In seeking to better define, in tangible and concrete ways, the components of sustainable performance and enable IFC management to better assess project impacts, the IFC has developed a framework for measuring sustainability. The framework includes indicators for “high impact” transactions that demonstrate significant positive environmental social, or corporate governance impact and go beyond meeting minimum IFC environmental and social standards and required economic rate of return.
The proportion of high-impact projects committed by each investment department is one of the factors included in IFC Departmental Scorecards. In 2002, 47.3 percent of total IFC investments were found to be high-impact projects and the percentage is expected to increase significantly in 2003. The IFC projects highlighted below are a few of the most recent examples of how IFC investments are designed for high impact.
Brazil Soybean Exporter Applies Environmental, Social Due Diligence
With the help of IFC, Amaggi is implementing an Environmental Management System (EMS) to assist the company in developing internationally recognized environmental and social practices for its own operations as well as strengthening environmental and social due diligence in prefinancing to third-party farmers. The EMS will also serve as a tool for Amaggi in its dialogue with the NGO community and will ensure that farmers will not impact negatively on critical natural habitats. The company has been developing the EMS as a base for working toward international certification.
Macedonia Microfinance Bank Provides Transition Out Of Poverty
IFC’s investment in MFB Macedonia will help establish a microfinance bank in Skopje, specializing in lending to micro and small businesses. Microlending has a proven track record of helping the poor transition from unemployment to participation in the market economy. This project will therefore directly benefit the poor by creating employment and providing access to financial services, while strengthening Macedonia's market economy.
Panama Water Utility Brings Public Health Gains To Poor
This IFC project will provide financing to complete the Laguna Alta bulk water treatment plant, giving 270,000 Panamanian residents access to drinkable water. Increased access to potable water is expected to speed economic development, contribute to the reduction of waterborne disease, and improve environmental and human conditions in the affected area.
Brazil Supplier Trades Up To Eco-Friendly Transportation
UP Offshore, a new Brazilian provider of supplies and services to offshore oil and gas companies, will be operating environmentally friendly vessels with financing from IFC. It is building six platform supply vessels, applying modern designs that compete favorably with older and less environmentally-friendly models. These vessels will also be capable of carrying out oil recovery tasks. The aim is to provide environmentally sound transportation of offshore supplies.
Yemen Bottler Increases Supply Of Safe Drinking Water
IFC's financing of the Ahlia water project to upgrade and modernize existing facilities of a mineral water bottling plant in Ibb, Yemen will increase the country’s supply of safe drinking water. The project will also generate additional jobs and there are plans to use more environmentally friendly packaging.
Jordan Manufacturing Firm Sets Regional Tone On Corporate Governance
The Middle East Complex For Engineering, Electronics and Heavy Industries Company, which is expanding with IFC financing, is taking several concrete steps to implement best corporate governance practices. Having established a management and audit committee, the manufacturing firm is forging ahead with developing a corporate governance manual. It already has a clear commitment to environmental management through its ISO 14001 certification.
Algeria Cement Firm Lowers Cost To Consumers
Algeria's first privately-owned cement company will generate substantive benefits to consumers through lower product price as it helps reduce Algeria’s current dependence on higher-priced cement imports. The IFC-backed project will also implement more efficient production practices.
Bangladesh Manufacturer Impacts Affordability, Eases Access to Sanitation
The IFC project is to support an expansion by R.A.K. Ceramics, the leading Bangladeshi ceramic tile manufacturer. The result is production of high-quality products at internationally competitive prices. This will allow the firm to sell sanitary ware at prices that are roughly 50 percent below duty-free imports, resulting in a significant consumer surplus.
Philippine Utility Brings Clean Water To The Poor
Five million people live in the service area of the Manila Water Company Inc (MWCI), the metro Manila East water and wastewater concessionaire. Supported by IFC, the MWCI has been able to achieve significant improvements in water quality and availability, and to apply innovative approaches to sewerage and sanitation expansion. MWCI works through community leaders to create a partnership with neighborhoods and assists them to form water cooperatives to manage their own water systems.
