IFC meaning

EPs (EPs) provide a framework for identifying, evaluating and controlling environmental and social risks within project financings. Launched in 2003 by the International Finance Corporation (IFC), backed by ten financial institutions, they have evolved into the financial sector’s baseline for due diligence and oversight, guiding responsible risk decisions. Institutions adopt the EPs to confirm that financed projects are delivered in a socially responsible way and embody robust environmental management; after adoption, they commit to offer financial services to project financings only where the EPs’ criteria are satisfied. The EPs have directed the project finance market’s focus towards social and community standards and accountability, encompassing stringent requirements for indigenous peoples, labour protections, and engagement with locally affected communities. They have also encouraged alignment around shared environmental and social norms and helped catalyse the creation of additional responsible environmental and social management practices across the financial sector and the banking industry. Lawyers working on major project finance transactions should be familiar with, and understand, the EPs’ guidance, particularly as...

Why is human rights due diligence important? Although not presently mandated by UK law, human rights due diligence is widely regarded as sound industry practice, shaped by the UN Guiding Principles on Business and Human Rights (UNGPs). In practice, exposure to liability is rising for companies—and their directors—who neglect these responsibilities. The Court of Appeal’s June 2024 judgment in R (on the application of World Uyghur Congress) v National Crime Agency (NCA) confirms that anyone importing or selling goods in the UK, while knowing or suspecting they originate from forced labour, may face criminal investigation and prosecution. For more information, see News Analysis: Pulling at the thread—new judgment confirms supply chain risk for companies (R (oao World Uyghur Congress) v NCA). Elements of the responsibility to respect human rights can already be compelled by national law, for example through health and safety, non-discrimination, or environmental legislation. It is also increasingly recognised as good business practice to manage potential human rights risks associated with a company’s activities, in...

Useful websites for Banking & Finance lawyers Lending and asset finance: LMA, APLMA, ACT, UK Finance, ISLA, Bank of England, ICE Benchmark Administration, BIMCO, CAA, UNIDROIT Cape Town Convention Private and acquisition finance: BVCA, GPCA, Invest Europe Islamic finance: AAOIFI, IIFM, IFSB, Islamic International Rating Agency Projects and property: Equator Principles, Homes England, IPA, IPFA, HM Land Registry, JCT, CREFC Europe Trade finance: UK Finance, OECD, UK Export Finance, BExA, ICC, ITFA, UNCITRAL Markets and derivatives: AFME, ESMA, ICMA, ISDA, FIA, P.R.I.M.E. Finance, LCH Insolvency and restructuring: The Insolvency Service, R3, ILA, Insolvency Practitioner’s Association, INSOL Europe Regulation: Bank of England, FCA, PRA, Financial Ombudsman Service, FSCS, FSB, HM Treasury, EBA, ECB, ESRB, IIF Sustainable finance: Green finance — GOV.UK, UN Principles for Responsible Banking, EU Sustainable Finance Overview, TCFD, ISSB, NGFS Institutions and infrastructure: Companies House, FCDO, FMLC, FRC, BIS, IMF, Council of the European Union (EUROPA), Euro Banking Association, European Banking Federation, Eur-Lex, Clearstream, Euroclear, Fitch...

We have conducted a review to identify where our business faces the greatest risk of either: creating or adding to negative human rights impacts through our own operations, or having our activities, goods or services directly tied to adverse human rights impacts via our business partners. [ We were supported by [ name of external consultants ] in completing this review. ] [ During the review we engaged the following stakeholders through [ insert brief details of method(s) of stakeholder engagement used, if any ]: [ insert details of first internal and external stakeholders engaged with during the assessment ] [ insert details of next internal and external stakeholders engaged with during the assessment ] ] [ We followed the impact assessment approach set out in [ eg The International Business Leaders Forum (IBLF) and the International Finance Corporation (IFC), working with...

1 Introduction We have undertaken an evaluation to pinpoint where our organisation is most at risk of either: causing, or contributing to, adverse human rights impacts through our own activities, or having our operations, products or services directly connected to adverse human rights impacts via our business relationships. [ We were supported by [ name of external consultants ] in completing the evaluation. ] [ As part of the evaluation we engaged with the following stakeholders through [ insert brief details of method(s) of stakeholder engagement used, if any ]: [ insert details of first internal and external stakeholders engaged with during the assessment ] [ insert details of next internal and external stakeholders engaged with during the assessment ] ] [ We followed the impact assessment methodology set out in [ eg The International Business Leaders Forum (IBLF) and the International Finance...