The Compliance Advisor Ombudsman (CAO), the independent recourse mechanism of the International Finance Corporation (IFC), has released an audit of the IFC’s financial sector investments together with a response from the IFC. The audit considered 188 of the IFC’s 844 financial sector investments and has revealed significant risks from these investments as they potentially cause environmental and/or social harm.
The audit determines that while the IFC has followed its environmental and social policy and procedural requirements, the methodology does not determine whether environmental and social management systems in place by clients actually fulfil the ‘do no harm’ objective. Further, CAO questions whether IFC’s procedures support broader social and environmental outcomes “commensurate with IFC’s prominent leadership role as a promoter of environmental and social responsibility.”
The full audit can be accessed here.