IFC gets out vuvuzella for sustainability reporting
Jointly with GRI, the International Finance Corporation (IFC, part of the World Bank Group) published a bridging document showing how strategies, system and data points developed to meet IFC Performance Standards can be used to generate GRI-type sustainability reports. About time to help capital project developers/sponsors to leverage expensive compliance reporting to create more shareholder value!
Capital project sponsors seeking project finance and political risk insurance from IFC, EBRD, Equator Banks and Export Credit Agencies (such as Export Development Canada or EDC) sometimes feel the need to reach for headache pills when they commit to meeting the IFC Performance Standards and, its derivative, the Equator Principles. Heartburn treatment is sometimes added when they try to meet the associated monitoring requirements for quarterly and annual monitoring reports. The associated systems and data cost lots of time and money to produce. Given focus (tunnel vision?) on compliance with loan or subscription agreements, the systems and data sets have not been recognized as a tool to create more shareholder value for the company. But this is about to change.
Gold Reserve Inc (supported by Prizma) became the first pre-production, junior mining company listed in Canada to use and leverage its environmental and social impact assessment studies designed to meet IFC Performance Standards and Equator Principles to create an inaugural sustainability report.
Getting a ‘bigger bang for the buck’ creates shareholder value. Leveraging systems and data designed to meet IFC Performance Standards and Equator Principles can be used to produce sustainability reports. It may surprise you how little extra efforts is involved in this process…!
About the author: Mehrdad Nazari (MBA, MSc, LEAD Fellow) is a Corporate Responsibility, Sustainability Reporting & ESIA Advisor, and Director of Prizma. He was previously an environmental consultant with Dames & Moore, Principal Environmental Specialist at the EBRD and CSR Research Director at CoreRatings. Mehrdad is a GRI-approved trainer on GRI's sustainability reporting framework and a licensed AA1000 Assurance Provider.