Accountability

At IFC, we work with the private sector to create markets and jobs for people in developing countries who urgently need them. We strive to unlock new, innovative opportunities for the communities in which we work, but we are also accountable to the people that are affected by the projects we finance. We are accountable to our partners, clients and communities as we aim to achieve our development objectives in an environmentally and socially responsible manner.

Our Approach

IFC has adopted a systematic approach of engaging when we first become aware of complaints or concerns. Early-stage prevention and proactive problem-solving are always better. In parallel, IFC’s accountability and oversight mechanisms continue to address the risks associated with the complexity of our operations, including working in challenging, fragile, and extremely poor environments.

Environmental and Social (E&S) Policy & Risk Oversight

To support IFC’s strategy to increase our engagement in challenging markets, two important structural changes were made in 2019 to improve IFC’s E&S policy and risk oversight. First, to increase the ownership of environmental, social, and governance (ESG) issues by investment and advisory project teams, our ESG Advice and Solutions department was integrated with Operations. At the same time, to act as custodian of IFC E&S policies and standards, and serve as a “regulator” of our E&S functions, a new department was created—E&S Policy & Risk, led by Nessim Ahmad, Senior Director—reporting to the IFC CEO. The new department oversees high-risk IFC projects, facilitates stakeholder grievance response by project teams, and can mobilize a rapid response team as needed.
Transparency

IFC believes that transparency and accountability are fundamental to fulfilling our development mandate and strengthening public trust in IFC and our clients. IFC's Access to Information Policy reaffirms and reflects our commitment to these principles. We disclose information about our projects, including project-level environmental and social review summaries, through our disclosure portal. Recently, we have committed to enhancing transparency around IFC’s Blended Finance tools. For more information about the IDA 18 Private Sector Window projects, concessionality and how it is calculated, and governance of blended finance resources, visit IFC's Blended Finance page.
Stakeholder Engagement

Engagement is critical to our ability to deliver results. Through regular consultations and partnerships with civil society organizations, the private sector, and others, we form a continuous feedback loop with our stakeholders about key sustainability issues.

Stakeholders must also be able to provide feedback and raise concerns with our clients and with IFC when necessary to ensure that environmental and social impacts in IFC-financed projects are avoided, minimized or mitigated and that the project achieves its intended development impact.

IFC Position Statement on Retaliation Against Civil Society and Project Stakeholders (English | Spanish | French)
Independent Accountability Mechanisms

Our work is evaluated by two independent accountability mechanisms:

1. The Compliance Advisor Ombudsman (CAO) is mandated to address complaints from people affected by IFC projects in a manner that is fair, objective, and equitable—with the objective of enhancing environmental and social project outcomes and fostering greater public accountability of IFC.

2. The Independent Evaluation Group is an independent unit reporting directly to IFC’s Board of Directors. IEG’s mission is to strengthen World Bank Group institutions through evaluations that inform strategies and future work—and lead ultimately to greater development effectiveness.

3. The Integrity Vice Presidency is an independent unit that investigates and pursues sanctions related to allegations of fraud and corruption in World Bank Group-financed projects.
Learning

We believe that learning from our experience and gathering feedback from stakeholders is critical to achieving our mandate. We are continually improving our procedures, good-practice guidance, and learning materials based on our engagement with partners, analytical work, and operational experience. We also help clients understand and find solutions to difficult challenges they face.
Our Governance

Ultimately, the 185 countries represented on IFC’s Board of Directors provide the highest layer of accountability and oversight for the institution.