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Home , Carbon finance, Carbon footprint, Carbon neutrality, Carbon offset, Emissions trading

Carbon Neutral Commitment for IFC’s Own Operations IFC, along with the , are committed to making our internal business operations neutral by: IFC’s 1. Calculating (GHG) emissions from our operations Commitment is an integral 2. Reducing carbon emissions through both familiar and innovative conservation measures part of IFC's corporate 3. Purchasing carbon offsets to balance our remaining internal after our reduction efforts response to change.

IFC’s carbon neutrality commitment encourages continual improvement towards more efficient business operations that help mitigate . It is also consistent with IFC’s strategy of guiding our investment to address climate change and ensure environmental and social of projects that IFC finances. This factsheet focuses on the carbon footprint of our internal operations rather than the footprint of IFC’s portfolio.

IFC uses the ‘operational control approach’ for setting its CALCULATING OUR GHG EMISSIONS organizational boundaries for its GHG inventory. Emissions are included from all locations for which IFC has direct control over IFC has calculated the annual GHG emissions for its internal business operations, and where it can influence decisions that impact GHG operations for headquarters in Washington, D.C. since 2006, and for emissions. IFC’s global operations since 2008 including global business travel. IFC’s annual GHG inventory includes the following sources of The methodology IFC formally used is based on the Greenhouse Gas GHG emissions from IFC’s leased and owned facilities and air Protocol Initiative (GHG Protocol), an internationally recognized GHG travel: accounting and reporting standard. For FY19, IFC implemented a new, • Scope 1 Direct Emissions: stationary , , fuel more accurate business travel emissions calculation method called used for IFC owned vehicles ICAO calculator. • Scope 2 Indirect Emissions: used, purchased steam

and chilled for heating/cooling Since FY09, IFC has managed and collected its GHG inventory using an online data management system. The system has • Scope 3 Optional Emissions: purchased by IFC and been customized in accordance with the World Bank Group fuel used for taxis and rental (WBG)’s Inventory Management Plan (IMP). WBG’s IMP provides organization-wide information, In FY19, the latest year for which data is available, carbon including a corporate overview and goals, boundary conditions emissions from our global business operations totaled 41,571 of the inventory, emissions quantification methods, data metric tons of carbon-dioxide equivalent—of which business travel management methods, base year selection discussion, list of accounted for 75 percent. Office electricity accounted management tools, and auditing and verification processes. for an additional 22 percent— more than half of which was attributable to IFC headquarters. Over the past three years, IFC’s carbon The World Bank Group greenhouse gas emissions IMP (version emissions per full-time employee has declined by 4.7 percent to the 2019) can be downloaded at: http://documents.worldbank.org equivalent of 8.53 metric tons of per full-time employee.

CARBON EMISSIONS (CO2e) PER FULL-TIME FY19 CARBON EMISSIONS BY SOURCE EMPLOYEE: 3 YEAR TREND

9.00 8.90 8.80 8.70 8.60 8.95 8.50 8.40 8.58 8.53 8.30 FY17 (43,672 FY18 (43,025 FY19 (41,571 CO2e) CO2e) CO2e)

FY17-FY19 GHG emissions from IFC’s global internal business operations measured in metric tons of carbon dioxide equivalent

management on all devices globally, further reducing electricity. REDUCING OUR GHG EMISSIONS Renewable : IFC’s headquarters in Washington, D.C. has been 100% green Carbon Targets: power operated since 2003, through the purchase of Renewable In 2018, IFC adopted its first ever global corporate carbon Energy Credits. IFC, as part of the World Bank Group, is a emissions reduction target in line with climate science. This was partner member of the announced together with the World Bank Group-wide climate- Agency (EPA) Green Power Partnership. related commitments at COP24. IFC’s carbon target is to reduce its facility-related carbon emissions (Scope 1 and 2) by 20% between 2016 and 2026. This target is IFC’s contribution PURCHASING CARBON OFFSETS to the WBG’s commitment to reduce facility-related emissions by an average of 28% over the same timeframe. To offset our annual GHG emissions, IFC purchases a combination of Voluntary and Certified Emissions Reductions The previous 8-year trend (FY08-FY15) of emissions reductions (VERs and CERs) in accordance with guidelines developed by from electricity use conclude that IFC will meet the 20% IFC to ensure alignment with our business priorities and carbon emissions reduction target when tracking percentage change offset market trends. year over year. Calculated emissions reductions (from Scope 1 and 2) are down 21% from FY16 to FY19, however, this is due Offset project types considered include , to three offices which account for most of the reduction from energy efficiency, management and and FY18 to FY19 because of fluctuations in their data availability. Depleting Substance destruction. IFC chooses credits from While IFC is on track to meet our target; the trend thus far is projects in emerging markets, preferably in low and lower-middle skewed and not indicative of emissions reductions over the income countries. Carbon credits are typically purchased from a current 10-year target period. portfolio of projects.

Sustainable Facilities: Examples of offset purchases include and small Energy-saving projects have included installing variable in , clean cookstoves in Uganda, household frequency drives on cooling towers; installing lighting biodigester energy in Cambodia, and clean stoves and water occupancy sensors; raising chilled-water set point, adjusting treatment in Rwanda. IFC chooses projects that bring tangible building-wide heating and cooling set points, and shortening development benefits to the communities in which they take operational hours of heating, cooling, and lighting central place. control systems for the entire building. Nearly 60% of IFC’s real estate footprint (by square foot, whether leased or owned) is For more information please see: LEED certified or equivalent; HQ is LEED Platinum and • Annex 1: WBG’s Guidelines for Purchase EnergyStar certified for existing buildings. In FY19, 70 solar • Annex 2: IFC’s Carbon Offset Purchases to-date panels were added to the rooftop of 2121 Penn Ave to provide renewable power to 2100 K building and reduced energy costs AUDITING OUR GHG EMISSIONS INVENTORY by 2%. IFC annually conducts an independent third-party audit of its Corporate travel: GHG inventory and relevant FY data as part of IFC’s Annual In FY19, Business air travel accounted for 75% of IFC’s annual Report audit. In addition, the World Bank Group will periodically GHG emissions from internal business operations. To help hire a third-party reviewer of the Inventory Management Plan reduce the emissions from staff travel, IFC has invested in and the corporate GHG inventory. For example, the GHG several technological solutions that allow us to carry out the vital inventory and IMP were externally audited for FY09, FY11, functions of our business while avoiding the environmental FY13, and FY16. The FY20 audit is scheduled for spring 2021. impact of travel. These include investing in high-definition tele- presence videoconferencing centers; supporting point-to-point This information can be found in the WBG GHG Inventory desktop video conferencing; holding virtual meetings using Management Plan http://documents.worldbank.org online platforms, making staff trainings available online; and supporting remote and flexible work arrangements. VOLUNTARY REPORTING OUR GHG EMISSIONS

IT Initiatives: In 2009, IFC, as part of the World Bank Group, was the first of IFC purchases office equipment (copiers, printers, etc.) that is UN agencies and multilateral development banks to report its EnergyStar certified for energy efficiency. IFC’s managed print greenhouse gas emissions in the Carbon Disclosure Project, the service program eliminated 87% of print devices (over 1000 world’s largest database of primary corporate information on devices) and yields annual energy savings. IFC supports power climate change. IFC continues to report its GHG emissions

inventory in IFC’s Annual Corporate Report, available at www.ifc.org. IFC also reports its GHG emissions inventory as part of the Sustainable UN Initiative, Greening the Blue.

Annex 1: World Bank Group (WBG) Guidelines for Selection of Emission Reduction Offsets

Guidelines are reviewed annually to ensure alignment with WBG business priorities and emission reduction offset market trends

• Renewable energy (e.g. wind, solar, hydro, ) • Energy efficiency (e.g. fuel switching, single-to-combine cycle, cookstoves, etc.) Project Types • Forestry and (-based ) with community development impact

• Solid with community development impact • Ozone Depleting Substance destruction Project Locations Credits must come from IDA Borrowing Countries No priority order • Certified Emissions Reductions (CERs), Emissions Reduction Units (ERUs) – with additional environmental Desirable Offset and social benefits Standards1 • Pre-registration vintages under the Clean Development Mechanism (CDM) Projects meeting standards that • Gold Standard support social as • Voluntary Carbon Standard (VCS) well as • ISO 14064-2 environmental • Community Climate Standard (CCBA) benefit are given priority [*All projects are subject to due diligence by the World Bank and IFC Units, regardless of standard met*] • Direct contract with private sector project providers. WB may also enter contract agreements with public sector projects. Sourcing • Emission reduction offset exchanges, such as Markit’s RFI listings. No priority order • Emission reduction offset brokers • Projects identified by WBG Carbon Finance Units. [Joint purchases of IFC and WB are desirable, but WB’s and IFC’s purchase decisions will not be constrained by each other’s program decisions.] Unless the offset standard includes a registry to ensure proper retirement and avoid multiple sales, projects shall be required to (i) number or mark each offset with appropriate unique identification codes and, (ii) Offset Retirement show evidence of the registration of the offsets in WB name on their website. WB shall then retire the 2 Requirements credits on a public registry. The WB will post offset purchase information on its external website • Vintage: Credits should be used to offset emissions not later than five years from the calendar year in which Other Project they were generated. (example: if generated in 2007, credits can be used to offset emissions no later than Features 2012). • Additionality of the credits should be clearly documented. No priority order • Efficient purchase options with minimal transaction costs. This includes purchasing projects meeting two years’ worth of needs while maintaining competitive pricing.

1 See overview of existing market standards, next page 2 Intended to avoid double sales

• Associated benefits above emissions reductions ex: (Community benefits desirable for all project types; Biodiversity benefits desirable for land-based projects)

Overview of emission reduction credit market standards

Standard Name & Sponsors Project Criteria Registry CERs, ERUs CDM/ JI CDM CDM Pre-registration CDM -- Gold Standard CDM methodology plus satisfactory answers to the following 2 questions: Gold • Does the project use renewable energy or energy efficiency technologies? Standard Sponsored by DEFRA3, • Does the project promote ? Database REEP4 and WWF International Organization for CDM Markit Standardization 14064-2 Voluntary Carbon Standard • CDM or CA Climate Action methodology plus: Markit, (VCS) • Recognition of emission reductions generated as early as January 1st, VCS 2000 Sponsored by IETA5, Climate • Demonstration that project implementation has no negative impact on Group and the WEF6 sustainable development in the local community. • See pages 10-20 of the VCS’s Protocol & Criteria for detailed information Community Climate • Land-based projects that simultaneously address climate change, CCBA Biodiversity Standard (CCBS) support local communities, and conserve biodiversity • Promoting in project design. • Audited under the Climate, Community & Biodiversity Standards Others Others that meet the following criteria: Examples: • The standard was designed and is managed by an independent • Social Carbon organization or group of organizations. • Carbon Project • The standard has a robust governance process and is well managed: Standard o The governance process is transparent. o Independent decision makers manage the standard. o Standard provides oversight to the validators’/verifiers’ work, and ensures the work is conducted impartially and rigorously, appropriate to the requirements of the standard. • The standard is linked to a publicly accessible registry, independent of the provider, which tracks issued emission reduction credits to ensure uniqueness for each tonne. • The standard requires that projects and emission reduction claims are independently validated and verified. Validation and verification must be carried out by a suitably accredited, independent organisation. • The principles identified below are met by offset credits generated using the standard: • Independently Verified • Unique • Real • Measurable • Permanent • Additional

3 British Department for Environment, and Rural Affairs 4 Renewable Energy and Energy Efficiency Partnership 5 International Association 6

Annex 2: IFC’s Carbon Offset Purchases To-Date

FY* Project Type Country Standard Renewable Pakistan Gold Standard CDM Sachal Wind Power Project, Jhampir Energy/Wind Renewable 2020 Energy/Waste to India Gold Standard CDM Namakkal Waste to Energy Project energy Renewable Energy / Honduras Gold Standard CDM Guacamaya Hydro Power Program Small Hydro National Biodigester Programme, Gold Standard Biodigester Cambodia Cambodia Registry Small-Scale Hydropower Project Renewable Energy / Madagascar VCS APX Sahanivotry in Madagascar Small Hydro 2019 of 15 MW in Gujarat Renewable Energy Gujarat VCS APX by Palace Private Ltd. Guacamaya Hydro Power Program Renewable Energy / Guacamaya Gold Standard CDM Small Hydro Zorlu Wind, Pakistan Renewable Energy Pakistan Gold Standard VER Gyapa Stoves, Ghana Cookstoves Ghana Gold Standard VER 2018 GS Solar Cooking in Chad Cookstoves Chad Gold Standard VER VCS Sarbari Small Hydro - India Renewable Energy / Voluntary Carbon India Small Hydro Standard National Biodigester Programme, Biodigester Cambodia Gold Standard VER Cambodia (IFC) Efficient Cooking with Cookstoves Uganda Gold Standard VER Ugastoves/2014/IFC Efficient Cooking with Cookstoves Uganda Gold Standard VER Ugastoves/2015/IFC 5 MW Suman Sarwari hydro electric Renewable Energy / India VER project* (2015/IFC) Small Hydro 2017 5 MW Suman Sarwari hydro electric Renewable Energy / India VER project* (2016/IFC) Small Hydro Wind based Power Generation by Renewable Energy India VER Mytrah Energy* (2015/IFC) Wind based Power Generation by Renewable Energy India VER Mytrah Energy* (2016/IFC) Del Agua Stoves & Water Programme Cookstoves CER Rajasthan, Enercon in Rajasthan Renewable Energy Gold Standard CER India Agriculture, Isangi REDD+ Project DRC VCS, CCBS Forestry, 2016 India Delhi Metro CDM Transportation India CER (CDM) Small-Scale Hydropower Project Renewable Energy / Madagascar CER Sahanivotry Small Hydro

India CFL CDM (POA 3223) Energy Efficiency India CER Enercon Wind Farm (Hindustan) Ltd Renewable Energy India Gold Standard CER Ishasha 6.6 MW Small Hydropower 2015 Renewable Energy Uganda CER Project Household energy Efficient Cooking with Ugastoves Uganda Gold Standard VER efficiency 51 MW Wind Power Project Renewable Energy India VCS Paradigm Healthy Cookstove and Water 2014 Cookstoves Kenya Gold Standard Treatment Project 2013 LifeStrawWater Water Filters Kenya Gold Standard 2012 Rake Power Renewable Energy India VCS Composting of Organic Content of Waste Handling and 2011 Pakistan VCS Disposal Energy Industries renewable/ Amatitlan Geothermal Project Guatemala VCS nonrenewable sources Energy Industries Fuel-Switching Project from Fossil renewable/ VCS to Biomass nonrenewable sources 2010 Fuel- Saving with Improved Energy Demand Cambodia VCS Cookstoves Wastewater Treatment with Biogas Waste Handling and Technology in Tapioca Processing Plant Thailand VCS Disposal at Roi Et Flour Company Limited Energy Industries Calcining: by renewable/ utilization of waste heat from calcined India VCS nonrenewable coke production process sources Energy Industries Ceramics Manufacturers Fuel-Switching renewable/ 2009 VCS Project nonrenewable sources 2008 Andhyodaya India VCS Biodigester 2007 Precious VCS 2006 Moldsilva Afforestation Moldova VCS