IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION ACCELERATING CRITICAL FUNCTIONS IMPACT MOBILIZING INVESTMENT AT SCALE IFC ANNUAL REPORT 2024 IFC 2024 Cover: Photo by Dorte Verner (DorteVerner.com). ANNUAL REPORT The photograph shows Muria women dancing in Chhattisgarh, India. LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION CRITICAL FUNCTIONS CONTENTS 2 Letter from the IFC Board 4 Message from Ajay Banga, World Bank Group President 6 Letter from Makhtar Diop, IFC Managing Director 8 IFC FY24: From Investment to Impact 11 Our Management Team 12 Becoming a Better Bank RESULTS 14 World Bank Group 2024 Summary Results 16 IFC 2024 Year in Review STRATEGY IN ACTION 20 Accelerating Impact 22 Unlocking Capital 34 Pathways to Prosperity Above: Artist’s rendering of the world’s largest 46 Reimagining Development Finance electric ferry, which will offer climate-friendly service between Argentina and Uruguay when CRITICAL FUNCTIONS it launches in late 2025. Financed by IFC and Banco Santander Uruguay, the Buquebus 54 Measuring Up vessel will carry 2,100 passengers and offset 58 Sustainability the equivalent of more than 37,000 tons of 60  Accountability and Oversight carbon dioxide emissions each year, becoming 62  Diversity, Equity, and Inclusion the first e-ferry in emerging economies and Uruguay’s first blue finance transaction. 63 Auditor’s Report Additional information is available on our website: www.ifc.org/AnnualReport. ABOUT IFC IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES Letter from the IFC Board Message from Ajay Banga, IFC — a member of the World Bank Group — is the largest World Bank Group President Letter from Makhtar Diop, global development institution focused on the private sector IFC Managing Director in emerging markets. We work in more than 100 developing IFC FY24: From Investment to Impact Our Management Team countries, using our capital, mobilization capacity, Becoming a Better Bank expertise, and influence to create jobs and raise living RESULTS STRATEGY IN ACTION standards for people. In fiscal year 2024, IFC committed CRITICAL FUNCTIONS a record $56 billion to private companies and financial institutions, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org. IFC ANNUAL REPORT 2024  1 IFC BOARD IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES LETTER FROM THE IFC BOARD Letter from the IFC Board Message from Ajay Banga, World Bank Group President Letter from Makhtar Diop, IFC Managing Director In fiscal 2024, the World Bank Group Boards of Investment Bank, the European Bank for Reconstruction goals requires the unwavering commitment of current and Executive Directors supported the institution’s ongoing and Development, the Inter-American Development Bank, new donors, client countries, and the World Bank. IFC FY24: From Investment to Impact efforts to become a better Bank. These operational and the Islamic Development Bank); and streamlined the Our Management Team enhancements are both timely and necessary: While implementation of the World Bank’s Environmental and IBRD has made significant progress in enhancing its Becoming a Better Bank economic growth prospects for the near term have Social Framework. financial capacity while continuing to protect its triple-A improved slightly, easing fears of a global recession, rating and long-term financial stability. New financial RESULTS the post-pandemic recovery remains weak in many Executive Directors commend the Bank Group’s instruments — such as hybrid capital, a portfolio STRATEGY IN ACTION developing countries, and pre-existing social stresses commitment to devote 45 percent of annual financing guarantee platform, and the Livable Planet Fund — have CRITICAL FUNCTIONS endure. The world is increasingly unlikely to achieve to climate action by 2025, deployed equally between been approved, and contributions have already been the 2030 Sustainable Development Goals, and climate mitigation and adaptation. IFC and MIGA will intensify pledged by some Bank Group shareholders. The Board change, biodiversity loss, and escalating geopolitical efforts to boost private sector financing for climate recently approved the Framework for Financial Incentives, tensions further threaten development. To help countries adaptation. Executive Directors also applaud the Bank which will encourage IBRD countries to boost investments address these intertwined challenges, the World Bank Group’s 2030 commitments to provide electricity access in global challenges with cross-border impact. Progress Group committed $117.5 billion (including $37.6 billion to 300 million people in Africa in partnership with the has been made toward enhancing the value of callable from IBRD, $31.2 billion from IDA, $31.7 billion from IFC, African Development Bank and to provide quality, capital. In addition, IFC and MIGA are expanding their $8.2 billion from MIGA, and $8.9 billion in recipient- affordable healthcare to 1.5 billion people. investment and guarantee offerings, including new executed disbursing activities) in fiscal 2024. instruments to mobilize private capital. Executive The Bank Group is enhancing its financing model to Directors look forward to the further operationalization The 2023 Annual Meetings marked an important create safer, more prosperous communities in low-income of the Loss and Damage Fund, which is expected to be milestone for the World Bank Group as Development countries. Since the 2023 Annual Meetings, the Bank a significant resource in assisting developing nations Committee members endorsed the institution’s new vision Group has raised funds for the IDA Crisis Facility and affected by natural disasters linked to climate change. of a world free of poverty on a livable planet. Since then, maintained IDA’s financial capacity of $30 billion per the Bank Group has implemented core reforms to build a year for fiscal 2024 and 2025. Bank Group management Executive Directors welcome the Bank Group’s deepening better Bank, including enhancing its financial capacity; has proposed enhancements to IDA’s Capital Adequacy partnerships with multilateral development banks and reinforcing its emphasis on results; and improving its Framework that are expected to expand IDA’s financing the private sector. The One World Bank Group Partnership operational effectiveness and efficiency. The Bank by $20 billion through fiscal 2037. Executive Directors Charter, published in May 2024, highlights the principles Group has also developed a new Scorecard and crisis anticipate the funding generated by these measures, that define our work with partners and restates our preparedness and response tools; launched the Global coupled with strong donor contributions for the December vision of the partner we aspire to be. The Private Sector Challenge Programs and World Bank Group Guarantee 2024 IDA replenishment, will improve lives and equip Investment Lab, launched in June 2023, is working to Platform; developed a Knowledge Compact; forged nations to tackle immediate crises and long-term address the barriers preventing private sector investment four new partnerships (with the Asian Infrastructure development goals. Beyond financing, achieving these in emerging markets. IFC ANNUAL REPORT 2024  2 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES Letter from the IFC Board Message from Ajay Banga, World Bank Group President Letter from Makhtar Diop, IFC Managing Director Through travel to several client countries this year, Executive Directors witnessed the Bank Group’s impact IFC FY24: From Investment to Impact firsthand. During trips to Saudi Arabia (December Our Management Team 2023); China, Fiji, and Samoa (January–February 2024); Becoming a Better Bank Kazakhstan, Kyrgyz Republic, and Tajikistan (March 2024); and Kenya and Estonia (May 2024), Board RESULTS members engaged with key government officials, STRATEGY IN ACTION private sector representatives, Bank Group staff, CRITICAL FUNCTIONS beneficiaries of Bank Group operations, donors, and Seated (left to right): Standing (left to right): other pertinent stakeholders. Parameswaran Iyer Junhong Chang Daniel Pierini Il Young Park Looking ahead to fiscal 2025, the Executive Directors and India China (Co-Dean) Argentina Korea (Republic of) management remain committed to sharpening the Bank Abdulaziz Al Mulla Dominique Favre Lene Lind Hayrettin Demircan Group’s approach to better serve people in low-income Kuwait Switzerland Norway Türkiye countries. The Executive Directors extend their gratitude Ernesto Acevedo Ayanda Dlodlo Katharine Rechico Wempi Saputra to Ajay Banga for his leadership in spearheading the Mexico South Africa Canada Indonesia evolution of the Bank Group, and sincerely thank all staff Felice Gorordo Abdoul Salam Bello Suhail Saeed Eugene Rhuggenaath across the institution for their continued hard work and United States (Alternate Niger Saudi Arabia Netherlands unwavering commitment to the mission of ending poverty Executive Director) Arnaud Buissé Michael Krake Roman Marshavin on a livable planet. Vel Gnanendran France Germany Russian Federation United Kingdom Marcos Chiliatto Tauqir Shah Matteo Bugamelli Brazil Pakistan Italy (Dean) Hideaki Imamura Japan Floribert Ngaruko Burundi IFC ANNUAL REPORT 2024  3 MESSAGE FROM THE PRESIDENT IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES Letter from the IFC Board Message from Ajay Banga, World Bank Group President DELIVERING ON OUR COMMITMENTS Letter from Makhtar Diop, REQUIRES US TO DEVELOP NEW AND IFC Managing Director BETTER WAYS OF WORKING. IN FISCAL 2024, WE DID JUST THAT. IFC FY24: From Investment to Impact Our Management Team Becoming a Better Bank AJAY BANGA clients, public and private, by making our wealth of RESULTS development knowledge more accessible. And we have STRATEGY IN ACTION reorganized the World Bank’s global practices into five Vice Presidency units — People, Prosperity, Planet, CRITICAL FUNCTIONS Infrastructure, and Digital — for more flexible and faster engagements with clients. Each of these units reached important milestones in fiscal 2024. We are supporting countries in delivering quality, affordable health services to 1.5 billion people by 2030 so our children and grandchildren will lead healthier, better lives. This is part of our larger global effort to provide a In fiscal 2024, the World Bank Group adopted a bold basic standard of care through every stage of a person’s new vision of a world free of poverty on a livable planet. life — infancy, childhood, adolescence, and adulthood. To To achieve this, the Bank Group is enacting reforms to help people withstand food-affected shocks and crises, become a better partner to governments, the private we are strengthening social protection services to support sector, and, ultimately, the people we serve. Rarely in half a billion people by the end of 2030 — aiming for half our 80-year history has our work been more urgent: We of these beneficiaries to be women. face declining progress in our fight against poverty, an existential climate crisis, mounting public debt, food We are helping developing countries create jobs and insecurity, an unequal pandemic recovery, and the employment, the surest enablers of prosperity. In the effects of geopolitical conflict. next 10 years, 1.2 billion young people across the Global South will become working-age adults. Yet, in the same Responding to these intertwined challenges requires period and the same countries, only 424 million jobs are a faster, simpler, and more efficient World Bank expected to be created. The cost of hundreds of millions Group. We are refocusing to confront these challenges of young people with no hope for a decent job or future not just through funding, but with knowledge. Our is unimaginable, and we are working urgently to create Knowledge Compact for Action, published in fiscal opportunity for all. 2024, details how we will empower all Bank Group IFC ANNUAL REPORT 2024  4 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES Letter from the IFC Board Planet Fund demonstrate how we are modernizing our Message from Ajay Banga, approach to better drive impact and outcomes. Our new World Bank Group President Scorecard radically changes how we track results. Letter from Makhtar Diop, IFC Managing Director But we cannot enable development on our own. We need partners from both the public and private IFC FY24: From Investment to Impact sectors to join our efforts. That’s why we are working Our Management Team closely with other multilateral development banks to improve the lives of people in developing countries in Becoming a Better Bank tangible, measurable ways. Our deepening relationship RESULTS with the private sector is evidenced by our Private STRATEGY IN ACTION Sector Investment Lab, which is working to address the barriers preventing private sector investment in emerging CRITICAL FUNCTIONS markets. The Lab’s core group of 15 Chief Executive Officers and Chairs meets regularly, and already has informed our work — most notably with the development of the World Bank Group Guarantee Platform. The impact and innovations we delivered this year will allow us to move forward with a raised ambition and a In response to climate change — arguably the greatest Recognizing that digitalization is the transformational greater sense of urgency to improve people’s lives. I would challenge of our generation — we’re channeling 45 opportunity of our time, we are collaborating with like to recognize the remarkable efforts of our staff and percent of annual financing to climate action by 2025, governments in more than 100 developing countries to Executive Directors, as well as the unwavering support of deployed equally between mitigation and adaptation. enable digital economies. Our digital lending portfolio our clients and partners. Together, we head into fiscal Among other efforts, we intend to launch at least 15 totaled $5.6 billion in commitments as of June 2024; and 2025 with a great sense of optimism — and determination country-led methane-reduction programs by fiscal our new Digital Vice Presidency unit will lead our efforts to create a better Bank for a better world. 2026, and our Forest Carbon Partnership Facility has to establish the foundations of a digital economy. Key helped strengthen high-integrity carbon markets. initiatives include building and enhancing digital and data infrastructure, ensuring cybersecurity and data privacy AJAY BANGA Access to electricity is a fundamental human right and for institutions, businesses, and citizens, and advancing President of the World Bank Group foundational to any successful development effort. It digital government services. and Chairman of the Board of Executive Directors will accelerate the digital transformation in developing countries, strengthen public infrastructure, and prepare Delivering on our commitments requires us to develop people for the jobs of tomorrow. But half the population new and better ways of working. In fiscal 2024, we of Africa — 600 million people — lacks access to did just that. We are squeezing our balance sheet electricity. In response, we have committed to provide and finding new opportunities to take more risk and electricity to 300 million people in Sub-Saharan Africa by boost our lending. Our new crisis preparedness and 2030 in partnership with the African Development Bank. response tools, Global Challenge Programs, and Livable IFC ANNUAL REPORT 2024  5 LETTER FROM IFC MANAGING DIRECTOR IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES Letter from the IFC Board Message from Ajay Banga, World Bank Group President Letter from Makhtar Diop, IFC Managing Director IN FISCAL 2024, WE PUSHED IFC FY24: From Investment to Impact Our Management Team BOUNDARIES, SET NEW Becoming a Better Bank RECORDS, AND PIONEERED RESULTS INNOVATIVE APPROACHES STRATEGY IN ACTION CRITICAL FUNCTIONS TO MOBILIZE PRIVATE CAPITAL WHERE IT’S NEEDED MOST. WORKING AS ONE WORLD BANK GROUP, WE BROUGHT OUR COLLECTIVE RESOURCES TOGETHER TO MAKE A DIFFERENCE FOR THE PEOPLE WE SERVE. MAKHTAR DIOP IFC ANNUAL REPORT 2024  6 WE’RE POISED TO IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES UNLOCK THE FULL Letter from the IFC Board POTENTIAL OF THE PRIVATE SECTOR Message from Ajay Banga, World Bank Group President Letter from Makhtar Diop, IFC Managing Director TO CREATE JOBS IFC FY24: From Investment to Impact AND BUILD A MORE Our Management Team SUSTAINABLE AND Becoming a Better Bank RESULTS INCLUSIVE GLOBAL STRATEGY IN ACTION ECONOMY. CRITICAL FUNCTIONS With an all-time record of $56 billion in succeed, even in the most challenging markets. The challenges ahead are substantial. But so is our investments — including over $22 billion mobilized Our upstream sector and project development commitment to improve people’s lives. Working in from partners — we continued to amplify private work is helping us unlock new markets and build concert as one World Bank Group and with our growing sector impact across key development areas. Our a robust pipeline of bankable opportunities. network of partners, we’re poised to unlock the full efforts contributed to progress in climate action, potential of the private sector to create jobs and build gender equality, digital transformation, and other As a catalyst, we’re proving the business case a more sustainable and inclusive global economy. critical domains that shape global prosperity. for tackling persistent development challenges. We are leveraging our experience to share As you read this report, I hope you’ll see not just We are evolving to deliver on our mission. knowledge and enhance understanding of risks what we’ve accomplished, but the immense and opportunities across the markets where ambition for the future as we continue to As an investor, we’re reshaping what’s possible in we work. From climate-smart agriculture to accelerate private sector solutions to the world’s emerging markets. Our innovative platforms are affordable healthcare, we’re demonstrating most pressing development challenges. channeling capital into critical areas like sustainable that profit and purpose can align at scale. infrastructure and digital connectivity in places often MAKHTAR DIOP considered too risky or complex for private investment. The stories in this report aren’t just highlights; Managing Director they’re harbingers of transformative change. They Our role as a partner is moving beyond traditional show how we’re accelerating impact across diverse advisory services. Now more than ever, we’re sectors and geographies, setting the stage for serving as architects of opportunity, creating even greater achievements in the years to come. environments where private sector solutions can IFC ANNUAL REPORT 2024  7 IFC 2024 ANNUAL REPORT FROM INVESTMENT TO IMPACT INVESTMENT IFC’S LEADERSHIP PERSPECTIVES $56B Letter from the IFC Board Message from Ajay Banga, RECORD- World Bank Group President Letter from Makhtar Diop, IFC Managing Director IFC FY24: From Investment to Impact Our Management Team BREAKING YEAR Becoming a Better Bank RESULTS TOTAL COMMITMENTS STRATEGY IN ACTION CRITICAL FUNCTIONS INCLUDING IFC’s FY24 performance demonstrates our unparalleled ability to mobilize private sector solutions for development. $18B $5.8B $6.8B $19B INVESTED IN LOW- IN LOCAL CURRENCY INVESTMENT IN CLIMATE This year’s exceptional results build on INCOME AND FRAGILE FINANCING ACROSS IN PROJECTS FINANCING AND CONFLICT-AFFECTED 34 CURRENCIES AND CO-DEVELOPED our long-standing commitment to ECONOMIES 118 PROJECTS BY IFC create opportunities and improve people’s lives in emerging markets. Our investments continue to generate significant, lasting impact across key aspects of development. $22.5B MOBILIZED FROM OTHERS, INCLUDING $4.8B THROUGH PUBLIC-PRIVATE PARTNERSHIPS IFC ANNUAL REPORT 2024  8 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES ANTICIPATED IMPACT OF IFC’S PORTFOLIO* Letter from the IFC Board Message from Ajay Banga, World Bank Group President WATER AND SANITATION CLIMATE ACTION FINANCIAL INCLUSION GENDER Letter from Makhtar Diop, IFC Managing Director IFC FY24: From Investment to Impact Our Management Team Becoming a Better Bank RESULTS STRATEGY IN ACTION CRITICAL FUNCTIONS 15M PEOPLE PROVIDED WITH WATER, 69M TONS OF GREENHOUSE GAS EMISSIONS 152M PEOPLE AND BUSINESSES USING 28M PEOPLE BENEFITING FROM ACTIONS SANITATION, AND HYGIENE REDUCED PER YEAR FINANCIAL SERVICES TO ADVANCE GENDER EQUALITY INFRASTRUCTURE FOOD SECURITY DIGITAL TRANSFORMATION 164M PEOPLE WITH ACCESS TO ELECTRICITY 52M PEOPLE WITH STRENGTHENED FOOD 174M PEOPLE USING DIGITALLY AND NUTRITION SECURITY ENABLED SERVICES *These anticipated impact figures represent the stock of expected results from IFC’s investment portfolio, aligned with the World Bank Group’s Corporate Scorecard. They reflect the ongoing, long-term effects of our investments across multiple years, in line with WBG’s new reporting system. See more at: https://scorecard.worldbank.org IFC ANNUAL REPORT 2024  9 WE PUSHED BOUNDARIES, IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES Letter from the IFC Board SET NEW RECORDS, AND Message from Ajay Banga, PIONEERED INNOVATIVE APPROACHES TO MOBILIZE World Bank Group President Letter from Makhtar Diop, IFC Managing Director IFC FY24: From Investment to Impact PRIVATE CAPITAL. Our Management Team Photo: IFC and the European Bank for Reconstruction and Becoming a Better Bank Development are helping Serbia boost its renewable energy production by financing the Cibuk 1 wind farm. RESULTS STRATEGY IN ACTION CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  10 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES Letter from the IFC Board Message from Ajay Banga, World Bank Group President Letter from Makhtar Diop, Makhtar Diop IFC Managing Director Managing Director IFC FY24: From Investment to Impact Our Management Team Becoming a Better Bank RESULTS STRATEGY IN ACTION OUR CRITICAL FUNCTIONS MANAGEMENT TEAM Elena Bourganskaia Vice President, Corporate Support Hela Cheikhrouhou Regional Vice President, Middle East, Central Asia, Federico Galizia Vice President, Risk and Finance John Gandolfo Vice President, Treasury & Mobilization Mohamed Gouled Vice President, Industries Türkiye, Afghanistan and IFC’s Management Team is focused on meeting Pakistan our client needs and maximizing the development impact of our work. It brings together years of development experience, a broad array of expertise, and diverse cultural perspectives. Susan M. Lund Alfonso Garcia Mora Mary-Jean Moyo Ramit Nagpal Emmanuel Nyirinkindi Vice President, Regional Vice President, Chief of Staff Vice President and Vice President, Economics and Private Europe, Latin America General Counsel, Legal, Cross-Cutting Solutions Sector Development and the Caribbean Institutional Risk & Governance Sérgio Pimenta Riccardo Puliti Regional Vice President, Regional Vice President, Africa Asia and the Pacific IFC ANNUAL REPORT 2024  11 BECOMING A IFC 2024 ANNUAL REPORT BETTER BANK LEADERSHIP PERSPECTIVES Letter from the IFC Board Message from Ajay Banga, World Bank Group President Letter from Makhtar Diop, IFC Managing Director IFC FY24: From Investment to Impact THE WORLD IS CONFRONTING Our Management Team A SET OF INTERTWINED CHALLENGES — POVERTY, THE Becoming a Better Bank CLIMATE CRISIS, DEBT, FOOD RESULTS INSECURITY, PANDEMICS, AND STRATEGY IN ACTION FRAGILITY — AND A NEED TO ACCELERATE ACCESS TO CLEAN CRITICAL FUNCTIONS AIR, ENERGY, AND WATER. TIME IS OF THE ESSENCE. FINANCIAL WORLD BANK GROUP We need a better Bank to address INNOVATIONS GUARANTEE PLATFORM these challenges and the challenges Our new financial instruments are designed This new platform is delivering simplicity of tomorrow. to boost lending capacity and enable the and improved access to our guarantee World Bank Group to take on more risk for products, putting us on a path to boost our shared global challenges. We’ve squeezed PRIVATE SECTOR The G20 Leaders requested the World annual guarantee issuance to $20 billion $40 billion over 10 years from our balance INVESTMENT LAB Bank Group to change and be a more by 2030 — and multiply our mobilization of sheet by adjusting our loan-to-equity ratio. The Private Sector Investment Lab is a private capital many times. significant part of the solution. In We’ve launched a hybrid-capital instrument. collaborative initiative between the World response, we raised our ambition for Our Livable Planet Fund, launched in April Bank Group and directors of leading global speed, simplicity, better leveraging our 2024, offers governments, philanthropies, private sector institutions. Its goal is to and other partners an opportunity to develop solutions that address existing balance sheet, and engaging partners contribute to our concessional resources for and the private sector. Here’s how we are barriers to private sector investment middle-income countries. enhancing our approach: in emerging markets and developing economies. The Lab’s core group of 15 CEOs and Chairs have delivered recommendations on regulatory certainty, increased use of guarantees, foreign-exchange-risk mitigation, and increased use of originate- to-distribute models for mobilization of private capital. Their feedback has already informed the development of the World Bank Group Guarantee Platform. IFC ANNUAL REPORT 2024  12 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES Letter from the IFC Board Message from Ajay Banga, World Bank Group President Letter from Makhtar Diop, IFC Managing Director IFC FY24: From Investment to Impact Our Management Team Becoming a Better Bank RESULTS STRATEGY IN ACTION CRITICAL FUNCTIONS KNOWLEDGE BANK CRISIS PREPAREDNESS Knowledge has been critical to the AND RESPONSE TOOLKIT World Bank Group for 80 years, and we The World Bank Group is rolling out an are refocusing ourselves not just as a expanded Crisis Preparedness and Response GLOBAL EMERGING WORLD BANK GROUP funding mechanism, but also as a source Toolkit to help developing countries better MARKETS RISK DATABASE SCORECARD of knowledge. To do this, we are bringing respond to crises and build resilience (GEMS) CONSORTIUM experts to the forefront of our country- Accountability and focus underpin all our against future shocks. Climate Resilient The GEMs Consortium comprises work. Our new Scorecard is a yardstick of driven model, working with governments Debt Clauses allow small states to prioritize 25 multilateral development banks and accountability and a cornerstone of our to craft focused development plans that disaster recovery over debt repayment when development finance institutions. The World efforts for greater efficiency, impact, and marry their ambition and our expertise. The catastrophes hit. Bank Group and the GEMs Consortium are results. This tool allows our shareholders and Knowledge Compact for Action details this driving transparency and mobilizing private taxpayers to clearly see the impact we are approach, with a focus on four areas: new investment in emerging markets by releasing making, rewarding their trust. and updated knowledge products, strategic comprehensive credit risk data. partnerships, enhanced learning, and cutting-edge systems. IFC ANNUAL REPORT 2024  13 WORLD BANK GROUP IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS World Bank Group 2024 Summary Results 2024 SUMMARY RESULTS Global Commitments World Bank Group institutions $117.5B World Bank Group financing for partner countries IFC 2024 Year in Review GLOBAL Financial Highlights COMMITMENTS Operational Highlights In fiscal 2024, the World Bank Group FY24 Long-Term Commitments provided much-needed financing, FY24 Portfolio Exposure conducted research and analysis, and IFC’s Largest Country Exposures partnered with governments, the private FY24 Long-Term Commitments by sector, and other institutions to address Environmental and global development challenges. (BILLION) Social Category FY24 Advisory Services in loans, grants, equity investments, and guarantees Program Expenditures to partner countries and private businesses STRATEGY IN ACTION CRITICAL FUNCTIONS Total includes multiregional and global operations. Regional totals reflect IFC commitments that were recalculated to match the World Bank’s regional classifications by aggregating country-level commitments within each World Bank region. LATIN AMERICA MIDDLE EAST EAST ASIA AND EUROPE AND AND THE AND NORTH AFRICA PACIFIC CENTRAL ASIA CARIBBEAN AFRICA SOUTH ASIA GLOBAL $38.0B $12.5B $24.7B $19.4B $6.5B $15.9B $0.4B (BILLION) (BILLION) (BILLION) (BILLION) (BILLION) (BILLION) (BILLION) IFC ANNUAL REPORT 2024  14 IFC 2024 World Bank Group institutions World Bank Group financing for partner countries ANNUAL REPORT By fiscal year, millions of dollars The World Bank Group is one of the LEADERSHIP PERSPECTIVES world’s largest sources of funding and 2024 2023 2022 2021 2020 RESULTS knowledge for developing countries. Its five World Bank Group World Bank Group 2024 institutions share a commitment to reducing Commitments a 117,492 128,341 104,370 98,830 83,547 Summary Results poverty, increasing shared prosperity, and Disbursements b 89,000 91,391 67,041 60,596 54,367 Global Commitments promoting sustainable development. IBRD World Bank Group institutions Commitments c 37,568 38,572 33,072 30,523 27,976 International Bank for Reconstruction Disbursements 33,450 25,504 28,168 23,691 20,238 World Bank Group financing for and Development (IBRD) partner countries Provides financial products and policy advice to help IDA countries reduce poverty and extend the benefits of Commitments c,d 31,195 34,245 37,727 36,028 30,365 IFC 2024 Year in Review sustainable growth to all their people. Disbursements d 28,247 27,718 21,214 22,921 21,179 Financial Highlights International Development Association (IDA) IFC Operational Highlights Provides concessional grants and loans to the Commitments e 31,654 27,704 22,229 20,669 17,604 FY24 Long-Term Commitments governments of the world’s 75 poorest countries. Disbursements 19,147 18,689 13,198 11,438 10,518 FY24 Portfolio Exposure International Finance Corporation (IFC) MIGA IFC’s Largest Country Exposures Provides loans, guarantees, equity, advisory services, Gross issuance 8,204 6,446 4,935 5,199 3,961 FY24 Long-Term Commitments by project development services, and mobilizes additional Environmental and capital from other sources to grow private sector Recipient-Executed Disbursing Activities Social Category investment in developing countries. Commitments 8,871 21,374 6,407 6,411 3,641 FY24 Advisory Services Disbursements 8,156 19,480 4,461 2,546 2,433 Multilateral Investment Program Expenditures Guarantee Agency (MIGA)  ncludes IBRD, IDA, IFC, Recipient-Executed Disbursing Activities (REDA) commitments, and MIGA gross issuance. REDA commitments include all a. I STRATEGY IN ACTION Provides guarantees against non-commercial risks to recipient-executed grants; hence, total World Bank Group commitments differ from the amount reported in the Scorecard, which includes only a subset of trust-funded activities. REDA Commitments reported are Gross Grant Approved amounts. CRITICAL FUNCTIONS facilitate the flow of foreign investment in developing b. Includes IBRD, IDA, IFC, and REDA disbursements. countries. c. Amounts are net of full terminations and cancellations relating to commitments approved in the same fiscal year. d. Commitments and disbursements exclude IDA-IFC-MIGA Private Sector Window activities. International Centre for Settlement of  ncludes long-term commitments for IFC’s own account and short-term finance commitments. Does not include funds mobilized e. I Investment Disputes (ICSID) from other investors. Provides international facilities for conciliation, mediation, and arbitration of investment disputes. IFC ANNUAL REPORT 2024  15 IFC 2024 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS World Bank Group 2024 Summary Results YEAR IN REVIEW Global Commitments World Bank Group institutions World Bank Group financing for partner countries IFC 2024 Year in Review Financial Highlights Operational Highlights FY24 Long-Term Commitments FY24 Portfolio Exposure Financial Highlights Dollars in millions, as of and for the years ended June 30 IFC’s Largest Country Exposures 2024 2023 2022 FY24 Long-Term Commitments by Environmental and NET INCOME (LOSS) $ 1,485 $ 672 $ (464) Social Category CONSOLIDATED BALANCE SHEET HIGHLIGHTS Total assets $ 108,187 $ 110,547 FY24 Advisory Services Investments 58,747 51,502 Program Expenditures STRATEGY IN ACTION Key Financial Ratios Overall liquidity ratio 81.0% 103.8% CRITICAL FUNCTIONS Debt-to-equity ratio 1.7 1.6 Total reserve against losses on loans to total disbursed portfolio 2.9% 3.7% CAPITAL MEASURES Capital available ($ in billions) 36.6 34.8 Capital required ($ in billions) 22.2 21.1 Capital utilization ratio1 60.5% 60.7% 1. Starting in FY22, IFC began using Capital Utilization Ratio (CUR), defined as (Capital Required divided by Capital Available), as a measurement of capital adequacy under IFC’s updated capital adequacy framework. The CUR replaces the previous Deployable Strategic Capital (DSC) ratio. CUR and DSC ratio have a one-to-one mapping expressed as (CUR = 90% – DSC ratio). IFC ANNUAL REPORT 2024  16 IFC 2024 ANNUAL REPORT Operational Highlights Dollars in millions, for the years ended June 30 LEADERSHIP PERSPECTIVES 2024 2023 2022 2021 2020 RESULTS World Bank Group 2024 Investment Commitments 1 $ 56,087 $ 43,728 $ 33,592 $ 31,803 $ 28,616 Summary Results Long-Term Investment Commitments Global Commitments FOR IFC’S OWN ACCOUNT $ 21,458 $ 16,677 $ 12,569 $ 12,474 $ 11,135 World Bank Group institutions Number of projects 365 325 296 313 282 World Bank Group financing for Number of countries 67 78 68 71 67 partner countries MOBILIZATION 2.3 $ 22,504 $ 15,029 $ 10,596 $ 10,831 $ 10,826 Syndications $ 8,079 $ 6,165 $ 3,475 $ 3,647 $ 5,008 IFC 2024 Year in Review Advisory & Upstream $ 4,708 $ 3,687 $ 3,534 $ 3,246 $ 2,202 Financial Highlights Anchor Investments $ 4,202 $ 1,580 $ 1,140 $ 1,492 $ 259 Operational Highlights Third-party-managed Funds $ 2,720 $ 1,142 – – $ 324 Trade Finance $ 1,824 $ 2,163 $ 2,041 $ 1,920 $ 2,143 FY24 Long-Term Commitments Guarantees $ 600 – – – – FY24 Portfolio Exposure Other Products $ 354 $ 277 $ 157 $ 281 $ 840 IFC’s Largest Country Exposures IFC-Managed Funds $ 16 $ 14 $ 248 $ 244 $ 50 TOTAL LONG-TERM INVESTMENT COMMITMENTS $ 43,962 $ 31,705 $ 23,166 $ 23,305 $ 21,961 FY24 Long-Term Commitments by Environmental and Short-Term Investment Commitments Social Category For IFC’s own account 4 $ 10,196 $ 11,027 $ 9,659 $ 8,195 $ 6,469 FY24 Advisory Services Mobilization $ 1,929 $ 996 $ 767 $ 303 $ 186 Program Expenditures TOTAL SHORT-TERM INVESTMENT COMMITMENTS $ 12,125 $ 12,023 $ 10,426 $ 8,498 $ 6,655 STRATEGY IN ACTION Investment Disbursements 1. Investment Commitments include Long-Term Investment CRITICAL FUNCTIONS For IFC’s account $ 19,147 $ 18,689 $ 13,198 $ 11,438 $ 10,518 Commitments and Short-Term Investment Commitments. Syndicated loans $ 1,722 $ 2,443 $ 2,589 $ 1,309 $ 2,231 2. Defined as "core mobilization" — Non-IFC financing or risk sharing arranged on commercial terms due to the active and direct TOTAL INVESTMENT DISBURSEMENTS $ 20,869 $ 21,132 $ 15,787 $ 12,747 $ 12,749 involvement of IFC for the benefit of a client. Excludes $1,604 million of unfunded risk transfers that are accounted for under IFC’s own Portfolio Exposure 5 account. 3. In FY24, IFC updated its core mobilization definitions and criteria. Number of firms 2,042 1,928 1,848 1,822 1,880 Previous years' information was updated to conform with the current For IFC’s account $ 80,229 $ 70,069 $ 63,763 $ 6 4,092 $ 58,650 year’s presentation. Syndicated loans $ 17,198 $ 15,312 $ 15,235 $ 15,658 $ 16,161 4. Short-Term Finance includes Global Trade Finance Program (GTFP) and Global Trade Supplier Finance Program (GTSF). TOTAL PORTFOLIO EXPOSURE $ 97,427 $ 85,381 $ 78,998 $ 79,750 $ 74,811 5. Portfolio exposure is defined as the sum of the (i) committed exposure for IFC’s debt investments, (ii) fair market value of IFC’s equity Advisory Services investments, and (iii) total undisbursed equity commitments. Advisory Services program expenditures $ 270.3 $ 260.2 $ 250.6 $ 244.0 $ 274.4 6. All references in this report to percentages of advisory program expenditures in IDA countries and fragile and conflict-affected areas Share of program in IDA countries6 50% 54% 51% 54% 57% exclude global projects. IFC ANNUAL REPORT 2024  17 IFC 2024 ANNUAL REPORT FY24 Long-Term Commitments FY24 Portfolio Exposure 4 Dollar amounts in millions, for IFC's own account as of June 30, 2024 Dollar amounts in millions, for IFC's own account as of June 30, 2024 LEADERSHIP PERSPECTIVES TOTAL $21,458 100% TOTAL $80,229 100% RESULTS World Bank Group 2024 By Industry By Industry Summary Results Financial Markets $ 9,991 46.6% Financial Markets $ 32,098 40% Infrastructure $ 2,792 13.0% Infrastructure $ 11,348 14% Global Commitments Manufacturing $ 2,460 11.5% Funds $ 7,408 9% World Bank Group institutions Tourism, Retail & Property $ 1,997 9.3% Manufacturing $ 6,748 8% World Bank Group financing for Agribusiness & Forestry $ 1,532 7.1% Tourism, Retail & Property $ 5,391 7% partner countries Funds $ 949 4.4% Agribusiness & Forestry $ 4,701 6% Health, Education & Life Sciences $ 916 4.3% Health, Education & Life Sciences $ 4,061 5% IFC 2024 Year in Review Telecommunications & Technology $ 723 3.4% Telecommunications & Technology $ 3,834 5% Financial Highlights Metals & Mining 1 $ 100 0.5% Trade Finance $ 3,555 4% Operational Highlights Metals & Mining1 $ 1,085 1% By Region FY24 Long-Term Commitments By Region 5 Latin America and the Caribbean $ 5,669 26.4% FY24 Portfolio Exposure Africa $ 4,681 21.8% Africa $ 17,107 21% IFC’s Largest Country Exposures South Asia $ 3,240 15.1% Latin America and the Caribbean $ 17,103 21% East Asia and the Pacific $ 2,926 13.6% East Asia and the Pacific $ 13,331 17% FY24 Long-Term Commitments by Europe $ 2,567 12.0% South Asia $ 10,630 13% Environmental and Central Asia and Türkiye $ 1,786 8.3% Europe $ 7,350 9% Social Category Middle East $ 566 2.6% Central Asia and Türkiye $ 6,276 8% FY24 Advisory Services Global $ 23 0.1% Global $ 6,059 8% Program Expenditures Middle East $ 2,372 3% STRATEGY IN ACTION By Product Loans 2 $ 17,822 83.1% By Product CRITICAL FUNCTIONS Equity 3 $ 1,723 8.0% Loans 2 $58,534 73% Guarantees $ 1,857 8.7% Equity 3 $ 15,007 19% Risk-management products $ 57 0.3% Guarantees $ 6,316 8% Risk-management products $ 372 0% 1. Includes IFC’s activities in oil, gas, and mining. 2. Includes loan-type, quasi-loan products. 4. Portfolio exposure is defined as the sum of the (i) committed exposure for IFC’s debt investments, (ii) fair 3. Includes equity-type, quasi-equity products. market value of IFC’s equity investments, and (iii) total undisbursed equity commitments. 5. Excludes individual country shares of regional and global projects. IFC ANNUAL REPORT 2024  18 IFC 2024 ANNUAL REPORT IFC’s Largest Country FY24 Advisory Services LEADERSHIP PERSPECTIVES Exposures6 Program Expenditures As of June 30, 2024 (Based on IFC’s account) Dollar amounts in millions RESULTS PORTFOLIO EXPOSURE7 TOTAL $ 270.3 100% World Bank Group 2024 GLOBAL COUNTRY RANK ($ MILLIONS) % OF GLOBAL PORTFOLIO Summary Results 1 India $ 8,900 11.09% By Region Global Commitments 2 Brazil $ 6,294 7.85% Africa $ 96.7 36% 3 Türkiye $ 5,130 6.39% Central Asia and Türkiye $ 12.3 5% World Bank Group institutions 4 China $ 3,712 4.63% East Asia and the Pacific $ 38.7 14% World Bank Group financing for 5 South Africa $ 3,685 4.59% Europe $ 22.1 8% partner countries 6 Colombia $ 2,691 3.35% Latin America and the Caribbean $ 36.0 13% IFC 2024 Year in Review 7 Viet Nam $ 2,164 2.70% Middle East $ 15.6 6% 8 Nigeria $ 2,147 2.68% South Asia $ 26.5 10% Financial Highlights 9 Romania $ 2,109 2.63% Global $ 22.4 8% Operational Highlights 10 Egypt, Arab Republic of $ 1,958 2.44% FY24 Long-Term Commitments 6. Excludes individual country shares of regional and global projects. By Business Area FY24 Portfolio Exposure 7. Portfolio exposure is defined as the sum of the (i) committed exposure for IFC’s debt investments, (ii) fair Financial Institutions Group $ 59.1 22% market value of IFC’s equity investments, and (iii) total undisbursed equity commitments. Transaction Advisory $ 53.8 20% IFC’s Largest Country Exposures Manufacturing, Agribusiness & Services $ 34.1 13% FY24 Long-Term Commitments by Infrastructure & Natural Resources $ 19.7 7% Environmental and Disruptive Technologies & Funds $ 5.3 2% Social Category FY24 Long-Term Commitments by Country Advisory & Economics $ 61.1 23% FY24 Advisory Services Program Expenditures Environmental and Social Category Other Advisory $ 37.2 14% STRATEGY IN ACTION ENVIRONMENTAL COMMITMENTS NUMBER OF CATEGORY ($ MILLIONS) NEW PROJECTS CRITICAL FUNCTIONS A $ 1,549 10 B $ 9,985 144 C $ 171 15 FI-1 $ 304 6 FI-2 $ 8,487 149 FI-3 $ 2,837 39 GRAND TOTAL $23,334 363 Visit www.ifc.org/escategories for information on category definitions. IFC ANNUAL REPORT 2024  19 ACCELERATING IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Fostering Financial Inclusion: Empowering Women Entrepreneurs and AS PART OF A BETTER WORLD BANK GROUP Refugee Communities Laying the Groundwork for Economic Growth Pathways to Prosperity Complementary Capabilities: An STRATEGY IN ACTION From climate resilience to digital transformation, from gender equity to fragile states, we’re proving that commercial viability and development impact Integrated Approach to Supporting Small Enterprises can — and must — go hand in hand. Scaling Impact Through Equity: A 45-Year FY24 marks a watershed moment, both for IFC and the entire World Bank Journey of Partnership and Growth As we evolve into a Better World Bank Group Group. As we operationalize our new vision, we’ve sharpened our focus, pushing Shared Visions for Urban Sustainability Powering Progress: Pioneering Platforms to address compounding global crises, we’re the boundaries of what’s possible in emerging markets. Our approach is multifaceted yet unified, seamlessly integrating our roles as investor, advisor, for Energy Access Beyond Borders: Forging a Path for not just adapting to change — we’re driving it, partner, and catalyst to create impact greater than the sum of its parts. Inclusive Finance pioneering innovative solutions that harness The initiatives highlighted in this report showcase not just individual projects, Reimagining Development Finance but scalable models — tangible examples of how innovative finance, evidence- Digital Dividends: Mapping Africa’s Tech the power of private enterprise to eradicate based advice, strategic partnerships, and catalytic interventions can Transformation accelerate progress toward our shared vision. The Knowledge Network: Accelerating poverty on a livable planet. Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  20 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Fostering Financial Inclusion: Empowering Women Entrepreneurs and Refugee Communities Laying the Groundwork for Economic Growth Pathways to Prosperity As you explore these pages, you’ll discover a common Complementary Capabilities: An thread: whether we’re empowering entrepreneurs, Integrated Approach to Supporting Small Enterprises transforming industries, or reshaping entire markets, we’re driven by the belief that mobilizing private sector Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth solutions and creating new pathways for private capital to flow into emerging markets and developing economies Shared Visions for Urban Sustainability are essential to addressing the world’s most intractable Powering Progress: Pioneering Platforms development challenges. for Energy Access Beyond Borders: Forging a Path for From innovative risk-sharing facilities that crowd in Inclusive Finance private investment, to joint World Bank Group programs Reimagining Development Finance that support sector reforms and open markets, our work Digital Dividends: Mapping Africa’s Tech in FY24 demonstrates the power of private sector to Transformation create opportunities, build resilience, and improve lives and livelihoods. The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  21 A TRAILBLAZING IFC 2024 ANNUAL REPORT INVESTOR LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission As a trailblazing investor, IFC is reimagining We’re leveraging our unique position within the Pioneering Platforms for how private capital can be mobilized to build a World Bank Group to deliver solutions that meet Sustainable Finance better world. Our program growth is fueled by a ambitious development goals. From mobilizing Cultivating Resilience: Innovations singular focus: maximizing the impact of every billions for climate action to empowering women in Agribusiness dollar invested. entrepreneurs and helping stabilize fragile Fostering Financial Inclusion: economies by creating jobs and opportunities, our Empowering Women Entrepreneurs and In an era of complex global challenges, we recognize investments are accelerating progress toward a Refugee Communities that transformative change requires more than more sustainable, inclusive, and prosperous world. Laying the Groundwork for isolated transactions. That’s why we’re urgently Economic Growth developing new ways to efficiently channel private The stories that follow illustrate the power of Pathways to Prosperity capital toward the world’s most pressing needs, strategic, impact-driven investment to address Complementary Capabilities: An creating a multiplier effect, amplifying our impact some of the world’s most intractable challenges. Integrated Approach to Supporting and accelerating positive change on a global scale. Small Enterprises Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth Shared Visions for Urban Sustainability Powering Progress: Pioneering Platforms for Energy Access Beyond Borders: Forging a Path for Inclusive Finance UNLOCKING Reimagining Development Finance Photo: Longtime IFC client Vegpro Group is a leading Digital Dividends: Mapping Africa’s Tech vegetable and flower exporter in Kenya. Transformation CAPITAL The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  22 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Fostering Financial Inclusion: Empowering Women Entrepreneurs and Refugee Communities Laying the Groundwork for Economic Growth Pathways to Prosperity Complementary Capabilities: An Integrated Approach to Supporting Small Enterprises Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth Shared Visions for Urban Sustainability Powering Progress: Pioneering Platforms for Energy Access Beyond Borders: Forging a Path for Inclusive Finance Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  23 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Fostering Financial Inclusion: Empowering Women Entrepreneurs and Refugee Communities Laying the Groundwork for Economic Growth Pathways to Prosperity Complementary Capabilities: An Integrated Approach to Supporting Small Enterprises Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth Shared Visions for Urban Sustainability Powering Progress: Pioneering Platforms for Energy Access Beyond Borders: Forging a Path for Inclusive Finance Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  24 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES MOBILIZATION RESULTS STRATEGY IN ACTION AT THE HEART Accelerating Impact Unlocking Capital OF IFC’S MISSION Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Mobilizing private capital is at the core of IFC’s mission — bidding brought a new operator, ViaMobilidade 8 e 9, formed Sustainable Finance attracting additional investment to scale up private sector by two Brazilian investors, CCR SA and RuasInvest. IFC helped Cultivating Resilience: Innovations solutions that address today’s greatest development needs. secure $1.6 billion in private sector investment, including in Agribusiness Through mobilization we are showing that investing for impact approximately $500 million raised through Brazil’s largest- Fostering Financial Inclusion: in challenging contexts is both good for business and good ever green bond issuance. The project is improving suburban Empowering Women Entrepreneurs and for development. rail connectivity for approximately a million commuters per Refugee Communities day with more efficient, lower-polluting service that includes Laying the Groundwork for Our private capital mobilization reached a record $34 billion, new trains and a full set of related infrastructure upgrades. Economic Growth with core mobilization growing by 50 percent as compared to FY23, reaching over $22 billion. Drawing on the work of In Georgia, IFC’s $10 million anchor investment led to the Pathways to Prosperity both our investment and advisory teams, this growth marks successful issuance of a $150 million bond — the largest Complementary Capabilities: An domestic sustainability-linked bond in the country and the Integrated Approach to Supporting the first steps in a longer-term transformation of our Small Enterprises business model. Caucasus region at the time of issuance. The landmark transaction is expected to help bond issuer Georgia Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth Two recent examples highlight the diverse ways Capital and its portfolio companies implement energy- IFC mobilizes private capital: efficient measures that will reduce their GHG emissions Shared Visions for Urban Sustainability by 20 percent by 2027. These include replacing natural Powering Progress: Pioneering Platforms In Brazil, IFC advised the State of São Paulo in tendering a gas heating systems with energy-efficient electric heating for Energy Access 30-year concession agreement enabling a private consortium solutions, deploying electric vehicles, and shifting to Beyond Borders: Forging a Path for to upgrade two existing metropolitan rail system lines renewable electricity. The bond attracted an unprecedented Inclusive Finance formerly operated by a state-owned company. The level of interest in Georgia with total demand reaching Reimagining Development Finance transaction was the first of its kind in traffic-clogged São $200 million and spreading across a diverse range of Digital Dividends: Mapping Africa’s Tech Paulo, one of the world’s largest cities with a population 275+ retail, corporate, and institutional investors. Transformation of more than 12 million. The fully transparent competitive The Knowledge Network: Accelerating Sustainable Finance Globally Photos: An IFC-supported public private partnership in Brazil Stronger Together: Amplifying Impact attracted $1.6 billion in new private investment, upgrading rail Through Collaboration service in metropolitan São Paulo. CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  25 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES PIONEERING PLATFORMS FOR RESULTS STRATEGY IN ACTION SUSTAINABLE Accelerating Impact Unlocking Capital FINANCE Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for IFC is pioneering innovative platforms to attract private guidance capabilities with its capacity as an investor, Sustainable Finance capital for sustainable development and climate action in IFC is supporting the supply side of the market by helping Cultivating Resilience: Innovations emerging markets at scale. These initiatives are removing to increase the quality and quantity of blue-labeled in Agribusiness barriers to financing and setting new standards for issuances. Launched in November 2023, the T. Rowe Price Fostering Financial Inclusion: responsible investment. Emerging Markets Blue Economy Bond Strategy aims to Empowering Women Entrepreneurs and increase financing for blue projects in emerging markets Refugee Communities The Managed Co-lending Portfolio Program (MCPP) while improving standards in this evolving area. This Laying the Groundwork for One Planet, launched at COP26, has already attracted initiative complements IFC’s track record of investing and Economic Growth $2.5 billion in financing from a range of private and mobilizing over $1.9 billion through 17 blue bonds and loans Pathways to Prosperity public sector investors, nearly all of which has been since 2020 across different regions. This represents close allocated to transactions. In fiscal year 2024 alone, to 10 percent of the total global blue-labeled bonds market Complementary Capabilities: An Integrated Approach to Supporting $1.07 billion was committed to investment opportunities valued at $17 billion. Small Enterprises representing transactions in 27 projects in 19 countries Scaling Impact Through Equity: A 45-Year across all IFC regions and industry groups. At 51 percent, By combining IFC’s risk assessment and project Journey of Partnership and Growth the Manufacturing, Agribusiness, and Services sector supervision expertise with novel financial structures, Shared Visions for Urban Sustainability represented the highest volume of commitments. As the these initiatives are creating new pathways for investors world’s first cross-sectoral portfolio of emerging market to support climate action and ocean conservation in Powering Progress: Pioneering Platforms for Energy Access senior loans aligned with the Paris Agreement, MCPP emerging markets and developing economies. One Planet provides investors with enhanced reporting, Beyond Borders: Forging a Path for enabling them to demonstrate their contributions to Inclusive Finance global climate efforts and the Sustainable Development Reimagining Development Finance Photos: To help preserve Colombia’s treasured ecosystems at Goals while meeting disclosure regulations without a time of significant risks from climate change, IFC partnered Digital Dividends: Mapping Africa’s Tech incurring additional costs. with Spanish bank BBVA on the world’s first biodiversity Transformation bond. The groundbreaking $70 million bond issue provides private capital to finance projects that address key drivers The Knowledge Network: Accelerating IFC has also joined forces with T. Rowe Price to pioneer a of Colombia’s biodiversity loss and help restore forests, Sustainable Finance Globally global blue bond strategy. By pairing its leading market waterways, and wildlife habitats. Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  26 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Fostering Financial Inclusion: Empowering Women Entrepreneurs and Refugee Communities Laying the Groundwork for Economic Growth BIODIVERSITY BOND Pathways to Prosperity Rapid biodiversity loss is an urgent threat to global Complementary Capabilities: An ecosystems — and one that government resources Integrated Approach to Supporting alone cannot address. Small Enterprises This is why IFC acted as structurer and investor of the world’s Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth first biodiversity bond that will amount to $70 million in support of the Colombian subsidiary of Spanish bank BBVA’s Shared Visions for Urban Sustainability financing of private sector-led activities in reforestation, Powering Progress: Pioneering Platforms habitat restoration, climate-smart agriculture, and other for Energy Access priority sectors across Colombia. Beyond Borders: Forging a Path for Inclusive Finance The groundbreaking transaction introduces biodiversity and Reimagining Development Finance nature asset eligibility criteria to the market, following new standards IFC set in its 2023 Biodiversity Finance Reference Digital Dividends: Mapping Africa’s Tech Transformation Guide. Designed to be marketable and replicable, the bond could open significant sources of new private investment The Knowledge Network: Accelerating Sustainable Finance Globally for this critical sustainability area. As the world’s most biodiverse nation (on a per square kilometer basis according Stronger Together: Amplifying Impact to the World Wildlife Fund), Colombia is a great place to Through Collaboration start crafting this new private sector solution. CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  27 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS CULTIVATING RESILIENCE INNOVATIONS IN STRATEGY IN ACTION Accelerating Impact AGRIBUSINESS Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Fostering Financial Inclusion: Empowering Women Entrepreneurs and Refugee Communities Laying the Groundwork for Economic Growth Pathways to Prosperity Complementary Capabilities: An Integrated Approach to Supporting Small Enterprises Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth Shared Visions for Urban Sustainability Powering Progress: Pioneering Platforms for Energy Access Beyond Borders: Forging a Path for Inclusive Finance Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  28 IFC 2024 Climate-resilient food security and innovative agricultural Complementing this effort, IFC has invested in Pula, an ANNUAL REPORT insurance are two important areas of focus for IFC in the innovative insurtech company revolutionizing agricultural agribusiness space. insurance across Africa and Asia. Pula’s products now LEADERSHIP PERSPECTIVES reach over 15 million smallholder farmers, with 6 million RESULTS In Senegal, where climate change threatens rice new sign-ups in 2023 alone. Their groundbreaking STRATEGY IN ACTION production and food security, IFC is supporting innovative approach combines satellite imagery, mobile technology, financing solutions through a partnership with Baobab and advanced data analytics to provide a unique index- Accelerating Impact Group. This initiative, part of IFC’s Base of the Pyramid based insurance model protecting farmers against Unlocking Capital Platform (BOP), helps deliver critical funding to small production losses due to natural events. Mobilization: At the Heart of businesses and low-income households, backed by IFC’s Mission guarantees and local currency financing from the IDA Pula’s technology leverages real-time satellite data Pioneering Platforms for Private Sector Window. to assess crop health and weather patterns, enabling Sustainable Finance precise risk assessment and rapid claim processing. By Cultivating Resilience: Innovations Baobab Group has prioritized supporting Senegal’s integrating with mobile payment systems, Pula has made in Agribusiness women rice farmers, increasing loan disbursements to insurance more accessible and affordable for previously Fostering Financial Inclusion: women by 54 percent between 2021 and 2023. Offering underserved smallholder farmers. Empowering Women Entrepreneurs and loans ranging from $165 to $165,000, the Group also Refugee Communities provides training on environmentally friendly production Since 2015, Pula has partnered with over 70 insurance Laying the Groundwork for techniques and access to climate-adapted insurance companies, 20 reinsurance companies, and 100 Economic Growth products. This approach improves access to finance distribution partners across Africa. IFC’s investment aims Pathways to Prosperity for thousands of small enterprises led by women, while to catalyze Pula’s expansion, demonstrating the viability enabling local financial institutions to expand their of commercially sustainable insurance for smallholder Complementary Capabilities: An Integrated Approach to Supporting agricultural portfolios. farmers at scale. Small Enterprises Scaling Impact Through Equity: A 45-Year By simultaneously addressing climate resilience in Journey of Partnership and Growth food production and innovative risk management through insurance, IFC is transforming the landscape Shared Visions for Urban Sustainability for smallholder farmers across Africa, with potential for Powering Progress: Pioneering Platforms expansion into other regions. for Energy Access Beyond Borders: Forging a Path for Inclusive Finance Photos: Aby Diop and other small-scale rice farmers in Senegal Reimagining Development Finance are increasing their productivity with loans for new climate- Digital Dividends: Mapping Africa’s Tech smart agriculture techniques from IFC microfinance client Transformation Baobab Group. Baobab’s loan disbursements to women grew by 54 percent between 2021 and 2023. The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  29 IFC 2024 ANNUAL REPORT FOSTERING FINANCIAL INCLUSION EMPOWERING LEADERSHIP PERSPECTIVES RESULTS WOMEN STRATEGY IN ACTION Accelerating Impact ENTREPRENEURS Unlocking Capital Mobilization: At the Heart of AND REFUGEE IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Fostering Financial Inclusion: Empowering Women Entrepreneurs and COMMUNITIES Refugee Communities Laying the Groundwork for Economic Growth Pathways to Prosperity Complementary Capabilities: An Integrated Approach to Supporting Small Enterprises Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth Shared Visions for Urban Sustainability Powering Progress: Pioneering Platforms for Energy Access Beyond Borders: Forging a Path for Inclusive Finance Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  30 IFC 2024 ANNUAL REPORT IFC is intensifying its efforts to promote financial were named among the winners of the Kakuma aim to replicate successes like those in Jordan, LEADERSHIP PERSPECTIVES inclusion through strategic investments and Kalobeyei Challenge Fund (KKCF) Competitive where World Bank Group-UNHCR collaboration partnerships that empower women entrepreneurs Business Challenge, a competition managed has led to policy changes that enabled RESULTS and support refugees and their host communities. by IFC and the Africa Enterprise Challenge 80,000 work permits for Syrian refugees. STRATEGY IN ACTION Fund to support economic development, job Accelerating Impact In Indonesia, IFC has invested $25 million in creation, and entrepreneurship in Kenya’s By combining UNHCR’s on-the-ground expertise Amartha, the country’s largest microfinancing Kakuma-Kalobeyei refugee-hosting area. with IFC’s private sector know-how, this Unlocking Capital platform. Serving about 1.2 million small business Winners of the business competition received partnership is creating a new paradigm for refugee Mobilization: At the Heart of borrowers through a network of field agents grants and technical support to launch or grow inclusion. It’s not just about aid — it’s about IFC’s Mission and local hubs across Indonesia’s major islands, their operations. KKCF-supported businesses unleashing the economic potential of displaced Pioneering Platforms for Amartha focuses on rural women entrepreneurs, have already created more than 300 jobs, communities and their hosts. Sustainable Finance a group often overlooked by traditional banks including 199 held by women and 82 by Cultivating Resilience: Innovations despite their important role in local economies. refugees. These businesses have provided vital in Agribusiness services to over 70,000 refugees and members Fostering Financial Inclusion: IFC’s investment is helping significantly expand of the host community, including renewable Empowering Women Entrepreneurs and energy, education, and healthcare services. Amartha’s reach and impact. This project aims Refugee Communities to prove the business case for investing in rural Laying the Groundwork for women entrepreneurs and encourage other In Colombia, IFC partnered with Bancamía Economic Growth financial institutions to serve this market. to launch a pilot program helping Venezuelan Pathways to Prosperity migrants integrate into the local economy. By Complementary Capabilities: An True to its commitment to inclusion, IFC has providing microloans and financial education, the Integrated Approach to Supporting also intensified its collaboration with UNHCR to program has supported over 1,000 Venezuelan Small Enterprises address the global displacement crisis, which entrepreneurs, 64 percent of whom are women. Scaling Impact Through Equity: A 45-Year now affects over 120 million people worldwide. Journey of Partnership and Growth This partnership, formalized in December 2022, is In 2023, IFC and UNHCR began working Shared Visions for Urban Sustainability already showing tangible results. with governments in Uganda and Kenya, Powering Progress: Pioneering Platforms home to over 2 million refugees, to improve for Energy Access In December 2023, 81 businesses, almost all led regulatory environments, allowing refugees Beyond Borders: Forging a Path for by local Kenyan entrepreneurs and refugees, greater economic freedoms. These efforts Inclusive Finance Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation Photos: (Left) IFC and Indonesian microfinance fintech client Amartha have The Knowledge Network: Accelerating developed an innovative funding solution boosting access to finance for women- Sustainable Finance Globally owned microenterprises. (Above) An IFC-supported small business development initiative is creating jobs in Kenya’s Kakuma-Kalobeyei refugee-hosting area. Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  31 LAYING THE IFC 2024 ANNUAL REPORT GROUNDWORK FOR LEADERSHIP PERSPECTIVES RESULTS ECONOMIC GROWTH STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission IFC is committed to fostering economic growth 800 construction jobs, this project will serve as a catalyst Pioneering Platforms for and stability in some of the world’s most for broader economic growth in southern Iraq while Sustainable Finance challenging environments. demonstrating the viability of greener industrial practices Cultivating Resilience: Innovations in challenging markets. in Agribusiness In Iraq, IFC is spearheading two transformative projects. The first is a $206 million agro-industrial development In Somalia, IFC is collaborating closely with the World Fostering Financial Inclusion: Empowering Women Entrepreneurs and in Basra, in partnership with Tiryaki Agro Gida Sanayi Bank to build the foundations for a vibrant and inclusive Refugee Communities Ve Ticaret A.S. of Türkiye. IFC’s investment package private sector. Our work focuses on addressing systemic Laying the Groundwork for of $113 million — part of IFC’s Global Food Security constraints hindering investment such as compliance with Economic Growth Platform — will support a new processing facility at global financial sector regulations, lack of correspondent Pathways to Prosperity Umm Qasr Port, enhancing food security by increasing banking, and weak institutional capacity through advisory the availability of maize and soybean meal for engagements that aim to strengthen the technical know- Complementary Capabilities: An Integrated Approach to Supporting poultry production. how of clients and build capacity of governing institutions. Small Enterprises Simultaneously, IFC is backing the expansion of the Al In South Sudan, Ethiopia, and across the Sahel Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth Douh cement plant in Samawa, in Iraq’s Al Muthanna countries, IFC is implementing targeted investments province. With a total financing package of $130 million, to address critical infrastructure gaps, support Shared Visions for Urban Sustainability this investment will more than double the plant’s cement local businesses, and promote economic resilience. Powering Progress: Pioneering Platforms production capacity to 3.5 million tons annually while These initiatives range from financing small and for Energy Access significantly improving its environmental footprint. The medium enterprises to supporting key sectors such Beyond Borders: Forging a Path for project includes the installation of a new high thermal as agriculture, energy, and telecommunications. Inclusive Finance efficiency kiln, a natural gas-powered captive power plant Reimagining Development Finance replacing heavy fuel oil, and a waste heat recovery system By taking calculated risks in these challenging markets, Digital Dividends: Mapping Africa’s Tech that will reduce fossil fuel-based electricity generation IFC is not only providing essential financial support Transformation by up to 30 percent. These upgrades will align the plant’s but also demonstrating the viability of private sector The Knowledge Network: Accelerating operations with European Union taxonomy criteria for solutions in fragile and conflict-affected economies Sustainable Finance Globally sustainable cement production. Beyond creating over and contributing to long-term stability and economic Stronger Together: Amplifying Impact development in these places. Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  32 IFC 2024 Photo: An IFC-financed processing facility supports ANNUAL REPORT food security in Iraq, increasing the availability of maize and soybean meal for poultry production. LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Fostering Financial Inclusion: Empowering Women Entrepreneurs and Refugee Communities Laying the Groundwork for Economic Growth Pathways to Prosperity Complementary Capabilities: An Integrated Approach to Supporting Small Enterprises Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth Shared Visions for Urban Sustainability Powering Progress: Pioneering Platforms for Energy Access Beyond Borders: Forging a Path for Inclusive Finance Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  33 AN ENABLING IFC 2024 ANNUAL REPORT PARTNER LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission IFC’s role extends far beyond that of a investment conditions, reaching underserved Pioneering Platforms for traditional investor. As an enabling partner, communities, and targeting high-impact growth Sustainable Finance we are catalyzing change by fostering robust areas. By doing so, we’re not just facilitating Cultivating Resilience: Innovations ecosystems for impactful private investment. investments — we’re building environments where in Agribusiness Our approach is multifaceted and dynamic, private sector solutions can thrive and make the Fostering Financial Inclusion: leveraging upstream engagement on sector most significant difference in improving lives. Empowering Women Entrepreneurs and reforms, project development, advisory Refugee Communities In an era of urgent global challenges, IFC’s role as services, and our unparalleled convening Laying the Groundwork for an enabling partner is critical. We’re strategically power to accelerate positive outcomes across Economic Growth steering private capital toward the areas of diverse markets and sectors. At the heart of Pathways to Prosperity greatest need and potential impact, accelerating our strategy is the recognition that today’s Complementary Capabilities: An progress on key development goals. The stories complex challenges demand collective action. Integrated Approach to Supporting that follow demonstrate how our collaborative Small Enterprises Our collaborations with a wide array of approach is transforming markets, building Scaling Impact Through Equity: A 45-Year stakeholders serve multiple crucial functions: resilience, and creating opportunities at a scale Journey of Partnership and Growth setting industry standards, shaping favorable and speed that matches the urgency of our times. Shared Visions for Urban Sustainability Powering Progress: Pioneering Platforms for Energy Access Photo: In Malawi, IFC’s advisory work and partnerships Beyond Borders: Forging a Path for are enabling private investment in digital infrastructure, Inclusive Finance increasing connectivity and reducing business costs PATHWAYS TO across Africa. Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation PROSPERITY The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  34 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Fostering Financial Inclusion: Empowering Women Entrepreneurs and Refugee Communities Laying the Groundwork for Economic Growth Pathways to Prosperity Complementary Capabilities: An Integrated Approach to Supporting Small Enterprises Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth Shared Visions for Urban Sustainability Powering Progress: Pioneering Platforms for Energy Access Beyond Borders: Forging a Path for Inclusive Finance Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  35 IFC 2024 COMPLEMENTARY CAPABILITIES ANNUAL REPORT LEADERSHIP PERSPECTIVES AN INTEGRATED APPROACH TO SUPPORTING SMALL RESULTS STRATEGY IN ACTION ENTERPRISES Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for The World Bank Group has worked as one to strengthen client fund managers collaborate with the World Sustainable Finance job-creating small and medium enterprises (SMEs) in the Bank in Nepal and other markets to advocate for Cultivating Resilience: Innovations world’s poorest countries. regulatory changes that support local industries. in Agribusiness Fostering Financial Inclusion: Launched in 2010, IFC’s SME Ventures program offers One client, XSML Capital, is a leading provider of Empowering Women Entrepreneurs and comprehensive support for SME-focused private equity growth capital to SMEs in Central and Eastern Africa. Refugee Communities funds in these challenging markets. It provides investment To date, XSML has helped to scale more than 80 SMEs Laying the Groundwork for in funds, capacity building that helps fund managers and initiated more than 150 business improvement Economic Growth improve their operations, value creation support to grow projects across its portfolio. In FY24, IFC invested in Pathways to Prosperity the portfolio SMEs, and collaboration with the World Bank XSML’s fourth fund, Africa Rivers Fund IV, building and others to build broader ecosystems for private equity. on its support for earlier funds. In addition to growth Complementary Capabilities: An Integrated Approach to Supporting capital, XSML clients benefit from a range of tailored Small Enterprises Together, SME Ventures and the IDA Private Sector business support to improve company processes Scaling Impact Through Equity: A 45-Year Window have now committed $313 million to support that lead to better, more sustainable businesses. Journey of Partnership and Growth SMEs. This has in turn mobilized $1.2 billion from others, Shared Visions for Urban Sustainability generating investments in more than 50 countries, including Cambodia, the Democratic Republic of Powering Progress: Pioneering Platforms for Energy Access Congo (DRC), Guatemala, the Kyrgyz Republic, and many others. The far-reaching collaboration has Beyond Borders: Forging a Path for backed nearly 600 growing companies, supporting Inclusive Finance more than 200,000 jobs. For broader impact, our Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation The Knowledge Network: Accelerating Sustainable Finance Globally Photo: Small businesses such as clothing manufacturer Stronger Together: Amplifying Impact Cool Bro’s in the Kyrgyz Republic are growing with Through Collaboration investment from IFC’s SME Ventures program. CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  36 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Fostering Financial Inclusion: Empowering Women Entrepreneurs and Refugee Communities Laying the Groundwork for Economic Growth Pathways to Prosperity Complementary Capabilities: An Integrated Approach to Supporting Small Enterprises Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth Shared Visions for Urban Sustainability Powering Progress: Pioneering Platforms for Energy Access Beyond Borders: Forging a Path for Inclusive Finance Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  37 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Fostering Financial Inclusion: Empowering Women Entrepreneurs and Refugee Communities Laying the Groundwork for Economic Growth Pathways to Prosperity Complementary Capabilities: An Integrated Approach to Supporting Small Enterprises Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth Shared Visions for Urban Sustainability Powering Progress: Pioneering Platforms for Energy Access Beyond Borders: Forging a Path for Inclusive Finance Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  38 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS SCALING IMPACT THROUGH EQUITY A 45-YEAR JOURNEY STRATEGY IN ACTION Accelerating Impact OF PARTNERSHIP AND Unlocking Capital Mobilization: At the Heart of GROWTH IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Risk capital helps companies grow, enabling them to In 1994, HDFC set up HDFC Bank, now India’s largest A new $500 million loan from IFC, committed in FY24, is Fostering Financial Inclusion: Empowering Women Entrepreneurs and meet demand, create jobs, and increase impact. However, private sector bank. IFC has since sold its equity stake supporting HDFC Bank to grow its microlending to women. Refugee Communities equity investment is often scarce in emerging markets, in HDFC, which merged into HDFC Bank in 2023. As By demonstrating the viability of scaling up microlending Laying the Groundwork for especially in macro environments with higher interest and of March 31, 2024, HDFC Bank had more than 8,700 to underserved women entrepreneurs, the financing Economic Growth inflation rates, along with intensified geopolitical risks branches across India, many in semi-urban and rural will help create a replicable model and encourage the and volatility. By supplying patient equity capital that is areas, helping IFC reach underserved women borrowers wider industry of lenders and investors to enter into or Pathways to Prosperity missing in the marketplace, IFC can spark clients’ growth and bridge the critical finance gap. deepen their engagement in this high-impact market. Complementary Capabilities: An and create the basis for long-term partnerships. Integrated Approach to Supporting Small Enterprises HDFC Bank continues to be a strong partner for IFC in In 1978, IFC was an early investor in India’s first housing the shared goal of empowering women and accelerating Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth finance company, Housing Development Finance inclusive and sustainable growth. Photos: Early investment from IFC in 1978 helped launch what Corporation (HDFC) Ltd., which pioneered the country’s is now India’s largest private sector bank, HDFC Bank. Shared Visions for Urban Sustainability now vast home-loan market. This began a relationship Powering Progress: Pioneering Platforms re Authorized that continues today and has enabled millions of Indians for Energy Access to own homes. Beyond Borders: Forging a Path for Public Disclosu Inclusive Finance Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation The Knowledge Network: Accelerating re Authorized Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration Public Disclosu CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  39 d SHARED VISIONS IFC 2024 ANNUAL REPORT FOR URBAN LEADERSHIP PERSPECTIVES RESULTS SUSTAINABILITY STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission IFC is spearheading partnerships to transform In Romania, IFC is driving sustainable building practices urban landscapes, demonstrating its unique ability to through its partnership with Warehouses De Pauw NV Pioneering Platforms for Sustainable Finance catalyze sustainable development across diverse (WDP), a Belgian real estate investment trust. IFC’s sectors and geographies. $326 million green loan package, including nearly Cultivating Resilience: Innovations in Agribusiness $160 million in core mobilization, supports WDP’s In Izmir, Türkiye’s third-largest city, IFC has forged expansion of energy-efficient logistics assets across Fostering Financial Inclusion: a decade-long alliance with municipal authorities to the country. Empowering Women Entrepreneurs and Refugee Communities improve water management. This partnership has channeled over $400 million from various lenders into This collaboration goes beyond traditional financing, Laying the Groundwork for Economic Growth critical infrastructure projects, addressing the city’s incorporating sustainability-linked features that pressing challenges of water scarcity, pollution, and incentivize WDP to enhance its climate agenda. The Pathways to Prosperity climate change. agreement encourages increasing EDGE-certified Complementary Capabilities: An properties and expanding rooftop solar capacity, directly Integrated Approach to Supporting Small Enterprises The collaboration reached a new milestone in FY24 with contributing to Romania’s green transition. Globally, EDGE IFC’s groundbreaking $50 million long-term local currency has now certified more than 86 million square meters of Scaling Impact Through Equity: A 45-Year loan to Izmir’s Water and Sewerage Administration (IZSU). floor space in nearly 140 countries, saving more than Journey of Partnership and Growth This financing, which eliminates currency risks, is enabling 3 million megawatts of energy and more than 102 million Shared Visions for Urban Sustainability the city to tackle water supply and wastewater treatment cubic meters of water each year. Powering Progress: Pioneering Platforms issues more effectively, including the development of a for Energy Access new drinking water plant in Foça, a nearby municipality in Through these examples, IFC is proving that strategic Beyond Borders: Forging a Path for Izmir Province. partnerships and tailored financial solutions can Inclusive Finance accelerate the transition to more sustainable and resilient Reimagining Development Finance urban environments across diverse markets. Digital Dividends: Mapping Africa’s Tech Transformation Photos: Local currency financing from IFC is helping Turkish municipal water utility IZSU address many long-standing The Knowledge Network: Accelerating challenges, including building a new drinking water plant in Sustainable Finance Globally Izmir Province. Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  40 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Fostering Financial Inclusion: Empowering Women Entrepreneurs and Refugee Communities Laying the Groundwork for Economic Growth Pathways to Prosperity Complementary Capabilities: An Integrated Approach to Supporting Small Enterprises Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth Shared Visions for Urban Sustainability Powering Progress: Pioneering Platforms for Energy Access Beyond Borders: Forging a Path for Inclusive Finance Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  41 IFC 2024 POWERING PROGRESS ANNUAL REPORT LEADERSHIP PERSPECTIVES PIONEERING PLATFORMS FOR RESULTS STRATEGY IN ACTION ENERGY ACCESS Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for As the world seeks greener solutions, IFC is forming Extending its collaborative approach to Africa, IFC is Sustainable Finance strategic partnerships to push for more renewable energy, pioneering innovative financing mechanisms to boost Cultivating Resilience: Innovations focusing on sustainable power and increasing access in energy access. In Côte d’Ivoire, IFC has joined forces with in Agribusiness different markets. the government and local stakeholders as an anchor Fostering Financial Inclusion: investor in a groundbreaking social bond supporting the Empowering Women Entrepreneurs and In FY24, IFC launched the Future Grids Alliance in Brazil, Electricity for All Program (PEPT). This initiative, part of Refugee Communities a global collaborative platform uniting utilities, investors, the World Bank Group Joint Capital Markets Program Laying the Groundwork for and experts to drive the adoption of sustainable and (JCAP), aims to connect 800,000 low-income households Economic Growth renewable power. This alliance offers financial and to the grid over four years. Pathways to Prosperity technical support to emerging market utilities committed to a just energy transition, focusing on decarbonization IFC’s $49 million investment in this bond issue represents Complementary Capabilities: An Integrated Approach to Supporting and integrating social metrics into energy financing. a significant commitment to the partnership. IFC’s Small Enterprises support is backed by the IDA Private Sector Window’s Scaling Impact Through Equity: A 45-Year The Alliance builds on IFC’s other successful blended finance and local currency facilities. The Journey of Partnership and Growth collaborations in sustainability-linked financing, transaction’s 15-year maturity tranche sets a new Shared Visions for Urban Sustainability which have already mobilized $47 billion in the benchmark for long-term infrastructure financing in the Latin America region. Key partnerships include a West African Economic and Monetary Union, aligning with Powering Progress: Pioneering Platforms for Energy Access $400 million green and sustainability-linked loan to Côte d’Ivoire’s goal of universal electricity access by 2030. ENGIE Energía Chile SA for transitioning to renewables, Beyond Borders: Forging a Path for and similar arrangements with Brazilian utilities By fostering alliances among climate-smart utilities and Inclusive Finance Neoenergia Coelba and Neoenergia Elektro to enhance crafting innovative financing partnerships globally, IFC is Reimagining Development Finance network digitalization and workforce diversity. catalyzing the energy transition on multiple fronts. These Digital Dividends: Mapping Africa’s Tech collaborative efforts not only propel sustainable power Transformation generation and distribution but also ensure that the The Knowledge Network: Accelerating benefits of clean energy reach underserved populations, Sustainable Finance Globally embodying IFC’s dedication to inclusive and sustainable Stronger Together: Amplifying Impact development through strategic partnerships. Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  42 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS UPSTREAM STRATEGY IN ACTION ENERGY Accelerating Impact In Africa, IFC is providing a $100 million financing package Unlocking Capital for Release by Scatec, a company that provides innovative, Mobilization: At the Heart of pre-assembled, modular solar photovoltaic power containers IFC’s Mission and battery storage solutions. Pioneering Platforms for Sustainable Finance The financing package is part of a wider partnership that will help meet growing electricity demand with a cost- Cultivating Resilience: Innovations in Agribusiness competitive, reliable, renewable solution to African utilities and will start by adding 35 MW and 36 MW of power to the Fostering Financial Inclusion: Empowering Women Entrepreneurs and national grids in Chad and Cameroon respectively, before Refugee Communities rolling out the solution to other countries. Laying the Groundwork for IFC has been a co-developer of the project since 2020, Economic Growth together with Scatec, with the objective of commercializing a Pathways to Prosperity leasing business model, providing a flexible renewable power Complementary Capabilities: An solution that can change how renewable energy is procured Integrated Approach to Supporting in fragile and conflict-affected economies. IFC’s presence at Small Enterprises the early development phase of the project was crucial. IFC Scaling Impact Through Equity: A 45-Year was able to bring its sector knowledge to refine the business Journey of Partnership and Growth model and its structuring expertise to ensure bankability and Shared Visions for Urban Sustainability attract private sector investment. Powering Progress: Pioneering Platforms for Energy Access IFC’s Upstream project development work is being complemented downstream with a financing package Beyond Borders: Forging a Path for Inclusive Finance consisting of $50 million from IFC’s own-account and $50 million in blended finance from the Canada- Reimagining Development Finance IFC Renewable Energy Program for Africa, the Digital Dividends: Mapping Africa’s Tech Finland-IFC Blended Finance for Climate Program, Transformation the Canada-IFC Blended Climate Finance Program The Knowledge Network: Accelerating and the IDA Private Sector Window. Sustainable Finance Globally Photos: IFC anchored a landmark local capital markets transaction, Stronger Together: Amplifying Impact helping Côte d’Ivoire increase access to electricity. Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  43 IFC 2024 BEYOND BORDERS ANNUAL REPORT LEADERSHIP PERSPECTIVES FORGING A PATH FOR INCLUSIVE FINANCE RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital For nearly a decade, IFC and the European IFC was the first non-European DFI to access Mobilization: At the Heart of Commission (EC) have been sharing knowledge and blended finance guarantees from the European IFC’s Mission best practices on using blended concessional finance Union. Trust built over the past couple of years and Pioneering Platforms for to catalyze investment in challenging markets. Both the increasing mutual knowledge of the workings of Sustainable Finance institutions had a strong interest in collaboration, the two institutions have created a solid foundation Cultivating Resilience: Innovations but to take the partnership to the next level, they to scale up IFC’s partnership with the EC, which in Agribusiness needed to reconcile their business practices —  is fast becoming IFC’s largest blended finance Fostering Financial Inclusion: including different accounting standards. contributor for middle-income countries. Empowering Women Entrepreneurs and Refugee Communities IFC’s investment in the EC partnership began In FY24, IFC leveraged the EC partnership to Laying the Groundwork for to bear fruit in 2020 with the signing of the deepen its impact in Ukraine, with the signing of Economic Growth Small Loan Guarantee Program, which provided an agreement for €90 million in blended finance Pathways to Prosperity €58 million to IFC to enable banks in Africa and guarantees to support investments that will help the European Neighborhood to better assist drive an inclusive and sustainable reconstruction. Complementary Capabilities: An Integrated Approach to Supporting underfinanced sectors such as SMEs, including Small Enterprises those led by young entrepreneurs and women. This additional support will underpin our Scaling Impact Through Equity: A 45-Year commitment to shift toward longer-term Journey of Partnership and Growth The next step — or leap — was in 2023 when the financing in the country, including capital Shared Visions for Urban Sustainability European Fund for Sustainable Development Plus investment in key areas such as food production, (EFSD+) allocated over €300 million in guarantees construction materials, energy, shipping, Powering Progress: Pioneering Platforms for Energy Access and technical assistance to IFC’s Better Futures small and medium enterprises, and digital Program. This IFC-implemented blended finance infrastructure to support Ukraine’s recovery. Beyond Borders: Forging a Path for facility focuses on de-risking investments that Inclusive Finance help build resilient livelihoods — especially in the Reimagining Development Finance context of conflict and fragility — and promote Digital Dividends: Mapping Africa’s Tech decarbonization and climate resiliency. Transformation Photos: Partnering with the European Commission The Knowledge Network: Accelerating boosts IFC’s impact in Ukraine, backing blended Sustainable Finance Globally finance guarantees for investments to drive inclusive Stronger Together: Amplifying Impact reconstruction, including through digital startups and Through Collaboration women-owned small businesses. CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  44 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Fostering Financial Inclusion: Empowering Women Entrepreneurs and Refugee Communities Laying the Groundwork for Economic Growth Pathways to Prosperity Complementary Capabilities: An Integrated Approach to Supporting Small Enterprises Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth Shared Visions for Urban Sustainability Powering Progress: Pioneering Platforms for Energy Access Beyond Borders: Forging a Path for Inclusive Finance Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  45 A CATALYST FOR IFC 2024 ANNUAL REPORT TRANSFORMATION LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission In our role as a catalyst for transformation, IFC From unlocking the potential of Africa’s digital is at the forefront of reshaping development economy to fostering global collaboration in Pioneering Platforms for Sustainable Finance finance and private sector engagement in sustainable finance and forging transformative emerging markets and developing economies. We partnerships among multilateral development Cultivating Resilience: Innovations in Agribusiness harness the power of financial and technological banks, we’re driving a paradigm shift in how Fostering Financial Inclusion: innovation, leverage our global influence, and development challenges are addressed. Empowering Women Entrepreneurs and provide thought leadership to accelerate positive Refugee Communities These catalytic efforts are at the core of our change at scale. Laying the Groundwork for mission. The stories that follow demonstrate how Economic Growth Our initiatives go beyond funding individual IFC, as a catalyst, is turning ideas into action, Pathways to Prosperity projects. By making the business case for challenges into opportunities, and local innovations innovative solutions, pioneering new models, and into global solutions. They showcase our Complementary Capabilities: An Integrated Approach to Supporting creating platforms that others can adapt and commitment to not just participate in the future of Small Enterprises replicate, we’re igniting systemic change that development finance, but to actively shape it. Scaling Impact Through Equity: A 45-Year ripples across entire sectors and regions. Journey of Partnership and Growth Shared Visions for Urban Sustainability REIMAGINING Powering Progress: Pioneering Platforms for Energy Access Beyond Borders: Forging a Path for Inclusive Finance DEVELOPMENT Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation FINANCE The Knowledge Network: Accelerating Photo: With IFC’s support, construction company Sustainable Finance Globally Rhodes PNG in Papua New Guinea is increasing women’s access to higher paying jobs and leadership Stronger Together: Amplifying Impact roles in the local construction industry. Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  46 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Fostering Financial Inclusion: Empowering Women Entrepreneurs and Refugee Communities Laying the Groundwork for Economic Growth Pathways to Prosperity Complementary Capabilities: An Integrated Approach to Supporting Small Enterprises Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth Shared Visions for Urban Sustainability Powering Progress: Pioneering Platforms for Energy Access Beyond Borders: Forging a Path for Inclusive Finance Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  47 IFC 2024 DIGITAL DIVIDENDS ANNUAL REPORT LEADERSHIP PERSPECTIVES MAPPING AFRICA’S TECH RESULTS STRATEGY IN ACTION TRANSFORMATION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for IFC applies its expertise to help transform the digital Crucially, the research establishes a strong positive Sustainable Finance landscape across Africa. The landmark report, Digital correlation between advanced digitalization and business Cultivating Resilience: Innovations Opportunities in African Businesses, released at the productivity. The data suggests that more intensive use in Agribusiness 11th Africa CEO Forum in Kigali, Rwanda, in May 2024, of digital technologies can explain up to 30 percent of Fostering Financial Inclusion: exemplifies IFC’s role in sparking new ideas and making firm-level productivity differences, even after accounting Empowering Women Entrepreneurs and Refugee Communities the business case for innovative models that can drive for size, sector, and location. widespread change. Laying the Groundwork for Economic Growth By providing this data-driven perspective, IFC is informing This report reveals the untapped potential of digitalization a shift in how businesses, policymakers, and investors Pathways to Prosperity across the continent. While Africa has been a pioneer in approach digital transformation in Africa and, in turn, Complementary Capabilities: An mobile payments, many firms still struggle with the costs drive economic growth and job creation across the Integrated Approach to Supporting and complexities of broader technological adoption. IFC’s continent. The report outlines actionable strategies, from Small Enterprises research illuminates a path forward, highlighting that investing in digital infrastructure to funding tech startups Scaling Impact Through Equity: A 45-Year over 600,000 formally registered firms and 40 million that offer user-friendly, affordable digital solutions. Journey of Partnership and Growth Photos: From infrastructure workers to small microbusinesses — representing about 20 percent of business owners, Africa’s digital revolution Shared Visions for Urban Sustainability African businesses — are primed for digital upgrades. Through such thought leadership, IFC is paving the creates opportunities across sectors. Powering Progress: Pioneering Platforms way for scalable solutions to one of Africa’s defining for Energy Access It also sheds light on the persistent challenge of development challenges, demonstrating how data and Beyond Borders: Forging a Path for “incomplete digitalization,” where fewer than one in three analysis can be powerful tools in unlocking the continent’s Inclusive Finance digitally engaged firms use technology intensively for digital potential. Reimagining Development Finance business purposes. This underutilization is particularly pronounced among small and micro enterprises, which Digital Dividends: Mapping Africa’s Tech Transformation form the backbone of Africa’s economy. The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  48 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Fostering Financial Inclusion: Empowering Women Entrepreneurs and Refugee Communities Laying the Groundwork for Economic Growth Pathways to Prosperity Complementary Capabilities: An Integrated Approach to Supporting Small Enterprises Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth Shared Visions for Urban Sustainability Powering Progress: Pioneering Platforms for Energy Access Beyond Borders: Forging a Path for Inclusive Finance Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  49 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Fostering Financial Inclusion: Empowering Women Entrepreneurs and Refugee Communities Laying the Groundwork for Economic Growth Pathways to Prosperity Complementary Capabilities: An Integrated Approach to Supporting Small Enterprises Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth Shared Visions for Urban Sustainability Powering Progress: Pioneering Platforms for Energy Access Beyond Borders: Forging a Path for Inclusive Finance Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  50 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES THE KNOWLEDGE NETWORK RESULTS STRATEGY IN ACTION ACCELERATING Accelerating Impact SUSTAINABLE FINANCE GLOBALLY Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations IFC is harnessing the power of global collaboration 2024, the network released its latest Global The impact of this collaborative approach is evident in the in Agribusiness through the Sustainable Banking and Finance Network Progress Brief and launched the innovative SBFN swift progress made by SBFN countries. Since 2021, all Fostering Financial Inclusion: (SBFN). This IFC-led platform exemplifies how knowledge Data Portal, offering unprecedented insights into member nations have introduced climate- and nature- Empowering Women Entrepreneurs and related risk management frameworks, translating Paris sharing and capacity building can drive systemic change sustainable finance trends across 66 countries. Refugee Communities across the financial sector in emerging markets and Agreement commitments into tangible action. Notably, Laying the Groundwork for developing economies. The Global Progress Brief provides deep, qualitative 39 countries have implemented frameworks aligning Economic Growth insights into challenges and achievements, while the environmental and social risk management in investment Pathways to Prosperity The SBFN, with its 91 member institutions Data Portal enables real-time benchmarking of initiatives decisions with international standards, simultaneously Complementary Capabilities: An representing over $68 trillion in assets, has become across member countries. Together, they form a unique combating greenwashing in sustainable finance Integrated Approach to Supporting a powerhouse for identifying opportunities and resource for financial systems, policymakers, and instruments. SBFN’s work helped the market for thematic Small Enterprises tracking progress in sustainable finance. In April regulators worldwide. bonds linked to sustainability to reach $759 billion across Scaling Impact Through Equity: A 45-Year 45 SBFN countries as of December 2023. Journey of Partnership and Growth By facilitating this global knowledge exchange, IFC is Shared Visions for Urban Sustainability catalyzing a transformation in how financial institutions Powering Progress: Pioneering Platforms approach sustainability. The network is not just sharing for Energy Access information; it’s fostering a collective shift in mindset, Beyond Borders: Forging a Path for where climate and environmental risks are recognized as Inclusive Finance critical to financial system stability, and challenges are reframed as opportunities for developing new sustainable Reimagining Development Finance finance markets. Digital Dividends: Mapping Africa’s Tech Transformation Photo: IFC investment helped the public transit system in Santiago, Chile cut greenhouse gas emissions by building one The Knowledge Network: Accelerating of the world’s largest fleets of e-buses. Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  51 IFC 2024 STRONGER TOGETHER ANNUAL REPORT LEADERSHIP PERSPECTIVES AMPLIFYING IMPACT THROUGH RESULTS STRATEGY IN ACTION COLLABORATION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for IFC is pioneering a new model for multilateral development bank The GEMs Consortium, which has grown to 25 MDB and DFI Sustainable Finance (MDB) collaboration, demonstrating how strategic alliances can members as of May 2024, publishes comprehensive credit risk amplify impact and drive systemic change. Two key partnerships data that is transforming perceptions of emerging market Cultivating Resilience: Innovations in Agribusiness showcase this approach: a four-year collaboration with the Inter- investments. The March 2024 GEMs publication on Recovery American Development Bank (IDB) and a new agreement with the Statistics revealed that default rates in emerging markets Fostering Financial Inclusion: Empowering Women Entrepreneurs and European Bank for Reconstruction and Development (EBRD). are comparable to B-rated companies in developed markets, Refugee Communities challenging long-held assumptions about risk in these economies. Laying the Groundwork for The WBG/IDB collaboration centers on the Amazon Finance Economic Growth Network, co-created by IFC and IDB Invest. This network unites IFC is now working with GEMs partners to further enhance Pathways to Prosperity 47 financial institutions to deliver innovative solutions supporting the granularity and scope of the data, with plans for more a sustainable Amazon economy. Its inaugural meeting in disaggregated statistics by region, income groups, and sectors Complementary Capabilities: An June 2023 marked a shift in addressing complex regional in upcoming publications. These efforts are complemented Integrated Approach to Supporting Small Enterprises challenges. The network aims to benefit over 2 million people by an in-depth market study to better understand investor across seven Amazon countries by 2030, exemplifying demands and explore avenues for even greater transparency. Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth collaborative problem-solving at scale. By bridging gaps between institutions, sectors, and Shared Visions for Urban Sustainability The World Bank Group’s new partnership with EBRD, signed in stakeholders, IFC is fostering more effective, efficient, and Powering Progress: Pioneering Platforms April 2024, aims to scale up results, building on existing strong impactful development solutions. These partnerships serve for Energy Access institutional ties. It identifies four key areas of cooperation: as models for driving systemic change, offering blueprints Beyond Borders: Forging a Path for climate, regional connectivity, economic resilience and recovery to address complex global challenges through collective Inclusive Finance in Ukraine, and mutual reliance to promote private-sector co- action, innovation, and data-driven decision-making. Reimagining Development Finance financing, aiming to deliver greater efficiency and effectiveness. Digital Dividends: Mapping Africa’s Tech Transformation Beyond these partnerships, IFC is leading a groundbreaking The Knowledge Network: Accelerating initiative to enhance credit risk transparency in emerging Photo: The Amazon Finance Network, jointly created by IFC and Sustainable Finance Globally markets. As a co-founder and driving force behind the Global IDB Invest, brings together 47 financial institutions with new business ideas for sustainable development in the eight Amazon Emerging Markets (GEMs) Risk Database Consortium, IFC Stronger Together: Amplifying Impact countries. One member, IFC partner BBVA Microfinance Foundation, Through Collaboration is spearheading efforts to provide unprecedented insights supports indigenous women entrepreneurs in Peru’s Amazon region into the credit risk profiles of emerging economies. through client microfinance institution Financiera Confianza. CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  52 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION Accelerating Impact Unlocking Capital Mobilization: At the Heart of IFC’s Mission Pioneering Platforms for Sustainable Finance Cultivating Resilience: Innovations in Agribusiness Fostering Financial Inclusion: Empowering Women Entrepreneurs and Refugee Communities Laying the Groundwork for Economic Growth Pathways to Prosperity Complementary Capabilities: An Integrated Approach to Supporting Small Enterprises Scaling Impact Through Equity: A 45-Year Journey of Partnership and Growth Shared Visions for Urban Sustainability Powering Progress: Pioneering Platforms for Energy Access Beyond Borders: Forging a Path for Inclusive Finance Reimagining Development Finance Digital Dividends: Mapping Africa’s Tech Transformation The Knowledge Network: Accelerating Sustainable Finance Globally Stronger Together: Amplifying Impact Through Collaboration CRITICAL FUNCTIONS IFC ANNUAL REPORT 2024  53 MEASURING UP: IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION CRITICAL FUNCTIONS OUR IMPACT Measuring Up: Our Impact Sustainability Accountability and Oversight Diversity, Equity, and Inclusion Measuring the results of our work and evaluating our effectiveness are fundamental • Strengthens our capacity to deliver an optimal mix of projects that generate both high Auditor’s Report to IFC’s approach to development. With the introduction of the new World Bank Group development impact and solid financial returns; and Scorecard, IFC is refining how it measures and communicates the development impact • Provides an “end-to-end” approach to results measurement by linking ex-ante Letter to the Board of Governors of its operations. The Scorecard indicators are reported using operation-specific data, assessments with the learning and accountability function. tracking incremental changes from the time of IFC engagement, measuring both expected Stay Connected Since its introduction in FY18, the AIMM framework has delivered over 2,700 ex-ante and achieved results. Most of the indicators focus on the number of people who benefited Credits from IFC interventions. IFC used historical data to report on these indicators this year and and 5,700 portfolio impact scores. The framework is being continuously refined and will continue to enhance its tracking methods to better serve the Scorecard. streamlined to meet business needs. Climate-related Financial Disclosures Compensation and Benefits IFC’s impact assessment tool, the Anticipated Impact Measurement and Monitoring AIMM SCORES (AIMM) system, enables IFC to better define, measure, rate, and monitor the development Financial Commitments to impact of each investment project. In FY24, IFC committed 288 investment projects that received ex-ante AIMM scores. The IFC Trust Funds table below summarizes ratings over the past two years. The ex-ante AIMM rating system, which assesses a project’s expected impact, is fully Funding integrated into IFC’s investment approval processes and allows development impact Investment Ex-Ante AIMM Ratings for Projects Financial Performance Summary considerations to be weighed against a range of strategic objectives, including volume, financial return, risk, and thematic priorities. Committed in FY24 and FY23 For projects in IFC’s portfolio, ex-ante AIMM scores are transitioned to a portfolio AIMM score that is reviewed annually. AIMM portfolio monitoring assesses a project’s FY24 FY23 AIMM Rating Categories (288 Projects) (244 Projects) performance and the underlying risks to achieving expected development impact using results data from assigned outcome indicators. By comparing changes in indicator results Excellent 12% 14% to both ex-ante targets and AIMM sector framework benchmarks, we are able to link the Good 80% 68% ex-ante AIMM score to its evolving portfolio AIMM score and measure the extent to which Satisfactory 8% 18% the expected development impact is realized. Low 0% 0% The AIMM system helps operationalize IFC’s strategy by providing a robust operational framework that: The FY24 AIMM portfolio comprises 1,229 active projects that have received ex-ante AIMM scores. The table that follows summarizes ratings over the past two years. • Improves our ability to identify and design projects that maximize our development Please note that AIMM figures presented in this report are subject to change in subsequent years due to impact; adjustments in project attributes such as region, commitment year, product subtype, or industry classification • Sets ambitious targets and incentives; post-publication; however, these changes are not expected to be significant. IFC ANNUAL REPORT 2024  54 IFC 2024 Investment Portfolio AIMM Ratings Advisory Services Development Effectiveness Score ANNUAL REPORT in FY24 and FY23 by Region %, FY24 vs. FY231 LEADERSHIP PERSPECTIVES RATING DISTRIBUTION Region FY24 FY23 RESULTS FY24 FY23 Africa 67% 49% AIMM Rating Categories (1,229 Projects) (1,129 Projects) STRATEGY IN ACTION South Asia 79% 77% Excellent 12% 11% East Asia and the Pacific 75% 53% CRITICAL FUNCTIONS Good 56% 53% Latin America and the Caribbean 85% 67% Measuring Up: Our Impact Satisfactory 22% 25% Central Asia and Türkiye 100% 100% Sustainability Low 10% 10% Middle East 91% 88% Accountability and Oversight Detailed AIMM scores by region and industry, as well as selected IFC client reach can be Europe 64% 67% Diversity, Equity, and Inclusion found on IFC’s Annual Report website. Global 100% 50% IFC Total 74% 61% Auditor’s Report This is the sixth year IFC is publishing portfolio AIMM scores for investment projects under supervision. Changes in portfolio AIMM scores inform investment managers of Letter to the Board of Governors progress in delivering development outcomes for active investment projects. The FY24 Stay Connected average portfolio AIMM score was 49. The average ex-ante AIMM score at approval for these same projects was 51, which suggests that at the portfolio level, overall, these Advisory Services Development Effectiveness Score Credits projects are delivering on expected development impact during implementation. by Business Area %, FY24 vs. FY232 Climate-related Financial Disclosures Ratings of Advisory Projects: Development effectiveness of advisory projects is assessed  Business Area FY24 FY23 Compensation and Benefits at project completion. In FY24, 134 advisory projects qualified for ex-post evaluation and Financial Institutions Group 87% 72% were self-assessed for development-effectiveness ratings. Seventy-four (74) percent of Financial Commitments to the projects were rated mostly successful or better, above the IFC target of 65 percent. Manufacturing Agribusiness & Services 86% 67% IFC Trust Funds Infrastructure & Natural Resources 50% 71% There was a notable increase in the number of advisory projects that qualified for ex-post Funding Disruptive Technologies and Funds 50% 0% evaluation between FY23 and FY24, increasing from 98 to 134. The FY24 overall success Financial Performance Summary rates for the advisory services portfolio is trending higher in comparison to FY23, an Transaction Advisory 70% 53% indication of recovery of the advisory projects in most regions from the effect of the Other Advisory, including Environmental, Social COVID-19 pandemic. & Governance 92% 89% Country Advisory and Economics 50% 43% IFC Total 74% 61% 1. The FY23 DE for Global is based on less than 5 rated projects. The FY24 DE for Central Asia & Türkiye and Global are based on less than 5 rated projects. 2. The FY23 DE for Infrastructure & Natural Resources, Disruptive Technologies and Funds and Other Advisory, including Environmental, Social & Governance are based on less than 10 rated projects. The FY24 DE for Disruptive Technologies and Funds and Infrastructure & Natural Resources are based on less than 10 rated projects. IFC ANNUAL REPORT 2024  55 IFC 2024 SETTING STANDARDS FOR IMPACT INVESTING ALIGNING WITH THE SUSTAINABLE DEVELOPMENT ANNUAL REPORT In 2019, IFC conceptualized and launched the Operating Principles for Impact GOALS (SDGs) LEADERSHIP PERSPECTIVES Management (Impact Principles) that have become the market standard for impact IFC operations contribute to several SDGs through direct investments and advisory investors. By adhering to these principles, impact investors can help ensure that their services. Integral to IFC’s mandate and aligned with the World Bank Group’s goals are RESULTS investments meet a high standard for social and environmental impact, which can SDGs 1 and 10: “No Poverty” and “Reduced Inequalities.” At the strategic sector level, IFC STRATEGY IN ACTION translate into more effective use of capital. Beginning with 58 founding signatories, the promotes projects in infrastructure, agriculture, financial inclusion, health, and education Impact Principles have grown significantly, and the number of signatories has tripled — aligned with SDGs 2, 3, 4, 6, 7, and 9. CRITICAL FUNCTIONS to 181. The signatories come from 41 countries and represent $547 billion in assets Measuring Up: Our Impact focused on impactful investments. IFC hosted the Secretariat for the Impact Principles until October 2022. After successfully incubating the initiative, IFC transferred hosting Sustainability responsibilities to the Global Impact Investing Network to create greater outreach and synergistic opportunities with private sector impact investors. As the founding signatory Accountability and Oversight and host of the Impact Principles, IFC continues to remain a critical core member of the Diversity, Equity, and Inclusion Advisory Board of the Impact Principles. IFC also actively partners with private investors to mobilize new sources of finance — aligned with SDG 17. IFC continues to promote job creation and economic growth, gender Auditor’s Report In addition, IFC is a founding partner of the Harmonized Indicators for Private Sector equality, cities development, environmental and social sustainability, and climate-change Letter to the Board of Governors Operations (HIPSO). The 29 development finance institutions (DFIs) that comprise the adaptation and mitigation — aligned with SDGs 8, 5, 11, 14, 15, 12, and 13 respectively. partnership have developed common sector and thematic metrics, with standardized IFC’s clients’ contribution to the SDGs is highlighted on the IFC SDG Dashboard on IFC’s Stay Connected definitions, that could be leveraged by HIPSO members, as well as the signatories to website. the Impact Principles and the broader impact investing community. Since its creation Credits in 2004, HIPSO has become a community of practice for DFIs on impact measurement Climate-related Financial Disclosures and management. It is a forum for sourcing best practice, testing new ideas, and sharing knowledge. It has provided the platform for a continuous culture of peer learning Compensation and Benefits on impact management systems, theories of change and mapping evidence gaps, Financial Commitments to harmonizing data collection templates, and methodologies for evaluations of private sector operations. In FY24, HIPSO revised metrics for infrastructure including energy, IFC, together with other DFIs (also HIPSO partners), has developed a common IFC Trust Funds transportation, and oil and gas sectors. methodology to align DFI contributions with the SDGs, available for broader use by Funding private impact investors and corporates. Additional information is available at: https://indicators.ifipartnership.org/dashboard/. Financial Performance Summary LESSONS FROM RESEARCH, ANALYTICS, AND SELF-EVALUATION PROGRAMS IFC uses a combination of research, data analytics, and self-evaluations to fill knowledge gaps and provide real-time solutions to clients and operational staff. These insights generate important lessons that inform new client engagements. Notable examples from FY24 are detailed below: • IFC worked with the United Nations Educational, Scientific and Cultural Organization (UNESCO) on a study that demonstrated substantial disparities in the employment outcomes for recent male and female graduates. The study analyzed a series of surveys that IFC has implemented at more than 50 tertiary education institutions across more than 20 countries. These surveys were conducted as part of its Vitae advisory program. Vitae is an ongoing program in which IFC advises and assists colleges IFC ANNUAL REPORT 2024  56 IFC 2024 and universities to enhance their students’ employability and support their transition • MSME Finance Gap: An updated estimation and evolution of the MSME Finance Gap ANNUAL REPORT to the job market. The statistical analysis of the Vitae surveys suggests that a female in Emerging Markets and Developing Economies (EMDEs). The report estimates that graduate is more likely to be unemployed, and earn less, than a male graduate. This for 119 EMDEs around the world, there is a potential demand for MSME finance of LEADERSHIP PERSPECTIVES result holds even if she studied in the same field, attended the same institution, was the $10.3 trillion as of 2019. This compares to the credit supply of $4.6 trillion. same age, had similar level of experience, and graduated in the same year. The study Consequently, there exists a financing gap attributed to formal MSMEs in EMDEs of RESULTS found that the earnings gaps between male and female graduates were greater in the $5.7 trillion, which is equivalent to 19 percent of the gross domestic product (GDP) and STRATEGY IN ACTION high-earning science, technology, engineering and mathematics (STEM) fields such as 20 percent of the overall private sector credit supplied by banks to these economies. It engineering and information and communication technology (ICT) and that these gaps utilizes the same methodology as in the previous report (2017) and also re-uses the CRITICAL FUNCTIONS are greater for older graduates in their 30s and 40s. The study describes a number of same conceptual framework, and data sources. Thus, this report represents a first Measuring Up: Our Impact interventions that tertiary educational institutions, employers and governments can attempt at tracking the evolution of the MSME finance gap over time. Over the four- implement to overcome these gaps. For tertiary educational institutions, it is critical year period from 2015 to 20191, the report reaches the alarming conclusion that the Sustainability that they implement tracer studies that can be used to understand the problem and MSME finance gap increased from $4.4 trillion (17.2 percent of GDP) to $5.7 trillion their progress toward resolving it. Other interventions that tertiary institutions can (19 percent of GDP) in EMDEs — on average increasing by over 6 percent annually. Accountability and Oversight implement include introducing gender-responsive career support and leveraging career Although the supply of financing meaningfully increased by 7 percent annually from Diversity, Equity, and Inclusion resources and guidance to counter gender-based biases and misconceptions. $3.6 trillion (14 percent of GDP) to $4.6 trillion (16 percent of GDP) in 2019, this was largely due to the outsized influence of China. However, it was dwarfed by the increase Auditor’s Report • A case study of IFC’s investment in NephroPlus, Asia’s largest network of dialysis in potential demand. A report, database and dissemination events are forthcoming. Letter to the Board of Governors centers. IFC first invested in NephroPlus in 2014 with a direct equity investment of $7 million, which was followed by $3.1 million in 2016. At the time of investment, the gap Stay Connected in access to quality dialysis care in India was very large: there were only 1,500 dialysis centers available in India and concentrated in Tier-1 cities. Quality standards were Credits varied, and access was more restricted for individuals not able to pay out of pocket. Climate-related Financial Disclosures IFC’s investment was expected to support the company’s expansion in India, which in turn was expected to increase access to affordable high quality dialysis care in India Compensation and Benefits and beyond. A case study conducted in 2024 to review NephroPlus’ development impact Financial Commitments to achievements found that the company-run dialysis centers had increased from 26 at the IFC Trust Funds time of investment to 440 in 2024 across 5 countries in Asia. The number of patients reached increased from 1,151 at investment to over 48,000 and exceeding the initial goal Funding of nearly 9,000. In addition, a survey conducted in partnership with the World Bank, leveraging a random sample of 2,500 NephroPlus patients in India found that one out of Financial Performance Summary every three were under the international poverty line for lower-middle-income countries of $3.2 per day. Following NephroPlus’ success, in both financial and developmental terms, important lessons learned have emerged on how companies can effectively reach the underserved while having financial success: the first is intentionality, the company from the start had a vision of creating a service that would be accessible particularly for individuals without the means to pay out of pocket; and the second is adaptability, the NephroPlus core business model transitioned from standalone private centers toward centers under public-private partnerships, which was key to enable access to individuals attending public hospitals that typically skew lower income in India. 1. 2019 is the most recent year data was available, given that country-representative, firm-level surveys were extremely limited during the period following COVID-19 (2020-2021). IFC ANNUAL REPORT 2024  57 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION CRITICAL FUNCTIONS SUSTAINABILITY Measuring Up: Our Impact Sustainability Accountability and Oversight Diversity, Equity, and Inclusion IFC has long provided leadership in shaping (E&S) risks. For nearly two decades, our Performance Progression Matrix and tip sheet for boards of directors Auditor’s Report Standards have served as a global benchmark. As of June for identifying and overseeing climate-related risks and the environmental, social, and corporate 30, 2024, nearly 130 financial institutions across the opportunities, IFC has been supporting its investment Letter to the Board of Governors governance (ESG) landscape, from pioneering world have become signatories to the Equator Principles, and advisory clients in implementing sound climate private sector sustainability safeguards to which were built on IFC’s Performance Standards. Beyond governance practices to facilitate their climate action Stay Connected this, a growing number of financial institutions and and reporting. Credits establishing rigorous ESG risk-management their sustainability frameworks have either adopted Climate-related Financial Disclosures practices. The Sustainability Framework and or been influenced by IFC’s Performance Standards. In PARTNERSHIPS Corporate Governance Methodology anchor September 2023, IFC released the Guidance Note on Compensation and Benefits Financial Intermediaries, which provides enhanced clarity To amplify its impact, IFC partners with leading ESG IFC’s ESG risk-management approach. They and practical explanations on the applicability of the IFC networks and organizations. Financial Commitments to establish a solid foundation for growing IFC’s Sustainability Framework to financial intermediaries. IFC Trust Funds Sustainable Banking and Finance Network (SBFN). own business sustainably, as well as building The World Bank Group’s Environmental, Health, and SBFN is a global knowledge-sharing and capacity Funding the capacity of our clients, and the future building platform for financial regulators and industry Safety (EHS) Guidelines are the technical reference Financial Performance Summary documents of Good International Industry Practice associations from emerging markets. IFC has continued industry leaders in emerging markets and (GIIP) for financial institutions, companies, and ESG to serve as the Secretariat and knowledge partner for developing economies. practitioners across the globe. In close collaboration with SBFN. In April 2024, the network released its latest Global the World Bank and MIGA, we have begun updating and Progress Brief and launched the innovative SBFN Data As the global sustainability agenda advances, IFC has modernizing the guidelines to reflect the current GIIP, Portal, offering unprecedented insights into sustainable continued to innovate. Whether breaking new ground including strengthened guidance on managing climate, finance trends across 66 countries. with digital tools that monitor project impact more community, and occupational health and safety issues. efficiently or forging partnerships to tackle emerging ESG The updated EHS Guidelines for Airports, Electric Power International Financial Reporting Standards (IFRS) frontiers, IFC is playing a catalytic role in establishing Transmission and Distribution, and Health Care Facilities Foundation. The IFRS Foundation’s International standards for private sector growth and implementing are expected to be released for public consultation in Sustainability Standards Board (ISSB) issued two new sustainability disclosure standards, thus channeling FY25, followed by the General EHS Guidelines. Other inaugural standards in June 2023 with the objective financing to create more sustainable markets. industry-sector EHS guidelines will be updated in FY25 of delivering consistency and comparability of and thereafter. sustainability-related financial disclosures for capital IFC AS A STANDARD SETTER markets. In June 2024, IFC and the IFRS Foundation Corporate governance considerations are crucial for established a strategic partnership to strengthen At the core of our Sustainability Framework are IFC’s effective decision-making and implementation of the sustainable capital markets by improving sustainability Performance Standards, which define how our clients sustainability agenda. Through the Climate Governance and climate reporting. Recognizing that jurisdictions avoid, mitigate, and manage environmental and social IFC ANNUAL REPORT 2024  58 IFC 2024 making up approximately 55 percent of global gross We continually develop open-source public goods on good rapidly identifies over 1,000 climate, gender, and ESG ANNUAL REPORT domestic product have already taken steps toward practices related to sustainability issues. In addition to risk terms and predicts sentiments based on context. IFC using these standards, the partnership will focus on thematic knowledge products covering topics such as specialists use insights drawn from MALENA to support LEADERSHIP PERSPECTIVES implementing programs to promote and build capacity biodiversity, sustainable finance, gender diversity, and ESG due diligence and portfolio monitoring. The project for the consistent application of the IFRS Sustainability resettlement, we have released new knowledge products was selected as a finalist in the Monetary Authority of RESULTS Disclosure Standards across EMDEs. This includes such as “Advancing UN Sustainable Development Goals Singapore’s highly competitive AI in Finance 2023 Global STRATEGY IN ACTION developing toolkits and research as well as delivering through IFC’s Environmental, Social, and Governance FinTech Hackcelerator program and was showcased at training to encourage sustainability reporting. The Standards,” which serves as a private sector guide and the Singapore Fintech Festival to 66,000 attendees in CRITICAL FUNCTIONS partnership also outlines plans to provide technical dataset to assist the private sector in leveraging ESG November 2023. IFC has also launched a free, public-good Measuring Up: Our Impact assistance and tailored support to help jurisdictions risk-management approaches to contribute to achieving version of MALENA, available at: www.malena.ifc.org. adopt and implement these standards effectively. the SDGs. IFC is also helping companies build capacity Sustainability to translate sustainability commitments into practical, Designed to enhance ESG due diligence and portfolio Corporate Governance Development Framework (CGDF). measurable financial decisions. Our ESG resources are operations by improving consistency and efficiency Accountability and Oversight IFC is an active member in the CGDF — a joint initiative valued by our clients and the broader market, contributing of analysis, IFC continues to develop the new ESG360 Diversity, Equity, and Inclusion of 33 Development Finance Institutions (DFIs) that seeks to more than 750,000 page views and 231,000 downloads platform (formerly known as the Sustainability Rating to develop a common approach on addressing corporate in FY24. Tool) to be a one-stop-shop for ESG and operation teams Auditor’s Report governance risks and opportunities in DFI investment with respect to ESG data and to support due diligence Letter to the Board of Governors operations. In 2023, IFC led the CGDF Working Group We are also continuing to strengthen IFC’s E&S staff and monitoring of IFC’s projects. Following a successful and, in March 2024, IFC hosted the annual meeting capacity. Since June 2023, a self-assessment tool pilot phase in FY23 and FY24, ESG360 has now been Stay Connected featuring the launch of an updated CGDF Corporate that provides a structured personalized learning rolled out to all IFC projects, including new business and Governance Progression Matrix. The matrix is based on plan was made accessible to our E&S teams for portfolio projects. ESG360 also supports corporate Credits the IFC Corporate Governance Methodology and guides their continuous professional development. This is governance diligence and portfolio. The corporate Climate-related Financial Disclosures companies, investors, regulators, corporate governance supplemented by our Professional Learning Program, governance component of the ESG360 platform includes evaluators, and other stakeholders in assessing and which targets the core competencies that our E&S the generation of risk categorization, system-facilitated Compensation and Benefits improving a company’s governance framework. specialists need for delivering quality, consistency, information gathering from clients, as well as a system Financial Commitments to and rigor in the application of IFC’s E&S policies and that allows for easy identification of red flags and IFC Trust Funds International Labour Organization (ILO). IFC continues procedures and in the review of clients’ performance potential mitigants. to collaborate with ILO and international global unions to and implementation of the Performance Standards. Funding share knowledge on sectoral and thematic labor issues IFC also provides leadership through its Beyond the and promote robust labor risk management. In May 2024, In January 2024, the world’s first online training program Balance Sheet Sustainability Disclosure Platform. Financial Performance Summary IFC and ILO organized a country-level workshop in Cairo, on Applying the IFRS Sustainability Disclosure Standards Launched in October 2023, Beyond the Balance Sheet is Egypt that discussed synergies and differences between was launched by IFC, the IFRS Foundation, and the UN an IFC-facilitated program that helps companies, banks, local law and international good practice. Similar events Sustainable Stock Exchanges Initiative. Over 5,000 regulators, and stock exchanges develop sustainability have been planned for FY25. participants in ten EMDEs have already taken this course. and climate reporting necessary to remain relevant in a fast-changing and data-driven world. In particular, the CAPACITY BUILDING INNOVATIVE TOOLS online platform is designed to guide emerging-market companies on how to implement leading disclosure and Through our ESG advisory services, we support our clients IFC continues to innovate with using artificial intelligence transparency regulations and practices. This online and the broader market in navigating ESG challenges. (AI) and digital technology tools to monitor and amplify ecosystem includes a digital toolkit, e-learning courses, Among other initiatives, in May 2024, IFC organized the ESG impacts. In FY22, IFC launched Machine Learning ESG self-assessment tools, and abundant sources to navigate first of its train-the-trainer events for representatives Analyst (MALENA), an AI-powered platform that extracts the contemporary sustainability reporting landscape. of partner institutions who will be providing advisory meaningful insights from unstructured ESG data at scale, services in climate governance for boards in Europe and enabling rapid analysis, and increasing productivity. Central Asia. Trained by IFC on a unique set of emerging markets ESG data, MALENA uses natural language processing and IFC ANNUAL REPORT 2024  59 ACCOUNTABILITY IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION CRITICAL FUNCTIONS AND OVERSIGHT Measuring Up: Our Impact Sustainability Accountability and Oversight Diversity, Equity, and Inclusion Getting accountability right is critical for alignment in disclosure and reporting practices so that our closed seven cases — two after the assessment phase, stakeholders have accurate and up-to-date information one after monitoring a dispute resolution agreement, two Auditor’s Report IFC and our clients. IFC has taken several on our projects and are informed about the mission and after compliance appraisal where no merit was found Letter to the Board of Governors actions in recent years to allow us to better development impact of our work. for investigation, and two after compliance monitoring. address negative impacts felt by communities. During FY24, the Board approved four IFC Management Stay Connected Action Plans in response to CAO compliance investigations This year IFC launched a management level Accountability in Egypt, Kenya, Myanmar, and South Africa, respectively, Credits grievance response function where people OFFICE OF THE COMPLIANCE which are being monitored by CAO. More information is Climate-related Financial Disclosures affected by the environmental and social available on CAO’s website. ADVISOR OMBUDSMAN (CAO) Compensation and Benefits impacts of IFC projects may voice their People affected by the environmental and social impacts IFC’S MANAGEMENT LEVEL Financial Commitments to concerns directly to IFC. IFC continued IFC Trust Funds of IFC projects may voice their concerns to CAO, the GRIEVANCE RESPONSE its journey toward greater accountability Independent Accountability Mechanism for IFC. Reporting to the Board of Executive Directors, CAO’s mandate is External stakeholders can now submit E&S complaints Funding working with multiple stakeholders, directly to IFC if they believe an IFC project has or is likely to facilitate resolution of complaints in a fair, objective, Financial Performance Summary including civil society organizations (CSOs), and constructive manner, enhance environmental and to have adverse effects on them, their community, or their international financing institutions, clients, social project outcomes, and foster public accountability environment. This offers complainants an opportunity and learning to improve IFC’s environmental and social to engage with IFC and its clients to find solutions to and independent accountability mechanisms performance. CAO’s Dispute Resolution function helps their E&S concerns as quickly and efficiently as possible. (IAM) of multilateral development banks on resolve issues between affected people and IFC clients Responding to E&S complaints raised by external using a neutral, collaborative, problem-solving approach. stakeholders is critical to achieve positive E&S outcomes the proposed approach to remedial action and CAO’s Compliance function carries out reviews of IFC’s and to demonstrate IFC’s commitment to accountability. responsible exit principles. compliance with its environmental and social policies, assesses related harm, and recommends remedial actions IFC's Direct Complaints Directive and Procedures were In addition to enhancing its accountability, IFC continues where appropriate. Through its Advisory function, CAO approved in February 2024, and IFC's external Direct its journey toward greater transparency, recognizing provides advice to improve IFC’s systemic performance Complaints website and portal to receive E&S complaints that this is one of the most important actions we can on environmental and social sustainability. In FY24, launched in March 2024. Translation into multiple take as a development institution to maintain the trust CAO handled 65 cases related to IFC projects in 27 languages is underway. In FY24, IFC has received of our stakeholders and engage them in developing new countries. During the year, CAO received 16 new eligible 27 eligible Direct Complaints and manages cases solutions to complex development challenges. We remain complaints, of which four were referred to IFC. CAO in 12 countries. focused on working with our peers to achieve greater IFC ANNUAL REPORT 2024  60 IFC 2024 IFC operates in a complex and dynamic environment in countries affected by fragility, conflict, and violence. The Sanctions Board consists of seven members who ANNUAL REPORT and recognizes the important role that civil society For more information and the Group Internal Audit’s are all external to the Bank Group. It serves as the final organizations (CSOs) and other stakeholders play in annual and quarterly reports, visit www.worldbank.org/ decision maker in all contested sanctions cases across LEADERSHIP PERSPECTIVES advancing socially and environmentally responsible internalaudit. the Bank Group and issues publicly available and fully development. IFC is committed to proactive problem- reasoned decisions, which are not appealable. RESULTS solving and response to stakeholder complaints and SANCTIONS SYSTEM In FY24, the Bank Group sanctioned eight firms and STRATEGY IN ACTION concerns related to the E&S impacts of IFC’s investments. The World Bank Group’s Sanctions System addresses individuals through uncontested determinations of the CRITICAL FUNCTIONS INDEPENDENT EVALUATION allegations of fraud, corruption, collusion, coercion, and obstruction — collectively known as sanctionable Bank’s Chief Suspension and Debarment Officer, decisions of the Bank Group Sanctions Board, and settlement Measuring Up: Our Impact GROUP (IEG) practices — in Bank Group operations. agreements. It removed five entities from sanction. The Sustainability The Independent Evaluation Group (IEG) is an independent Bank Group also recognized 20 cross-debarments from Accountability and Oversight unit that reports directly to the World Bank Group’s INVESTIGATIVE other multilateral development banks, and 29 Bank Board of Directors. IEG’s mission is to strengthen World Group debarments were eligible for recognition by other Diversity, Equity, and Inclusion The Integrity Vice Presidency detects, deters, and multilateral development banks. Bank Group institutions through evaluations that prevents sanctionable practices by firms, individuals, inform strategies and future work — and lead to greater Auditor’s Report Bank Group staff and corporate vendors. It investigates Beyond the mandate of the World Bank Group’s Sanctions development effectiveness. IEG assesses the results allegations of fraud, corruption, and other sanctionable System, in FY24, INT investigated 66 cases of alleged Letter to the Board of Governors of IFC operations and offers recommendations for practices; when these are substantiated, it pursues fraud and corruption involving World Bank staff and improvement. IEG also contributes to internal learning by Stay Connected sanctions against external firms and individuals and corporate vendors, of which nine were substantiated. informing new directions, policies and procedures, and provides its findings for human resources decisions on Credits country and sector strategies. IEG’s annual reviews of disciplinary actions against staff. The Integrity Vice For more information about the World Bank Group World Bank Group results and performance and of other Climate-related Financial Disclosures Presidency also works to identify, monitor, and mitigate Sanctions System and its annual report, visit https:// major reports are available on IEG’s website at integrity risks in Bank Group operations, including lessons www.worldbank.org/en/about/unit/integrity- Compensation and Benefits https://ieg.worldbankgroup.org. learned through its investigations. vice-presidency. To report suspected fraud or Financial Commitments to corruption in World Bank Group–financed projects, IFC Trust Funds Oversight COMPLIANCE visit https://wbgcmsprod.microsoftcrmportals.com/ en-US/anonymous-users/int-fraud-management/ Funding GROUP INTERNAL AUDIT The Integrity Compliance Office, an independent create-new-complaint/?clear. unit within the Integrity Vice Presidency, reviews the Financial Performance Summary The Group Internal Audit (GIA) Vice Presidency unit is compliance posture of entities involved in the sanctions an independent function reporting to the President and process and engages with those working to meet overseen by the Board’s Audit Committee. Its assurance conditions for release from sanction. and advisory services help the Bank Group to more effectively serve clients. ADJUDICATIVE In FY24, GIA’s priority engagements included enterprise The Office of Suspension and Debarment is led by the risk management; grievances, complaints and World Bank’s Chief Suspension and Debarment Officer whistleblower channels; implementation of the Bank and provides the first level of adjudication in the Bank Group’s Climate Change Action Plan; and management Group’s Sanctions System. All sanctions cases that are of real estate. GIA continued to advance its Country not appealed to the Bank Group Sanctions Board are Assurance and Advisory Program and began developing resolved based on the Chief Suspension and Debarment its Ukraine Oversight Program. GIA partners with Officer’s determinations, summaries of which are bilateral, multilateral, and development organizations to available to the public. strengthen oversight in challenging contexts, including IFC ANNUAL REPORT 2024  61 DIVERSITY, EQUITY, IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION CRITICAL FUNCTIONS AND INCLUSION Measuring Up: Our Impact Sustainability Accountability and Oversight At IFC, we strive to build a diverse, DEI PRIORITIES ADVANCING OUR ​ capabilities, allowing us to monitor regional nationality representation. The scenario tool within the Dashboard Diversity, Equity, and Inclusion equitable, and inclusive workplace that Our diversity enables us to think globally and act locally as puts diversity data at managers’ fingertips, supporting Auditor’s Report empowers and celebrates our staff as they we develop innovative and cross-cutting solutions to deliver their respective departments’ hiring goals — specifically deliver impactful results in private sector on IFC’s mission. Looking back on FY24, we are proud of for women in senior grade groups. Letter to the Board of Governors advancing our three DEI strategic priorities, which reflect development. We remain committed to common needs across our organization’s global footprint: 3. Gender Equality is our commitment to building on our Stay Connected our priorities of gender equality, data- gender equality progress to sustain equity for women’s Credits driven action, and inclusive leadership. career development at IFC. 1. Inclusive Leadership is our commitment to enable and set expectations for all staff in supervisory roles to In FY24, we continued to track the proportion of Climate-related Financial Disclosures women in leadership positions through our Gender Promoting diversity starts with tracking workforce lead by example and cultivate a values-based workplace Compensation and Benefits diversity data, which gives insight into our employees’ culture that fosters inclusion and belonging. Balance Index (GBI) score — a metric we use to promote, wide range of backgrounds, skills, and experiences. As measure, and track gender distribution across our Financial Commitments to The goal of the Inclusive Communication Learning four grade groups. For FY24, the GBI target was set at of June 30, 2024, IFC had nearly 4,500 employees, 54 IFC Trust Funds Program is to help staff use inclusive language to 0.89. As of June 30, 2024, the GBI stood at 0.896 — an percent of whom are women. Our staff represent more stand as allies to colleagues, build inclusive leadership increase of 0.07 percentage points since FY19. than 150 nationalities, work in over 100 countries, and capabilities, and create a sense of belonging for all at IFC. Funding speak more than 50 languages. In FY24, we launched additional modules that highlight In FY24, we introduced women hiring goals for senior staff Financial Performance Summary the role of inclusive communication in the recruitment to accelerate progress toward achieving our GBI targets. To achieve a more granular picture of our workforce and performance management processes. As of June We also further implemented our Gender Action Plan, representation, we rely on our ongoing iCount campaign. 30, 2024, 40 percent of employees had completed at including target areas such as making progress around WBG’s iCount initiative encourages staff to voluntarily least one Inclusive Communication module. Across three gender pay equity, our parental leave analysis, and the self-identify in terms of nationality, race and ethnicity, modules covering inclusive communication in recruitment, effectiveness of our Inclusive Communication Learning sexual orientation and gender identity, and disability performance management, and LGBTQI+ inclusion, 96 Program. The Inclusive Communication modules help to status. In FY24, iCount data enabled us to view workforce percent of staff who completed the modules indicated that increase staff awareness of potential gender biases, among diversity through different lenses: race and ethnicity, they gained new insights on using inclusive communication other unconscious biases, thereby supporting IFC’s efforts sexual orientation, generational diversity, and disability to mitigate unconscious biases. to achieve Economic Dividends for Gender Equality (EDGE) status. The iCount data we collect helps us understand re-certification. with greater accuracy how IFC staff experience the 2. Data-Driven Action (previously referred to as workplace in terms of career progression and promotions, Data-Driven Accountability) is our commitment to For information on our staffing demographics and mobility, compensation, and performance management. strengthening our accountability and public disclosure programs to create a more diverse, equitable, and We use this data to take targeted actions aimed at efforts as we expand our data metrics beyond gender. inclusive work environment, visit www.ifc.org/en/about/ improving IFC’s workplace experience. diversity-equity-inclusion. Our data-driven approach enables us to create a culture of accountability through target setting and measuring progress toward achieving our DEI goals. In FY24, we continued to invest in evolving our IFC Dashboard IFC ANNUAL REPORT 2024  62 IFC 2024 AUDITOR’S REPORT LETTER TO THE BOARD STAY CONNECTED ANNUAL REPORT IFC has requested EY to perform a OF GOVERNORS IFC’s website, www.ifc.org, provides LEADERSHIP PERSPECTIVES limited assurance engagement on a The Board of Directors of IFC has comprehensive information on our RESULTS selection of non-financial information had this Annual Report prepared in work. It includes contact information STRATEGY IN ACTION disclosed in the Annual Report. The accordance with the Corporation’s for offices worldwide, news releases CRITICAL FUNCTIONS nature, scope, and conclusion of this by-laws. The President of IFC and and feature stories, data on results Measuring Up: Our Impact engagement are described in EY’s Chairman of the Board of Directors measurement, disclosure documents for Sustainability limited assurance report, available in has submitted this report with proposed investments, and key policies the online IFC Annual Report. the audited financial statements and guidelines. Accountability and Oversight to the Board of Governors. Diversity, Equity, and Inclusion The online version of IFC’s 2024 Annual Auditor’s Report Report, www.ifc.org/annualreport, Letter to the Board of Governors provides downloadable PDFs of Stay Connected all materials in this volume and translations as they become available. Credits Climate-related Financial Disclosures Compensation and Benefits Financial Commitments to IFC Trust Funds Funding Financial Performance Summary IFC ANNUAL REPORT 2024  63 IFC 2024 IFC ONLINE CREDITS ANNUAL REPORT IFC website IFC Annual Report Team: AR Photo Credits: LEADERSHIP PERSPECTIVES ifc.org Steven Shalita Front Cover Pages 32–33 RESULTS Annual Report Director, IFC Communications Dorte Verner/IFC Tiryaki Agro Gida Sanayi Ve ifc.org/AnnualReport & Outreach Ticaret A.S. of Türkiye STRATEGY IN ACTION Inside Cover Social Media Index Jim Rosenberg Incat Tasmania Pty Ltd. Page 35 CRITICAL FUNCTIONS ifc.org/SocialMediaIndex Manager, IFC Corporate Julia Schmalz/IFC Communications Page 3 Measuring Up: Our Impact World Bank Pages 36–37 Keith Weller Highland Capital Page 5 Sustainability Editor World Bank Page 38 Rob Wright HDFC Accountability and Oversight Writing, Design and Production Page 6 IFC Page 39 Diversity, Equity, and Inclusion Julia Schmalz IFC Photo Editor Page 9 Auditor’s Report Top row (L-R): Armando Pages 40–41 Rebecca Post Gallardo/IFC, Emídio Jozine/IFC, Djenno Bacvic/IFC Letter to the Board of Governors Writing, Research Narendra Shrestha/IFC, Isadora Romero/IFC. Second row (L-R): Pages 42–43 Stay Connected Damien Milverton Rachmatt/Shutterstock, Nadia Noella Elloh/IFC Writing Todres/IFC, Amartha Pages 44–45 Credits Vinit Tyagi Ajax, Oleksandra Sherhina/IFC Page 10 Online Coordinator Djenno Bacvic/IFC Climate-related Financial Disclosures Page 47 Melanie Mayhew Page 11 Robert Weber/IFC Compensation and Benefits Senior Communications Officer, IFC Creative Productions Pages 48–49 Financial Commitments to Pages 12–13 Julia Schmalz/IFC Julia Oliver World Bank IFC Trust Funds Reputational Risk and Issues Pages 50–51 Management Page 23 Enripoeta Yaldes, Factsory Funding Maria Galang/IFC for IFC Brenna Lundstrom Financial Performance Summary Transparency and Reporting Pages 24–25 Pages 52-53 ViaMobilidade BBVA Microfinance Foundation Design: Addison Pages 26–27 Back cover www.addison.com César Arredondo Great Egyptian Museum Printing: Pages 28–29 Sandy Alexander Sidy Talla/IFC www.sandyinc.com Page 30 Translation: Amartha World Bank Group – Global Corporate Solutions Page 31 – Translation and Interpretation Amit Ramrakha/IFC IFC ANNUAL REPORT 2024  64 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION CRITICAL FUNCTIONS Measuring Up: Our Impact Sustainability Accountability and Oversight Diversity, Equity, and Inclusion CLIMATE-RELATED Auditor’s Report Letter to the Board of Governors Stay Connected Credits Climate-related Financial Disclosures Compensation and Benefits FINANCIAL DISCLOSURES Financial Commitments to IFC Trust Funds Funding Financial Performance Summary IFC ANNUAL REPORT 2024  65 IFC 2024 ANNUAL REPORT CLIMATE-RELATED FINANCIAL GOVERNANCE from July 2025 (85 percent starting in July 2023) (Paris Alignment), and to further scale climate finance. This DISCLOSURES What’s New? means all new investments are now screened for aspects LEADERSHIP PERSPECTIVES of physical and transition climate risk. RESULTS This report is IFC’s seventh consecutive STRATEGY IN ACTION climate-related financial disclosure. In 2023, • New director for Climate Business Department appointed and a Climate Capacity and Inclusion An IFC investment is considered Paris Aligned CRITICAL FUNCTIONS the World Bank Group’s new vision of creating unit established with a focus on knowledge when new financing flows and guarantees provided a world free of poverty on a livable planet was management and information sharing. will be consistent with the objectives of the Paris Measuring Up: Our Impact Agreement and a country’s pathway toward endorsed, expanding IFC’s mandate to address • Drafted and operationally tested the procedural low greenhouse gas emissions and climate- Sustainability framework for the implementation of the counterparty- climate-related issues. This report aims to based approach to Paris Alignment. resilient development. IFC applies the Joint MDB Accountability and Oversight Methodological Principles for Assessment of provide IFC’s stakeholders with information • Further integrated climate risk into IFC’s enterprise Paris Agreement Alignment of Direct Investment Diversity, Equity, and Inclusion that accurately reflects the integration of risk framework and operations through a cross- Lending Operations, Intermediated Financing, Auditor’s Report organizational Climate Risk Working Group (CRWG), to and General Corporate Purpose Finance. The climate considerations into IFC’s operations. It identify, assess, and manage IFC’s overall exposure to outcome of a Paris Alignment assessment for an Letter to the Board of Governors reflects IFC’s commitment to tackling climate climate-related risks and opportunities. operation is an internal classification of “aligned” Stay Connected or “non-aligned.” For operations to be classified as change, which presents both a challenge and an aligned, a client may be required to take certain Credits opportunity for IFC’s core business and therefore actions or make certain commitments before and Climate-related Financial Disclosures represents a key component of its disclosures Governance and Oversight Around during the tenor of the financing, as needed. and business strategy. Finally, it represents Climate-Related Risks and Opportunities Compensation and Benefits IFC’s Articles of Agreement outline the composition, roles, Financial Commitments to IFC’s continued commitment to maintain and and responsibilities of IFC’s Board of Directors. The Audit IFC Trust Funds strengthen its disclosure of climate-related Committee of IFC’s Board of Directors plays a key role in The World Bank Group’s Boards and management set the overseeing risk management at IFC. Under the direction Group’s public climate targets. During the 2023 Annual Funding financial information. All seven reports can be Meetings of the World Bank Group, the World Bank of IFC’s Managing Director, IFC’s management team is Financial Performance Summary found online. responsible for IFC’s day-to-day operations including the Group’s new vision of creating a world free of poverty on a management of existing and potential risks. livable planet was endorsed. Since 2006, IFC has been obtaining limited assurance over IFC’s Managing Director, who reports to the President The World Bank Group reports annually to its Boards a selection of information of its climate-related financial of the World Bank Group, oversees climate business and of Directors specifically on climate, including progress disclosures reporting from EY, a recognized third party, as risk on all climate commitments including climate finance toward all climate commitments (see Metrics and part of the review of IFC’s annual report. EY’s nature and investment commitments, climate risk evaluation, and Targets section below for further details). In addition, scope of work is detailed in its limited assurance report, Paris Alignment of IFC’s operations (as defined below). progress on targets is reported to the IFC Board as freely available on IFC’s annual report website. The World Bank Group President reports to each of the part of IFC’s quarterly Investment Operations Report World Bank Group’s (IBRD, IDA, IFC, and MIGA) Boards Updates. IFC management updated its Board on the In FY24, IFC continued to assess the impact of climate- of Directors. Following the climate commitments as third year of implementation of the CCAP in September related factors on the following four thematic areas: part of IFC’s 2018 capital increase, and the Climate 2023. Furthermore, IFC seeks formal Board approval for governance, strategy, risk management, and metrics Change Action Plan (CCAP) 2021–2025, in FY21 its Board most investment projects, except those approved with and targets. approved IFC’s commitment to align 100 percent of delegated authority. As in previous fiscal years, in FY24, new investments with the goals of the Paris Agreement there was significant engagement with IFC’s Board and management on several projects in hard-to-abate sectors. IFC ANNUAL REPORT 2024  66 IFC 2024 Additional touch points with IFC’s Board and management Management program facilitates sharing of best and donors and to strengthen partnerships with ANNUAL REPORT team are integrated into its business and reporting practices, capacity building, risk management, innovation, other organizations active in the climate space. processes, through written and verbal communications and stakeholder engagement. LEADERSHIP PERSPECTIVES including the Annual Portfolio Review, Strategy and IFC’s Blended Finance unit deploys donor funds in Business Outlook, Capital Package and the Forward Look conjunction with IFC’s commercial funds to catalyze RESULTS Evolution of the Climate Risk Implementation Update, annual CCAP updates, and the climate-smart investments with high development STRATEGY IN ACTION Annual Report on Financial Risk Management and Capital Working Group impact that would not occur under normal market Adequacy, as well as Paris Alignment of projects, and deep Climate risk is being integrated into IFC’s enterprise conditions. By mitigating specific investment risks CRITICAL FUNCTIONS dives and technical briefings as requested. and rebalancing risk-reward profiles, blended finance risk framework and operations through the cross- Measuring Up: Our Impact organizational Climate Risk Working Group (CRWG), can address market failures, help mobilize private Climate-related risks and opportunities are integrated chaired by the Vice Presidents of Risk and Finance and investment in pioneering projects and challenging Sustainability into all aspects of IFC’s operations. IFC’s Climate Business the Vice President of Industries. In FY23, the CRWG, environments, and demonstrate the business case Department is responsible for providing in-house co-led by the Directors of Climate Business and Corporate for climate-smart investing. IFC’s Treasury and Accountability and Oversight expertise on climate and guiding the achievement of IFC’s Risk Management departments, enhanced the efforts Mobilization Vice Presidency issues green bonds and Diversity, Equity, and Inclusion climate targets. It serves as a hub that informs, trains, to identify, assess, and manage IFC’s overall exposure mobilizes private capital to contribute substantially and enables IFC investment and other departments to to climate-related risks and opportunities. In FY24, to climate-related objectives such as climate change Auditor’s Report integrate climate into IFC’s operations, engage with its mitigation, climate change adaptation, biodiversity, the CRWG’s membership was further expanded, and Letter to the Board of Governors clients, and broaden its impact. The Climate Business its governance enhanced to include essential internal and water and oceans protection and vulnerability. Department helps set corporate climate strategy, shape stakeholders, foster greater collaboration, and leverage Stay Connected policy, and support investment teams in identifying IFC’s Upstream and Advisory services work alongside its diverse institutional expertise from various departments. Credits climate investment opportunities and mitigating climate The CRWG led the efforts to update the definition of IFC’s investment operations to support market creation and risk. It also addresses medium to long-term climate risks climate risk, which was published in its FY24 Q3 financial to generate a bankable pipeline of projects, especially in Climate-related Financial Disclosures and opportunities by building the capacity of IFC staff statements. For additional details, please refer to the Risk low-income economies and fragile and conflict-affected and clients, providing advisory services, and developing Management section of this report. situations (FCS) and in strategic priorities such as climate. Compensation and Benefits thought leadership and innovation to create climate IFC’s Advisory services help companies, industries, Financial Commitments to markets. The Department is responsible for developing national and local governments improve investment IFC Trust Funds approaches to help IFC meet its Paris Alignment Integration of climate business conditions, strengthen basic infrastructure, improve commitment, as well as supporting investment teams corporate governance, and become more sustainable. Funding IFC is integrating climate business throughout the with adhering to these requirements through project IFC’s Upstream work focuses on early-stage market institution. The Climate Business Department works Financial Performance Summary assessments, development of tools and support materials, and project preparation work to build a pipeline of well- with Global Industry Climate Anchors, Regional Anchors, and delivering training to IFC staff and clients as needed. prepared, commercially viable investment opportunities. and Regional Industry Leads to mainstream climate In FY24, IFC integrated its Upstream and Advisory considerations in IFC’s operations. The Climate Business The Climate Business Department is housed in IFC’s services to help bring replicable and scalable solutions Department has established a Climate Network that operations under the Vice President of Industries, who to deliver against IFC targets and IFC shareholders’ meets every month. This network comprises senior staff reports to IFC’s Managing Director. The Vice President ambitions, including those for climate. in each industry and regional department as well as key of Industries also oversees all IFC’s global industry operational departments including Legal and Compliance departments as well as the Corporate Portfolio and IFC provides a range of advisory services to its clients. Risk, Corporate Risk Management, and Environmental Operations Management department. IFC’s global These services may include assistance in assessing carbon and Social Policy and Risk, to foster knowledge sharing and regional industry departments are responsible for footprints and creating customized decarbonization across departments and units. originating and processing investments, including those roadmaps with complementary cost-benefit analysis. IFC that are reported as direct and indirect climate financing. also supports clients in early-stage project development, A cross-industry and cross-functional group of In FY24, a new Director was appointed to lead the piloting business models, and contributing to fund senior climate experts has been established in IFC’s Department, and a Climate Capacity and Inclusion unit pre-investment studies. This advisory work focuses Paris office to support the Paris Client Hub and with a focus on knowledge management and information on initiatives that enhance energy efficiency, promote Western European region’s engagement with clients sharing was established. IFC Climate’s Knowledge IFC ANNUAL REPORT 2024  67 IFC 2024 renewable and alternative energy, advance emerging investments. IFC engages formally and informally with Implementation of World Bank Group ANNUAL REPORT technologies, and improve resource efficiency. private, public, financial sector, and CSOs on climate risk and opportunities, and participates in several climate- Climate Change Action Plan 2021-25 LEADERSHIP PERSPECTIVES IFC supports the decarbonization of four of the world’s related corporate leadership initiatives. As part of this plan, IFC committed to increase its most carbon intensive industries: steel, cement, glass, and own-account long-term climate financing to 35 percent RESULTS of total commitments on average over the five-year chemicals, including those used for fertilizers. Through STRATEGY IN ACTION partnerships with governments and private companies in STRATEGY period, significantly higher than the 26 percent average these sectors, IFC aims to create greener supply chains, achieved between FY16 and FY20. Additionally, starting CRITICAL FUNCTIONS promote materials conservation and circularity to reduce waste, boost economic and technological advancements, What’s New? July 1, 2023, IFC committed to align 85 percent of its investment projects with the goals of the Paris agreement. Measuring Up: Our Impact offset financial risks associated with decarbonization, Sustainability and develop manufacturing clusters and partnerships to In FY24, the President of the World Bank Group optimize resource, energy, and labor efficiency. • In FY24, implemented Paris Alignment assessments for committed to a new climate finance target of 45 percent Accountability and Oversight new investment projects across all industries and sectors. of its annual financing to climate-related projects (up from Diversity, Equity, and Inclusion The Climate Risk advisory program, supported by Japan • FY24 total long-term finance own-account 35 percent) for the World Bank Group starting in FY25. and the Netherlands, has been successfully set up and commitments in climate: $9.1 billion. Auditor’s Report engaged with 22 financial institutions to date, across Letter to the Board of Governors multiple regions. The support provided ranges from • IFC piloted scenario analysis exercises Helping IFC’s Clients Address Climate on its portfolio in select sectors. high-level mapping of physical and/or transition risks, to Change and Development Stay Connected reviewing internal climate risk policies and procedures, Credits measuring financed emissions, and reviewing alignment Climate financing with Paris Agreement climate scenarios. In addition, Climate-related Financial Disclosures country-focused climate risk training sessions have been Overview of the World Bank Group’s In FY24, IFC’s total own-account long-term climate conducted in collaboration with central banks and banking Climate Change Strategy finance-related commitments were $9.1 billion, making Compensation and Benefits it a record year for IFC. This accounted for 43 percent of associations in India, Sri Lanka, Vietnam, the Philippines, IFC’s strategic priorities for its climate business are IFC’s total own-account long-term finance commitments Financial Commitments to Thailand, and China. These efforts have fostered growing anchored in its Capital Increase Package commitments interest in exploring transition finance opportunities. (see Figure 1). IFC’s average climate finance business as IFC Trust Funds and the FY21-25 World Bank Group CCAP, which focuses a percentage of its total own-account long-term finance Funding on Paris Alignment as well as increasing climate finance commitments for the period FY21-24 is 39.9 percent, IFC nominates directors to the boards of investee to reduce emissions and strengthening climate change ahead of the CCAP target of 35 percent. Financial Performance Summary companies to add value in line with its development adaptation. It provides a roadmap on aligning climate and mandate. Throughout their board service, Nominee development goals using the World Bank Group diagnostic This achievement is the result of significant efforts to Directors are supported by a dedicated IFC Nominee tool, the Country Climate and Development Reports mainstream climate into operations and the introduction Directorship Center. In FY24, recognizing the importance (CCDRs). It prioritizes transition in five key systems that of new and innovative products. Screening projects of embedding good climate governance into the boards of generate 90 percent of emissions and face significant for Paris Alignment has also enabled the climate team its client and investee companies, IFC organized training adaptation challenges: energy; agriculture, food, water, to identify and flag climate finance opportunities to sessions for IFC Nominee Directors to build and improve and land; cities; transport; and manufacturing. It also investment teams at the earliest stages of the IFC capacity of investee companies on climate governance, commits IFC to increase finance to support the transition, investment cycle. biodiversity, and climate risk and resilience. including by mobilizing private capital and supporting global efforts to raise and deploy concessional finance. IFC continues to diversify its climate business, identifying IFC staff actively engages with civil society organizations (CSOs) including during the World Bank Group Spring new areas of growth. In FY24, IFC retained strong climate and Annual Meetings around issues of sustainable business in green buildings ($2.5 billion) and renewable supply chains, Paris Alignment, investment exposure to fossil fuels, and sustainability in financial intermediary IFC ANNUAL REPORT 2024  68 IFC 2024 IFC’s Climate Business (Total Long-term Own-Account Commitments) Intermediated Financing. Joint methodological principles ANNUAL REPORT have also been prepared for General Corporate Purpose Finance for projects without targeted use of proceeds in LEADERSHIP PERSPECTIVES 12,000 46% 50% the real sector. Climate business as a percentage of IFC’s Own- 43% IFC’s Total Own-Account Long-Term Climate Account Long-Term FInance Commitments 45% RESULTS The lists of activities considered Universally Aligned2 and Finance Commitments – USD millions 10,000 9,138 35% 40% STRATEGY IN ACTION Universally Not Aligned3 for mitigation were also prepared 34% 32% 7,628 35% and agreed upon by all MDBs. In FY24, IFC conducted over CRITICAL FUNCTIONS 8,000 29% 30% 30% 30 Paris Alignment training sessions, reaching more than 25% 2,000 staff. Through these sessions, IFC provided internal Measuring Up: Our Impact 6,000 22% 25% guidance materials to support capacity building, including Sustainability 18% 4,401 3,910 4,021 20% Paris Alignment assessment questionnaires, case studies, 4,000 3,324 and factsheets. We developed tools, guidance notes, and Accountability and Oversight 2,996 15% 2,349 2,603 training for investment staff to communicate and guide 1,986 Diversity, Equity, and Inclusion 2,000 10% clients on Paris Alignment. These are toolkits to help IFC’s 5% clients in emerging markets improve their climate risk Auditor’s Report management and reporting capacity. 0 0% Letter to the Board of Governors FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Climate considerations are included early in the Stay Connected investment cycle, allowing investment teams to both Credits energy ($2.3 billion). IFC also invested in energy and In FY24, IFC is making strides with the implementation address any climate risks that are foreseen as well as resources efficiency ($0.8 billion), clean transportation of Paris Alignment of its investment operations. In FY24, take advantage of the business opportunities presented Climate-related Financial Disclosures ($0.5 billion), waste, water and wastewater ($0.4 billion), IFC exceeded its 85 percent commitment to assess and through adaptation measures and helping clients climate-smart agriculture ($0.3 billion), and others align its investment commitments with the goals of the transition to a low-carbon pathway. Compensation and Benefits ($2.3 billion). Paris Agreement. Financial Commitments to IFC Trust Funds IFC’s climate finance represents the climate-related Since the signing of the Paris Agreement in 2015, IFC Country Climate and Development Reports investments made that support client countries’ has worked with the World Bank, MIGA, and eight other Introduced in the current CCAP, the World Bank Group’s Funding transition to low-carbon resilient growth and better multilateral development banks (MDBs) to develop the CCDRs integrate climate change and development Financial Performance Summary positive management of climate impact. Meanwhile, Joint MDB Methodological Principles for Assessment of considerations. In FY24, the World Bank Group continued IFC’s commitment to Paris Alignment means that every Paris Agreement Alignment1, which consider the specific to strengthen the CCDR as a diagnostic tool, and lead investment made by IFC is assessed for aspects of contexts of the emerging markets in which MDBs operate. the development of the CCDRs, along with support from transition and physical climate risk. IFC has coordinated with the other MDBs to develop the International Monetary Fund, and active engagement and publish the Joint MDB Methodological Principles with the private sector, government counterparts, for Assessment of Paris Agreement Alignment of New academia, think tanks, and civil society organizations. In Implementation of the Paris Alignment Operations: Direct Investment Lending Operations FY24, the World Bank Group published 19 CCDRs and a Commitment (real sectors) and, along with the European Bank for CCDR Summary Report covering 42 economies titled, The Reconstruction and Development, led the development of Development, Climate, and Nature Crisis: Solutions to End IFC’s work on Paris Alignment has helped it define an the Joint MDB Methodological Principles for Assessment Poverty on a Livable Planet. overall climate risk and opportunities strategy and client of Paris Agreement Alignment of New Operations: engagement approach that incorporates governance structures, risk management, and metrics and targets. 1 Joint MDB Methodological Principles for Assessment of Paris Agreement Alignment - https://www.worldbank.org/en/publication/paris-alignment/joint-mdb-paris-alignment-approach 2 Universally aligned activities include activities that do no harm or support climate change mitigation such as renewable energy. 3 Non-aligned activities include coal power, coal mining, peat mining, and peat power. IFC ANNUAL REPORT 2024  69 IFC 2024 How IFC is Harnessing Climate-Related • IFC participates in the MDB Circular Economy Working reflecting the views of stakeholders participating ANNUAL REPORT Group, which launched A Shared Vision for the Circular in roundtable dialogues held in Manila and Cebu, Opportunities Economy. IFC convened more than 50 private and public was published. LEADERSHIP PERSPECTIVES sector leaders for a workshop on the sidelines of the Providing market-enabling activities Plastics Treaty negotiations in Ottawa. • Green Bonds Technical Assistance Program (GB-TAP), RESULTS with whom IFC works extensively, continues to provide As with previous years, IFC continued to prioritize STRATEGY IN ACTION climate-related business development through Upstream • Bangladesh introduced sustainability and climate- technical assistance to financial institutions on green, related financial disclosure guidelines for banks and social, and sustainability bond issuances. In FY24, the and related activities. Upstream activities consist CRITICAL FUNCTIONS finance companies with technical assistance from GB-TAP trained 237 professionals from 99 institutions of pre-investment work in three categories, often in IFC and support from the Swiss State Secretariat for across 35 countries and has to date trained over 1,300 Measuring Up: Our Impact collaboration with the World Bank and MIGA: (i) creating Economic Affairs (SECO). professionals from over 370 financial institutions across markets (regulatory reform or standard setting), (ii) Sustainability over 75 countries and stimulated more than $6.5 billion creating opportunities (through technical assistance to • The Sustainable Banking and Finance Network (SBFN), in green bonds, $1 billion in social bonds, and $4.3 billion Accountability and Oversight private sector clients), and (iii) crystalizing opportunities for which IFC hosts the Secretariat, launched a Toolkit in sustainability bonds. In addition, the GB-TAP published (project risk structuring and investor mobilization). IFC’s on Sustainable Finance Taxonomies to support the Sustainable Micro, Small, and Medium Enterprises Diversity, Equity, and Inclusion management team is regularly updated on the climate financial sector regulators, banking associations, (MSME) Finance Reference Guide, and a Manual on share of the Upstream pipeline, allowing a line of sight on and interested users in emerging markets, and a Auditor’s Report Preparing for Green Bond Issuances focused on financial green business opportunities. new online Data Portal and Global Progress Brief institutions in Latin America and the Caribbean. Letter to the Board of Governors covering: Environmental, Social, and Governance (ESG) Integration, Climate and Nature-Related Risk • IFC’s Green Banking Academy (GBAC) is a knowledge Stay Connected Creating markets through regulatory reform Management, and Financing Sustainability. and capacity-building initiative of IFC’s Financial Credits and standard setting Institutions Group. GBAC trains financial institutions on the four pillars of a green bank (eco-efficiency, In FY24, IFC implemented the following standard-setting Climate-related Financial Disclosures Creating opportunities through technical environmental risk management, green products and advisory initiatives. Compensation and Benefits assistance to private sector clients services, and green strategic commitment) and offers • IFC started to scale up Building Resilience Index (BRI), IFC recognizes that bringing its clients along on the a green finance certificate to professionals. GBAC has Financial Commitments to the adaptation sister to IFC’s Excellence in Design for climate journey will be critical to managing its climate trained over 5,000 bankers and granted more than 500 IFC Trust Funds Greater Efficiencies (EDGE) Green Building certification scholarships in Latin America and the Caribbean. In Asia, risk, engaging in new business opportunities, and system tool launched in 2021. BRI is a web-based IFC partners with the Hong Kong Monetary Authority Funding implementing its overarching climate strategy. To do so, hazard mapping and resilience assessment framework supporting financial institutions through the Alliance for IFC works closely with its clients in both real and financial Financial Performance Summary for the building sector, to help buildings reduce their Green Commercial Banks, a new global initiative that sectors to build capacity on key topics. Highlights of IFC’s risk exposure to changing climate conditions, as well as brings together financial institutions, banking industry work in FY24 include: improve their resilience and adaptation. The tool helps associations, research institutions, and innovative real estate investors assess location-specific risks • Recognizing the need for bankable green projects as technology providers to work together to develop a and create investment opportunities to enhance the a key hurdle to scaling private climate finance under community of green commercial banks across emerging resilience of buildings and cities. We are applying lessons the Scaling up Climate Finance through the Financial markets and finance the infrastructure and business from a decade of work through EDGE Green Building Sector Program, IFC is working in four pilot countries solutions needed to urgently address climate change. certification system to expand to green cities through – Egypt, Mexico, Philippines, and South Africa – to help the Advanced Practices for Environmental Excellence in catalyze the development of a pipeline of green projects • Based on its recently developed climate (corporate) governance methodology, IFC has provided selected Cities (APEX) program. in target sectors. It involves engaging with regulators clients with climate governance assessment and training on developing national green finance taxonomies • IFC has initiated collaborations with the Climate Bonds and collaborating with client banks on climate risk services. It also offered capacity-building activities for Initiative, Rocky Mountain Institute, Carbon Trust, and its local partner institutions to promote good climate management as well as increasing the proportion the Glasgow Financial Alliance for Net Zero, among governance standards and train board directors on their of green investments in their portfolios to green the others, to develop training, case studies, and essential role in climate action in their respective markets. IFC domestic financial sector and generate climate finance materials relating to Transition Finance. developed and launched training programs supported by at scale. In FY24, the Roadmap of Actions: Green SECO, the United Nations Sustainable Stock Exchanges Buildings in the Philippines, a roadmap for the sector IFC ANNUAL REPORT 2024  70 IFC 2024 Initiative, and others to build capacity in emerging and built on the TechEmerge Program, and expanded into sector strategies and roadmaps for key sectors, such as ANNUAL REPORT developing markets on disclosure standards. areas of coordinated thought leadership and a global chemicals, and is developing more for circular economy, strategy to support upstream project creation with construction materials, electric vehicles and battery LEADERSHIP PERSPECTIVES technical assistance and funding. IFC is also coordinating manufacturing, livestock, rice and other agricultural crops. Crystalizing opportunities through investor with partners such as the United Nations Environment RESULTS mobilization Programme and the global Cool Coalition, regional STRATEGY IN ACTION cooling think tanks such as Asociación Colombiana IFC’s carbon markets approach In FY24, IFC signed a $3.5 billion credit insurance policy De Acondicionamiento Del Aire Y De La Refrigeración In response to growing demand from IFC clients and CRITICAL FUNCTIONS with 13 global insurance companies under its Managed (ACAIRE) and the Africa Centre of Excellence for growing recognition that carbon markets can be Co-Lending Portfolio Program (MCPP), with an aim Measuring Up: Our Impact Sustainable Cooling and Cold-Chain, and with country- an effective tool to help companies and countries to support economic activity and foster development specific programs across the World Bank Group. decarbonize, the Climate Business Department in emerging markets. The program, MCPP Financial Sustainability collaborated with industry departments to formulate Institutions III, mobilizes the risk capacity of leading Accountability and Oversight insurers to support more than $7 billion of new IFC an approach for future engagement in carbon markets. Sustainability-Linked Finance (SLF) This approach seeks to help clients while mitigating medium- and long-term lending to commercial banks and Diversity, Equity, and Inclusion non-bank financial institutions over the next six years. In FY24, IFC committed a total of $3.3 billion of its potential reputational risks through selectivity, careful The program will increase access to finance for micro, own-account long-term finance in SLF. This included, due diligence, and promotion of high integrity market Auditor’s Report small, and medium enterprises, including women-owned for example, a €300 million (equivalent to $329 million) standards. As part of this approach IFC developed “deal Letter to the Board of Governors businesses, as well as firms addressing climate change. sustainability-linked loan to global energy company acceptance criteria” to be used as an evaluation tool for Iberdrola for funding renewable energy projects in future IFC carbon credit transactions to support impactful Stay Connected emerging markets, such as Morocco, Poland, and Vietnam, projects. IFC is also working closely with the World Bank Credits Supporting the climate agenda through which currently rely heavily on coal. This loan provides and MIGA to help implement the World Bank Engagement Climate-related Financial Disclosures treasury products incentives to support the company’s targets to reduce Roadmap for High-Integrity Carbon Markets that was greenhouse gas (GHG) emissions and ramp up renewable announced in December 2023. In FY24, IFC’s Treasury raised $1.3 billion in green bonds Compensation and Benefits energy capacity. across nine trades in six different currencies, including a Financial Commitments to CAD1 billion green bond, IFC’s largest green bond in the Biodiversity finance and nature-based IFC Trust Funds Canadian dollar/maple market. IFC is one of the earliest Industry-specific decarbonization solutions issuers of green bonds, having launched a Green Bond strategies In FY24, IFC continued to expand its Biodiversity Finance Funding Program in 2010 to help catalyze the market and unlock investment for private sector projects that support IFC has been conducting deep dives to embed climate Reference Guide, which was launched in 2023, and is the Financial Performance Summary into sectoral strategies for high-emitting sectors like world’s first guidance on eligible investment activities that renewable energy and energy efficiency. steel, cement, chemicals, and power. IFC’s focus on constitute biodiversity finance. IFC released a Catalog of manufacturing has evolved to be centered around Nature-based Solutions for Infrastructure Projects in the Exploring Creative Solutions to Target carbon abatement, industry transition to lower carbon water, mining, and renewable energy sectors. The catalog pathways, greening of supply chains, waste reduction, provides examples of nature-based solutions that private New Areas of Growth and circularity. A core aspect of this strategy includes infrastructure companies can integrate into their core the notion that IFC’s investment evaluation should take a business operations and articulates the business case for Cooling initiative nuanced approach to the development status, needs, and doing so. The intent is to scale the incorporation of nature- In FY24, with the support of the UK Government, IFC economic complexity of a country. In subsectors where based solutions into core business operations of private established a dedicated $12.7 million Trust Fund to help full GHG abatement is not possible (heavy industries), IFC companies to meet biodiversity targets as well as climate prepare projects and scale up IFC’s investments and focusses on climate transition and lower carbon pathway mitigation and adaptation goals. support IFC’s Sustainable Cooling Initiative, focusing on approaches. These pathways make explicit the steps to five sectors where cooling is needed the most: district be taken by clients during the tenor of IFC financing to cooling; cooling for buildings; consumer and small support the reduction of their GHG emissions over the and medium enterprises finance; manufacturing and project lifetime by incorporating innovative technologies, innovation; and cold chains and logistics. IFC built its practices, or knowledge, and managing carbon lock-in and Sustainable Cooling Community of Practice, which has stranded asset risk. IFC has developed comprehensive IFC ANNUAL REPORT 2024  71 IFC 2024 IFC played an active role in the development and release Enhancing IFC’s Climate Risk-Management Capacity. Integrating Risk Assessment in Paris Alignment ANNUAL REPORT of the World Bank Group’s Nature Finance Tracking IFC continues to strengthen capacity-building initiatives Frameworks. The Climate Business Department Methodology. The methodology was developed in to enhance staff knowledge in climate-related risk conducts and supports investment teams in the LEADERSHIP PERSPECTIVES accordance with a commitment under the International management, opportunities, strategy, and reporting. assessment of key aspects of physical climate and Development Association’s 20th replenishment and IFC has created a dedicated second line climate risk transition risks in investment projects. In FY24, RESULTS provides a framework to identify the volume of committed management function within the Corporate Risk IFC continued to operationalize and mainstream STRATEGY IN ACTION finance that supports the nature positive goal embodied Management Department and has undertaken various its Paris Assessment process and approach. IFC’s in the Kunming Montreal Global Biodiversity Framework. initiatives to enhance the sustainability of its operations systems support the documentation, calculation, and CRITICAL FUNCTIONS IFC collaborated with the International Capital Markets and IFC's ability to effectively manage climate risk. reporting to its Board of climate volume, as well as Measuring Up: Our Impact Association (ICMA) and other partners to develop and the documentation of the results of Paris Alignment publish Bonds to Finance the Sustainable Blue Economy: In FY24, IFC updated its definition of climate risk to transaction-based and counterparty assessments Sustainability A Practitioners’ Guide, which draws on IFC’s own Blue the following: “Climate Risk encompasses the actual or of physical and transition risks for all real sector Finance Guidelines. potential negative effects of climate-related conditions and financial intermediary and funds projects. For Accountability and Oversight and events on IFC’s investments, corporate operations, additional details, please refer to the Governance Diversity, Equity, and Inclusion IFC is represented in the UN Secretariat of the Convention reputation, or consolidated financial statements. There section and Implementation of the Paris Alignment on Biological Diversity Advisory Committee on Resource are two primary climate-related risk categories: Commitment in the Strategy section of this report. Auditor’s Report Mobilization, the Task Force on Nature-related Financial (1) physical risks and (2) transition risks, which could Letter to the Board of Governors Disclosures Forum, and the World Economic Forum carry financial and non-financial implications for IFC. Physical Risk. During project appraisal, IFC’s project Sustainable Finance Advisory Committee. The World teams assess potential direct and indirect effects that Stay Connected Bank Group committed to begin formal tracking of nature “Physical risks include both ‘acute’ and ‘chronic’ physical climate-related impacts may have on the project’s Credits finance on July 1, 2024. risks to business operations. Acute physical risks are financial, environmental, and social performance. event-driven, stemming from short-term extreme Potential risks are further explored and, where necessary, Climate-related Financial Disclosures weather events like hurricanes, floods, tornadoes, addressed and mitigated by IFC clients through a RISK MANAGEMENT wildfires, storms, drought, or heatwaves. Chronic variety of measures that may include operational or Compensation and Benefits physical risks emerge from longer-term shifts in climate CAPEX interventions. Physical risk screening for IFC’s Financial Commitments to What’s New? patterns, such as progressive changes in precipitation and temperature, which could lead to rising sea levels, projects has been integrated into the adaptation and resilience component of Paris Alignment. Assessment IFC Trust Funds alteration of ecosystems, desertification, water scarcity, screening includes questions on exposure to climate Funding soil degradation, and deterioration of marine ecology. risk and potential opportunities, measures for climate • Physical and transition risk aspects incorporated into risk mitigation, levels of residual risk after adaptation, Financial Performance Summary the Paris Alignment assessment of all investments “Transition risks are attributable to the global shift potential for maladaptation, and consistency with through the Transaction-based and Counterparty-based approaches. toward a lower-carbon economy. These risks are national contexts for climate resilience. IFC has developed multifaceted and arise from changes in law or regulation, general guidance and sectoral notes for the assessment • IFC updated its definition of climate risk, which public policies, technological breakthroughs, shifts in of physical risk and alignment with the adaptation and encompasses the actual or potential negative effects investor and public sentiment, and disruptive innovations resilience component of the Paris Agreement, for all of climate-related conditions and events on IFC’s in business models aimed at addressing climate change. projects with defined use of proceeds across all sectors. investments, corporate operations, reputation, or consolidated financial statements. “These risks could carry financial and non-financial IFC is operationalizing Paris Alignment through IFC’s implications for IFC.” proprietary Climate Risk Portal, a one-stop-shop • IFC has created a dedicated second-line climate-risk management function within the Corporate Risk platform used by IFC teams to identify the exposure and Management Department. vulnerabilities of potential projects to physical climate risks. The portal comprises the GeoViewer and Sectoral Climate Risk Screening tools that are used to assess over 400 new investments annually. IFC ANNUAL REPORT 2024  72 IFC 2024 Transition Risk. The World Bank Group no longer finances annual emissions greater than 25,000 tons of carbon Climate Finance Methodology. At IFC, the recognition ANNUAL REPORT thermal coal power generation or upstream oil and gas4, dioxide equivalent. of the climate finance component of its investments is which has limited IFC’s exposure to fossil fuels, coal- done in compliance with the Joint MDB Methodology for LEADERSHIP PERSPECTIVES power generation, and upstream oil and gas investments. IFC assesses certain aspects of transition risk in its Climate Finance Tracking, which is regularly updated IFC continues to invest in pathways to transition with investments through the Mitigation component of its to account for the evolving market context to limit RESULTS the ultimate goal of reducing investments in fossil fuels. Paris Alignment process. IFC has mapped decarbonization climate-related risks and take advantage of new climate STRATEGY IN ACTION IFC’s exposure to fossil fuels may stem from its direct pathways for hard-to-abate sectors such as chemicals opportunities. This includes the Common Principles for investments in sectors such as gas-to-power, thermal and mining and continues this work for other carbon- Climate Mitigation Finance Tracking, last updated in CRITICAL FUNCTIONS plants, oil and gas, fossil fuel distribution, and captive intensive sectors. 2023, and the Joint MDB Methodology for Adaptation Measuring Up: Our Impact power. In FY24, IFC’s commitment in these sectors was Finance, last updated in 2022. IFC is involved in the $228 million. Enhancing Clients’ Climate Risk-Management Capacity. development and updating of the methodologies for Sustainability IFC continues to provide access to its Climate Assessment both mitigation and adaptation alongside other MDBs. IFC continues to implement its Green Equity Approach for Financial Institutions (CAFI)6 platform to client In FY24, IFC and the World Bank also contributed to the Accountability and Oversight (GEA) that was first introduced in 2020. Under the GEA, financial institutions so they can assess the climate development of the MDB Joint Principles for Tracking Diversity, Equity, and Inclusion IFC works with clients with whom it has equity or equity- eligibility of investments and estimate the development Nature Positive Finance released at COP28. like exposures to increase their climate lending and reduce impact of climate-related activities. In FY24, IFC added Auditor’s Report their exposure to coal-related projects. In 2023, IFC functionality to the CAFI tool, through the addition of Climate Finance Targets & Results. In FY24, IFC’s Letter to the Board of Governors introduced an update to the GEA, requiring a commitment a dedicated module for reporting on Climate Smart climate investments7 comprised 43 percent of its total from FI clients to not originate and finance any new coal Agriculture projects, to improve calculation and reporting own-account long-term finance commitments, exceeding Stay Connected projects from the time IFC becomes a shareholder. of individual electric and hybrid vehicle leases. These the corporate target of 35 percent. IFC’s average climate Credits efforts to support investment clients’ risk management finance business as a percentage of its total own-account IFC calculates and discloses in the Environment and Social and climate finance indirectly reduce IFC’s exposure to long-term finance commitments for the period FY21-24 Climate-related Financial Disclosures Review Summary (ESRS) the emissions for all real-sector climate risk. is 39.9 percent, ahead of the CCAP target of 35 percent. projects with annual emissions of over 25,000 metric For additional details, please refer to the Strategy section Compensation and Benefits tons of carbon dioxide equivalent (mtCO2e). Since May of this report. The IFC corporate target is translated to Financial Commitments to 2018, a carbon price has been included in IFC’s economic METRICS AND TARGETS departmental and regional climate business targets. In IFC Trust Funds analysis of project finance and corporate loans with institutional departmental scorecards, IFC reports against Funding defined use of proceeds in the cement, chemicals, and thermal power generation sectors, where estimated What’s New? the 35 percent target of climate projects as a percentage of own-account long-term finance commitments. Financial Performance Summary annual project emissions are over 25,000 tons of carbon dioxide equivalent. IFC includes the impact of the carbon Paris Alignment Targets & Results. In FY24, IFC exceeded price on the project’s economic performance and viability • In FY24, IFC exceeded its commitment to have 85 its CCAP target to have 85 percent of its investment percent of its investment commitments Paris Aligned. in its Board papers. To maintain consistency across the commitments Paris Aligned. For additional details, World Bank Group, price levels used by IFC are guided • In FY24, IFC exceeded its CCAP target to have 35 percent please refer to Implementation of the Paris Alignment by the High-Level Commission on Carbon Prices5. climate finance business as a percentage of its average Commitment in the Strategy section of this report. Where applicable, carbon pricing is also integrated into total own-account long-term finance commitments. IFC’s Anticipated Impact Measurement and Monitoring framework and will become a standard part of Paris • Climate investments comprised 43 percent of IFC’s FY24 own-account long-term finance commitments. Alignment assessments for mitigation for all projects with 4 World Bank Group Announcements at One Planet Summit - https://www.worldbank.org/en/news/press-release/2017/12/12/world-bank-group-announcements-at-one-planet-summit 5 Carbon Pricing Leadership Coalition - https://www.carbonpricingleadership.org/report-of-the-highlevel-commission-on-carbon-prices 6 IFC, with donor support, created the CAFI platform, a transparent algorithm harmonized with other MDBs to support the tracking of growing climate finance volumes of IFC client banks and other MDBs to which IFC selectively licenses the tool. 7 IFC’s Definitions and Metrics for Climate-Related Activities identifies projects and sectors that qualify as climate investments; these definitions are harmonized with other multilateral development banks. https://www.ifc.org/ wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/climate+business/resources/ifc-climate-definition-metrics IFC ANNUAL REPORT 2024  73 IFC 2024 New World Bank Group Corporate Scorecard FY24- to reduce its direct and indirect GHG emissions, improve science-based target to reduce its facility-related carbon ANNUAL REPORT FY30. The new World Bank Group Scorecard is designed energy efficiency and climate resiliency, promote emissions (Scope 1 and 2) by 20 percent between 2016 as a strategic management tool to help Management and responsible waste management, and create healthy and 2026. LEADERSHIP PERSPECTIVES the Board translate World Bank Group vision into action. workspaces for staff. The scorecard is organized around Outcome Areas, one of To offset its annual GHG emissions, IFC purchases carbon RESULTS which is “Green and blue planet and resilient populations.” Corporate GHG Emissions. Building operations and travel offsets in accordance with the WBG-wide carbon offset STRATEGY IN ACTION It captures the impact of World Bank Group’s financing constitute the largest sources of GHG emissions for IFC’s purchasing guidelines. operations to enhance the resilience of beneficiaries current corporate carbon footprint. IFC calculates both CRITICAL FUNCTIONS to climate risks and support low-carbon transition, direct (Scope 1) and indirect (Scope 2) GHG emissions for For more information, visit: www.ifc.org/en/about/ Measuring Up: Our Impact biodiversity, and ecosystem services. its corporate operations. corporate-responsibility. Sustainability MDB Common Approach to Climate Impact GHG Emissions from IFC investments. IFC continues Accountability and Oversight Measurement. In FY24, in collaboration with the World IFC Scope 1 and 2 GHG Emissions to estimate and report aggregate GHG emissions Bank Group and other MDBs, IFC introduced the Common reductions from IFC investments (IFC’s investment Diversity, Equity, and Inclusion Approach to Measuring Climate Results8. It is the first (tCO2eq)9 Scope 3 emissions). Through the International Financing common structure to define, measure, and link global Institutions (IFI) GHG Accounting Group, IFC works with Auditor’s Report progress on climate mitigation and adaptation with MDB. GHG EMISSIONS FY2010 FY21 FY22 FY23 the United Nations Framework Convention on Climate Letter to the Board of Governors Scope 1 1,058 970 1,022 1,026 Change (UNFCCC), other MDBs, some commercial banks, Investment Disclosure. IFC reports climate finance Scope 2 8,669 7,275 7,386 7,428 and bilateral DFIs to harmonize Standards for GHG Stay Connected commitments in its annual report and in the Joint accounting. This includes development of GHG accounting Credits Report on Multilateral Development Banks’ Climate methodologies and standard emission factors for power IFC Scope 1 and Scope 2 emissions have been subject to Finance. In IFC’s annual Green and Social Bond Impact grid GHG emissions in more than 100 countries. IFC Climate-related Financial Disclosures a Limited Assurance review by EY provided for the World Report, IFC also reports on the expected environmental applies the IFI Harmonized Approach to GHG Accounting Bank Group for Scope 1 and Scope 2 emissions. impact of projects financed through the green and IFI sector-specific approaches, where available, to Compensation and Benefits bonds that IFC issues. The IFC Green Bond Program estimate absolute, baseline, and relative ex-ante GHG IFC also measures indirect (Scope 3) GHG emissions Financial Commitments to follows the Green Bond Principles, a voluntary set of emissions where use of proceeds is defined. IFC estimates globally from business air travel, contractor-owned IFC Trust Funds guidelines for transparency and disclosure. IFC’s Green gross GHG emissions for all real sector projects with vehicles, and GHG emissions related to food purchased at Bond Program has been reviewed by the Center for emissions over 25,000 metric tons of carbon dioxide Funding its headquarters, calculated through the World Resource International Climate and Environmental Research at equivalent in accordance with its Policy for Environmental Institute's Cool Food Pledge. Scope 3 GHG emissions for Financial Performance Summary the University of Oslo (CICERO), now a part of the S&P and Social Sustainability and Performance Standards, corporate operations does not include emissions from Global Index, which provided a second opinion on IFC's and net emissions for climate-related projects11. IFC IFC’s financing activities. For methodology details and framework and guidance for assessing and selecting continues to disclose ex-ante estimated project level data, please see The World Bank Group Greenhouse eligible projects for green bond investments. As a gross GHG emissions when emissions are greater than Gas Emissions Inventory Management Plan for Internal signatory of the Principles for Responsible Investment 25,000 tCO2e per year through the publicly available Business Operations. (PRI), IFC also reports under PRI’s indicators. Environmental and Social Review Summary,12 under IFC’s Access to Information Policy. In FY24, IFC anticipates Carbon Reduction Targets. In 2018, IFC set its first- IFC Corporate Activities. IFC’s Corporate Sustainability 16.2 million tons of GHG emissions reduction from ever global corporate carbon emissions reduction program identifies and implements initiatives designed its projects. 8 Common Approach announcement link: https://documents1.worldbank.org/en/publication/documents-reports/documentdetail/099041924212042943 9 Data lag by one fiscal year due to timing of data collection. 10 Data is for all IFC facilities worldwide and includes Scope 1, Scope 2, and Scope 3 business travel and headquarters’ food purchase-related emissions. Scope 3 business air travel emissions include radiative forcing. FY20 onward includes the addition of Cool Food Pledge emissions from IFC HQ food purchases. Details have been captured in the Inventory Management Plan. 11 This refers to projects with activities considered climate finance eligible according to the Common Principles for Climate Mitigation Finance Tracking. For CSC methodology, visit https://scorecard.worldbank.org/content/dam/ sites/scorecard/doc/methodology/RESULTS-Institutional-Net-Emissions-Clean.pdf 12 IFC Project Information & Data Portal. https://disclosures.ifc.org/#/landing IFC ANNUAL REPORT 2024  74 IFC 2024 DISCLAIMER The inclusion of information contained in this report behalf of IFC, and is subject to restrictions under the laws ANNUAL REPORT should not be construed as a characterization regarding of several countries. World Bank securities may not be The information set forth in this report is expressed as of the materiality or financial impact of that information. offered or sold except in compliance with all such laws. LEADERSHIP PERSPECTIVES June 30, 2024, and is being provided by the International Finance Corporation (referred in this document as “IFC”). Certain statements in this report are “forward-looking All content (including, without limitation, the graphics, RESULTS statements” including statements related to IFC’s icons, and overall appearance of the presentation and its The report has been prepared for information purposes STRATEGY IN ACTION only, is not intended to be comprehensive, and does not climate and other sustainability-related strategies, plans, content) are the property of IFC unless otherwise noted. constitute investment, financial, economic, accounting, developments, targets, and goals. The forward-looking IFC does not waive any of its proprietary rights therein CRITICAL FUNCTIONS strategies, plans, developments, targets, and goals including, but not limited to, copyrights, trademarks, and legal, or tax advice or recommendations. described in this report are not guarantees or promises. other intellectual property rights. All photos, graphics, and Measuring Up: Our Impact No representation or warranty, express or implied, is Forward-looking statements speak only as of the date content are © IFC, unless otherwise noted. Sustainability made as to, and no reliance should be placed on, the they are made, and IFC assumes no duty to and does not fairness, accuracy, completeness, or correctness of the undertake to update forward-looking statements. For more information, please visit IFC’s website Accountability and Oversight https://www.ifc.org. information or any opinion contained in this report. The Diversity, Equity, and Inclusion information contained in this report should be considered The information provided herein is based in part on in the context of the circumstances prevailing at the time information from third-party sources that IFC believes to Auditor’s Report be reliable, but that has not been independently verified and will not be updated to reflect material developments Letter to the Board of Governors that may occur after the date of the presentation. Neither by IFC, and IFC does not represent that the information is IFC nor any of its affiliates, agents, directors, employees, accurate or complete. Stay Connected officials, or advisors shall have any liability whatsoever (in negligence or otherwise) for any loss, cost, damage, or This report contains or references links to websites Credits expense of whatsoever nature arising from any party's use operated by third parties (“Third Party Websites”). These Climate-related Financial Disclosures of or reliance on this report or its contents or otherwise links are provided for information purposes only. Third arising in connection with the information in this report. Party Websites are not under the control of IFC. IFC is Compensation and Benefits not responsible for the content of, or links contained Financial Commitments to This report includes non-financial metrics that are in, any Third-Party Website, and the inclusion of such IFC Trust Funds subject to measurement uncertainties resulting from links does not imply that IFC endorses, recommends, or limitations inherent in the nature and the methods used accepts any responsibility for the content of such Third Funding Party Websites. for determining such data. The selection of different Financial Performance Summary but acceptable measurement techniques can result in materially different measurements. The precision of This document is not an offer for sale of securities of IFC in different measurement techniques may also vary. IFC any jurisdiction or an inducement to enter into investment reserves the right to update its measurement techniques activity. Any offering of IFC securities will take place and methodologies in the future. solely on the basis of the relevant offering documentation including, but not limited to, the prospectus, term sheet, and/or final terms, as applicable, prepared by IFC or on IFC ANNUAL REPORT 2024  75 Essential IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES Information RESULTS STRATEGY IN ACTION CRITICAL FUNCTIONS Measuring Up: Our Impact Sustainability Accountability and Oversight Diversity, Equity, and Inclusion 77 Auditor’s Report Letter to the Board of Governors OUR PEOPLE & PRACTICES Stay Connected 77 Compensation and Benefits Credits 78 Financial Commitments to IFC Trust Funds Climate-related Financial Disclosures 79 Funding Compensation and Benefits 80 Financial Performance Summary Financial Commitments to IFC Trust Funds Funding Financial Performance Summary IFC ANNUAL REPORT 2024  76 IFC 2024 ANNUAL REPORT Compensation and Benefits LEADERSHIP PERSPECTIVES Ensuring competitive compensation and benefits, IFC applies the World Bank Group’s compensation framework. EXECUTIVE COMPENSATION RESULTS Competitive compensation is essential to attract and retain a highly qualified, diverse staff. Salaries for staff recruited in Washington, D.C. are based on the U.S. market. Salaries for staff hired outside the U.S. are based on The salary of the President of the World Bank Group is STRATEGY IN ACTION local competitiveness as determined by independent local market surveys. Given the World Bank Group’s status as a determined by the Board of Directors. The salary of the multilateral organization, staff salaries are determined on a net-of-tax basis. IFC Managing Director is determined based on the U.S. CRITICAL FUNCTIONS WB salary structure and positioned in the salary range for Measuring Up: Our Impact As of June 30, 2024, the salary structure (net of tax) and annual average net salaries/benefits for World Bank Group the GK grade. The executive salary structure is reviewed staff were as follows: annually and updated based on the U.S. labor market Sustainability movement or the IMF’s projected U.S. CPI movement, Accountability and Oversight whichever is lower. Diversity, Equity, and Inclusion Staff Salary Structure and Benefits (Washington, D.C.) The compensation of our executive leadership is Auditor’s Report transparent. IFC MD Makhtar Diop received an annual AVERAGE STAFF AT SALARY/ AVERAGE salary of $452,570 net of taxes. Letter to the Board of Governors MINIMUM MIDPOINT MAXIMUM GRADE GRADE BENEFITSa GRADES REPRESENTATIVE JOB TITLES (US$) (US$) (US$) LEVEL (%) (US$) (US$) Stay Connected GA Office Assistant 32,400 46,200 60,100 0.01% 46,680 24,325 Credits GB Team Assistant, Information Technician 38,400 54,800 71,300 0.04% 49,928 26,018 Climate-related Financial Disclosures GC Program Assistant, Information Compensation and Benefits Assistant 46,900 67,100 87,200 4.40% 69,474 36,203 Financial Commitments to GD Senior Program Assistant, Information Specialist, Budget IFC Trust Funds Assistant 55,900 79,900 103,800 5.63% 85,364 44,484 Funding GE Analyst 76,600 109,500 142,300 9.03% 100,777 52,516 GF Professional 101,700 145,300 189,000 23.80% 131,521 68,537 Financial Performance Summary GG Senior Professional 131,900 188,500 245,000 39.59% 184,145 95,959 GH Manager, Lead Professional 177,600 253,800 330,000 14.87% 257,328 134,096 GI Director, Senior Advisor 268,700 335,900 403,100 2.20% 336,847 175,534 GJ Vice President 326,700 384,400 442,100 0.37% 387,988 202,184 GK Managing Director, Executive Vice President, Senior Vice President 363,300 427,400 491,500 0.07% 441,109 202,612 Note: Because WBG staff, other than U.S. citizens, usually are not required to pay income taxes on their WBG compensation, the salaries are set on a net-of-tax basis. These salaries are generally equivalent to the after-tax take-home pay of the employees of the comparator organizations and firms from which WBG salaries are derived. Only a relatively small minority of staff will reach the upper third of the salary range. a. Includes medical, life, and disability insurance; accrued termination benefits; and other non-salary benefits. Excludes tax allowances. IFC ANNUAL REPORT 2024  77 IFC 2024 ANNUAL REPORT Financial Commitments to IFC LEADERSHIP PERSPECTIVES Trust Funds (ADVISORY & UPSTREAM, US$ MILLION EQUIVALENT) RESULTS Summary FY24 FY23 Corporations, Foundations, and NGOs FY24 FY23 STRATEGY IN ACTION Governments 97.26 155.75 Bill & Melinda Gates Foundation 2.92 7.11 CRITICAL FUNCTIONS Institutional/Multilateral Partners 11.73 7.70 Total 2.92 7.11 Measuring Up: Our Impact Corporations, Foundations, and NGOs 2.92 7.11 Sustainability Grand Total 111.91 170.56 Accountability and Oversight Governments FY24 FY23 Diversity, Equity, and Inclusion Australia Austria 0.00 3.27 3.86 5.22 Financial Commitments to IFC Auditor’s Report Belgium 1.05 0.00 Trust Funds (BLENDED FINANCE, US$ MILLION EQUIVALENT) Letter to the Board of Governors Canada 4.05 4.35 Czechia 0.00 1.00 Governments FY24 FY23 Stay Connected Canada 69.51 68.23 Denmark 5.32 0.00 Credits Germany 0.00 31.97 France 0.00 2.10 Climate-related Financial Disclosures Korea, Republic of 0.00 10.00 Germany 4.18 0.00 Netherlands 35.00 44.23 Compensation and Benefits Ireland 0.53 1.82 Switzerland 0.00 10.00 Italy 0.00 0.27 Financial Commitments to United Kingdom 27.66 31.07 Japan 15.42 28.35 IFC Trust Funds Total 132.17 195.50 Korea, Republic of 3.00 20.00 Funding Luxembourg 0.00 8.76 Institutional/Multilateral Partners FY24 FY23 Financial Performance Summary Netherlands 31.97 1.00 European Commission (EC) 537.82 0.00 New Zealand 2.14 2.68 Total 537.82 0.00 Spain 0.00 3.92 Sweden 2.49 2.33 Corporations, Foundations, and NGOs FY24 FY23 Switzerland 8.64 52.10 Total 0.00 0.00 United Kingdom 15.20 14.99 Grand Total 669.99 195.50 United States 0.00 3.00 Total 97.26 155.75 Institutional/Multilateral Partners FY24 FY23 European Commission (EC) 9.23 4.77 Global Financing Facility (GFF) 0.63 0.00 Global Infrastructure Facility (GIF) 1.87 2.93 Total 11.73 7.70 IFC ANNUAL REPORT 2024  78 IFC 2024 ANNUAL REPORT Funding AMOUNT (US$ CURRENCY EQUIVALENT) % LEADERSHIP PERSPECTIVES IFC raises funds in the international capital markets for U.S. dollar USD 5,745,000,000 43.96% RESULTS private sector lending and to safeguard IFC’s triple-A Australian dollar AUD 2,529,932,720 19.36% credit ratings by ensuring adequate liquidity. Issuances STRATEGY IN ACTION British pound GBP 2,429,488,750 18.59% include benchmark bonds in core currencies such as U.S. dollars, thematic issuances to promote strategic priorities Hong Kong dollar HKD 141,942,030 1.09% CRITICAL FUNCTIONS such as addressing climate change, and issuances in New Zealand dollar NZD 306,750,000 2.35% Measuring Up: Our Impact emerging-market currencies to support the development Swedish Krona SEK 236,209,089 1.81% of capital markets. Most of IFC’s lending is denominated in Sustainability Canadian dollar CAD 745,990,302 5.71% U.S. dollars, but we borrow in many currencies to diversify Norwegian Krone NOK 186,915,888 1.43% Accountability and Oversight access to funding, reduce borrowing costs, and encourage the growth of local capital markets. Chinese yuan Diversity, Equity, and Inclusion (Renminbi) CNY 204,737,182 1.57% Romanian Leu RON – 0.00% Auditor’s Report Brazilian Real BRL – 0.00% Letter to the Board of Governors Hungarian forint HUF – 0.00% Stay Connected Uzbekistani so’m UZS 8,615,491 0.07% Credits Mexican peso MXN 37,698,784 0.29% Other 494,507,359 3.78% Climate-related Financial Disclosures Total 13,067,787,595 100.00% Compensation and Benefits Financial Commitments to IFC Trust Funds Funding Financial Performance Summary IFC ANNUAL REPORT 2024  79 IFC 2024 ANNUAL REPORT Financial Performance Summary LEADERSHIP PERSPECTIVES The overall market environment has a significant influence on IFC’s financial performance. The main elements of IFC’s net income and other RESULTS comprehensive income, and influences on the level and variability of net income and other comprehensive income from year to year, are: STRATEGY IN ACTION Main Elements of Net Income and Other Comprehensive Income CRITICAL FUNCTIONS ELEMENTS SIGNIFICANT INFLUENCES Measuring Up: Our Impact Net income: Sustainability Yield on interest earning assets (principally loans) Market conditions including spread levels and degree of competition. Nonaccruals and recoveries of interest on loans formerly in Accountability and Oversight nonaccrual status, and income from participation notes on individual loans, are also included in income from loans. Diversity, Equity, and Inclusion Liquid asset income Realized and unrealized gains and losses on the liquid asset portfolio, in particular the portion of the liquid asset portfolio funded by Auditor’s Report net worth, which are driven by external factors such as the interest rate environment and liquidity of certain asset classes within the liquid asset portfolio. Letter to the Board of Governors Stay Connected Income from the equity investment portfolio Global climate for emerging markets equities, fluctuations in currency markets, and company-specific performance for equity investments. Overall performance of the equity portfolio. Credits Climate-related Financial Disclosures Provision for losses on loans, guarantees, and available-for- Risk assessment of borrowers, probability of default, loss given default, and expected balance at default considering prepayment and sale debt securities disbursement assumption used to estimate expected utilization rates. Compensation and Benefits Financial Commitments to Other income and expenses Level of advisory services provided by IFC to its clients, the level of expense from the staff retirement and other benefits plans, the IFC Trust Funds approved and actual administrative expenses, and other budget resources. Funding Gains and losses on other non-trading financial instruments Principally, differences between changes in fair values of borrowings, excluding IFC’s credit spread and associated derivative Financial Performance Summary accounted for at fair value instruments and unrealized gains or losses associated with the investment portfolio including puts, warrants, and stock options, which in part are dependent on the global climate for emerging markets. These securities may be valued using internally developed models or methodologies, utilizing inputs that may be observable or non-observable. Other comprehensive income: Unrealized gains and losses on debt securities accounted for Global climate for emerging markets, fluctuations in currency and commodity markets and company-specific performance, and as available-for-sale consideration of the extent to which unrealized losses are considered a credit loss. Debt securities may be valued using internally developed models or methodologies, utilizing inputs that may be observable or non-observable. Unrealized gains and losses attributable to instrument- Fluctuations in IFC’s own credit spread measured against reference rate, resulting from changes over time in market pricing of credit specific credit risk on borrowings at fair value under the Fair risk. As credit spreads widen, unrealized gains are recorded, and when credit spreads narrow, unrealized losses are recorded. Value Option Unrecognized net actuarial gains and losses and Returns on pension plan assets and the key assumptions that underlay projected benefit obligations, including financial market unrecognized prior service costs on benefit plans interest rates, staff expenses, past experience, and management’s best estimate of future benefit cost changes and economic conditions. IFC ANNUAL REPORT 2024  80 IFC 2024 IFC’s net income was $1.5 billion for the year ended June 30, 2024 (FY24), as compared to $672 million for the year ended ANNUAL REPORT June 30, 2023 (FY23). The increase in net income was mainly driven by higher treasury income and strong net interest income on loans and debt securities in FY24. The $813 million increase in FY24, when compared to FY23, was principally a LEADERSHIP PERSPECTIVES result of the following factors: RESULTS STRATEGY IN ACTION Change in Net Income FY24 vs FY23 (US$ IN MILLIONS) CRITICAL FUNCTIONS Measuring Up: Our Impact 1,000 619 24 813 Sustainability 750 (90) (4) Accountability and Oversight Diversity, Equity, and Inclusion 500 48 Auditor’s Report 298 8 7 250 Letter to the Board of Governors (97) Stay Connected 0 Credits Climate-related Financial Disclosures (500) Net Total Loss URG(L)* on Equity URG(L)* on Administrative URG(L)* on Others*** Change in Compensation and Benefits Income Provision Loans Income Equity Treasury Expenses & Net Income Borrowings Income** Financial Commitments to from Loans and Debt Investments Pensions and Debt Securities IFC Trust Funds Securities* * Total income from loans and debt securities and net treasury income are net of allocated charges on borrowings. Funding ** URG(L) refers to Unrealized Gains (Losses). Financial Performance Summary *** Others mainly represents foreign exchange gains/losses, service fees, and net advisory service expenses. Income from loans and guarantees, including realized June 30, 2024, since the original circumstances requiring from the Net Worth Funded Portfolio, as U.S. Treasury gains and losses on loans and associated derivatives, the overlay are now broadly reflected in the credit ratings yields stabilized in FY24, while rose sharply in FY23. for FY24 amounted to $3.2 billion. This represents an and loss reserves. increase of $914 million compared to $2.3 billion in FY23, IFC’s administrative expenses were $1.3 billion in primarily due to higher interest income from increased Equity investment portfolio returned $142 million in FY24, compared to $1.2 billion in FY23, an increase of interest rates and portfolio growth. IFC recorded a net FY24, compared to $191 million in FY23, which included $137 million primarily driven by higher staff costs. provision for losses on loans, available-for-sale debt dividends of $128 million in FY24 ($164 million for FY23). Pension expenses decreased by $47 million to securities, off-balance-sheet credit exposures, and other $167 million in FY24, from $214 million in FY23. receivables of $21 million in FY24 (provision of $29 million IFC reported income of $860 million on liquid assets in in FY23). Included in the FY24 provision was a reduction FY24, net of allocated charges on borrowings, compared of qualitative overlay of $110 million, which was reduced to $241 million in FY23. The year-over-year increase of from $135 million as of June 30, 2023 to $25 million as of $619 million was mainly attributable to higher net income IFC ANNUAL REPORT 2024  81 IFC 2024 IFC’s net income or loss for the past three fiscal years ended June 30, 2024 are presented below: ANNUAL REPORT LEADERSHIP PERSPECTIVES IFC’s Net Income (Loss) FY22-FY24 (US$ MILLIONS) RESULTS STRATEGY IN ACTION 2022 (464) 2023 672 CRITICAL FUNCTIONS 2024 1,485 Measuring Up: Our Impact Sustainability IFC uses Income Available for Designations (a non-U.S. GAAP measure) as a basis for designations of retained earnings. Accountability and Oversight Prior to FY24, Income Available for Designations comprise net income excluding unrealized gains and losses on investments and borrowings1 as well as grants to the International Development Association (IDA), which were suspended Diversity, Equity, and Inclusion in FY20 following the conclusion of the IDA Eighteen Replenishment of Resources (IDA18). In FY24, IFC updated the Auditor’s Report calculation of Income Available for Designations to exclude income from Post-retirement Contribution Reserve Fund (PCRF), aligning it with its intended use for post-retirement contributions. This change, approved by the Board in June Letter to the Board of Governors 2024, is effective from FY24 and is reflected in the table below. Stay Connected Credits Reconciliation of Net Income (Loss) to Income Available for Designations Climate-related Financial Disclosures (US$ IN MILLIONS) Compensation and Benefits FOR THE YEAR ENDED JUNE 30 2024 2023 2022 Financial Commitments to Net income (loss) $ 1,485 $ 672 $ (464) IFC Trust Funds Adjustments to reconcile Net income (loss) to Income Available for Designations Funding Unrealized losses (gains) on investments 49 (41) 740 Financial Performance Summary Unrealized losses on borrowings 54 50 106 PCRF Income (30) – – Income Available for Designations $ 1,558 $ 681 $ 382 In October 2024, the Board of Directors approved a designation of $107 million to the Creating Markets Advisory Window (CMAW) and $152 million to the Funding Mechanism for Technical Assistance and Advisory Services (FMTAAS). This designation is expected to be noted with approval by the Board of Governors in October 2024. Additionally, the Board of Directors recommended to the Board of Governors that $100 million of IFC’s FY24 net income be allocated to the Surplus Account, which is being established to seed the Frontier Opportunities Fund, a fund of concessional finance to spur equity investment mostly targeted to middle-income countries, including for the cutting-edge climate initiatives. This recommendation will be discussed by the Board of Governors in late October 2024. 1 Unrealized gains and losses on investments and borrowings presented in the table includes unrealized gains and losses from associated derivatives. IFC ANNUAL REPORT 2024  82 IFC 2024 Summary of Financial Results ANNUAL REPORT (US$ IN MILLIONS) LEADERSHIP PERSPECTIVES FOR THE YEAR ENDED JUNE 30 2024 2023 2022 RESULTS Consolidated statements of operations highlights: STRATEGY IN ACTION Income from loans and guarantees, including realized gains and losses on loans and associated derivatives $ 3,204 $ 2,290 $ 1,156 CRITICAL FUNCTIONS Provision for losses on loans, off-balance-sheet credit exposures, and other receivables (9) (22) (126) Measuring Up: Our Impact Income from equity investments and associated derivatives 142 191 208 Income from debt securities, including realized gains and losses on debt securities and associated derivatives 811 518 414 Sustainability Provision for losses on available-for-sale debt securities (12) (7) (14) Accountability and Oversight Income (loss) from liquid asset trading activities 2,391 1,464 (413) Diversity, Equity, and Inclusion Charges on borrowings (3,815) (2,598) (302) Other income 587 518 419 Auditor’s Report Other expenses (1,827) (1,721) (1,653) Letter to the Board of Governors Foreign currency transaction (losses) gains on non-trading activities (115) (86) 76 Stay Connected Income (loss) before net unrealized gains and losses on non-trading financial instruments accounted for at fair value and grants to IDA $ 1,357 $ 547 $ (235) Credits Net unrealized gains (losses) on non-trading financial instruments accounted for at fair value 128 125 (229) Climate-related Financial Disclosures Net income (loss) $ 1,485 $ 672 $ (464) Compensation and Benefits Financial Commitments to (US$ IN MILLIONS) AS OF THE YEAR ENDED JUNE 30 2024 2023 IFC Trust Funds Funding Consolidated balance sheets highlights: Financial Performance Summary Total assets $ 108,187 $ 110,547 Liquid assetsa 37,734 40,120 Investments 58,747 51,502 Borrowings outstanding, including fair value adjustments 55,755 52,443 Total capital 37,472 35,038 of which Undesignated retained earnings 13,133 11,589 Designated retained earnings 162 221 Accumulated other comprehensive income (loss) (AOCI) 957 632 Paid-in capital 23,220 22,596 a. Net of securities sold under repurchase agreements, payable for cash collateral received and associated derivatives. IFC ANNUAL REPORT 2024  83 IFC 2024 Key Financial Ratios COMMITMENTS ANNUAL REPORT (US$ BILLIONS, EXCEPT RATIOS) Investment Commitments include Long-Term Finance LEADERSHIP PERSPECTIVES AS OF THE YEAR ENDED JUNE 30 2024 2023 and Short-Term Finance Commitments, from both IFC's Overall liquidity ratioa 81.0% 103.8% Own Account and Core Mobilization. Investments made RESULTS Debt-to-equity ratio b 1.7 1.6 by IFC from its own account utilize its own borrowings STRATEGY IN ACTION Total reserve against losses on loans to total disbursed portfolioc 2.9% 3.7% or capital. Core Mobilization refers to non-IFC financing or risk sharing arranged on commercial terms due to the CRITICAL FUNCTIONS Capital measures: active and direct involvement of IFC for the benefit of a Measuring Up: Our Impact Capital availabled 36.6 34.8 client. IFC mobilizes such finance from other private and Capital requirede 22.2 21.1 public entities through a number of means. Own Account Sustainability investments supported 365 LTF projects in FY24 (325 Capital utilization ratiof 60.5% 60.7% Accountability and Oversight in FY23). a Overall Liquidity Policy states that IFC would at all times maintain a minimum level of liquidity, plus undrawn borrowing commitments from the International Bank for Reconstruction and Development (IBRD), such that Diversity, Equity, and Inclusion it would cover at least 45% of the next three years’ estimated net cash requirements. IFC’s overall liquidity as The table below outlines a comparative breakdown of a percentage of the next three years' estimated net cash needs stood at 81% as of June 30, 2024, above the IFC's Long-Term and Short-Term Finance Commitments, Auditor’s Report minimum requirement of the Board of 45%. including Own Account and Core Mobilization in FY24 Letter to the Board of Governors b Debt-to-equity (leverage) ratio is defined as outstanding borrowings plus committed guarantees divided by and FY23: total capital, comprising paid-in capital, retained earnings, and Accumulated other comprehensive income (loss). IFC’s debt-to-equity ratio as of June 30, 2024 was well within the maximum of 4 required by the policy Stay Connected approved by IFC’s Board of Directors. Credits c Total reserve against losses on loans to total disbursed loan portfolio is defined as reserve against losses on Total Commitments (Own Account and loans as a percentage of the total disbursed loan portfolio. Climate-related Financial Disclosures d Capital Available: Resources available to absorb potential losses, calculated as: IFC’s balance sheets capital Core Mobilization) minus designated retained earnings minus Pension surplus of each pension plan minus PCRF assets. Compensation and Benefits e Capital Required: Aggregate minimum Economic Capital required to maintain IFC’s AAA rating. (US$ IN MILLIONS) FOR THE YEAR ENDED JUNE 30 2024 2023 f Capital Utilization Ratio (CUR) is defined as Capital Required divided by Capital Available. Financial Commitments to Total Commitments (Own Account and Core Mobilization) $ 56,087 $ 43,729 IFC Trust Funds Long-Term Finance Own Account 21,458 16,677 Funding Long-Term Finance Core Mobilization 22,504 15,029 Financial Performance Summary Short-Term Finance Own Account 10,196 11,027 Short-Term Finance Core Mobilization 1,929 996 IFC ANNUAL REPORT 2024  84 IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION CRITICAL FUNCTIONS Back Cover Photo: Cairo’s new Grand Egyptian Museum, one of only a handful of museums worldwide to receive IFC’s EDGE Advanced Green Building Certification. The recognition acknowledges the museum’s climate-smart design and construction, significantly reducing energy and water use. IFC 2024 ANNUAL REPORT LEADERSHIP PERSPECTIVES RESULTS STRATEGY IN ACTION CRITICAL FUNCTIONS International Finance Corporation 2121 Pennsylvania Avenue, NW Washington, DC 20433 USA ifc.org