Search Climate Insights Directory

The CAO audit reveals that the IFC "knows very little" about the environmental and social impacts of its financial market lending, which constitutes over 40% of its portfolio. The audit found that the IFC focuses on whether clients have management systems rather than actual outcomes, leading to a situation where approximately 60% of subclients showed non-improved performance. Furthermore, 10% of sampled clients were non-compliant with requirements, and 25% were only partially compliant or uncertain. Despite these findings, the IFC has not committed to changing its practices, suggesting the issue is one of "corporate messaging." Civil society organizations have called for a fundamental overhaul of this lending approach to increase transparency, accountability, and focus on development outcomes.