Sustainable Investing Project Examples

IFC's work in sustainable investing focuses on interventions at both the asset allocation and the investment management process. The Sustainable Investing team works with industry partners across the financial value chain, including asset owners, investment consultants and research firms, investment managers and index providers. Below is a summary of recent projects.

• IFC is working together with Trucost and S&P to develop the first global emerging market carbon efficient index. The index will be a carbon optimized version of the S&P IFC Investable index and will comprise over 1,000 emerging market companies. While maintaining a close tracking error to the S&P IFC I, the carbon footprint of the Carbon Efficient Index will be over 25% lower.
• IFC is working together with SECO and with feedback from IFC portfolio clients to develop an online tool to encourage private equity fund managers to incorporate environmental and social analysis into their investment process.
• In conjunction with the World Resources Institute (WRI) and HSBC, IFC is producing a series of reports that seek to identify material environmental risks in specific industry sectors in Asia and establish a framework for incorporating this risk analysis into traditional financial valuation models.