benchmark.

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Who Cares Wins Investor Initiative, Global

In September 2006, IFC together with the UN Global Compact and the Swiss Ministry of Foreign Affairs again co-hosted the Who Cares Wins conference. The overall focus if the initiative is the integration of environmental, social and governance (ESG) criteria into traditional financial analysis, asset management and investment processes. The discussion this year focused on the communication of material ESG issues through the company-investor interface.

Read more... Who Cares Wins 2006 Conference Report (PDF, 1.02mb)

Taking Stock Sector Research, Asia

Taking Stock represents a first step toward filling a very large analytical gap in the Asian investment literature. This gap is striking given that Asia is the fastest growing source of sustainability risks globally, due to its rapid growth in economic activity and in associated environmental, social, and governance (ESG) impacts.

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Private Equity: Fund Manager Training and Company Support, Africa

Sustainable investment training for a $100 million private equity fund based in Beijing was delivered by a multidisciplinary team from IFC's Funds Department and Environment & Social Development Department. It addressed corporate governance, social responsibility and environmental protection issues. Another highly innovative project will work with fund managers to channel technical and financial assistance to investee SMEs. This will improve the business operations of the SME and assist in promoting and facilitating environmental and social improvements, by demonstrating the business case. The program will be focused initially in Africa.

Product Development: Forestry Bonds, Global

Through a consortium of EU-based investors, IFC has begun to develop new sustainable investment products for emerging markets. The project group is currently investigating the suitability of asset-backed securities for long-term investment in responsibly managed forests. This project is part of the effort to develop investment products that will allow institutional investors to invest in lower income emerging markets.