IFC has long recognized the importance of codes and scorecards for private sector development. Since 2005, IFC has worked with regulators, stock exchanges, and other stakeholders to develop, implement and assess ESG codes and scorecards. Initially focused on corporate governance, IFC expanded its offering to ESG codes and scorecards to respond to the growing interest and demand related to sustainability issues such as climate change.
Codes are typically part of a country’s ‘soft law’ regulatory regime, primarily aimed at publicly listed companies to provide minimum standards. Such codes – which can be implemented on a voluntary, mandatory, or comply/explain basis– are important to investors, such as IFC, as they help raise ESG practices of companies, instilling investor confidence and facilitating private sector investment.
Scorecards help investors, regulators and stakeholders understand whether companies adopt certain ESG practices. They increase accountability and transparency, contributing to strengthening a country’s overall investment climate.
IFC has supported:
The adoption and revision of 198 codes, laws and regulations since 2005
The development of 20 scorecards since 2008