Comment # Organization Section Reference Text Comment Topic Y/N DFC Management Response

1 DOL/ILAB 6.1.6.

(3) meet with Project and Subproject management and 

Project Affected People, including Workers. Welcome this as a useful contractual step Acknowledgment NA Noted, thank you.

2 GLJ-ILRF 2.3.2

Projects that involve new facilities or business activities 

must be designed to meet the Applicable Standards. 

We applaud the ESPP provision requiring that projects involving new facilities be 

designed to meet the Applicable Standards (§ 2.3.2). This requirement is crucial to 

ensuring that DFC investments exert a long-term influence towards rightsrespecting management practices. Acknowledgment NA Noted, thank you.

3 IRMA 7.0.4.

All DFC Agreements include contractual language that 

addresses Internationally Recognized Worker Rights in 

substantially the following form (as outlined in Section 

1451(d)(2) of the Build Act of 2018):

The person receiving support agrees not to take actions 

to prevent employees of the foreign enterprise from 

lawfully exercising their right of association and their 

right to organize and bargain collectively. The person 

further agrees to observe applicable laws relating to a 

minimum age for employment of children, acceptable 

conditions of work with respect to minimum wages, 

hours of work, and occupational health and safety, and 

not to use forced labor or the worst forms of child labor 

(as defined in section 507 of the Trade Act of 1974 (19 

U.S.C. 2467)). The person is not responsible under this 

paragraph for the actions of a foreign government. 

Yes—incredibly important to elaborate here. Acknowledgment NA Noted, thank you.

4 DOL/ILAB 2.3.1.

The Environmental and Social Requirements apply to all 

Project-related activities including those carried out by 

on-site contractors and sub-contractors of the Project 

that work for a substantial duration of time on the 

Project or are material to the core business processes of 

the Project . Clients are responsible for ensuring that onsite contractors and sub-contractors meet the 

requirements.

Welcome the clarification that contractors that are entities engaged on the project 

for substantial time, to avoid any attempts to misuse 'core business processes' to 

exclude some workers from protection. Acknowledgment NA Noted, thank you. 

5 DOL/ILAB 2.4.5.

Clients must provide relevant information on suppliers 

throughout the tiers of the Project's Supply Chain in 

sectors considered to be at high risk for these issues. 

Welcome the clear language on information about suppliers *throughout* supply 

chains Acknowledgment NA Noted, thank you.

6 IRMA 4.0.6.

For those projects with the potential for significant 

adverse impacts on Project Affected People, DFC will 

confirm prior to project approval that there is Broad 

Community Support for the Project. DFC may rely on 

support from independent experts to assess Meaningful 

Consultation and Broad Community Support. Incredibly important, particularly for industrial-scale mining projects. Acknowledgment NA Noted, thank you. Now, section 4(a)(iv).

7 IRMA

4.1.3. 

(4.1.7.)

Category C Projects are not required to establish a 

formal ESMS but are required to have in place 

appropriate environmental and social policies and 

procedures that will guide the Project (as described in 

Performance Standard 1), human resource management 

systems, and internal and external facing grievance 

mechanisms .

Yes—grievance mechanisms should be required for all categories of projects, 

especially for industrial-scale mining and other high risk projects, and should be 

aligned with the effectiveness criteria outlined in Principle 31 of the United Nations 

Guiding Principles on Business and Human Rights, which include the need for the 

mechanism to be: (a) Legitimate, (b) Accessible, (c) Predictable, (d) Equitable, (e) 

Transparent, (f) Rights-compatible, (g) A source of continuous learning, and (h) 

Based on engagement and dialogue.

Acknowledgment, 

Consultation NA Noted, thank you.

8 CARE 1.2.1.

Identify disproportionate, gender-specific impacts of the 

Project and take steps to mitigate the risks of exclusion, 

discrimination, and harm, including the risk of GenderBased Violence and Harassment (GBVH) Appreciate this inclusion.

Acknowledgment, 

Gender NA Noted, thank you.

9 CSO Group

Cover 

letter

We commend DFC for adding increased references to the heightened social risk 

vulnerable groups face, the need to respect universal human rights, the need to 

assess and mitigate gender-specific impacts of projects, and the purpose of 

stakeholder engagement throughout the draft ESPP. For instance, we positively 

note that DFC describes in detail the purpose of monitoring site visits, stating that 

DFC will check for on-the-ground compliance and interact and gather feedback 

from workers, project affected people, and other stakeholders. 

Acknowledgment, 

Gender NA Noted, thank you.
10 CARE 1.2.1.

Promote inclusion and non-discrimination in the Project, 

particularly with respect to disadvantaged or Vulnerable 

Groups Appreciate the inclusion of this component.

Acknowledgment, 

Gender NA Noted, thank you. 

11 EarthRights Letter

We are pleased to see inclusion in section of 1.2.1 of the draft of a clear 

commitment on non reprisal and retaliation against project stakeholders by DFC 

and its clients. We believe this commitment sets an important performance 

standard for the corporation and its clients and sends a clear signal to project 

stakeholders, particularly human rights defenders who currently face a global crisis 

of violence and threats directed at them. We note that inclusion of this provision 

puts DFC policy in line with that of other development finance institutions, 

including the International Finance Corporation. Additionally, the OECD is also now 

revising its Guidelines on Multinational Enterprises and is expected to include 

language related to this issue. 

Acknowledgment, 

Non-retaliation NA Noted, thank you.

12 CSO Group C

Tracked Changes: [Added text] Habitats with Threatened and Endemic Species, and 

Key Biodiversity Areas - Areas with Near Threatened, Vulnerable, Endangered, 

Critically Endangered, or endemic species, in addition to Key Biodiversity Areas. Biodiversity Y

Definitions in Appendix C have been revised to more 

accurately reflect international best practices for the 

protection of biodiversity. 

13 CSO Group

Cover 

letter

) g y 

sustainability of DFC-supported projects,” as stated in this policy’s Statement of 

Purpose, then the ESPP must explicitly aim to halt and reverse biodiversity loss. To 

achieve this, it is crucial that DFC:

a)	Anchors its policy in a “no loss” approach and removes references to “no net 

loss.” This is because a “no net loss” approach does not take a proactive, 

preemptive approach in conserving biodiversity and thus accelerates biodiversity 

loss and environmental damages.

b)	Excludes direct and indirect financing to harmful, unsustainable activities which 

may be located in or impact critical ecosystems. We urge DFC to adopt more 

exclusion areas as part of the ESPP’s Categorical Prohibitions because a project’s 

location itself can be a critical factor in causing or exacerbating negative 

environmental and social impacts. Currently, DFC’s Categorical Prohibitions List 

includes certain critical areas, such as World Heritage Sites and IUCN protected 

areas categories I-IV, and primary forests, and can be expanded to protect sensitive 

areas which are crucial for their biodiversity and climate regulatory value. DFC’s 

policy can and should go farther.

c)	Adopts the Banks and Biodiversity No Go areas which capture eight sensitive 

areas and at risk ecosystems in need of urgent protection, including, among others, 

nationally and internationally recognized areas, habitats of threatened species, 

primary and vulnerable secondary forests, free flowing rivers, at risk coastal and 

marine areas, and areas where free prior and informed consent (FPIC) has not been 

obtained by local and Indigenous communities. These proposed areas have earned 

nearly 100 endorsements to date, including from civil society organizations and 

environmental scientists, and are consistent with international trends recognizing 

the importance of prohibiting harmful investments in sensitive areas, such as the 

World Heritage Committee and the UN Environment’s Principles for Sustainable 

Insurance Initiative (PSI). Biodiversity N

DFC believes that the most recent list of categorical 

prohibitions as revised for this version of the ESPP 

sufficiently covers the relevant threshold issues of risk and 

harm that have been raised with respect to sensitive 

ecosystems. 

14 TNC 3.1.3.

Below are aspects of Projects that may lead to a higher 

categorization of environmental or social risk: 

It would be go[od] to clearly state that projects with impacts on biodiversity in 

critical habitat will be categorized as high. Biodiversity N

This is not always the case. In instances where scale/scope 

of impact is minor, this can be addressed with a good 

Biodiversity Action Plan.

15 TNC 3.1.3.

Projects that could result in the significant diminishment 

of priority ecosystem services or social values at a 

particular site. what exactly does significant diminishment entail? Biodiversity Y

We updated the text in 3(b)(3) to align the word choice 

with recognized/defined terms.

16 TNC 3.1.3.

Projects that could result in the significant diminishment 

of priority ecosystem services or social values at a 

particular site. 

What is considered priority ecosystem services? Any negative impact on ecosystem 

services should be avoided. Biodiversity Y

We have added a definition for Ecosystem Services into 

Section 3(b)(3).

17 TNC 4.1.1.

The Client must demonstrate a sound understanding of 

the Project and have undergone a process to (1) identify 

all factors that define the Project’s Area of Influence; (2) 

identify potential project-related environmental and 

social risks and impacts, including any disproportionate, 

gender-specific risks and impacts such as the risks of 

exclusion, gender discrimination, and risks of harm; 

This would best be done in the context of a spatially-explicit land use plan that 

integrates biodiversity and climate resilience needs and projections. Biodiversityinclusive spatial plans are required under the Kunming-Montreal global Biodiversity 

Framework Biodiversity N

The United States is not a signatory to the KunmingMontreal Global Biodiversity Framework. DFC does 

evaluate project-related biodiversity impacts through a 

climate lens.
18 TNC 4.2.2.

For any Category A and for some Category B Projects 

that include existing or operating facilities, DFC requires 

the submission of a Baseline Audit or targeted study 

depending on potential environmental and social risks. 

The purpose of a Baseline Audit or targeted study is to 

identify past and present concerns, current status of 

regulatory and Applicable Standards compliance, 

management systems and performance, as well as 

potential risks and liabilities of the Project .

What happens with project Category A with large impacts on biodiversity that can 

not be avoided? Are there compensation mechanisms? Projects that will offset the 

impacts? Biodiversity N

As per the IFC Performance Standards, DFC requires that 

projects apply the mitigation hierarchy which emphasizes 

avoidance over compensation.

19 TNC Ch 9

It is advisable to include a specific chapter on Biodiversity and how investments will 

be screened, monitored, etc. regarding their impact on biodiversity. Biodiversity N

DFC follows the requirements of IFC Performance Standard 

6 on Biodiversity, which covers these areas.

20 TNC 9.0.1.

Investments are screened for Climate-related Risks and 

Climate-related Vulnerability. Investments are screened 

for alignment with the goals of the Paris Agreement .

Also screen for alignment with the Global Biodiversity Framework and the Task 

Force on Nature-related Financial Disclosures TNFD (this should also be highlighted 

in 5.1 Biodiversity N

The United States is not a signatory to these instruments 

and as such the DFC would not adopt their requirements as 

its own. 

21 TNC B

Habitats or other ecosystems which support priority 

biodiversity features Explain what these are Biodiversity Y

In updating the terms dealing with biodiversity in Appendix 

C we elimitated "priority biodiversity features" for clarity. 

22 TNC 4.2.2

For any Category A and for some Category B Projects 

that include existing or operating facilities, DFC requires 

the submission of a Baseline Audit or targeted study 

depending on potential environmental and social risks. 

The purpose of a Baseline Audit or targeted study is to 

identify past and present concerns, current status of 

regulatory and Applicable Standards compliance, 

management systems and performance, as well as 

potential risks and liabilities of the Project .

it would be important to also include Biodiversity Management Plans (BMP) for Cat 

A projects. Biodiversity N

As per the IFC Performance Standards, if the project 

involves biodiversity impacts, a Biodiversity Management 

Plan (BMP) would be required.

23 CSO Group 2.4.4.

Projects involving the use of Renewable Biomass as fuel 

must demonstrate (1) that the fuel was sourced in a 

sustainable manner,(2) the fuel supply did not result in 

the conversion of Natural Habitat, Critical Forest Areas or 

Critical Natural Habitats; and (3) combustion of the 

Renewable Biomass results in fewer Greenhouse Gas 

(GHG) emissions than the fossil fuel alternative.

Tracked Changes: Projects involving the use of Renewable Biomass as fuel that 

are not otherwise categorically prohibited (see Appendix A) must demonstrate (1) 

that the fuel was sourced in a sustainable manner, i.e. that avoids pollution or 

degradation of the source ecosystem and retains its primary productivity; (2) the 

fuel supply did not result in the conversion of Natural Habitat, Critical Forest Areas 

or Critical Natural Habitats; and (3) combustion of the Renewable Biomass results 

in fewer Greenhouse Gas (GHG) emissions than the least GHG-intensive fossil fuel 

alternative.

Biomass Y Edits accepted in part.

24 CSO Group A 

Tracked Changes: [Added text] Projects or sub-projects that promote the use of 

biomass from (1) wood, wood waste materials, or genetically engineered trees, (2) 

waste-to-energy or solid waste incineration, and (3) methane gas from livestock 

manure digesters (factory farm gas) . Biomass N

DFC follows Intergovernmental Panel on Climate Change 

accounting systems, which do not currently incorporate a 

methodology for biogenic emissions.

25 DOL/ILAB C Renewable Biomass – Wood and wood processing wastes; 

Tracked Changes: Renewable Biomass – Wood and wood processing wastes; 

agricultural crops and waste materials; biogenic materials in municipal solid waste; 

and animal manure. Biomass N

DFC follows Intergovernmental Panel on Climate Change 

accounting systems, which do not currently incorporate a 

methodology for biogenic emissions.

26 JP Morgan 2.4.4.

Projects involving the use of Renewable Biomass as fuel 

must demonstrate (1) that the fuel was sourced in a 

sustainable manner,(2) the fuel supply did not result in 

the conversion of Natural Habitat, Critical Forest Areas or 

Critical Natural Habitats; and (3) combustion of the 

Renewable Biomass results in fewer Greenhouse Gas 

(GHG) emissions than the fossil fuel alternative.

Consider inclusion of an additional requirement to demonstrate that “Projects do 

not compete with food feedstock” Biomass Y Comment accepted.

27 CSO Group 3.1.2.

Projects under consideration for direct DFC support are 

categorized as Category A, B, or C based on 

environmental and social risk factors. See Chapter 8 on 

Financial Intermediaries (FIs) for risk categorization and 

additional requirements specific to FIs. 

Tracked Changes: Projects under consideration for direct DFC support are 

categorized as Category A, B, or C based on environmental and social risk factors. 

See Chapter 8 on Financial Intermediaries (FIs) for risk categorization and 

additional requirements specific to FIs. In order to avert abuse in risk 

categorization, DFC should err on the side of categorizing a project as the higher 

level. Categorization N

Categorization occurs on a case-by-case basis but the focus 

of the ESPP is to define overall requirements. The factors 

that go into the higher or lower categorization is reserved 

for internal procedures; however, DFC always takes the 

highest categorization of risk. 

28 CSO Group 3.1.2. Risk Categories Table

Categorization should be kept under review throughout the implementation of a 

project and change when new impacts and/or contextual risks come to light. Categorization N

We agree, project risks can change throughout the 

implementation. DFC's regular monitoring selection 

process takes into account contextual or other changes in 

risk profiles.
29 CSO Group

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6)	Risk Categorization: OPIC’s 2017 Environmental and Social Policy Statement had 

an additional risk category, Special Consideration, that “may apply to projects that 

have heightened potential for adverse project-related social risks related to the 

involvement of or impact on Project Affected People including Workers.” DFC 

deleted this category in the revised ESPP, meaning that potentially less scrutiny is 

placed on projects that are not classified as Category A but still have heightened 

potential for adverse impacts on project-affected people. DFC should reinstate the 

Special Consideration category. Additionally, a serious concern within all DFI 

projects is projects that do not receive a risk category that adequately accounts for 

project risks. DFC should be an industry-wide standard setter, pushing other DFIs to 

improve by assigning appropriate project risk categories and re-evaluating 

categorization periodically. Categorization N 

We consider E&S risk wholistically. There are several 

factors, including labor, that would elevate the 

categorization of risk. DFC always takes the highest 

categorization of risk.

30 DOL/ILAB 3.1.1.

DFC categorizes Projects based on a preliminary 

assessment of (1) the potential environmental and social 

risks and impacts within a Project’s Area of Influence in 

the absence of any required mitigation

Tracked Changes: A World Bank ESRS sets out an environmental risk rating, a social 

risk rating, and an overall risk rating. ADB does individual risk ratings for 

environment, resettlement and indigenous peoples. In moving past the Special 

Consideration procedure, we recommend that DFC take a granular approach 

drawing upon these MDBs, including establishing a labor risk rating for each 

project. This helps ensure adequate coverage in cases where high environmental 

and social/labor risks do not go hand-in-hand. Categorization N

We consider E&S risk wholistically. There are several 

factors, including labor, that would elevate the 

categorization of risk. DFC always takes the highest 

categorization of risk.

31 TNC 3.1.3.

Contextual Risk factors in the external environment that 

the Client does not control may further exacerbate the 

Project’s environmental and social risks and lead to a 

higher risk categorization 

This list is a bit scattered from my perspective. It does not include work in conflict 

sensitive areas, a specific bullet on GBV/SEAH, or areas with political disruption, 

which seem central. Categorization N

These factors are covered in definition of Contextual Risk. 

Please see definition of Contextual Risk.

32 CSO Group 3.1.3.

Projects that discharge high levels of contaminants 

(including Greenhouse Gases) into the environment in 

the absence of adequate pollution controls or sound 

environmental and social management. 

Tracked Changes: Projects that discharge high levels of contaminants (including 

Greenhouse Gases) into the environment in the absence of 1)of adequate pollution 

controls sufficient to eliminate measurable risk to human or ecosystem health or 2) 

sound environmental and social management, consistent with international goals 

(Sustainable Development Goals, Paris Agreement, etc.) and standards. Climate Y Edits accepted in part.

33 CSO Group 9

Objectives: (1) to support the reduction of Greenhouse 

Gas emissions associated with Projects; 

Tracked Changes: Objectives: (1) to support the elimination or reduction of 

Greenhouse Gas emissions associated with Projects; (2) to promote energy 

efficiency and conservation; Climate N

100% elimination of GHG emissions cannot feasibly be 

achieved at this point in time.

34 CSO Group 9.0.2.

DFC is continuing OPIC’s commitment to reduce the 

Direct Emissions associated with Projects in OPIC/DFC’s 

active portfolio by 50 percent over a fifteen-year period 

(June 30, 2008 – September 30, 2023).21 “Active 

portfolio” is defined as all insurance contracts in force, 

equity investments and all guaranty and direct loans with 

an outstanding principal balance.  Annual accounting 

reports that track this commitment and detail the 

methodology associated with this commitment may be 

found on DFC’s website.22  

Tracked Changes: DFC is continuing OPIC’s commitment to reduce the Direct 

Emissions associated with Projects in OPIC/DFC’s 

active portfolio by 50 percent 

over a fifteen-year period (June 30, 2008 – September 30, 2023).24 “In addition, 

DFC will reduce the Direct and Indirect Emissions associated with Projects in 

OPIC/DFC’s portfolio by not less than (i) 60 percent by 2025; and (ii) 100 percent by 

2028. "Active p

ortfolio” is defined as all insurance contracts in force, equity 

investments and all guaranty and direct loans that DFC has providedwith an 

outstanding principal balance.  Annual accounting reports that track this 

commitment and detail the methodology associated with this commitment may be 

found on DFC’s website.25  Climate N The suggestions are not feasible at this point in time.

35 CSO Group 9.0.3.

DFC has committed to achieve net-zero emissions in the 

DFC lending and investment portfolio by 2040. DFC will 

track and annually report on portfolio Greenhouse Gas 

emissions in conformance with The Global Greenhouse 

Gas Accounting and Reporting Standard for the Financial 

Industry, as updated periodically by the Partnership for 

Carbon Accounting Financials (PCAF).  

Tracked Changes: DFC has previously committed to achieve net-zero emissions in 

the DFC lending and investment portfolio by 2040, and is now bringing this 

commitment forward to 2025 to incentivize clients’ climate action consistent with 

best practice among DFIs

. DFC will track and annually report on portfolio 

Greenhouse Gas emissions in conformance with The Global Greenhouse Gas 

Accounting and Reporting Standard for the Financial Industry, as updated 

periodically by the Partnership for Carbon Accounting Financials (PCAF). Climate N The suggestions are not feasible at this point in time.

36 CSO Group new 

Track Changes: Added text] - DFC will fully implement Executive Order 14008: 

Tackling the Climate Crisis at Home and Abroad (2021)26 by ending international 

financing of carbon-intensive fossil fuel-based energy while simultaneously 

advancing sustainable development and a green recovery, as well as the Glasgow 

Commitment on ending overseas fossil fuel finance by the end of 2022. 

(26) https://www.energy.gov/sites/default/files/2021/02/f83/eo-14008-tacklingclimate-crisis-home-abroad.pdf Climate N

DFC has taken steps to implement E.O. 14008, as described 

further in its Climate Action Plan, available at 

https://www.dfc.gov/sites/default/files/media/documents

/DFC%20Climate%Climate%20Action%20Plan.PDF

37 CSO Group 9.1.3.

As a condition of DFC support, Clients shall quantify the 

significant Indirect Emissions (Scope 2) associated with 

off-site production of electricity, steam, heating, or 

cooling used or purchased by the Project. 

Tracked Changes: As a condition of DFC support, Clients shall quantify the 

significant Indirect Emissions (Scope 2 and Scope 3) associated with off-site 

production of electricity, steam, heating, or cooling used or purchased by the 

Project. Climate N

In the markets in which DFC works it can be very 

challenging to obtain Scope 3 data, so DFC will not require 

it.
38 CSO Group C

CO2eq – Carbon Dioxide Equivalents are a metric 

measure used to compare the emissions from various 

Greenhouse Gases based upon their global warming 

potential (GWP) over a given timeframe. The carbon 

dioxide equivalent for a gas is derived by multiplying the 

tons of the gas by the associated GWP. For example, the 

100-year GWP for methane (CH4) is 28 and for nitrous 

oxide (N2O) 265. This means that the emissions of 1 

million metric tons of methane and nitrous oxide are 

equivalent, respectively, to emissions of 28 million and 

265 million metric tons of carbon dioxide. 

Tracked Changes: CO2eq – Carbon Dioxide Equivalents are a metric measure used 

to compare the emissions from various Greenhouse Gases based upon their global 

warming potential (GWP) over a given timeframe. The carbon dioxide equivalent 

for a gas is derived by multiplying the tons of the gas by the associated GWP. For 

example, the 20100-year GWP for methane (CH4) is 286 and the 100-year GWP for 

nitrous oxide (N2O) 265. This means that the emissions of 1 million metric tons of 

methane and nitrous oxide are equivalent, respectively, to emissions of 286 million 

and 265 million metric tons of carbon dioxide. Climate N USG policy is default 100 year GWP.

39 CSO Group C

Indirect Emissions - Emissions that are a consequence of 

project activities but occur at Project sources owned or 

controlled by another entity. Indirect Greenhouse Gas 

emissions result from the generation of purchased or 

acquired electricity, steam, heating, or cooling consumed 

by the project. 

Tracked Changes: Emissions that are a consequence of project activities but occur 

at Project sources owned or controlled by another entity. Indirect Greenhouse Gas 

emissions result from the generation of purchased or acquired electricity, steam, 

heating, or cooling consumed by the project. Indirect emissions include Scope 2 

and Scope 3 emissions. Climate N

DFC's terminology on required reporting of indirect 

emissions is Scope 2. It does not include Scope 3 at this 

time.

40 IRMA 2.1. 2.1.	Minimum Requirements 

Add a requirement to assess opportunities to provide nature-based solutions, 

incorporate concepts of circularity, and address adaptation to climate change, 

including for industrial-scale mining projects. Climate N

DFC assesses physical climate risks in all projects per the 

requirements of EO 13677 in order to identify 

opportunities to enhance resilience of projects. To the 

extent applicable DFC also looks for opportunities to 

enhance sustainable production and consumption. Nature 

based solutions do not apply to the entire portfolio, but are 

an increasingly important focus of DFCs business 

development efforts.

41 JP Morgan 9.1.3.

As a condition of DFC support, all Projects must quantify 

and annually report to DFC the Direct Emissions (Scope 

1) from their Project.

Consider adding in a statement relating to Scope 3 emissions (e.g. Where 

appropriate, Projects are encouraged to quantify their upstream and downstream 

indirect emissions (Scope 3)) Climate N

DFC will encourage projects to quantify Scope 3 emissions 

where appropriate.

42 TNC 3.1.3.

Projects that discharge high levels of contaminants 

(including Greenhouse Gases) into the environment in 

the absence of adequate pollution controls I would define what this means in practice for DFC. Climate Y Edits accepted in part.

43 JP Morgan 1.2.

1.2.	DFC Commitment to Environmental and Social 

Sustainability 

Suggest that it would also be useful to have a commitment focusing on actions 

related to climate adaptation / vulnerability. Climate (adaptation) Y The concept of climate resiliency has been added. 

44 CSO Group 1.2.1.

Ensure the Project is compatible with low and no-carbon 

economic development 

Tracked Changes: Ensure the Project is compatible with low and preferably nocarbon and methane economic development Climate (low and nocarbon) N

DFC believes its low- and no-carbon objectives across 

emissions sources are adequately captured in the existing 

language. 

45 TNC 1.2.1.

Ensure the Project is compatible with low and no-carbon 

economic development Is this based on a set of identifiable metrics? 

Climate (low and nocarbon) N

DFC applies industry standard metrics on climate impacts, 

which include low, moderate and significant tiers for GHG 

reduction against the baseline.
46 CARE 4.1.4.

Clients are required to undertake, and provide 

demonstration of, Meaningful Consultation with Project 

Affected People and meet the requirements related to 

Stakeholder engagement of Performance Standard 1. 

The form and scope of the consultation should be 

commensurate with the project risks and the nature and 

scope of the project. Meaningful Consultation must be 

inclusive, and Stakeholder analysis and engagement 

should capture the views of diverse groups including 

women, men, youth, the elderly, displaced, disabled 

persons, and any other disadvantaged or vulnerable 

groups. In some contexts, separate engagements with 

certain groups may be required to obtain different 

perspectives, priorities and concerns about impacts, 

mitigation mechanisms and project benefits. For those 

Projects with the potential for significant adverse 

impacts on Project Affected People, the Client is also 

required to demonstrate there is Broad Community 

Support for the Project. 

I would probably suggest that these sessions be conducted more than once 

throughout the life of the project (not just once at the beginning). Perhaps 

inclusion of milestone moments where follow-up and validation to ensure that 

project continues to mitigate harm and has broad community support. Consultation N

It is not implied that this is a one-off. IFC guidance already 

dictates that stakeholder engagement should be regular 

and ongoing and reflected as such in Stakeholder 

Engagement Plans.

47 CSO Group 5.2.1.

As per the Performance Standards, Clients are expected 

to maintain appropriate communication channels with 

Stakeholders. This communication must be in a language 

and format that is accessible to Stakeholders, particularly 

Project Affected People. 

Tracked Changes: As per the Performance Standards, Clients are expected to 

maintain appropriate, regular, and timely

 communication channels with 

Stakeholders. This communication must be in appropriate languages and formats 

that are accessible to Stakeholders, particularly Project Affected People. Consultation N

Regular and timely are some of the characteristics DFC 

considers to be appropriate. The IFC Performance 

Standards include appropriate requirements and guidance 

on the expectations for appropriate stakeholder 

engagement.

48 CSO Group 7.0.2.

At a minimum, all DFC Agreements include standard 

project requirements to have an overarching 

environmental and social policy statement, 

commensurate human resources policies and 

appropriate internal and external grievance mechanisms. 

For all Category A and B Projects, Clients are required to 

establish and maintain an ESMS that meets the 

requirements in Performance Standard 1. The level of 

detail and complexity of the ESMS should be risk-based 

and commensurate with the significance of potential 

impacts or the severity of the risks of the Project. 

Tracked Changes: At a minimum, all DFC Agreements include standard project 

requirements to have an overarching environmental and social policy statement, 

commensurate human resources policies and appropriate internal and external 

grievance mechanisms. External grievance mechanisms shall be gender sensitive, 

age appropriate, culturally adapted, and established and operate incorporating the 

UN Guiding Principles on Business and Human Rights’ Effectiveness Criteria for nonjudicial grievance mechanisms. (21) For all Category A and B Projects, Clients are 

required to establish and maintain an ESMS that meets the requirements in 

Performance Standard 1. The level of detail and complexity of the ESMS should be 

risk-based and, extend across a project’s Area of Influence, and and 

commensurate with the significance of potential impacts or the severity of the risks 

of the Project. 

(21) 

https://www.ohchr.org/sites/default/files/documents/publications/guidingprincipl

esbusinesshr_en.pdf Principle 31. Additionally, external grievance mechanisms will 

be subject to a periodic independent audit of their effectiveness. Consultation N

Please see update to Section 2(b)(2) under Minimum 

Requirements for added clarification regarding grievance 

mechanism requirements. The ESPP is not intended to 

define an exhaustive list of expected characteristics for any 

component to an ESMS, including grievance mechanism. 

Clients should refer to various resource materials available 

on international best practice in their ESMS design. DFC 

interprets IFC Performance Standards requirements of 

Environmental and Social Management Systems (ESMS) to 

include the project's area of influence so we do not 

consider this addition to be necessary.

49 CSO Group

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We encourage DFC to consider the above recommendations and attached redline 

edits and hold an additional round of consultations after integrating public 

comments into the revised ESPP. A single-phase consultation process is inadequate 

for the scale of DFC's review on its ESPP and not aligned with what the U.S. pushes 

for on similar policy reviews at the MDBs, for instance, the Asian Development 

Bank's ongoing review of its Safeguards Policy Statement (SPS). Consultation N

DFC incorporated feedback from the last ESPP revision 

process of revising the ESPP to extend opportunities for 

comment into countries where we operate into the current 

revision process. We appreciate this feedback and in the 

future we can consider broadening our consultation 

approach if there are sufficient resources to support 

additional engagement efforts.
50 GLJ-ILRF 4.1.4.

Clients are required to undertake, and provide 

demonstration of, Meaningful Consultation with Project 

Affected People and meet the requirements related to 

Stakeholder engagement of Performance Standard 1. 

The form and scope of the consultation should be 

commensurate with the project risks and the nature and 

scope of the project. Meaningful Consultation must be 

inclusive, and Stakeholder analysis and engagement 

should capture the views of diverse groups including 

women, men, youth, the elderly, displaced or disabled 

persons, and any other disadvantaged or vulnerable 

groups. In some contexts, separate engagements with 

certain groups may be required to obtain different 

perspectives, priorities and concerns about impacts, 

mitigation mechanisms and project benefits. For those 

Projects with the potential for significant adverse 

impacts on Project Affected People, the Client is also 

required to demonstrate there is Broad Community 

Support for the Project. 

We are encouraged by DFC’s emphasis on compliance with the Applicable 

Standards and client stakeholder engagement. However, we believe that small 

additions to the ESPP—especially deadlines for beginning stakeholder engagement 

and achieving compliance—would go a significant way towards ensuring that 

stakeholder engagement effectively contributes to risk management and 

compliance. The absence of a deadline for clients’ stakeholder engagement efforts, 

however, gives us the concern that clients will miss their best opportunity to adapt 

business plans to the realities confronting stakeholders on the ground, who are 

generally far more familiar with the environmental and social risks posed by 

individual projects. Consultation N

This is appropriately captured in the requirements of the 

IFC PS on engagement.

51 TNC 5.1.1.

●	Description of the Client’s consultation with Project 

Affected People (if applicable) 

Where would consultation not be required? Also, grievance process and methods 

for filing should be listed here. Consultation Y

Please see clarification of section 2(b)(2) to underscore 

requirements for GRMs. The applicability of consultation 

requirements depends on the nature of the project risks 

and impacts with respect to project affected people and 

whether there are externally facing impacts. If there are no 

adverse environmental and social impacts, consultation is 

not required.

52 TNC 5.1.3.

For all Category A Projects (including Category A 

Subprojects), Clients are required to submit to DFC an 

ESIA and/or Baseline Audit (see Section 4.2.), a local 

language translation of the executive summary of the 

ESIA/Baseline Audit (See Paragraph 5.2.4.), and a 

Stakeholder engagement plan

B projects should also include a stakeholder engagement plan as most will require 

due diligence. Consultation N

These required document submissions is to meet DFC's 

disclosure requirements of Cat A projects. Apart from our 

disclosure requiremnts, as per the IFC Performance 

Standards, any projects with externally facing impacts will 

be required to establish and implement appropriate 

information disclosure and engagement with affected 

groups and stakeholders.

53 CSO Group 4.1.2.

Grievance mechanism should be designed so that it can be context-specific, 

inclusive and accessible, empowering, consistently closes the loop, create collective 

responsibility, is impartial, does no harm, and is appropriately resourced. The IASC 

guideline for the community-based complaint mechanisms should be adapted and 

used as the basis for a grievance mechanism that is fit for sexual exploitation and 

abuse reporting. 

IASC Best Practice Guide Inter-Agency Community-Based Complaints Mechanisms, 

2016 | IASC,” accessed April 17, 2019, 

https://interagencystandingcommittee.org/accountability-affected-populationsincluding-protection-sexual-exploitation-and-abuse/documents-50. 

Tracked Changes: A description of the project GRM in accordance with 

7.0.2grievance mechanism. Consultation N

Although we agree conceptually, the ESPP is not meant to 

have stand-alone, comprehensive guidance on all aspects 

of potential environmental and social risk. For clarity, we 

did add emphasis on the requirements with respect to 

grievance mechanisms in Section 2(b)(2) on Minimum 

Requirements. 
54 TNC 4.1.1.

The Client must demonstrate a sound understanding of 

the Project and have undergone a process to (1) identify 

all factors that define the Project’s Area of Influence; (2) 

identify potential project-related environmental and 

social risks and impacts, including any disproportionate, 

gender-specific risks and impacts such as the risks of 

exclusion, gender discrimination, and risks of harm; (3) 

identify and commit to appropriate mitigation measures 

including adequate resources for implementation; and 

(4) identify relevant Project Affected People and other 

interested Stakeholders that may be directly or indirectly 

affected by the Project, including groups that may be 

differentially or disproportionately affected by the 

Project because of their disadvantaged or vulnerable 

status. The process of identifying risks, impacts, Area of 

Influence and Project Affected People shall be adequate, 

accurate, objective, and appropriate to the severity of 

Project risks and significance of Project impacts.

This does not include a demonstration of engagement with communities fit to the 

scope and scale of project activities, FPIC where it applies, avoidance of tenure 

issues and disputes over rights or tenure, iterative consultation, demonstration of 

MEL plans, capacity to support implementation demonstrated, and other processes 

that should be proven per IFC standards. Consultation Y

With respect to engagement and FPIC, the point reflects 

current practice so we added further emphasis. Please see 

update to Sections 4(a) and 4(b). 

55 CSO Group 4.1.2.

A description of the process of Meaningful Consultation, 

including a Stakeholder engagement plan (if available) 

Tracked Changes: A description of the process of stakeholder identification and 

Meaningful, accessible, inclusive Consultation and/or FPIC process, including a 

Stakeholder engagement plan (if available), and a description of the 

outcomes/results of the process of Meaningful Consultation. Consultation, FPIC N

Much of this is implied within IFC Performance Standards 

guidance on consultation.

56 CSO Group 4.1.4.

Clients are required to undertake, and provide 

demonstration of, Meaningful Consultation with Project 

Affected People and meet the requirements related to 

Stakeholder engagement of Performance Standard 1. 

The form and scope of the consultation should be 

commensurate with the project risks and the nature and 

scope of the project. Meaningful Consultation must be 

inclusive, and Stakeholder analysis and engagement 

should capture the views of diverse groups including 

women, men, youth, the elderly, displaced, disabled 

persons, and any other disadvantaged or vulnerable 

groups. In some contexts, separate engagements with 

certain groups may be required to obtain different 

perspectives, priorities and concerns about impacts, 

mitigation mechanisms and project benefits. For those 

Projects with the potential for significant adverse 

impacts on Project Affected People, the Client is also 

required to demonstrate there is Broad Community 

Support for the Project. 

Tracked Changes: Meaningful Consultation must be safe, inclusive, including 

through consultations and materials offered in languages of all groups within the 

project’s area of influence including in accessible formats and Stakeholder analysis 

and engagement should capture the views of diverse groups including women, 

men, youth, the elderly, displaced or, disabled persons, Indigenous populations, 

and any other disadvantaged or vulnerable groups. In some contexts, separate 

engagements with certain groups may be required to obtain different perspectives, 

priorities and concerns about impacts, prioritize safety and transparency for 

marginalized groups, mitigation mechanisms and project benefits. For those 

Projects with the potential for significant adverse impacts on Project Affected 

People, the Client is also required to demonstrate there is Broad 

CommunitySupport for the Project through Meaningful, accessible, inclusive 

Consultation and a FPIC process. Consultation sessions with the community will be 

conducted more than once throughout the life of the project. At milestone 

moments, DFC and clients will conduct follow-up and validation to ensure that the 

project continues to mitigate harm and has broad community support. Consultation, FPIC Y

We incorproated the edits around safety to emphasize this 

point as well as the clarity on the application of IFC PS 7. 

We also clarified the scope of monitoring to emphasize the 

practice of incorporating stakeholder feedback, see 

Chapter 6.

57 IRMA 6

(2) to evaluate the effectiveness of mitigation 

measures, action plans, and corrective actions.

based on engagement with and input from stakeholders and rights holders

and publicly report on Consultation, FPIC Y

Yes, that is the intent with respect to input. Please see the 

addition in Chapter 6 Objectives. 

58 IRMA 4.1.2.

A description of the process of Meaningful Consultation, 

including a Stakeholder engagement plan (if available) 

Community and Stakeholder Engagement and respect for the rights of Indigenous 

Peoples must be a continuous process over the life of a Project, including industrialscale mining projects. See IRMA Chapter 1.2 on Community and Stakeholder 

Engagement and IRMA Chapter 2.2 on Free, Prior and Informed Consent. As 

outlined in the Rio Declaration and elaborated in the Rio+20 Outcome Document 

and in alignment with the UN Sustainable Development Goals, projects—including 

industrial-scale mining projects—should share benefits with communities, aligned 

with community objectives and based on stakeholder engagement. See more 

guidance on this topic in IRMA Chapter 2.3. 

Learn more about how mining can contribute to the UN Sustainable Development 

Goals from Columbia Center on Sustainable Investment (CCSI) and IRMA. Consultation, FPIC N Noted, thank you.
59 TNC 1.2.1.

Undertake Meaningful Consultation with Project 

Affected People regarding Project activities, including 

engagement with Vulnerable Groups 

The definition of meaningful consultation in The glossary is very similar to 

“informed consultation and participation” as used by most agencies overseeing 

safeguards.

- I would suggest using The concept of consultation and free, prior and informed 

consent.

- Agreed on a robust application of FPIC that goes beyond communities with formal 

rights/recognition as Indigenous Peoples per best practices articulated in TNC’s 

Human rights Guide for Working with Indigenous Peoples and Local Communities. Consultation, FPIC N

FPIC is a specifically defined requirement under IFC PS 7. 

We maintain a separate and broader definition in this case 

to apply as apporpriate per project risk profiles and 

consultation requirements.

60 CSO Group 4.0.6.

For those projects with the potential for significant 

adverse impacts on Project Affected People, DFC will 

confirm prior to project approval that there is Broad 

Community Support for the Project. DFC may rely on 

support from independent experts to assess Meaningful 

Consultation and Broad Community Support. 

Tracked Changes: For those projects with the potential for significant adverse 

impacts on Project Affected People, DFC will confirm prior to project approval 

through Meaningful Consultation that there is Broad Community Support for the 

Project by carrying out a meaningful consultation process and/or the process to 

obtain the Free, Prior and Informed Consent (FPIC) of Indigenous Communities: 

taking into account ILO Convention No. 169.. DFC may rely on support from 

independent experts to assess Meaningful Consultation and Broad Community 

Support. DFC will publish evidence of how they have determined there is Broad 

Community Support or FPICFree, Prior, and Informed Consent, including evidence 

of any agreements reached with Project Affected People, Consultation, FPIC Y

We incorporated clarity on the application and 

requirements of IFC PS 7 in Section 4.

61 CSO Group 1.2.1.

Respect Human Rights, Labor Rights, and the rights of 

Project Affected People 

Tracked Changes: Respect Human Rights, Labor Rights, and the rights of Project 

Affected People, including Indigenous peoples’ right to free, prior, and informed 

consent (FPIC) as well as the individual and collective rights of customary land 

rights holders; taking into account ILO Convention No. 169. Consultation, FPIC N

This text is meant to be applicable across all projects. The 

requirement of IFC PS 7 on FPIC is considered to be 

included in this umbrella statement for projects where IFC 

PS 7 is applicable.

62 CSO Group 2.4.1.

For projects involving the construction and operation of 

dams that are not otherwise categorically prohibited 

(See Appendix A), DFC applies screening and 

environmental and social assessment criteria consistent 

with international best practice, including the core values 

and strategic priorities as identified in the 16 November 

2000 Report from the World Commission on Dams. 

Specific factors that are considered in DFC’s screening 

and review of projects involving dams may be found at:

Tracked Changes: For projects involving the construction and operation of dams 

that are not otherwise categorically prohibited (See Appendix A), DFC applies 

screening and environmental and social assessment criteria consistent with 

international best practice, including the core values and strategic priorities as 

identified in the 16 November 2000 Report from the World Commission on Dams. 

The emphasis should be on preserving free flowing rivers as they are critical, at risk 

freshwater ecosystems. Specific factors that are considered in DFC’s screening and 

review of projects involving dams may be found at: Dams N

While DFC agrees that at-risk ecosystems can be protected, 

not all hydropower projects endanger at-risk ecosystems.

63 CSO Group C

Tracked Changes: [Added text] Free flowing rivers - Rivers that flow undisturbed 

from their source to mouth, at either the coast, an inland sea or at the confluence 

with a larger river, without encountering any dams, weirs or barrages and without 

being hemmed in by dikes or levees. Dams N

We do not use this term in the ESPP; therefore it does not 

require a definition.

64 IRMA 2.4.1. ICMM Global Industry Standard on Tailings Management 

Good to reference GISTM. The reference should include ICMM, UN Environment 

Programme, and UN Principles for Responsible Investment (UNPRI). Dams Y Comment accepted

65 TNC 2.4.1.

Specific factors that are considered in DFC’s screening 

and review of projects involving dams may be found at:

 - IFC Good Practice Handbook on Environmental Flows 

for Hydropower Projects (March 2018) 

- World Bank Good Practice Note on Dam Safety: New 

Guidance on Managing Risks Associated with Dams (April 

2021) 

- IFC Good Practice Note: Environmental, Health and 

Safety Approaches for Hydropower Projects (March 

2018) 

- ICMM Global Industry Standard on Tailings 

Management 

Given the history of displacement related issues with dam projects, I would 

encourage these projects to automatically trigger involuntary resettlement impact 

assessments and plans or adoption of guidance specifically on dam related 

displacement concerns (from the World Bank or other). Dams N

If a project is anticipated to cause any involuntary 

displacement, this would trigger PS 5 and its requirements 

including the identification of impacts and the 

development of appropriate plans. An automatic trigger of 

such assessments in case of no displacement will not be 

required. 
66 CSO Group 1.2.1.

Tracked Changes (added text): Publicly disclose and share information for Category 

A and B projects on its website, including stakeholder engagement plans and cofinancing data Disclosure N

DFC has developed a separate transparency policy that will 

guide DFC disclsoure and reporting, available at 

https://www.dfc.gov/ourimpact/transparency#:~:text=DFC's%20Transparency%20P

olicy%20outlines%20the,data%20that%20are%20routinely

%20disclosed. With respect to disclsoure, DFC is working 

with Publish What You Fund (PWYF) and is aware of their 

index but does not plan to make further disclosures on this 

type of data in the short term. However, DFC is developing 

policies, procedures, and processes designed to increase 

the volume and quality of data on its website, and also has 

an email specifically for transparency issues: 

transparency@dfc.gov. 

67 CSO Group 3.0.1.

DFC screens applications as early as possible to identify 

the risk of adverse environmental and social impacts of 

proposed projects and determine if a Project is eligible 

for DFC support

Tracked Changes: DFC screens applications as early as possible to identify the risk 

of adverse environmental and social impacts of proposed projects, develop robust 

alternatives analysis, and determine if a Project is eligible for DFC support. DFC will 

make such screens public. Disclosure N

The douments that DFC intends to include for disclosure 

can be found in Chapter 5.

68 CSO Group 4.1.2.

For Category A and B Projects, the Client should submit 

one or more documents that describe the following 

aspects

Tracked Changes: For Category A and B Projects, the Client should submit and 

disclose one or more documents that describe the following aspects. Disclosure N

The douments that DFC intends to include for disclosure 

can be found in Chapter 5.

69 CSO Group 5.0.1.

Institutional information that is made available on DFC’s 

website includes this ESPP, annual reports, audited 

financial statements, program handbooks, Board 

resolutions, claims determinations, arbitral awards, 

bilateral agreements, and annual Greenhouse Gas 

accounting for DFC’s portfolio

Tracked Changes: Institutional information that is made available on DFC’s website 

includes this ESPP, annual reports, audited financial statements, program 

handbooks, Board resolutions, claims determinations, arbitral awards, bilateral 

agreements, ESIAs, risk assessments, and annual Greenhouse Gas accounting for 

DFC’s portfolio.In cases where DFC exits an investment as a result of client nonadherence to the ESPP, documentation of a ‘responsible exit’ approach is also 

made available. Disclosure N

This paragraph is intended to guide DFC originated data 

and information, not the client's information. The 

douments that DFC intends to include for disclosure can be 

found in Chapter 5.

70 CSO Group 5.0.3.

5.0.3.	DFC provides advance notice and information 

about potential Projects to be voted on by DFC’s Board 

of Directors to ensure that interested parties are aware 

in advance of public hearing dates and have sufficient 

information to prepare for the public hearing

Tracked Changes: DFC provides at least 120 day s advance notice and information 

about potential Projects to be voted on by DFC’s Board of Directors to ensure that 

interested parties are aware in advance of public hearing dates and have sufficient 

information to prepare for the public hearing Disclosure N

The timelines for disclosure are governed by the policies 

and procedures of the DFC Board, available at 

https://www.dfc.gov/sites/default/files/media/documents

/BDR21%2805%29BoardPublicEngagementPolicy_0.pdf, 

and Section 1452(e)(1) of the BUILD Act. 

71 CSO Group 5.1.1.

The summaries include the following environmental and 

social information as appropriate to the nature and scale 

of the Project and commensurate with the potential 

environmental and social risks and impacts:

-Rationale for environmental and social risk 

categorization

-Environmental and social standards applicable to the 

Project

-Description of the major environmental and social risks 

and impacts of the Project 

-Approved alternative pollution prevention and control 

technologies that meet Performance Standard 3 (if 

applicable) 

-Description of action(s) required to achieve compliance 

with Applicable Standards

-Information related to DFC environmental and social 

due diligence visits (if applicable)

-Description of the Client’s consultation with Project 

Affected People (if applicable) 

Tracked Changes: The summaries include the following environmental and social 

information as appropriate to the nature and scale of the Project and 

commensurate with the potential environmental and social risks and impacts:

-Rationale for environmental and social risk categorization

-Environmental and social standards applicable to the Project

-Description of the major environmental and social risks and impacts of the Project 

-Approved alternative pollution prevention and control technologies that meet 

Performance Standard 3 (if applicable) 

-Description of action(s) required to achieve compliance with Applicable Standards

-Information related to DFC environmental and social due diligence visits (if 

applicable)

-Monitoring data, including summaries of third-party audits (conducted in 

accordance with 6.0.4) and annual environmental and social reports (conducted in 

accordance with 6.1.3) 

-Description of the Client’s consultation with Project Affected People (and/or FPIC 

processes and the outcomes of these consultations (if applicable), including 

demographic information to show which groups and at what level groups have 

been consulted.) 

-For Extractive Industry projects, in addition to the standard disclosures, Clients are 

required to disclose material project-level payments to host governments (e.g. 

royalties, taxes, profit sharing), the principal contracts with host governments, as 

well as beneficial ownership information, in line with the Extractive Industries 

Transparency Initiative (EITI). Disclosure N

The ESPP provides broad guidance on how it will consider 

projects, and DFC is able to incorporate best international 

practice as applicable to that project. DFC notes that with 

regard to references to monitoring data, these details are 

typically not available at the time of DFC investment. 

72 CSO Group 5.1.2.

For Projects that require Board approval, DFC provides 

advance notice by disclosing the project information 

summaries at least 7 days in advance of the Board 

meeting or action. 

Tracked Changes: For Projects that require Board approval, DFC provides advance 

notice by disclosing the project information summaries at least 90 days in advance 

of the Board meeting or action. , and 120 days for Category A projects.. Disclosure N

The timelines for disclosure are governed by the policies 

and procedures of the DFC Board, available at 

https://www.dfc.gov/sites/default/files/media/documents

/BDR21%2805%29BoardPublicEngagementPolicy_0.pdf, 

and Section 1452(e)(1) of the BUILD Act. 

73 CSO Group 5.1.3.

DFC will post these documents for disclosure on DFC’s 

website for a public comment period of at least 60 days.

Tracked Changes: DFC will post these documents for disclosure on DFC’s website 

for a public comment period of at least 120 days. Disclosure N

The relevant timelines for disclosure are governed by the 

policies and procedures of the DFC Board and Section 

1452(e)(1) of the BUILD Act. 
74 CSO Group 5.1.4.

After the 60-day public comment period ends, DFC will 

post on its website any comments received, as well as 

DFC management’s response, at least 7 days prior to 

DFC’s final decision on whether to support a Project. If no 

comments are received, DFC may proceed directly to final 

project approval.

Tracked Changes: After the 120-day public comment period ends, DFC will post on 

its website any comments received, as well as DFC management’s response, at 

least 30 days prior to DFC’s final decision on whether to support a Project. If no 

comments are received, DFC may proceed directly to final project approval. Disclosure N

The relevant timelines for disclosure are governed by the 

policies and procedures of the DFC Board and Section 

1452(e)(1) of the BUILD Act. 

75 CSO Group 5.1.5.

No Category A Project may be approved without this 

public disclosure, opportunity for public comment, and 

management response (if needed). Disclosure of 

documents for public comment does not imply project 

approval.

Tracked Changes: No Category A or Category B Project may be approved without 

this public disclosure, opportunity for public comment, and management response 

(if needed). Disclosure of documents for public comment does not imply project 

approval. Disclosure N

The relevant timelines for disclosure are governed by the 

policies and procedures of the DFC Board and Section 

1452(e)(1) of the BUILD Act. 

76 CSO Group 5.2.4.

The Client is required to provide to DFC a local language 

translation of the executive summary of the ESIA and/or 

Baseline Audit and make the summary available to 

Project Affected People in a format that is readily 

understandable, at a location that is accessible locally to 

the Project, and tailored to meet the information needs 

of Project Affected People. The translated summary 

should be distributed by means that account for the 

ability of Project Affected People to receive, address and 

effectively comment on the content. The location of local 

disclosure by the Client will be disclosed in DFC’s initial 

project summary (see Paragraph 5.1.6.). 

Tracked Changes: The Client is required to provide to DFC a local language 

translation of the executive summary of the ESIA and/or Baseline Audit and make 

the summary available to Project Affected People in a format that is readily 

understandable, at a location that is accessible locally to the Project, and tailored 

to meet the information needs of Project Affected People. The translated summary 

should be distributed by means that account for the ability of Project Affected 

People to receive, address and effectively comment on the content. The location of 

local disclosure by the Client will be disclosed in DFC’s initial project summary (see 

Paragraph 5.1.6.). Disclosure N

This is not always feasible. ESIAs include an executive 

summary/ non-technical summary to serve the purpose of 

a more compressed and easily accessible summary of the 

document. This is also aligned with other DFIs.

77 CSO Group

end of 

Section 

6.0.

Track Changes: [Added text] DFC will publicly disclose all project monitoring, 

midterm, and completion reports, including reports provided to DFC by its 

applicants. Disclosure N

The douments that DFC intends to include for disclosure 

can be found in Chapter 5.

78 CSO Group 6.1.1.

Clients are required to submit a Development Outcomes 

Survey (DOS) starting 12 months after receiving DFC 

support and on an annual basis thereafter. The DOS 

reporting requirement provides an avenue for DFC to 

evaluate project data regarding development impact 

outcomes as well as compliance with DFC’s 

Environmental and Social Requirements.

Tracked Changes: Clients are required to submit and publicly disclose a 

Development Outcomes Survey (DOS) starting 12 months after receiving DFC 

support and on an annual basis thereafter. The DOS reporting requirement 

provides an avenue for DFC to evaluate project data regarding development impact 

outcomes as well as compliance with DFC’s Environmental and Social 

Requirements. Disclosure N

The douments that DFC intends to include for disclosure 

can be found in Chapter 5.

79 CSO Group 6.1.3.

All Category A and some Category B Projects are 

required to submit annual environmental and social 

reports. At a minimum, environmental and social reports 

must include information on the following: 

Tracked Changes: All Category A and some Category B Projects are required to 

submit and publicly disclose annual environmental and social reports. At a 

minimum, environmental and social reports must include information on the 

following: Disclosure N

Annual environmental and social reports may contain 

business confidential information that cannot be publicly 

disclosed. DFC encourages clients to disclose annual 

sustainability reports, or equivalents. 

80 CSO Group 6.1.4.

Clients are required to submit to DFC the third-party 

audit reports so DFC can ensure that the audit was 

conducted in accordance with the agreed scope of work 

and that the Project is in compliance with the 

Environmental and Social Requirements contained within 

the DFC Agreement. 

Tracked Changes: Clients are required to submit to DFC and publicly disclose the 

third-party audit reports so DFC can ensure that the audit was conducted in 

accordance with the agreed scope of work and that the Project is in compliance 

with the Environmental and Social Requirements contained within the DFC 

Agreement. Disclosure N

Audit reports may contain business confidential 

information that cannot be publicly disclosed. DFC 

encourages clients to disclose annual sustainability reports, 

or equivalents.
81 CSO Group

Cover 

letter

 g y 

and at least what the U.S. requires of the multilateral development banks (MDBs) 

in which it is a member. As one of the largest shareholders of the MDBs and 

historically the most vocal advocate for high environmental, social, and 

accountability standards at the institutions, the U.S. can demonstrate its 

commitment to sustainable and inclusive development by holding its own 

development finance institution (DFI) to the same standards it calls on the MDBs to 

meet. DFC should address the following inconsistencies within the ESPP:

a)	Section 5.1.3 requires the disclosure of Category A project documents for public 

comment for 60 days. However, DFC should match the Pelosi Amendment MDB 

disclosure requirement, which requires U.S. Executive Directors at the MDBs to 

abstain or vote against any project with significant environmental impacts if an 

appropriate environmental assessment has not been conducted and made 

available to the public 120 days before a vote. Shorter disclosure times hinder 

opportunities for civil society and project-affected communities to have a voice in 

the approval process.

b)	IFC requires extractive industry clients to disclose material project payments to 

host governments (e.g., royalties, taxes, profit sharing) as well as the principal 

contracts with host governments, as per their Sustainability Policy. However, DFC’s 

revised ESPP does not meet the same standard.

c)	Section 6.1.2 states that DFC Agreements require “timely notification” to DFC of 

incidents at project sites resulting in death or adverse impacts on the environment, 

workers, or project affected people. However, the African Development Bank’s 

recently updated Integrated Safeguards System (ISS) requires notification of similar 

incidents within three days. DFC’s policy should provide a specific time bound 

requirement for notification of incidents and should match or exceed the standard 

set in the ISS.

Disclosure N

The relevant timelines for disclosure are governed by the 

policies and procedures of the DFC Board and Section 

1452(e)(1) of the BUILD Act. Otherwise, the douments that 

DFC intends to include for disclosure can be found in 

Chapter 5. DFC is not subject to the requirements of the 

Pelosi Amendment; however DFC's notification 

requirements are often equivalent to, and in some cases, 

earlier than other DFIs.

82 TNC 5.1.1.

The summaries include the following environmental and 

social information as appropriate to the nature and scale 

of the Project and commensurate with the potential 

environmental and social risks and impacts:

-Rationale for environmental and social risk 

categorization

-Environmental and social standards applicable to the 

Project

-Description of the major environmental and social risks 

and impacts of the Project 

-Approved alternative pollution prevention and control 

technologies that meet Performance Standard 3 (if 

applicable) 

-Description of action(s) required to achieve compliance 

with Applicable Standards

-Information related to DFC environmental and social 

due diligence visits (if applicable)

ESMPs should be published per IFC standards.

Again curious why the automatic called out special requirements for PS#3. Disclosure N

The douments that DFC intends to include for disclosure 

can be found in Chapter 5. DFC will disclose alternative 

pollution control mechanisms that differ from PS 3 

requirements.

83 TNC 6.0. 6.0.	DFC Responsibilities (Monitoring and Reporting chapteDisclosure of documents online? Grievance? Disclosure N

The douments that DFC intends to include for disclosure 

can be found in Chapter 5. See also additions and edits 

throughtout the document to emphasize expectations 

around grievance mechanisms. 
84 GLJ-ILRF 10.2.1.

In making its determinations as to whether non-GSPeligible countries where DFC programs are being offered 

are taking steps to adopt and implement laws that 

extend Internationally Recognized Worker Rights to 

Workers, DFC utilizes a similar petition and review 

process. Petitions can be submitted to DFC at its public 

hearings to reexamine whether the status of any such 

country should be changed on worker rights grounds.

We are concerned that the proposed ESPP and the associated Board of Directors 

Public Engagement Policy would effectively deny DFC the benefits of the vital 

information outside stakeholders have to offer when making its project- and 

country-level assessments. For most projects, the proposed ESPP and the Board’s 

Public Engagement Policy give the public only seven days of notice before the 

Board votes. Seven days is not sufficient time for external parties to generate and 

communicate crucial information on labor rights risks and for DFC to incorporate 

such information into its own project assessment processes. These pre-approval 

disclosures are particularly vital, as addressing labor rights issues becomes 

significantly more difficult after project approval. The disclosure timing problem is 

particularly acute with respect to the documentationintensive process of assessing 

country-level eligibility. If stakeholders have only seven days of notice that DFC 

intends to invest in a country that presents labor rights eligibility concerns, they 

will be unable to assemble the documentation and information needed to provide 

substantive input on country-level eligibility determinations. Consulting with 

stakeholders and lengthening the disclosure period may cause delay, in our view, 

but the delay is well worth it. Ensuring that outside organizations can provide 

substantive feedback before DFC commits to a project ensures that due diligence 

officers have the information needed to perform their function and steer DFC clear 

of costly, reputation-damaging violations of the ESPP. Once DFC has committed to 

providing support, its ability to influence project conduct is much diminished, and 

early engagement ensures that the decision to provide support is made with all 

relevant information to hand.

Disclosure, 

Consultation, Labor N

Parties may submit a petition for country eligiblity review 

to any of DFC's public hearings.

85 AFL-CIO 6.1.1.

Clients are required to submit a Development Outcomes 

Survey (DOS) starting 12 months after receiving DFC 

support and on an annual basis thereafter. The DOS 

reporting requirement provides an avenue for DFC to 

evaluate project data regarding development impact 

outcomes as well as compliance with DFC’s 

Environmental and Social Requirements.

These reports should include detailed information about the number of jobs 

created by the project and its quality of work. This information should be verified 

by workers in the community and compared with original projections. DOS N

The DOS contains questions related to project operational 

employment and employee benefits. The data submitted in 

the DOS is used to monitor project progress towards 

meeting projected development impact outcomes. 

86 TNC 6.1.1.

Clients are required to submit a Development Outcomes 

Survey (DOS) starting 12 months after receiving DFC 

support and on an annual basis thereafter. The DOS 

reporting requirement provides an avenue for DFC to 

evaluate project data regarding development impact 

outcomes as well as compliance with DFC’s 

Environmental and Social Requirements. Are there templates with articulated requirements for this? DOS N

Yes, the Development Outcomes Survey (DOS) is a 

standard form.

87 CARE C

Meaningful Consultation - A process that (1) begins early 

in the project preparation stage and is carried out on an 

on-going basis throughout the project life cycle; Needs to specify timeframes Editorial N

Expectations on timeframes for this process are captured 

in the IFC Performance Standards.

88 CSO Group 3

Objectives: (1) to determine eligibility of the Project and 

Client for DFC support on environmental and social 

grounds; (2) to determine a risk categorization for the 

Project based on the nature and magnitude of 

environmental and social risks and impacts, (3) to 

identify issues to be investigated in detail in the 

environmental and social review process; and (4) to 

determine requirements for documentation, 

consultation, disclosure, monitoring and reporting. 

Language in previous ESPP that should be added back in: including those project 

impacts that could preclude support

Editorial Y Comment accepted.

89 CSO Group 1. Intro

Therefore, DFC investments adhere to high standards 

and respect the environment, human rights and worker 

rights.

Tracked Changes: Therefore, DFC investments adhere to high standards and 

respect the environment, local communities, human rights, women’s, and worker 

rights. Editorial N

The ESPP introduction reflects DFC's mission and strategic 

priorities. 

90 CSO Group 1.2.1. Specifically, DFC expects and will support Clients to: Tracked Changes: Specifically, DFC requires Clients to: Editorial N This is the intention of this clause already.

91 CSO Group 1.2.1.

Assess the risks of deforestation and other land 

conversion for investments in infrastructure 

development, agriculture, land use planning or zoning, 

and energy siting and generation

Tracked Changes: Assess and mitigate the risks of deforestation and other land 

conversion for investments in infrastructure development, agriculture, land use 

planning or zoning, and energy siting and generation Editorial Y Comment accepted

92 CSO Group 1.2.1.

Ensure that Project Affected People are aware of and 

have access to mechanisms for voicing complaints and 

seeking remedy for harm 

Tracked Changes: Ensure that Project Affected People are aware of, understand 

the role of, and have access to efficient mechanisms for voicing complaints and 

seeking remedy for harm Editorial N

Added some clarity but otherwise this concept is captured 

in the requirements of IFC Performance Standards.
93 CSO Group 3.0.3.

During the screening process, DFC reviews the Project’s 

anticipated risks and impacts, its defined Area of 

Influence, and information on Project Affected People to 

determine whether the information is adequate, 

accurate, objective, and appropriate to the size and 

nature of Project activities. Additional information may 

be required from the Client and from independent 

experts.

During the screening process, DFC reviews the Project’s anticipated risks and 

impacts, its defined Area of Influence, and information on Project Affected People 

to determine whether the information is adequate, accurate, objective, and 

appropriate to the significance or severity of potential impactsize and nature of 

Project activities. Additional information may be required from the Client and from 

independent experts. Editorial Y Comment accepted

94 CSO Group 3.0.4.

In screening Projects, environmental, and social impacts 

that are direct, indirect, induced, supply-chain related, 

regional, trans-boundary, associated facilities related, 

and cumulative are considered. DFC assesses risk at key 

stages in the Project life cycle including pre-construction, 

construction, operations, decommissioning, closure, and 

where applicable, post-closure

Tracked Changes: In screening Projects, environmental, and social, and human 

rights impacts that are direct, indirect, induced, supply-chain related, regional, 

trans-boundary, associated facilities related, contextual and cumulative are 

considered. DFC assesses risk at key stages in the Project life cycle including preconstruction, construction, operations, decommissioning, closure, and where 

applicable, post-closure and will make such assessments public. DFC will 

additionally reassess risk upon changes in the project or local context. Editorial Y

DFC accepted the addition of "contextual" into the screeing 

criteria as it reflects current practice. DFC did not accept 

the other edits for the following reasons: we consider 

human rights within the environmental and social 

assessment; DFC does not plan to make screening 

assessments public at this time; and the re-assessment of 

environmental and socials risk through the lifetime of a 

project is addressed in the intro to Section 6: Monitoring 

and Reporting.

95 CSO Group 3.1.1.

DFC categorizes Projects based on a preliminary 

assessment of (1) the potential environmental and social 

risks and impacts within a Project’s Area of Influence in 

the absence of any required mitigation; (2) the Client’s 

commitment and capacity to effectively manage the 

environmental and social risks and impacts, including the 

ability to implement any required mitigation; (3) the 

potential role of third parties in achievement of 

successful outcomes; and (4) the scope and profile of 

Project Affected People, including Workers. 

Tracked Changes: DFC categorizes Projects based on a preliminary assessment of 

(1) the potential environmental and social risks and human rights impacts within a 

Project’s Area of Influence in the absence of any required mitigation; (2) the 

Client’s commitment and capacity to effectively manage the environmental and 

social risks and impacts, including the ability to implement any required mitigation 

and comply with DFC Commitment to Environmental and Social Sustainability 

(section 1.2.); (3) the potential role of third parties in achievement of successful 

outcomes; and (4) the scope and profile of Project Affected People, including 

Workers. Editorial N This is the intention of this clause already.

96 CSO Group 3.1.3.

Tracked Changes: Below are aspects of Projects that merit may lead to a higher 

categorization of environmental or social risk: Editorial N This is the intention of this clause already.

97 CSO Group 3.1.3.

Projects in locations, industries, or sectors with greater 

potential or adverse impacts on Project Affected People 

and Human Rights, including impacts to land and 

resources; health and safety; physical and/or economic 

displacement; demonstrated local opposition; significant 

in-migration; impacts to cultural heritage; gender-related 

impacts; or impacts to indigenous peoples or Vulnerable 

Groups. 

Tracked Chagnes: Projects in locations, industries, or sectors with greater potential 

for exclusion or adverse impacts on Project Affected People and Human Rights, 

including impacts to land and resources; health and safety; physical and/or 

economic displacement; demonstrated local opposition; significant in-migration; 

impacts to cultural heritage; gender-related impacts; or impacts to Indigenous 

peoples or Vulnerable Groups. Editorial N This is the intention of this clause already.

98 CSO Group 4.0.3.

DFC reviews the available documents related to 

environmental and social performance of the Project as 

well as the Client’s organizational capacity to assess 

whether they are adequate to address identified 

environmental and social risks and impacts and are 

appropriate to the size and nature of the Project activity. 

During the review process, DFC will identify the relevant 

Performance Standards that the Project is required to 

meet in addition to project-specific conditions and 

actions required to reach or maintain compliance with 

the Applicable Standards. 

Tracked Changes: DFC reviews the available documents related to environmental 

and social performance of the Project as well as the Client’s organizational capacity 

to assess whether they are adequate to address identified environmental and 

social risks and impacts and are appropriate to the significance or severity of 

potential impacts size and nature of the Project activity. During the review process, 

DFC will identify the relevant Performance Standards that the Project is required to 

meet in addition to project-specific conditions and actions required to reach or 

maintain compliance with the Applicable Standards. Editorial Y Comment accepted. (Now section 4.02)

99 CSO Group 4.0.4.

DFC’s review will consider direct, indirect, induced, 

Supply Chain-related, associated facilities, regional, transboundary, and cumulative environmental and social risks 

and impacts. DFC will also consider Contextual Risks and 

their potential to affect the environmental and social risk 

profile of the Project. 

Tracked Changes: DFC’s review will consider and disclose direct, indirect, induced, 

Supply Chain-related, associated facilities, regional, trans-boundary, and 

cumulative environmental, , and social, and human rights risks and impacts. DFC 

will also consider and disclose Contextual Risks and their potential to affect the 

environmental and social risk profile of the Project. These risks will be addressed by 

following the mitigation hierarchy which requires that such risks first be avoided; 

residual risks will be minimized and mitigated and impacts compensated for, 

remedied, or as a last resort where compensation and remedy fail to fully address 

residual risks and impacts, offset. . Editorial N

The substance of the suggested added text is included in 

the introduction of this section. 

100 CSO Group 4.0.8.

As needed, DFC may undertake on-site due diligence 

visits for higher risk projects and/or engage independent 

experts for additional support in its review. 

Tracked Changes: As needed, DFC willmay undertake on-site due diligence visits for 

Category A and other higher risk projects and/or engage independent experts for 

additional support in its review. Editorial N

DFC always endeavors to undertake site visits, but 

sometimes in-country security or health restriction 

situations preclude those visits. 
101 CSO Group 4.1.1. 

The Client must demonstrate a sound understanding of 

the Project and have undergone a process to (1) identify 

all factors that define the Project’s Area of Influence; (2) 

identify potential project-related environmental and 

social risks and impacts, including any disproportionate, 

gender-specific risks and impacts such as the risks of 

exclusion, gender discrimination, and risks of harm; (3) 

identify and commit to appropriate mitigation measures 

including adequate resources for implementation; and 

(4) identify relevant Project Affected People and other 

interested Stakeholders that may be directly or indirectly 

affected by the Project, including groups that may be 

differentially or disproportionately affected by the 

Project because of their disadvantaged or vulnerable 

status. The process of identifying risks, impacts, Area of 

Influence and Project Affected People shall be adequate, 

accurate, objective, and appropriate to the severity of 

Project risks and significance of Project impacts.

Tracked Changes: The Client must demonstrate a sound understanding of the 

Project and have undergone a process to (1) identify all factors that define the 

Project’s Area of Influence; , including indirect or secondary impacts; (2) identify 

potential project-related environmental and social risks and impacts , including any 

disproportionate, gender-specific risks and impacts such as the risks of exclusion, 

gender discrimination, and risks of harm; (3) identify and commit to appropriate 

mitigation measures including adequate resources for implementation; and (4) 

identify relevant Project Affected People and other interested Stakeholders that 

may be directly or indirectly affected by the Project, including groups that may be 

differentially or disproportionately affected by the Project because of their 

disadvantaged or vulnerable status Editorial Y Comment accepted in part.

102 CSO Group 4.1.2.

Key potential social impacts and risks, including 

identification and a description of impacts on any Project 

Affected People and disadvantaged or Vulnerable 

Groups, as well as gender-related risks and impacts

Tracked Chagnes: Key potential social impacts and risks, including identification and 

a description of impacts on any Project Affected People and each disadvantaged or 

Vulnerable Group, as well as gender-related risks and impacts Editorial N This is already implied in the existing text.

103 CSO Group 5.1.6.

At the same time the ESIA and/or Baseline Audit is 

released for public comment, DFC drafts and posts on its 

website an initial project summary. The initial project 

summary outlines:

-Project name, location, and description

-DFC’s initial environmental and social screening and 

categorization

-Description of the anticipated major environmental and 

social risks and impacts of the Project

-Anticipated Applicable Standards

-Location of local disclosure of ESIA and/or Baseline 

Audit

Track Changes: At the same time the ESIA and/or Baseline Audit is released for 

public comment, DFC drafts and posts on its website an initial project summary. 

The initial project summary outlines:

-Project name, location, and description

-DFC’s initial environmental and social screening and categorization

-Description of the anticipated major environmental and social risks and impacts of 

the Project, including anticipated impacts on Project Affected People

-Anticipated Applicable Standards

-Location of local disclosure of ESIA and/or Baseline Audit Editorial N This is already implied in the existing text.

104 CSO Group 5.2.3.

ESIAs, Baseline Audits and any other environmental and 

social documents requested by DFC that are submitted 

for public disclosure must be in English or accompanied 

by an English language translation. 

Tracked Chagnes: ESIAs, Baseline Audits (including labor and social audits) and any 

other environmental and social documents requested by DFC that are submitted 

for public disclosure must be in English or accompanied by an English language 

translation. Editorial N

Baseline audits include social and labor audits and/or these 

types of audits would be included as part of "any other 

enviromental and social documents." 

105 CSO Group 6.1.5.

In the event that monitoring by DFC, DFC’s independent 

experts, or third-party audits finds gaps in the Project’s 

or Client’s compliance with the Environmental and Social 

Requirements of the DFC Agreement, Clients will be 

required to implement corrective actions within a 

timeframe that is reasonable and feasible as determined 

by DFC in order to achieve compliance and to provide 

DFC with periodic updates on implementation. The Client 

may be subject to additional monitoring by DFC or its 

independent experts to ensure corrective actions are 

adequately implemented and that compliance has been 

achieved and maintained. 

Tracked Changes: In the event that monitoring by DFC, DFC’s independent experts, 

or third-party audits finds gaps in the Project’s or Client’s compliance with the 

Environmental and Social Requirements of the DFC Agreement, Clients will be 

required to implement develop corrective action plans in consultation with DFC 

and affected communities, and implement all agreed corrective actions within a 

timeframe that is reasonable and feasible as determined by DFC in order to achieve 

compliance and to provide DFC and affected communities with periodic updates 

(normally quarterly, but no less than every six months) on implementation. The 

Client may be subject to additional monitoring by DFC or its independent experts to 

ensure corrective actions are adequately implemented and that compliance has 

been achieved and maintained through legally binding contracts. Editorial N This is already implied in the existing text.

106 CSO Group 7

Objectives: (1) to establish specific requirements for 

environmental and social performance in DFC 

Agreements; and (2) to define corrective actions in the 

event such requirements are not met.

Tracked Changes: Objectives: (1) to establish specific requirements for 

environmental and social performance in DFC Agreements; and (2) to define 

corrective actions and remedies in the event such requirements are not met. Editorial N

Corrective actions are meant to incorporate any remedial 

actions needed to reach compliance. 

107 CSO Group A 

Projects or companies known to be in violation of local 

applicable law related to environment, social, health, 

safety, labor, and public disclosure. 

Tracked Changes: Projects or companies known to be in violation of local applicable 

law related to 

protection of environment, and of social, health, safety, and labor 

rights, and public disclosure requirements. Editorial Y Comment accepted.
108 CSO Group C

Area of Influence – The area likely to be affected by: (i) 

the Project and the Client’s activities and facilities that 

are directly owned, operated or managed (including by 

contractors) and that are a component of the Project; (ii) 

impacts from unplanned but predictable developments 

caused by the project that may occur later or at a 

different location; or (iii) indirect project impacts on 

biodiversity or on ecosystem services upon which Project 

Affected People’s livelihoods are dependent. 

Tracked Changs: Area of Influence – The area potentially likely to be affected by: (i) 

the Project and the Client’s activities and facilities that are directly owned, 

operated or managed (including by contractors) and that are a component of the 

Project; (ii) impacts from unplanned but predictable developments caused by the 

project that may occur later or at a different location; or (iii) indirect project 

impacts on biodiversity or on ecosystem services upon which Project Affected 

People’s livelihoods are dependent. Editorial Y Comment accepted.

109 CSO Group C

Energy Intensive Sectors – Projects in the following 

sectors: aluminum, brewing, cement, mining, corn 

refining, forest products, glass, metal casting, motor 

vehicle manufacturing, oil and natural gas production, 

petroleum refining, pharmaceuticals, pulp and paper, 

steel and iron, and thermal power.

Tracked Changes: Energy Intensive Sectors – Projects in the following sectors: 

aluminum, brewing, cement, mining, corn refining, forest products, glass, metal 

casting, motor vehicle manufacturing, oil and natural gas production, 

petrochemicals, petroleum refining, pharmaceuticals, pulp and paper, steel and 

iron, and thermal power. Editorial Y Comment accepted.

110 CSO Group C

Environmental and Social Impact Assessment (ESIA) – An 

instrument to identify and assess the potential 

environmental and social impacts of a proposed project, 

evaluate alternatives, and design appropriate mitigation, 

management, monitoring, and reporting measures. The 

assessment will be based on current and/or recent 

information, and environmental and social baseline data, 

including gender disaggregated data, at an appropriate 

level of detail and using scientifically-sound 

methodologies. Required for all Projects involving 

significant, new (greenfield) developments or significant 

expansion of existing facilities.

Tracked Changes: Environmental and Social Impact Assessment (ESIA) – An 

instrument to identify and assess the potential environmental and social impacts of 

a proposed project, evaluate alternatives including renewables for energy 

projects, and design appropriate mitigation, management, monitoring, and 

reporting measures. The assessment will be based on current and/or recent 

information, and environmental and social baseline data, including gender 

disaggregated data, at an appropriate level of detail and using scientifically-sound 

methodologies. Required for all Projects involving significant, new (greenfield) 

developments or significant expansion of existing facilities. Editorial N

Where possible given the stage of the project being 

considered, DFC will also evaluate any renewable or lesseremitting alternatives for the project. 

111 CSO Group C

Tracked Changes: Project Affected People – Individuals, local communities, 

indigenous peoples and Workers, including those within the Supply Chain, as well 

as community-based or worker groups, which are or could be affected by the 

Project's Area of Influence, directly or indirectly, including as a result of cumulative 

impacts. Emphasis should be placed on those who are directly and adversely 

affected, disadvantaged or vulnerable. Editorial Y Edits accepted.

112 DOL/ILAB B

Projects that pose significant occupational or community 

health and safety risks. 

In this context, suggest 'health OR safety' risks. There are health and safety 

standards, but a project may pose only safety risks or only health risks. Editorial Y Comment accepted.

113 TNC 1. Intro

The U.S. International Development Finance Corporation 

(DFC) is the U.S. Government’s development bank. DFC 

partners with the private sector to support solutions to 

the most critical challenges facing the developing world 

today "governments, NGOs, civil society partners, and the...” Editorial N

The ESPP introduction reflects DFC's mission and strategic 

priorities. 

114 TNC 1. Intro

We invest across sectors including energy, healthcare, 

critical infrastructure, and technology projects. Environmental projects? Editorial N

The ESPP introduction reflects DFC's mission and strategic 

priorities. 

115 TNC 1. Intro

DFC believes that environmental and social sustainability 

is an essential component of the solutions it supports . 

I appreciate the simple approach but would encourage an additional one sentence 

values-based justification. Why is it essential? Editorial N

The ESPP introduction reflects DFC's mission and strategic 

priorities. 

116 TNC 1.0.

The purpose of the Environmental and Social Policy and 

Procedures (ESPP) is to set out DFC commitments for 

environmental and social screening, review, risk 

mitigation and monitoring that will help ensure the 

environmental and social sustainability of DFC-supported 

projects. To ensure* Editorial N

DFC cannot control outcomes but can exercise its leverage 

to influence them, and that is reflected in this paragraph.

117 TNC 1.2.1.

Identify, assess, and avoid adverse environmental and 

social impacts of the Project and, if such impacts are 

unavoidable, properly minimize, mitigate, compensate, 

and/or remedy impacts through application of the 

mitigation hierarchy “through the effective application” Editorial N This is the intention of this clause already.

118 TNC 1.2.1.

Respect Human Rights, Labor Rights, and the rights of 

Project Affected People 

This should be higher up on the list. I would encourage you reordering this to 

prioritize the bullets on human rights and social safeguards over these 

deforestation and ecosystem-based priorities. Editorial N This list is not prioritized by order.

119 TNC 1.2.1.

Ensure that Project Affected People are aware of and 

have access to mechanisms for voicing complaints and 

seeking remedy for harm “a project-level grievance mechanism” Editorial Y Comment accepted.
120 TNC 2

Objectives: (1) to specify DFC’s required standards of 

performance necessary to achieve environmentally and 

socially sustainable outcomes; and (2) to specify 

additional sector-specific requirements

I would frame this more around identifying and addressing risks, rather than 

ensuring target outcomes. Safeguards systems screen for risks/impacts first and 

foremost. Ensuring outcomes is more about the broader approach to 

implementation and MEL. 

-I would not just reduce it to a risk analysis. This in fact should be to allow DFI’s to 

achieve positive net outcomes. I would recommend to include both: to reduce risks 

and achieve positive outcomes.

-Agreed. Editorial Y

Risk avoidance and environmental and social sustainability 

are not mutually exclusive; we have updated the text to 

reflect the focus on both.

121 TNC 2.0.1.

This ESPP adopts, as a standard for the environmental 

and social review process, the International Finance 

Corporation’s (IFC) Performance Standards on Social and 

Environmental Sustainability (Performance Standards), 

and the World Bank Group Environmental, Health and 

Safety (EHS) Guidelines

“...as the process for the assessment and management of environmental and social 

risks and impacts”

-I would recommend to rephrase this to ensure the adoption of the Standard is still 

highlighted. ... adopts IFC as a standard for assessment, review and management of 

environmental and social risks and impacts.... Editorial Y Comment accepted.

122 TNC 3 3. Screening and Categorization

A graphic visualizing the steps DFC requires would be helpful. TNC is happy to 

provide an example to work from, if requested. Editorial N

We welcome examples that have been successful 

elsewhere. These types of visuals are more appropriate for 

internal guidelines.

123 TNC 3.0.3.

During the screening process, DFC reviews the Project’s 

anticipated risks and impacts, its defined Area of 

Influence, and information on Project Affected People to 

determine whether the information is adequate, 

accurate, objective, and appropriate to the size and 

nature of Project activities. Additional information may 

be required from the Client and from independent 

experts. “...Preliminary anticipated risks and impacts” Editorial N This is the intention of this clause already.

124 TNC 3.1.3.

Below are aspects of Projects that may lead to a higher 

categorization of environmental or social risk: I might consider putting this in an annex to save some pages. Editorial N Please see Illustrative Category A list in Appendix B.

125 TNC 3.1.3.

Projects in locations, industries, or sectors with greater 

potential or adverse impacts on Project Affected People 

and Human Rights, including impacts to land and 

resources; health and safety; physical and/or economic 

displacement; demonstrated local opposition; significant 

in-migration; impacts to cultural heritage; gender-related 

impacts; or impacts to indigenous peoples or Vulnerable 

Groups. Capitalize and move up higher on this list. Editorial N

Capitalization is for defined terms. Indigenous peoples are 

defined in the IFC Performance Standards and thus would 

be repetitive here. Ordering of the bullet points is not 

reflective of importance. 

126 TNC 4.0.1.

This may involve reviewing a Project’s ESIA (See Section 

4.2.), its Environmental and Social Management System 

(ESMS), and/or the Client’s relevant policies, plans and 

procedures It should involve Editorial N

The BUILD act only requires ESIA for highest risk projects 

(Category A).

127 TNC 4.0.4.

DFC’s review will consider direct, indirect, induced, 

Supply Chain-related, associated facilities, regional, transboundary, and cumulative environmental and social risks 

and impacts. DFC will also consider Contextual Risks and 

their potential to affect the environmental and social risk 

profile of the Project. This is the repetition of 4.0.2 Editorial Y Noted, thank you. Deleted the repeated text. 

128 CSO Group 8.1.2.

DFC determines the environmental and social risk 

categorization for FI Transactions. The environmental 

and social risk categorization is commensurate with the 

environmental and social risk profile of the FI’s existing 

or proposed portfolio and considers the type, size, and 

sector exposure of the Subprojects in the portfolio. 

Tracked Changes: DFC determines the environmental and social risk categorization 

for FI Transactions. The environmental and social risk categorization is 

commensurate with the environmental and social risk profile of the FI’s existing 

andor proposed portfolio and considers the type, size, and sector exposure of the 

Subprojects in the portfolio. Editorial Y

DFC will look at a Fund's existing transactions as part of its 

general diligence, but would examine the specific 

investment strategy proposed for DFC support when 

determining categorization. 

129 CSO Group C Vulnerable Groups definition

Tracked Changes: Vulnerability is context-specific and should be understood 

through the interplay of three factors: (i) exposure to contextual risks and adverse 

impacts; (ii) sensitivity to those risks and impacts; and (iii) adaptive capacity. Editorial N

This addition is more restrictive/limited than the intention 

of the text. 

130 CSO Group

Cover 

letter

3)	Specificity: We have identified several areas where the ESPP uses vague 

language, such as “a substantial duration of time” (Section 2.3.1), “time frame 

considered reasonable and feasible” (Section 3.02), and “require timely 

notification” (Section 6.1.2). DFC should add greater specificity in line with industry 

best practices to clarify the ESPP's requirements of itself and its clients. Editorial N

The ESPP uses such language because it covers the entirety 

of the DFC portfolio. In the Project-specific assessments 

and legal agreements, specific timeframes are determined.

131 TNC 4.1.2.

Key potential environmental impacts and risks, including 

estimated Direct and Indirect Emissions of Greenhouse 

Gases and impacts on biodiversity

Editorial, 

Biodiversity Y Edit accepted.
132 CARE 1.2.1.

Identify disproportionate, gender-specific impacts of the 

Project and take steps to mitigate the risks of exclusion, 

discrimination, and harm, including the risk of GenderBased Violence and Harassment (GBVH) 

Tracked Changes: Identify disproportionate and overlapping, gender-specific 

impacts of the Project and take steps to mitigate the risks of exclusion, 

discrimination, and harm, including the risk of Gender-Based Violence and 

Harassment (GBVH) Editorial, Gender N This is already implied in the existing text.

133 CSO Group C

 ( 

country, sector, or subnational level) that the Client does 

not control but which could negatively impact a Project’s 

or Client’s ability to meet the Applicable Standards. Risks 

may be due to current circumstances or systemic, legacy 

and/or historic issues. Key risk factors may include:

-Socially sensitive and/or labor-intensive sectors (e.g., 

sectors with known labor or human rights violations, risk 

of child/forced labor, elevated risks of gender 

discrimination or GBVH, hazardous work, involvement of 

significant armed security personnel, major 

environmental and social risks associated with the supply 

chain and/or sectors that have been subject to recent, 

documented public opposition)

-Broader, socially sensitive context (e.g., political or 

social conflict, country contexts with reported human 

rights violations, weak governance 

systems/enforcement, recent or ongoing humanitarian 

crisis, restricted civic space/ reprisal risk, relatively 

higher levels of gender inequality or GBVH, ethnic 

discrimination/violence, large nearby presence of 

indigenous peoples and/or Vulnerable Groups)

-Residual or unmitigated adverse impacts (e.g., legacy of 

displacement, inadequate consultation, or unresolved 

grievances)

-Environmental and community health and safety factors 

(e.g., biodiversity, ecosystem services, and climate 

change; access to natural resources; health and 

Tracked Changes: Key risk factors may include:

-Socially sensitive and/or labor-intensive sectors (e.g., sectors with known labor or 

human rights violations, risk of child/forced labor, hazardous work, elevated risks 

of work and employment gender discrimination against Vulnerable Groups or 

GBVH, hazardous work, involvement of significant armed security personnel, major 

environmental and social risks associated with the supply chain and/or sectors that 

have been subject to recent, documented public opposition)

-Broader, socially sensitive historical context (e.g., political, or social or violent 

conflict, country contexts with reported human rights violations, weak governance 

systems, lack of rule of law/enforcement, recent or ongoing humanitarian crisis, 

war, restricted civic space/ reprisal risk, relatively higher levels of gender inequality 

or GBVH, ethnic discrimination/violence, large nearby presence of indigenous 

peoples and/or Vulnerable Groups)

-Residual or unmitigated adverse social and environmental impacts including from 

previous development projects (e.g., legacy of displacement, inadequate 

consultation, or unresolved grievances)

-Environmental and community health and safety factors (e.g., biodiversity, 

ecosystem services, and climate change; access to natural resources; health and 

population)

Editorial, Gender Y

Edits generally accepted. See definition of "Contextual 

Risk."

134 TNC 1.2.1.

Undertake Meaningful Consultation with Project 

Affected People regarding Project activities, including 

engagement with Vulnerable Groups “prioritized engagement...” Editorial, Gender N This is already implied in the existing text.

135 CARE 3.2.2.

Corporate Investment Projects deemed to be Category A 

will have the same requirements as for traditional 

project finance Category A projects including 

Environmental and Social Impact Assessment (ESIA) 

/Baseline Audit and disclosure requirements as described 

in Sections 4.2. and 5.1. Should be expanded to all projects. ESIA N

The BUILD act only requires ESIA for highest risk projects 

(Category A).

136 CSO Group 4.2.1.

For Projects that involve significant greenfield 

development or expansions or modifications of existing 

projects, the Client is required to prepare an ESIA aligned 

with DFC’s Applicable Standards (or other standards 

deemed equivalent by DFC). ESIAs are required to 

include a Climate-related Vulnerability assessment (See 

Chapter 9). This is applicable to all greenfield Category A 

Projects, and some greenfield Category B Projects. 

Tracked Changes: For all Category A and Category B Projects that involve significant 

greenfield development or expansions or modifications of existing projects, the 

Client is required to prepare an ESIA aligned with DFC’s Applicable Standards (or 

other standards deemed equivalent by DFC). ESIAs are required to include a 

Climate-related Vulnerability and double materiality assessment (17) (See Chapter 

9). This is applicable to all greenfield Category A Projects, and some greenfield 

Category B Projects. 

(17) This means that clients have to assess and report not only on how climate 

might create risks for the project (climate vulnerability), but also on the project's 

own impacts on climate and the environment (climate/environmental impact). ESIA N

The BUILD act only requires ESIA for highest risk projects 

(Category A) and the other suggestions are not feasible at 

this time.

137 CSO Group 4.2.2.

For any Category A and for some Category B Projects 

that include existing or operating facilities, DFC requires 

the submission of a Baseline Audit or targeted study 

depending on potential environmental and social risks.

Tracked Changes: In addition to an ESIA, any Category A and for some Category B 

Projects that include existing or operating facilities, DFC requires the submission of 

a Baseline Audit or targeted study depending on potential environmental and social 

risks. ESIA N

The intent of Section 4(c)(i) and 4(c)(ii) is to differentiate 

what is required in the case that the project is a greenfield 

(ESIA) or a brownfield (baseline audit) investment. In rare 

cases where there is both brownfield and greenfield, we 

would need an ESIA for greenfield AND an baseline audit 

for brownfield. 
138 CSO Group 4.2.3.

Tracked Changes: For lower risk, category B projects that don’t fall under 

Paragraph 4.2.1. and 4.2.2. above, such as those that include modernization and 

upgrade of existing production facilities or no major expansion or transformations, 

a limited or focused environmental and social analysis or study may be sufficient. ESIA N

DFC dictates the scope and scale of the assessment 

required. 

139 CSO Group 5.1.8.

5.1.8.	A Project’s ESIA and/or Baseline Audit submitted for 

disclosure may not contain all of the final negotiated 

measures to mitigate or remediate environmental and 

social risks and impacts. DFC’s project information 

summary (see Paragraph 5.1.1.) describes any additional 

measures required to achieve compliance with the 

Applicable Standards. 

Tracked Changes: A Project’s ESIA and/or Baseline Audit submitted for disclosure 

may not contain all of the final negotiated measures to mitigate or remediate 

environmental and social risks and impacts. However, DFC will develop official 

protocol to confirm ESIAs are valid documents that are robust and credible, 

particularly in cases where external consultants, project developers, and/or local 

governments create the ESIA. DFC’s project information summary (see Paragraph 

5.1.1.) describes any additional measures required to achieve compliance with the 

Applicable Standards. ESIA N This is best suited for internal procedures and guidance.

140 CSO Group 5.2.2.

For Category A Projects, Clients are required to submit to 

DFC an ESIA and/or Baseline Audit and Stakeholder 

engagement plan for public disclosure on the DFC 

website (See Paragraph 5.1.3.). 

Tracked Changes: For Category A and Category B Projects, Clients are required to 

submit to DFC an ESIA and/or Baseline Audit and Stakeholder engagement plan for 

public disclosure on the DFC website (See Paragraph 5.1.3.). ESIA N

The BUILD act only requires ESIA for highest risk projects 

(Category A).

141 TNC 4.0.1.

This may involve reviewing a Project’s ESIA (See Section 

4.2.), its Environmental and Social Management System 

(ESMS), and/or the Client’s relevant policies, plans and 

procedures

Who decides the scope/scale of the ESIA and criteria? It seems that the screening 

outlines this but there’s no note thus far that makes this explicit. ESIA N This is best suited for internal procedures and guidance.

142 TNC 4.2.3.

For lower risk, category B projects that don’t fall under 

Paragraph 4.2.1. and 4.2.2. above, such as those that 

include modernization and upgrade of existing 

production facilities or no major expansion or 

transformations, a limited or focused environmental and 

social analysis or study may be sufficient. 

Does the DFC dictate the scope and scale of assessment required? B projects 

general include what is called a Limited Scope ESIA if aligned with IFC standards. ESIA N

DFC dictates the scope and scale of the assessment 

required.

143 TNC 5.2.4.

The Client is required to provide to DFC a local language 

translation of the executive summary of the ESIA and/or 

Baseline Audit and make the summary available to 

Project Affected People in a format that is readily 

understandable, at a location that is accessible locally to 

the Project, and tailored to meet the information needs 

of Project Affected People. The translated summary 

should be distributed by means that account for the 

ability of Project Affected People to receive, address and 

effectively comment on the content. The location of local 

disclosure by the Client will be disclosed in DFC’s initial 

project summary (see Paragraph 5.1.6.). 

The IFC standard is disclosure of the full ESIA with readily available and accessible 

opportunities to provide input into it before its approval. ESIA N

DFC discloses the full ESIA on its website to allow for 

opportunities to provide input. As part of this package, the 

non-technical summary is translated into the local 

language(s) and the physical location of these documents 

in the host country. The ability to provide input before ESIA 

approvals is dictated by local law. IFC Performance 

Standards requirements outline the expectations for 

stakeholder engagement and reflect the points included in 

the comment. If there are gaps in the engagement method 

and practice, DFC will require the Project to address those 

gaps.

144 CSO Group 7.1.3.

In the case of a curable default, corrective actions are 

generally required by DFC to cure the default. In the case 

of an incurable default, DFC may exercise contractual 

remedies including insurance contract termination, 

acceleration of loan repayment, divestiture of an 

investment of a DFC-supported investment fund, or sale 

of a direct equity investment. 

Tracked Changes: In the case of a curable default, remediation and corrective 

actions are generally required by DFC to cure the default. In the case of an 

incurable default, DFC may exercise contractual remedies including insurance 

contract termination, acceleration of loan repayment, divestiture of an investment 

of a DFC-supported investment fund, or sale of a direct equity 

investment.investment. Upon deciding to terminate a contract, accelerate loan 

repayment or divest from an investment the DFC will create and disclose a plan for 

responsible exit from the project in coordination with project affected people. This 

will ensure remediation and corrective actions are taken to address harms to 

project affected people before the exit occurs. Exit N

DFC is following conversations with fellow DFIs and our 

stakeholders on the issue of responsible exits. DFC has not 

identified a policy position at this time.

145 CSO Group 2.1.2.

Performance Standard 1 (Assessment and Management 

of Environmental and Social Risks and Impacts) and 

Performance Standard 2 (Labor and Working Conditions) 

are applicable to all Projects and Clients regardless of 

their environmental and social risks and impacts. 

Applicability of the other Performance Standards and 

any other sector-specific requirements is dependent on 

the nature of the Project and its environmental and 

social risks and impacts 

Tracked Changes: Performance Standard 1 (Assessment and Management of 

Environmental and Social Risks and Impacts) and Performance Standard 2 (Labor 

and Working Conditions) are applicable to all Projects, Subprojects, and Clients 

regardless of their environmental and social risks and impacts. Applicability of the 

other Performance Standards and any other sector-specific requirements is 

dependent on the nature of the Project or Sub-project and its environmental and 

social risks and impacts FIs N

Section 1 includes sub-projects in the applicability of the 

ESPP requirements. 

146 CSO Group 2.1.4.

Where host country requirements differ from the 

Applicable Standards, the Project is expected to meet 

whichever are more stringent.

Tracked Changes: Where host country requirements differ from the Applicable 

Standards, the Project or Sub-Project is expected to meet whichever are more 

stringent. FIs N

Section 1 includes sub-projects in the applicability of the 

ESPP requirements. 
147 CSO Group Table Description and Examples Category FI-A (Table)

Tracked Changes: The use of proceeds of the DFC investment is expected to include 

exposure to business activities with potentially significant adverse environmental 

or social risks or impacts that are diverse, difficult to reverse irreversible or rare 

unprecedented in the absence of adequate mitigation measures. 

FIs that invest in major infrastructure construction, Extractive Industries, or largescale forestry; lending to micro-, small- and medium-enterprises; and equity 

investments in banks that have significant portfolio exposure to Extractive 

Industries or fossil fuel-related infrastructure; FI investments projects affecting 

Indigenous peoples, their land, and/or livelihoods.; RE investments that require 

land acquisition or resettlement. FIs Y Some edits accepted. 

148 CSO Group Table Description Category FI-B (Table)

Tracked Changes: The use of proceeds of the DFC investment is expected to include 

exposure to business activities that have limited adverse environmental or social 

risks and impacts that are few in number, generally site specific, largely 

reversiblereversable and readily addressed through mitigation measures. FI-B 

subproject environmental and social risks are often characterized as “moderate” or 

risks that are considered less adverse than Category A risks in terms of magnitude 

and likelihood of occurrence. FIs Y Corrected the typo, thank you, but otherwise no change.

149 CSO Group Table Examples Category FI-C (Table)

Tracked Changes: FIs that invest in tech or tech-enabled investments that do not 

involve significant physical assets and investments in financial institutions or fundof-funds. Also applicable to loans to banks where the use of proceeds will involve 

lending to micro-, small- and medium-enterprises, mortgage and retail banking, 

leasing of small or light equipment, factoring and insurance. FIs N

Client protection risks are being addressed through the 

development of targeted procedures and are evaluated 

separately from the environmental and social 

categorization.

150 CSO Group 8.2.2.

DFC will review and assess: (1) the FI’s existing 

environmental and social policies and procedures and its 

capacity to implement them; (2) available environmental 

and social due diligence or monitoring reports that may 

illustrate the FI’s prior environmental and social 

performance; (3) environmental and social risks and 

impacts associated with the FI’s existing portfolio and 

expected future Subprojects; and (4) measures necessary 

to strengthen the FI’s existing Environmental and Social 

Management System (ESMS).

Tracked Changes: DFC will review and assess: (1) the FI’s existing environmental 

and social policies and procedures and its capacity to implement them; (2) available 

environmental and social due diligence or monitoring reports that may illustrate 

the FI’s prior environmental and social performance; (3) environmental and social 

risks and impacts associated with the FI’s existing portfolio and expected future 

Subprojects; and (4) measures necessary to strengthen the FI’s existing 

Environmental and Social Management System (ESMS); and (5) existence and 

quality of a grievance and redress mechanism.. FIs N

This is considered an element of points 1-5 in Section 

8(c)(2).

151 CSO Group 8.2.3.

For FI-A and some FI-B Transactions, DFC may conduct onsite due diligence to further evaluate the FI and its 

management capacity to implement the ESMS. As 

needed, DFC may engage independent experts for 

additional support in its due diligence.    

Tracked Changes: For FI-A, and some FI-B Transactions, DFC willmay conduct onsite due diligence to further evaluate the FI and its management capacity to 

implement the ESMS. For some FI-B Transactions, DFC may conduct on-site due 

diligence. As needed, DFC may engage independent experts for additional support 

in its due diligence. 

FIs N

DFC identifies projects, mode, and frequency of monitoring 

acitivites commensurate to the specific risk profile of 

project. 

152 CSO Group 8.2.4.

The FI is required to submit to DFC an ESIA and/or 

Baseline Audit (See Section 4.2.) and Stakeholder 

engagement plan for review prior to DFC support for all 

Category A and some Category B Subprojects, as 

determined by DFC. 

Tracked Changes: The FI is required to submit to DFC an ESIA and/or Baseline Audit 

(including labor and social audits) (See Section 4.2.) and Stakeholder engagement 

plan prioritizing right to participation and meaningful consultation of communities 

throughout the project life cycle for review prior to DFC support for all Category A 

and some Category B Subprojects, as determined by DFC. FIs N

The expectations of stakeholder engagement are captured 

in the IFC Performance Standards.
153 CSO Group 8.2.5.

DFC will evaluate and monitor the effectiveness of the 

FI’s environmental and social risk management 

throughout the project lifecycle. This may include review 

of annual environmental and social reports, 

communication and meetings with the FI on 

environmental and social performance of its portfolio 

and/or on-site monitoring of the Subprojects. 

Tracked Changes: DFC will evaluate and monitor the effectiveness of the FI’s 

environmental and social risk management throughout the project lifecycle. This 

willmay include review of annual environmental and social reports, communication 

and meetings with the FI on environmental and social performance of its portfolio 

and/or on-site monitoring of the Subprojects. FIs N

The is a wide variety of FIs and they come to DFC in various 

stages of their strategy. DFC needs to maintain flexibility to 

address cases as most appropriate to their specific risk 

profile and status.

154 CSO Group 8.3.1.

FI-A and FI-B Transactions are required to establish and 

maintain an ESMS that meets the requirements of 

Performance Standard 1. The level of detail and 

complexity of the ESMS should be commensurate with 

the potential risks and impacts of the portfolio. 

Tracked Changes: FI-A Transactions are required to establish and maintain an ESMS 

that meets the requirements of all Performance Standards. 

and FI-B Transactions 

are required to establish and maintain an ESMS that meets the requirements of 

Performance Standards 1, 2, 5 and 7 among others, commensurate with the 

potential risks and impacts of the portfolio . The level of detail and complexity of 

the ESMS should be commensurate with the potential risks and impacts of the 

portfolio. FIs Y

Updated text to clarify managment expectations for FIs. 

Similarly to other types of investments, as the IFC 

Performance Standards are triggered the FI needs to be 

managing those risks in accordance with the requirements 

of the triggered Performance Standards.

155 CSO Group 8.3.4.

The FI is required to put in place a methodology to track, 

monitor, and report its Greenhouse Gas emissions at the 

portfolio level and to provide annual accounting to DFC. 

Tracked Changes: The FI is required to put in place a methodology to track, 

monitor, and report its Greenhouse Gas Scope 1, 2 and 3 emissions at the portfolio 

level and disaggregated by sector and/or asset class and financial instrument and 

to provide annual accounting to DFC. FIs N

Currently, DFIs are struggling with getting even Scope 1 

data.

156 CSO Group 8.3.6.

The FI shall provide DFC with any requested ESIAs, 

environmental and social due diligence reports, 

monitoring reports, and other environmental and social 

documentation. 

Tracked Changes: The FI shall provide DFC with any requested ESIAs, 

environmental and social due diligence reports, monitoring reports, and other 

environmental and social documentation., including stakeholder engagement 

plans, and grievance and redress mechanism policy and procedures, and 

alternatives assessments. FIs Y Partially accepted edit.

157 CSO Group 8.3.8. 3

Tracked Changes: All FIs are requiredencouraged to publish relevant environmental 

and social policies and performance indicators on their website. This will may 

include corporate environmental and social policies, a summary of their ESMS, 

and/or environmental and social performance reports, if available. FIs N

The is a wide variety of FIs and they come to DFC in various 

stages of their strategy. DFC needs to maintain flexibility to 

address cases as most appropriate to their specific risk 

profile and status.

158 CSO Group 8.4.1.

For any Subproject determined to be Category A, the FI is 

required to submit to DFC an ESIA and/or Baseline Audit 

and Stakeholder engagement plan for the Subproject 

which are deemed adequate by DFC for disclosure on 

DFC’s website for a public comment period of not less 

than 60 days. T

Tracked Changes: For any Subproject determined to be Category A and some 

Category B, the FI is required to submit to DFC an ESIA and/or Baseline Audit and 

Stakeholder engagement plan for the Subproject which are deemed adequate by 

DFC for disclosure on DFC’s website for a public comment period of not less than 

60 days. FIs N

DFC is not expanding the BUILD Act disclosure 

requirements.

159 CSO Group 8.4.2.

FIs are encouraged to list on their website the link to any 

publicly disclosed ESIA reports for Category A 

Subprojects. 

Tracked Changes: FIs are required encouraged to list on their website the link to 

any publicly disclosed ESIA reports including stakeholder engagement plans and 

alternatives assessments for Category A Subprojects. and some Category B 

Subprojects. FIs N

DFC is not expanding the BUILD Act disclosure 

requirements.

160 CSO Group

Cover 

letter

5)	Financial Intermediaries (FI): DFC must disclose environmental and social impact 

documents for FIs and subprojects and commit to greater implementation 

oversight. To date, the undersigned groups have not seen any environmental and 

social impact documents for subprojects despite the great deal of support that DFC 

provides to FIs. These FIs have been involved in impact-heavy sectors, such as 

energy, which should have required the release of environmental and social impact 

documentation and accounting. This gap demonstrates a concerning disconnect 

between the ESPP and what policies are applied during implementation. DFC 

should provide sufficient oversight of FIs to confirm environmental and social 

impact documents are created and submitted to DFC, then disclose these materials 

publicly on DFC’s website. FIs N

DFC has always disclosed Category A subprojects, which is 

relatively unique among DFIs.

161 TNC Ch 8

Objectives: (1) to define environmental and social risk 

categories specific to Financial Intermediaries; (2) to 

outline approach for DFC’s review of Financial 

Intermediaries and their Subprojects; and (3) to specify 

requirements for documentation, disclosure and 

reporting. 

You should define the role of the entity managing the FI more clearly and the 

reporting/management structures you would require from managing entities and 

FIs. See the IFC/World Bank Performance Standard on Financial Intermediation. FIs Y

Structures for FI transactions are very diverse. Reporting 

and management structures required by DFC must be 

responsive to the specific structure of each FI including the 

risks posed by the underlying investment thesis of the FI. 

Details on how different types of FI structures present and 

need to be assessed are captured in internal procedures. 

DFC added some additional text in 8(b)(2) and 8(c)(3) to 

clarify the expectations and approach. 

162 TNC 8.0.2.

The nature of FI Transactions means that FIs assume 

partial or fully delegated responsibility for environmental 

and social assessment, risk management and monitoring 

as well as overall portfolio management

This needs to be fleshed out more. The project lead should be responsible for 

development of a framework (ESMF) and the FI should create safeguards systems 

(ESMS) based on the framework for project-level assessment and due diligence 

guided by the overarching framework. FIs Y

There is a wide variety of FIs and they come to DFC in 

various stages of their strategy. DFC needs to maintain 

flexibility to address cases as most appropriate to their 

specific risk profile and status.
163 TNC 8.2.2.

DFC will review and assess: (1) the FI’s existing 

environmental and social policies and procedures and its 

capacity to implement them; (2) available environmental 

and social due diligence or monitoring reports that may 

illustrate the FI’s prior environmental and social 

performance; (3) environmental and social risks and 

impacts associated with the FI’s existing portfolio and 

expected future Subprojects; and (4) measures necessary 

to strengthen the FI’s existing Environmental and Social 

Management System (ESMS).

In some cases, capacity will be just as important as prior experience. I would 

prioritize an assessment of capacity to implement requirements of the ESMF or 

other due diligence products. 

What about assessment of human rights, labor, gender, etc. background and 

competencies?

FIs Y Comment accepted.

164 TNC 8.3.1.

FI-A and FI-B Transactions are required to establish and 

maintain an ESMS that meets the requirements of 

Performance Standard 1. The level of detail and 

complexity of the ESMS should be commensurate with 

This is typically guided by an ESMF that sets out the basic requirements for the 

project-level ESMS. FIs N This will be detailed in our operating procedures.

165 TNC 8.4.2.

FIs are encouraged to list on their website the link to any 

publicly disclosed ESIA reports for Category A 

Subprojects. 

I would encourage the DFC to make a determination whether they want the 

managing entity or FI responsible for overall management of the project-level 

grievance. You should articulate a flow of grievance reporting (as well as reporting 

on all safeguards) through the managing entity and articulate what you would like 

regarding that. FIs N

There is a wide variety of FIs and they come to DFC in 

various stages of their strategy. DFC needs to maintain 

flexibility to address cases as most appropriate to their 

specific risk profile and status.

166 CSO Group 1.0.

This ESPP also includes guidance for what DFC Clients 

need to prepare, submit, and implement . 

Tracked Changes: This ESPP also includes guidance for what DFC Clients and 

owners of subprojects need to prepare, submit, and implement . Fis (subproject) N Defintion of DFC clients includes Funds' subprojects.

167 CSO Group 2.4.2.2. 

All other Projects involving timber extraction from 

Natural Forests , including all boreal, temperate, and 

plantation Forests must be certified by an independent 

non-governmental organization. The purpose of 

certification is to demonstrate that timber extraction 

activities are managed sustainably. Certification must be 

maintained throughout the term of DFC support. The 

cost of this certification is the responsibility of the Client. 

Certifiers must be accredited by an international 

accreditation body that can hold the certifier 

accountable to a common set of environmental and 

social principles and procedural protocols, including 

periodic review and re-accreditation

Tracked Changes: All other Projects involving timber extraction from Natural 

Forests , including all boreal, temperate, and plantation Forests must be certified 

by an independent non-governmental organization. The purpose of certification is 

to demonstrate that timber extraction activities are managed sustainably and 

should include traceability of wood to the point of harvest. Certification must be 

maintained throughout the term of DFC support. The cost of this certification is the 

responsibility of the Client. Certifiers must be accredited by an international 

accreditation body that can hold the certifier accountable to a common set of 

environmental and social principles and procedural protocols, including periodic 

review and re-accreditation Forests Y

The point about traceability is covered sufficiently in IFC 

Performance Standard 6.

168 CSO Group A Appendix A Categorical Prohibitions

Tracked Changes: [Added text] Leasing or financing of logging equipment, unless an 

environmental and social impact assessment indicates that; (i) all timber harvesting 

operations involved will be conducted in an environmentally sound manner which 

minimizes forest degradation and destruction; and (ii) the timber harvesting 

operations will produce positive economic benefits (i.e. net positive after taking 

into account loss of natural capital) and sustainable forest management systems. Forests N

DFC is aware of the environmental risks posed by this 

sector and considers these issues through the application 

of this ESPP, which includs avoidance or appropriate 

mitigation. 

169 CSO Group C

Critical Forest Areas - A type of Natural Forest that 

qualifies as Critical Natural Habitat. Critical Forest Areas 

include primary Forests and old growth Forests that 

may serve as critical carbon sinks.

Tracked Changes: Critical Forest Areas - A type of Natural Forest that qualifies as 

Critical Natural Habitat. Critical Forest Areas include primary Forests and old 

growth Forests and vulnerable secondary forests, that may serve as critical 

carbon sinks. Forests Y

The definitions in Appendix C have been revised to reflect 

current best practice related to protection of biodiversity.

170 CSO Group C

Critical Natural Habitats - (1) Existing internationally 

recognized protected areas, areas initially recognized as 

protected by traditional local communities (e.g., sacred 

groves), and sites that maintain conditions vital to the 

viability of protected areas; and (2) sites identified on 

supplementary lists by authoritative sources identified by 

DFC. Such sites may include areas recognized by 

traditional local communities(e.g., sacred groves), areas 

with known high suitability for biodiversity conservation 

and sites that are critical for vulnerable, migratory or 

endangered species. Listings are based on systematic 

evaluations of such factors as species richness, the 

degree of endemism, rarity, and vulnerability of 

component species, representativeness and the integrity 

of ecosystem processes.

Tracked Changes: Critical Natural Habitats - (1) Existing internationally recognized 

protected areas, areas initially recognized as protected by traditional local 

communities, forest-dependent communities and Iindigenous peoples (e.g., sacred 

groves), and sites that maintain conditions vital to the viability of protected areas; 

and (2) sites identified on supplementary lists by authoritative sources identified by 

DFC. Such sites may include areas recognized by traditional local communities, 

forest-dependent communities and Iindigenous peoples (e.g., sacred groves), areas 

with known high suitability for biodiversity conservation and sites that are critical 

for vulnerable, migratory or endangered species. Listings are based on systematic 

evaluations of such factors as species richness, the degree of endemism, rarity, and 

vulnerability of component species, representativeness and the integrity of 

ecosystem processes. Forests Y

The definitions in Appendix C have been revised to reflect 

current best practice for the protection of biodiversity.
171 CSO Group C

Natural Forests - Forest lands and associated waterways 

where the ecosystem’s biological communities are 

formed largely by native plant and animal species and 

where human activity has not essentially modified the 

area’s primary ecological functions.

Tracked Changes: Natural Forests - A primary forest is a natural forest that is the 

result of biological and evolutionary processes and that has not been degraded by 

significant industrial, human driven activities. A key characteristic of primary, 

natural forests is that mature trees dominate the canopy and contains most or all 

of its native plant and animal species. Primary, natural forests include all 

successional age classes (young to old-growth) having no industrial human 

activities, including primary forests regenerating after wildfire. Primary, natural 

forests covers a range of related terms including “old growth forest”, “ancient 

forest”, “primeval forest”, “mature forests”, and “intact forest landscapes.” Even if 

a forest has been previously disturbed or logged, if the forest still predominantly 

functions and retains the key characteristics of a primary forest at its climax, it 

should still be considered a primary, intact, natural forest and be protected.

Vulnerable, secondary forests, which are sometimes termed as “degraded”, 

“regrowth,” “young,” “regenerating,” or “recovering” forests, are forests which are 

regenerating largely through natural processes after significant human and/or 

natural disturbance of the original forest vegetation at a single point in time or 

over an extended period. In protecting the ability of secondary forests to recover 

and regrow, secondary forests should be considered as vulnerable when at risk of 

further degradation or destruction by planned or future harmful activities. Forests Y

The definitions in Appendix C have been revised to reflect 

current best practice for the prtection of biodiversity.

172 TNC 2.4.2.1.

DFC will not support Projects that directly or indirectly 

involve the extraction of timber from or the conversion 

or degradation of Critical Forest Areas or Critical Natural 

Habitats (See Appendix A ). 

See comment in A. It is important to clarify what exactly is meant by these areas. I 

would suggest not just to focus on critical areas but also natural habitats and areas 

of high biodiversity value Forests Y

Edits have been made to the definitions in Appendix C to 

reflect current best practice for protection of biodiversity.

173 TNC 2.4.2.2.

All other Projects involving timber extraction from 

Natural Forests , including all boreal, temperate, and 

plantation Forests must be certified by an independent 

non-governmental organization. The purpose of 

certification is to demonstrate that timber extraction 

activities are managed sustainably. Certification must be 

maintained throughout the term of DFC support. The 

cost of this certification is the responsibility of the Client. 

Certifiers must be accredited by an international 

accreditation body that can hold the certifier 

accountable to a common set of environmental and 

social principles and procedural protocols, including 

periodic review and re-accreditation

This is not a term from common forestry or forest management practices and 

would encourage different vocabulary? It sounds like you are talking about primary 

forests and certain naturally growing secondary forests resembling a primary 

forest? The way this is written is very open ended and leaves too much for 

interpretation. The standard should be pinned to well defined sector concepts. Forests Y

Edits have been made to the definitions in Appendix C to 

reflect current best practice for the protection of 

biodiversity.

174 TNC 2.4.2.2.

All other Projects involving timber extraction from 

Natural Forests , including all boreal, temperate, and 

plantation Forests must be certified by an independent 

non-governmental organization. The purpose of 

certification is to demonstrate that timber extraction 

activities are managed sustainably. Certification must be 

maintained throughout the term of DFC support. The 

cost of this certification is the responsibility of the Client. 

Certifiers must be accredited by an international 

accreditation body that can hold the certifier 

accountable to a common set of environmental and 

social principles and procedural protocols, including 

periodic review and re-accreditation

Certified for what? Sustainability? How do local/national laws and practices factor 

in? Why specifically an NGO certifying? Would a robust, government sanctioned 

environmental review suffice? This is vague and could be duplicative. Forests N

DFC evaluates certification schemes to make sure 

evaluation criteria address both environmental and social 

sustainability. In some countries local law does not address 

all elements critical for sustainability.

175 TNC 2.4.2.2.

Certifiers must be accredited by an international 

accreditation body that can hold the certifier 

accountable to a common set of environmental and 

social principles and procedural protocols, including 

periodic review and re-accreditation (11) It would be good to have a list of approved certifiers. Forests N

We appreciate the comment, but cannot include a list of 

certifiers in this document as that list would need to be 

updated regularly.
176 IRMA 2.1.2.

Performance Standard 1 (Assessment and Management 

of Environmental and Social Risks and Impacts) and 

Performance Standard 2 (Labor and Working Conditions) 

are applicable to all Projects and Clients regardless of 

their environmental and social risks and impacts. 

Applicability of the other Performance Standards and 

any other sector-specific requirements is dependent on 

the nature of the Project and its environmental and 

social risks and impacts 

Where a Project has potential impacts on Indigenous Peoples, in accordance with 

the provisions of IFC Performance Standard 7, the Project should be required to 

demonstrate that it has obtained the free, prior and informed consent (FPIC) of 

potentially affected Indigenous Peoples. The Project should also obtain FPIC from 

Indigenous Peoples for proposed changes to activities that may result in new or 

increased impacts on Indigenous Peoples’ rights or interests. FPIC N 

This is implied through the application of the Performance 

Standards. Where PS 7 is triggered, there are then specific 

analysis and requirements with respect to FPIC.

177 TNC 4.0.6.

For those projects with the potential for significant 

adverse impacts on Project Affected People, DFC will 

confirm prior to project approval that there is Broad 

Community Support for the Project. DFC may rely on 

support from independent experts to assess Meaningful 

Consultation and Broad Community Support. This should include FPIC where applicable. How is this determination made? FPIC Y Included the application of FPIC where applicable.

178 TNC

4.1.4. 

(4.1.8.)

Clients are required to undertake, and provide 

demonstration of, Meaningful Consultation with Project 

Affected People and meet the requirements related to 

Stakeholder engagement of Performance Standard 1 . What about the applicability of FPIC? FPIC Y Included the application of FPIC where applicable.

179 CSO Group 3.1.3.

Projects in locations, industries, or sectors that are laborintensive; involve hazardous work with a documented 

history of Labor Rights issues; or rely on large pools of 

contracted, migrant, casual or unskilled Workers, 

including within the Supply Chain. Projects in locations, 

industries or sectors with elevated risks of gender 

discrimination, exclusion or GBVH may also be higher 

risk. Examples of such Projects are those that involve 

significant construction activities, manual harvesting of 

agricultural commodities, Extractive Industries, and are 

in industries in which Workers face difficulty in exercising 

trade union rights, or have a higher likelihood of using 

forced (including trafficked) or child labor, including in 

their supply chains.

Tracked Chagnes: Projects in locations, industries, or sectors that are laborintensive; involve hazardous work with a documented history of Labor Rights 

issues; or rely on large pools of contracted, migrant, casual or unskilled Workers, 

including within the Supply Chain. Projects in locations, industries or sectors with 

elevated risks of gender discrimination, violence against women (VAW), GBV, 

and SEA/H exclusion or GBVH may also be higher risk. Examples of such Projects 

are those that involve significant construction activities, manual harvesting of 

agricultural commodities, Extractive Industries, and are in industries in which 

Workers face difficulty in exercising trade union rights , or have a higher likelihood 

of using forced (including trafficked) or child labor, including in their supply chains. Gender N

The proposed additional terms are included within the 

umbrella definition of GBVH. Sexual exploitation and abuse 

has been added to the definition of GBVH. 

180 CSO Group B

Tracked Changes: [Added text] Projects that will require large labor influx and / or 

pose significant risks or exacerbate existing risks of GBV and SEA/H, including child 

SEA/H. Gender N

Categorial Prohibition 38 already prohibits projects that 

require the utilization or reliance to a large degree on large 

pools of sub-contracted, unskilled, temporary or migrant 

labor. For other projects not categorically prohibited but 

which involve an influx of labor, approriate GBVH risk 

assessment and prevention and response measures will be 

required. 

181 CSO Group B

Project activities that entail significant, adverse 

transboundary and/or cumulative environmental, social, 

or human rights impacts. 

Tracked Changes: Project activities that entail significant, adverse transboundary 

and/or cumulative environmental, social, or human rights impacts, 

, including any 

sort of GBV, violence against women, and / or violence against children. Gender N This is captured under "social or human rights impacts." 

182 CSO Group B

Projects that entail direct, adverse impacts to indigenous 

peoples and areas of importance for indigenous peoples. 

Tracked Changes: Projects that entail direct, adverse impacts to marginalized and 

excluded populations including indigenous peoples, and women, girls, and gender 

diverse individuals, and areas of importance for indigenous peoples. Gender N 

This Categorical Prohibition is intended to be specific to 

Indigenous Peoples. 
183 CSO Group C

Gender-Based Violence and Harassment (GBVH) – 

Violence and harassment directed at persons because of 

their sex or gender, or affecting persons of a particular 

sex or gender disproportionately, and includes sexual 

harassment. 

Tracked Changes: [Added/Substituted text] Gender-Based Violence and 

Harassment (GBVH) – Refers to harmful acts directed at an individual or a group of 

individuals based on their gender. It is rooted in gender inequality, the abuse of 

power and harmful norms. The term is primarily used to underscore the fact that 

structural, gender-based power differentials place women and girls at risk for 

multiple forms of violence. While women and girls suffer disproportionately from 

GBV, men and boys can also be targeted. Gender N

We see value in harmonizing terms with best practice 

guidance, which this defintion reflects. How this is 

assessed, mitigated, and monitored will vary greatly 

between projects and therefore is best suited to internal 

procedures. 

184 CSO Group C

Tracked Changes: [Added text] Sexual Exploitation, Abuse, and Harassment (SEA/H) 

- Comprises three types of sexual violence: 

Sexual exploitation: any actual or attempted abuse of a position of vulnerability, 

differential power or trust, for sexual purposes, including, but not limited to, 

profiting monetarily, socially or politically from the sexual exploitation of 

another.46

Sexual abuse: actual or threatened physical intrusion of a sexual nature, whether 

by force or under unequal or coercive conditions. Sexual abuse is a broad term, 

which includes a number of acts including rape and sexual assault, among 

others.47

Sexual harassment: any form of unwanted verbal, non-verbal, or physical conduct 

of a sexual nature with the purpose or effect of violating the dignity of a person, in 

particular when creating an intimidating, hostile, degrading, humiliating, or 

offensive environment. This may include unwelcome sexual advances, or requests 

for sexual favors, and may take place through online activity or mobile 

communications as well as in person.

(46) https://hr.un.org/materials/un-glossary-sexual-exploitation-and-abuse-english Gender Y

See updated definition of Gender-Based Violence and 

Harassment to include sexual exploitation and abuse. 

185 IRMA 1.2.1.

Identify disproportionate, gender-specific impacts of the 

Project and take steps to mitigate the risks of exclusion, 

discrimination, and harm, including the risk of GenderBased Violence and Harassment (GBVH) 

In addition to identifying impacts it would be helpful to include assessment of 

opportunities to promote gender equality and gender protections, create and 

monitor action plans, and regularly report on implementation of plans. Gender Y Comment accepted.
186 TNC 1. Intro

DFC also provides financing for small businesses and 

women entrepreneurs in order to create jobs in 

emerging markets. 

Maybe a commitment to gender responsive safeguards to ensure benefits to 

women, girls, and marginalized gender groups? Gender N

Gender responsive safeguards is another way of stating the 

language already included in Section 1, which reflects DFC's 

committment to identifying disproportionate genderspecific impacts and taking steps to mitigate the risk of 

exclusion, discrimination and harm. 

187 TNC 1.2.1.

Identify disproportionate, gender-specific impacts of the 

Project and take steps to mitigate the risks of exclusion, 

discrimination, and harm, including the risk of GenderBased Violence and Harassment (GBVH) 

A gender mainstreaming process should include project activities to ensure 

benefits to women and girls. I would encourage a note on benefits, rather than just 

avoidance of harm and exclusion here. Gender Y Comment accepted.

188 TNC 2.1.1.

In addition to compliance with all applicable laws, at a 

minimum, DFC requires that all Projects meet the 

Performance Standards, applicable EHS Guidelines, and 

Labor Rights. These are collectively referred to as DFC’s 

Applicable Standards. The relevant provisions of this 

ESPP together with the Applicable Standards are referred 

to as DFC’s Environmental and Social Requirements. 

Specifically, add gender mainstreaming here. It is only implicitly considered part of 

the performance standards. Also, do you not commit to the UNGP’s or other 

human rights standards? Gender N

The concept of gender mainstreaming would not properly 

fit with the construct of applicable standards, which 

generally refers to laws and related norms. The standards 

referenced in this comment are among those that are 

considered during assessment of proposed projects, where 

those standards may be applicable. 

189 TNC B

39.	Projects that involve a high degree of Contextual 

Risk that have the potential to amplify the significance 

of the project’s environmental and social impacts. 

I would add human rights and gender risks or risk of creating/exacerbating political 

or social conflicts specifically. Gender N 

Each of these is captured in the definition of Contextual 

Risk. 

190 TNC 2.4.3.4.

Projects involving the manufacturing of pharmaceuticals 

or medical equipment are reviewed closely. Prior to 

supporting such Projects, evidence that the safety and 

effectiveness of such products are certified by the U.S. 

Food and Drug Administration, or an equivalent foreign 

public health authority must be provided to DFC. DFC 

also requires evidence that the products have not been 

withdrawn from the U.S. market for reasons of safety or 

lack of effectiveness. 

I would encourage articulating consideration for gender-related impacts specifically 

if DFC is funding reproductive health care or rights-related work. Gender N 

DFC will consider gender-related impacts as requred in 

Chapter 1(c).

191 CSO Group 7.0.7.

In addition to other matters, all Projects must satisfy 

DFC’s “know your customer” due diligence process. 

DFC’s “know your customer” due diligence reviews 

Client’s ownership and corporate governance structures 

and compliance with anti-money laundering sanctions 

and prohibited payments, as well as the Client’s 

organizational capacity to continue to comply with such 

laws. DFC Agreements include contractual provisions to 

ensure acceptable ownership structures, corporate 

governance, and continued compliance with such laws. 

Tracked Changes: In addition to other matters, all Projects must satisfy DFC’s 

“know your customer” due diligence process. DFC’s “know your customer” due 

diligence reviews Client’s ownership and corporate governance structures, 

including verifiable beneficial ownership information, and compliance with antimoney laundering sanctions and prohibited payments, as well as the Client’s 

organizational capacity to continue to comply with such laws. DFC Agreements 

include contractual provisions to ensure acceptable ownership structures, 

corporate governance, environmental and social due diligence, and continued 

compliance with such laws. Governance N

See update to Section 7. A discussion of environmental and 

social legal requirements can be found in Chapter 5. 

192 IRMA 3.2. 3.2. Corporate Investments

The DFC ESPP could amplify coverage of business integrity, revenue transparency, 

anti-bribery, and anti-corruption, including in this section. See mining-sector 

specific guidance in the EITI Standard, IRMA Standard Chapter 1.5, and in 

recommendations from NRGI, OECD, and EITI. Governance N

We appreciate the comment. DFC does not mention each 

standard it consults and adopts in the ESPP but adheres 

generally to international best practice when reviewing 

projects. 

193 IRMA 8.1. 8.1.	FI Screening and Categorization 

As noted above, this section could also include greater coverage of business 

integrity, revenue transparency, anti-bribery, and anti-corruption measures. See 

mining-sector specific guidance in the EITI Standard, IRMA Standard Chapter 1.5, 

and recommendations from NRGI, OECD, and EITI. Governance N

We appreciate the comment. For the purposes of this 

policy, which addresses environmental and social issues, 

the issues are adequately covered. 

194 DOL/ILAB B

Installations for the extraction of asbestos and for the 

processing and transformation of asbestos and products 

containing asbestos; for asbestos-cement products with 

an annual production of more than 20,000 tons of 

finished product; for friction material with an annual 

production of more than 50 tons of finished product; and 

for other asbestos utilization of more than 200 tons per 

year. 

If extraction means mining - wouldn't this violate the exclusion of projects 

producing unbonded asbestos fibers? Health and safety Y

Category Prohibition #11 has been updated to reflect 

current international prohibition. 
195 DOL/ILAB B

Installations for the extraction of asbestos and for the 

processing and transformation of asbestos and products 

containing asbestos; for asbestos-cement products with 

an annual production of more than 20,000 tons of 

finished product; for friction material with an annual 

production of more than 50 tons of finished product; and 

for other asbestos utilization of more than 200 tons per 

year. 

Can this reference the ceiling of 20% bonded asbestos fiber content in the IFC 

exclusion list?

Can add 'including the use of asbestos-containing materials'. While the threshold of 

a categorical ban is set at up to 20% of bonded fibers, use of new asbestoscontaining material such as cement is still a risk as asbestos is unsafe in any 

amount. Health and safety Y

Category Prohibition #11 has been updated to reflect 

current international prohibition. 

196 GLJ-ILRF 2.4.5.

DFC applies screening and environmental and social 

assessment criteria consistent with international best 

practice for Projects utilizing a Supply Chain at risk for 

the use of forced or child labor, significant health and 

safety issues or significant conversion of Critical Forest 

Areas or Critical Natural Habitat. Clients must provide 

relevant information on suppliers throughout the tiers of 

the Project's Supply Chain in sectors considered to be at 

high risk for these issues.

We applaud DFC’s attention to forced labor, child labor, and occupational safety 

and health risks in the supply chain, and we firmly concur with DFC’s recognition 

that, where these risks are posed, supplemental screening is necessary (§ 2.4.5). 

Emphasis on workplace safety and health are especially critical amidst the current 

COVID-19 crisis and following the International Labor Organization’s recognition of 

the right to a safe and healthy workplace as fundamental. We encourage DFC to 

make use of the global labor movement’s networks in assessing these risks and 

developing its responses.

Health and Safety, 

Labor NA Noted, thank you.

197 GLJ-ILRF 2.4.

DFC is responsible for identification of supplemental 

standards when additional preventative or protective 

measures are necessary to adequately mitigate specific 

project-related environmental and social risks and 

impacts. 

Supplemental standards may include (1) relevant and 

applicable U.S. federal standards; (2) standards issued 

by other international organizations relating to public 

health, safety, and the environment such as those from 

the World Health Organization, the International 

Maritime Organization, the Food and Agriculture 

Organization, or the International Civil Aviation 

Organization; and (3) standards of best practice 

developed by governments, other development finance 

institutions, industry associations, or non-governmental 

organizations.

We commend DFC’s inclusion of sector-specific standards in the ESPP (§2.4). We 

have found a sectoral perspective essential in implementing safeguards and in 

developing and experimenting with new implementation policies. We encourage 

the DFC to experiment further with sector-specific policy interventions and to 

consider adding the International Labor Organization to list of potential sources of 

supplemental standards. We would also note that sector-focused unions and global 

union federations can be important sources of information and insight in 

developing these standards.

Health and Safety, 

Labor Y We have incorporated ILO as a supplemental standard.

198 DOL/ILAB 6.1.2.

All DFC Agreements require timely notification to DFC of 

any incident occurring at the Project site that results in 

the loss of life or that has a material, adverse impact on 

or poses material risk to the environment, Workers, or 

Project Affected People. 

We encourage DFC to setup the internal data collection and external disclosure 

procedures needed to follow EBRD in disclosing an annual statistic on worker 

fatalities per 1,000 active projects (or a similar metric on OHS).

Health and Safety, 

Reporting Y

This is best suited for internal procedures and guidance. 

DFC is setting up systems to more systemically track these 

incidents and corresponding actions.

199 CSO Group C

Those rights expressed in the International Bill of Human 

Rights and the principles concerning fundamental rights 

set out in the International Labor Organization’s 

Declaration on Fundamental Principles and Rights at 

Work.

Tracked Changes: Those rights expressed in international and regional human 

rights instruments, including the International Bill of Human Rights and the 

principles concerning fundamental rights set out in the International Labor 

Organization’s Declaration on Fundamental Principles and Rights at Work. Human Rights N

The current defintions include appropriate coverage of this 

issue based on USG positions.

200 TNC 1.2.1.

Undertake Projects in a host country that is taking steps 

to adopt and implement laws that extend Internationally 

Recognized Worker Rights 

Why specifically worker rights? What about gender, equity, IPLC, human rights, and 

working conditions? I would suggested broadening focus. Human Rights N 

Country-level limitations with respect to internationally 

recognzied worker rights comes directly from the Build Act 

and that statutory requirement is what is reflected here. 

For the other issues noted we include committments in this 

ESPP, via the IFC Performance Standards, and through 

interagency consultation with State Department.
201 CSO Group

Section 

4.1.

Tracked Changes: For high-risk projects and any projects involving the extraction of 

minerals including those used in renewable energy infrastructures, to conduct 

human rights impact assessments as part of their ESIAs, integrate these findings 

into their Environmental and Social Management system (ESMSs), and to disclose 

these systems and assessments publicly. 

conduct human rights impact assessments as part of their ESIAs, integrate these 

findings into their Environmental and Social Management system (ESMSs), and to 

disclose these systems and assessments publicly 

Refuse to conduct business with any entity whose key personnel or beneficial 

owners have conflicts of interest that cannot be adequately managed or with those 

that have a record of corruption where there is no evidence of mitigation of 

corruption risks. Companies should document this commitment in a publicly 

available policy and report on their implementation of this policy 

Adopt, disclose and enforce strong “revolving door,” lobbying and political donation 

rules 

Adopt responsible tax principles and implement responsible tax practices, including 

minimizing use of subsidiaries in tax havens, avoiding project-specific tax 

incentives, committing to cooperative engagement with tax authorities, and 

publishing tax transparency reports 

Human Rights, 

Governance N

DFC agrees that the highlighted issues may pose significant 

risks in projects and are important considerations in our 

credit and due diligence analysis, and are issues that DFC 

can evaluate and mitigate on a project-by-project basis. 

The IFC Performance Standards and current DFC due 

diligence practice acknowledge different severity of risks 

and tailoring of assessments to meet those risks.

202 CARE 1.4.

The OOA, which functions as DFC’s independent 

accountability mechanism, gives local communities, 

which may be materially, directly and adversely affected 

by DFC-supported Projects, a means through which 

complaints may be raised.

neither the BUILD Act nor the Board Resolution for the IAM says that communities 

must materially or directly impacted. "Material" harm is subjective and the 

mechanism must be able to also receive complaints about indirect impacts. IAM Y

We have removed the materiality language and added 

clarity on the inclusion of Sub-Projects.

203 CSO Group 1.4.

DFC has established an Office of Accountability (OOA) to 

assess and review complaints about DFC-supported 

Projects.

Tracked Changes: DFC has established an Office of Accountability (OOA) to assess 

and review complaints about DFC-supported Projects and Sub-projects. IAM Y Added the clarity on the inclusion of Sub-Projects

204 CSO Group 1.4.

The OOA, which functions as DFC’s independent 

accountability mechanism, gives local communities, 

which may be materially, directly and adversely affected 

by DFC-supported Projects, a means through which 

complaints may be raised.

Tracked Changes: The OOA, which functions as DFC’s independent accountability 

mechanism, gives local communities, which may be materially, directly and 

adversely affected by DFC-supported Projects and Sub-projects, a means through 

which complaints may be raised. IAM Y

We have removed the materiality language and added 

clarity on the inclusion of Sub-Projects.

205 CSO Group 1.4.1.

OOA requires all Clients and FI sub-projects to disclose 

DFC’s potential participation in a proposed investment 

and the existence of DFC’s OOA to Project Affected 

People in a culturally appropriate, gender sensitive, and 

accessible manner. 

Tracked Changes: DFC and OOA requires all Clients and FI sub-projects to disclose 

DFC’s potential participation in a proposed investment and the existence of DFC’s 

OOA to Project Affected People in a culturally appropriate, gender sensitive, and 

accessible manner. DFC will confirm that this disclosure has taken place and will 

post this confirmation online. IAM N

This is beyond the scope of the ESPP. The IAM is an 

independent mechanism and its procedures are 

established by it and the Board. 

206 CSO Group 1.4.1.

Further information on the OOA and how to request its 

services can be found at DFC’s website.

Tracked Changes: Further information on the OOA and how to request its services 

can be found at DFC’s website. in an accessible way. The existence of the OOA and 

how to contact it will also be included in appropriate project documents. IAM N

This is beyond the scope of the ESPP. The IAM is an 

independent mechanism and its procedures are 

established by it and the Board. 

207 CSO Group

Cover 

letter

Additionally, DFC must finalize the procedures of its Office of Accountability so that 

project-affected communities can raise concerns about the implementation of the 

ESPP and the environmental and human rights impacts of DFC's projects. IAM N 

This is beyond the scope of the ESPP. The IAM is an 

independent mechanism and its procedures are 

established by it and the Board. 

208 TNC 1.2.3.

DFC makes information concerning its activities available 

on DFC’s website to enable members of the interested 

public an opportunity to better understand DFC’s 

business activities. 

Public disclosure of safeguards plans, grievance availability, and filed grievances on 

the DFC website should be committed to explicitly, like other banks and agencies 

such as the GCF do. This commitment is overly vague (despite knowing that the 

DFC publishes a lot – why not just make it explicit in the policy?). IAM N

The douments that DFC intends to include for disclosure 

can be found in Chapter 5.

209 TNC 1.4.

OOA’s mandate is to deliver problem-solving and 

compliance review services in a manner that is fair, 

objective and transparent, thereby enhancing DFC's 

mission effectiveness. 

I am curious about the strategy for maintaining independence and couldn’t find 

that articulated on the website. I would also add each activity requires a tailored 

approach to grievance with input from communities on accessibility and a specific 

requirement that partner entities disclose grievances on their websites like the GCF 

does (which is aligned with an IFC process). IAM N 

This is beyond the scope of the ESPP. The IAM is an 

independent mechanism and its procedures are 

established by it and the Board. 
210 AFL-CIO 3.1.3.

Projects in locations, industries, or sectors that are laborintensive; involve hazardous work with a documented 

history of Labor Rights issues; or rely on large pools of 

contracted, migrant, casual or unskilled Workers, 

including within the Supply Chain. Projects in locations, 

industries or sectors with elevated risks of gender 

discrimination, exclusion or GBVH may also be higher 

risk. Examples of such Projects are those that involve 

significant construction activities, manual harvesting of 

agricultural commodities, Extractive Industries, and are 

in industries in which Workers face difficulty in exercising 

trade union rights, or have a higher likelihood of using 

forced (including trafficked) or child labor, including in 

their supply chains.

It is unclear from the overall text and the definition of “area of influence” the 

extent to which a project is responsible for labor rights harms in their supply 

chains, as opposed to direct employees and onsite contractors and subcontractors. Labor N

IFC Performance Standards 1 and 2 address the specific 

responsibilities for clients.

211 AFL-CIO 3.1.3.

Projects in locations, industries, or sectors that are laborintensive; involve hazardous work with a documented 

history of Labor Rights issues; or rely on large pools of 

contracted, migrant, casual or unskilled Workers, 

including within the Supply Chain. Projects in locations, 

industries or sectors with elevated risks of gender 

discrimination, exclusion or GBVH may also be higher 

risk. Examples of such Projects are those that involve 

significant construction activities, manual harvesting of 

agricultural commodities, Extractive Industries, and are 

in industries in which Workers face difficulty in exercising 

trade union rights, or have a higher likelihood of using 

forced (including trafficked) or child labor, including in 

their supply chains.

I would note that it is in fact most industries where workers face difficulty in 

exercising trade union rights. One may consider that, unless there is a pre-exiting 

union associated with the project, and that union is free/democratic, that the risk 

level would automatically be elevated. Labor N

Noted on the point, no change needed here as that 

concept is covered for the purpsoes of this policy 

statement.

212 AFL-CIO 4.0.1.

After screening and categorization, and prior to DFC 

approval, DFC undertakes a review of the Project and the 

Client’s organizational capacity to determine whether 

the Client meets or can meet the requirements of the 

Applicable Standards. 

DFC's independent review should consider past or current workforce disputes, as 

well as health and safety records. Independent (and confidential) worker 

interviews should be part of this assessment. Labor Y Please see addition of past performance in Section 4.

213 AFL-CIO 4.1.1.

The Client must demonstrate a sound understanding of 

the Project and have undergone a process to (1) identify 

all factors that define the Project’s Area of Influence;...

As noted above, it is unclear to what extent labor rights violations of suppliers is 

relevant here. Is a project required to do something about serious abuses at a 

supplier of necessary inputs, even if they are not a contractor or subcontractor 

onsite on the project. Labor N

The client's responsibility with regard to its supply chain is 

addressed in PS1 and PS2.

214 AFL-CIO 5.2.2.

For Category A Projects, Clients are required to submit to 

DFC an ESIA and/or Baseline Audit and Stakeholder 

engagement plan for public disclosure on the DFC 

website (See Paragraph 5.1.3.). 

Clients should be required to provide detailed maps of their workforce and supply 

chains, which are important both for project evaluation as well as for monitoring 

and can provide vital information about the resilience (and economic impacts) of 

their operations. Labor N

If there are significant primary supply chain risks in a 

Category A project, this would be considered as part of the 

disclosure package.

215 AFL-CIO 6.0.3.

Selection for monitoring site visits is determined through 

a risk-based prioritization process. The scope, timing, and 

periodicity of the visits are commensurate with the 

significance and severity of environmental and social 

risks and impacts of a Project, Client, or Financial 

Intermediary. These visits are intended to check for onthe-ground compliance, identify areas where the Project 

is implementing good practices and/or potential areas 

for improvement, and enable an opportunity for 

Workers, Project Affected People, and other 

Stakeholders to interact and provide feedback on the 

Project to DFC. 

It is crucial that these site visits allow for confidential conversations with workers 

and other Project Affected People without the knowledge of the client/ employer, 

as well as local labor officials and ILO representatives. labor N

While the worker interviews are confidential and away 

from management, an unannounced visit is not feasible for 

DFC.
216 AFL-CIO 7.0.4.

"All DFC Agreements include contractual language that 

addresses Internationally Recognized Worker Rights in 

substantially the following form (as outlined in Section 

1451(d)(2) of the Build Act of 2018):

The person receiving support agrees not to take actions 

to prevent employees of the foreign enterprise from 

lawfully exercising their right of association and their 

right to organize and bargain collectively. The person 

further agrees to observe applicable laws relating to a 

minimum age for employment of children, acceptable 

conditions of work with respect to minimum wages, 

hours of work, and occupational health and safety, and 

not to use forced labor or the worst forms of child labor 

(as defined in section 507 of the Trade Act of 1974 (19 

U.S.C. 2467)). The person is not responsible under this 

paragraph for the actions of a foreign government. 

"

The client should guarantee that employees are able to freely associate, and that 

the employer will collectively bargain in good faith when presented by a demand 

from the union. Labor N

DFC's statuatory requirement from the BUILD Act states 

that "The person receiving support agrees not to take 

actions to prevent employees of the foreign enterprise 

from lawfully exercising their right of association and their 

right to organize and bargain collectively." 

217 AFL-CIO 10.0.

The Corporation shall only support projects under title II 

in countries that are taking steps to adopt and 

implement laws that extend internationally recognized 

worker rights (as defined in section 507 of the Trade Act 

of 1974 (19 U.S.C. 2467 )) to workers in that country, 

including any designated zone in that country.

Do we assume that if GSP will be reauthorized, that the “taking steps” language is 

likely to be maintained? Labor N

DFC is monitoring GSP reauthorization and will review and 

update the ESPP as needed when/if changes occur.

218 AFL-CIO 10.2.1.

In making its determinations as to whether non-GSPeligible countries where DFC programs are being offered 

are taking steps to adopt and implement laws that 

extend Internationally Recognized Worker Rights to 

Workers

What happens here is the GSP standard is changed by legislation to some higher 

bar? Will that be reflected here as well to maintain consistency (since this is about 

countries who are not eligible for GSP)? Perhaps a footnote here noting that GSP is 

not currently in force, and the authorization bills may in fact apply a different 

standard. And such standard would be reflected here if/when it passes? Labor N

DFC is monitoring GSP reauthorization and will review and 

update the ESPP as needed when/if changes occur.

219 AFL-CIO A

Production or activities involving harmful or exploitative 

forms of forced labor or child labor.

Since there is no forced labor which is not harmful or exploitative, perhaps move 

these adjectives in front of child labor (or just refer to Worst Forms) Labor Y Edit accepted.

220 AFL-CIO C

Workers – Individuals who are employed directly by the 

project or under a project contract , and who perform onsite work for a substantial duration of time on a project 

or are material to the core business processes of a 

project. Workers can be temporary or permanent. Does this cover all contracting and subcontracting on a project? Or just the first 

contract? Labor N Yes, if they meet all elements of this definiton.

221 AFL-CIO C

Workers – Individuals who are employed directly by the 

project or under a project contract , and who perform onsite work for a substantial duration of time on a project 

or are material to the core business processes of a 

project. Workers can be temporary or permanent. How is this determination made, and by whom? Labor N This determination is made by DFC subject-matter experts. 

222 AFL-CIO C

Workers – Individuals who are employed directly by the 

project or under a project contract , and who perform onsite work for a substantial duration of time on a project 

or are material to the core business processes of a 

project. Workers can be temporary or permanent. Same as above Labor Y Added as definition.

223 CARE 2.3.1.

The Environmental and Social Requirements apply to all 

Project-related activities including those carried out by 

on-site contractors and sub-contractors of the Project 

that work for a substantial duration of time on the 

Project or are material to the core business processes of 

the Project . Clients are responsible for ensuring that onsite contractors and sub-contractors meet the 

requirements. Requires specificity. Labor N 

This edit would remove important flexibility in determining 

how to assess contractor and subcontractor work.
224 CARE 10.5.

If a country becomes ineligible for DFC support on 

worker rights grounds, the change of status does not 

affect Projects to which DFC made a legally binding 

commitment prior to the date on which the country 

status changed

This should include an updated report and oversight to ensure that projects outline 

and take special considerations to abide by more stringent standards within their 

project and area of responsibility. Labor Y Clarification added.

225 CSO Group 2.3.1.

The Environmental and Social Requirements apply to all 

Project-related activities including those carried out by 

on-site contractors and sub-contractors of the Project 

that work for a substantial duration of time on the 

Project or are material to the core business processes of 

the Project . Clients are responsible for ensuring that onsite contractors and sub-contractors meet the 

requirements.

Tracked Changes: The Environmental and Social Requirements apply to all Projectrelated activities including those carried out by on-site contractors and subcontractors of the Project that work for more than a 90 days substantial duration 

of time on the Project or are material to the core business processes of the Project 

. Clients are responsible for ensuring that on-site contractors and sub-contractors 

meet the requirements. Labor N This edit would limit the application of our standards.

226 CSO Group A

Production or activities involving harmful or exploitative 

forms of forced labor or child labor.

Tracked Changes: Production or activities involving harmful or exploitative forms of 

forced labor or child labor. Labor Y Edit accepted.

227 DOL/ILAB 1.2.1.

Undertake Meaningful Consultation with Project 

Affected People regarding Project activities, including 

engagement with Vulnerable Groups Suggest adding Workers and workers' organizaitons Labor N

Workers and workers' organizations are included in the 

defintion of Project Affected People.

228 DOL/ILAB 2.1.1.

In addition to compliance with all applicable laws, at a 

minimum, DFC requires that all Projects meet the 

Performance Standards, applicable EHS Guidelines, and 

Labor Rights. These are collectively referred to as DFC’s 

Applicable Standards. The relevant provisions of this 

ESPP together with the Applicable Standards are referred 

to as DFC’s Environmental and Social Requirements. 

Given the weaknesses in the Workers' Organizations section of PS 2, which defers 

to national law on freedom of association and collective bargaining, is there room 

in the ESPP to establish a high-road approach to these rights consistent with 

fundamental conventions? Labor N

The BUILD Act prohibits DFC-supported projects from 

taking actions to prevent employees from lawfully 

exercising their right of association and their right to 

organize and bargain collectively. The BUILD Act also 

requires this language be included for each DFC-supported 

project.

229 DOL/ILAB 3.1.3.

Projects in locations, industries, or sectors that are laborintensive; involve hazardous work with a documented 

history of Labor Rights issues; or rely on large pools of 

contracted, migrant, casual or unskilled Workers, 

including within the Supply Chain. Projects in locations, 

industries or sectors with elevated risks of gender 

discrimination, exclusion or GBVH may also be higher 

risk. Examples of such Projects are those that involve 

significant construction activities, manual harvesting of 

agricultural commodities, Extractive Industries, and are 

in industries in which Workers face difficulty in exercising 

trade union rights, or have a higher likelihood of using 

forced (including trafficked) or child labor, including in 

their supply chains.

Welcome this language, while still noting that labor intensivity is not necessarily a 

risk factor unto itself. A project with more workers engaged in non-hazardous work 

(e.g. filling potholes) can be less risky that a project with a few workers in very 

hazardous work (e.g. installing overhead electrical lines for a trolley). Labor N

Noted, and this is considered as an element in the 

assessment. 

230 DOL/ILAB 4.0.7.

During due diligence, DFC consults with the U.S. 

Department of State on how project-specific activities 

interact with country-level human rights concerns. For 

consistency across U.S. Government agencies, DFC relies 

on guidance provided by the U.S. Department of State, 

the lead U.S. agency on Human Rights matters and 

determinations

Recommend adding a version of World Bank ESS 2 Footnote 2, in order to 

consistently engage unions, inspectorates, the ILO, and other key sources of labor 

information during assessment.

ESS 2, FN 2: “In conducting the environmental and social assessment and 

depending on the significance of the potential issues in the project relating to labor 

and working conditions, the views of representative workers’ and employers 

organizations may be sought.”

See also Guidance Note 2: "“GN2.3 As discussed in footnote 2 of ESS2, engaging 

with project workers and their representatives on labor issues, including with 

representatives of workers organizations where they exist, helps inform the 

assessment of labor risks and impacts, by providing useful context and additional 

information. Depending on the project, engagement may also include workers’ 

organizations at a global, national, or sector level; employers’ organizations; and 

labor inspectorates.” Labor N

Project sponsors are responsible for taking into account 

Project Affected People, which includes workers and 

workers' organizations.

231 DOL/ILAB 4.1.4.

Clients are required to undertake, and provide 

demonstration of, Meaningful Consultation with Project 

Affected People and meet the requirements related to 

Stakeholder engagement of Performance Standard 1 . 

This can explicitly include workers and their organizations, to ensure clients build 

trust and relationships that convert to open communication and an enabling 

environment for freedom of association and collective bargaining, rather than the 

mistrust and pressure on workers that too often occurs in practice. Labor N

Workers and workers' organizations are included in the 

defintion of Project Affected People.
232 DOL/ILAB 6.0.2.

The extent and frequency of monitoring will be 

commensurate with the environmental and social risks 

associated with the Project. DFC undertakes monitoring 

through review of environmental and social reports 

(client self-reporting and/or third-party reports), 

communication with Clients regarding the Project’s 

environmental and social performance and/or site visits 

to Projects by DFC’s environmental and social specialists 

and/or independent experts. Suggest adding workers' organizations. Labor N

Workers' organizations are included in the defintion of 

Project Affected People, which are referenced to this point 

in Section 6(a)(2).

233 DOL/ILAB 6.0.3.

Selection for monitoring site visits is determined through 

a risk-based prioritization process. The scope, timing, and 

periodicity of the visits are commensurate with the 

significance and severity of environmental and social 

risks and impacts of a Project, Client, or Financial 

Intermediary. These visits are intended to check for onthe-ground compliance, identify areas where the Project 

is implementing good practices and/or potential areas 

for improvement, and enable an opportunity for 

Workers, Project Affected People, and other 

Stakeholders to interact and provide feedback on the 

Project to DFC. 

This is welcome, but does not have to be limited to site visits and can also include 

remote consultation with workers and their organizations. Labor N Agreed, thank you.

234 DOL/ILAB 10.1.4.

Upon completion of a country review, a country’s 

eligibility status may remain unchanged, or be 

withdrawn, suspended, or limited. Modifications to a 

country’s GSP eligibility are implemented by Executive 

Order or Presidential Proclamation and are published in 

the Federal Register. Based on the country review, 

should the President determine that a country is failing 

to meet the statutory “taking steps” worker rights 

standard , then the country will become ineligible for 

DFC programs.

Suggest adding "...standard and withdraws, suspends, or limits a country's 

eligibility," Labor N

The Presidential Determination on "taking steps" is the 

relevant factor, not the resulting punitive action by USTR.

235 DOL/ILAB 10.2.1.

In making its determinations as to whether non-GSPeligible countries where DFC programs are being offered 

are taking steps to adopt and implement laws that 

extend Internationally Recognized Worker Rights to 

Workers, DFC utilizes a similar petition and review 

process. Petitions can be submitted to DFC at its public 

hearings to reexamine whether the status of any such 

country should be changed on worker rights grounds. 

For clarity, suggest moving Footnote 24 text into this main text. In Footnote 24, the 

USTR process reference can be updated to 10.1 Labor Y Please see update to Section 10.

236 DOL/ILAB 10.3.

For non-GSP-eligible countries that are deemed 

particularly sensitive on worker rights grounds due to a 

documented history of issues relating to Internationally 

Recognized Worker Rights, and where DFC seeks to 

implement its programs for the first time or to lift 

suspension of DFC programs due to foreign policy or 

other priorities, DFC will also follow an interagency 

process and consult with, at a minimum, the U.S. 

Department of State, U.S. Department of Labor, and 

USTR in making its “taking steps” determination.

To avoid any issues with how the initial determination of 'particularly sensitive' is 

made, we suggest deleting this section and ensuring inter-agency consultation in 

any case of first-time operations or lifting suspensions. Labor N

Thank you. How to address an affirmative presumption of 

being open is/will be addressed procedurally internally. 

237 DOL/ILAB 10.4.1.

●	Reports, observations and recommendations of the 

International Labor Organization (ILO);

 'comments and reports' would better reflect the supervisory process. 

Recommendations in ILO parlance are a standard-setting instrument, the tier 

below a Convention. Labor Y Please see update to Section 10(e).

238 DOL/ILAB 10.4.2.

In its country reviews, DFC takes into account the totality 

of circumstances and facts available relevant to 

Internationally Recognized Worker Rights, and uses 

certain general criteria to assess whether countries meet 

the statutory standard, including: (1) Progress towards 

ratification of the relevant ILO fundamental conventions; 

and (2) the progress the country has taken or is taking to 

adopt and implement laws and practices that extend 

Internationally Recognized Worker Rights in areas where 

national law and practice have not met the international 

standard.

Recommend deleting 'progress toward' as ratification is a straightforward binary 

situation. Labor Y Please see update to Section 10(e).
239 DOL/ILAB 10.5.

If a country becomes ineligible for DFC support on 

worker rights grounds, the change of status does not 

affect Projects to which DFC made a legally binding 

commitment prior to the date on which the country 

status changed

Nonetheless, the worker rights issues that led to country ineligibility may create 

additional risks for the project. The ESPP can establish a process to review all 

remaining projects and establish an appropriate plan of action, such as additional 

measures to ensure labor rights within the client or a plan in place to use DFC 

leverage in relevant situations (for example, if the government arrests a trade 

union leader from the client workforce). It should be ensured that project-affected 

people including workers are reminder of their access to redress including the 

Office of Accountability, and it may be appropriate to ask the Office for advisory 

services if the prior commitment will continue an investment in an ineligible 

country for more than a brief time. Labor Y

DFC added clarifying text for monitoring activities 

commensurate to elevated labor risks. With respect to the 

OA, the point is procedual but within the remit of that 

office.

240 DOL/ILAB A 

Production or activities involving harmful or exploitative 

forms of forced labor or child labor.

Recommend deleting 'harmful or exploitative forms', as such situations always 

meet this modifier. Can keep similar to previous ESPP that plainly prohibited forced 

labor and labor. Labor Y Edit accepted.

241 DOL/ILAB A

Production or activities involving harmful or exploitative 

forms of forced labor or child labor. (Footnote 36)

While noting the PS 2 definition, recommend changing Footnote 36 to align with 22 

USC 9671 (which incorporates 19 USC 2467) and ILO Convention 182, which 2467 is 

based on. 

Definition could be: "Child labor means work below the minimum age for 

employment of children under ILO Convention 138 or set by the laws of the 

country, whichever is higher. Worst forms of child labor means all forms of slavery 

or practices similar to slavery, such as the sale or trafficking of children, debt 

bondage and serfdom, or forced or compulsory labor, and any work which is likely 

to harm the health, safety, or morals of children."

Labor N Updated text.

242 DOL/ILAB B Appendix B - Illustrative List of Category A Projects

Suggest adding 'Utility-scale solar power generation' due to the supply chain forced 

labor risks Labor N

This may not always be the case for this sector; 

additionally, it really depends on the technology being 

used.

243 DOL/ILAB B

38.	Projects that require the utilization or reliance to a 

large degree on large pools of sub-contracted, unskilled, 

temporary, casual and/or migrant Workers including 

among primary and secondary suppliers. This term is not used elsewhere - should be 'in the supply chain' Labor Y Updated text.

244 DOL/ILAB C

Contextual Risk - Risks in the external environment (at a 

country, sector, or subnational level) that the Client does 

not control but which could negatively impact a Project’s 

or Client’s ability to meet the Applicable Standards. Risks 

may be due to current circumstances or systemic, legacy 

and/or historic issues. Key risk factors may include:

●Socially sensitive and/or labor-intensive sectors 	 (e.g., 

sectors with known labor or human rights violations, risk 

of child/forced labor, elevated risks of gender 

discrimination or GBVH, hazardous work, involvement of 

significant armed security personnel, major 

environmental and social risks associated with the supply 

chain and/or sectors that have been subject to recent, 

documented public opposition) Maybe 'socially or labor sensitive and/or labor-intensive', as noted in other 

comment labor intensivity is not perfectly correlated to risk. Labor N Point taken, but it can still be a factor in risk.

245 DOL/ILAB C

International Labor Organization (ILO) – The tripartite 

United Nations agency that brings together 

governments, employers and workers of its member 

states in common action to promote decent work 

throughout the world. 

Could say something about standard-setting role of the ILO, and the central 

importance of the Declaration on Fundamental Principles and Rights at Work. Labor N Not additive for the purpose of the definition.
246 DOL/ILAB C

Labor Rights – Rights of Workers, which includes 

Internationally Recognized Worker Rights, and protection 

from discrimination with respect to employment and 

occupation on the basis of personal characteristics that 

are unrelated to inherent job requirements such as: race; 

color; social, indigenous, ethnic, or national origin; 

migrant status; health status (including HIV status or 

genetic background); marital, family, or social status; sex 

or gender (including gender identity or expression and 

sexual orientation); political opinion; affiliation or nonaffiliation to a workers' organization; disability (including 

physical or mental disability); religion or belief; age; or 

other disadvantaged or vulnerable status. Special 

measures of protection or assistance taken in order to 

remedy past discrimination will not be deemed 

discrimination for purposes of this definition.

Affiliation is sufficient. Although 'non-membership' has been introduced as a 

category in some corporate CSR statements as part of signaling opposition to 

unions, international standards generally focus on membership as the main area of 

protection (e.g. Convention 98) and protect workers' free choices without spellingout non-membership alongside membership. Labor N Noted.

247 DOL/ILAB C

Project Affected People – Individuals, local communities 

and Workers, including those within the Supply Chain, as 

well as community-based or worker groups, which are or 

could be affected by the Project's Area of Influence, 

directly or indirectly, including as a result of cumulative 

impacts. Emphasis should be placed on those who are 

directly and adversely affected, disadvantaged or 

vulnerable.

See suggestion to change 'Workers' to better distinguish 'Project Workers' and 

'Project-Affected Workers'. 

Another way to tackle this distinction could be changing the Workers definition 

below to 'Project Workers' and fully describing Project-Affected Workers in the 

definition here. 

Either way, the main text sometimes refers to 'Project Affected People, including 

Workers' and this should encompass both workers employed in relation to the 

project and workers impacted by the project.

Labor N

Noted on consistency. Additional delineations are suited 

for more detailed procedural guidance.

248 DOL/ILAB C

Supply Chain – A tiered network of suppliers, facilities, or 

distribution channels essential for the core business 

processes of the Project and utilized by the Client during 

the Project life cycle to procure raw material inputs; 

assemble, install, or manufacture an intermediate or 

final product; and deliver a final good or service to an 

end user. 

Tracked Changes: Suggest a revised wording:

Supply Chain – A tiered network of suppliers, facilities, or distribution channels that 

provide goods or materials essential for the core functions business processes of 

the Project at any point innd utilized by the Client during the Project life cycle, 

including during any construction, operations, and maintenance activities. Suppliers 

may be at any tier of the supply chain including to procure raw material inputs; 

transformation, assemblye, install, or manufacture of essential production 

equipment and components, intermediate or final products, and delivery of a final 

good or service to an end user.

This makes changes including:

- focusing on provision (manufacturing or transport) of goods and materials, 

avoiding any confusion on activities that may be done by contractors such as 

installation.

- Ensures there are no bad faith arguments or unnecessary exclusions of goods 

sourcing, or arguments that construction is not essential to the core business 

process.

Labor Y Added as definition.

249 DOL/ILAB C

Workers – Individuals who are employed directly by the 

project or under a project contract , and who perform onsite work for a substantial duration of time on a project 

or are material to the core business processes of a 

project. Workers can be temporary or permanent. 

Suggest describing 2 (or 3) sub-categories. The main distinction would be 1) Project 

Workers as defined here and by PS 2, i.e. people working in connection with the 

project, and 2) Project-affected workers who are relevant as a type of Project 

Affected People because their jobs or working conditions are affected by a project 

but they do not work as direct, contracted or supply chain workers.

#1 could be split into direct and contracted workers on the one hand, which is 

roughly what is defined in this paragraph currently, and supply chain workers on 

the other. This would reflect the substantially separate set of protections for 

supply chain workers under PS 2 compared to the other types of project workers. Labor N This is better suited for procedural guidance.
250 GLJ-ILRF 10.0.

Section 1451(d) of the Build Act of 2018 contains the 

following provision:

The Corporation shall only support projects under title II 

in countries that are taking steps to adopt and 

implement laws that extend internationally recognized 

worker rights (as defined in section 507 of the Trade Act 

of 1974 (19 U.S.C. 2467)) to workers in that country, 

including any designated zone in that country.

We encourage the DFC, in making its labor-based country eligibility decisions, to 

embrace the higher standard of the BUILD Act. While the Generalized System of 

Preferences requires only that a country have or be taking steps to afford 

internationally recognized worker rights, the BUILD Act provides that countries 

must be “taking steps to adopt and implement laws that extend internationally 

recognized worker rights.” Compare 19 U.S.C. § 2467(b)(2)(G) with 22 U.S.C. § 

9671(d)(1). The BUILD Act’s formulation is more concrete, more easily applied, and 

more likely to encourage project host countries to maintain an ongoing 

commitment to securing workers’ rights in changing circumstances. In no event 

should the DFC invest in countries that are unable to meet the lower GSP standard. 

In applying either country-level eligibility standard, DFC should place great 

emphasis on the achievement of internationally agreed labor standards. Such an 

approach ensures that DFC’s work aligns with that of other US government 

agencies and international bodies, strengthening the signal sent to host countries 

seeking DFC investment. Labor N

The "taking steps" to afford standard under the Trade Act 

and the "taking steps to adopt and implement laws" for 

DFC (then OPIC) were intended by Congress to be 

materially the same for both agencies' implementation of 

their programs since the mid-1980s. The application of 

each has been uniform; the GSP standard is not lower than 

DFC's.

251 GLJ-ILRF 10.2.1.

In making its determinations as to whether non-GSPeligible countries where DFC programs are being offered 

are taking steps to adopt and implement laws that 

extend Internationally Recognized Worker Rights to 

Workers, DFC utilizes a similar petition and review 

process. Petitions can be submitted to DFC at its public 

hearings to reexamine whether the status of any such 

country should be changed on worker rights grounds.

We encourage the DFC to clarify its use of the term “GSP eligible” in the ESPP, 

given that the program is currently inactive pending congressional action to renew 

the statute. Labor N GSP-eligible is defined by USTR, not DFC.

252 IRMA 3.1.3.

Projects in locations, industries, or sectors that are laborintensive; involve hazardous work with a documented 

history of Labor Rights issues; or rely on large pools of 

contracted, migrant, casual or unskilled Workers, 

including within the Supply Chain. Projects in locations, 

industries or sectors with elevated risks of gender 

discrimination, exclusion or GBVH may also be higher 

risk. Examples of such Projects are those that involve 

significant construction activities, manual harvesting of 

agricultural commodities, Extractive Industries, and are 

in industries in which Workers face difficulty in exercising 

trade union rights, or have a higher likelihood of using 

forced (including trafficked) or child labor, including in 

their supply chains.

Important to specifically list these here. Labor N Thank you.

253 TNC 3.1.3.

Projects in locations, industries, or sectors that are laborintensive; involve hazardous work with a documented 

history of Labor Rights issues; or rely on large pools of 

contracted, migrant, casual or unskilled Workers, 

including within the Supply Chain. Projects in locations, 

industries or sectors with elevated risks of gender 

discrimination, exclusion or GBVH may also be higher 

risk. Examples of such Projects are those that involve 

significant construction activities, manual harvesting of 

agricultural commodities, Extractive Industries, and are 

in industries in which Workers face difficulty in exercising 

trade union rights, or have a higher likelihood of using 

forced (including trafficked) or child labor, including in 

their supply chains.

What is a casual worker? Labor N

These definisions are contextually evaluated based on 

guidance within the IFC Performance Standards.

254 TNC 10.1.4.

The country list on DFC’s website is updated to remove 

the country as of the effective date of the country’s 

ineligibility, and DFC staff are notified of the change of 

country status. However, if a country becomes ineligible 

for GSP benefits on grounds other than worker rights, 

that country remains eligible for DFC programs. 

Pardon my ignorance, but just want to double check that these laws and 

regulations comply with all applicable ILO global standards. Labor N Unsure which laws and regulations are being cited here.
255 TNC 10.5.

If a country is under a formal review on worker rights 

grounds (by either USTR’s TPSC or DFC), projects that are 

in the application process are subject to a review that is 

sensitive to the labor issues highlighted in the GSP or 

DFC petition

I could not find a process that articulates the approval and contracting process 

from DFC and where these different steps are situated in that parallel process? It 

makes it unclear what activities are defined for when. Labor N

If a country is under formal review under worker rights 

grounds by GSP, the country-level issues are incorporated 

in the review of the project.

256 TNC A

Production or activities involving harmful or exploitative 

forms of forced labor or child labor.

I would argue that effectively all forced labor and child labor related to a largescale 

infrastructure project is harmful and exploitative. I would encourage both as 

categorical exclusions with no qualifiers. Labor Y Edit accepted.

257 GLJ-ILRF 10.2.1.

In making its determinations as to whether non-GSPeligible countries where DFC programs are being offered 

are taking steps to adopt and implement laws that 

extend Internationally Recognized Worker Rights to 

Workers, DFC utilizes a similar petition and review 

process. Petitions can be submitted to DFC at its public 

hearings to reexamine whether the status of any such 

country should be changed on worker rights grounds.

DFC should ensure that it gives ample opportunity for external parties to 

contribute to its assessments of project-level labor rights risks and its country-level 

“taking steps” determination. Risks to workers’ rights vary not only by national 

jurisdiction, but also by locality and sector and over time. DFC’s processes should 

seek out and incorporate the inputs of trade unionists, labor rights activists, and 

others in assessing environmental and social risks. Their expertise and connections 

to local communities provide particularly crucial insights for DFC when evaluating 

the labor rights risks associated with both countries and projects. The proposed 

ESPP’s inclusion of the ITUC annual reporting as a source for country eligibility 

reviews suggests that DFC already understands the essential role of workers’ 

organizations and others in delivering this information. We would encourage DFC 

to go further and incorporate the sectoral analyses provided by relevant unions 

and global union federations when evaluating environmental and social risks. Labor, Consultation N

External parties are included in the Country Eligibility 

Review Criteria in determining country eligibility under 

10(e).

258 DOL/ILAB B

Large-scale primary agriculture/plantation or forestation 

involving intensification, land use change or conversion 

of priority biodiversity features and/or Critical Natural 

Habitat or conversion of Natural Habitat.

Suggest adding palm oil here or as a separate item given the high labor and 

environmental risks. Labor, Forests N

Large scale palm oil plantations are considered within this 

category. 

259 DOL/ILAB 6.1.3.

Summary of grievances received from Project Affected 

People or Stakeholders and actions taken to resolve 

them Including Workers Labor, Reporting N

The definition of Project Affected People already includes 

workers.

260 AFL-CIO 6.1.4.

Clients are required to facilitate the third-party audit(s) 

as required by DFC, including covering all costs 

associated with conducting the audit. 

Who picks the auditor. If the client picks the auditor and pays for the audit, there 

are obviously opportunities for the corruption of the audit. Monitoring N DFC approves the auditor and scope of the audit.

261 AFL-CIO 6.1.6.

Clients are required to retain the rights afforded under 

each investment structure, to ensure that DFC has the 

rights to (1) visit and inspect Project site(s); unannounced Monitoring N This is currently not feasible for DFC.

262 CARE 6.0.3.

Selection for monitoring site visits is determined through 

a risk-based prioritization process. The scope, timing, and 

periodicity of the visits are commensurate with the 

significance and severity of environmental and social 

risks and impacts of a Project, Client, or Financial 

Intermediary. These visits are intended to check for onthe-ground compliance, identify areas where the Project 

is implementing good practices and/or potential areas 

for improvement, and enable an opportunity for 

Workers, Project Affected People, and other 

Stakeholders to interact and provide feedback on the 

Project to DFC. 

I think this needs a bit more clarity. Specifications on the range of frequency per 

Category and/or an example may be helpful. Monitoring N

Further specificity is captured in internal guidance and 

procedures.

263 CSO Group 6.0.2.

The extent and frequency of monitoring will be 

commensurate with the environmental and social risks 

associated with the Project. DFC undertakes monitoring 

through review of environmental and social reports 

(client self-reporting and/or third-party reports), 

communication with Clients regarding the Project’s 

environmental and social performance and/or site visits 

to Projects by DFC’s environmental and social specialists 

and/or independent experts. 

Should be required through third party reports.

Tracked Changes: The extent and frequency of monitoring will be commensurate 

with the environmental and social risks associated with the Project. DFC 

undertakes monitoring through review of environmental and social reports (client 

self-reporting and

/or third-party reports), communication with Clients regarding 

the Project’s environmental and social performance and/orsite visits to Projects by 

DFC’s environmental and social specialists and/or independent experts. Monitoring N

DFC identifies projects, mode, and frequency of monitoring 

acitivites commensurate to the specific risk profile of 

project. 
264 CSO Group 6.0.3.

Selection for monitoring site visits is determined through 

a risk-based prioritization process. The scope, timing, and 

periodicity of the visits are commensurate with the 

significance and severity of environmental and social 

risks and impacts of a Project, Client, or Financial 

Intermediary. These visits are intended to check for onthe-ground compliance, identify areas where the Project 

is implementing good practices and/or potential areas 

for improvement, and enable an opportunity for 

Workers, Project Affected People, and other 

Stakeholders to interact and provide feedback on the 

Project to DFC. 

Track Changes: Selection for monitoring site visits is determined through a riskbased prioritization process. The scope, timing, and periodicity of the visits are 

commensurate with the significance and severity of environmental and social risks 

and impacts of a Project, Client, or Financial Intermediary. 

However, for all 

Category A and B projects site visits will be conducted by DFC staff or independent 

consultants every 6 months during construction, every 12 months during 

implementation, and at any time that project risk is reassessed and found to have 

increased. DFC will additionally facilitate participatory monitoring by projectaffected communities. 

Monitoring N

DFC identifies projects, mode, and frequency of monitoring 

acitivites commensurate to the specific risk profile of 

project. 

265 Laurent Christian Rim Letter

DFC is currently reviewing and updating its Environmental and Social Policy and 

Procedures (ESPP) – the first major revision effort since 2016.

We have been associated with this important exercise and we thank you for this 

great sign of benevolence.

We would like to welcome and appreciate this initiative, which provides us with 

additional information, as part of the preparation and sending of our loan 

application, repayable. to finance a plant for the processing of natural plants into 

finished and marketable pharmaceutical products. Our project benefits from the 

contribution of an Indian firm up to 40% of the total costs.

The weakness of our current production has led us to consider a partnership with 

the Americans and the Indians to install a production unit to cover a market, of 

tens and tens of millions of persons, whose needs are increasingly growing in 

innovative health products as evidenced by the letters-order, which are sent to us 

and which we will be send to you with our business plan, the Deloitte financial 

audit certificate, the contract with the Indians, a sheet of the various products 

already on the market, as well as, laboratory certificates, and other information 

about the STPN BIO, for all practical purposes.

We regret that we receive the above mentioned document ( Environmental and 

Social Policy and Procedures (ESPP)) only today, which did not allow us to conduct 

an in-depth analysis to enrich it with our proposals.

As a potential client of DFC, which we have been following since its launch on 

December 20, 2019, we hope through the aforementioned project to soon engage 

in a win-win partnership with this prestigious financial institution. NA NA Thank you for the comments.

266 CSO Group 1.2.1.

Not tolerate any action that amounts to retaliation or 

reprisals – including threats, intimidation, harassment, or 

violence – against those who voice their opinion 

regarding the activities of DFC or its Clients

Tracked Changes (added text): DFC will treat retaliation or reprisals as material noncompliance in accordance with section 7.1. Non-retaliation NAdditonal detail and guidance will be captured in the 

procedures.

267 CSO Group

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4)	Retaliation and Reprisals: We are pleased that DFC outlines its requirement that 

clients do not tolerate any action that amounts to retaliation or reprisals – 

including threats, intimidation, harassment, or violence (Section 1.2), matching the 

priorities of the U.S. at the MDBs. We also commend DFC for including the risk of 

reprisals as a key element for DFC to consider when assessing the contextual risk 

that could negatively impact the ability of a client to meet the Applicable Standards 

(Appendix C). However, DFC should expand and clarify this language, either in the 

ESPP itself or in a separate public policy, to include the following: 

a)	Guidance for staff and clients on designing projects sensitive to reprisal risks 

and include measures to prevent reprisals, especially within stakeholder 

engagement and grievance redress components.

b)	Protocols for responding to reprisals.

c)	A clear commitment to investigate and take action on each complaint received.

Non-retaliation N

Additonal detail and guidance will be captured in the 

procedures.

268 EarthRights Letter

In addition to the non reprisal commitment in section 1.2.1, we urge DFC to include 

in its Appendix A –Categorical Provisions an exclusion of financing to companies 

with a prior history of a pattern of engaging in reprisal or retaliation against project 

stakeholders. Such a provision would help DFC avoid engagements with companies 

that could later violate the non reprisal provision of section 1.2.1. We believe that 

companies with past histories of reprisal or retaliation are more likely to violate 

other components of the ESPP. Non-retaliation N

DFC's current comittments to diligence consider assessing 

for this type of past performance, including allegations. 
269 CSO Group 1.2.1.

Identify, assess, and avoid adverse environmental and 

social impacts of the Project and, if such impacts are 

unavoidable, properly minimize, mitigate, compensate, 

and/or remedy impacts through application of the 

mitigation hierarchy

Tracked Changes: Identify, assess, and avoid adverse environmental and social 

impacts of the Project and, if such impacts are unavoidable, properly minimize, 

mitigate, compensate, and/or remedy impacts through application of the 

mitigation hierarchy, leaving open the possibility of a “no project” option Process N See update to the intro of Section 3 to clarify this.

270 CSO Group

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While having a strong ESPP is important, it is of little use without proper 

implementation and accountability. DFC should allocate ample budget, resources, 

and training to build the institutional capacity needed to strengthen its due 

diligence and supervision processes as the new ESPP goes into effect. Process N Agreed.

271 GLJ-ILRF 3.0.3.

During the screening process, DFC reviews the Project’s 

anticipated risks and impacts, its defined Area of 

Influence, and information on Project Affected People to 

determine whether the information is adequate, 

accurate, objective, and appropriate to the size and 

nature of Project activities. Additional information may 

be required from the Client and from independent 

experts.

We also note our concern that changes in the wording of the proposed ESPP may 

limit DFC’s ability to access the information housed in the global networks of labor 

and human rights activists. The ESPP allows DFC to consult with “independent 

experts” in its due diligence and monitoring processes (§§ 4.00.6, 4.0.8, 6.0.2, 6.0.4, 

6.1.5, 8.2.3). Previously, the DFC was permitted to consult with “knowledgeable 

third parties.” Given that many trade unions and human rights activists may or may 

not be considered independent, we believe the DFC should permit consultation 

with “independent experts and knowledgeable third parties.” That change would 

ensure that DFC can access these vital networks and access the information 

needed to perform effective assessments. Process N This is best suited to internal process and is the intent.

272 TNC 1.0.

This ESPP also includes guidance for what DFC Clients 

need to prepare, submit, and implement . 

From a process standpoint, it would be great to have a very clear set of rules and 

guidance on roles/responsibilities and products of these various processes. For 

example, the outcome of the screening process should be a standardized roadmap 

for DFC partner agencies and governments to guide their safeguards work. It 

should be clear who is producing those resources, how, and when. More clear 

articulation of the expectations for how and when safeguards resources are 

submitted to the DFC and the response process from DFC safeguards staff and 

consultants would be productive as well. Process N This is best suited for internal procedures and guidance.

273 TNC 1.2.1.

To this end, DFC will partner with its Clients to assist 

them in identifying opportunities to add value, promote 

longer-term sustainability and strengthen their 

environmental and social management capacity. 

I would start with “avoid risk” here. This is the primary reason for the system. We 

should be clear that a safeguards process is, first and foremost, a risk mitigation 

mechanism. TNC encourages an ambitious platform with more robust benefit to 

communities and vehicles to enhance equity; however, it also makes sense to be 

clear about the foundational premise of ESMS work as a risk avoidance process. Process Y Updated text.

274 TNC 3.2.1

 Where the use of proceeds are unknown or not well 

defined, the risk category will be based on the inherent 

risks associated with the particular sector, the 

environmental and social characteristics of the business 

activity and the country context. This should be refined into plans when these risks are further identified. Process N

DFC evaluates corporate management systems to make 

sure they have risk identification and mitigation systems.

275 TNC 3.2.2.

Where the use of proceeds of a Corporate Investment is 

known and understood the environmental and social 

review should proceed as it is done for traditional project 

finance and the Applicable Standards will apply only to 

the business activities financed using the DFC funds . 

This feels like it could create room for accounting that enables high risk activities if 

accounts are managed to avoid due diligence of those specific activities. I would 

manage this at the project level. If DFC’s name is on the project, those risks should 

be understood and managed. Process N

The DFC approach is consistent with that applied by other 

DFIs.

276 TNC 4.1.2.

For Category A and B Projects, the Client should submit 

one or more documents that describe the following 

aspects

When does this happen? Is this for screening? This is confusing because it isn’t 

placed in the project cycle. Process Y

See minor clarification in Section 4.2.2. Documents are 

submitted in various timeframes depending on the status 

of the Project.

277 TNC 4.1.3.

Category C Projects are not required to establish a 

formal ESMS but are required to have in place 

appropriate environmental and social policies and 

procedures that will guide the Project (as described in 

Performance Standard 1), human resource management 

systems, and internal and external facing grievance 

mechanisms . It has not been stated elsewhere that A and B require an ESMS. Do they? Process N

Section 2.2 identifies the applicablity of PS 1 and 2, which 

include an ESMS commensurate to Project risks and Section 

4.1 also notes that an ESMS is expected to be reviewed 

commensurate to risk. Section 4.2.2 explicitly requires it 

for Category A and B Projects.

278 TNC 6.0.1.

DFC also monitors changes in the Project and its local 

context that may affect its environmental and social risk 

profile and the Project’s ability to achieve ongoing 

compliance. 

Where does it state as a DFC responsibility that it will conduct the screening and 

recommendations for assessments and mitigation measures? Process N See Chapter 3: Screening and Categorization.
279 TNC 7.0.3.

Based on DFC’s environmental and social review (See 

Section 4.0.), DFC develops appropriate, project-specific 

conditions required of the Client to achieve compliance 

with the Applicable Standards. These conditions are 

included in the DFC Agreement as part of the 

Environmental and Social Requirements and remain in 

effect throughout the term of the DFC Agreement. This 

may come in the form of an Environmental and Social 

Action Plan (ESAP). ESAPs are required for all Category A 

projects and for some Category B Projects that are 

dependent on mitigation and monitoring measures to 

avoid or reduce potentially significant environmental and 

social impacts

I would recommend a standard form with an itemized list of requirements for 

every project regardless of risk category. For piecemeal assessments and risk 

mitigation recommendations, these recommendations have typically come in a 

series of emails and correspondence from the DFC to my organization that can be 

hard to follow and track. Process N

To be considered as part of internal guidance. We do have 

standard templates that we use but every project is 

different depending on nature and structure of transation.

280 TNC 7.0.6.

Clients are required to comply with all contractual 

conditions, including any applicable ESAP , whether or 

not the Client has a controlling interest in the Project. 

Getting an ESAP during the preliminary screening process that outlines the due 

diligence requirements at the time of the assessment in a definitive way would be 

ideal. Process N

ESAPs are developed after due dilligece is complete. They 

define the actions that must be taken to mitigate risks.

281 TNC 5.1.7.

DFC notifies host country governments of any Category A 

Project considered for support

Does the DFC not have scope/scale thresholds for notifying national governments? 

Lower or medium risk projects could have an enormous scope that governments 

would like want to know about. Also, just a note that the GCF requires no objection 

letters from governments. Process, HCN N

Under its statutory requirements, DFC is required to notify 

the host government of statutory and other applicable 

provisions related to public health or environment that are 

aplicable to the project. This applies to proposed DFC 

financing for any environmentally sensitive investment, but 

does not require actual thresholds for notification. 

282 GLJ-ILRF 4.0.1.

After screening and categorization, and prior to DFC 

approval, DFC undertakes a review of the Project and the 

Client’s organizational capacity to determine whether 

the Client meets or can meet the requirements of the 

Applicable Standards. 

The proposed ESPP requires no inquiries into clients’ and their partners’ past 

business practices that would clarify the likelihood of compliance. DFC clients 

should be required to disclose their own and their business partners’ past 

performance in environmental and social matters, especially on other projects 

financed by development finance institutions. Disclosure of past complaints and 

any adverse legal determinations on environmental and social matters are the 

minimum of information necessary to provide a basic evaluation of DFC’s partners 

on a given project. Information about past practices is critical to assessing the bona 

fides of those DFC considers supporting. Because of poor information-sharing 

practices among DFIs and a lack of inquiry into past practices, businesses may 

obtain support even when they have violated domestic laws, disregarded DFI 

safeguards, or demonstrated an inability or unwillingness to pursue compliance in 

the past Process, Disclosure N

The douments that DFC intends to include for disclosure 

can be found in Chapter 5.

283 CSO Group A

Projects or companies that perform abortions as a 

method of family planning; motivate or coerce any 

person to practice abortions; perform involuntary 

sterilizations as a method of family planning; coerce or 

provide any financial incentive to any person to undergo 

sterilizations; or perform any biomedical research which 

relates in whole or in part, to methods of, or in the 

performance of, abortions or involuntary sterilization as a 

means of family planning.

Tracked Changes: Projects or companies that perform abortions as a method of 

family planning; motivate or coerce any person to practice abortions; perform 

involuntary sterilizations as a method of family planning; coerce or provide any 

financial incentive to any person to undergo sterilizations; or perform any 

biomedical research which relates in whole or in part, to methods of, or in the 

performance of, 

abortions or involuntary sterilization as a means of family 

planning.

Prohibition, Hyde N

The present language of the ESPP (Appendix A, #18) will be 

carried forward as it continues to reflect legal restrictions 

imposed on the DFC. 

284 TNC A 

Conversion or degradation of Critical Forest Areas or 

Critical Natural Habitats. 

I would suggest to also include Natural Habitats with high biodiversity value. This 

ensures that certain key biodiveristy areas are note left out from potential negative 

impacts.

Prohibition, 

Biodiversity Y

The definitions in Appendix C have been updated to reflect 

current best practice for the protection of biodiversity.

285 CSO Group A

Tracked Changes: [ Added text] Any direct or indirect impact on free-flowing rivers, 

defined as bodies of water whose flow and connectivity remain largely unaffected 

by human activities, unless it can be demonstrated through an environmental and 

social assessment that the Project (i) will not result in degradation of the protected 

area and (ii) will produce positive environmental and social benefits. Prohibition, Dams N DFC is not adding new categorical prohibitions at this time.

286 CSO Group A 

Conversion or degradation of Critical Forest Areas or 

Critical Natural Habitats. 

Tracked Changes: Conversion or degradation of Critical Forest Areas, which 

includes primary forests, old growth forests and vulnerable secondary forests, 

 or 

Critical Natural Habitats. Prohibition, Forests Y

The definitions in Appendix C have been updated to reflect 

current best practice for protection of biodiversity
287 CSO Group 3.0.2.

Support for a Project will be declined when (1) a Project 

is a Categorically Prohibited Project (Appendix A); (2) a 

Project fails to address environmental and social issues in 

a satisfactory manner and cannot be expected to meet 

the requirements of the Applicable Standards over a 

time frame considered reasonable and feasible; (3) 

residual impacts after mitigation are unacceptable; (4) a 

Project does not comply with the host country’s 

environmental and social laws or regulations and cannot 

be expected to comply over a time frame considered 

reasonable and feasible; (5) a Project does not respect 

Human Rights including Labor Rights.

Tracked Changes: Support for a Project will be declined when (1) a Project is a 

Categorically Prohibited Project (Appendix A); (2) a Project fails to address 

environmental and social issues, providing evidence that the project will not lead or 

exacerbate negative environmental and/or social issues, in a satisfactory manner 

and cannot be expected to meet the requirements of the Applicable Standards 

over a time frame considered reasonable and feasible; (3) residual impacts exist 

after mitigation are unacceptable; (4) a Project does not comply with the host 

country’s environmental and social laws or regulations and cannot be expected to 

comply over a time frame considered reasonable and feasible; or (5) a Project does 

not respect Human Rights including Labor Rights. and rights of Project Affected 

Peoples, including when Indigenous Peoples and customary land rights holders 

have withheld consent.Also, in case the affected communities say "no" to the 

project in line with ILO 169 Convention. Prohibitions N

Regarding the Project Affected Peoples edit, this level of 

detail is incorporated in the existing language and DFC 

consider these specific rights within the context of Human 

Rights. On the negative environmental and social issues 

point, this is what the E&S assessment is meant to evaluate 

to determine whether there can be appropriate outcomes. 

Appropriate outcomes do not always equal no risk.

288 CSO Group A Resettlement of 5,000 or more persons. 

Tracked Changes: Resettlement of 2 5,000 or more persons and/or any Indigenous 

communities. Prohibitions N

At this point, DFC is not changing the threshold for the 

resettlement prohibition.

289 CSO Group A

Tracked Changes: [Added text] Companies found by a court or administrative body 

of competent jurisdiction engaging in unlawful monopolistic practices.  Prohibitions N

DFC has removed this prohibition as it is adequately 

covered by KYC procedures and other prohibitions. 

290 CSO Group A 

Tracked Changes: [Added text] Projects or companies that provide significant, 

direct support to a government that engages in a consistent pattern of gross 

violations of internationally recognized Human Rights, as determined by the U.S. 

Department of State. Prohibitions N This suggested addition is a duplication of existing text.

291 CSO Group A Tracked Changes: [Added text] Large-scale peat extraction.

 Prohibitions N DFC is not adding new categorical prohibitions at this time.

292 CSO Group A 

Tracked Changes: [Added text] Quarries and opencast mining where the surface of 

the site exceeds 25 hectares, or peat extraction, where the surface of the site 

exceeds 150 hectares. Prohibitions N DFC is not adding new categorical prohibitions at this time.

293 CSO Group A 

Tracked Changes: [Added text] Major exploration and development of onshore oil 

and gas reserves or coal mining and industrial operations that involve coal as a fuel. Prohibitions N DFC is not adding new categorical prohibitions at this time.

294 CSO Group A 

Tracked Changes: [Added text] Exploration and development of offshore oil and gas 

reserves. Prohibitions N DFC is not adding new categorical prohibitions at this time.

295 CSO Group A 

Tracked Changes: [Added text] Installations for storage of petroleum, 

petrochemical, or chemical products with a capacity of 200,000 tons or more. Prohibitions N DFC is not adding new categorical prohibitions at this time.

296 CSO Group A 

Tracked Changes: [Added text] Large-scale logging or deforestation of large areas 

of natural forest. Prohibitions N DFC is not adding new categorical prohibitions at this time.

297 CSO Group A 

Tracked Changes: [Added text] Large-scale primary agriculture/plantation or 

forestation involving 

intensification, land use change or conversion of priority 

biodiversity features and/or Critical Natural Habitat or conversion of Natural 

Habitat. Prohibitions N DFC is not adding new categorical prohibitions at this time.

298 CSO Group A 

Tracked Changes: [Added text] Pipelines with a diameter of more than 800 mm and 

a length of more than 40 km, terminals, and associated facilities for the large-scale 

transport of gas, oil, metals/minerals and chemicals. Prohibitions N DFC is not adding new categorical prohibitions at this time.

299 CSO Group A 

Tracked Changes: [Added text] Any operation that involves rearing animals in 

feeding operations or feedlots that involve extreme and prolonged confinement, 

limiting or eliminating animals’ access to the outdoors, routine administration of 

antibiotics with potential for development of antimicrobial resistance, and the 

routine use of other inhumane practices, including medically unnecessary, painful 

mutilations. Prohibitions N DFC is not adding new categorical prohibitions at this time.

300 CSO Group A 

Tracked Changes: [Added text] Any production of or trade in commodities that 

originate from illegally deforested land.

Prohibitions N DFC is not adding new categorical prohibitions at this time.
301 CSO Group A 

Tracked Changes: [Added text] Projects, not otherwise categorically prohibited, 

that are located in or sufficiently near sensitive locations of national or regional 

importance. or proposed for such status by national governments which may have 

apparent negative environmental or social impacts on: 

Wetlands; 

Areas of archeological or cultural significance including critical cultural heritage; 

Areas prone to erosion and/or desertification; 

Areas of importance to indigenous peoples; 

Primary temperate/boreal Forests; 

Areas that provide significant ecosystem services; 

Coral reefs; 

Mangrove swamps; 

Habitats or other ecosystems which support priority biodiversity features; 

Nationally designated seashore areas; and 

Managed resource protected areas, protected landscape/seascape (International 

Union for the Conservation of Nature (IUCN) categories V and VI) as defined by 

IUCN’s Guidelines for Protected Area Management Categories. Additionally, these 

projects must meet IUCN’s management objectives and follow the spirit of IUCN 

definitions. Prohibitions N DFC is not adding new categorical prohibitions at this time.

302 CSO Group A

Tracked Changes: [Added text] Projects that involve extractive industries or related 

infrastructure in or impacting the Arctic Ocean. Prohibitions N DFC is not adding new categorical prohibitions at this time.

303 TNC 3.0.2.

Support for a Project will be declined when (1) a Project 

is a Categorically Prohibited Project (Appendix A); (2) a 

Project fails to address environmental and social issues in 

a satisfactory manner and cannot be expected to meet 

the requirements of the Applicable Standards over a 

time frame considered reasonable and feasible; (3) 

residual impacts after mitigation are unacceptable; (4) a 

Project does not comply with the host country’s 

environmental and social laws or regulations and cannot 

be expected to comply over a time frame considered 

reasonable and feasible; (5) a Project does not respect 

Human Rights including Labor Rights.

I would encourage a prohibited activities list rather than a prohibited projects list 

so you can flesh out specific exclusions. Prohibitions N

The categorical prohibition list is a mixture of activities and 

types of projects. 

304 TNC A Resettlement of 5,000 or more persons. This should include any forced resettlement activities, if possible. Prohibitions N

IFC PS 5 addresses how Projects should approch 

displacement. DFC is not adding new categorical 

prohibitions at this time.

305 TNC B

Areas of archeological or cultural significance including 

critical cultural heritage; I would encourage this as an exclusion. Prohibitions N

We appreciate the sensitivity in this case, but apply the 

mitigiation hierarchy and requirements for consultation to 

determine what the imapcts are likely to be and whether 

they can be appropriately avoided or mitigated.

306 CSO Group A Appendix A Categorical Prohibitions

Tracked Changes: [Added text] Any projects that are likely to cause, contribute to, 

or exacerbate human right violations.(29)

(29) Including (but not limited to) violations of ILO core labor standards/ 

fundamental rights at work, rights of Indigenous Peoples as established under 

UNDRIP, rights of women per UN Convention on the Elimination of All Forms of 

Discrimination against Women (CEDAW), and rights of children per UN Convention 

on the Rights of the Child. Prohibitions, Gender N

DFC would not adhere to the requirements of conventions 

the US is not a party or signatory to.

307 CSO Group A

Tracked Change: [Added text] Production or activities that result in or contribute to 

the sexual exploitation, abuse, harassment, or trafficking of individuals. Prohibitions, Gender N

DFC takes a risk-based approach to addressing GBVH, 

including sexual harassment and sexual exploitation and 

abuse. DFC's requirement is that borrowers identify and 

understand how these risks arise in their specific context, 

and put in place proportionate measures to address these 

risks, including measures to prevent, mitigate risk and 

respond to incidents of GBVH that may arise. 
308 CSO Group A

Tracked Changes: [Added text] Projects or activities that would fund, or in any way 

support, the construction, upkeep, or rehabilitation of institutions for persons with 

disabilities.  Prohibitions, Gender N DFC is not adding new categorical prohibitions at this time.

309 TNC A Appendix A Categorical Prohibitions

Projects likely to exacerbate local human rights issues or social/political conflicts, 

projects that fund armed security personnel substantially, projects with a risk of 

exacerbating risks to women and girls (or LGBTQ communities)? Just some ideas for 

added exclusions. Prohibitions, Gender N DFC is not adding new categorical prohibitions at this time.

310 CSO Group A 

Any impact on World Heritage Sites32 unless it can be 

demonstrated through an environmental and social 

assessment that the Project (i) will not result in the 

degradation of the protected area and (ii) will produce 

positive environmental and social benefits. 

Tracked Changes: [Added/Substituted text] Any direct or indirect impact on areas 

recognized by international conventions and agreements, including but not limited 

to the Bonn Convention, Ramsar Convention, World Heritage Convention and 

Convention on Biological Diversity, or other international bodies such as UNESCO 

(Biosphere Reserves, UNESCO Global Geoparks, etc.) or Food and Agricultural 

Organization (vulnerable marine ecosystems), International Maritime Organization 

(particularly sensitive areas), IUCN Designated Areas (Categories IA – VI), unless it 

can be demonstrated through an environmental and social assessment that the 

Project (i) will not result in degradation of the protected area and (ii) will produce 

positive environmental and social benefits. Protected Areas N DFC is not adding new categorical prohibitions at this time.

311 CSO Group A 

Any impact on areas on the United Nations List of 

National Parks and Protected Areas33 unless it can be 

demonstrated through an environmental and social 

assessment that the Project (i) will not result in the 

degradation of the protected area and (ii) will produce 

positive environmental and social benefits. 

Tracked Changes: [Added/Substituted text] Any direct or indirect impact on areas 

that are nationally or sub-nationally recognized and protected by law or other 

regulations/policies, including sites which may be located in or overlap with 

formally, informally, or traditionally held conserved areas such as Indigenous and 

community conserved areas (ICCA), Indigenous Territories (ITs) or public lands not 

yet demarcated, unless it can be demonstrated through an environmental and 

social assessment that the Project (i) will not result in the degradation of the 

protected area and (ii) will produce positive environmental and social benefits. Protected Areas N DFC is not adding new categorical prohibitions at this time.

312 CSO Group A

Marine and coastal fishing practices, such as large-scale 

pelagic drift net fishing and fine mesh net fishing using 

nets in excess of 2.5 km in length. 

Tracked Changes: [Added/Substituted text] Any direct or indirect impact on 

protected or at-risk marine or coastland ecosystems, including mangrove forests, 

wetlands, reef systems, and those located in formally, informally, or traditionally 

held areas, Indigenous Territories (ITs), or public lands not yet demarcated, or 

Indigenous and community conserved areas (ICCA), unless it can be demonstrated 

through an environmental and social assessment that the Project (i) will not result 

in degradation of the protected area and (ii) will produce positive environmental 

and social benefits Protected Areas N DFC is not adding new categorical prohibitions at this time.

313 CSO Group A

Tracked Changes: [Added text] Any direct or indirect impact on Indigenous Peoples 

and Community Conserved Territories and Areas (ICCAs), community-based 

conservation areas, formally, informally, traditionally, customarily held resources 

or areas, Indigenous Territories, sacred sites and/ or land with ancestral 

significance to local and Indigenous communities’ areas where the free, prior, 

informed consent (FPIC) of Indigenous and Local Communities have not been 

obtained. Protected Areas N

This is implied if IFC PS 7 and the requirements for FPIC are 

applicable.

314 CSO Group A

Tracked Changes: [Added text] Any direct or indirect impact on Iconic Ecosystems, 

defined as ecosystems with unique, superlative natural, biodiversity, and/or 

cultural value which may sprawl across state boundaries, and thus may not be 

wholly or officially recognized or protected by host countries or international 

bodies, such as the Amazon, the Arctic, among other at-risk ecosystems, unless it 

can be demonstrated through an environmental and social assessment that the 

Project (i) will not result in degradation of the protected area and (ii) will produce 

positive environmental and social benefits. Protected Areas N DFC is not adding new categorical prohibitions at this time.
315 CSO Group A 

Extraction or infrastructure in or impacting protected 

area Categories I, II, III, and IV (Strict Nature 

Reserve/Wilderness Areas, National Parks, Natural 

Monuments and Habitat/ Species Management Areas), 

as defined by the International Union for the 

Conservation of Nature (IUCN) unless it can be 

demonstrated through an environmental and social 

assessment (i) there is no degradation of the protected 

area and (ii) there are positive environmental and social 

benefits. 

Tracked Changes: [Added/Substituted text] Any direct or indirect impact on 

habitats with endemic or threatened species (categorized as Near Threatened, 

Vulnerable, Endangered, and Critically Endangered by the IUCN Red List), including 

Key Biodiversity Areas, unless it can be demonstrated through an environmental 

and social assessment that the Project (i) will not result in degradation of the 

protected area and (ii) will produce positive environmental and social benefits. 

Protected Areas, 

Biodiversity N DFC is not adding new categorical prohibitions at this time.

316 CSO Group

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7)	Remedy: When projects harm communities, these harms must be fully 

remediated. The ESPP’s requirement that clients minimize, mitigate, compensate, 

and/or remedy impacts through the application of the mitigation hierarchy in the 

event of adverse environmental and social impacts (Section 1.2.1) is a step in the 

right direction. However, DFC should also develop, through public consultation, a 

separate policy on remedy that:

a)	Develops processes to facilitate and provide remedy in consultation with projectaffected stakeholders. 

b)	Includes options for remedy from the earliest stages of project negotiation and 

design, creates provisions in case of harm in contractual agreements with 

borrowers and clients, and establishes a framework for DFC to contribute to 

remedy.

c)	Accounts for how DFC and its clients will remediate harm when the client or DFC 

exits a project investment. 

Remedy N

DFC is following these conversations with fellow DFIs and 

other stakeholders. DFC sees the Project requirements in 

the ESPP and IFC PS as inclusive of these concerns when 

applied appropriately. Additionally the OOA is availble for 

instances where these issues have not been adequately 

addressed.

317 GLJ-ILRF ?

We encourage DFC to work towards the development of remedy and responsible 

exit policies. A remedy policy is crucial for fulfilling DFC’s obligation under the UN 

Guiding Principles to redress human rights violations, while a responsible exit 

policy would backstop ESPP requirements and ensure that premature project exits 

do not leave harms unaddressed. Remedy, Exit N Under consideration, thank you. 

318 CSO Group 6.1.2.

All DFC Agreements require timely notification to DFC of 

any incident occurring at the Project site that results in 

the loss of life or that has a material, adverse impact on 

or poses material risk to the environment, Workers, or 

Project Affected People. 

Tracked Changes: All DFC Agreements require timely notification within three 

working days to DFC of any incident occurring at the Project site that results in the 

loss of life or that has a material, adverse impact on or poses material risk to the 

environment, Workers, or Project Affected People. Reporting N

These detailed are captured in the DFC legal agreements 

on a Project by Project basis.

319 CSO Group 6.1.3.

●	Environmental, labor, health and safety deficiencies 

identified by the local regulatory authorities as well as 

any remedial actions taken

Tracked Changes: Environmental, labor, health and safety deficiencies identified by 

the local regulatory authorities, labor and social audits conducted, as well as any 

remedial actions taken

Reporting Y Updated Section 6.1.3 to reflect this practice.

320 GLJ-ILRF 4.2.3

For lower risk, category B projects that don’t fall under 

Paragraph 4.2.1. and 4.2.2. above, such as those that 

include modernization and upgrade of existing 

production facilities or no major expansion or 

transformations, a limited or focused environmental and 

social analysis or study may be sufficient. 

We applaud DFC’s attention to employment impacts in its impact-tracking 

mechanisms, specifically the Impact Quotient. Employment impacts, including 

indicators of job quality, are a crucial part of DFC’s overall development impact, 

and positive employment impacts are essential to achieving inclusive development. 

We encourage the DFC to expand on that commitment and require employment 

impacts assessments for all Category B projects. The proposed ESPP currently 

indicates that only some Category B projects will receive a full employment impacts 

assessment (§ 4.2.3). Reporting N

Assessments for impacts and protections of the workforce 

are project and workforce specific. The are also highly 

dependent on contextual, including regulatory, factors.

321 GLJ-ILRF 4.2.3

For lower risk, category B projects that don’t fall under 

Paragraph 4.2.1. and 4.2.2. above, such as those that 

include modernization and upgrade of existing 

production facilities or no major expansion or 

transformations, a limited or focused environmental and 

social analysis or study may be sufficient. 

We encourage DFC to use its data collection and project assessment requirements 

to encourage clients to adopt plans and practices that generate inclusive 

development. For all projects, no matter the category, DFC should require that 

clients present employment impacts assessments before the projects go before the 

Board and on a regular basis thereafter. Reporting N

All Projects are assessed against the requirements of IFC PS 

2.

322 TNC 6.1.3.

All Category A and some Category B Projects are 

required to submit annual environmental and social 

reports. At a minimum, environmental and social reports 

must include information on the following: Progress on implementation of the ESMP? Reporting Y Updated Section 6.1.3 to reflect this practice.

323 CARE 2.0.1.

 Any subsequent revisions to those standards (and any 

underlying standard or guideline) are incorporated into 

this ESPP by reference. 

Should make a note to say that if standards are revised, that the highest/most 

progressive standard will be adhered to. Standards N No change.
324 CARE 2.0.2.

When co-financing Projects with other development 

finance institutions, DFC may apply the standards, in 

whole or in part, (other than the Performance 

Standards), of the respective institution to facilitate DFC 

participation in the transaction. DFC should take the higher of the two standards. Standards N 

The concept is that the highest principle is applied, but we 

do not duplicate standards.

325 CSO Group 2.0.1.

This ESPP adopts, as a standard for the environmental 

and social review process , the International Finance 

Corporation’s (IFC) Performance Standards on Social and 

Environmental Sustainability (Performance Standards), 

and the World Bank Group Environmental, Health and 

Safety (EHS) Guidelines. Any subsequent revisions to 

those standards (and any underlying standard or 

guideline) are incorporated into this ESPP by reference.

Tracked Changes: This ESPP adopts, as a standard for the environmental and social 

review process , the International Finance Corporation’s (IFC) Performance 

Standards on Social and Environmental Sustainability (Performance Standards), and 

the World Bank Group Environmental, Health and Safety (EHS) Guidelines. DFC will 

align with the pro-homine principle of human rights and adopt the policy that is 

most protective of vulnerable groups, specific to each project and context. Any 

subsequent revisions to those standards (and any underlying standard or guideline) 

are incorporated into this ESPP by reference. Standards N

The way DFC is approaching these issues is adequately 

captured across the ESPP, IFC PS, and in guidance/practice.

326 CSO Group 2.0.2.

When co-financing Projects with other development 

finance institutions, DFC may apply the standards, in 

whole or in part, (other than the Performance 

Standards), of the respective institution to facilitate DFC 

participation in the transaction. . In such circumstances, 

DFC may adopt a common approach with co-financiers 

for Project assessment, review, management of 

environmental and social risks and impacts, monitoring, 

and reporting only when that approach is considered 

materially consistent in content and outcomes with the 

ESPP and the Applicable Standards.

Tracked Changes: When co-financing Projects with other development finance 

institutions, DFC may apply the standards, in whole or in part, (other than the 

Performance Standards), of the respective institution to facilitate DFC participation 

in the transaction. However, DFC will always adopt the highest standard, whether 

that is the standard of DFC or a co-financing development institution. In such 

circumstances, DFC may adopt a common approach with co-financiers for Project 

assessment, review, management of environmental and social risks and impacts, 

monitoring, and reporting only when that approach is considered materially 

consistent in content and outcomes with the ESPP and the Applicable Standards. In 

all circumstances, the DFC’s OOA shall be able to receive and address complaints 

concerning co-financed projects. Standards N

No change will be made to this section as the DFC will 

adhere to highest international best practice, and the 

information about the availablility of the IAM is available 

elsewhere in the ESPP. 

327 CSO Group 2.1.1.

In addition to compliance with all applicable laws, at a 

minimum, DFC requires that all Projects meet the 

Performance Standards, applicable EHS Guidelines, and 

Labor Rights. These are collectively referred to as DFC’s 

Applicable Standards. The relevant provisions of this 

ESPP together with the Applicable Standards are referred 

to as DFC’s Environmental and Social Requirements. 

Tracked Changes: In addition to compliance with all applicable laws, at a minimum, 

DFC requires that all Projects and Sub-projects meet the Performance Standards, 

applicable EHS Guidelines, and Labor Rights. Additionally, clients must abide by the 

United Nations Guiding Principles on Business and Human Rights and the OECD 

Guidelines for Multinational Enterprises(5) , and international human rights 

treaties ratified by the country where the client will operate.These are collectively 

referred to as DFC’s Applicable Standards. The relevant provisions of this ESPP 

together with the Applicable Standards are referred to as DFC’s Environmental and 

Social Requirements.

(5)DFC will apply updated versions of these standards as they are issued. Standards N

Thank you for your suggestion. The standards referenced 

in this comment are among those that are considered 

during assessment of proposed projects, where those 

standards may be applicable. 

328 DOL/ILAB 2.0.2.

When co-financing Projects with other development 

finance institutions, DFC may apply the standards, in 

whole or in part, (other than the Performance 

Standards), of the respective institution to facilitate DFC 

participation in the transaction. . In such circumstances, 

DFC may adopt a common approach with co-financiers 

for Project assessment, review, management of 

environmental and social risks and impacts, monitoring, 

and reporting only when that approach is considered 

materially consistent in content and outcomes with the 

ESPP and the Applicable Standards. This could ensure that the more protective of the two approaches applies. Standards N The concept is that the highest principle is applied.

329 GLJ-ILRF 6.0.5.

If DFC identifies deficiencies in performance and/or noncompliance with the Applicable Standards, DFC will work 

with clients to identify recommendations for 

improvements and appropriate corrective measures, in 

the case of non-compliances. If the Client fails to comply 

with the agreed corrective measures, DFC may take such 

action and/or exercise such rights and/or remedies 

contained in the DFC Agreement that it deems 

appropriate (See Para 7.0.3.).

We are also concerned by the absence of a firm deadline for achieving compliance 

with the Applicable Standards. While each project presents its own compliance 

difficulties, the absence of a timeframe deprives compliance efforts of urgency and 

impetus. Projects may cause or contribute to significant harm in a short period of 

time. DFC’s ability to influence the conduct of projects may also wane over time. 

Lacking a compliance deadline, therefore, DFC may find itself associated with 

significant harms without the ability to correct project practices. Such deadlines 

should be published so that stakeholders may contribute to DFC’s assessments of 

projects progress towards or achievement of compliance. Standards N

Details such as timeframes for compliance can be distinct 

from project to project. These types of details with respect 

to the ESPP requirements are established by the 

assessment and captured in the legal agreements.
330 GLJ-ILRF 6.0.5.

If DFC identifies deficiencies in performance and/or noncompliance with the Applicable Standards, DFC will work 

with clients to identify recommendations for 

improvements and appropriate corrective measures, in 

the case of non-compliances. If the Client fails to comply 

with the agreed corrective measures, DFC may take such 

action and/or exercise such rights and/or remedies 

contained in the DFC Agreement that it deems 

appropriate (See Para 7.0.3.).

We believe that is vital that clients understand that projects must comply with all 

the Applicable Standards—not simply those specifically noted in their contracts or 

in environmental and social action plans. We encourage DFC to ensure that clients 

do not misunderstand the scope of their obligations. Standards N

The Applicable Standards that are required for any given 

project are captured in the legal agreement.

331 IRMA 2.4. 2.4.	Supplemental Sector-Specific Requirements 

 p q g p j 

include elaboration of requirements that address the unique impacts of these 

projects, including but not limited to ongoing community and stakeholder 

engagement, human rights due diligence, complaints and grievance mechanisms 

and access to remedy, revenue and payments transparency, ESIA and management 

plans, FPIC, community benefit sharing, gender equality and gender protections, 

resettlement, emergency preparedness and response, planning and financing 

reclamation and closure, labor rights, OHS, community health and safety, ConflictAffected or High-Risk Areas, Security Arrangements, engaging with Artisanal and 

Small-Scale Miners, cultural heritage, waste and materials management, water 

management, air quality, noise and vibration, GHG emissions, biodiversity, 

ecosystem services, and protected areas, and cyanide and mercury management. 

The Initiative for Responsible Mining Assurance (IRMA) Standard for Responsible 

Mining elaborates a robust set of requirements for industrial-scale mining. IRMA is 

in the process of expanding this Standard to include mineral exploration and 

mineral processing. IRMA standards are available at 

https://responsiblemining.net/resources/#resources-standard. 

In addition to including opportunities to integrate nature-based solutions and 

climate adaptation, the sector-specific requirements should cover opportunities to 

integrate circularity. Circularity, in the context of mineral development, can 

embody many different concepts, from striving for zero waste or zero pollution 

systems and closed-loop water and chemical management, to finding ways to repurpose materials that might otherwise become waste (i.e., they become raw 

materials for other purposes), re-mining waste materials, creating energy from 

wastes, utilizing renewable energy sources, capturing carbon dioxide from wastes, 

sequestering carbon in wastes, prioritizing quality equipment to minimize turnover; Standards N

DFC will consider this suggestion and possibly include this 

at a later date.

332 TNC 2.0.2.

When co-financing Projects with other development 

finance institutions, DFC may apply the standards, in 

whole or in part, (other than the Performance 

Standards), of the respective institution to facilitate DFC 

participation in the transaction. . In such circumstances, 

DFC may adopt a common approach with co-financiers 

for Project assessment, review, management of 

environmental and social risks and impacts, monitoring, 

and reporting only when that approach is considered 

materially consistent in content and outcomes with the 

ESPP and the Applicable Standards.

I would articulate a process or some guidance on the process for decided on 

roles/responsibilities here. Who is responsible and when? A determination should 

be made early which entity makes the most sense and is best equipped to manage 

this process for co-financed projects. I would encourage committing to the more 

robust of the available standards wherever possible also. Standards N

This level of detail is captured in Project-specific legal 

agreements.

333 TNC 2.1.2. 

Performance Standard 1 (Assessment and Management 

of Environmental and Social Risks and Impacts) and 

Performance Standard 2 (Labor and Working Conditions) 

are applicable to all Projects and Clients regardless of 

their environmental and social risks and impacts. 

Applicability of the other Performance Standards and 

any other sector-specific requirements is dependent on 

the nature of the Project and its environmental and 

social risks and impacts 

I would not frame as applicability. If you commit to the IFC standards, they are all 

applicable. It is just that in some cases they do not require extensive due diligence 

and safeguarding. Maybe you can say that PS #1 and PS #2 are assessed in a due 

diligence process for all projects instead? Standards N

All of the IFC Performance Standards are potentially 

applicable for a given project; however, not all are always 

actually applicable depending on the nature of the project. 

DFC screens projects against all the IFC PS to determine 

scope of applicability.

334 TNC 2.1.3.

In accordance with the provisions of Performance 

Standard 3 (Resource Efficiency and Pollution 

Prevention), alternative pollution prevention and control 

technologies may be approved, provided that (1) the 

alternative performance levels are consistent with the 

overall requirements of Performance Standard 3; and (2) 

the alternative performance levels are protective of the 

environment and Project Affected People within the Area 

of Influence. Why do you make a special note about PS #3 alternatives and not the rest? Standards N 

There have been advances in control technologies since the 

World Bank EHS guidelines were first issued in 2007. DFC 

wants to reserve the right to consider more advanced 

technologies that may be more effective in addressing 

pollution under PS3.
335 TNC 2.3.2.

Projects that involve new facilities or business activities 

must be designed to meet the Applicable Standards . 

Not clear why only applicable standards need to be applied for new facilities and 

business activities and not also the E&S Requirements. Standards N

Section 2.3.1 states that all projects must meet the 

Environmental and Social Requirements. Section 2.3.2 is 

saying that any physical asset or business activity that will 

be newly designed with DFC support, needs to be designed 

to meet the Applicable Standards from the start. And 

finally, Section 2.3.3 is saying that if DFC support goes 

toward upgrading or improving or otherwise toward 

existing assets or business activities, compliance may be 

reached over time depnding on the specific risk profile.

336 TNC 2.4. 2.4.	Supplemental Sector-Specific Requirements 

Does this imply that PS#3 - PS #10 are supplementals? The applicability of the IFC 

standards is unclear. If PS#1 and PS#2 are the only standards applied for all 

projects, this is not the standard approach of most development banks assessing 

each PS. Standards N

All of the IFC PS are potentially applicable for a given 

project; however, not all are always actually applicable 

depending on the nature of the project. 

337 TNC 3

Objectives: (1) to determine eligibility of the Project and 

Client for DFC support on environmental and social 

grounds; (2) to determine a risk categorization for the 

Project based on the nature and magnitude of 

environmental and social risks and impacts, (3) to 

identify issues to be investigated in detail in the 

environmental and social review process; and (4) to 

determine requirements for documentation, 

consultation, disclosure, monitoring and reporting. 

I would articulate the standard you plan to screen for projects. Screening all PS’s 

for every project? It is hard to tell because earlier you state that PS#1 and PS#2 are 

the only ones that always apply. Standards N

All of the IFC PS are potentially applicable for a given 

project; however, not all are always actually applicable 

depending on the nature of the project.

338 GLJ-ILRF 6.1.6.

Clients are required to retain the rights afforded under 

each investment structure, to ensure that DFC has the 

rights to (1) visit and inspect Project site(s); (2) access 

Project and Subproject environmental and social 

performance monitoring records, including human 

resources records; and (3) meet with Project and 

Subproject management and Project Affected People, 

including Workers.

In our experience, many businesses receive development financing without a 

sufficient

understanding of their environmental and social obligations and without adequate 

preparations for implementing their commitments. This has presented a 

particularly critical impediment to

achieving compliance where clients contract away authority to manage and/or 

operate parts of the projects to other firms who have not engaged with DFC staff 

or made clear commitments to ESPP compliance. To address those risks, we believe 

DFC should require its clients, in their project-related contracting, to retain the 

authority to achieve compliance with ESPP requirements. Alternatively, DFC could 

require that clients include ESPP compliance as a material requirement of their 

contracting with businesses working on DFC-supported projects (§ 6.1.6). Standards, Contracts N

As a general rule when projects involve significant (in time 

or materiality) contractors and subcontractors DFC flows 

down the compliance clauses highlighted in the comment. 

See Section 7.0.5 for this commitment.

339 GLJ-ILRF 6.0.5.

If DFC identifies deficiencies in performance and/or noncompliance with the Applicable Standards, DFC will work 

with clients to identify recommendations for 

improvements and appropriate corrective measures, in 

the case of non-compliances. If the Client fails to comply 

with the agreed corrective measures, DFC may take such 

action and/or exercise such rights and/or remedies 

contained in the DFC Agreement that it deems 

appropriate (See Para 7.0.3.).

In the ESPP, we encourage DFC to provide more detail concerning the contractual 

remedies available to DFC in case of noncompliance. Doing so will highlight the 

consequences of noncompliance and encourage project teams to take compliance 

obligations seriously and plan accordingly (§ 6.0.5). Standards, Contracts N

DFC includes provisions for non-compliance with elements 

of the ESPP in each of its project contracts, and contractual 

terms may vary by project. 

340 TNC 2.4.

Supplemental standards may include (1) relevant and 

applicable U.S. federal standards; (2) standards issued 

by other international organizations relating to public 

health, safety, and the environment such as those from 

the World Health Organization, the International 

Maritime Organization, the Food and Agriculture 

Organization, or the International Civil Aviation 

Organization ; and (3) standards of best practice 

developed by governments, other development finance 

institutions, industry associations, or non-governmental 

organizations. What about human rights? 

Standards, Human 

Rights N 

DFC considers human rights within the scope of the IFC 

Performance Standards and would not consider human 

rights as a separate, supplemental standard. 
341 DOL/ILAB 2.4.

Supplemental standards may include (1) relevant and 

applicable U.S. federal standards; (2) standards issued 

by other international organizations relating to public 

health, safety, and the environment such as those from 

the World Health Organization, the International 

Maritime Organization, the Food and Agriculture 

Organization, or the International Civil Aviation 

Organization ; and (3) standards of best practice 

developed by governments, other development finance 

institutions, industry associations, or non-governmental 

organizations. 

Suggest adding the ILO, which could include sectoral Codes of Practice, or sectorspecific conventions and recommendations.

Code of Practice (Safety and health at work) (ilo.org) 

Sectoral standards (SECTOR) (ilo.org) Standards, OHS Y Please see addition in Section 2.4.

342 CSO Group 1.1.

This ESPP does not apply to DFC’s technical assistance 

activities. TA N The ESPP does not apply to Technical Assitance activities.

343 CSO Group

Cover 

letter

2)	Scope: Section 1.1 limits the scope of the ESPP, stating that it does not apply to 

DFC’s technical assistance activities. Technical assistance activities lead to the 

design and implementation of projects and can cause harm to project-affected 

communities. Several complaints have been filed to DFIs’ accountability 

mechanisms concerning the environmental and social impacts of technical 

assistance projects. To prevent harm, the ESPP should apply to all of DFC’s 

activities, including technical assistance. TA N The ESPP does not apply to Technical Assistance activities.