Carbon Neutral Commitment for IFC’s Own Operations
IFC, along with the World Bank, are committed to making our internal business operations carbon neutral by:
1.
2.
3.

Calculating greenhouse gas (GHG) emissions from our operations.
Reducing carbon emissions through both familiar and innovative conservation measures.
Purchasing carbon offsets to neutralize our internal carbon footprint after our reduction efforts.

IFC’s Carbon Neutrality
Commitment is an integral
part of its corporate
response to climate change.

IFC’s carbon neutrality commitment encourages more efficient business operations that help mitigate climate change. It is also consistent with IFC’s
strategy of guiding our investment work to limit climate change and ensure IFC’s projects are environmentally and socially sustainable. This factsheet
focuses on the carbon footprint of our internal operations rather than the footprint of IFC’s client portfolio.

CALCULATING OUR GHG EMISSIONS
Since 2006, IFC has calculated the annual GHG emissions of its
internal business operations for headquarters in Washington, D.C.
Two years later, IFC began to calculate its global operations’ carbon
footprint including those relating to global business travel.
The methodology IFC formally used is based on the Greenhouse
Gas Protocol Initiative (GHG Protocol), an internationallyrecognized GHG accounting and reporting standard. Starting inFY19, IFC implemented a new, more accurate calculation methodfor business travel emissions called ICAO calculator from theInternational Civil Aviation Organization. In FY20, IFC beganaccounting for radiative forcing, the change in radiation received at
the surface of the earth due to the emission of GHGs. This multiplies
IFC’s air travel emissions by 1.9 to reflect the emissions’ impact on
the planet. Additionally, IFC adapted the Cool Food Pledge which
reports HQ food sourcing emissions calculated by the WorldResources Institute.

(WBG)’s Greenhouse Gas Emissions Inventory Management Plan
(IMP). The IMP provides organization-wide information, including
a corporate overview and goals emissions quantification methods,
data management methods, base year selection, list ofmanagement tools, and auditing and verification processes.
The latest IMP can be downloaded at:
http://documents.worldbank.org
IFC uses the ‘operational control approach’ for setting theorganizational boundaries of its GHG inventory. Emissions areincluded from all locations for which IFC has direct control overoperations, and where it can influence decisions that impact GHGemissions.
IFC’s annual GHG inventory includes the following sources ofGHG emissions from IFC’s leased and owned facilities and airtravel:• Scope 1 Direct Emissions: stationary fuel, refrigerants, fuelused for IFC owned vehicles

Since FY09, IFC has managed and collected its GHG inventory
using an online data management system. The system has
been customized in accordance with the World Bank GroupIFC CARBON TARGET PROGRESS FROM FY16BASELINE

FY21 CARBON EMISSIONS BY SOURCEIFC Carbon Target Progress fromFY16 Baseline
14,00013,263

12,73912,331

11,926

12,00010,00010,526
8,244

8,000

FY16

FY17

FY18

FY19

FY20

FY21

GHG emissions from IFC’s global internal business operations measured in metric tons of carbon dioxide equivalent• Scope 2 Indirect Emissions: electricity used, purchased steam
and chilled water for heating/cooling• Scope 3 Optional Emissions: air travel purchased by IFC, fuelused for taxis and rental cars, and HQ Cool Food PledgeIn FY21, emissions from our global business operations totaled
9,435 metric tons of carbon-dioxide equivalent. Usually about 74
percent of that total stems from business travel. However due tothe switch to home-based work during all of FY21, travel only
accounted for 13% of overall emissions. Office electricity
consumption accounted for 76% percent— more than half ofwhich was attributable to HQ.

REDUCING OUR GHG EMISSIONS
Carbon Targets:
In 2018, IFC set its first-ever global corporate carbon emissions
reduction science-based target. This was announced togetherwith the World Bank Group-wide climate-related commitments at
COP24. IFC’s carbon target is to reduce its facility-related carbonemissions (Scope 1 and 2) by 20% between 2016 and 2026. Thistarget represents IFC’s contribution towards the WBG’scommitment to reduce facility-related emissions by an averageof 28% over the same timeframe.
The carbon target tracking has been skewed since FY19 due tofluctuations in data availability and the pandemic era switch tohome-based work which lowered energy consumption. FY21
reports that Scope 1 and 2 emissions are down by 38% from2016 baseline year. The data will better represent a standard
operating year in FY23. Despite these circumstances, IFC is on
track to meet our target in 2026.
Sustainable Facilities:
Energy-saving projects have included installing variablefrequency drives on cooling towers; installing lighting occupancy
sensors; raising chilled-water set point, adjusting building-wide
heating and cooling set points, and shortening operational hoursof heating, cooling, and lighting central control systems for theentire building. Over 50% of IFC’s real estate footprint (by squarefoot, whether leased or owned) is LEED certified or equivalent;
HQ is LEED Platinum and EnergyStar certified for existingbuildings. In FY19, 70 solar panels were added to the rooftop
providing renewable power to the facility. The panels generated
22,070 kWh of energy in FY21. Additionally, in FY21, HQ
completed an elevator upgrade project to reduce energy
demands on the facility. IFC also installed a rooftop garden,
donating over 200 pounds of produce to a local organization. Abeehive was placed near the garden to help pollinate the plants
and positively impact the local ecology.
Corporate travel:
Due to the switch to home-based work in FY21, business air
travel accounted for 13% of annual GHG emissions frominternal business operations. FY21 presented an unprecedented

opportunity to rely nearly exclusively on teleconferencing, virtual
meetings, online staff trainings, and remote work arrangements.
Global Corporate Solutions provides IFC’s staff with options forsustainable travel initiatives such as a decision tree to help staff
assess whether train travel is available in the region, if a localdelegation can represent them instead, or if they have the option
to attend events virtually. Additionally, a feature was added to thetravel booking platform which lists carbon emissions associatedwith each flight option. Hotels with sustainability initiatives are also
designated on the accommodations search platform.
IT Initiatives:
IFC purchases office equipment (copiers, printers, etc.) that is
EnergyStar certified for energy efficiency. IFC’s managed print
service program eliminated 87% of print devices (over 1000devices) and yields annual energy savings. IFC supports power
management on all devices globally, further reducing electricity.
In FY21, IT determined that 36% of HQ’s printing stations wereredundant and removed them, eliminating excess energy andpaper waste from the facility.
Renewable Energy:
IFC’s headquarters in Washington, D.C. offsets building
electricity consumption through the annual purchasing ofrenewable energy credits (RECs). IFC, as part of the World Bank
Group, is a member of the United States Environmental
Protection Agency (EPA) Green Power Partnership. HQ iscurrently exploring 100% renewable energy sourcing options.

PURCHASING CARBON OFFSETS
To offset our annual GHG emissions, IFC purchases acombination of Voluntary and Certified Emissions Reductions(VERs and CERs) in accordance with guidelines developed by
IFC to ensure alignment with our business priorities and carbon
offset market trends.
Offset projects include renewable energy, energy efficiency,
waste management and forestry and Ozone Depleting
Substance destruction. IFC chooses credits from projects inemerging markets, preferably in low and lower-middle incomecountries. Carbon credits are typically purchased from a portfolioof projects.
Examples of offset purchases include wind power and smallhydropower in India, clean cookstoves in Uganda, household
biodigester energy in Cambodia, and clean stoves and water
treatment in Rwanda. IFC chooses projects that bring tangible
development benefits to communities.
For more information please see:•Annex 1: WBG Guidelines for Carbon Offset Purchase•Annex 2: IFC Carbon Offset Purchases to-dateAUDITING OUR GHG EMISSIONS INVENTORYVOLUNTARY REPORTING OUR GHG EMISSIONSIFC annually conducts an independent third-party audit of its GHG
inventory and relevant FY data as part of IFC’s Annual Report
audit. In addition, the World Bank Group will periodically hire athird-party reviewer of the Inventory Management Plan andcorporate GHG inventory. For example, the GHG inventory andIMP were externally audited for FY09, FY11, FY13, and FY16. The
FY20 audit was completed in spring 2021. This information can befound in the WBG GHG Inventory Management Plan
http://documents.worldbank.org

In 2009, IFC, as part of the World Bank Group, was the firstamong UN agencies and multilateral development banks toreport its greenhouse gas emissions under the Carbon
Disclosure Project, the world’s largest database of primary
corporate information on climate change. IFC continues toreport its GHG emissions inventory in IFC’s Annual Corporate
Report, available at www.ifc.org. IFC also reports its GHG
emissions inventory as part of the Sustainable UN Initiative,Greening the Blue.

Scope Emissions by Fiscal Year measured in metric tons of carbon dioxide equivalent
Scope Emissions

FY16

FY17

FY18

FY19

FY20

FY21Direct(Scope 1)

2,778

2,722

2,040

1,005*

1,058*970

HQ Office Electricity(Scope 2)

5,393

4,781

4,9544,923

4,490**

3,995

Country Office Electricity(Scope 2)

4,965

5,098

4,649

4,303

4,093**

3,202

Other
(Scope 2 from chiller electricity,purchased steam)

127

137

283

198

86

77

28,91930,93331,09930,258(with RF =54,946)(with RF =58,773)(with RF =59,088)(with RF =57,490)

34,692**

1,180

Other
(Scope 3 business ground transportation andHQ Cool Food Pledge (as of FY20))

192

703

52

97

2,605

10

TOTAL EMISSIONS

42,182

44,37443,02540,78447,024

9,435

Scope 1 and 2

13,263

12,738

11,926

10,4299,727

8,245-4%-10%-21%**-27%***-38%***

Business Air Travel(Scope 3, Radiative Forcing (RF) factor(1.9x) recognized in FY20)

Carbon target reduction
from 2016 baseline* Though travel declined significantly in FY20, the application of Radiative Forcing to account for true air travel impact to theenvironment increases the emissions figure compared to prior years when it was not reported. Prior years’ RF adjustment
provided for reference.
** Scope 1 is underreported for FY19 and FY20 due to some missing CO information leading the percentage difference toappear as if we have met target when we are still tracking towards target.
*** Office electricity consumption impacted by COVID-19 and switch to home-based working during Q4 of FY20 and all ofFY21.

Annex 1: World Bank Group (WBG) Guidelines for Selection of Emission Reduction Offsets
Guidelines are reviewed annually to ensure alignment with WBG business priorities and emission
reduction offset market trends• Renewable energy (e.g. wind, solar, hydro, biomass)• Energy efficiency (e.g. fuel switching, single-to-combine cycle, cookstoves, etc.)• Forestry and agriculture (land-based carbon sequestration) with community development impact• Solid Waste Management with community development impact• Ozone Depleting Substance destruction

Project Types

Project Locations
No priority order
Desirable Offset
Standards1
Projects meeting
standards that
support social aswell asenvironmental
benefit are given
prioritySourcing
No priority order

Credits must come from IDA Borrowing Countries
•
•
•
•
•
•

ISO 14064-2
Community Climate Biodiversity Standard (CCBA)[*All projects are subject to due diligence by the World Bank and IFC Carbon Finance Units, regardless ofstandard met*]•Direct contract with private sector project providers. WB may also enter contract agreements with publicsector projects.
Emission reduction offset exchanges, such as Markit’s RFI listings.
Emission reduction offset brokers
Projects identified by WBG Carbon Finance Units. [Joint purchases of IFC and WB are desirable, but WB’sand IFC’s purchase decisions will not be constrained by each other’s program decisions.]•••

Unless the offset standard includes a registry to ensure proper retirement and avoid multiple sales, projects
shall be required to (i) number or mark each offset with appropriate unique identification codes and, (ii)show evidence of the registration of the offsets in WB name on their website. WB shall then retire thecredits on a public registry.
The WB will post offset purchase information on its external website

Offset Retirement
Requirements2•
Other ProjectFeatures
No priority order

Certified Emissions Reductions (CERs), Emissions Reduction Units (ERUs) – with additional environmental
and social benefits
Pre-registration vintages under the Clean Development Mechanism (CDM)
Gold Standard
Voluntary Carbon Standard (VCS)•••

Vintage: Credits should be used to offset emissions not later than five years from the calendar year in which
they were generated. (example: if generated in 2007, credits can be used to offset emissions no later than2012).
Additionality of the credits should be clearly documented.
Efficient purchase options with minimal transaction costs. This includes purchasing projects meeting twoyears’ worth of needs while maintaining competitive pricing.
Associated benefits above emissions reductions ex: (Community benefits desirable for all project types;
Biodiversity benefits desirable for land-based projects)1 See overview of existing market standards, next page2

Intended to avoid double sales

Overview of emission reduction credit market standards
Standard Name & Sponsors
CERs, ERUs
CDM Pre-registration
Gold Standard
Sponsored by DEFRA3,
REEP4 and WWF
International Organization forStandardization 14064-2
Voluntary Carbon Standard(VCS)
Sponsored by IETA5, Climate
Group and the WEF6
Community Climate
Biodiversity Standard (CCBS)••

OthersExamples:Social Carbon
Forest Carbon ProjectStandard

Project Criteria
CDM/ JI
CDM
CDM methodology plus satisfactory answers to the following 2 questions:• Does the project use renewable energy or energy efficiency technologies?
• Does the project promote sustainable development?

RegistryCDM-GoldStandardDatabase

CDMMarkit••

Markit,VCS

CDM or CA Climate Action methodology plus:
Recognition of emission reductions generated as early as January 1st,2000
• Demonstration that project implementation has no negative impact onsustainable development in the local community.
• See pages 10-20 of the VCS’s Protocol & Criteria for detailed information• Land-based projects that simultaneously address climate change,
support local communities, and conserve biodiversity• Promoting innovation in project design.
• Audited under the Climate, Community & Biodiversity Standards
Others that meet the following criteria:• The standard was designed and is managed by an independentorganization or group of organizations.
• The standard has a robust governance process and is well managed:o The governance process is transparent.
o Independent decision makers manage the standard.
o Standard provides oversight to the validators’/verifiers’ work,and ensures the work is conducted impartially and rigorously,appropriate to the requirements of the standard.
• The standard is linked to a publicly accessible registry, independent of
the provider, which tracks issued emission reduction credits to ensure
uniqueness for each tonne.
• The standard requires that projects and emission reduction claims areindependently validated and verified. Validation and verification must be
carried out by a suitably accredited, independent organisation.
• The principles identified below are met by offset credits generated using
the standard:• Independently Verified• Unique• Real• Measurable• Permanent• Additional

3 British Department for Environment, Food and Rural Affairs
4 Renewable Energy and Energy Efficiency Partnership
5 International Emissions Trading Association
6 World Economic Forum

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

FY*Project
NIHT Topaiyo REDD +2021

Renewable Energy, Bangladesh
Improved Cooking Practices
Sachal Wind Power Project, Jhampir

2020

2019

2018

Namakkal Waste to Energy Project
Guacamaya Hydro Power Program
National Biodigester Programme, Cambodia
Small-Scale Hydropower Project Sahanivotry inMadagascar
Solar Power Plant of 15 MW in Gujarat byPalace Solar Energy Private Ltd.
Guacamaya Hydro Power Program
Zorlu Wind, Pakistan
Gyapa Stoves, Ghana
GS Solar Cooking in ChadVCS Sarbari Small Hydro - India
National Biodigester Programme, Cambodia(IFC)
Efficient Cooking with Ugastoves/2014/IFC

2017StandardVCSPakistan

Gold Standard CDM

IndiaGold Standard CDM

Honduras

Gold Standard CDM

CambodiaGold Standard Registry

Madagascar

VCS APX

Renewable Energy

Gujarat

VCS APX

Guacamaya

Gold Standard CDM

Pakistan
Ghana
Chad

Gold Standard VER
Gold Standard VER
Gold Standard VER
Voluntary Carbon
Standard

Renewable Energy /Small Hydro
Renewable Energy
Cookstoves
Cookstoves
Renewable Energy /Small Hydro

India

VCS
Gold Standard CDM

CambodiaGold Standard VER

Cookstoves

UgandaGold Standard VER

Efficient Cooking with Ugastoves/2015/IFC
5 MW Suman Sarwari hydro electric project*(2015/IFC)
5 MW Suman Sarwari hydro electric project*(2016/IFC)Wind based Power Generation by Mytrah
Energy* (2015/IFC)Wind based Power Generation by Mytrah
Energy* (2016/IFC)
Del Agua Stoves & Water Programme

Cookstoves
Renewable Energy /Small Hydro
Renewable Energy /Small Hydro

UgandaGold Standard VER

India

VER

India

VER

Renewable Energy

India

VER

Renewable Energy

India

VER

Enercon Wind Farm in Rajasthan

Renewable Energy

India Delhi Metro CDM
Small-Scale Hydropower Project Sahanivotry

2015Country
Papua NewGuineaBangladesh
Nigeria

Biodigester

Isangi REDD+ Project
2016

TypeAgriculture, Forestry,
Land Use
Renewable Energy
Cookstoves
Renewable
Energy/WindRenewable
Energy/Waste toenergy
Renewable Energy /Small Hydro
Biodigester
Renewable Energy /Small Hydro

Cookstoves
Agriculture, Forestry,
Land Use
Transportation
Renewable Energy /Small Hydro

CER
Rajasthan, India

Gold Standard CER

DRC

VCS, CCBSIndia

CER (CDM)

Madagascar

CER

India CFL CDM (POA 3223)

Energy Efficiency

India

CER

Enercon Wind Farm (Hindustan) Ltd

Renewable Energy

IndiaGold Standard CERIshasha 6.6 MW Small Hydropower Project
Efficient Cooking with Ugastoves
2014
2013
2012
2011

51 MW Wind Power Project
Paradigm Healthy Cookstove and Water
Treatment Project
LifeStrawWater
Rake Power
Composting of Organic Content of Municipal
Solid Waste
Amatitlan Geothermal Project
Fuel-Switching Project from Fossil Fuels toBiomass

2010

Fuel-Wood Saving with Improved Cookstoves
Wastewater Treatment with Biogas Technology
in Tapioca Processing Plant at Roi Et Flour
Company Limited
Rain Calcining: Electricity generation byutilization of waste heat from calcined petroleum
coke production process

2009

Ceramics Manufacturers Fuel-Switching Project

2008
2007
2006

Andhyodaya
Precious WoodsMoldsilva

Renewable Energy

UgandaCER

UgandaGold Standard VER

India

VCS

Cookstoves

Kenya

Gold Standard

Water Filters
Renewable Energy
Waste Handling andDisposal
Energy Industries
renewable/
nonrenewable sources
Energy Industries
renewable/
nonrenewable sources
Energy Demand

Kenya
India

Gold Standard
VCS

Pakistan

VCS

Guatemala

VCS

Argentina

VCS

Cambodia

VCS

Thailand

VCS

India

VCS

BrazilVCS

India
Costa Rica
Moldova

VCS
VCS
VCS

Household energy
efficiency
Renewable Energy

Waste Handling andDisposal
Energy Industries
renewable/
nonrenewable sources
Energy Industries
renewable/nonrenewable sources
Methane Biodigester
Afforestation
Afforestation

For inquiries, please contact Nicolas Douillet at ndouillet@ifc.org.