MICROCAPITAL BRIEF: International Finance Corporation (IFC) Signs United Nations-backed Principles for Responsible Development (PRI), Will Promote PRI Through Events in Emerging Markets

International Finance Corporation (IFC), the private-investment arm of the World Bank Group, recently signed the United Nations-backed Principles for Responsible Development (PRI), a framework that demonstrates the signatories’ commitment to integrate environmental, social and governance (ESG) factors into investment processes—including those in the microfinance industry.

In addition to signing the principles, IFC will also collaborate with some of the other 879 signatories to host events in emerging markets to promote the business case for responsible investment and will make its private equity risk management strategies available to other signatories [1].

By John Howard-Smith, Research Associate

About International Finance Corporation (IFC): A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries that drive its policies and approve disbursements. In fiscal year 2009, IFC’s new investments totaled USD 14.5 billion.

About United Nations Principles for Responsible Investment (UNPRI): The United Nations Principles for Responsible Investment (UNPRI) initiative is a network of international investors created under the auspices of the United Nations (UN) in 2005 to promote the practice of responsible investing. Based in the United Kingdom, UNPRI has put together six principles for responsible investment which focus on environment, social, and governance (ESG) principles; collaboration; and transparency. Its signatories are its members, including asset owners, investment managers and professional service partners who work in concert to promote UNPRI principles in practice. As of March 2011, UNPRI has 879 signatory investors.

[1] IFC Press Release: “IFC Becomes First Global Development Bank to Sign UN Principles for Responsible Investment, http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=97A694B1909A356B8525785C004A654E

MicroCapital.org Special Report, February 4, 2011: “MICROCAPITAL SPECIAL REPORT: “Principles for Investors in Inclusive Finance” Launched at Responsible Finance Forum in The Hague, Netherlands”, https://www.microcapital.org/microcapital-special-report-%E2%80%9Cprinciples-for-investors-in-inclusive-finance%E2%80%9D-launched-at-responsible-finance-forum-in-the-hague-netherlands/

MicroCapital.org story, November 2, 2010: “MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor), United Nations Principles for Responsible Investment Initiative Set Standards for Microfinance Investment Vehicle Environmental, Social and Governance (ESG) Performance”, https://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-united-nations-principles-for-responsible-investment-initiative-set-standards-for-microfinance-investment-vehicle-environmental-socia/

MicroCapital’s Microfinance Universe profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+(IFC)

MicroCapital’s Microfinance Universe profile: United Nations Principles for Responsible Investment (UNPRI), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=United+Nations+Principles+for+Responsible+Investment

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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