IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONSBUILDING

A BETTER FUTURE

IFC ANNUAL REPORT 2023

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCONTENTSCRITICAL FUNCTIONS
On the cover: By investing in a growth fund for promising technology startups, IFC brings job
opportunities and hope for a better future to Ukraine.
Below: An IFC investment is helping African financial technology firm M-KOPA expand financial
services to delivery drivers and other underbanked consumers in East Africa, allowing them topurchase productive assets such as smartphones and home solar-energy systems.

2 Letter from the IFC Board
4 Letter from Ajay Banga, World Bank Group President
6 Letter from Makhtar Diop, IFC Managing Director
9 Our Management Team
10 FY23 Financing and Impact Highlights

RESULTS
12 World Bank Group 2023 Summary Results
14 IFC 2023 Year in Review
18 Climate Highlights

STRATEGY IN ACTION
20 Building a Better Future
22 Innovation
34 Inclusion
40 Thought Leadership and Capacity Building

CRITICAL FUNCTIONS
44 Measuring Up
47 Sustainability
50 Accountability and Oversight
52 Diversity, Equity, and Inclusion
Additional information is available on IFC’s website:www.ifc.org/AnnualReport.

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVES
Letter from the IFC Board
Letter from Ajay Banga,
World Bank Group President
Letter from Makhtar Diop,
IFC Managing Director
Our Management TeamFY23 Financing and Impact Highlights

ABOUT IFC

IFC — a member of the World Bank Group — is the largest
global development institution focused on the private sector
in emerging markets and developing economies. We workin more than 100 countries, using our capital, mobilization
capacity, expertise, and influence to create jobs and raise
living standards, especially for the poor and vulnerable.

RESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS

In fiscal year 2023, IFC committed a record $43.7 billion to
private companies and financial institutions in developing
countries, leveraging the power of the private sector
to improve people’s lives as economies grapple with
the impacts of global compounding crises. For more
information, visit www.ifc.org.

IFC ANNUAL REPORT 2023

1

IFC 2023
ANNUAL REPORTIFC BOARDLEADERSHIP PERSPECTIVESLETTER FROM THE IFC BOARD

Letter from the IFC Board
Letter from Ajay Banga,
World Bank Group President
Letter from Makhtar Diop,
IFC Managing Director
Our Management TeamFY23 Financing and Impact Highlights
RESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONSOver the past year, the World Bank Group Executive
Directors have engaged with World Bank Group
leadership about persisting global crises and theurgent need for approaches to restore progress
toward the Sustainable Development Goals. Morethan 574 million people are projected to be living in
extreme poverty by 2030, most of them in Africa.
More broadly, nearly half the world — over 3 billion
people — lives on less than $6.85 per day. Spillover
effects from the COVID-19 pandemic, Russia’s invasionof Ukraine, and extreme climate events are among
the major issues on which the Executive Directors led
World Bank Group interventions to support countries,
including a focus on opportunities for women andyoung people. From July 2022 to June 2023, support
from the World Bank Group for developing countries
totaled $122.9 billion, including $38.6 billion from
IBRD, $34.2 billion from IDA, $43.7 billion (including
mobilization) from IFC, and $6.4 billion in guarantees
from MIGA.
At the Annual Meetings in October 2022, Development
Committee members asked the World Bank Group toreview its vision, mission, and operating and financial
models to enhance the institution’s capacity torespond to global challenges. In response, the WorldBank Group created the Evolution Roadmap, withthe aim of better addressing the scale of challenges
facing the world today. The Roadmap provides a basis
for World Bank Group management and the Board
to discuss priorities for the institution’s evolution andbegin to implement collective reform.
Led by the Boards of Executive Directors in partnershipwith management, the Evolution Roadmap gained
momentum this year. At the 2023 Spring Meetings,

Governors at the Development Committee
commended the World Bank Group for identifying
measures to increase financial capacity by roughly $50
billion over the next 10 years and discussed priorities
to further strengthen the institution for the next phaseof the Roadmap process ahead of the October 2023
Annual Meetings in Marrakech.
The important work of the Evolution comes as theWorld Bank Group continues to respond at record
pace, scale, and impact to help countries addresscompounding crises and increasingly complex
development challenges. In April 2022, the World Bank
Group outlined the Global Crisis Response Framework,
which focused on responding to food insecurity,protecting people and preserving jobs, boosting
resilience, and strengthening policies, institutions,and investments to build back better. Between April
2022 and June 2023, the World Bank Group provided
unprecedented crisis financing of $171.6 billion,
including $53.1 billion from IBRD, $51.8 billion from IDA,
$57.6 billion from IFC, and $9.1 billion in guarantees
from MIGA.
In addition to its impact on food security, Russia’s
invasion of Ukraine has exacerbated trends in energy
access, international trade, and other major sectors.
Recognizing the invasion’s potentially long-term
consequences, the Board approved several operations
to help restore and improve access to essential healthcare, provide financial protection for the Ukrainian
people, and repair Ukraine’s energy infrastructure.
To date, the World Bank Group has mobilized over
$37.5 billion in emergency financing for Ukraine,
including IBRD and IDA loans, IBRD loans guaranteedby partners, donor grants, short and long-term IFC
financing, and MIGA guarantees.

Climate action remains a crucial global priority.
The Executive Directors welcome the efforts theWorld Bank Group has made as the world’s largest
multilateral provider of climate finance for developing
countries by mobilizing more public and private
finance. The Executive Directors are encouraged that,in addition to work combining country diagnostics,
policy advice, financing, and scalable mechanisms tomobilize funding, the World Bank is on track to align100 percent of new operations with the goals of theParis Agreement from July 1, 2023. For IFC and MIGA,
85 percent of new operations will be aligned starting
July 1, 2023, and 100 percent from July 1, 2025.
The world witnessed devastating natural disasters thisyear that caused tragic losses of life and widespread
destruction. The earthquakes in Türkiye are among
the most recent events to which the World Bank
Group has responded. The Executive Directors
continue to recognize the hardships encountered infragile and conflict-affected situations around theworld, including the challenges and complexities of
migration, as discussed in this year’s World Development
Report. The Executive Directors commend the ongoingand coordinated efforts by the World Bank, IFC,
and MIGA to swiftly address fragility and disasters,
including by leveraging the IDA Private Sector Window
and Contingency Emergency Response Components
in operations. The Board also recently approved theestablishment of an IDA Crisis Facility, which will
boost support for the world’s poorest countries intackling urgent development challenges, particularly
food security and climate change.

IFC ANNUAL REPORT 2023

2

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVES
Letter from the IFC Board
Letter from Ajay Banga,
World Bank Group President
Letter from Makhtar Diop,
IFC Managing Director
Our Management TeamFY23 Financing and Impact Highlights
RESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONSIn addition to the many operations andcountry engagements the Board discussed andapproved this year, Executive Directors also
visited operations in several client countries. In
February and May 2023, Board members traveled
to Belize, Guatemala, Panama, the Republic ofCongo, and São Tomé and Príncipe. During thesemissions, the Executive Directors engaged with
key government entities, the private sector, civilsociety, and donor stakeholders and met withWorld Bank Group staff and the people who havebenefited from these operations.
As the World Bank Group’s leadership andBoards of Directors prepare for the October 2023
Annual Meetings in Marrakech, the Executive
Directors and management are moving forward
on the Evolution Roadmap. The Executive
Directors extend their sincere gratitude toDavid Malpass for his strong and steadfast
leadership of the World Bank Group through ahistorically challenging period. His commitment
to the mission, diversity and inclusion, debt
transparency and sustainability, and countrylevel development outcomes have seen theinstitution deliver record commitments fordevelopment. The Board warmly welcomes his
successor, Ajay Banga, as the 14th President of
the World Bank Group. Finally, the Executive
Directors extend their thanks to all staff for
their tireless dedication and hard work in thesechallenging times. Thanks to them, the WorldBank Group continues to make a difference in the
lives of many who deserve a life in dignity.

PHOTO OF IFC EXECUTIVE DIRECTORS
Seated (left to right):

Standing (left to right):

Erivaldo Gomes Brazil, Cecilia Nahon Argentina,

Wempi Saputra Indonesia, Parameswaran Iyer

Ayanda Dlodlo South Africa, Dominique Favre

India, Mansour Alshamali Kuwait, Michael Krake

Switzerland, Junhong Chang China — Co-Dean, Koen

Germany, Katharine Rechico Canada, Roman Marshavin

Davidse The Netherlands — Dean, Khalid Bawazier Saudi

Russian Federation, Velavan Gnanendran United Kingdom,

Arabia, Adriana Kugler United States, Matteo Bugamelli

Il-Young Park Korea, Hayrettin Demircan Türkiye,

Italy, Ernesto Acevedo Mexico, Takashi Miyahara Japan,

Naveed Baloch Pakistan, Abdoul Salam Bello Niger,

Lene Lind Norway

Arnaud Buissé France
Absent: Floribert Ngaruko Burundi

IFC ANNUAL REPORT 2023

3

IFC 2023
ANNUAL REPORTLETTER FROM AJAY BANGALEADERSHIP PERSPECTIVES

President of the World Bank Group

Letter from the IFC Board
Letter from Ajay Banga,
World Bank Group President
Letter from Makhtar Diop,
IFC Managing Director
Our Management TeamFY23 Financing and Impact Highlights
RESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS

Deeply intertwined challenges — poverty,
pandemics, climate change, debt, conflict,food insecurity, and fragility — are eroding
decades of hard-won development progress;
the world is looking to us for solutions.
Fortunately, the World Bank is built to takeon difficult challenges. To truly make adifference, we will need a greater appetite
for risk, meaningful private sector financing,
and a sense of urgency.

This urgency motivates us to write a new playbook that will drive impactful
development and lead to a better quality of life for people everywhere.
Pandemics and climate change don’t respect lines on a map. If we fail towork together to address these crises, we all lose. Our approach must be
inclusive of everyone, including women, young people, and others too often
left behind. It must be resilient to shocks, including climate and biodiversity
catastrophes, pandemics, and fragility. And it must be sustainable — througheconomic growth, human development, fiscal and debt management,
food security, and access to clean air, water, and affordable energy.
To help countries achieve these goals and address their most urgent development
needs, we offer innovative solutions that can be implemented at scale to maximize
impact. Through our knowledge and research, we help countries make informed,
impactful decisions. Central to these efforts are our partnerships and convening
power, which further extend our reach as we work to realize our shared vision.
Under the umbrella of our Evolution Roadmap, we are working tobecome a better Bank. We will become more efficient and do more in lesstime — incentivizing output, not input. Keeping focus on how many girls
are in school, how many jobs are created, how many tons of carbon dioxide
emissions are avoided, and how many private sector dollars are mobilized.
We are digging deep to boost our lending capacity, finding ways toleverage callable capital, and creating new mechanisms like hybrid capitalthat could unlock untold resources to deliver results. We want to expand
and evolve concessional financing to help more low-income countries
achieve their development goals, while thinking creatively about how to
encourage cooperation across borders and tackle shared challenges.
As we face a new era in development, we remain committed
to creating a world free of poverty on a livable planet.
Ajay Banga
President of the World Bank Group andChairman of the Board of Executive Directors

IFC ANNUAL REPORT 2023

4

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVES
Letter from the IFC Board
Letter from Ajay Banga,
World Bank Group President
Letter from Makhtar Diop,
IFC Managing Director

WE OFFER INNOVATIVE
SOLUTIONS THAT CAN BE
IMPLEMENTED AT SCALE TO
MAXIMIZE IMPACT.
THROUGH OUR KNOWLEDGE
AND RESEARCH, WE
HELP COUNTRIES MAKE
INFORMED, IMPACTFULDECISIONS.

Our Management TeamFY23 Financing and Impact Highlights
RESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONSPhoto: World Bank Group President Ajay Banga visits Jamaica’s
Kirkvine Community Council Greenhouses, June 2023.

IFC ANNUAL REPORT 2023

5

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVES
Letter from the IFC Board

LETTER FROM MAKHTAR DIOP

Letter from Ajay Banga,
World Bank Group President

IFC MANAGING DIRECTOR

Letter from Makhtar Diop,
IFC Managing Director
Our Management TeamFY23 Financing and Impact Highlights
RESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONSThis year brought a continued wave ofchallenges with global growth slowing
sharply, extreme poverty increasing,
the climate crisis intensifying, and new
conflicts emerging. As these overlapping
crises continued to intensify, IFC
responded with scale and speed. Most
importantly, we recognized that businessas usual wouldn’t do, and we raised ourambition to meet the moment.

IFC ANNUAL REPORT 2023

6

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVES
Letter from the IFC Board
Letter from Ajay Banga,
World Bank Group President
Letter from Makhtar Diop,
IFC Managing Director
Our Management TeamFY23 Financing and Impact Highlights
RESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS

And in FY23, we delivered. We made over $43 billion
in total investment commitments — the largest
volume in our history. We set a record for climate
commitments, which surpassed $14 billion. We
exceeded our gender targets. And we mobilized over
$15 billion from external partners — another record.
These are impressive numbers, but what they really
represent is jobs created, women entrepreneurs
getting access to financial services, greenhousegas emissions being slashed, and much more. Ourachievements this year also speak to how we arereshaping IFC. We have made several changes to how
we work that cut bureaucracy and empower frontline
staff to take more risks and respond to emerging
needs faster. The result? Bold interventions that
disrupt crises and drive impact.
Across the world, we are deploying our full arsenal oftools to achieve scale: setting standards, developing
innovative financial solutions, using public-private
partnerships to build sustainable infrastructure, andmobilizing capital. We are supporting the ingenuity ofentrepreneurs who form the backbone of economies
around the world — helping small businesses from
Cameroon to the Kyrgyz Republic get access tofinancing. We are focusing on the massive untapped
potential of female entrepreneurs in our efforts toaddress a more than $5 trillion financing gap for micro,
small, and medium enterprises (MSMEs).

To ensure the most vulnerable have access to food,
we launched a $6 billion Global Food Security Platform
and have worked to stabilize volatile food markets andprovide much-needed finance to companies along thefood supply chain.
In tackling global challenges — from food security to
climate change — we must bridge the gap for private
investors to access emerging markets and developing
economies by mitigating the risks of pioneering
investments. That’s why we deployed a record levelof blended concessional finance to de-risk highimpact investments, and we continue to launch new
facilities to address emerging needs in middle-income
countries. IFC now has over 30 different mobilization
vehicles, including MCCP One Planet, the world’s first
portfolio of emerging market loans aligned with theParis Agreement.
The World Bank Evolution Roadmap calls on us to
do more to address intertwined global challenges.
This year we continued retooling IFC to help unlock
innovation and deliver more sustainable private sector
solutions that lift people up. I am especially heartenedby our team, who are behind the projects andinitiatives detailed in this report. With talent, passion,and purpose on our side, I am confident that a morevirtuous cycle — one that ends poverty, protects theplanet, and creates inclusive growth — is within reach.

Photo above: Ildys Karazhieva, in the Chuy region of Kyrgyz
Republic, has relied on micro loans from Elet-Capital tosupport her business raising chickens. IFC’s loan to EletCapital is under IFC’s Base of the Pyramid program, whichhelps financial services providers deliver funding to help
MSMEs, informal enterprises, and low-income households.

Makhtar Diop
Managing Director

IFC ANNUAL REPORT 2023

7

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVES
Letter from the IFC Board
Letter from Ajay Banga,
World Bank Group President
Letter from Makhtar Diop,
IFC Managing Director
Our Management TeamFY23 Financing and Impact Highlights
RESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONSWE ARE CONTINUINGTO RETOOL IFC TO HELPUNLOCK INNOVATION
AND DELIVER MORESUSTAINABLE PRIVATESECTOR SOLUTIONSTHAT LIFT PEOPLE UP.
Photo: Ngo Thi Xuyen harvests peppercorns
on a farm in Vietnam. An IFC partnership with
McCormick & Co. is helping build a more sustainable,
traceable, certified, and quality-compliant pepper
supply chain through capacity development and theempowerment of women farmers.

IFC ANNUAL REPORT 2023

8

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVES
Letter from the IFC Board
Letter from Ajay Banga,
World Bank Group President
Letter from Makhtar Diop,
IFC Managing Director
Our Management TeamFY23 Financing and Impact Highlights

OUR
MANAGEMENT
TEAM

Makhtar Diop
Managing Director

RESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS

IFC’s leadership develops corporate strategies
and policies and oversees the effective
deployment of our resources. Our main focus
is on maximizing development impact andmeeting client needs. IFC’s Management
Team brings together years of development
experience, a broad array of expertise, andcomplementary cultural perspectives.

Elena Bourganskaia

Hela Cheikhrouhou

Federico Galizia

John Gandolfo

Mohamed Gouled

Vice President,
Corporate Support

Regional Vice President,
Middle East, Central Asia,
Türkiye, Afghanistan, andPakistanVice President,
Risk and Finance

Vice President andTreasurer

Vice President,
Industries

Susan M. Lund

Alfonso Garcia Mora

Mary-Jean Moyo

Ramit Nagpal

Emmanuel Nyirinkindi

Vice President,
Economics and Private
Sector Development

Regional Vice President,
Europe, Latin America
and the Caribbean

Chief of Staff

Vice President andGeneral Counsel

Vice President,
Cross-Cutting Solutions

Sérgio Pimenta

Riccardo Puliti

Regional Vice President,
AfricaRegional Vice President,
Asia and the Pacific

IFC ANNUAL REPORT 2023

9

IFC 2023
ANNUAL REPORTIFC FY23: REACHING NEW HEIGHTSLEADERSHIP PERSPECTIVES
Letter from the IFC Board
Letter from Ajay Banga,
World Bank Group President
Letter from Makhtar Diop,
IFC Managing Director
Our Management TeamFY23 Financing and Impact Highlights
RESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS

43.7B

$

in total investment commitments

CLIMATE$14.4Bin climate financing

TRADE AND SUPPLY CHAIN$12.0 Bin short-term finance68%

was committed in IDA and fragile
and conflict-affected economies

IFC ANNUAL REPORT 2023

10

IFC 2023
ANNUAL REPORTHIGHLIGHTS OF ANTICIPATED IMPACT FROM FY23 PROJECTSLEADERSHIP PERSPECTIVES
Letter from the IFC Board
Letter from Ajay Banga,
World Bank Group President
Letter from Makhtar Diop,
IFC Managing Director
Our Management TeamFY23 Financing and Impact Highlights
RESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS

11.5M TONS

2.2–3.1M

2.2M

GHG emissions reduction of
CO2 equivalent each year

Estimated number of direct,
indirect, and induced jobs created 1

Number of additional outstanding
MSME loans, of which 1.4 million
are to women$11.2B

496K

34.5M

Volume of additional
trade finance supported

Additional farmers reached

Number of additional direct
fixed/mobile internet connections

1. Employment estimates are computed for individual projects using IFC’s economic impact estimation framework. The framework comprises
sector-specific models and a variety of assumptions across countries and sectors. For financial intermediaries, the estimate includes on-lendingof IFC funds only. Client banks’ portfolios grow more than the IFC funding alone, partly because IFC’s contribution catalyzes additional funding
and partly because the growth is contractually agreed with IFC. This additional expansion, which is hard to attribute precisely, could represent thecreation of several million jobs.

IFC ANNUAL REPORT 2023

11

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSWorld Bank Group 2023
Summary Results
Global CommitmentsWORLD BANK GROUP
2023 SUMMARY RESULTS

The Institutions of theWorld Bank GroupWorld Bank Group Financing
for Partner Countries

IFC 2023 Year in Review
Financial Highlights
Operational Highlights
FY23 Long-Term Commitments
FY23 Portfolio Exposure
IFC’s Largest Country Exposures
FY23 Long-Term Commitments byEnvironmental andSocial Category

GLOBALCOMMITMENTS
In fiscal 2023, the World Bank Group
provided much-needed financing;conducted data collection, in-depth
analysis, and research; and partneredwith governments, the private sector, andother institutions to support countries’
development and address global challenges.

$128.3B(BILLION)

FY23 Advisory Services
Program Expendituresin loans, grants, equity investments, and guarantees
to partner countries and private businesses

Climate Highlights
STRATEGY IN ACTIONCRITICAL FUNCTIONS

Total includes multiregional and global operations. Regional breakdowns reflect World Bank country classifications.

EAST ASIA AND
THE PACIFICEUROPE AND
CENTRAL ASIA

LATIN AMERICA AND
THE CARIBBEAN

MIDDLE EAST AND
NORTH AFRICA

SOUTH
ASIA

SUB-SAHARAN
AFRICA$13.0B$36.2B$18.2B$6.8B$15.4B$38.6B(BILLION)(BILLION)(BILLION)(BILLION)(BILLION)(BILLION)IFC ANNUAL REPORT 2023

12

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSWorld Bank Group 2023
Summary Results
Global Commitments
The Institutions of theWorld Bank GroupWorld Bank Group Financing
for Partner Countries

IFC 2023 Year in Review
Financial Highlights

The Institutions of
the World Bank Group
The World Bank Group is one of the world’s
largest sources of financing and knowledge
for developing countries. It consists offive institutions that share a commitment
to reducing poverty, increasing sharedprosperity, and promoting sustainablegrowth and development.

FY23 Portfolio Exposure
IFC’s Largest Country Exposures
FY23 Long-Term Commitments byEnvironmental andSocial Category
FY23 Advisory Services
Program Expenditures

Climate Highlights
STRATEGY IN ACTIONCRITICAL FUNCTIONS

By fiscal year, millions of dollars

2023

2022

2021

2020

2019

Commitments 1

128,341

104,370

98,83083,547

68,105

Disbursements 2

91,391

67,04160,59654,36749,395

Commitments 3

38,57233,07230,523

27,97623,191

Disbursements

25,504

28,16823,691

20,23820,182

World Bank Group

IBRD

International Bank for Reconstruction
and Development (IBRD)

IDA
Commitments 3, 4

34,24537,72736,02830,36521,932

Lends to governments of middle-income andcreditworthy low-income countries.

Disbursements 427,71821,21422,921

21,17917,549Operational Highlights
FY23 Long-Term Commitments

World Bank Group Financing for Partner Countries

IFC

International Development Association (IDA)

Commitments 527,70422,22920,66917,604

14,684

Provides financing on highly concessional terms togovernments of the poorest countries.

Disbursements

18,68913,198

11,43810,518

9,074

6,446

4,935

5,199

3,961

5,548

Commitments

21,374

6,407

6,411

3,641

2,749

Disbursements

19,480

4,461

2,546

2,433

2,590

MIGA

International Finance Corporation (IFC)

Gross issuance

Provides loans, guarantees, equity, advisory services,and project development services and mobilizes capitalfrom other sources to grow private sector investment
in developing countries.

Recipient-Executed Disbursing AccountMultilateral Investment
Guarantee Agency (MIGA)
Provides political risk insurance and credit
enhancement to investors and lenders to facilitate
foreign direct investment in emerging economies.

International Centre for Settlementof Investment Disputes (ICSID)

1. Includes IBRD, IDA, IFC, Recipient-Executed Disbursing Account (REDA) commitments, and MIGA gross issuance. REDA commitments
include all recipient-executed grants.
2. Includes IBRD, IDA, IFC, and REDA disbursements.
3. Amounts are net of full terminations and cancellations relating to commitments approved in the same fiscal year.
4. Commitments and disbursements exclude IDA-IFC-MIGA Private Sector Window (PSW) activities.
5. Includes long-term commitments for IFC’s own account and short-term finance commitments. Does not include funds mobilized fromother investors.

Provides international facilities for conciliation,
mediation, and arbitration of investment disputes.

IFC ANNUAL REPORT 2023

13

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSWorld Bank Group 2023
Summary Results
Global Commitments

IFC 2023
YEAR IN REVIEWThe Institutions of theWorld Bank GroupWorld Bank Group Financing
for Partner Countries

IFC 2023 Year in Review
Financial Highlights

IFC operations are guided by our Board-approved IFC 3.0 strategy and the
IFC Strategy and Business Outlook Update FY23–25.

Operational Highlights
FY23 Long-Term Commitments

Financial Highlights

FY23 Portfolio Exposure

Dollars in millions, as of and for the years ended June 30

IFC’s Largest Country Exposures

2023

2022

2021

2020

672

$ (464)

–

–

4,209

$(1,672)

213

–

672

–

(464)

4,422

(1,672)

93

FY23 Long-Term Commitments byEnvironmental andSocial Category

Net income (loss)

FY23 Advisory Services
Program Expenditures

Total assets$ 110,547$99,010$ 105,264$95,800$99,257

Investments

51,50244,09344,991

41,13843,462

104%$

Grants to IDA
Income (loss) before grants to IDA

$

2019
$

93

Climate Highlights

Key Financial Ratios

STRATEGY IN ACTION

Overall liquidity ratio

104%

111%

114%

96%

Debt-to-equity ratio

1.6

1.6

2.1

2.2

2.2

Capital available ($ in billions)

34.8

32.5

30.7

28.2

27.8

Capital required ($ in billions)

21.1

20.1

20.5

20.3

21.8

60.7%

62.0%

66.6%

72.1%

78.4%

3.7%

4.4%

4.9%

6.3%

4.7%

CRITICAL FUNCTIONSCapital utilization ratio

1

Total reserve against losses on loans tototal disbursed portfolio

1. Starting in FY22, IFC began using Capital Utilization Ratio (CUR), defined as (Capital Required divided by Capital Available), as ameasurement of capital adequacy under IFC’s updated capital adequacy framework. The CUR replaces the previous Deployable Strategic
Capital (DSC) ratio. CUR and DSC ratio have a one-to-one mapping expressed as (CUR = 90% – DSC ratio).

IFC ANNUAL REPORT 2023

14

IFC 2023
ANNUAL REPORT

Operational Highlights
Dollars in millions, for the years ended June 30

LEADERSHIP PERSPECTIVES
2023

2022

2021

2020

2019

$43,728$33,592$ 31,803$28,616$25,520$16,677$ 12,569$ 12,474$ 11,135$ 8,920

Number of projects

325

296

313

282

269

Number of countries

78

68

71

67

65

$15,029$ 10,596$ 10,831$ 10,826$ 10,206

Syndicated loans$ 5,492$ 3,475$ 3,647$ 4,989$ 5,824

IFC initiatives & other$ 5,810$ 3,311$ 3,693$ 3,370$ 2,857

Asset Management Company (AMC) Funds

$

$

$

$

$

Advisory Mobilization3$ 3,712$ 3,562$ 3,246$ 2,417$ 1,137$31,705$23,166$23,305$21,961$19,126

For IFC’s own account 4$11,027$ 9,659$ 8,195$ 6,469$ 5,764

IFC’s Largest Country Exposures

Mobilization

$

$

$

$

$

FY23 Long-Term Commitments byEnvironmental andSocial Category

TOTAL SHORT-TERM INVESTMENT COMMITMENTS$12,023$ 10,426$ 8,498$ 6,655$ 6,394

For IFC’s account$18,689$13,198$11,438$10,518$ 9,074

Syndicated loans$ 2,443$ 2,589$ 1,309$ 2,231$ 2,510TOTAL INVESTMENT DISBURSEMENTS$21,132$15,787$12,747$12,749$11,584

RESULTSWorld Bank Group 2023
Summary Results
Global Commitments
The Institutions of theWorld Bank GroupWorld Bank Group Financing
for Partner Countries

IFC 2023 Year in Review
Financial Highlights
Operational Highlights
FY23 Long-Term Commitments
FY23 Portfolio Exposure

FY23 Advisory Services
Program Expenditures

Climate Highlights

Investment Commitments 1
Long-Term Investment Commitments
FOR IFC’S OWN ACCOUNTMOBILIZATION 2TOTAL LONG-TERM INVESTMENT COMMITMENTS

14

248

244

50

388

Short-Term Investment Commitments
996

767

303

186

630

Investment Disbursements

Portfolio Exposure 5

1. Investment Commitments include Long-Term Investment
Commitments and Short-Term Investment Commitments.
2. Defined as “core mobilization” — non-IFC financing or risk
sharing arranged on commercial terms due to the active anddirect involvement of IFC for the benefit of a client. Excludes$1,128 million of unfunded risk transfers that are accounted forunder IFC’s own account.
3. Advisory Mobilization includes third-party private financingthat has been mobilized for public-private partnerships, as aresult of IFC’s role as lead transaction advisor. It also includes
Corporate Finance Services, for projects in which IFC has provided
transaction advisory services to help private sector clients expand
into new markets, diversify and restructure operations, or bring in
new equity investors.

STRATEGY IN ACTION

Number of firms

1,928

1,848

1,822

1,880

1,930

CRITICAL FUNCTIONSFor IFC’s account$70,069$ 63,763$ 64,092$ 58,650$ 58,847

Syndicated loans$15,312$ 15,235$ 15,658$ 16,161$ 15,787

TOTAL PORTFOLIO EXPOSURE$85,381$ 78,998$ 79,750$ 74,811$ 74,635

5. Portfolio exposure is defined as the sum of the (i) committed
exposure for IFC’s debt investments, (ii) fair market value of
IFC’s equity investments, and (iii) total undisbursed equity
commitments.

$ 260.2$ 250.6$ 244.0$ 274.4$ 295.1

54%

51%

54%

57%

59%

6. All references in this report to percentages of advisory program
expenditures in IDA countries and fragile and conflict-affectedareas exclude global projects.

Advisory Services
Advisory Services program expenditures
Share of program in IDA countries6

4. Short-Term Finance includes Global Trade Finance Program (GTFP)and Global Trade Supplier Finance Program (GTSF).

IFC ANNUAL REPORT 2023

15

IFC 2023
ANNUAL REPORT

Fy23 Long-Term Commitments

Fy23 Portfolio Exposure 4

Dollar amounts in millions, for IFC’s own account as of June 30, 2023

Dollar amounts in millions, for IFC’s own account as of June 30, 2023

LEADERSHIP PERSPECTIVESRESULTSWorld Bank Group 2023
Summary Results
Global Commitments
The Institutions of theWorld Bank GroupWorld Bank Group Financing
for Partner Countries

IFC 2023 Year in Review

TOTAL$16,677

100%

By Industry

FY23 Long-Term Commitments$70,069

100%

By Industry

Financial Markets$ 8,60251.58%

Financial Markets$26,986

39%

Infrastructure$ 2,447

14.67%

Infrastructure$10,146

14%

Manufacturing$ 1,519

9.11%

Funds

$ 6,929

10%

Agribusiness & Forestry$ 1,100

6.60%

Manufacturing$ 5,240

7%

Funds

$

990

5.94%

Tourism, Retail & Property$ 4,210

6%

Tourism, Retail & Property

$

765

4.59%

Agribusiness & Forestry$ 4,075

6%

Telecommunications & Information Technology

$

747

4.48%

Health & Education$ 3,901

6%

Health & Education

$

505

3.03%

Telecommunications & Information Technology$ 3,7785%

Natural Resources 1

$

2

0.01%

Trade Finance$ 3,5445%

Natural Resources 1$ 1,260

2%

Financial Highlights
Operational Highlights

TOTAL

By Region
Latin America and the Caribbean$ 3,88523.29%

By Region 5

Africa$ 3,755

22.52%

Africa$15,04221%

FY23 Portfolio Exposure

East Asia and the Pacific$ 2,439

14.63%

Latin America and the Caribbean$14,688

21%

IFC’s Largest Country Exposures

Europe$ 2,190

13.13%

East Asia and the Pacific$12,91018%

FY23 Long-Term Commitments byEnvironmental andSocial Category
FY23 Advisory Services
Program Expenditures

South Asia

$ 2,130

12.77%South Asia

$ 9,005

13%

Central Asia and Türkiye$ 1,784

10.70%

Europe$ 5,615

8%Middle East

$

413

2.48%

Central Asia and Türkiye$ 5,3878%

Global

$

81

0.49%

Global$ 5,1117%

Middle East

$ 2,312

3%

By ProductClimate Highlights

Loans 2

$ 14,135

84.76%

By Product

STRATEGY IN ACTION

Equity$ 1,761

10.56%

Loans 2

$49,713

71%

Guarantees

$

704

4.22%

Equity 3$14,760

21%

Risk-management products

$

76

0.46%

Guarantees$ 5,145

7%

Risk-management products$

1%

CRITICAL FUNCTIONS

3

1. Includes IFC’s activities in oil, gas, and mining.
2. Includes loan-type, quasi-loan products.
3. Includes equity-type, quasi-equity products.

451

4. Portfolio exposure is defined as the sum of the (i) committed
exposure for IFC’s debt investments, (ii) fair market value of
IFC’s equity investments, and (iii) total undisbursed equity
commitments.
5. Excludes individual country shares of regional and global projects.

IFC ANNUAL REPORT 2023

16

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSWorld Bank Group 2023
Summary Results

IFC’s Largest Country
Exposures6

Fy23 Advisory Services
Program Expenditures

As of June 30, 2023 (Based on IFC’s account)

Dollar amounts in millions

PORTFOLIO EXPOSURE7($ MILLIONS)% OF GLOBAL PORTFOLIO

1 India$ 7,284

10.40%

By Region

2 Brazil$ 5,600

7.99%

3 Türkiye$ 4,650

6.64%

4 China$ 3,711

5.30%

5 South Africa$ 3,234

6 Colombia$260.2100%

Africa$ 98.538%

East Asia and the Pacific$ 34.213%

Global$ 31.712%

4.62%

Latin America and the Caribbean$ 26.710%$ 2,348

3.35%

South Asia

$ 22.69%

7 Vietnam$ 2,187

3.12%

IFC 2023 Year in Review

Europe$ 21.28%8 Indonesia$ 2,171

3.10%

Middle East

$ 13.1

5%

Financial Highlights

9 Nigeria$ 2,021

2.88%

Central Asia and Türkiye$ 12.3

5%

10 Romania$ 1,7292.47%$171.866%

Financial Institutions Group

69.5

27%

Transaction Advisory

42.8

16%

Manufacturing, Agribusiness & Services

37.3

14%

Infrastructure & Natural Resources

17.1

7%

Disruptive Technologies & Funds

5.2

2%

Creating Markets Regional Advisory$ 54.7

21%

Other Advisory, including Environment, Social & Governance$ 33.7

13%

Global Commitments
The Institutions of theWorld Bank GroupWorld Bank Group Financing
for Partner Countries

Operational Highlights
FY23 Long-Term Commitments
FY23 Portfolio Exposure

GLOBAL COUNTRY RANKBy Business Area

6. Excludes individual country shares of regional and global projects.
7. Portfolio exposure is defined as the sum of the (i) committed exposure for IFC’s debt investments, (ii)fair market value of IFC’s equity investments, and (iii) total undisbursed equity commitments.

IFC’s Largest Country Exposures
FY23 Long-Term Commitments byEnvironmental andSocial Category
FY23 Advisory Services
Program Expenditures

Climate Highlights
STRATEGY IN ACTIONCRITICAL FUNCTIONS

Fy23 Long-Term Commitments byEnvironmental and Social Category
CATEGORYCOMMITMENTS($ MILLIONS)TOTALAdvisory in IFC Industries

NUMBER OF
NEW PROJECTSA$ 1,1549B$ 5,683

106

C

$

142

29

FI 8

$

6

0

FI-1

$

572

5

FI-2

$ 7,122126

FI-3$ 1,998

50

TOTAL$16,677325

8. FI category applies to new volume commitments on previously existing projects.
Visit www.ifc.org/escategories for information on category definitions.

IFC ANNUAL REPORT 2023

17

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSWorld Bank Group 2023
Summary Results
Global Commitments
The Institutions of theWorld Bank GroupWorld Bank Group Financing
for Partner Countries

IFC 2023 Year in Review
Financial Highlights
Operational Highlights
FY23 Long-Term Commitments
FY23 Portfolio Exposure
IFC’s Largest Country Exposures
FY23 Long-Term Commitments byEnvironmental andSocial Category
FY23 Advisory Services
Program Expenditures

Climate Highlights
STRATEGY IN ACTIONCRITICAL FUNCTIONSCLIMATE HIGHLIGHTS
Efforts to combat climate change will not succeed
without massive increases in private capital flows
to emerging markets and developing economies,
which represent more than 60 percent of global
decarbonization investment needs.
In FY23, IFC committed a record $14.4 billion in climate
finance, mobilizing $6.8 billion of additional capitalalongside our own investment of $7.6 billion to
help client countries address the climate crisis. This
represented a record 46 percent of the total of longterm investments for our own account. Our work
accelerates an inclusive transition by catalyzing green
growth, supporting private companies to decarbonize
and manage risks, and supports societies adapting to awarmer planet. As a result, we help create markets
and jobs so that countries continue to reduce poverty
and improve living standards while increasing
resilience and shifting to a low-carbon world.

As of July 1, 2023, 85 percent of all new investments will
be consistent with the goals of the Paris Agreement,
increasing to 100 percent by July 1, 2025. This meansthat we will now factor climate change mitigation andadaptation into all investment decisions. For example,
if we are financing a new manufacturing facility, ourteams will engage with the client to identify possible
low-carbon and commercially viable solutions. We will
also assess measures that could be taken to reduce
possible climate risks expected in that location — for
instance by installing drainage systems to protectfrom intense rainfall or mitigating impacts of extreme
heat events on employees and equipment.
We mobilize every tool at our disposal to increase
our impact — from co-investment platforms andadvice for clients to blended finance and publicprivate partnerships. Our role also goes beyond ourinvestments. We contribute to the World Bank Group’s
Country Climate and Development reports, which
diagnose how each country’s development goals
can also help reduce carbon emissions and increase
resilience. And we play an important standard-settingrole in a range of markets. In FY23, we launched the
Biodiversity Finance Reference Guide, a practical guidefor investors interested in commercial transactions
that address the loss of nature and biodiversity, andGuidelines for Blue Finance, to unlock the potential of
the ocean economy.

BLUE ECONOMYPROJECT: Companhia de Saneamento Básico
de Estado de São Paulo (SABESP)Reducing the discharge of untreated effluent
in Brazil’s Pinheiros River.
IFC FINANCING: $150 million

66,000 TONS

annually of methane emissions reduction,equivalent to 5.5M tons annually of GHG over a
20-year time frame

Photo: Community programs in the São Paulo neighborhood
Vila das Pratas teach children about climate and cleanwater. More than 7,000 homes in the region now have basic
sanitation thanks to the Pinheiros River clean-up.
IFC ANNUAL REPORT 2023

18

IFC 2023
ANNUAL REPORTCAPITAL MARKETSLEADERSHIP PERSPECTIVESGREEN HOUSING AND
THE BUILT ENVIRONMENTRESULTSPROGRAM: EDGEWorld Bank Group 2023
Summary Results

Contributing to more than 60 million greencertified square meters in buildings worldwide andresulting in 1.3 million tons in annual GHG savings.

Global Commitments
The Institutions of theWorld Bank GroupWorld Bank Group Financing
for Partner Countries

IFC 2023 Year in Review
Financial Highlights
Operational Highlights
FY23 Long-Term Commitments

SUSTAINABLE FORESTRYPROJECT: Suzano S.A., Brazil

Brazil’s first fossil-fuel-free pulp mill.

FY23 Long-Term Commitments byEnvironmental andSocial Category
FY23 Advisory Services
Program Expenditures

Climate Highlights
STRATEGY IN ACTIONCRITICAL FUNCTIONS

square meters of green buildings
certified in FY23

IFC FINANCING: $99 million equivalent in Polish zloty$5.4 B

invested by IFC in labeled sustainable bonds
in FY23

IFC FINANCING AND MOBILIZATION: $1.5 billion

180 MW

of surplus renewable energy fed into thegrid and 3,000 jobs created

REDUCING EMISSIONS IN
KEY INDUSTRIAL SECTORSPROJECT: Sococim, Senegal

Low-carbon cement production.
IFC FINANCING AND MOBILIZATION: €242 million

FY23 Portfolio Exposure
IFC’s Largest Country Exposures

15 M

PROJECT: Cyfrowy Polsat S.A.
Poland’s first corporate sustainability-linked
bond to support company’s shift into renewableenergy and green hydrogen.

MOBILITY
PROJECT: Green Vehicle Fleet for ALD Automotive
Affordable electric vehicle (EV) and hybrid
leases in seven countries where the EV market
is in its infancy.
IFC FINANCING: $400 million

15,000hybrid and electric vehicles added
to the leasing market

300,000 TONS
annually of GHG emissions
reduction by 2030

ENERGY TRANSITIONPROJECT: AMEA Power, Egypt
A windfarm and a solar park that together will bringelectricity to 1 million Egyptians at the lowest prices
in Africa (2 US cents/kilowatt hour for solar and 3 US
cents/kilowatt hour for wind).
IFC FINANCING AND MOBILIZATION: $770 million

1.7M TONS

annually of GHG emissions reduction
NEW TECHNOLOGY INNOVATIONGREEN BONDS
PROJECT: BOSTON METAL

Commercialization of steel-production process
free of CO2 emissions and extraction of highvalue metals from mining waste.
IFC EQUITY INVESTMENT: $20 million

ZEROcarbon steel-production technology

PROJECT: DCM JKB Green Bond
Jordan’s first green bond.
IFC FINANCING: $50 million, including blended financeco-investments

285

Emerging market financial institutions across
70+ countries trained on labeled sustainablebonds by IFC, resulting in the issuance of over
$10B in labeled bonds
IFC ANNUAL REPORT 2023

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IFC 2023
ANNUAL REPORTSTRATEGY IN ACTIONLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION
Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time
Affordable Housing: Filling the Gap

BUILDING

A BETTER FUTURE

Working within the World Bank Group, IFC is the largest global
development finance institution focused on mobilizing private sector
solutions to achieve a world free of poverty on a livable planet. At atime of unprecedented global challenges, we are raising our private
capital mobilization, investment, and advisory services to new levels,
harnessing the potential of the private sector to deliver meaningful
impact for the people and places that need it most.
In our work, we focus on solutions that are innovative, inclusive, andequip leaders with knowledge and skills to address development
challenges. The summaries that follow highlight some of our mostimpactful work in FY23.

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSIFC ANNUAL REPORT 2023

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION
Building a Better Future
Innovation

Photo: Mamounata Velegda is one of Burkina Faso’s mostsuccessful women entrepreneurs. She owns a flourishingcereal, nuts, and rice-processing factory in Ouagadougou.
With support from IFC client Coris Bank International, she
has developed a thriving business and created employment
opportunities for over 300 individuals and empowered
numerous women across the country with starter kits
for their retail businesses. Her latest venture involves aninvestment of 5 billion CFA to establish a cutting-edge
rice-processing facility, aiming to position Burkina Faso
as a leading regional rice producer.

Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time
Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSIFC ANNUAL REPORT 2023

21

IFC 2023
ANNUAL REPORTSTRATEGY IN ACTIONLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION
Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical TimeINNOVATION
Simplifying our internal business processes this year allowed us
to do more than ever — moving faster, working more flexibly,
and taking on more risks.
In today’s challenging global conditions, we must open our
minds to new ways of doing business. We are supporting
innovative business models that drive the development
outcomes governments desire but cannot achieve with
their own resources.
Breaking new ground means working with new clients andpartners, engaging early in the process, experimenting withnew tools and approaches, and sometimes mitigating risks
with blended finance. But these are risks that must be taken.
They allow us to find opportunities amid the challenges,
proving the business case time and again for others to follow.

Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSPhoto: Ukraine’s tech firms area pillar of the economy — and a
key focus of IFC’s commitment
to keeping the economy going.
IFC ANNUAL REPORT 2023

22

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION
Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time
Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSUKRAINE:INVESTING IN
ENTREPRENEURS
Keeping Ukraine’s economy moving amid the impact of Russia’s invasion
requires a concerted international effort. This effort must go well beyond
the military aid dominating the headlines. Businesses need to continue
to provide goods and services, and people need to earn a living. IFC is
helping to sustain Ukraine’s private sector, including through a targeted
investment to help the country’s strong technology sector retain its
momentum and keep 285,000 specialized workers employed.
The World Bank Group is deeply committed to financing large-scalerelief and recovery efforts in Ukraine, combining public sector support
through the World Bank’s multi-donor coordination PEACE project
for the government with IFC’s Economic Resilience Action Program.
IFC’s $2 billion support package includes trade finance, help forreconstructing the critical energy sector, financing for agribusinesses
and women-owned enterprises, and more.
IFC has signaled its commitment to Ukraine’s private sector throughits $60 million investment in Horizon Capital Growth Fund IV. IFC is
the largest investor in the fund, which is supporting the tech industry
and accelerating the growth of private equity markets in Ukraine andMoldova. It aims to support visionary entrepreneurs “who dare to bebold,” according to founding partner and CEO Lenna Koszarny.
Ukraine’s private sector is the backbone of the country’s economy,
providing goods, services, and jobs. The tech sector in particular has
shown remarkable resilience during the last year. It was the country’s
only export industry to expand in 2022, a time when overall GDP shrankby nearly 30 percent. But the ongoing instability is a major deterrent to
Ukraine’s growth, making continued access to growth capital essential
for leading companies. IFC’s investment in Horizon Capital Fund helped
it exceed its $250 million target in a high-risk environment, mobilizing
approximately $80 million from other development finance institutions.

Ketevan
Liparteliani
Investment Officer,
IFC, Paris“It was probably the point when I fullyinternalized IFC’s mission and why weexist, and the power the World Bank Group
has to be a game changer.”
Ketevan Liparteliani led IFC’s team investing in
Horizon Capital Growth Fund IV for Ukraine.
Working tirelessly in the months after Russia’s
invasion of Ukraine, she organized a groupof other development finance institutions toparticipate alongside IFC, just in time for an initialclosing in London in September 2022.
Ukraine’s President Volodymyr Zelensky
attended the ceremony via video link, showing
appreciation for all the investor group’s
efforts. He also attended a follow-up eventin Kyiv in April 2023, where the IFC-backed
Horizon Capital Fund announced it had raisedeven more money than expected to invest in
growing Ukrainian tech firms — supporting
job opportunities at a critical time.

IFC ANNUAL REPORT 2023

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION

JAMAICA:THE POWER OF
PUBLIC-PRIVATE PARTNERSHIPS

Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time
Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy

Following a deep recession in the wake of the
COVID-19 pandemic, Jamaica’s economy is on
the upswing. The leaders of the island nation
have a vision to spur future growth with criticalinfrastructure such as roads and reliable andaffordable internet, and they are turning to IFC tohelp realize their ambition of attracting $1.5 billionof new private investment in infrastructure
through public-private partnerships (PPPs).
PPPs are a proven tool for enhancing limited publicresources with significant new injections of private
capital, expertise, and innovation. IFC is well-placed
to provide guidance — having advised on and closed
more than 160 PPP projects globally since 2014.
Jamaica’s north coast is home to pristine beaches
sought after by travelers across the world, buttraffic congestion has become so bad that tourists,commercial deliveries, and residents frequently
get stuck in gridlock. IFC is now the government’s
lead adviser in organizing a competitive tender toattract a private operator that will finance, expand,and operate three important road segments on theisland’s north coast.

“We are looking at one stretch of road, for example,
that should just take 20 minutes to travel, butduring peak hours you can sit in traffic for up to
two hours,” says Michelle Ottey, IFC lead on PPP
Transaction Advisory in the Caribbean. “Consider
how challenging this is for business, for visitors, andfor everyday life along that northern corridor.”
The approximately $600 million project will help
reduce travel time, improve safety, support tourism,
and open access to new areas for development.
Similarly, Jamaica’s digital highways need an
upgrade. The government plans to install a national
broadband network to improve internet reliability
and bring costs down, as currently the monthly
online subscription price represents more than
10 percent of Jamaica’s GDP per capita each month.
For this project too, the government has mandated
IFC to advise on bringing in private investors.
“The work we are doing has an impact that canpotentially change the Jamaican economy’s
profile,” says Ottey. “Road networks areimportant to everyday citizens and tourism. The
national broadband network would support the
government’s digital transformation initiatives.
Now is the time to help Jamaica bring in moreprivate investment to make these projects a reality.”

The Honorable

Nigel
Clarke, DPhil., MP
Jamaica’s Minister ofFinance and the
Public Service“As a transaction advisor with a developmentbias, IFC, the private sector arm of the World
Bank, has unparalleled global expertise.
The opportunities are ripe to partner withthem to bring to market, possibly, highway,
broadband, healthcare, water, sanitation, andother infrastructure projects.”

Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSIFC ANNUAL REPORT 2023

24

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION

TRADE FINANCE:MITIGATING RISK AND
MAXIMIZING FINANCING

Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time
Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy

When commerce stalls, economies suffer. But through financial innovation,
IFC is greasing the wheels of trade in emerging markets to reignite
economic growth.
Our landmark $50 million guarantee agreement with BNP Paribas, France’s
largest bank, exemplifies this approach. By backing $1 billion of BNP Paribas’
trade finance portfolio, IFC provided a crucial risk buffer so the bank could
rapidly expand lending to importers and exporters across developing regions.
Trade finance oils the machinery of international commerce by mitigating
payment risks inherent to cross-border transactions. But uncertain
conditions have hindered trade financing flows, constraining growth inemerging economies.
That’s why IFC leveraged its AAA credit rating to guarantee BNP Paribas’ tradefinance risks, freeing up capital for new lending. This synthetic risk transfer
structure, widely used in advanced markets, extends a vital financing tool toeconomies with limited short-term credit access. With risk coverage from
IFC, BNP Paribas can now finance billions in new trade annually, allowing
businesses to thrive and catalyzing multiplier effects across markets.
In this way, trade finance is central to turning the wheels of global commerce.
By innovating to expand trade finance through partnerships like ours with BNPParibas, IFC is supporting prosperity worldwide. Our guarantee agreement
frees up capital to facilitate trade flows, keeping the engine of emerging
economies running through uncertain terrain.
Photo: Bangladesh’s garment sector employs more than 3 million women. A partnership
between IFC and Levi Strauss & Co. helps factories identify and implement cleaner andmore resource-efficient production options.

Capital Markets: Training the Next
Generation of Leaders

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION
Building a Better Future

DRIVING ADOPTION OF

ELECTRICVEHICLES IN
INDIAInnovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time
Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building

With transport standing as the fastest-growing
contributor to climate change, it is no longer aquestion of whether electric vehicles (EVs) should
be adopted at scale, but rather how quickly. In India,
IFC is investing in a leading EV manufacturer that is
helping drive the local transport sector’s move awayfrom fossil fuels.
Our $73 million-equivalent rupee stake in Mahindra
Last Mile Mobility Limited — a subsidiary of Mahindra& Mahindra — will help the firm scale up its productionof electric three wheelers and small trucks while alsoenabling the development and manufacturing of
new products. EVs enable vibration- and noise-free
operations and are also more affordable options for
India’s microentrepreneurs. The business will further
generate employment for women, driving equality andinclusion while bolstering India’s climate action agenda.
By supporting this leading market player, IFC hopes toencourage other large automotive manufacturers tofollow suit. The goals: drive EV adoption across India,
the world’s largest three-wheeler market, and help the
Indian government deliver on its climate target.

IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy

Photos: Devkanya Pandey drives her Mahindraelectric auto in the city of Indore, Madhya Pradesh.

Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSIFC ANNUAL REPORT 2023

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION
Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing

IFC’s Strategy:
Scaling up Electric Vehicles
Electrification of transport is essential to the transition to a low-carbon economy.
Electric vehicles (EVs) bring many benefits in developing countries — lower
emissions, improved last-mile connectivity in remote places, reduced dependency
on imported fuel, and better air quality. But despite these advantages, they remain arelative rarity in developing countries.

IFC has now invested nearly $3 billion in the e-mobility value chain, helping scale
up the industry and increase its impact by working across the sector’s entire value
chain in all regions of the world, focusing on large, globally replicable investment
opportunities. Our focus includes:

Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms

POLICY AND REGULATION: Encouraging increased private sector participation

Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of CongoINVESTMENTS:
FINANCING GROWTHACROSS THE VALUE CHAINMINING

MATERIALS &COMPONENTS

CHARGERS& SWAPPINGINFRASTRUCTURE

E-BUSESCOMMERCIALFLEETSPERSONAL
MOBILITYASSETFINANCING& LEASINGTECHNOLOGYSERVICES

REUSE &RECYCLING

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time
Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSIFC ANNUAL REPORT 2023

27

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONUZBEKISTAN:

ENERGIZINGREFORMS

BekzatBuilding a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Across Central Asia, frequent power shortages
plunge millions into darkness and disruption. But inUzbekistan, rays of light are emerging to chart a
new energy future — not just for the country
but the entire region.
With the flick of a switch, Uzbekistan illuminatedits inaugural solar power plant, Nur Navoi. Built
through a first-of-its-kind public-private partnership,
the shimmering sea of panels now powers 31,000
homes with affordable, sustainable energy.
“When we started the solar project, we were
testing the waters,” said Bahrom Umarbekov
of Uzbekistan’s Ministry of Energy. Today,
Nur Navoi is a symbol of Uzbekistan’s energy
transition and a model for the region.

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical TimeThrough an innovative competitive bidding process,Uzbekistan tapped Abu Dhabi’s Masdar Clean Energy
to construct Nur Navoi. IFC advised on the landmark
deal, then helped finance the project alongside theCanada-IFC Blended Climate Finance Program.

Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa

Encouraged by Nur Navoi’s success, Uzbekistan isdoubling down on renewables, aiming to double its
clean energy share by 2025. It has already attracted$580 million in investments, including from IFC, for

IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONS

the region’s largest wind project. The mammoth
500-megawatt Zarafshan wind farm will power
500,000 homes annually and prevent over 1 million
tons of GHG emissions each year.
Uzbekistan is charting a new path for the Central
Asia region — one powered by private expertise andinvestment in renewable energy. And with each newsolar panel and wind turbine, Uzbekistan is bringing
much-needed light and power to the region.

Oishynov
Investment Officer,
IFC, Almaty“It wasn’t an easy job. But that’s what we’rehere for: making landmark projects like thisone happen, so they become success stories
for their countries.”
Bekzat Oishynov spent over 18 months arranging
IFC’s financing for Uzbekistan’s inaugural wind
power project — the $580 million Zarafshan power
plant that is due to be operational in 2025, displacing
more than 1 million tons of GHG emissions a year.
There were many ups and downs along the way as
he managed relationships with various stakeholders:
the sponsor, the government, and six different
lenders. Environmental safeguards were especially
important, including the utilization of advanced
technology to ensure the safety of birds from thewind turbines.
The challenging work paid off in the end: Zarafshan
was honored by three leading industry publications,
named Central Asia Deal of the Year by Project
Finance International, Asia-Pacific Renewables Deal of
the Year by IJGlobal, and Central Asia Deal of the Yearby The Asset Triple A.

Photo: Uzbekistan’s Nur Navoi Solar field.

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION
Building a Better Future

GAME–CHANGING TECHNOLOGY FORSENEGAL’S
SMALLHOLDERFARMERS

Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time
Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSPhoto: Through agCelerant, thesesmallholder farmers in Senegal arebenefitting from IFC’s investment
in rice production.

Across Africa, smallholder farmers, particularly women, lack access to quality
agricultural inputs, including high-yield seeds and fertilizers. They are shutout from traditional forms of banking and have limited access to formalized
financing. In Senegal, where agriculture contributes 15 percent of the overall
GDP and employs 77 percent of the workforce, lending to farmers and farmergroups stands at just 1.2 percent of banking sector lending. Financial institutions,wary of perceived high risks, are hesitant to lend to farmers — posing an acutechallenge to farmers’ ability to feed a growing population.
IFC’s Africa Agriculture Accelerator Program (AAAP), aimed at demonstrating
the financial viability of smallholder financing through the combined use oftechnology, insurance, agent monitoring, and field extension services, is helping
address those barriers. With support from the Private Sector Window of the
Global Agriculture and Food Security Program (GAFSP), IFC partnered with
agCelerant and the Bank of Africa as part of an AAAP pilot to help smallholder
farmers and small businesses in Senegal’s rice value chain get access to financemore easily to grow their operations. The risk-sharing facility supports Bank ofAfrica-Senegal’s lending to thousands of smallholder rice farmers and small riceproducing businesses, helping them access insurance, inputs, and equipment.
Bank of Africa is leveraging the support of agCelerant, an agritech company thatoffers data-driven solutions and training to ensure farmers receive the financial
and technical support they need to increase their productivity. Using satellite
imagery and other technologies, agCelerant controls the delivery of inputs suchas fertilizers and agrochemicals, insurance coverage, and farm services.
Improving food security and reducing import dependence, particularly for rice,
is a key strategic priority for Senegal’s government. Rice, a critical commodity,is largely imported and despite favorable conditions for cultivation, the country
produces less than 40 percent of the rice it consumes.
The project is part of IFC’s Global Food Security Platform, a $6 billion financing
facility designed to support vulnerable communities, boost the flow of vitalcommodities to emerging markets, and help reduce food insecurity.

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION
Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Photo: IFC’s Startup Catalyst Program is investing in
tech-enabled ventures like Toters, a delivery service
connecting local merchants with more than 500,000
customers in Lebanon and Iraq. Toters delivers food,grocery, and convenience products on-demand from
more than 4,000 partner SMEs. Toters represents IFC’s
first venture capital investment in Lebanon and Iraq.

Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of CongoSUPPORTING STARTUPSIN CHALLENGING
MARKETS

Since its launch in 2016, the initiative has supported
more than 2,800 entrepreneurs in 24 countries through19 funds. Companies supported by Startup Catalyst
have raised $4.5 billion in follow-on funding — 86 times
the amount of IFC’s original investments.

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time
Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy

Risk-taking entrepreneurs build thriving newcompanies that create jobs, foster innovation, anddrive competitiveness. But the road can be rough.
The support they need is often lacking in emerging
markets and developing economies — and almost
nonexistent in lower-income countries.

IFC helps fill this gap with an integrated investment
and advisory package called IFC Startup Catalyst thatcovers the full range of promising new companies’
needs. Under our innovative business model, we help
build nascent startup ecosystems by investing inboth earliest-stage support vehicles like incubators,
accelerators, and seed funds, as well as venture
capital funds that then take equity stakes of between$50,000 and $500,000 in emerging startups.

One example is Egyptian client accelerator
Flat6Labs, which provided early backing to Chefaa,
a local women-led online pharmacy. It has sinceraised more than $3.6 million in funding to expand
partnerships with 1,000 pharmacies, offering services
to 7.5 million users who benefit from automatic refillsof prescriptions, dosage reminders, and the ability toconsult an Arabic-speaking pharmacist at any time.

Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSIFC ANNUAL REPORT 2023

30

IFC 2023
ANNUAL REPORTThe Entrepreneurial Ecosystem
IFC Startup Catalyst works across the startup spectrum, building key components of the growth environment:

LEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION
Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships

INCUBATORS
foster early-stage companies
through their first developmental
phases until they have thefinancial, human, and physicalresources to run on their own.

Trade Finance: Mitigating Risk
and Maximizing Financing

ACCELERATORS
help startups step up their rate of
growth, taking partial ownershipin companies that participate inintensive, time-limited programs.

SEED CAPITAL
FUNDS
invest in exchange for a preliminary
equity stake or share in profits;
their support is often seen as a
key first step in helping startups
become established businesses.

VENTURE CAPITAL
FUNDS
provide the next stage ofinvestment for startups andsmall businesses with long-term
growth potential, often providing
technical or managerial expertise
as well as investment.

Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers

Complementary IFC Initiatives

Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time
Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSPhoto: Now being replicated in Africa, IFC’s
She Wins Arabia initiative helps women-led
startups across the Middle East and North
Africa get the advice, mentorship, andfinancing they need to grow.

Africa/MCAT VC Platform

She Wins Africa

To help build the digital economy in Africa, the Middle East,
Central Asia, and Pakistan, IFC launched a new $225 million
platform in 2022 to strengthen venture capital ecosystems
and invest in early-stage companies addressing development
challenges through technological innovations in climate,healthcare, education, agriculture, e-commerce, and othersectors. The platform is supported by the blended financefacility of the International Development Association’s Private
Sector Window to reach investors in low-income and fragile
and conflict-affected countries.

To support women entrepreneurs across sub-SaharanAfrica, IFC launched She Wins Africa in 2023. The
program is designed to unlock the potential of hundredsof women-owned startups by offering them advice,training, mentorship, and improved access to finance.
She Wins Africa builds upon the success of IFC’s She
Wins Arabia program of 2021, which to date has provided
training to more than 80 women entrepreneurs andsupport to more than 30 funds and accelerators.

VivaTech/IFC Partnership
Innovation accelerator VivaTech and IFC have teamed up tohost the AfricaTech Awards. The initiative aims to recognize
and support innovative Africa-focused companies with
disruptive solutions in the climate tech, health tech, andfintech sectors. The AfricaTech Awards, now in their second
year, are part of IFC’s strategy to strengthen tech ecosystems
in emerging markets and help innovative startups scale.
IFC ANNUAL REPORT 2023

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION
Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of CongoINNOVATING TO

BOOST ENERGYACCESS IN DEMOCRATIC
REPUBLIC OF CONGO

Much of Africa remains unconnected to power transmission
lines, holding back development and leaving about 600 million
people without electricity. Mini-grids, decentralized systems
that generate and supply power to communities independently
from national transmission grids, offer a beacon of hope.
Mini-grids are an affordable, sustainable way to expand
electricity access. They are especially suitable for remote areas,such as in the Democratic Republic of Congo, one of the world’s
least electrified countries, with 70 million people living without
access to power. IFC is helping communities tap into thepromise of this technology by investing $10 million in Nuru, apioneer of distributed energy solutions in the country.
Part of a more than $40 million package involving several otherinvestors, the financing will allow Nuru (the Swahili word for“light”) to begin work immediately on new solar projects inprovincial capitals Goma, Kindu, and Bunia, serving about 28,000
households and businesses.

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time
Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONS

The firm’s utility-scale “metro-grids” use cutting-edge
technology and service, designed to provide reliable, round-theclock renewable energy to communities in Eastern DRC. Oncecompleted, the installation at Bunia will be the largest off-grid
solar hybrid project of its kind in sub-Saharan Africa. IFC’s
investment is supported by blended finance from the FinlandIFC Climate Change Program to help de-risk the transaction.
Photos: IFC client Nuru, one of Africa’s pioneering renewable energypowered minigrid companies, is revolutionizing safety in Goma, in the
Democratic Republic of Congo. In the past, the lack of exterior lighting andstreetlights posed a threat to residents. But the installation of 394 newstreetlights has dramatically improved security. The neighborhood now
shows a 39 percent increase in residents feeling safe while walking alone
at night and increased job opportunities.
IFC ANNUAL REPORT 2023

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IFC 2023
ANNUAL REPORT

Upstream: Unlocking Opportunities
for New Investment

LEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION
Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time
Affordable Housing: Filling the Gap

One of the biggest barriers to sustainable private sector
investment in emerging markets and developing economies
is the shortage of well-prepared, commercially viable
investment opportunities.
To address this gap, IFC has significantly increased its focus
on early-stage market and project preparation work. These
proactive and hands-on efforts, referred to as “Upstream,” help
remove investment barriers and create opportunities to attract
private capital where it is needed most. And these efforts arebearing fruit — IFC’s pipeline of Upstream-supported projects
for the next five years now exceeds $30 billion, taking on key
challenges in climate, water supply, digitalization, healthcare,and other areas.
Upstream work over the past four years helped pave the way
for IFC’s investment in Nuru, assisting the firm with financial
models, feasibility studies, and identification of new partners.
Similar Upstream efforts have supported 47 other investee
companies this year, resulting in the dramatic growth of IFC’s
annual Upstream-enabled investments from $1.1 billion in FY20
to $4.4 billion in FY23.
While not all Upstream efforts will convert into IFC
investments, those that don’t may serve as drivers ofinvestment for others. It is experimental, resource-intensive
work that takes patience and tolerance for risk — but
opens the doors to new investments that change lives.

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSIFC ANNUAL REPORT 2023

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IFC 2023
ANNUAL REPORTSTRATEGY IN ACTIONLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION
Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time

INCLUSION
Across everything we do, IFC works to support inclusive
business models that improve livelihoods and create
opportunities for the people who need them most.
This means opening doors to business opportunities for
women entrepreneurs and job creation for those at thebase of the economic pyramid, such as refugees. More
broadly, it also means widening the private sector’s rolein countries that receive little investment or face othermajor challenges. However it is defined, inclusive businessmodels are needed for growth to be sustainable andeffective in reducing poverty.

Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa

Photo: In Kenya, joint IFC and UNHCR work helped attract private
businesses, including this bakery, to the Kakuma Kalobeyei refugeehosting area, creating job opportunities and enhancing access to services
for refugees and host communities.

IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSIFC ANNUAL REPORT 2023

34

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONPRIVATE SECTOR SOLUTIONS FORREFUGEES AND
HOST COMMUNITIESBuilding a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time
Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building

The number of people around the world who havebeen forcibly displaced from their homes reached
110 million in 2023 — a record high. An estimated threeout of four of these people are hosted in low- andmiddle-income countries, often by communities
facing similar socioeconomic challenges.
This grim statistic calls for innovative approaches toaddress a crisis that shows no signs of abating. In
2018, the United Nations General Assembly affirmeda Global Compact on Refugees, a historic framework
calling for greater support for people forced to flee, as
well as the communities that host them. It envisagesa more significant role for the private sector to help
create an enabling environment for refugees tobecome more self-reliant so they can build their own
futures and contribute to their host communities.
In response to this call to action, in December
2022, IFC and UNHCR (the UN Refugee Agency)
established a Joint Initiative to create opportunities
for refugees and their host communities. The
Joint Initiative provides operational support toIFC and UNHCR teams and promotes knowledge
sharing to facilitate the engagement of private

sector stakeholders in refugee-hosting areas. It
taps into private sector expertise, financing, andinnovation to improve the quality of life for those
forcibly displaced and their hosts. Through job
creation, affordable and inclusive services, financing
infrastructure, and providing capital for small andmedium enterprises, significant progress can be madein fostering economic growth and empowerment.
Since 2016, IFC and UNHCR have been working
together on project implementation in countries
including Brazil, Colombia, Ethiopia, Iraq, Jordan,
Kenya, Lebanon, and Uganda.
IFC’s new formal partnership with UNHCR will buildon the experience of this work and allow them tohave a more significant impact in supporting local
economies and markets, in alignment with the spirit of
the Global Compact on Refugees.

IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSPhoto: IFC and Colombian microfinance bank, Bancamía,
launched a pilot program to help Venezuelans in Colombia
integrate into social and economic life. Venezuelan migrant
María José Noguera Martínez took out a Bancamia microloan to start her business.
IFC ANNUAL REPORT 2023

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IFC 2023
ANNUAL REPORT

regions. With this support, entrepreneurs across thecountry were able to secure the funding needed to
expand their businesses, hire more local artisans, andcontribute to their local economies.

LEADERSHIP PERSPECTIVESRESULTSIn Indonesia, IFC embarked on a landmark social andgreen bond deal with PT Bank BTPN Tbk (BTPN),
worth up to $500 million. This investment was not justabout green growth; it was also about empowering
women business owners. The financing gap for
MSMEs in Indonesia, exacerbated by COVID-19, wasa significant hurdle for entrepreneurs, with womenamong the hardest hit. However, with half of the social
bond proceeds now earmarked for WSMEs, thousandsof entrepreneurs will be able to secure the necessary
funding to grow a greener, more inclusive economy.

STRATEGY IN ACTION
Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities

GENDER BONDS:

BREAKING
DOWN
BARRIERS

Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical TimeIn the heart of Brazil, a small business owner had avision, but like many women entrepreneurs in her
region, she faced significant barriers in accessing thenecessary capital. Meanwhile, thousands of miles
away in Indonesia, another woman shared a similar
dream and faced similar challenges.
In 2023, these women and thousands of female
entrepreneurs like them saw their dreams begin
to take shape, thanks to an innovative partnership
between IFC and two commercial banks.

Looking ahead, we remain committed toleveraging our capital, expertise, and influence
to create markets and opportunities for women
entrepreneurs. By doing so, we aim to build abetter future where everyone, regardless ofgender, has an equal opportunity to succeed.

In Brazil, IFC partnered with Itaú Unibanco,
subscribing to a $200 million gender bond. This
marked the first gender bond issued by a private bankin Brazil, and it was a game changer for thousandsof women. The bond supported Itaú Unibanco’s
lending program to women-owned small and medium
enterprises (WSMEs), particularly those in underserved

From Brazil to Bali and everywhere in between,
women entrepreneurs find themselves connectedby shared experience. IFC’s continuing support forsocial bonds is transforming women’s entrepreneurial
experience from hardship to opportunity.

Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSPhoto: Brazilian entrepreneur Júlia Morais
started her business, Flor de Maio, to provide
natural and holistic healthcare products towomen in her community. She was able togrow her business, thanks in part to a loan
from Itaú Unibanco.

These initiatives are part of IFC’s Banking on Women(BoW) business, which has been providing financial
and business solutions to women-led SMEs throughfinancial institution partners. Since 2012, IFC’s BoW
business has mobilized and invested more than
$4.2 billion in financial institutions, specifically tofinance women-led SMEs through 251 investment andadvisory services in 76 countries.

IFC ANNUAL REPORT 2023

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION
Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time
Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSPAKISTAN:SUPPORT AT A
CRITICAL TIME
In a year when Pakistan faced a crippling combinationof catastrophic floods, an economic downturn in partdue to the global energy crisis, and political instability,
IFC more than doubled its annual investments inthe country to nearly $1.5 billion, a new record andtestament to our role as a countercyclical investor.
This unprecedented level of IFC support came as thecountry is confronting its worst economic crisis in
decades. Amid Pakistan’s declining foreign reserves,companies need hard currency to do business inindustrial and manufacturing sectors. But commercial
banks’ ability to lend to the private sector has been
low amid the broader uncertainty.
IFC has provided a lifeline with short-term finance,
which rose by more than 80 percent this fiscal year.
IFC’s investments included the launch of a pioneering
supply chain risk-sharing facility to increase ourcapacity to support clients in key sectors such ascomplex manufacturing and export-oriented products,
as well as value chains of smaller businesses.
IFC is also helping address Pakistan’s challenges
by providing long-term financing. In healthcare,
our financing for a private hospital in the Khyber
Pakhtunkhwa province is helping improve accessto high-quality healthcare services, especially for
low-income patients. There is only one doctor for
every 3,000 people in the province, less than a thirdof the national average and well below World HealthOrganization recommendations. The investmentbuilds on earlier IFC advisory work that helped

Northwest hospitals monitor and improve their
quality of care, strengthen corporate planning, andimprove internal processes and corporate governance.
Approximately 25 percent of patients come fromnearby Afghanistan.
IFC’s investment in the hospital is supported by aco-investment from the blended finance facility of
the International Development Association’s Private
Sector Window. The blended concessional financeco-investment is addressing a gap in the availabilityof the long-term financing that the project needs todeliver the anticipated impact.
Our global focus on addressing the impacts of climatechange is also evident in Pakistan, a country that is
responsible for only 0.3 percent of global emissions
but is disproportionately affected by extreme weather
events such as floods and cyclones. We are looking toscale up support for sustainable and climate-resilient
infrastructure while also supporting micro, small,and medium enterprises and strengthening capital
markets. In addition to financial support, IFC provides
advice on partnerships between the government andprivate sector to improve the country’s water supply,
hospitals, and airports. Through this support, a firstof-its-kind framework has been developed for airport
outsourcing in the country.
Photo: Northwest General Hospital and Research Center in
Peshawar, Pakistan.

James
MorleySenior Investment
Officer, IFC, Singapore“There is a huge need for improved
healthcare in this city of more than
2 million people with a large Afghan
refugee population, but no otherhospitals of this quality.”
Amid the global COVID-19 pandemic, James
Morley began working on IFC’s $11 million
investment in the expansion of two private
hospitals serving low-income patients in
Peshawar, Pakistan. For the first two years,
travel was impossible. As time went on, a
deep macroeconomic crisis began to emerge
in Pakistan, decreasing the Pakistani rupee’s
value by 50 percent. Then the Taliban
takeover of neighboring Afghanistan led
to a flood of refugees, making conditions
even more challenging in the province.
But thanks to the team’s persistence, acommitted client, and IFC support that included
blended finance and Upstream/advisory, theclient received the transformative IFC funding,increasing access to healthcare for thousandsof people in this frontier region of the country.

IFC ANNUAL REPORT 2023

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESAFFORDABLE HOUSING:FILLING THE GAPRESULTSSTRATEGY IN ACTION
Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India

The world faces a vast shortage of affordable housing.
Demand greatly outstrips supply, affecting more than abillion people. IFC is mobilizing its toolkit to tackle thiscrisis with new urgency.
Consider Papua New Guinea, which struggles with acritical housing shortage in its capital, Port Moresby. An
estimated 56 percent of the city’s population will live in
informal settlements by 2030 unless the issue is addressed.
High prices and a lack of supply are pushing people to livein unsafe conditions.

Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time

IFC has signed an advisory agreement with thegovernment to address this shortage through structuring
and implementing a public-private partnership that will
help provide a variety of single-unit family dwellings
and affordable flats. IFC will assist the government
in running an open and competitive bidding process
to identify a highly experienced private developer
to design, finance, build, and maintain the housing
for a defined period. This affordable housing projectwill not only help address a housing shortage andproblems associated with informal settlements, butwill also provide a stock of climate-resilient homesthat incorporate green design specifications.

Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy

Photo: New affordable urban housing underconstruction in the Mandeni Municipality ofSouth Africa’s iLembe District of KwaZulu-Natal.

Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSIFC ANNUAL REPORT 2023

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION
Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities

Home ownership is one of the most important ways
for people to build wealth and transfer it to the next
generation. In South Africa, IFC is helping put more
people on that path, which, in addition to improved
access to finance, sometimes requires resolving
complex legal issues that stand in the way.
South Africa’s government has built more thana million subsidized houses for its low-income
populations in recent decades. But in many cases,
when people received the houses, title deeds
were not transferred, leaving occupants unable tolegally sell or borrow against the property. This has
kept an estimated 242 billion rand (approximately$12 billion) in assets out of the hands of thecountry’s poorest households. With the supportof the Swiss State Secretariat for Economic Affairs(SECO), IFC advisory services has helped two
municipalities near Durban locate the rightful
owners, transfer full ownership to them, andmake sure the problem does not repeat itself.

Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time

Amina
Khaled El Zayat
Senior Operations Officer,
IFC, Johannesburg“This story touched me on a personallevel, as I was able to see very immediate
and tangible results on the ground as aconsequence of our work.”
Amina Khaled El Zayat says the South Africa
Property Titling advisory project took her deeper
into the grassroots than anything else in her 15year career at IFC. It helped the KwaDukuza andMandeni municipalities near Durban locate theowners of low-income housing and put the title
deeds into their hands. The lessons from thispilot project are now discussed at the policy level
to replicate its success on a larger scale.

Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSPhotos left: Sifunda Amos Nkosi(above left, accompanied by
Thobeka Cele) and Nonhlanhla
Msweli are among the lowincome homeowners who have
now acquired titles to theirproperty thanks to the advisory
services IFC and SECO areproviding to municipalities inSouth Africa.
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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION
Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time
Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy

STRATEGY IN ACTION

THOUGHTLEADERSHIPCAPACITYBUILDING

AND

Collaborating with partners to build expertise and shareknowledge is an essential part of IFC’s mission.
In addition to the hundreds of projects we carry out each year,
we conduct regional and thematic research initiatives to provide
evidence-driven recommendations on how the private sector canhelp address the most urgent challenges of development. These
efforts help set a broader agenda for business and finance in thedeveloping world, pointing the way to new solutions for a moresustainable and inclusive world.
Through partnerships, we also work to build the capacity ofleaders in emerging and developing economies to develop theirskills and knowledge.

Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSIFC ANNUAL REPORT 2023

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVES

Photo: IFC financing helps Kenyan financial
technology firm M-KOPA expand its flexible
credit model, giving customers access to everyday
essential products by paying a small deposit
followed by digital micropayments.

IFC AND WTO:TRADE FINANCE IN AFRICARESULTSSTRATEGY IN ACTION
Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India

At the height of the COVID-19 pandemic, the tradefinance gap added to an array of disruptions in moving
critical goods and commodities across borders.
Restoring and increasing access to trade finance toboost trade flows is a critical policy priority to support
economic growth prospects.
In FY23, IFC and the World Trade Organization (WTO)
joined forces to understand how to scale access totrade finance in West Africa’s four largest economies —Côte d’Ivoire, Ghana, Nigeria, and Senegal — which facea trade finance shortage of up to $14 billion annually.

the poorest and fragile and conflict-affected
countries. In its first year, the initiative provided
seven banks with trade finance lines totaling$75 million in countries such as Burkina Faso,
Burundi, Guinea, and Mauritania. This included a$5 million facility for Interbank Burundi, supported
by advisory services, and $10 million to bolster thegrowing trade finance business of Mauritania’s
Banque Mauritanienne de l’Investissement.

Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time

The study, Trade Finance in West Africa, finds thatthe high cost and limited scope of existing tradefinance products in these economies severely limits
their trade. By lowering the costs and increasing theavailability of trade finance, these countries could
boost their exports and imports by up to $26 billion
annually. Additionally, providing greater access totrade finance would bring major economic benefits
and has become a key focus of IFC’s work across thecontinent. This has included joint capacity-building
workshops with WTO for banks, SMEs, industry
associations, and government officials in Rwanda andCôte d’Ivoire.

Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONS

Complementing that outreach is the African Tradeand Supply Chain Recovery Initiative, launched by
IFC in 2022 with the support of the International
Development Association’s Private Sector Window.
It provides funding and risk mitigation through local
financial institutions to importers and exportersof essential goods across Africa, especially in

Ngozi
Okonjo-Iweala
WTO Director-General“Our collaboration with IFC has helped
us better understand what is happening
with trade finance in Africa, enabling
IFC to help plug the trade finance gaps.
Our landmark study showed that only
25 percent of West Africa’s trade was
supported by trade finance, at high cost,
marginalizing small traders and keeping
them downstream in production.”

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONIFC AND IEA:SCALING UP INVESTMENT
IN CLEAN ENERGY

Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical Time
Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONS

Growth in emerging markets and developing economies will result in increasingenergy demand that governments alone cannot fulfill — unless they cut other criticalexpenditures. A joint report by IFC and the International Energy Agency calls on theprivate sector to step up.
The report, Scaling Up Private Finance for Clean Energy in Emerging and Developing
Economies, finds that annual clean energy investments in emerging and developing
economies will need to more than triple by the early 2030s and stay at those levels
for another 20 years to meet rising energy needs and align with the climate goals set
out in the Paris Agreement.
It estimates that about 60 percent of this financing will have to come from theprivate sector, amounting to about $1 trillion annually by the early 2030s, up from$135 billion today. Encouragingly, new climate-friendly energy solutions are being
introduced to the market, but they face risks of uneven development and deployment,
potentially leaving many countries behind.
For the private sector to play its part, clean energy projects need to be developedthat match investors’ risk and return expectations. Currently, the cost of capitalfor a typical utility-scale solar project can be up to three times higher in emerging
economies than in advanced ones, reflecting real and perceived risks at the country,
sectoral, and project levels. The World Bank Group will be instrumental in de-risking
projects through blended finance and in improving project preparation to scale
up opportunities.
The report stresses the importance of de-risking for projects that involve newer
technologies that have yet to scale and are not yet cost-competitive in manymarkets, such as battery storage, offshore wind, renewable-powered desalination,or low-emissions hydrogen. Projects using more traditional technologies but locatedin riskier markets will also require de-risking.
Photo: IFC-financed Cibuk 1 wind farm in the northern Serbian province of Vojvodina.

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION
Building a Better Future
Innovation
Ukraine: Investing in Entrepreneurs
Jamaica: The Power of
Public-Private Partnerships
Trade Finance: Mitigating Risk
and Maximizing Financing
Driving Adoption ofElectric Vehicles in India
Uzbekistan: Energizing Reforms
Game-Changing Technology for
Senegal’s Smallholder Farmers
Supporting Startups in
Challenging Markets
Innovating to Boost Energy Accessin Democratic Republic of Congo

Inclusion
Private Sector Solutions for Refugees
and Host Communities
Gender Bonds: Breaking Down Barriers
Pakistan: Support at a Critical TimeCAPITAL MARKETS:

TRAINING
THE NEXT
GENERATION
OF LEADERS

With sufficient financing, companies create jobs —providing the steady incomes that lift people out ofpoverty. Along with loans and equity investments,
mature capital markets play a critical role in enabling
business owners to access long-term financing,allowing them to grow their operations and hire
more people.
But in many countries, capital markets remain
underdeveloped because they lack a critical mass ofknowledgeable regulators who can carry out reforms tomodernize the financial sector and develop local capital
markets. This is why IFC has teamed with the Milken
Institute in the United States and Paris Europlacein France to train future leaders at the George
Washington University and Paris Dauphine University.

Successful capital market development requires
robust skills in financial regulation, market
intermediation, and policy planning. Over the pastseven years, the IFC-sponsored Capital Markets
Program has addressed this need, educating midcareer professionals from ministries of finance,
central banks, stock exchanges, and capital market
authorities. Since its inception in 2016, the program
has trained over 220 professionals across 58 countries.
“The program has really been very beneficial to ourcountries by preparing participants to be the next cropof governors, ministers of finance, and other positions
in our countries,” said Patrick Njoroge, governor of theCentral Bank of Kenya.
“If such opportunities can be afforded to many people
in developing countries, it can help to change Africa,”
said program alum Vusani Khoza of the Central Bankof Eswatini.
The students spend about eight months in
Washington, D.C., or in Paris, first completing acertificate program at the George Washington
University or an executive master’s at Paris Dauphine,with courses on financial markets fundamentals,
corporate governance, regulatory regimes, and othertopics. Then they intern at investment banks, asset
management firms, or international organizations likethe World Bank Group.

Affordable Housing: Filling the Gap

Thought Leadership andCapacity Building
IFC and WTO: Trade Finance in Africa
IFC and IEA: Scaling Up Investment
in Clean Energy
Capital Markets: Training the Next
Generation of Leaders

CRITICAL FUNCTIONSPhoto: May 2023 graduation ceremony forthe ninth cohort of the IFC-sponsored CapitalMarkets program.

IFC ANNUAL REPORT 2023

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONSMEASURING UP:OUR IMPACT

Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

Measuring the results of our work and evaluating our effectiveness are fundamental
to IFC’s approach to development.

MEASURING THE IMPACT OF IFC OPERATIONS
IFC’s impact assessment tool, the Anticipated Impact Measurement and Monitoring(AIMM) system, enables IFC to better define, measure, rate, and monitor thedevelopment impact of each investment project.

Since its introduction in FY18, the AIMM framework has delivered over 2,300 ex-anteand 4,400 portfolio impact scores. The framework is being continuously refined andstreamlined to meet business needs.

AIMM SCORESIn FY23, IFC committed 243 investment projects that received ex-ante AIMM scores.
The table below summarizes ratings over the past two years.

The ex-ante AIMM rating system, which assesses a project’s expected impact, is fully
integrated into IFC’s investment approval processes and allows development impact
considerations to be weighed against a range of strategic objectives, including
volume, financial return, risk, and thematic priorities.

Investment Ex-Ante AIMM Ratings for
Projects Committed in FY23 and FY22

For projects in IFC’s portfolio, ex-ante AIMM scores are transitioned to a portfolio
AIMM score that is reviewed annually. AIMM portfolio monitoring assesses a
project’s performance and the underlying risks to achieving expected development
impact using results data from assigned outcome indicators. By comparing changes
in indicator results to both ex-ante targets and AIMM sector framework benchmarks,
we are able to link the ex-ante AIMM score to its evolving portfolio AIMM score andmeasure the extent to which the expected development impact is realized.

FY23(243 PROJECTS)FY22(225 PROJECTS)

Excellent

14%

11%

Good

68%

61%

Satisfactory

18%

28%

Low

0%

0%

The AIMM system helps operationalize IFC’s strategy by providing a robust
operational framework that:

SHARE OF PROJECTSAIMM Rating Categories

The FY23 AIMM portfolio comprises 1,130 active projects that have received ex-ante
AIMM scores. The table that follows summarizes ratings over the past two years.

• Improves our ability to identify and design projects that maximize ourdevelopment impact;• Sets ambitious targets and incentives;• Strengthens our capacity to deliver an optimal mix of projects that generate both
high development impact and solid financial returns; and• Provides an “end-to-end” approach to results measurement by linking ex-ante
assessments with the learning and accountability function.

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTS

Investment Portfolio AIMM Ratings,
FY23 and FY22
RATING DISTRIBUTIONSAIMM Rating Categories

FY23(1,130 Projects)

FY22(1,034 Projects)

STRATEGY IN ACTION

Excellent

11%

8%

CRITICAL FUNCTIONS

Good

54%

55%

Satisfactory

25%

27%

Low

10%

10%

Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

Detailed AIMM scores by region and industry, as well as selected IFC client reach canbe found on IFC’s Annual Report website.
This is the fourth year IFC is publishing portfolio AIMM scores for investment
projects under supervision. Changes in portfolio AIMM scores inform investment
managers of progress in delivering development outcomes for active investment
projects. The FY23 average portfolio AIMM score was 48. The average ex-ante
AIMM score at approval for these same projects was 49, which suggests that at theportfolio level, overall, these projects are delivering on expected development impact
during implementation.

In addition, IFC is a founding partner of the Harmonized Indicators for Private
Sector Operations (HIPSO). The 28 development finance institutions (DFIs) in the
HIPSO Whole Group work to develop metrics at the sector and sub-sector levels
that could be leveraged by the signatories to the Impact Principles and the broader
impact investing community. In the past year, the HIPSO partnership revised metrics
for agribusiness, health, and education and drafted new indicators in increasingly
topical areas like disruptive technologies and job quality. The HIPSO platform hasa key role to play in ensuring best practices in metrics for monitoring development
impact are made widely available to non-DFI partners. It is also designed to nurturea culture of sharing knowledge and learning, including sharing knowledge on
impact management systems, theories of change and mapping evidence gaps, andharmonizing data collection templates.

ALIGNING WITH THE SUSTAINABLE
DEVELOPMENT GOALS (SDGs)
IFC operations contribute to several SDGs through direct investments and advisory
services. Integral to IFC’s mandate and aligned with the World Bank Group’s goals are
SDGs 1 and 10: “No Poverty” and “Reduced Inequalities.” At the strategic sector level,
IFC promotes projects in infrastructure, agriculture, financial inclusion, health, andeducation — aligned with SDGs 2, 3, 4, 6, 7, and 9.

Ratings of Advisory Projects: Development effectiveness of advisory projects is
assessed at project completion. In FY23, 98 advisory projects qualified for ex-post
evaluations, and 61 percent of these projects were self-rated to be mostly successful
or better.
The FY23 overall success rates for the advisory services portfolio is trending lower
relative to FY22, largely because of the effects of the COVID-19 pandemic and otherexternalities, particularly in Africa, Europe, and for global projects. Despite thedecline of the overall IFC success rate, success rates for the advisory services portfolio
increased in the Middle East, Central Asia, Türkiye, Afghanistan, and Pakistan Region.
Additional details can be found on IFC’s Annual Report website.

IFC also actively partners with private investors to mobilize new sources offinance — aligned with SDG 17. IFC continues to promote job creation and economic
growth, gender equality, cities development, environmental and social sustainability,
and climate-change adaptation and mitigation — aligned with SDGs 8, 5, 11, 12, and 13,
respectively. IFC’s clients’ contribution to the SDGs is highlighted on the IFC SDG
Dashboard on IFC’s website.

SETTING STANDARDS FOR IMPACT INVESTING
Since their launch in 2019, the Operating Principles for Impact Management(Impact Principles) have become the market standard for impact investors. By
adhering to these principles, impact investors can help ensure that their investments
meet a high standard for social and environmental impact, which can translate into
more effective use of capital. Beginning with 58 founding signatories, the Impact
Principles have grown significantly, and the number of signatories has tripled to 177.
The signatories come from 39 countries and represent $516 billion in assets focusedon impactful investments. IFC hosted the Secretariat for the Impact Principles until
October 2022, when we transferred hosting responsibilities to the Global Impact
Investing Network.

IFC, together with other DFIs who are HIPSO partners, has developed a common
methodology to align DFI contributions with the SDGs, available for broader use
by private impact investors and corporates. Additional information is available at:https://indicators.ifipartnership.org/dashboard/.

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact

LESSONS FROM RESEARCH, ANALYTICS, AND
SELF-EVALUATION PROGRAMSIFC uses a combination of research, data analytics, and self-evaluations to fillknowledge gaps and provide real-time solutions to clients and operational staff.
These insights generate important lessons that inform new client engagements.
Notable examples from FY23 are detailed below:• Impact Evaluation on Africa Improved Foods Limited (AIF Project) in Rwanda:

Financial Commitments to
IFC Trust Funds

IFC completed a six-year-long impact evaluation of the AIF Project in FY23, using
a matched difference-in-difference quasi-experimental design to assess theimpact on farmer livelihoods. Both IFC own-account and blended concessional
finance from the Private Sector Window of the Global Agriculture and Food
Security Program were used to finance the construction and operation of a 45,000
metric tons processing plant to produce fortified cereal bars for undernourishedchildren and lactating mothers to combat chronic malnutrition. The evaluation
found positive impacts for the treatment group on maize production, poverty
rate, household livestock income, and household ownership of non-agricultural
assets. These effects represent statistically significant positive differences fromthose of the comparison group, with the treatment group having 1.5 to 2 times
higher increase in the production, sales, and revenue of planting maize as well as
agricultural revenue. The likelihood of living below the international poverty lineof $2.15 a day decreased by 4.7 percentage points for treatment cohorts supplying
to the project for more than three years. An earlier assessment of the AIF Project
found that, during the forecast period of 2016 to 2031, the project was expected
to generate $758 million in net incremental benefits to the Rwandan economy, 70
percent ($532 million) of which is labor value added, mostly through reclaimed laborproductivity on the consumer side from reduction in malnutrition and stunting.

Funding• The Impact of Shared Telecom Infrastructure on Digital Connectivity andSustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits

Financial Performance Summary

Inclusion: Published in collaboration with the Toulouse School of Economics, thisworking paper, using data from 150 countries spanning over 12 years, found thatshared telecom infrastructure resulted in improved affordability of mobile internet
and increased uptake by women and rural households. A substantial number ofindividuals remain unconnected to the internet despite an increasing emphasis on
infrastructure-based competition. This paper investigates the impact of sharedtelecom infrastructure on digital connectivity and inclusion using a new dataset
on mobile tower sharing transactions between 2008 and 2020, i.e., acquisitions of
towers by independent companies from mobile network operators to be rented
back to all operators. Estimates based on difference-in-differences with different
timing of treatment suggest that these transactions resulted in a significant dropin the price of mobile connectivity as well as an increase in availability and uptakeof mobile internet, especially by rural households and women. Our findings suggestthat increased competition intensity through reduced market concentration
appears to be the main driver of these outcomes.

• Impact of the legal reforms on the e-payment market in

Bangladesh: IFC undertook an analysis to assess the contribution of thetwo e-payment regulations (the Bangladesh Payment and Settlement
Systems and the Bangladesh Electronic Fund Transfer Regulations in2014), supported by the Bangladesh Investment Climate Fund (BICF),
to the development of the e-payment market in Bangladesh. The
IFC-supported reforms are part of a larger World Bank Group package.
The analysis found that IFC-supported regulations directly contributed to
the licensing of 13 commercial fintech companies and the developmentof a consumer protection framework required to enable the growthof e-payments. It also finds that regulation was a necessary but not
sufficient condition for market development. The analysis foundthat the number of transactions of all three e-payment instruments(payment cards, internet banking, and mobile financial services) havegrown significantly over time. The number of mobile financial services
transactions was approximately 10 times larger than card-basedtransactions and 100 times larger than internet banking transactionsin 2021. The use of e-payment technologies grew exponentially during
the COVID-19 pandemic. Bangladesh is a regional leader on mobile
money but lags on mobile and internet banking. Yet, further growthof e-payments is contingent on reforms around market competition,
financial literacy, and awareness.

• Climate Change Impact Management by Financial Institutions

Survey: The survey sought to take stock of financial institutions’ capacity
and readiness to manage climate-change-related risks and opportunities
and the key challenges they are facing in aligning with the objectives of
the Paris Agreement. One hundred seventy-seven financial institution
clients across 73 emerging markets and developing economies wereasked to share their levels of preparedness in four areas, namely strategy
and governance, risk, finance, and reporting and disclosure. The survey
results indicated that awareness of climate risks is widespread but
scarcity of data to inform decisions, inadequate regulation, and shortagesof funding are preventing them from taking further action. Around athird of respondents see climate finance as a priority but their growing
appetite for expansion of their green portfolios faces several hurdles,
including low or insufficient customer demand for climate financepaired with the limited availability of longer-term funding and a limited
breadth of climate finance products. The survey revealed that while
only about a third of respondents have adopted three or more of theeleven recommendations by the Task Force on Climate-Related Financial
Disclosures (TCFD), the share is set to reach 76 percent in the next two
years. The results of the survey are valuable in identifying priority areas
where further support from development finance institutions can havethe most impact.

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONSSUSTAINABILITY

Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

IFC has long provided leadership in shaping
the environmental, social, and corporate
governance (ESG) landscape, frompioneering sustainability safeguards forthe private sector to establishing rigorous
ESG risk-management practices. The
Sustainability Framework and Corporate
Governance Methodology anchor IFC’s ESG
risk-management approach. They establish
a solid foundation for growing IFC’s own
business sustainably, as well as building thecapacity of our clients, the private sector,
and future industry leaders.
As the global sustainability agenda advances, IFC
has continued to innovate. Whether breaking new
ground with digital tools that monitor project
impact more efficiently or forging partnerships
to tackle emerging ESG frontiers, IFC is playing
a catalytic role in establishing standards forprivate sector growth and channeling financing
to create more sustainable markets.

IFC AS A STANDARD SETTERAt the core of our Sustainability Framework are
IFC’s Performance Standards, which define how ourclients avoid, mitigate, and manage environmental
and social (E&S) risks. For nearly two decades, our
Performance Standards have served as a global
benchmark. The Equator Principles, which are built onthese standards, have been adopted by 139 financial
institutions in 39 countries. A growing number of otherfinancial institutions and sustainability frameworks
are either adopted from or influenced by IFC’s
Performance Standards.
The World Bank Group’s Environmental, Health, andSafety (EHS) Guidelines are the technical reference
documents of Good International Industry Practice(GIIP) for financial institutions, companies, and ESG
practitioners across the globe. In close collaboration
with the World Bank and MIGA, we have begun
updating and modernizing the guidelines to reflect
the current GIIP, including strengthened guidanceon managing climate, community, and occupational
health and safety issues. The first new-generation
EHS guidelines on airports, electric transmission anddistribution, and healthcare facilities are expected to
be shared for public consultation in FY24.
Sustainable business relies on integrating corporate
governance considerations into the decision-making
process. IFC is continuing to set new benchmarks forcorporate governance, including in evolving areas suchas climate governance and reporting. Based on IFC’s
Corporate Governance Methodology, IFC has launcheda Climate Governance Progression Matrix and tip
sheet to assist boards of directors in identifying andoverseeing climate-related risks and opportunities.

CAPACITY BUILDING
Through our ESG advisory services, we support
our clients and the broader market in navigating
ESG challenges. In FY23, we supported 94 clients in
32 countries in improving their ESG practices andapproaches. We also continually develop open-source
public goods on best practices related to sustainability
issues. We published new tools and knowledge
products, such as a tip sheet and case studies toenhance understanding around gender-based violenceand harassment risk management, and a series of casestudies on women leaders in fragile markets entitledBeing Bold — Case Studies on Women’s Business
Leadership in Sierra Leone and Liberia. Our ESG
resources are valued by our clients and the broader
market, with more than one million page views and
300,000 downloads in FY23.
IFC is also helping companies build capacity totranslate sustainability commitments into practical,
measurable financial decisions. In FY23, we relaunched
the FIRST (Financial Institutions: Resources,
Solutions, and Tools) website, which provides financial
institutions with information and tools to understandand manage E&S risks and introduces users to

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ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability
Accountability and Oversightsustainable financing opportunities. The FIRST website
was accessed more than 200,000 times over the
past fiscal year, with the majority of users based inemerging markets.
IFC partnered with CDP, a non-profit focused on
environmental disclosure systems, to examine
more than 100 disclosure practices. The report,
which was developed in consultation with the UN
Sustainable Stock Exchanges Initiative, highlights
practical examples for developing high-quality
regulation to mobilize private capital flows towardsustainable solutions.

Credits

We are also continuing to strengthen IFC’s E&S staff
capacity. Our Professional Learning and Certification
Program (PLCP) was launched in August 2022 tomaintain the highest levels of E&S risk managementcompetency. More than 120 hours of training weredelivered to nearly 80 IFC E&S specialists. We’re
exploring how elements of the PLCP could be madeaccessible to external E&S practitioners.

Reporting Under the Task Force on
Climate-related Financial Disclosures

INNOVATIVE TOOLSDiversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected

Compensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

IFC continues exploring how technology and digital
tools can help monitor — and amplify — ESG impacts.
IFC’s Machine Learning ESG Analyst (MALENA) is being
used by IFC specialists for ESG due diligence, portfolio
monitoring, and insights. MALENA is an AI-powered
platform that extracts meaningful insights from
unstructured ESG data at scale, enabling rapid analysis
and increasing productivity. IFC is beta testing an
external version of MALENA, engaging with diverse
institutions. In May 2023, for the second consecutive
year, MALENA was selected by the International
Research Centre on Artificial Intelligence (IRCAI) asa Global Top 100 project to meet the Sustainable
Development Goals. This year, MALENA advancedby two categories from the previous year, from
“Promising” to “Outstanding,” and ranked in the top
10 projects.

IFC is also harnessing the power of digital tools
with the development of the Sustainability Rating
Tool (SRT), which has been designed to provide
structured and consistent management of ESG
risks and create operational efficiencies by helping
to focus efforts and resources on managing
material ESG risks. After a successful pilot test,
SRT is now being rolled out to all IFC projects,
including new business and portfolio projects.

Leveraging AI and Data Science to Drive Better Outcomes

There is growing interest in tapping AI to generate
insights on the environmental, social, and governance(ESG) performance of companies, projects, evencountries. Over 80 percent of the world’s largest firms
by revenue are reporting on sustainability aspects of
their businesses, and 90 percent of S&P 500 companies
disclose ESG data. Credit rating agencies who once
ranked companies purely on financial performance areadding ESG metrics to their offerings, while new rating
firms are now popping up that specialize in ESG rankings.
The United Nations has created the Sustainable Stock
Exchanges Initiative that promotes networking andresearch among capital market stakeholders. Regulators
are developing standards with the goal of making ESG
ranking methodologies more transparent, which shouldmake it easier for non-specialists to understand andcompare ESG data sets. ESG was a central considerationin every individual investment from the more than
$30 billion that IFC committed to emerging markets overthe past year.

documents in a way that will generate the most useful
ESG insights. Human language, as we know, is complex
and nuanced. Understanding the context of what is
written is key to grasping intended meaning — andpreventing errors in interpretation.
Since its launch in 2022, MALENA has analyzed over
246,000 internal IFC and public documents — including
impact assessments, news articles, and sustainability
reports — which stretch back decades and cover over
10,000 projects in 186 countries. One of MALENA’s big
strengths is speed: it reads 19,000 sentences in a minute.
After scouring the documents, MALENA generates
dashboards on ESG performance. These dashboards canbe a helpful reference source for IFC’s ESG experts asthey make their risk assessments.
With demand for ESG data growing exponentially,
including in emerging markets where such data is often
lacking, AI tools like MALENA have an important rolein improving data quality. They can help investors meettheir ESG goals in innovative ways.

With the support of the Facility for Investment Climate
Advisory Services (FIAS), Denmark, and the Republic ofKorea, IFC started building its own tool, MALENA, in2019 as an innovative way to use AI to help map out the
ESG landscape for emerging markets. IFC’s ESG experts
trained MALENA to analyze the language contained in

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ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

PARTNERSHIPSTo amplify its reach, IFC partners with leading
ESG networks and organizations. In FY23, incollaboration with the UN Sustainable Stock
Exchanges Initiative and CDP, IFC offered training
courses on the Task Force on Climate-Related
Financial Disclosures (TCFD). These courses reached
20,000 participants in 60 markets, with 12,000
participants joining from emerging market locations.
In partnership with the Equator Principles Association,
IFC published a report that examines the linkages
between IFC’s Performance Standards, the WorldBank Group’s EHS Guidelines, and the European
Union Taxonomy’s “do no significant harm” (DNSH)
and minimum safeguards (MS) criteria. This researchfound that the Performance Standards and EHS
Guidelines are a credible reference framework toassess the alignment of a business activity with
the EU Taxonomy’s DNSH and MS criteria to qualify
as environmentally sustainable. This researchcontributes to global objectives to seek interoperability
and alignment of sustainable finance regulations
and standards on environmental and social risk
management, which is critical to ensure theireffectiveness and avoid greenwashing.

finance taxonomies. SBFN continued to be the voiceof emerging markets in global sustainable financeplatforms such as the G20 Sustainable FinanceWorking Group and through reports such as the WorldBank’s Emerging Lessons & Considerations for Applying
the G20 Principles on Alignment Approaches.
To advance efforts in identifying and managing laborrisks, IFC’s Managing Director and the International
Labour Organization (ILO) Director General agreed
on a Partnership Roadmap in March 2023. As part ofthis roadmap, IFC and ILO are discussing opportunities
for further collaboration and synergies for knowledge
sharing and exchange, capacity building, andpromoting robust labor risk management.

IFC continued to serve as the Secretariat andknowledge partner for the Sustainable Banking
and Finance Network (SBFN), a global knowledgesharing and capacity-building platform for financial
regulators and industry associations from emerging
markets. In FY23, SBFN membership grew to 80
member institutions representing 63 emerging market
countries. In May 2023, SBFN launched a toolkit on
developing sustainable finance roadmaps to assist
members in moving from policy formulation to
implementation. Through SBFN, IFC provided technicalinput to a new online learning course on Sustainable
Finance Taxonomies, developed by Deutsche
Gesellschaft für Internationale Zusammenarbeit
GmbH (GIZ), an important resource for regulatorsin the design and implementation of sustainable

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONSACCOUNTABILITYAND OVERSIGHT

Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

Getting accountability right is critical for IFC
and our clients. IFC has taken several actions
in recent years to allow us to better address
negative impacts felt by communities. This
year, we gathered input from stakeholders
on the proposed approach to remedialaction and responsible exit principles. The
consultation on the proposed IFC/MIGA
Approach to Remedial Action took placefrom February to April 2023 and included
options for stakeholders to attend meetingsin various languages and time zones, aswell as submit written feedback. IFC isin the process of analyzing the feedback
we received from a broad spectrumof stakeholders, including civil society
organizations (CSOs), international financing
institutions, clients, and independentaccountability mechanisms (IAMs) ofmultilateral development banks.
In addition to enhancing its accountability, IFC is also
continuing its journey toward greater transparency,
recognizing that this is one of the most important
actions we can take as a development institution tomaintain the trust of our stakeholders and engage
them in developing new solutions to complex
development challenges. We remain focused on
working with our peers to achieve greater alignment
in disclosure and reporting practices. This past year,
IFC topped a DFI Transparency Index released by CSO
Publish What You Fund. This was the organization’s
first comparative measure of the transparency of theworld’s leading development finance institutions.

Accountability
OFFICE OF THE COMPLIANCEADVISOR OMBUDSMAN (CAO)
People affected by the environmental and social
impacts of IFC projects may voice their concerns
to CAO, the IAM for IFC. Reporting to the Board of
Executive Directors, CAO’s mandate is to facilitate
resolution of complaints in a fair, objective, andconstructive manner, enhance environmental
and social project outcomes, and foster public
accountability and learning to improve IFC’s
environmental and social performance. CAO’s Dispute
Resolution function helps resolve issues between
affected people and IFC clients using a neutral,collaborative, problem-solving approach. CAO’s
Compliance function carries out reviews of IFC’s
compliance with its environmental and social policies,
assesses related harm, and recommends remedialactions where appropriate. Through its Advisory

function, CAO provides advice to improve IFC’s
systemic performance on environmental and social
sustainability. In FY23, CAO handled 58 cases related
to IFC projects in 29 countries. During the year, CAO
received 12 new eligible complaints, of which two werereferred to IFC. An additional two complaints that werereferred to IFC in FY22 returned to CAO for assessment
in FY23. CAO closed one case after early resolutionin assessment and closed five cases after monitoring
dispute resolution agreements reached between
project-affected people and IFC clients. In addition,
CAO closed one case after compliance appraisal as aninvestigation was not found to be merited and closed
one case after monitoring IFC’s actions in response
to CAO’s investigation findings. More information isavailable on CAO’s website.

INDEPENDENT EVALUATIONGROUP (IEG)
The Independent Evaluation Group (IEG) is anindependent unit that reports directly to the World Bank
Group’s Board of Directors. IEG’s mission is to strengthen
World Bank Group institutions through evaluations that
inform strategies and future work, leading to greater
development effectiveness. IEG assesses the resultsof IFC operations and offers recommendations for
improvement. IEG also contributes to internal learning
by informing new directions, policies and procedures,and country and sector strategies. IEG’s annual reviewsof World Bank Group results and performance and ofother major reports are available on IEG’s website.
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Oversight

SANCTIONS SYSTEMLEADERSHIP PERSPECTIVESGROUP INTERNAL AUDIT VICEPRESIDENCY (GIA)

The World Bank Group’s Sanctions System is a multitier administrative process designed to address fraud,corruption, collusion, coercion, and obstruction by firms
and individuals involved in its operations.

RESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

The Group Internal Audit Vice Presidency (GIA) is
an independent function reporting to the President
and under the oversight of the Board of Executive
Directors. GIA provides senior management and theBoard with reasonable assurance that processes
for managing and controlling risks and their overall
governance are adequately designed and functioning
effectively. GIA’s work helps the World Bank Group
serve its clients more effectively. It delivers audits,assurance, and advisory reviews that cover all key
institutional areas: strategy, operations, finance,and corporate functions, including IT systems,
applications, and processes. Its work is carried out
in accordance with the Institute of Internal Auditors’
International Professional Practices Framework. GIA
collaborates with risk management and governancefunctions within management, as well as with theWorld Bank Group’s other independent oversight andaccountability units.
GIA’s work program focuses on institutional andstakeholder priorities and significant risks; itdelivers about 30 engagements per year. Key topics
in FY23 included business continuity, conflictsof interest, IDA country allocations, innovativeuse of technology in project supervision, IFC’s
Upstream approach, treasury asset management,
personal data privacy policy, website governanceand security, and workforce planning.
GIA employs a flexible, risk-based delivery modelto adjust its focus alongside changes in the WorldBank Group’s business and risk landscape. In FY23,
GIA piloted the new Country Assurance and Advisory
Program to enhance its coverage of governance, risk
management, and internal controls of in-country
processes. The program responds to internal
developments such as decentralization as well as
the findings and recommendations from GIA’s 2022
External Quality Assessment. For more information on
GIA, visit: www.worldbank.org/internalaudit.

The Integrity Vice Presidency (INT) detects,
deters, and prevents fraud and corruption in WorldBank Group–financed operations and involving
World Bank Group staff and corporate vendors.
It investigates allegations of fraud, corruption,and other sanctionable practices; when these aresubstantiated, it pursues sanctions against external
entities and provides its findings for human resources
decisions on disciplinary measures against staff.
INT also works to identify, monitor, and mitigate
integrity risks in World Bank Group operations.
The Integrity Compliance Office, an independent
unit within INT, reviews the compliance posture ofindividuals and entities involved in the sanctions
process and engages with those that are working tomeet their conditions for release from sanction.

In FY23, the World Bank Group sanctioned 23 firms andindividuals through uncontested determinations of
the Bank’s Chief Suspension and Debarment Officer,
decisions of the World Bank Group Sanctions Board,and settlement agreements. It removed 17 entities fromsanction and converted the debarment with conditional
release of one entity to conditional non-debarment. The
World Bank Group also recognized 44 cross-debarmentsfrom other multilateral development banks (MDBs),
and 12 World Bank Group debarments were eligible forrecognition by other MDBs.
For more information about the World Bank Group
Sanctions System and its annual report, visit www.
worldbank.org/integrity.
To report suspected fraud or corruption in World Bank
Group-financed projects, visit www.worldbank.org/
fraudandcorruption.

In FY23, INT convened the fifth International Corruption
Hunters Alliance forum in Abidjan, Côte d’Ivoire,engaging with anticorruption practitioners fromaround the world on global challenges, with a focus on
the nexus between corruption and development. This
year’s forum built on ongoing efforts to strengthen
the network of anticorruption actors in confronting
corruption at the local, regional, and global levels.
The Office of Suspension and Debarment is led by theWorld Bank’s Chief Suspension and Debarment Officer
and provides the first level of adjudication in the WorldBank Group’s Sanctions System. All sanctions cases thatare not appealed to the Sanctions Board are resolved
based on the officer’s determinations, summaries ofwhich are available to the public.
The Sanctions Board consists of seven members who
are all external to the World Bank Group. It serves as the
final decision maker in all contested sanctions cases andissues publicly available and fully reasoned decisions,which are not appealable.

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ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONSDIVERSITY, EQUITY,
AND INCLUSION

Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

At IFC, we strive to build a diverse, equitable,
and inclusive workplace that empowers andcelebrates our staff as they deliver impactful
results in private sector development.
We remain committed to our strategic
priorities of gender equality, data-driven
accountability, and inclusive leadership.
Promoting diversity of thought starts with tracking
workforce diversity data, which gives insight into ouremployees’ wide range of backgrounds, skills, andexperiences. As of June 30, 2023, IFC had over 4,300
employees, 54 percent of whom are women. Our staff
represent more than 150 nationalities, work in over 100
countries, and speak more than 50 languages.
To achieve a more granular picture of our workforce
representation, we rely on our ongoing iCount
campaign. IFC’s iCount initiative encourages staff tovoluntarily self-identify in terms of nationality, raceand ethnicity, sexual orientation and gender identity,and disability status. The iCount data we collecthelps us understand with greater accuracy how IFC
staff experience the workplace in terms of career
progression and promotions, mobility, compensation,and performance management. We use this data
to take targeted actions aimed at improving IFC’s
workplace experience.

In FY23, iCount data enabled us to view workforce
diversity through different lenses: race and ethnicity,
sexual orientation, and disability status.

ADVANCING OUR
DEI STRATEGIC PRIORITIESOur diversity enables us to think globally and act locallyas we develop innovative and cross-cutting solutions
to deliver on IFC’s mission. Looking back on FY23,
we are proud of advancing our three DEI strategic
priorities, which reflect common needs across ourorganization’s global footprint:
1. Inclusive Leadership is our commitment to enable andset expectations for all staff in supervisory roles to leadby example and cultivate a value-based workplace culturethat fosters inclusion and belonging.
Through learning programs and training, we aim
to model the use of inclusive communication tocreate a supportive work environment for LGBTQI+
colleagues and allies. In FY24, we look forward tolaunching additional modules that highlight therole of inclusive communication in recruitment andperformance management processes.

FY23 marked a milestone with the release of our
first public DEI annual report. We also expanded
our workforce representation disclosure beyond
nationality and gender to include race/ethnicity,
sexual orientation, and disability status. In FY24, weplan to undertake more detailed analyses of race andethnicity data to understand with greater accuracy
how IFC staff experience the workplace in termsof career progression and promotions, mobility,compensation, and performance management.
3. Gender Equality is our commitment to build on our
gender equality progress to sustain equity for women’s
career development at IFC.
In FY23, we continued to track the share of womenin leadership positions. Our Gender Balance Index(GBI) score — a metric we use to promote, measure,and track gender distribution across our four gradegroups — increased from 0.82 in FY18 to 0.87 in FY23.
For information on our staffing demographics andprograms to create a more diverse, equitable, andinclusive work environment, visit www.ifc.org/en/
about/diversity-equity-inclusion.

2. Data-Driven Accountability, previously referred
to as Performance Management Culture, is ourcommitment to strengthen our accountability and public
disclosure efforts as we expand our data-driven action
beyond just gender.
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ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits

AUDITOR’S REPORTIFC has requested EY to perform alimited assurance engagement on aselection of non-financial information
disclosed in the Annual Report. The
nature, scope, and conclusion of thisengagement are described in EY’slimited assurance report, available in
the online IFC Annual Report.

LETTER TO THE BOARD
OF GOVERNORSThe Board of Directors of IFC has
had this Annual Report prepared inaccordance with the Corporation’s
by-laws. The President of IFC andChairman of the Board of Directors
has submitted this report with theaudited financial statements to theBoard of Governors.

STAY CONNECTED
IFC’s website, www.ifc.org, provides
comprehensive information on ourwork. It includes contact informationfor offices worldwide, news releases
and feature stories, data on results
measurement, disclosure documentsfor proposed investments, and key
policies and guidelines.
The online version of IFC’s
2023 Annual Report, www.
ifc.org/annualreport, provides
downloadable PDFs of all materials
in this volume and translations
as they become available.

Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

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ANNUAL REPORTIFC ONLINECREDITSLEADERSHIP PERSPECTIVES

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ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

REPORTING UNDER
THE TASK FORCEON CLIMATE-RELATEDFINANCIAL DISCLOSURESIFC ANNUAL REPORT 2023

55

IFC 2023
ANNUAL REPORT

CLIMATE-RELATED FINANCIALDISCLOSURE

LEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

This report is IFC’s sixth consecutive disclosure
under the guidelines recommended by the
Task Force on Climate-related Financial
Disclosures (TCFD). The report reflects
IFC’s perspective that climate change is amaterial risk and opportunity for our corebusiness and therefore a key componentof our non-financial disclosures andbusiness strategy. It aims to provide our
stakeholders with material information that
accurately reflects the integration of climate
considerations into our operations. Finally, it
represents IFC’s continued commitment tomaintain and strengthen our climate-related
financial risk assessment, management,
and reporting practices. All six reports canbe found online www.ifc.org/AnnualReportwith links to relevant references.
IFC has its TCFD reporting audited by EY, a recognizedthird party, as part of the annual review of IFC’s
non-financial reporting. This review of our qualitativeand quantitative disclosures helps us improve our TCFD
reporting every year and ensures that the information
provided is material to stakeholders and is aligned with
global best practices. Since 2006, IFC has ensured thata third party audits its climate finance numbers toprovide independent assurance on its climate financeresults reporting.
This report follows the TCFD framework’s fourthematic areas: governance, strategy, risk
management, and metrics and targets.

GOVERNANCE

What’s New?
• Updated IFC’s Board of Directors and management
team on the progress of climate finance and Paris
Alignment.
• Integrated the Climate Business Department with
the Vice Presidency of Industries.
• Drafted and operationally tested the procedural
framework for the implementation of thetransaction-based approach to Paris Alignment.
• Finalized the frameworks for the counterparty
approach to Paris Alignment in collaboration withthe other multilateral development banks.
• Developed sector notes in collaboration with theWorld Bank.

IFC’s Articles of Agreement outline the composition,
roles, and responsibilities of IFC’s senior governancebody, its Board of Directors. The Audit Committee of
its Board of Directors plays a key role in overseeingrisk management at IFC. Under the direction ofits Managing Director, IFC’s management team is
responsible for IFC’s day-to-day operations including
the management of existing and potential risks.
IFC’s climate business and risk are overseen by IFC’s
Managing Director, who reports to the President of
the World Bank Group on all climate commitments
including climate business performance, climate risk
evaluation, and Paris Alignment of IFC’s operations.
The World Bank Group President reports to theWorld Bank Group (IBRD, IDA, IFC, and MIGA) Boardof Directors. Following the climate commitments aspart of IFC’s 2018 capital increase, in FY21 its Board
approved IFC’s commitment to align its investmentswith the goals of the Paris Agreement. As part of IFC’s
capital increase and Paris Alignment commitments, allinvestments are now screened for physical climate risk
and IFC has committed to aligning all new investmentswith the goals of the Paris Agreement starting in July
2025 (85 percent starting in July 2023), and further
scaling climate finance.
The President of the World Bank Group sets theGroup’s public climate targets. Progress on targets isreported to the IFC Board as part of IFC’s quarterly
Investment Operations Report Updates. Separately,
the Group also reports annually to its Boards of
Directors specifically on climate including progress
toward all climate commitments (see Metrics andTargets section for further details). IFC’s Board
received climate updates and technical briefings on
Paris Alignment and climate finance in July 2022 andin February and May 2023. In addition, IFC seeks
formal Board approval for most projects, except
those approved with delegated authority, many ofwhich entail detailed engagement, particularly in
hard-to-abate sectors. In the last fiscal year, there
was significant engagement with IFC’s Board andmanagement on several projects in hard-to-abate
sectors such as chemicals and airports, which resulted
in the development of specific strategic approaches forinvesting in such sectors.
Additional touch points with the IFC Board andmanagement team are integrated into our businessand reporting processes, through written and verbal
communications including the Annual Portfolio Review,
Strategy and Business Outlook, Capital Package andthe Forward Look Implementation Update, annual
Climate Change Action Plan (CCAP) updates, updates
on climate finance drivers and calculations as well as
Paris Alignment of projects, carbon pricing and climate
risk discussions in project Board papers, and deep divesand technical briefings as requested.
Climate is integrated into all aspects of IFC’s operations.
IFC’s Climate Business Department is responsible forproviding in-house expertise on climate and guiding theachievement of our climate targets. It serves as a hubthat informs, trains, and enables IFC investment andother departments — the spokes — to integrate climate
into IFC’s operations, engage with our clients, andbroaden our impact. The Climate Business Department
helps set corporate climate strategy, shape policy,

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summaryand support investment teams in identifying climate
investment opportunities and mitigating climate
risk. It also addresses medium to long-term climate
risks by building the capacity of IFC staff and clients,
providing advisory services, and developing thought
leadership to create climate markets. The Department is
responsible for developing approaches to help IFC meet
its Paris Alignment commitment, as well as supporting
investment teams with adhering to these requirements
through project assessments, development of tools andsupport materials, and delivering training to IFC staff
and clients as needed.
This year the Climate Business Department has beenfurther integrated into IFC’s operations. Previously
under the purview of the Cross-Cutting Solutions
Vice Presidency, the department is now under theVice President of Industries, who reports to IFC’s
Managing Director. The Vice President of Industries
also oversees all IFC’s industry departments as well as
the Corporate Portfolio and Operations Management
departments. IFC’s industry departments are
responsible for originating and processing investments,
including those that are reported as direct climate
financing. This realignment reflects IFC’s position thatclimate change is a material priority to be integrated
across all projects, operations, investment cycles, andorganizational processes.
IFC is actively integrating climate business throughout
the institution through its Climate Anchors Network.
This Network comprises senior staff in each industry
and regional department as well as key operational
departments including Legal and Compliance Risk,
Corporate Risk Management, and Environmental andSocial. Regional and departmental Climate Anchors
report jointly to their department director and to the
Climate Business Director. IFC has hired Regional
Industry Climate Business Development Leads
for each of its regions of operations, who report totheir Regional Industry Directors and to leadershipin the Climate Business Department. These leads are
responsible for identifying opportunities to unlock
more climate business in their regions, including crosscutting opportunities. Regional and industry teams
are hiring additional staff at all levels to enhancetheir climate-related competencies and offerings.

Industry anchors have been playing a similar role inchampioning IFC’s climate business targets and the rollout of Paris Alignment in their respective sectors.
Beyond the Climate Business Department and theindustry teams, climate is well integrated into other
IFC operations and products. IFC’s Blended Financeteam deploys donor funds in conjunction with
IFC’s commercial funds to catalyze climate-smart
investments with high development impact thatwould not occur under normal market conditions. By
mitigating specific investment risks and rebalancing
risk-reward profiles, the team addresses market
failures, helps mobilize private investment inpioneering projects and challenging environments,
and demonstrates their business case. IFC’s Upstream
work focuses on early-stage market and project
preparation work to build a pipeline of well-prepared,commercially viable climate investment opportunities.
IFC’s Treasury and Mobilization Vice Presidency is
responsible for issuing climate bonds and mobilizing
private capital to reduce climate change vulnerability.
The Environmental and Social Policy and Risk andEnvironmental, Social, and Governance (ES&G)
Sustainability Advice and Solutions departments
ensure that IFC implements appropriate E&S riskmanagement systems and procedures. The ES&G
Sustainability Advice and Solutions department works
closely with investment teams and clients to identify,
evaluate, and manage ESG risks through clients’adoption of ESG standards.
Climate risk is being further integrated into IFC’s
enterprise risk framework and operations through across-organizational Climate Risk Working Group(CRWG), chaired by the Vice Presidents of Risk and
Finance and the Vice President of Industries, andincluding members from IFC’s Climate Businessdepartment, Corporate Risk Management
department, ES&G Sustainability Advice and Solutions,
Corporate Portfolio and Operations Management
department, and others. In FY23, the Climate Risk
Working Group led the efforts to identify and manage
IFC’s overall exposure to climate-related risks andopportunities. In June 2023, the CRWG presented thefindings of an initial scoping exercise to IFC’s Corporate
Risk Committee (CRC) on a potential roadmap

to integrate climate risk further into overall risk
management practices, to be followed by identificationof next steps. To further integrate climate
considerations into all operations, the Climate Business
Department has also begun training business units
such as the Corporate Portfolio and Operations
Management on climate risk and strategy, including
Paris Alignment and climate finance.
IFC’s Sustainability Framework applies to all
investment and advisory clients’ projects and includes
eight Performance Standards (PS), which define clients’
responsibilities for managing their environmental andsocial risks. Climate and Biodiversity risk considerations
are mainstreamed into all IFC projects through these
Environmental and Social Performance Standards.
IFC nominates directors to the boards of investee
companies to add value in line with its development
mandate. Throughout their board service, Nominee
Directors are supported by a dedicated IFC Nominee
Directorship Center. Recognizing the importance ofembedding good climate governance into the boardsof our client and investee companies, the Climate
Business Department has developed training sessions
for IFC Nominee Directors to build and improve
capacity of investee companies on climate change,
including climate finance and climate risk.
IFC has also developed climate governance guidance
for the private sector through two online resources:
Climate Governance: Equipping Corporate Boards
to Mitigate Climate Risks and Seize Climate
Opportunities, and IFC’s Climate GovernanceMatrix and Tip Sheet for Corporate Boards.
These resources recommend best practices to help
boards identify and oversee climate-related risks andopportunities. IFC continues to provide peer review,advisory services, and technical assistance, as well as
lend its convening power to support the development ofadditional taxonomies and standards around the world.
IFC staff actively engages with civil society
organizations (CSOs) including during the WorldBank Group Spring and Annual Meetings around issuesof sustainable supply chains, Paris Alignment andsustainability in financial intermediary investments.
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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESIFC continues to engage formally and informally withprivate, public, financial sector, and CSOs on climate
risk and opportunities, and retains membership inseveral climate-related corporate leadership initiatives.

RESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONSSTRATEGY

Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits• IFC completed the pilot and has mainstreamed Paris
Alignment for all new projects in real and financial
sectors with defined use of proceeds.
• FY23 own-account investment in climate:$7.6 billion.
• FY23 mobilization of private capital for climate:$6.8 billion.
• IFC performed a transition scenario analysis exercise
on its portfolio in select sectors.

Reporting Under the Task Force on
Climate-related Financial Disclosures

Climate Change Action Plan

Financial Commitments to
IFC Trust Funds

IFC’s strategic priorities for its climate business areanchored in its Capital Increase Package commitments
and the FY21-25 World Bank Group Climate Change
Action Plan (CCAP). In June 2021, the Board endorsed
the CCAP for FY 2021-25. The CCAP focuses on
increasing climate finance to reduce emissions,strengthening climate change adaptation, and aligning
financial flows with the goals of the Paris Agreement.
It provides a roadmap on aligning climate anddevelopment goals using new diagnostics, prioritizing
transition in five key systems that generate 90 percent
of emissions and face significant adaptation challenges:
energy; agriculture, food, water, and land; cities;
transport; and manufacturing. The CCAP also commits
IFC to increase finance to support the transition,
including by mobilizing private capital and supporting
global efforts to raise and deploy concessional finance.

Financial Performance Summary

FY23

FY22

FY21

FY20

FY19

Own Account Long-Term Finance (LTF)$ 7,628$4,401$4,021$3,324$2,603

Core Mobilization$ 6,769$3,346$3,610$3,500$3,172

Total$14,396$7,747$7,631$6,824$5,775Figure 1: IFC Climate Business as a Percentage of Total Long-Term
Own Account Commitments: Ten-Year Trend

50%

46%

40%

35%

34%

30%

29%

30%

2019

2020

32%

25%
22%

20%

18%

19%

10%

Compensation and Benefits

Funding

TOTAL CLIMATE FINANCE COMMITMENTS(US$ MILLIONS)

What’s New?

Measuring Up: Our Impact
Sustainability

Table 1: Climate Change Commitments: Five-Year Trend

0%

2014

2015

2016

2017

2018

2021

2022

2023

As part of this plan, IFC will increase its direct
climate financing to 35 percent of total commitments
on average over the five-year period, significantly
higher than the 26 percent average achieved between
FY16 and FY20. Additionally, IFC will align its financial
flows with the objectives of the Paris Agreement.
Starting July 1, 2023, 85 percent of all new investments
in all sectors are aligned with the Paris Agreement’s
goals, and 100 percent of these will be aligned starting
July 1, 2025.

account long-term finance in climate accounted for46 percent of our new investments (see Table 1).

Climate Financing

IFC creates a pipeline of climate opportunities throughdirect investments, providing thought leadership,
advisory and capacity building services, and private
capital mobilization and issuance of bonds through its
Treasury operations.

In FY23, IFC’s total climate-related commitments (bothown account and core mobilization) were $14.4 billion,
making it a record year for IFC. At $7.6 billion, our own

These climate volumes are a record high for IFC.
This achievement is the result of significant efforts
to mainstream climate into operations and theintroduction of new and innovative products.
Screening projects for Paris Alignment has also enabled
the climate team to identify and flag climate financeopportunities to investment teams at the earliest
stages of project design.

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ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion

IFC continues to diversify its climate business,
identifying new areas of growth. In FY23, IFC retained
strong climate business (our long-term own-accountinvestment as well as mobilization) through financial
intermediaries ($4.6 billion), and in renewable energy($4.3 billion), urban, transport, and waste ($2.4 billion),green buildings ($1.8 billion) and resource efficiency($950 million). IFC’s industry departments are
responsible for originating and processing investments,
including those that are considered climate finance.
Our climate finance represents the climate-related
value add of our business. This is different from ourcommitment to Paris Alignment, which ensures thatevery project adheres to a certain minimum standard.

Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

Paris Alignment
Our work on Paris Alignment has helped us define an
overall climate risk and opportunities strategy thatincorporates governance structures, risk management,
and metrics and targets.

An IFC investment is considered aligned when
new financing flows and guarantees provided
will be consistent with the objectives of the Paris
Agreement and a country’s pathway toward
low greenhouse gas emissions and climateresilient development. IFC directly applies the
MDB Principles for Direct Investment operations,
Financial Intermediary and General Corporate
Financing. The outcome of a Paris Alignment
assessment for an operation is “aligned” or“nonaligned.” For operations to be aligned, a client
may be required to take action before and during
the tenor of the financing, as needed.

Since the signing of the Paris Agreement in 2015, IFC
has worked closely with the World Bank, MIGA, andeight other multilateral development banks (MDBs)
to develop the Joint MDB Methodological Principles
for Assessment of Paris Agreement Alignment, which
consider the specific contexts of the emerging markets
within which IFC and the other MDBs operate. IFC

has coordinated closely with the other MDBs todevelop and publish the Joint MDB Methodological
Principles for Assessment of Paris Agreement
Alignment of New Operations: Direct Investment
Lending Operations (real sectors) and, along with theEuropean Bank for Reconstruction and Development,
led the development of the Joint MDB Methodological
Principles for Assessment of Paris Agreement Alignmentof New Operations: Intermediated Financing. Joint
methodological principles have also been prepared forGeneral Corporate Purpose Financing. Paris Alignment
includes alignment with both mitigation (Building Block,or BB, 1 of the Joint MDB Framework) and adaptation
and resilience (Building Block, or BB, 2 of the Joint MDB
Framework) components.
The integration of Paris Alignment into our operations
has changed how IFC does business. Paris Alignment
requirements are best met when integrated into
existing business processes. Our implementation
plan recognizes and reflects this, with project cycle
integration. Climate considerations are included earlyin the project design process, allowing investment
teams to both address any climate risks that areforeseen as well as take advantage of the business
opportunities presented through adaptation measuresand helping clients transition to a low-carbon pathway.

Providing Market Enabling, Advisory,
and Capacity-Building Services
Market Enabling Activities. Critical to identifying
climate opportunities for IFC’s operations are theregulatory, legal, and market environments of thecountries in which we operate. A crucial part of taking
advantage of these opportunities is engaging withstakeholders and helping build the market-enabling
environments that are conducive to climate investment
and resilient to both transition and physical risks at a
macro level.
Recognizing the need for bankable green projects
as a key hurdle to scaling private climate financeunder the Scaling up Climate Finance through the
Financial Sector Program, IFC is working in four pilot
countries — Egypt, Mexico, Philippines, and South

Africa — to help catalyze the development of a pipelineof green projects in target sectors. This project involves
engaging with stakeholders from the public, private,
and financial sectors to develop solutions to incentivize
the development of private sector projects in theidentified sector for each country. It also involves
engaging with regulators on developing national green
finance taxonomies and collaborating with client banks
on climate risk management as well as increasing the
proportion of green investments in their portfolios
to green the domestic financial sector and generate
climate finance at scale.
We continue to develop and set environmental
and social standards through our PerformanceStandards as well as our work on developing nationaland subnational taxonomies for green finance,
green buildings, and other key sectors. In addition
to numerous global frameworks including the work
on climate finance and Paris Alignment standards
and methodologies with other MDBs, our workon national and subnational taxonomies andstandards encompasses over 25 countries, acrossSoutheast Asia, Sub-Saharan Africa, Latin America andthe Caribbean, South Asia, Eastern Europe, and the
Middle East and North Africa. A few highlights of thiswork in FY23 include:• Global Guidelines for Blue Finance for structuring,evaluating, and monitoring blue bond issuances andblue loans.
• A report on Deep Blue Opportunities for Blue
Carbon Finance in Coastal Ecosystems, highlighting
the role of tidal wetlands as a potential source of
blue carbon credits.
• In collaboration with the World Bank and Global
Environment Fund (GEF), we launched IFC’s Practices
for Sustainable Investment in Livestock Operations,building on IFC Performance Standards that areespecially relevant to the livestock sector, andinclude the promotion of decarbonization pathways,
enhancement of climate resilience of operations andprevention of the loss of biodiversity.
• The Sustainable Banking and Finance Network(SBFN), of which IFC is the Secretariat, launched
the SBFN Toolkit: Developing Sustainable FinanceRoadmaps, in May 2023.
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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

To support our clients in implementing robust systems,
we have done substantial work on promoting
standardization and comparability across suchframeworks. In FY23, IFC published its first joint
research report and accompanying tools with the
Equator Principles Association entitled “Promoting
Interoperability Across Environmental and Social
Risk Management Frameworks — How the IFC
Environmental and Social Performance Standards andWorld Bank Group Environmental, Health and Safety
Guidelines Align with the EU Taxonomy’s ‘Do No
Significant Harm’ and Minimum Safeguards Criteria.”
Capacity Building. IFC recognizes that bringing ourclients along on the climate journey will be critical tomanaging our climate risk, engaging in new business
opportunities, and implementing our overarchingclimate strategy. To do so, we work closely withour clients in both real and financial sectors to build
capacity on key topics.
We have issued IFC Green Bond Procedures, a Guide
to Green Bond Issuance for Financial Institutions
and work extensively through our Green Bonds
Technical Assistance Program (GB-TAP) to provide
technical assistance to financial institutions on green
bond issuances and deliver global public goods througha range of activities and initiatives. To date, GB-TAP
has trained over 1,000 professionals from over 300
financial institutions across over 70 emerging market
countries and stimulated more than $2.1 billion ingreen bonds and $3.4 billion in social and sustainability
bonds. The GB-TAP continued to offer online training
in partnership with the International Capital Market
Association and several partner universities.
Our in-house expertise helps us develop several
business tools and systems over the years to build
client capacity. For example, our Climate Assessment
for Financial Institutions (CAFI)1 platform helps ourclient financial institutions assess the climate eligibilityof their investments and estimate the development
impact of their climate-related activities. By the third
quarter of FY23, 252 active climate partner financial
institutions were registered to use the tool and over

$14.4 billion in climate finance was monitored andreported through CAFI. We are applying lessons
from a decade of work through IFC’s Excellence in
Design for Greater Efficiencies (EDGE) Green Building
certification system to expand to green cities throughthe Advanced Practices for Environmental Excellence inCities program.

we are helping to develop a potential future pipeline of
low carbon and climate resilient investments in both
real and financial sectors.

In FY23, IFC conducted more than 16 Paris Alignment
training sessions reaching 800 staff across IFC’s
regions and sectors and intends to conduct several
more in FY24. Through this training, IFC has provided
internal guidance materials to support capacity
building, including Paris Alignment assessment
questionnaires, case studies, and factsheets. We havedeveloped tools, guidance notes, and training forinvestment staff to communicate and guide clients onaligning with the Paris Agreement. These measures will
help our clients in emerging markets to improve theirclimate risk management capacity and enable them toreport in line with the recommendations of the TCFD.

In addition to expanding its existing climate business,
IFC continues to target new areas of climate-smart
growth using innovative tools and solutions.

Supported by the governments of Japan and theNetherlands, IFC has developed and delivered
virtual climate training to 90 staff in three financial
institutions to improve capacity in managing climate
risk and leveraging climate opportunities. Through the
TCFD for Financial Institutions advisory program,
we have delivered training on climate risk to almost
3,500 participants to help banks that are ready tointegrate climate into their governance, strategy,
risk management, and metrics and targets per therecommendations of the TCFD.
IFC’s Green Banking Academy trains financial
institutions on the four pillars of a green bank(eco-efficiency, environmental risk management,
green products and services, and green strategic
commitment) and offers a green finance certificate toprofessionals.
These programs not only help us build capacity for IFC
clients but also let us set and raise market standards on
climate finance, climate risk management, issuance ofgreen bonds, and other important topics. In this way,

Exploring Creative Solutions toTarget New Areas of Growth

Building a Pipeline of Low-Carbon and Resilient
Projects. IFC’s Upstream units are embedded acrossindustries and regions to lay the groundwork forinvestment opportunities within a three-to-five-year
horizon. In the last year, IFC has prioritized climaterelated business development through Upstream andrelated activities such as scaling up climate financeby greening the financial sector and catalyzing apipeline of green investments in target markets. IFC
is also investigating business models for Upstream
activities in adaptation and resilience. Upstream
activities consist of pre-investment work in three
categories, often in collaboration with the World Bankand MIGA: (i) creating markets (regulatory reform or
standard setting), (ii) creating opportunities (throughtechnical assistance to private sector clients), and (iii)
crystalizing opportunities (project risk structuring
and investor mobilization). IFC’s management team isregularly updated on the climate share of the Upstream
pipeline, allowing a line of sight on green business
opportunities.
Sustainability-Linked Finance. We are helping
our clients green their operations based on a clearly
identified decarbonization roadmap with innovative
financial arrangements. In FY23, IFC continued its
sustainability-linked financing by investing 3.75 billion
Indian rupees (about $50 million) for IFC’s own accountin a sustainability-linked bond issued by Tata Cleantech
Capital Limited (TCCL) in India to increase financing forrenewable energy projects and diversify its on-lending
into the energy efficiency and e-mobility sectors overthe next three years. This is the first such instrument

1. IFC, with donor support, created the CAFI platform, a transparent algorithm harmonized with other MDBs to support the tracking of growing climate finance volumes of IFC client banks and other MDBs to which IFC
selectively licenses the tool.

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

issued by a private financial institution in India and will
support the country’s shift to a clean energy economy.
Under the structure, TCCL will benefit from a reduction
in coupon rate should it achieve the key performanceindicator targets as set under its sustainability
performance targets.
Country Climate and Development Reports. In
FY23, IFC, the World Bank, and MIGA continued tostrengthen the Country Climate and Development
Report (CCDR) as a diagnostic tool, and lead thedevelopment of the CCDRs, along with support fromthe IMF, and active engagement with the private
sector, government counterparts, academia, thinktanks, and civil society organizations. In FY23, theWorld Bank Group published 23 CCDRs covering 27
countries. The CCDRs aim to (i) integrate climatechange and development considerations and help
client countries prioritize the most impactful actions
that can reduce greenhouse gas (GHG) emissions andboost adaptation; (ii) explore opportunities, reforms,
and policy instruments to leverage private sector
resources and solutions for both climate change
adaptation and mitigation; and (iii) inform World Bank
Group country engagement products, including IFC’s
Country Private Sector Diagnostics. These reports
will form the foundation for building internal climate
capacity, engaging in market development activities,
and integrating climate opportunities and risks into thecore strategic decisions.
Industry-Specific Decarbonization Strategies.
IFC has been conducting deep dives to embed climate
into sectoral strategies for high-emitting sectors likechemicals and power. IFC’s focus on manufacturing
has evolved to be centered around carbon abatement,
industry transition to lower carbon pathways, greeningof supply chains, waste reduction, and circularity.
A core aspect of this strategy is to ensure that ourinvestment evaluation takes a nuanced approachto the development status, needs, and economic
complexity of a country. In subsectors where full
GHG abatement is not possible (heavy industries),
we focus on climate transition and lower carbon
pathway approaches. These pathways make explicit
the steps to be taken by clients during the tenor of

IFC financing to support the reduction of their GHG
emissions over the project lifetime by incorporating
innovative technologies, practices, or knowledge, andmanaging carbon lock-in and stranded asset risk. We
have developed comprehensive sector strategies androadmaps for key sectors, such as chemicals, and aredeveloping more for circular economy, construction
materials, electric vehicles value chain and battery
manufacturing value chain.
Biodiversity Finance and Nature-Based Solutions.
IFC recognizes that climate and biodiversity are deeplyinterlinked and managing the risks and opportunities
for one is incomplete without addressing the other.
This principle is enshrined within the CCAP for FY 202125, and we are working to articulate the business casefor biodiversity finance and nature-based solutions forboth climate mitigation and for green infrastructure
solutions. We continue to engage with stakeholders
on this issue, intend to grow our own biodiversity
finance business, and contribute to the growth of
the biodiversity finance market globally. IFC is anactive member of the Network of Central Banks andSupervisors for Greening the Financial System (NGFS)
Working Group on Nature and the World Economic
Forum Working Group on Biodiversity Credits andis engaged with other MDBs through the Nature
Heads and Climate Heads fora. We sit on the Advisory
Committee on Resource Mobilization established by
the UN Secretariat of the Convention on Biological
Diversity. IFC was an early member of the Informal
Working Group that shaped the Task Force on NatureRelated Financial Disclosures (TNFD), and we continue
to be a part of the TNFD Forum with organizations
that recognize the impetus for and opportunity inbiodiversity finance. IFC is currently assessing its own
capabilities on reporting along TNFD guidelines andhelping clients do the same, pending finalization of theframework expected in calendar year 2023.
In FY23, IFC developed and launched the world’s first
Biodiversity Finance Reference Guide, which builds upon
the Green Bond Principles and Green Loan Principles
and provides an indicative list of investment projects,
activities, and components that help protect, maintain,
or enhance biodiversity and ecosystem services, as wellas promote the sustainable management of natural
resources. This reference guide helps IFC and otherinvestors identify investment activities that generatebiodiversity co-benefits, support nature restorationand conservation, and integrate nature-based
solutions into infrastructure projects. IFC has also
updated the guide to map the investment activities tothe targets in the Global Biodiversity Framework.
Private Capital Mobilization and Bond Issuances.
IFC’s Treasury Operations: IFC is one of the earliest
issuers of green bonds, having launched a Green Bond
Program in 2010 to help catalyze the market andunlock investment for private sector projects that
support renewable energy and energy efficiency. In
FY23, IFC raised $2 billion in green bonds across 20
trades in six different currencies.
In FY23, IFC issued its first green bond in the Australian
dollar market, raising 900 million Australian dollars
for climate-friendly projects, which is the largest
Australian dollar green bond issued by a multilateraldevelopment bank in 2022 and is also IFC’s largest“Kangaroo” transaction in over a decade. The proceedsof the bond will be earmarked for climate-smart
projects, including clean energy, energy-efficientbuildings, transport, green banking, agriculture, andclimate adaptation in developing economies.
Resilience of Strategy (Scenario Analysis). IFC
continues to develop an approach to ensure theresilience of our business in the face of physical andtransition impacts of climate change. We engage
with MDBs, financial institutions, industry specialists,
consulting firms and other stakeholders on the mostappropriate factors, indicators, tools, scenarios, anddata sources to deploy. While we work to develop acohesive methodology and strategy to fully integrate
climate risk into our overall risk management, in theinterim we are trying to build resilience at different
levels of our business:• Project and asset level. IFC has begun to

implement several interim bottom-up measures toensure the resilience of our investments. Many ofthese have been integrated into our Paris Alignment
approach and implementation — individual assets and

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ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report

RISK MANAGEMENTSPOTLIGHT:

Private Capital Mobilization
through the Managed
Co-Lending Portfolio
Program One Planet
Climate transition has created opportunities for
IFC to develop innovative structures to attract
and mobilize private capital from institutional
investors leveraging IFC’s environmental, social, andcorporate governance (ESG) practices. At COP26,
IFC announced its intention to develop MCPP One
Planet, the world’s first portfolio of Paris Aligned

Letter to the Board of Governors

emerging market senior loans. $2.5 billion have beenraised to-date from three investors for One Planet
which was operationalized in September 2022. Under
this platform IFC shares with investors enhanced
impact reporting, mapping to the Sustainable
Development goals, assisting the investors totangibly demonstrate their contributions to theclimate agenda and development more broadly.
In addition, One Planet also provides enhanced
ESG risk reporting on underlying investments
to assist investors in meeting the “do no harm”
disclosure requirements resulting from a growing
body of regulation, such as the Sustainable Finance
Disclosure Regulation (SFDR) in the EU. In FY23, IFC
committed $1.75 billion with borrowers under the
One Planet program.

Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

projects are assessed using tools that incorporate
climate scenarios. We are evaluating the resilienceof our portfolio by considering carbon lock-in risk,
potential stranded asset risk, and exposure tophysical climate risks in of our investments, in alonger time horizon than simply our project tenor.
With each project now assessed for both mitigation
as well as adaptation and resilience components ofParis Alignment, IFC is building a green, low-carbon,
climate resilient portfolio.
• Portfolio and balance sheet level. IFC continues
to explore approaches to integrating climate risk
into our overall risk-management framework. Our
portfolio mainly comprises unlisted, private clientsin emerging markets, which limits the applicabilityof existing tools, climate data, and approaches
available today in the market. In FY23, IFC piloted
an approach to conduct an exploratory transition
scenario analysis on selected clients in sectors withpotentially material high-risk exposure to transition
risk such as the oil, gas, mining, and power sectors.
This exercise leveraged the scenario framework of theCentral Banks and Supervisors Network for Greening
the Financial System (NGFS) and industry-based
emissions intensity data, and assessed the financial,credit risk, and market risk impact to their portfolios.
A bottom-up approach was taken to project eachselected client’s financial statements over several
time horizons under different climate scenarios andseveral assumptions.

What’s New?
• 100 percent physical climate risk screening for
all IFC’s operations in real sectors with tools,
methodologies, and approaches in place.
• Physical and transition risk incorporated into Paris
Alignment approaches and roll-out.

The Climate Business Department conducts andsupports assessment of transition and physicalclimate risk in investment projects. It also works withmainstream investment and business development
teams to identify low-carbon investment opportunities
and align operations with the Paris Agreement
through its industry sector experts, climate financeprofessionals, and policy team. It develops and helps
implement and monitor tools and approaches such ascarbon pricing and climate project tagging.
Integrating Risk Assessment in Paris Alignment
Frameworks. In FY23, IFC integrated our existingclimate-risk management of both physical andtransition risk into IFC’s Paris Alignment frameworks.
IFC’s systems were updated to enhance accurate
documentation, calculations, and reporting of climate
volume and climate percentages of projects. We
also equipped our IT systems with Paris Alignmenttransaction-based assessment questions to evaluate
adaptation risk for all projects and mitigation-related
risk for all financial institution projects.
Physical Risk.2 During project appraisal, IFC’s
project teams assess potential direct and indirect
effects that climate-related impacts may have on
the project’s financial, environmental, and social
performance. Potential risks are further explored and,
where necessary, addressed and mitigated througha variety of measures that may include operationalor CAPEX interventions. Physical risk screening for

2. Physical risks are those resulting from disruptions and impacts of climate change-related events and can be both acute and chronic. Examples of physical risks include droughts, floods, increasing sea levels, risingtemperatures, and other factors that may have an impact on supply chains, operational capacity, damage to physical assets, and other aspects of the business.

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ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

IFC’s projects has been integrated into the adaptation
and resilience (BB2) component of Paris Alignment,
whose assessment poses explicit questions on
exposure to climate risk and potential opportunities,
measures for climate risk mitigation, levels of residual
risk after adaptation, potential for maladaptation,and consistency with national contexts for climate
resilience. IFC has developed general guidance andSectoral Notes for the assessment of physical risk
and alignment with the adaptation and resilience
component of the Paris Agreement, for all projects
with defined use of proceeds across all sectors.
IFC is operationalizing Paris Alignment through IFC’s
Climate Risk Portal, a one-stop-shop platform used by
IFC teams to identify and manage the exposure andvulnerabilities of potential projects to physical climate
risks. The portal comprises the Geoviewer tool and
Sectoral Climate Risk Screening toolkits and is used toassess over 400 new investments annually.

• The GeoViewer tool assesses a project’s exposure toclimate hazards based on its location and provides
investment teams a comprehensive high-levelclimate exposure and risk assessment for adaptation
and resilience. It uses over 50 climate indicatorsand provides data on potential hazards for four
different time horizons based on two Representative
Concentration Pathway scenarios for 50th and 66th
percentile probability.
• IFC has developed Sectoral Climate Risk Screening
Toolkits to screen projects in Airports, Roads,
Railways, Mass Transport, Ports, Insurance, Financial
Institutions, Forestry, and other sectors for exposure
to physical climate risk. In addition, in FY23, IFC
developed climate risk sectoral notes covering
all sectors that IFC invests in, and which provide
granular sector and sub-sector specific guidance
for the systematic screening of physical risk andadaptation assessment.
Transition Risk.3 This bottom-up approach toevaluating each project’s emissions and a commitment
to climate finance has allowed IFC to develop a robust

and climate resilient portfolio over time. As a result, IFC
has limited or no exposure to fossil fuels, coal power
generation and upstream oil and gas investments. The
majority of IFC’s power sector investments are now inthe renewables sector.
IFC has also developed a Green Equity Approach (GEA)
to help our financial sector clients take on ambitious
commitments to reduce coal in their portfolio andcontinue to do business in a changing climate. This
more formalized approach and its application to equity,
sub-debt, and convertible loans is consistent with theParis Agreement. As part of our efforts to address
climate risks and minimize indirect exposure to coalrelated projects, IFC does not provide loans to financial
institutions for coal-related activities. Since January 1,
2023, IFC has required a commitment from FI clients to
not originate and finance any new coal projects fromthe time IFC becomes a shareholder. To further reduce
exposure to coal, IFC does not provides generalpurpose loans to financial institutions. Targeted loans
are directed to key strategic sectors such as micro,
small, and medium-size enterprises, women-owned
businesses, climate-related projects, and housing
finance. The use of proceeds is disclosed on IFC’s
Project Information Portal. Through the GEA, IFC seeks
to help our financial institution clients increase theirclimate lending and reduce their exposure to coalrelated projects.
IFC calculates and discloses in the Environment andSocial Review Summary (ESRS) the emissions for all
real-sector projects with annual emissions of over
25,000 metric tons of carbon dioxide equivalent(mtCO2e). IFC’s experience with climate finance has
enabled us to ensure that our projects are evaluatedfor and use best available technologies that reduce
emissions and enhance climate resilience to thedegree possible.
IFC continues to use carbon pricing as a measure to
manage transition risk and avoid stranded assets.
Since May 2018, a carbon price has been included in
the economic analysis of project finance and corporateloans with defined use of proceeds in the cement,chemicals, and thermal power generation sectors,
where estimated annual project emissions are over
25,000 tons of carbon dioxide equivalent. IFC includes
the impact of the carbon price on the project’s
economic performance and viability in its Board papers.
The price levels continue to be consistent with theHigh-Level Commission on Carbon Prices and with theWorld Bank. Where applicable, carbon pricing is also
integrated into our Anticipated Impact Measurement
and Monitoring framework and will become a standard
part of Paris Alignment assessments for mitigation for
all projects with annual emissions greater than 25,000
tons of carbon dioxide equivalent.
As noted above, IFC incorporates transition risk
into our Paris Alignment process, particularly for
the Mitigation component. The assessment processincludes analysis of consistency with NDCs, longterm strategies, and regional, national, and sectoral
policies on climate change to mitigate policy risk. It
also explicitly includes analysis of stranded asset andcarbon lock-in risk as criteria for evaluation of Paris
Alignment for IFC projects. We continue to develop
measures to deepen our assessment and managementof transition risk.
IFC has mapped decarbonization pathways forhard-to-abate sectors such as chemicals and mining
and continues this work for other carbon-intensive
sectors. Our counterparty-based approach for Paris
Alignment of financial intermediaries and corporates
also requires clients to commit to decarbonization
pathways and better climate-related risk management,
where needed.
Enhancing Clients’ Climate Risk-Management
Capacity. IFC offers a range of technical climate
assistance, advisory, and investment services according
to the client’s level of maturity and readiness forinvestment. This includes capacity building support forclimate risk assessment and management to supportalignment with the goals of the Paris Agreement.

3. Transition risks are those faced by investors as part of the global shift to a low-carbon economy. Examples of transition impacts include changes in climate and energy policies, a shift to low-carbon technologies,changes in consumer preferences, and reputation and liability issues. Transitional impacts can vary substantially depending on scenarios for policy and technology changes.

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ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

We have developed and continue to expand training on
climate risk management and TCFD for both financial
institutions and real sector companies. IFC is working
with stock exchanges to help them develop disclosure
guidelines for listed entities, and we have developed an
executive training program with the UN Sustainable
Stock Exchange to help emerging market banks
understand, identify, and manage climate risk. IFC is
the Secretariat of the Sustainable Banking and FinanceNetwork of central banks and regulators, which is
helping banks in member countries to implement
the recommendations of the TCFD as well as develop
national green taxonomies.
IFC continues to use the CAFI tool to improvetransparency in climate reporting by the financial
services industry, assess the climate eligibility of ourinvestments, and estimate the development impact ofour climate-related activities. In FY23, IFC enhanced
the functionality of the CAFI tool by linking it to
IFC’s EDGE database for green buildings, to enable
users to automatically import data on green building
project impact, thereby improving the efficiency andreliability of the tool. The tool was also updated toreflect the most recent Common Principles for Climate
Finance Mitigation Tracking, exponentially increasing
its efficiency and usage across both investment andadvisory financial intermediary projects.

METRICS AND TARGETS

What’s New?
• Climate investments comprise 46 percent of IFC’s
own-account FY23 commitments.
• 90 percent of new real sector projects and 100
percent of new financial sector projects with known
use of proceeds were assessed for Paris Alignment
at the concept review stage.

At IFC, climate-tagged investments are those that
reduce GHG emissions or increase climate resiliency,
as measured by the Joint MDB Methodology for
Climate Finance Tracking, which is regularly updated
to account for the evolving market context, limit
climate-related risks, and take advantage of new
climate opportunities. IFC has been actively involvedin the development and updating of the methodology
for both mitigation and adaptation. IFC has applied
this updated methodology across its operations
since July 2021. The revised metrics include detailed
criteria and guidance across sectors. In October 2021,
the methodology was published as the Common
Principles for Climate Mitigation Finance Tracking,which are applied to the operations of all MDBs,
including IFC. To improve climate finance tracking,
the Common Principles are updated every two years
jointly by the MDBs and members to incorporate theirexperiences and address comparability of reporting
processes. IFC is leading the midterm update of theCommon Principles for Climate Mitigation FinanceTracking, which are due to be published at the end of2023. IFC has also developed internal climate financemethodologies to expand upon and interpret theCommon Principles in the context of our business, suchas the Climate Smart Agriculture approach and the
Excellence in Design for Greater Efficiencies (EDGE)
Green Building certification.

For tracking adaptation finance, IFC applies the JointMDB Methodology for Adaptation Finance, which wasreviewed and updated by MDBs over the 2021-2022
period. IFC is also exploring the potential of additional
metrics for adaptation and resilience finance, which
would measure the outcomes of resilience investments
and interventions.
Climate Finance Targets & Results. In FY23, IFC’s
climate investments 4 comprised 46 percent of total
own-account commitments, exceeding the corporate
target of 35 percent. For additional details, please refer tothe Strategy section of this TCFD report. The IFC corporate
target is translated to departmental and regional
climate business targets. In institutional departmental
scorecards, IFC reports against the 35 percent target ofclimate projects as a percentage of long-term financeown account commitments.
Paris Alignment Targets & Results. As stated earlier,
IFC committed to aligning 85 percent of all new
investments with the goals of the Paris Agreement
starting July 1, 2023, and 100 percent of these startingon July 1, 2025. Meeting Paris Alignment targets ispart of the corporate performance scorecard for the
Climate Business Department. IFC’s Paris Alignment
assessment covers both mitigation (greenhousegas) and adaptation (risk and resilience) goals of theParis Agreement. For mitigation, the methodology
covers Scope 1 and 2, and Scope 3 where significant.
Assessments are conducted at the concept
development stage to ensure that the principles ofParis Alignment are enshrined at the earliest stages ofproject development.
In FY23, IFC screened 90 percent of eligible real-sector
projects with defined use of proceeds at concept stage
for alignment with the Paris Agreement. Similarly,
IFC exceeded its target by assessing and aligning 100
percent of eligible financial sector projects, amounting
to 111 projects with defined use of proceeds, of which 47
were committed in the last fiscal year. The corporationis committed and on track to achieve both 2023 and2025 targets for real and financial sector operations.

4. IFC’s Definitions and Metrics for Climate-Related Activities identifies projects and sectors that qualify as climate investments; these definitions are harmonized with other multilateral development banks.
https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/climate+business/resources/ifc-climate-definition-metrics

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IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

Investment Disclosure. IFC reports climate financecommitments in this annual report and in the Joint
Report on Multilateral Development Banks’ Climate Finance.
In our annual Green and Social Bond Impact Report, IFC
also reports on the expected environmental impact
of projects financed through the green bonds that
IFC issues. The IFC Green Bond Program follows bestpractices and the Green Bond Principles, a voluntary
set of guidelines for transparency and disclosure. IFC’s
Green Bond Program has been reviewed by the Center
for International Climate and Environmental Researchat the University of Oslo (CICERO), now a part of the
S&P Global, which provided a second opinion on IFC’s
framework and guidance for assessing and selecting
eligible projects for green bond investments. As asignatory of the Principles for Responsible Investment(PRI), IFC is mandated to report under PRI’s TCFDaligned indicators.
Emissions Calculations. IFC continues to estimate
and report aggregate GHG emissions reductions
from IFC investments (Scope 3 emissions). Throughthe IFI GHG Accounting Group, IFC works with theUnited Nations Framework Convention on Climate
Change (UNFCCC), other MDBs, some commercial
banks, and bilateral DFIs to harmonize Standards for
GHG accounting. This includes development of GHG
accounting methodologies and standard emission
factors for power grid GHG emissions in more than 100
countries. IFC applies the IFI Harmonized Approach to
GHG Accounting and IFI sector-specific approaches,
where available, to estimate absolute, baseline andrelative ex-ante GHG emissions where use of proceeds
is defined. IFC estimates gross GHG emissions for all
real sector projects with emissions over 25,000 metrictons of carbon dioxide equivalent, and net emissions
on a project-by-project basis for real sector projects
where possible. IFC continues to disclose ex-ante
aggregate estimated annual gross GHG emissions
through the publicly available Environmental and Social
Review Summary,5 and project level emissions throughthe Project Disclosure Portal in support of the review
of projects and clients under Performance Standard 3.

In FY23, IFC transferred responsibility for the
calculation of ex-ante absolute GHG project emissions
from the E&S Department to the Climate Business
Department to consolidate climate-related metrics in
one team. This involved working through the project
cycle to improve climate knowledge management andmerge processes for Paris Alignment, GHG accounting,climate finance, and climate impact data assessment
for every investment. The objective is to ensure
more consistent, robust ex-ante GHG estimates anddisclosures using methodologies that are both feasible
and practical for implementation in the real world toeventually facilitate ex-post GHG data.
IFC continues to provide guidance and resources
to build capacity in emerging markets throughpublications such as Technical Guidance for Financial
Institutions — Assessment of Greenhouse Gases toguide financial institutions in the disclosure of GHG
emissions.
IFC Corporate. IFC has been carbon neutral in all ourbusiness operations including business travel (Scope
1 and 2 emissions) since FY2009. Prior initiatives havecut energy use in IFC’s headquarters by 18 percent
including installing lighting occupancy sensors,
adjusting building-wide heating and cooling set points,
and reducing an hour of heating, cooling, and lighting
standard operations for the facility. In FY2019, IFC set
a global, internal carbon-reduction commitment to
cut our facility-related emissions (Scope 1 and 2) by
20 percent by 2026, from a 2016 baseline. This target
is in line with the World Bank Group’s commitment
to reduce facility-related emissions by 28 percent
over the same period. All remaining emissions arecompensated via carbon offsets. More information,
visit: www.ifc.org/en/about/corporate-responsibility

5. IFC Project Information & Data Portal. https://disclosures.ifc.org/#/landing.

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ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability

Essential
Information
The information in this annex will appear in
our online report.

Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits67

OUR PEOPLE & PRACTICES

67 Compensation and Benefits
68 Financial Commitments to IFC Trust Funds

Reporting Under the Task Force on
Climate-related Financial Disclosures

69 Funding

Compensation and Benefits

70 Financial Performance Summary

Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

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IFC 2023
ANNUAL REPORT

Compensation and Benefits

LEADERSHIP PERSPECTIVES

Ensuring competitive compensation and benefits, IFC applies the World Bank Group’s compensation framework.
Competitive compensation is essential to attract and retain a highly qualified, diverse staff. Salaries for staff
recruited in Washington, D.C. are based on the U.S. market. Salaries for staff hired outside the United States are
based on local competitiveness as determined by independent local market surveys. Given the World Bank Group’s
status as a multilateral organization, staff salaries are determined on a net-of-tax basis.

RESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability
Accountability and Oversight

As of June 30, 2023, the salary structure (net of tax) and annual average net salaries/benefits for World Bank Group
staff were as follows:

Staff Salary Structure and Benefits (Washington, D.C.)

Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected

MAXIMUM(US$)

AVERAGEBENEFITSa(US$)

GRADESGA

Office Assistant31,30044,70058,1000.01%

44,62021,216

GB

Team Assistant, Information
Technician

37,10053,00068,9000.04%

48,41523,020GC

Program Assistant, Information
Assistant

45,40064,90084,4004.83%

67,73232,205

GD

Senior Program Assistant,
Information Specialist, Budget
Assistant

54,10077,300100,500

5.68%

82,76539,353Compensation and Benefits
Financial Commitments to
IFC Trust Funds

MIDPOINT(US$)

AVERAGESALARY/
GRADE
(US$)

REPRESENTATIVEJOB TITLES

Credits
Reporting Under the Task Force on
Climate-related Financial Disclosures

MINIMUM(US$)

STAFF ATGRADELEVEL (%)

GE

Analyst74,100105,900

137,700

9.51%

97,64046,425

GF

Professional

98,300140,500

182,700

23.61%

127,171

60,466

Funding

GG

Senior Professional

127,600

182,300

237,000

38.93%

178,089

84,677

Financial Performance SummaryGHManager, Lead Professional

171,800

245,500

319,200

14.75%

249,956

118,848

GI

Director, Senior Advisor

259,900

324,900

389,900

2.22%

324,889

154,477

GJ

Vice President

316,000

371,800

427,600

0.36%

379,286

180,341

GK

Managing Director, Executive Vice
President, Senior Vice President

351,300

413,300

475,300

0.07%

431,211

170,666EXECUTIVE COMPENSATIONThe salary of the President of the World Bank Group isdetermined by the Board of Directors.
The salary of the IFC Managing Director is determinedbased on the U.S. WB salary structure and positioned
in the salary range for the GK grade. The executive
salary structure is reviewed annually and updated
based on the U.S. labor market movement or IMF’s
projected U.S. CPI movement, whichever is lower.
The compensation of our executive leadership istransparent.
IFC MD Makhtar Diop received an annual salary of$437,680 net of taxes.

Note: Because WBG staff, other than U.S. citizens, usually are not required to pay income taxes on their WBG compensation, the salaries are set
on a net-of-tax basis. These salaries are generally equivalent to the after-tax take-home pay of the employees of the comparator organizations
and firms from which WBG salaries are derived. Only a relatively small minority of staff will reach the upper third of the salary range.
a. Includes medical, life and disability insurance; accrued termination benefits; and other non-salary benefits. Excludes tax allowances.

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ANNUAL REPORTLEADERSHIP PERSPECTIVES

Financial Commitments to IFC
Trust Funds (ADVISORY & UPSTREAM, US$ MILLION EQUIVALENT)RESULTSSTRATEGY IN ACTION

Summary

FY23

FY22

Governments

Corporations, Foundations, and NGOs

FY23

FY22

155.75148.94

Bill & Melinda Gates Foundation

7.11

1.00

Institutional/Multilateral Partners

7.70

20.20

Rockefeller Foundation

0.00

5.00

Measuring Up: Our Impact

Corporations, Foundations, and NGOs

7.11

6.00

Total

7.11

6.00

Sustainability

Total

170.56175.14

Accountability and OversightGovernments

FY23

FY22

Diversity, Equity, and Inclusion

Australia

3.86

17.00

Austria

5.22

5.63

Canada4.35

0.00

Letter to the Board of Governors

Czechia

1.00

0.00

Stay Connected

Denmark

0.00

2.65

France2.10

0.00

Governments

FY23

FY22

Germany

0.00

27.85

Canada

68.23

0.00

31.97

0.00

CRITICAL FUNCTIONS

Auditor’s Report

Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds

Financial Commitments to IFC
Trust Funds (BLENDED FINANCE, US$ MILLION EQUIVALENT)

Ireland

1.82

1.08

Germany

Italy

0.27

0.00

Korea, Republic of

10.00

0.00

8.93

Netherlands

44.23

0.00

Switzerland

10.00

0.00

United Kingdom

31.07

13.15

195.50

13.15

Japan

28.35

Korea, Republic of

20.00

0.00

Luxembourg

8.76

0.00

Netherlands

1.00

1.08

Total

Funding

New Zealand

2.68

0.00

Institutional/Multilateral Partners

FY23

FY22

Financial Performance Summary

Norway0.00

2.26

Women Entrepreneurs Finance Initiative (We-Fi)

0.00

2.27

Spain

3.92

0.00

Sweden2.33

6.57

Corporations, Foundations, and NGOs

FY23

FY22

Switzerland

52.10

68.67

Rockefeller Foundation

0.00

25.00

Total

195.5040.42

United Kingdom

14.99

0.51

United States

3.00

6.71

155.75148.94

Institutional/Multilateral Partners

FY23

FY22

European Commission (EC)

4.77

5.55

Global Environment Facility (GEF)

0.00

4.20

Global Infrastructure Facility (GIF)

2.93

1.77

Women Entrepreneurs Finance Initiative (We-Fi)

0.00

8.68

Total

7.70

20.20

Total

IFC ANNUAL REPORT 2023

68

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits

Funding
IFC raises funds in the international capital markets forprivate sector lending and to safeguard IFC’s triple-A
credit ratings by ensuring adequate liquidity. Issuances
include benchmark bonds in core currencies such as
U.S. dollars, thematic issuances to promote strategic
priorities such as addressing climate change, andissuances in emerging-market currencies to support
the development of capital markets. Most of IFC’s
lending is denominated in U.S. dollars, but we borrowin many currencies to diversify access to funding,
reduce borrowing costs, and encourage the growthof local capital markets.

FY23 Total Borrowing
CURRENCYAMOUNT (US$EQUIVALENT)%U.S. dollar

USD

5,220,120,000

38.14%

Australian dollar

AUD

3,671,717,500

26.83%

British pound

GBP

1,147,568,000

8.38%

Hong Kong dollar

HKD

726,431,893

5.31%

New Zealand dollar

NZD

601,772,500

4.40%

Swedish Krona

SEK

497,146,376

3.63%

Canadian dollar

CAD

366,972,477

2.68%

Norwegian Krone

NOK

298,237,466

2.18%

Chinese yuan
(Renminbi)

CNY

219,257,109

1.60%

Romanian Leu

RON

144,860,060

1.06%

Brazilian RealBRL

135,601,113

0.99%

Hungarian forint

HUF

129,213,116

0.94%

Uzbekistani so’m

UZS

99,784,232

0.73%

Mexican peso

MXN

89,386,698

0.65%

Other

338,699,019

2.47%

Total

13,686,767,558

100%

Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

IFC ANNUAL REPORT 2023

69

IFC 2023
ANNUAL REPORT

Financial Performance Summary

LEADERSHIP PERSPECTIVESRESULTSThe overall market environment has a significant influence on IFC’s financial performance. The main elements of IFC’s net income and othercomprehensive income, and influences on the level and variability of net income and other comprehensive income from year to year are:

STRATEGY IN ACTION

Main Elements of Net Income and Other Comprehensive Income

CRITICAL FUNCTIONSELEMENTS

Measuring Up: Our Impact

Net income:Sustainability

Yield on interest earning assets (principally loans)Market conditions including spread levels and degree of competition. Nonaccruals and recoveries of interest on loans formerly innonaccrual status, and income from participation notes on individual loans are also included in income from loans.

Liquid asset income

Realized and unrealized gains and losses on the liquid asset portfolios, in particular the portion of the liquid asset portfolio
funded by net worth, which are driven by external factors such as the interest rate environment and liquidity of certain asset
classes within the liquid asset portfolio.

Income from the equity investment portfolio

Global climate for emerging markets equities, fluctuations in currency markets and company-specific performance for equity
investments. Overall performance of the equity portfolio.

Provision for losses on loans, guarantees, and availablefor-sale debt securities

Risk assessment of borrowers, probability of default, loss given default, and expected balance at default considering prepayment
and disbursement assumption estimates as well as expected utilization rates.

Other income and expenses

Level of advisory services provided by IFC to its clients, the level of expense from the staff retirement and other benefits plans,
the approved and actual administrative expenses, and other budget resources.

Gains and losses on other non-trading financial
instruments accounted for at fair value

Principally, differences between changes in fair values of borrowings, excluding IFC’s credit spread and associated derivative
instruments and unrealized gains or losses associated with the investment portfolio including puts, warrants, and stock options,which in part are dependent on the global climate for emerging markets. These securities may be valued using internallydeveloped models or methodologies, utilizing inputs that may be observable or non-observable.

Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding

SIGNIFICANT INFLUENCES

Financial Performance Summary

Other comprehensive income:Unrealized gains and losses on debt securities accounted
for as available-for-sale

Global climate for emerging markets, fluctuations in currency and commodity markets and company-specific performance, andconsideration of the extent to which unrealized losses are considered a credit loss. Debt securities may be valued using internallydeveloped models or methodologies, utilizing inputs that may be observable or non-observable.

Unrealized gains and losses attributable to instrumentspecific credit risk on borrowings at fair value under the
Fair Value Option

Fluctuations in IFC’s own credit spread measured against reference rate, resulting from changes over time in market pricingof credit risk. As credit spreads widen, unrealized gains are recorded, and when credit spreads narrow, unrealized losses arerecorded.

Unrecognized net actuarial gains and losses andunrecognized prior service costs on benefit plans

Returns on pension plan assets and the key assumptions that underlay projected benefit obligations, including financial market
interest rates, staff expenses, past experience, and management’s best estimate of future benefit cost changes and economic
conditions.
IFC ANNUAL REPORT 2023

70

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESNet income for FY23 was $672 million compared to a net loss of $464 million in FY22, primarily driven byreversal of mark-to-market losses from the previous year and additional interest income in Treasury, as wellas higher income from loans and debt securities. The $1.1 billion increase in FY23 when compared to FY22 wasprincipally a result of the following factors:

RESULTSSTRATEGY IN ACTION

Change in Net Income FY23 vs FY22 (US$ MILLIONS)CRITICAL FUNCTIONS
Measuring Up: Our Impact

1,500

Accountability and Oversight

(25)

1,000

Diversity, Equity, and Inclusion

298

500

Auditor’s Report

57

Letter to the Board of Governors

483

0

(500)

Credits

(500)

Total
Incomefrom Loans
and Debt
Securities**

Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits

Funding

1,136
(106)

111

Stay Connected

Financial Commitments to
IFC Trust Funds

56

762

Sustainability*

Loss
Provision

URG(L)* on
Loans
and Debt
Securities

EquityIncomeURG(L)* on
EquityInvestments

Net
Administrative
Treasury
Expenses &Income**Pensions

URG(L)* on
Borrowings

Others***Change in
Net Income

Unrealized gains (losses).

** Total income from loans and debt securities and net treasury income are net of allocated charges on borrowings.
*** Others mainly represents foreign exchange gains/losses, service fees, and net advisory service expenses.

Financial Performance Summary
Equity investment portfolio returned $191 million
in FY23 compared to $208 million in FY22. The FY23
return comprised dividends ($164 million), realized
gains on sales ($161 million) and unrealized losses($134 million).
Net income from loans, debt securities and associatedderivatives, net of allocated charges on borrowings,
was $1.6 billion in FY23 compared to $1.1 billion in FY22.
Unrealized gains from loans and debt securities were$175 million in FY23 compared to unrealized losses of$123 million in FY22. IFC recorded provisions for losses

of $29 million in FY23 compared to $140 million in
FY22. Included in the FY22 provision was a qualitative
overlay of $135 million, which remained unchanged at
FY23-end.
IFC reported income of $241 million on liquid assets
in FY23, net of allocated charges on borrowings,
compared to a loss of $521 million in FY22. The FY23
treasury income benefited from more favorable
market movements.

IFC’s administrative expenses were $1.2 billion
in FY23 compared to $1.1 billion in FY22, anincrease of $73 million primarily driven byhigher staff costs and higher travel expenses.
Pension expenses decreased by $48 million to$214 million in FY23 from $262 million in FY22.

IFC ANNUAL REPORT 2023

71

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS

IFC’s net income or loss for the past three fiscal years are presented below:

IFC’s Net Income (Loss) FY21–FY23 (US$ MILLIONS)
2021
2022
2023

4,209
(464)
672

Measuring Up: Our Impact
Sustainability
Accountability and Oversight

IFC uses Income Available for Designations (a non-U.S. GAAP measure) as a basis for designations of retained
earnings. Income Available for Designations comprises net income excluding unrealized gains and losses oninvestments and borrowings and grants to IDA in the year ended June 30, 2021.

Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits

Reconciliation of Net Income (Loss) to Income
Available for Designations(US$ MILLIONS)FOR THE YEAR ENDED JUNE 30
Net income (loss)

2023
$

672

$

2022

2021

(464)

$ 4,209(3,285)

Reporting Under the Task Force on
Climate-related Financial Disclosures

Adjustments to reconcile Net income (loss) toIncome Available for Designations

Compensation and Benefits

Unrealized (gains) losses on investments

(41)

740

Financial Commitments to
IFC Trust Funds

Unrealized losses (gains) on borrowings

50

106

(71)

Grants to IDA

–

–

213

382

$ 1,066

Funding

Income Available for Designations

$

681

$

Financial Performance Summary

IFC ANNUAL REPORT 2023

72

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTION

Summary of Financial Results(US$ MILLIONS)FOR THE YEAR ENDED JUNE 30

2023

2022

2021

Consolidated statement of operations highlights:
Income from loans and guarantees, including realized gains and losses on loans and associated derivatives

$

2,290

$

1,156

$

1,116

CRITICAL FUNCTIONS(Provision) release of provision for losses on loans, off-balance sheet credit exposures and other receivables

(22)

(126)

201

Measuring Up: Our Impact

Income from equity investments and associated derivatives

191

208

3,201

Sustainability

Income from debt securities, including realized gains and losses on debt securities and associated derivatives

518

414

340

(7)

(14)

(3)

Income (loss) from liquid asset trading activities

1,464

(413)

327

Diversity, Equity, and Inclusion

Charges on borrowings(2,598)

(302)

(326)

Auditor’s Report

Other income

518

419

595

Letter to the Board of Governors

Other expenses

Accountability and Oversight

Stay Connected
Credits
Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

Provision for losses on available-for-sale debt securities(1,721)(1,653)(1,687)

Foreign currency transaction (losses) gains on non-trading activities

(86)

76

(148)

Income (loss) before net unrealized gains and losses on non-trading financial instruments accounted for at fairvalue and grants to IDA

547

(235)

3,616

Net unrealized gains (losses) on non-trading financial instruments accounted for at fair value

125

(229)

806

Income (loss) before grants to IDA

672

(464)

4,422

–

–

(213)

Grants to IDA
Net income (loss)(US$ MILLIONS)AS OF THE YEAR ENDED JUNE 30

$

672

$

(464)

2023

2022

$

4,209

Consolidated balance sheets highlights:
Total assets$ 110,547$ 99,010

Liquid assetsa

40,12041,717

Investments

51,50244,09352,44348,269$ 35,038$ 32,805$ 11,589$ 10,840

221

298

Borrowings outstanding, including fair value adjustments
Total capitalof which
Undesignated retained earnings
Designated retained earnings
Accumulated other comprehensive income (loss) (AOCI)
Paid-in capital

632

(82)

22,596

21,749a. Net of securities sold under repurchase agreements, payable for cash collateral received and associated derivatives.

IFC ANNUAL REPORT 2023

73

IFC 2023
ANNUAL REPORTKey Financial Ratios

COMMITMENTS

LEADERSHIP PERSPECTIVES(US$ BILLIONS, EXCEPT RATIOS)AS OF THE YEAR ENDED JUNE 30

2023

2022

RESULTS

Overall liquidity ratioa

104%

111%

STRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact

Debt-to-equity ratiob

Total reserve against losses on loans to total disbursed portfolioc

1.6
4.4%

34.8

32.5

Capital measures:
Capital availabled

Sustainability

Capital required

Accountability and Oversight

Capital utilization ratiof

Diversity, Equity, and Inclusion

1.6
3.7%

e

21.1

20.1

60.7%

62.0%

a.Overall Liquidity Policy states that IFC would at all times maintain a minimum level of liquidity, plus
undrawn borrowing commitments from the IBRD, such that it would cover at least 45% of the next three
years’ estimated net cash requirements. IFC’s overall liquidity as a percentage of the next three years’
estimated net cash needs stood at 104% as of June 30, 2023, above the minimum requirement of theBoard of 45%.

Total commitments (Long-Term Finance and ShortTerm Finance) was $43.7 billion in FY23 as compared
to $33.6 billion in FY22. Long-Term Finance (LTF)
Commitments comprise Own Account and Core
Mobilization and totaled $31.7 billion in FY23, an
increase of $8.5 billion or 37% from FY22. IFC’s FY23
LTF Own Account Commitments were $16.7 billion($12.6 billion in FY22) and Core Mobilization was$15.0 billion ($10.6 billion in FY22). Short-Term Finance(STF) Commitments Own Account were $11.0 billion
in FY23 ($9.7 billion in FY22) and Core Mobilization was$996 million in FY23 ($767 million in FY22).

Reporting Under the Task Force on
Climate-related Financial Disclosuresc.Total reserve against losses on loans to total disbursed loan portfolio is defined as reserve against
losses on loans as a percentage of the total disbursed loan portfolio.

In direct response to the COVID-19 pandemic, IFC
committed $4.1 billion in FY23 including $1.0 billion
under its Fast Track COVID-19 Facility in supportof IFC’s existing clients. Outside of the facility, IFC
committed an additional $3.1 billion in financing tosupport clients in response to COVID-19. Since thestart of the COVID-19, IFC committed $8.4 billion under
the Fast Track COVID-19 Facility and an additional$17.0 billion outside of the facility.

Compensation and Benefits

d.Capital available: Resources available to absorb potential losses, calculated as: Balance Sheet Capitalless Designated Retained Earnings.

CORE MOBILIZATION

Financial Commitments to
IFC Trust Funds

e.Capital required: Aggregate minimum Economic Capital required to maintain IFC’s AAA rating.

Auditor’s Report
Letter to the Board of Governors
Stay Connected
Credits

Fundingb.Debt-to-equity (leverage) ratio is defined as outstanding borrowings plus committed guarantees
divided by total capital (comprises paid-in capital, retained earnings and Accumulated othercomprehensive income (loss)). IFC’s debt-to-equity ratio was 1.6 as of June 30, 2023, well within the
maximum of 4 required by the policy approved by IFC’s Board of Directors.

f.CUR is defined as Capital Required divided by Capital Available.

Core Mobilization is financing from entities other thanIFC that becomes available to clients due to IFC’s direct
involvement in raising resources.

Financial Performance Summary

Total Commitments(Own Account and Core Mobilization)(US$ MILLIONS)FOR THE YEAR ENDED JUNE 30

2023

2022

$ 43,729$ 33,591

Long-Term Finance Own Account

16,677

12,569Long-Term Finance Core Mobilization

15,02910,596

Short-Term Finance Own Account

11,027

9,659

996

767

Total Commitments (Own Account and Core Mobilization)

Short-Term Finance Core Mobilization

IFC ANNUAL REPORT 2023

74

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONSAMCIFC Equity Mobilization Department (AMC), invests third-party capital and IFC capital, enabling outside investors to invest alongside IFC indeveloping markets. Investors in funds managed by AMC have included sovereign wealth funds, national pension funds, multilateral and bilateraldevelopment institutions, national development agencies and international financial institutions (IFIs). The Funds managed by AMC and theiractivities as of and for the years ended June 30, 2023 and 2022 are summarized as follows:

Funds Managed by AMC
THROUGH JUNE 30, 2023

Measuring Up: Our Impact

TOTAL FUNDS RAISEDSINCE INCEPTION

Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report(US$ MILLIONS)FOR THE YEAR ENDED JUNE 30, 2023
CUMULATIVEINVESTMENTCOMMITMENTSa

INVESTMENTCOMMITMENTS
MADE BY FUNDb

INVESTMENTDISBURSEMENTS
MADE BY FUND

–

–

TOTAL

FROM IFC

FROM
OTHER
INVESTORS$ 1,275

$ 775

$ 500

$1,214

Post Investment Period
IFC Capitalization (Equity) Fund, LP (Equity Capitalization Fund)

Letter to the Board of Governors

IFC Capitalization (Subordinated Debt) Fund, LP (Sub-Debt Capitalization Fund)

1,725

225

1,500

1,614

–

–

Stay Connected

IFC African, Latin American and Caribbean Fund, LP (ALAC Fund)

1,000

200

800

864

–

–

Credits

IFC Catalyst Fund, LP, IFC Catalyst Fund (UK), LP and IFC Catalyst Fund
(Japan), LP (collectively, Catalyst Funds)

418

75

343

363

–

8

902

–

–

Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds

IFC Global Infrastructure Fund, LP (Global Infrastructure Fund)

c

1,430

200

1,230

IFC Global Emerging Markets Fund of Funds, LP and IFC Global Emerging
Markets Fund of Funds (Japan Parallel), LP (collectively, GEM Funds)

800

150

650

757

–

86

Women Entrepreneurs Debt Fund, LP (WED Fund)

115

30

85

110

–

–

162

60

102

86

4

8

1,200

–

1,200

362

–

10

IFC Middle East and North Africa Fund, LP (MENA Fund)
China-Mexico Fund, LP (China-Mexico Fund)

Funding

IFC Financial Institutions Growth Fund, LP (FIG Fund)

505

150

355

344

–

3

Financial Performance Summary

IFC Emerging Asia Fund, LP (Asia Fund)

693

150

543

573

16

97

9,323

2,015

7,308

7,189

20

212

Africa Capitalization Fund, Ltd. (Africa Capitalization Fund)

182

–

182

130

–

–

IFC Russian Bank Capitalization Fund, LP (Russian Bank Cap Fund)

550

250

300

82

–

–

Post Investment Period Total

Liquidated Funds

Liquidated Funds Total
Grand Total

732

250

482

212

–

–

$10,055$2,265$7,790$7,401$20$212

a. Net of commitment cancellations.
b. Excludes commitment cancellations from prior periods.
c. Includes co-investment fund managed by AMC on behalf of Fund LPs.

IFC ANNUAL REPORT 2023

75

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVES

Funds Managed by AMC

RESULTS

THROUGH JUNE 30, 2022
TOTAL FUNDS RAISEDSINCE INCEPTIONSTRATEGY IN ACTIONCRITICAL FUNCTIONS
Measuring Up: Our Impact
Sustainability
Accountability and Oversight
Diversity, Equity, and Inclusion
Auditor’s Report
Letter to the Board of Governors(US$ MILLIONS)FOR THE YEAR ENDED JUNE 30, 2022

TOTAL

FROM IFC

FROM
OTHER
INVESTORS

505

$ 150

$ 355

CUMULATIVEINVESTMENTCOMMITMENTSa

INVESTMENTCOMMITMENTS
MADE BY FUNDb

INVESTMENTDISBURSEMENTS
MADE BY FUND

$ 347

$ 90

$ 138

Investment Period
IFC Financial Institutions Growth Fund, LP (FIG Fund)$IFC Emerging Asia Fund, LP (Asia Fund)
Investment Period Total

693

150

543

559

187

197

1,198

300

898

906

277

335

1,275

775

500

1,214

–

–

Post Investment Period
IFC Capitalization (Equity) Fund, LP (Equity Capitalization Fund)

Stay Connected

IFC Capitalization (Subordinated Debt) Fund, LP (Sub-Debt Capitalization Fund)

1,725

225

1,500

1,614

–

–

Credits

IFC African, Latin American and Caribbean Fund, LP (ALAC Fund)

1,000

200

800

864

–

–

418

75

343

363

–

7

929

–

–

Reporting Under the Task Force on
Climate-related Financial DisclosuresCompensation and Benefits
Financial Commitments to
IFC Trust Funds
Funding
Financial Performance Summary

IFC Catalyst Fund, LP, IFC Catalyst Fund (UK), LP and IFC Catalyst Fund
(Japan), LP (collectively, Catalyst Funds)
IFC Global Infrastructure Fund, LP (Global Infrastructure Fund)

C

1,430

200

1,230

IFC Global Emerging Markets Fund of Funds, LP and IFC Global Emerging
Markets Fund of Funds (Japan Parallel), LP (collectively, GEM Funds)

800

150

650

757

–

117

Women Entrepreneurs Debt Fund, LP (WED Fund)

115

30

85

110

–

–

162

60

102

82

4

13

China-Mexico Fund, LP (China-Mexico Fund)IFC Middle East and North Africa Fund, LP (MENA Fund)

1,200

–

1,200

362

47

47

Post Investment Period Total

8,125

1,715

6,410

6,295

51

184

Africa Capitalization Fund, Ltd. (Africa Capitalization Fund)

182

–

182

130

–

–

IFC Russian Bank Capitalization Fund, LP (Russian Bank Cap Fund)

550

250

300

82

–

–

Liquidated Funds

Liquidated Funds Total
Grand Total

732

250

482

212

–

–

$10,055$2,265$7,790$7,413$328$519

a. Net of commitment cancellations.
b. Excludes commitment cancellations from prior periods.
c. Includes co-investment fund managed by AMC on behalf of Fund LPs.

IFC ANNUAL REPORT 2023

76

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONS

On the back cover: Aerial photo of a cutting-edge
rice-processing facility that entrepreneur Mamounata
Velegda is building that aims to position Burkina Faso as
a leading regional rice producer. Her venture is financed
by IFC client, Coris Bank International.

IFC 2023
ANNUAL REPORTLEADERSHIP PERSPECTIVESRESULTSSTRATEGY IN ACTIONCRITICAL FUNCTIONSInternational Finance Corporation
2121 Pennsylvania Avenue, NW
Washington, DC 20433 USA
ifc.org