International Finance Corporation
Climate Impact & Sustainability Data (2010-2013)
Reporting Period: 2010-2013
Environmental Metrics
ESG Focus Areas
- Inclusive Green Growth (IGG)
- Climate Change Mitigation and Adaptation
- Renewable Energy
- Energy Efficiency
- Water
- Sustainable Development
Environmental Achievements
- Increased financing for mitigation investments to approximately US$350 billion in 2010/2011, mostly private sector funding for renewable energy.
- Significant growth in IFC's climate-related portfolio from 2005 to 2013, reaching 14% of total own-account commitments.
Social Achievements
- Initiatives promoting clean cookstoves and solar lanterns to improve energy access and health in developing countries.
- New business models for off-grid clean water services in rural Kenya.
- Increased engagement of local financial institutions in financing clean energy projects through development banks.
Governance Achievements
- Development of country-based indicators to inform investors about barriers and opportunities for green investments.
- South Africa's Pension Funds Act mandating consideration of ESG issues in investment decisions.
Climate Goals & Targets
Environmental Challenges
- Lack of a universally agreed definition of IGG.
- Inconsistent data on financial flows for IGG.
- Limited data on adaptation finance and investments in low-income countries.
- Barriers to scaling up clean cookstoves and solar lanterns (non-financial factors).
- Challenges in developing sustainable business models for clean water services.
- Barriers to widespread adoption of energy efficiency investments in developing countries.
- Lack of investor experience in emerging markets and direct project investing.
- Policy uncertainty and developing country risks deterring investors.
- Liquidity concerns and short investment time horizons.
Mitigation Strategies
- Development of a knowledge management system (IGG Brain) to access and navigate IGG literature.
- Multi-pronged approach to address barriers to clean cookstove adoption (awareness, markets, technology, financing).
- Innovative business models for off-grid services (water, energy).
- Public-private partnerships and blended finance to leverage private investment.
- Development of country risk indicators to inform investment decisions.
- Policy changes to incentivize green investments (e.g., South Africa's Pension Funds Act).
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Floods
- Droughts
Transition Risks
- Policy uncertainty
- Market shifts
Opportunities
- Renewable energy investments
- Energy efficiency improvements
- Climate-resilient infrastructure
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 13 (Climate Action)
Initiatives contribute to these goals by promoting renewable energy, energy efficiency, and climate resilience.
Sustainable Products & Innovation
- Clean cookstoves
- Solar lanterns
- Energy-efficient appliances