THE INTERNATIONAL FINANCE CORPORATION’S PERFORMANCE STANDARDS AND THE EQUATOR PRINCIPLES: RESPECTING HUMAN RIGHTS AND REMEDYING VIOLATIONS?

The document argues that the PS/EPs fail to provide a robust framework for managing human rights risks, citing substantial gaps in substantive standards, due diligence procedures, and grievance mechanisms. Through a review of 61 project cases and an analysis using the Danish Institute for Human Rights' tool, the authors conclude that the PS/EPs do not align with international human rights norms and require significant amendment to ensure project sponsors meet their baseline responsibility to respect human rights.

• The PS/EPs are found to be insufficient for managing human rights risks because they lack robust substantive standards, adequate due diligence procedures, and minimum due process standards for grievance mechanisms.
• A review of 61 projects that generated complaints from affected communities demonstrated that internationally-financed infrastructure and extractive industry projects can adversely impact a wide range of human rights, most frequently the right to food (46 cases), property (44 cases), and life (43 cases).
• The PS/EPs largely avoid explicit references to international human rights conventions, with only limited mentions in Performance Standard 2 regarding ILO conventions, Performance Standard 1 regarding Human Rights Impact Assessments, and Performance Standard 7 regarding indigenous peoples.
• An analysis using the Danish Institute for Human Rights’ Human Rights Compliance Assessment (HRCA) tool revealed that the PS/EPs failed to comply with 329 out of 335 questions, earning a 'green light' for full compliance on only two.
• While the PS/EPs require environmental and social impact assessments, they do not explicitly require the assessment or management of risks to internationally recognized human rights, which may lead sponsors to overlook critical conditions like discrimination or restrictions on freedom of expression.
• Project-level grievance mechanisms required by the PS/EPs lack minimum substantive or procedural standards, such as requirements for independence from the project sponsor, specific time frames for resolution, or outcomes that accord with international human rights norms.

APA

Herz, S., Genovese, K., Herbertson, K., & Perrault, A. (2008). THE INTERNATIONAL FINANCE CORPORATION’S PERFORMANCE STANDARDS AND THE EQUATOR PRINCIPLES: RESPECTING HUMAN RIGHTS AND REMEDYING VIOLATIONS? Center for International Environmental Law. https://www.ciel.org/wp-content/uploads/2015/05/Ruggie_Submission.pdf

Chicago

Herz, Steven, Kristen Genovese, Kirk Herbertson, and Anne Perrault. THE INTERNATIONAL FINANCE CORPORATION’S PERFORMANCE STANDARDS AND THE EQUATOR PRINCIPLES: RESPECTING HUMAN RIGHTS AND REMEDYING VIOLATIONS? Center for International Environmental Law, 2008. https://www.ciel.org/wp-content/uploads/2015/05/Ruggie_Submission.pdf.

Wikipedia

{{cite report |last1=Herz |first1=Steven |last2=Genovese |first2=Kristen |last3=Herbertson |first3=Kirk |last4=Perrault |first4=Anne |title=THE INTERNATIONAL FINANCE CORPORATION’S PERFORMANCE STANDARDS AND THE EQUATOR PRINCIPLES: RESPECTING HUMAN RIGHTS AND REMEDYING VIOLATIONS? |publisher=Center for International Environmental Law |date=August 2008 |url=https://www.ciel.org/wp-content/uploads/2015/05/Ruggie_Submission.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{herz2008international, author = {Herz, Steven and Genovese, Kristen and Herbertson, Kirk and Perrault, Anne}, title = {{THE INTERNATIONAL FINANCE CORPORATION’S PERFORMANCE STANDARDS AND THE EQUATOR PRINCIPLES: RESPECTING HUMAN RIGHTS AND REMEDYING VIOLATIONS?}}, institution = {Center for International Environmental Law}, year = {2008}, month = aug, url = {https://www.ciel.org/wp-content/uploads/2015/05/Ruggie_Submission.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }