As part of IFC’s annual reporting requirements, Banking Institutions are required to provide information on:
- Portfolio breakdown by business line (as applicable): Retail banking/consumer loans, long-term finance (for small-medium enterprises, project/large corporate finance and trade finance), short-term finance and other.
- Portfolio breakdown by industry sector: For financial transactions with small-medium enterprises and project/large corporate finance.
- Environmental and social risks identified during the due diligence process (as applicable): For financial transactions with small-medium enterprises and project/large corporate finance that are longer than 12 months and larger than US$ 1 million.
- Implementation of the Environmental and Social Management System:
- Status of policies and processes to ensure compliance with the applicable IFC environmental and social performance requirements;
- Two examples of completed environmental and social due diligence reports for high risk projects (if required);
- Capacity for managing environmental and social risks;
- Monitoring commercial clients for ongoing compliance with the applicable IFC environmental and social performance requirements; and
- Internal and external reporting on environmental and social performance (as applicable).
- Exposure to the IFC Exclusion List: Percentage of loans or investments out of the total outstanding exposure provided to clients who are substantially involved in excluded activities.
- Sustainable finance: Investments in projects with environmental and social benefits such as management systems, energy efficiency, renewable energy, cleaner production, pollution management, supply chain greening, corporate social responsibility, and community development.
IFC reviews the Annual Environmental Performance Report (AEPR) and follows up with the financial institution to provide clarification on applicable IFC environmental and social performance requirements, discuss how to improve environmental and social performance and the ESMS and identify any value-added environmental business opportunities.
