2023 Sustainability Review © 2023 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. 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Design: World Bank Global Corporate Solutions, Creative Services, and World Bank Corporate Responsibility Program. Impact * Integrity * Respect * Teamwork * Innovation This sustainability review, which covers the period from July 1, 2021, to June 30, 2023, has been prepared by the Corporate Responsibility Program of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). Sustainability reviews for the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID) are published separately. All dollar amounts used in this report are current U.S. dollars unless otherwise specified. Fiscal year commitments and disbursements data are in accordance with the audited figures reported in the IBRD and IDA Financial Statements and Management’s Discussion and Analysis documents for fiscal year 2022–23. As a result of rounding, numbers in tables may not add to totals, and percentages in figures may not add to 100. Opening Letter This report presents our Sustainability Review 2023. Sustainability is not just a word, it is a guidepost for helping the World Bank meet its development goals and targets. We continue taking steps to manage and do our part to adapt to the changing environmental and social landscapes. We start with ourselves, evaluating our impact as an institution on the environment and communities around us. This report summarizes the contributions of the World Bank staff who collectively work towards a world free of poverty on a livable planet. This report describes our sustainability efforts and accomplishments through the lens of our core values, Innovation, Respect, Impact, Integrity, and Teamwork. These Core Values and Code of Ethics serve as the foundation for sustainability within the World Bank. They provide us with the necessary space for fresh thinking and fast action to address sustainable challenges. Here are some examples: Innovation The Disruptive Knowledge, Information & Data Services (KIDS) Helpdesk, utilizes an innovative approach and incorporates modern technology to better support operational teams. Respect The Anti-Racism Task Force recommendations were reflected in an update to our code of ethics, indicating our commitment to address racism and discrimination in our workplace and our development work around the world. Impact The Country Climate and Development Reports help our clients prioritize the most impactful actions to reduce greenhouse gas emissions and boost adaptation and resilience while delivering on broader development goals. Integrity The Climate-Related Disclosures report highlights our commitment to supporting sustainable capital markets underscoring the importance of harmonized, consistent, and comparable climate disclosures. Teamwork The Corporate Real Estate team in partnership with teams across the World Bank continues to work on reducing the environmental impact in our facilities around the world – for example, our Timor Leste office is the first building in the country to achieve preliminary EDGE certification. These five Core Values are the bedrock of our institution’s sustainability. As we continue to evolve as an institution, we are taking steps to advance our sustainability reporting. We aim to become a Bank that is fit-for-purpose and responsive to the most pressing needs of people and the planet through our Evolution Roadmap. Looking forward, with the help of our Corporate Responsibility Program, we will continue to pursue new initiatives and targets to push the World Bank to the next level as a sustainable institution. As the World Bank Corporate Responsibility Program celebrates its 20th Anniversary, we invite you to see the progress and diversity of a values-based institution and to join our sustainability journey. Axel van Trotsenburg Shaolin Yang World Bank Senior Managing Director, Managing Director and World Bank Group Development Policy and Partnerships Chief Administrative Officer This year’s sustainability review reflects on the work of the World Bank’s operations and corporate sustainability initiatives over fiscal year 2022–231 through the lens of the World Bank Core Values: Impact, Integrity, Respect, Teamwork, and Innovation. These core values and the Code of Ethics have been the foundation of the World Bank’s work and set the highest standards of behaviors, actions, and mindset, much beyond mere compliance with rules. 1 The World Bank fiscal year is July 1 to June 30. This biennial review covers the period from July 1, 2021, to June 30, 2023. Innovation We learn and adapt to find better ways of doing things. As countries of the world look for new ways to make the planet livable and address challenges, there is a search for innovative approaches to improve sustainability. Over the past two years, the World Bank has found better ways to support our clients, staff, and communities, from designing and disseminating innovative financing products for greater impact on the ground, to deploying new technologies to transform how we worked with clients during the pandemic. In parallel, the World Bank has made a series of announcements and commitments to strengthen and enhance ways to systematically support clients at scale. Launched in December 2022, Evolving the World Bank’s Mission, Operations, and Resources: A Roadmap commits the World Bank to reviewing its vision and mission, operating model, and financial capacity. The World Bank also launched a suite of toolkits for crisis preparedness at the Summit of a New Global Financial Pact. Transforming the digital landscape A key objective of our digital strategy is eliminating paper-based processes. Our Going Digital 2023 Vision empowers clients to confidently manage and easily discover the trusted knowledge they need to address development challenges. To achieve that, we are innovating the way we manage the full information lifecycle digitally and enhancing our information governance. Increasing the number of digitized and digitally born records will improve the long-term integrity and trustworthiness of the World Bank’s records and will help reduce costs and increase staff productivity. Furthermore, the World Bank has adopted cloud-based solutions and reinforced cybersecurity to enable business continuity even during crises. Through our cloud journey, the World Bank has also embedded sustainability at its core. Examples include the recent data center consolidation, DocuSign, and printing volume. Photo: Tom Perry / World Bank. Leveraging technology for collaboration Sharing terabytes of The Disruptive KIDS (Knowledge, Information & Data Services) Helpdesk offers global public goods multi-sectoral spatial perspectives and innovative approaches for operational teams to better incorporate modern technology into how the World Bank supports data its clients. Aiming to promote sustainable development and socialize innovative disruptive tech concepts, the Helpdesk (comprised of team members around the The World Bank is committed world) offers the following areas of support: to mainstreaming climate into • Hybrid mission support: Supporting teams and clients to take “virtual field visits” to sites around the world, visualizing watersheds and its operations and countries’ development objectives through other landscapes in 3D to explore available relevant data and facilitate innovative analytical tools. The discussion surveys and polls. Climate Change Knowledge Portal • E-packaging data & knowledge: Developing a range of data, analytics, and interactive knowledge platforms for internal and external is the World Bank’s climate data service, and the second most visited consumption, including support for the new World Bank Maps; World Bank website after the World transforming static information into a variety of interactive documents, Development Indicators. It provides such as eBooks and story maps. climate data as a global public good, • Tech brainstorming: Working with World Bank teams and clients to help re-imagine operations using emerging technologies, to using a consistent, transparent approach to enable inter- strengthen data value chains (supporting data-driven decisions), comparable work across projects, process or systems modernization (making things in new ways), and sectors, and countries. World Bank stakeholder value chains (connecting people with new platforms). projects, client countries, and the This can help them better leverage a range of innovations, from drones development community are using and 3D printing to automation and ChatGPT. • the portal to identify changes Quick analytics: Supporting teams with rapid research and analytics in climate conditions, evolving (including two- and three-dimensional maps, animations, cloud computing) on a range of topics, including for Country Climate and risks, physical exposures, natural Development Reports. variability, extreme events, and • Capacity development: Supporting the socialization of emerging technology—from earth observation and Generative AI to communicating impact. All data— nearly 75TB—are publicly available. HydroInformatics and BlueTech; organizing internal and external training and knowledge sharing sessions, including for clients. To learn more about the type of work the Disruptive KIDS team produces checkout the different products the KIDS team develops for different projects across the World Bank. https://spatialagent.org/KIDS/ Pioneering Wildlife World Bank–Bank development Conservation Negara Malaysia: finance for nature Bond An Exploration of Nature-Related Financial Risks Nature underpins economies in tangible, In March 2022, the World Bank issued Central banks have recently started to measurable ways, and its rapid loss carries the South Africa Wildlife Conservation investigate biodiversity and other nature- huge costs for governments, economic Bond (WCB), a five-year $150 million related impacts and dependencies of sectors, and communities. The World Sustainable Development Bond that financial systems. Malaysia is one of the Bank is a leading multilateral financier of includes a potential conservation- world’s megadiverse countries, and many nature, deploying an unparalleled range success payment to be covered by of its economic activities are directly or of blended finance solutions, innovative the Global Environment Facility. This indirectly dependent on nature and its financial instruments, and technical bond contributes to securing and associated ecosystem services. As part assistance. The World Bank also helps growing the black rhino population of its mandate to promote monetary create the enabling conditions to scale in two protected areas in South and financial stability conducive to the public and private investment in nature Africa. The Wildlife Conservation sustainable growth of the Malaysian and broaden integration of nature into Bond is a first-of-its-kind, outcome- economy, the Central Bank of Malaysia investment decision-making. Shifting based financial instrument that (Bank Negara Malaysia), has an interest in finance—both public and private—toward channels investments to achieve understanding nature-related financial sustainable economic activity calls for conservation outcomes, measured risks to the financial sector. In 2022, Bank a holistic approach. An example is the in this case by an increase in black Negara Malaysia collaborated with the World Bank’s support for the Malaysian rhino populations, while transferring World Bank on a first-of-its kind analysis Central Bank’s assessment of the country’s the risk of conservation failure to the in Asia. assesses the exposure of Malaysian financial sector’s exposure to nature- private investors. banks to sectors and regions that are highly related risks, helping pave the way for a vulnerable to nature-related risks. Given new generation of financial stress-testing that the data and methodologies to assess that looks not only at climate, but also at nature-related financial risks are currently nature-related risks. limited, this study is exploratory in nature only. An Exploration of Nature-Related Financial Risks assesses the exposure of Malaysian banks to sectors and regions that are highly vulnerable to nature- related risks. Given that the data and methodologies to assess nature-related financial risks are currently limited, this Photo: Paman Aheri / Shutterstock. study is exploratory in nature only. Working Without Borders: The Promise and Peril of Online Gig Work Solutions for Youth This report delves into a new and rapidly increasing form Employment of work enabled by digital platforms—online gig work. Solutions for Youth Employment (S4YE) is a global partnership that brings together donors, governments, foundations, private sector companies, nongovernmental organization, and youth to identify, curate, learn from, and scale up innovations in youth employment programs. It consists of a network of over 40 private partners (Private Sector Advisory Council); 44 high potential youth employment projects representing 38 developing countries (Impact Blue Economy: Portfolio); a group over 100 enterprising global Structural youth that provide voice on the design of S4YE’s Transformation & youth employment projects (Youth Advisory Implications for Group) and 150 World Bank youth employment Youth Employment projects in 69 countries. This note explores the role of the blue economy, especially fisheries, as a source of productive and sustainable jobs for youth. Respect We care for our people, our clients, our partners, and our planet. The World Bank community continued to implement lessons learned from the pandemic as staff returned to the office, synthesizing its strengths for sustainable solutions to work smarter with clients, improve collaboration within the institution, and balance care for our families and communities. Working as a global organization: respecting people and communities As a global organization, the World Bank is committed to fostering and strengthening diversity and inclusion in both our work and our workplace. As stated in our Statement of Commitment to Diversity and Inclusion, “We are committed to a workplace where everyone is valued, where differences are respected and celebrated, and where opportunity and equitable treatment are afforded to all.” We ensure that diversity is integrated into our daily work by creating a culture and practices that recognize, value, and harness what makes every individual unique in the broader sense and by acknowledging and respecting differences including race, ethnicity, culture, nation/country of origin, ancestry, nationality, gender and gender identity, sexual orientation, age, education, marital/family/parental status, pregnancy, health status, different abilities, religion, political affiliation, native language, social and economic status, or any other characteristic. Photo: Ian Samuel Foulk / World Bank. Diversity and Inclusion Our diversity and global reach stand out among other international financial institutions and development organizations. World Bank staff represent 181 nationalities and cover a wide range of fields, enabling the institution to offer clients a unique combination of global expertise and in-depth local knowledge. Board of Governors gender ratio: We have 189 members, 64 of which are represented by women Governors and Alternate Governors. Diversity of Governance Body Participants in the World Bank’s High School Internship Program Executive Director Advisor 24% 37.6% Working with our host communities: Community Women Women Connections Campaign Around the world, Alternate Executive Director Overall where staff live and work, we connect with local communities. Our engagement can take many 26.1% 36.8% forms, including staff donations and matching funds Women Women for local nonprofits, volunteering, and workforce- Senior Advisor development programs focused on under-resourced 46.4% youth. In the last 10 years, contributions from World Bank staff together with corporate matching funds Women have surpassed $100 million. In the last two fiscal years alone, staff donations and matching funds to our host communities totaled more than $28 million. This included $3.4 million in disaster-relief drives for seven global crises. The Youth Workforce Development Program, which has provided high school internships at headquarters, for 24 years, served 38 youth in fiscal years 2022 and 2023. In addition, the number of staff volunteering with local organizations continued to grow, with the World Bank providing a paid day of community service to all staff each year. World Bank Group The Fight Against Racism Anti-Racism Principles The World Bank Group commits to zero tolerance of racism and racial discrimination in all forms and contexts. Anti-Racism Charter: The World Bank is committed Tackling institutional racism and racial discrimination in all forms to addressing racism and racial discrimination and contexts is fundamental to achieving the World Bank Group's in our workplace and in our development work twin goals of eradicating extreme poverty and boosting shared around the globe. The Anti-Racism Charter, which prosperity. highlights the World Bank’s principles on racism and racial discrimination, was launched in fiscal 2022 by The World Bank Group commits to tackling racism and racial the Office of the President of the World Bank as a discrimination and promoting equality and equity for all with response to 80 recommendations made in Phase 1 respect to its organization and management, including in decisions and 36 recommendations in Phase 2 by the World regarding recruitment and talent development. Bank Antic-Racism Task Force. An inspirational, nonbinding document, the Charter is an important milestone that signals our long-term commitment to The World Bank Group seeks to promote the inclusion of all and anti-racism. The World Bank is proactively adopting to tackle racism and racial discrimination through the projects, the Charter and the recommendations. In fiscal 2023, programs and investments it finances in order to respond effectively for example, the Code of Ethics was revised to reflect to development challenges and promote sustainable development. the recommendations made by the Anti-Racism Task Force that include strengthening messages on anti- The World Bank Group seeks to promote inclusion and tackle racism and anti-discrimination in the Code; further racial discrimination in the communities in which we live and work elaboration of diversity, behaviors, and mindsets for through effective community engagement. inclusion; and additional clarification on reporting misconduct, among others. The World Bank Group recognizes that racism and racial discrimination are morally condemnable, contrary to our Core Values, Example: Expansion of Ethics and Internal Justice and illegal under both international law and the laws of most of its presence in country offices member countries. Ethics and Internal Justice engaged more than 7,000 staff through its training and outreach in all regions. Staff Representation For the past 50 years, the Staff Association has worked to fulfill its mission to foster a sense of common purpose among staff in promoting the aims and objectives of the World Bank Group and to promote and safeguard the rights, interests, and welfare of staff. Recent highlights include: Promoting modern Advocating for Providing Supporting and flexible work benefits for staff confidential members with arrangements, in the disability counseling for over medical or including extension insurance 1,000 members disability issues of parental leave, programs annually by through a Health family leave, and Staff Relations Care Advocate adoption benefits Counselors Enhancing Internal Expanding and Supporting World Promoting Justice Services to empowering the Bank Group environmental improve access, Country Office consultants with sustainability in the equity, and Staff Association health insurance workplace accountability Network and improved working conditions World Bank Group Employee Business Resource Groups The World Bank Group supports the establishment and existence of staff groups—ranging from staff-initiated affinity networks to employee business resource groups—that benefit staff and the institution. These groups, which focus on key World Bank Group Diversity and Inclusion dimensions, are deemed as Employee Business Resource Groups. The benefits of Employee Business Resource Groups include: Supporting the World Bank Group mission, guiding principles, and core values, including empowering others and respecting differences Supporting World Bank Group Diversity and Inclusion initiatives, aspirations, and goals Fostering open communication between the World Bank Group and staff Supporting staff Supporting LGBT+ Youth to Youth with disabilities: community: DARE GLOBE The Disability Advocacy and Resource GLOBE is the World Bank Employee Youth to Youth (Y2Y) is a community of Employee Group (DARE) is the Employee Business Resource Group of staff, young professionals at the World Bank Business Resource Group of staff, consultants, and temporaries who Group (WBG) who provide fresh ideas consultants, and temporaries who are identify as Lesbian, Gay, Bisexual, and perspectives to contribute to the living and working with a disability or are Transgender, Intersex, or other sexual World Bank’s vision and fulfillment of a caregiver for a person with a disability. and gender minorities (LGBT+) and the Sustainable Development Goals. Engaged staff and allies established allies. GLOBE was established in The mission of Y2Y is to engage, inspire, DARE in 2017 to advance the fundamental 1993 to advance the fundamental and empower youth within and outside principle of nondiscrimination based on principle of nondiscrimination on the the World Bank. Y2Y promotes agile disability; promote better integration basis of sexual orientation or gender ideas and actions and contributes to the of staff who have a disability (physical, identity. GLOBE works closely with institutional and global youth agenda mental, emotional, or other) or who staff and management to help create through its five internal and external support dependents with a disability into a safe and inclusive environment for facing core programs, Mentorship, the World Bank community; assist in the LGBT+ employees. Since 2018, GLOBE, Global Youth Climate Network, Youth affirmation of their disability; create a together with the Global Corporate Innovation Fund, and Youth Voices. Y2Y sense of belonging and a support group; Solutions department, has provided is the largest volunteer organization in and encourage institutional support for Periodic Risk Intelligence & Security the World Bank Group. and acceptance of these staff members. Monitor (PRISM), a risk monitoring report for the LGBT+ community, to keep staff informed of security and safety challenges they may face in many parts of the world. SUPPORTED BY Impact We help our clients solve their greatest development challenges. Over the past two years, the world has faced interlinked crises that have the potential to undo decades of development gains. The aftermath of COVID-19 and the global impact of Russia’s invasion of Ukraine have hit countries that were already stressed, exacerbating food insecurity, poverty, and fragility in developing countries. Building on our Green, Resilient, and Inclusive Development approach announced in April 2021, IBRD and IDA continued throughout fiscal 2022–23 to help developing countries navigate these interlinked crises, restore growth, and stay the course on long-term development. As of fiscal 2023, the World Bank remains the largest funder of the global COVID-19 health response, with $13.5 billion committed to over 100 countries since the start of the pandemic. Key highlights IBRD IDA Provided $38.6 billion Provided $34.2 billion of new net loan commitments of new net grant and loan commitments in FY2023 in FY2023 An increase of A decrease of compared $5.5 billion to FY2022 $3.5 billion compared to FY2022 136 Operations $7.2 billion $27 billion Grants Loans Photo: Dominic Chavez / World Bank. International Development Association International Development Association (IDA)—Making a Difference The International Development Association (IDA), established in 1960, is the World Bank’s soft loan and grant window for low-income countries. 1960 IMPACT Provided financing and policy advice IDA currently supports and has been a reliable IDA’s establishment partner to 75 countries across different regions $496 billion in 114 countries of the world, providing them with financing and policy advice that help boost their economic 2018 IDA’S LEVERAGING ABILITY growth, reduce inequalities, and improve Introduced a new Mobilizes almost lives. IDA provides loans, grants, guarantees, funding model $4 for each $1 and other financial products to the poorest of donor contributions and most vulnerable countries to help meet their development needs, as well as technical 2022 RECENT DEVELOPMENTS assistance and policy advice by leveraging IDA20 Replenishment $23.5 billion its experience and expertise. It also supports $93 billion Donor countries contributions countries with disaster-risk financing and insurance against natural disasters and health- related crises and facilitates financing through 2025 INITIATIVES Continued support trust fund partnerships. in key areas Climate Food Gender Water Economic Agriculture Human change transformation Capital Providing financing on highly IDA supports programs that have long-term impact, such as empowering countries toward concessional terms to governments a resilient recovery and enabling business competitiveness, for example: of the poorest countries • In West Africa, the IDA-supported regional Food Systems Resilience Every three years, donors meet to replenish IDA resources and review its policy Program helps Chad, Ghana, framework. IDA is currently in its twentieth replenishment, IDA20, which covers and Sierra Leone increase their July 2022 to June 2025 and has a historic envelope of $93 billion, $23.5 billion of preparedness against food it contributed by a set of shareholder countries. IDA’s leveraging ability enables insecurity and improve the it to offer exceptional value for money. IDA mobilizes almost $4 for each $1 of resilience of their food systems. • donor contributions, thanks to an innovative financing model introduced in 2018 that combines donor contributions with reflows from past IDA loans as well as In Yemen, IDA worked to market borrowings. conserve water and enhance the climate resilience of vulnerable Since 1960, IDA has provided about $496 billion for investments in 114 countries. communities. The project helped IDA also has a strong track record in supporting countries through multiple construct 1,279 public and 30,686 crises. IDA20 recognizes the increasing need for concessional financing to household rainwater-harvesting support countries through crises and raise ambition on a green, resilient, and reservoirs and cisterns across inclusive future. IDA20 continues to support key areas such as climate change, Yemen, providing nearly 900,000 jobs and economic transformation, gender, and human capital. Recently, cubic meters of clean water. • IDA established a Crisis Facility to help strengthen crisis financing to its client countries. In Honduras, the IDA-funded Rural Competitiveness Project enhanced the regulatory framework and institutional capacity for enabling agribusiness competitiveness. The reforms allowed small-scale farmers to access credit from private financial institutions, benefiting 7,200 small-scale agriculture producers. Learn more about IDA funding and programs. IBRD and IDA Bonds Implementation of To fund development projects in member countries, IBRD and IDA the World Bank Group Climate Change finance their loans from their own equity and from funds borrowed in the capital markets through the issuance of IBRD and IDA bonds. IBRD has been issuing bonds since 1947. IBRD’s bonds are known in the capital markets as “World Bank bonds.” IDA issued its first bond in 2018. Both Action Plan 2021–2025 IBRD and IDA are rated triple-A by Moody’s and Standard & Poor’s, and Interventions on climate and development are investors view these bonds as high quality and recognize the ability of guided by the implementation of the World IBRD and IDA to intermediate the funds to support developing member Group Bank Climate Change Action Plan countries in a sustainable manner. (CCAP) 2021–2025. Through its second Action Plan, the World Bank Group is helping country As investor interest in environmental, social, and governance issues and private sector clients fully integrate their grows, IBRD and IDA continue to emphasize a holistic approach climate and development goals, identify, that includes all sectors supporting green, resilient, and inclusive and prioritize action on the most impactful development. IBRD and IDA bonds are appreciated by investors adaptation and mitigation opportunities, integrating environment, social, and governance criteria into their and use those to unlock climate finance and investment process and by those seeking to support positive impact private capital. through their bond investments. To emphasize IBRD and IDA’s holistic approach, each institution’s bonds are labeled as sustainable development bonds. This label highlights the mandate of IBRD and IDA and the mainstreaming of climate and sustainability throughout operations. Sustainable Development Bonds IBRD FY2022 IDA IBRD FY2023 IDA 0 10 20 30 40 50 Bonds Raised (in $ billions) Key highlight 1: Key Highlight 2: Key Highlight 3: Country Climate Climate finance Preparing IBRD and Development of the World Bank and IDA for Paris Reports (IBRD/IDA) Alignment The World Bank’s Country Climate and The World Bank Group tracks its Starting July 1, 2023, as stated in the Development Reports are new core climate finance using the methodology Climate Change Action Plan 2021–2025, diagnostic reports. Building on rigorous developed jointly by the Multilateral all new financing flows and guarantees research and data, the reports are Development Banks.2 Over fiscal provided by IBRD/IDA will be consistent designed to help countries prioritize 2022–23, IBRD and IDA operations with the objectives of the Paris the most impactful actions that can delivered $55.6 billion in climate Agreement and a country’s pathway reduce greenhouse gas emissions and finance (39 percent of total IBRD and toward low greenhouse gas emissions boost adaptation and resilience while IDA finance). This combined climate and climate-resilient development. delivering on broader development finance amount reflects significant In practice, this means that the task goals. These reports aim to inform progress made by IBRD/IDA toward manager of a project will have to design governments, citizens, the private sector, meeting the overall WBG target their project to support the deployment and development partners and enable of 35 percent of climate finance of lower-carbon options as applicable, engagements with the development and on average over fiscal 2021–25, as whenever technically and economically climate agendas. They are feeding into established in the Climate Change feasible, and to prevent carbon lock-in; other core IBRD and IDA diagnostics, Action Plan. In the same period, climate and ensure that material climate risks country engagements, and operations, finance was present in 94 percent of all have been assessed and reduced to an as well as helping attract financing for IBRD/IDA approved projects, indicating acceptable level. high-impact climate action. strong climate mainstreaming in IBRD/IDA operations. Forty-five percent Ahead of the July 1 launch of the Paris Between fiscal 2022 and fiscal 2023, of IBRD/IDA climate finance supported Alignment commitment, IBRD/IDA 25 Country Climate and Development adaptation over fiscal 2022–23. established internal processes and Reports covering 29 countries were The latest project-level climate finance systems to assess and demonstrate published, spanning all seven World Bank data for IBRD/IDA are available here. that every financing operation is Paris- regions, and representing 34 percent of aligned. This entails an integrated the global population and 36 percent of vetting approach for every project, using global emissions. Prior to the 2022 United publicly disclosed Instrument Methods, Nations Climate Change Conference Sector Notes, and the joint Multilateral (known as COP27), a synthesis report was Development Bank Methodological released that summarized key findings Principles, which have been publicly from the first batch of reports. 2 For more on climate change, see here. disclosed on the World Bank’s external website. The approach to Paris Alignment is tailored to the country context, in consistency with the Paris Agreement, which recognizes that countries have “differentiated needs and circumstances” in integrating climate and development. This is part of a broader Multilateral Development Bank vision to align all financing flows with the objectives of the Paris Agreement, which is reflected in the joint Multilateral Development Bank Methodological Principles developed by 10 multilateral development banks. Photo: Dana Smillie / World Bank. Nature Example: Indonesia Indonesia’s mangroves, accounting for over 20 percent of the global The World Bank has invested in natural capital for mangrove area, are critical for fighting climate change and fortifying decades, recognizing that this is critical not only livelihoods of coastal communities, with 55 percent of the total fish for maintaining biodiversity and a stable climate catch in the country consisting of mangrove-dependent species. but also for reducing poverty and inequality, To reverse their degradation over the past two decades, the Mangroves as ecosystems support jobs, livelihoods, food for Coastal Resilience Project (funded by IBRD and trust funds) security, and growth. The World Bank’s active was launched to rehabilitate 75,000 hectares of mangroves, while portfolio over fiscal 2022 comprised $2.8 billion of enhancing their protection and strengthening coastal development direct investments in nature, helping mainstream opportunities. The project will focus on four provinces: East Kalimantan, nature considerations into economic policy, North Kalimantan, North Sumatra, and Riau. Around 10,000 people from development programs, and strategic sectoral mangrove communities will benefit from development of more resilient investments. The projects cover a wide range coastal livelihoods and sustainable enterprises. of biomes, including savanna, forests, drylands, grasslands, marine, and coastal habitats across the world. The portfolio included support to 85 million hectares of terrestrial protected areas and is expected to help create 3 million hectares of protected areas and transition 31 million hectares of land to sustainable landscape- management practices. Photo: sytilin / iStockphoto. Integrity We do what is right. Doing what is right for our staff, clients, and partners is an integral part of the World Bank’s business model. Despite the challenges posed by the pandemic, the World Bank continues to strive to hold ourselves, clients, and partners to the highest ethical standards, as reflected in our Core Values and Code of Ethics and through the World Bank Evaluation Principles, the Accountability Mechanism, and other initiatives. Holding ourselves accountable to our clients Strengthening accountability and learning through evaluation The World Bank works closely with Borrowers to ensure that the project delivers its intended results and impacts. Evaluations done by Borrowers, task teams, and the Independent Evaluation Group play a key role in generating evidence about what works in different contexts and in identifying lessons for World Bank stakeholders. At the project cycle level, the Independent Evaluation Group validates 100% of the self-evaluations that World Bank operational teams conduct upon project completion. In addition, the Independent Evaluation Group conducts strategically selected project-level evaluations through Photo: Mohamad Al-Arief / World Bank. Project Performance Assessment Reports. COUNTRY 6. Completion/Validation and PARTNERSHIP Evaluation Stage FRAMEWORK IEG validates 100% of ICRS (CPF) 1. Identification Stage 6 1 IEG conducts selected Project Concept Note (PCN) project-level evaluations COMPLETION/ IDENTIFICATION VALIDATION AND EVALUATION 5. Implementation and 2. Preparation Stage 5 2 Support Stage Implementation Status Technical Assessment and Results report (ISR) Economic/Financial Institutional Capacity and IMPLEMENTATION PREPARATION AND SUPPORT institutional Arrangements Financial Management 4 3 Procurement Social and Environmental Results, Risks NEGOTIATIONS APPRAISAL AND BOARD APPROVAL 4. Negotiations and Board Approval Stage 3. Appraisal Stage Project Appraisal Document (final) Project Appraisal Document (appraisal Legal Agreements (final) stage) Memorandum of President Legal Agreements (draft) The World Bank Evaluation Principles, developed in 2019, continue to set out core principles for evaluation—as well as underlying principles for selecting, conducting, and using evaluations—as relevant to the World Bank’s mission and each institution’s mandate, system of governance, and operating environment. In agreeing to this common set of principles, the World Bank aimed to enhance development results by strengthening accountability and learning through evaluation to maximally contribute to the delivery of results. More details can be found at: https://ieg.worldbankgroup.org/ Beyond the project- or portfolio-level evaluation, the World Bank’s Group Internal Audit Vice Presidency, an independent unit reporting to the President of the World Bank and under the oversight of the Audit Committee of the Board of Executive Directors, provides senior management and the Board of Executive Directors with reasonable assurance that processes for managing and controlling risks and their overall governance are adequately designed and functioning effectively. Its work helps the World Bank serve its clients more effectively. It delivers two services—assurance and advisory—covering all key institutional areas: strategy, operations, finance, and corporate functions, including IT systems, applications, and processes. Furthermore, Group Internal Audit advises senior management in developing control solutions and monitors the implementation of senior management’s corrective actions. The work of the Group Internal Audit is carried out in accordance with the Institute of Internal Auditors International Professional Practices Framework. More details can be found at: http://www.worldbank.org/en/about/unit/internal-audit-vice-presidency Photo: Stephan Bachenheimer / World Bank. Engaging stakeholders and clients Fiscal 2022–23, the Dispute Resolution Service mediated between the parties for the World Bank’s accountability in three cases: The World Bank Accountability Mechanism is an independent complaints • Uganda: Community members affected by a World Bank- mechanism for people and communities who believe they have been financed infrastructure project or are likely to be adversely affected by a World Bank-funded project. and the government of Uganda The Accountability Mechanism houses the Inspection Panel and the new reached a settlement in the case Dispute Resolution Service. after an 18-month mediation process. • The Inspection Panel was established in 1993 as the first independent accountability mechanism at an international financial institution and Nepal: Community members continues to receive and process complaints from affected communities living along the planned pathway of a long-delayed transmission and to conduct its independent compliance investigations. The Dispute line and the government of Nepal Resolution Service became operational in 2021 and facilitates an reached and signed a dispute independent and voluntary dispute resolution process for complainants resolution agreement following a and borrowers. 12-month mediation process. The Accountability Mechanism Secretary and the Inspection Panel members report to the Board of Executive Directors and operate • Cameroon: Community members and the government independently of senior management. of Cameroon opted for dispute resolution, in a Dispute The Accountability Mechanism’s dispute resolution process is independent Resolution Service-facilitated and voluntary, where neutrals are jointly selected by both parties to help process that is currently ongoing. them resolve their disagreements in a structured process that promotes The project is jointly financed by dialogue and offers confidentiality. the World Bank, IFC, the African Development Bank, and others. The accountability mechanisms of each are coordinating their respective dispute resolution processes, with the support and agreement of the parties. More information on the Dispute Resolution Service can be found here. Holding ourselves Right to be Transparency accountable: Heard: The World Bank’s Policy on Access to Intimidation and managing Reprisals in World Information, which became effective July 1, 2010, was a pivotal shift in its integrity risks Bank Inspection Panel approach to making information available to the public. For more information Complaints see the Evolution of the World Bank’s The World Bank’s Integrity Vice Disclosure Policies. Presidency (INT) is an independent unit that investigates and pursues The World Bank’s Policy on Access to sanctions related to allegations Information has enabled the organization of fraud and corruption in World to become a global leader in transparency Bank-supported activities, including and has made a groundbreaking change allegations against World Bank staff. in how the World Bank makes information INT also supports the operational available to the public. The public now has units of the World Bank and access to information about projects under external stakeholders, mitigating preparation, projects under implementation, fraud and corruption risks through analytic and advisory activities, and sharing investigative findings, Board of Executive Directors proceedings. advice, prevention, and outreach Underlying the policy is the principle that efforts. The vice presidency reports the World Bank will disclose any information to the President of the World Bank in its possession that is not on its list of and is under the oversight of the “The voices of project-affected exceptions. Audit Committee of the Board of people are critical to the World Executive Directors. INT investigations Bank’s work, and the World Bank rely heavily on the information the insists upon high standards of unit receives, and INT encourages stakeholder engagement to stakeholders involved in or affected help achieve the best possible by activities supported by World Bank development outcomes.” funds to report suspected fraud or corruption. —Maninder Gill, Director and Chief Environmental and Social Standards Officer, World Bank. Protecting the personal data of all individuals (staff and nonstaff) In the World Bank’s Policy on Personal Data (the “World Bank Privacy Policy”), which became effective February 1, 2021, the World Bank recognizes the key role that personal data plays in its operational and transactional work, from procurement of goods and services to household surveys that support design and implementation of projects and thus advance our development mandates. Issued and approved by the Boards of Executive Directors of IBRD, IDA, IFC, and MIGA and the Secretary-General of ICSID, the policy sets out the core principles governing personal data processed by the World Bank: (i) legitimate, fair, and transparent processing; (ii) purpose limitation and data minimization; (iii) data accuracy; (iv) storage limitation; (v) data security; (vi) transfer of personal data; and (vii) accountability and review. For IBRD/IDA, the Request and Review Directive establishes the substantive and procedural methods for individuals—including staff and nonstaff—such as project-affected parties and other interested stakeholders among others to: (i) ask about the personal data the IBRD/IDA is handling (a “Request for Information” under the “Request Mechanism”); and (ii) seek redress if they reasonably believe the World Bank is not handling their personal data in compliance with the World Bank Privacy Policy (a “Call for Review” under the “Review Mechanism”). Any individuals affected by World Bank activities can make the request via [https://www.worldbank.org/en​ /programs/accountability/data-privacy]. The Request and Review Directive is supplemented with IBRD/IDA procedures for submitting and responding to Requests for Information and Calls for Review and applicable exemptions. Climate-related financial disclosures for IBRD and IDA The World Bank has been an early actor in the disclosure space. In 2003, the World Bank provided seed funding for the Global Reporting Initiative—which today is a globally accepted framework for sustainability reporting—and became the first Multilateral Development Bank to report based on the Carbon Disclosure Project. In fiscal 2022, the World Bank began reporting in accordance with the recommendations of the Task Force on Climate-Related Financial Disclosures. Our key stakeholders, shareholders, and investors are keen to understand emissions and other climate-related implications of our corporate and development activities. The World Bank supports the transparency World Bank Climate-Related encouraged by the release of the general sustainability and climate-related Financial Disclosures standards in June 2023 by the International Sustainability Standards Board. The World Bank is issuing its second climate-related The issuance of these standards is an important milestone toward a global disclosure aligned with the recommendations of the baseline of sustainability reporting standards, which will help mainstream Task Force on Climate-Related Financial Disclosures. and standardize reporting of climate-related risks and opportunities. The disclosure for fiscal 2023 demonstrates the The World Bank is actively engaging with international standard setters progress made toward identifying and managing and plans to offer large-scale capacity building and technical assistance for climate-related risks and opportunities in our governments, private sector, civil society, and other key stakeholders. financial, corporate, and development activities, as well as in our disclosure efforts. It highlights Climate reporting is evolving, as are the tools and methodologies to assess our commitment to supporting sustainable climate risk and impacts, such as the evaluation of entities’ progress in capital markets, underscoring the importance of reducing emissions and the application of scenario analysis for sovereigns. harmonized, consistent, and comparable climate The World Bank will continue to contribute to methodology improvements disclosures and a broader view of sustainability- by working with our development partners and other stakeholders. Looking related financial risks and opportunities, which ahead, we will continue to refine our approach and enhance our disclosure can help shift financial flows toward climate- and based on lessons learned and evolving best practices, while considering sustainability-aligned projects and initiatives. how disclosure standards apply to our unique business model and development mission. For full climate-related disclosure aligned with the recommendations of the Task Force on Climate- Related Financial Disclosures for fiscal 2022 and fiscal 2023. Teamwork We work together to achieve our goals. Reducing our corporate environmental impact is aligned with our institutional mission to reduce poverty, as the world’s poor are the most impacted by environmental degradation. Throughout fiscal 2022–23, as World Bank staff gradually returned to the office, Corporate Real Estate teams worked with colleagues around the globe to prepare our workspaces for a healthy and safe reopening. In parallel, we made concerted efforts to pursue our goals, such as reducing absolute carbon emissions from global facilities across the World Bank Group by 28 percent by 2026 from a 2016 baseline and reducing our food-related greenhouse gas emissions from headquarters cafeterias, coffee bars, and catering operations by 25 percent by 2030 from a 2019 baseline. Internal greenhouse gas emissions In fiscal 2022 and fiscal 2023, buildings, together with travel, constituted the largest sources of greenhouse gas emissions for the World Bank,3 a reflection of staff returning to the offices and resuming business travel. The World Bank implements a range of measures to reduce our internal greenhouse gas emissions, including using renewable energy wherever feasible and improving energy and water efficiency in our facilities. For direct and indirect carbon emissions, including those from travel, the World Bank purchases and retires carbon offsets and Renewable Energy Credits. In fiscal 2023, we retired carbon credits totaling 67,000 metric tons of carbon dioxide equivalent, covering 100 percent of carbon emissions from our buildings, corporate air travel, and headquarters food procurement (Cool Food Pledge) for fiscal 2022.4  3 The World Bank does not disaggregate GHG emissions of its global facilities between IBRD and IDA. Photo: Curt Carnemark / World Bank. 4 Data lags by one fiscal year due to the timing of data collection. Between fiscal 2021 and fiscal 2022, the World Bank’s global total emissions within the institution (scope 1 and 2) were reduced by 1,821 metric tons carbon dioxide equivalent, predominantly because our dependence on diesel generators decreased. However, scope 2 emissions remained the same even with partial return of staff to the office. This is a result of energy efficiency projects that were implemented during the pandemic-related shutdowns. The World Bank measures indirect greenhouse gas emissions (Scope 3) globally from its business air travel, contractor-owned vehicles, and World Bank headquarters food-procurement emissions. Fiscal 2022 scope 3 carbon emissions from business air travel increased from fiscal 2021 (pandemic levels) but were only 24 percent of fiscal 2019 (pre-pandemic levels). Fiscal 2020 business air travel was also impacted by three and a half months of the COVID-19 pandemic, which is why fiscal 2019 is the baseline for business travel emissions. Photo: A’Melody Lee / World Bank. Greenhouse Gas Emissions Greenhouse Gas Emissions (tCO2eq) FY22 FY21 FY20 FY19 Scope 1 4,539 6,317 8,348 7,114 Scope 2 29,016 29,059 36,843 42,654 Scope 3 52,950 4,434 138,392 202,448 Note: Ton of carbon dioxide equivalent (tCO2eq) is a metric measure used to compare the emissions from various greenhouse gases on the basis of their global-warming potential, by converting amounts of other gases to the equivalent amount of carbon dioxide with the same global warming potential. FY means fiscal year. a. Data lag by one fiscal year due to timing of data collection. World Bank facilities were closed or at reduced occupancy for most of fiscal 2022. For additional details and data, please visit the Corporate Responsibility website. Working together toward a Other examples of headquarters’ initiatives include: sustainable environment • Upgrading the water- management cooling tower in Sustainability is incorporated into all aspects of our corporate real estate the Main Campus building to save portfolio. During the pandemic, the World Bank introduced a new strategy 1 million liters of water per year to keep our global facilities up to date while optimizing sustainability following a comprehensive audit. and smart use of space. This strategic approach is designed to yield various benefits, including equity, adaptability, efficiency and increased workplace satisfaction. It is aligned with the evolving dynamics of modern • Repairing, replacing, and upgrading over 300 light sensors organizations and aims to contribute to a more productive, harmonious for additional energy savings up workplace environment. For example, in World Bank buildings where central to 200 kilowatt hours per month systems/heating, ventilation, and air conditioning (HVAC) control indoor across the five headquarters air quality, we upgraded all air filters to MERV 15 filters, where possible, to buildings. maintain healthy air quality; in other locations with split air systems, we included additional ventilation in the facility design. At headquarters, we deployed touchless technology to faucets, doors, and lighting in high- • Comprehensive energy audits across all headquarters buildings traffic areas, where possible, for energy and water conservation as well as identified more than 80 effective enhanced accessibility. energy- and emissions-reducing projects. Funding has been We have incorporated new design concepts in the recently completed re-prioritized to accelerate the Burkina Faso country office and in the ongoing country project in Lebanon. implementation of several of the Aspects of the modernization pilots have been applied to recent projects in identified high-impact projects. Australia, Bhutan, Brazil, France, Kenya, Nepal, Sierra Leone, Sri Lanka, and other offices: • A new “biophilia” installation, an interior landscape with beautiful trees and greenery, welcomed D.C. staff backto headquarters. Based on our innate instinct to connect with nature and other living beings, “biophilia” can reduce stress, improve cognitive function, and enhance mood and creativity. Paris, France Dhaka, Bangladesh Timor Leste The Paris office is enhancing its The World Bank campus represents sustainability by connecting to the first buildings in the country to Europe’s largest cooling network. achieve preliminary EDGE certification The network provides chilled water with reductions in energy and water from the Seine to cool the building, consumption of more than 40 percent eliminating the need to own or and of materials by more than 50 percent maintain air conditioners or chillers. compared to local baseline buildings. This is part of a project to convert the aging building into one with modern office space, infrastructure, and materials while optimizing the World Bank footprint to support workforce expansion. The Dhaka office achieved the Leadership in Energy and Environmental Design (LEED) Gold Certification for Operations and Maintenance in 2023. In the same year, its project team won the first “Best Overall” Country Office Green Award from the World Bank Staff Association Environmental Sustainability Working Group. The Bangladesh office is one of the largest country offices, with around 370 staff. 57% WATER SAVED 4% decrease of WB 147 megaliters of global energy use from water saved since FY16 to FY22 fiscal 2016 Promoting an inclusive and Cool Food Pledge sustainable supply chain In fiscal 2020, the World Bank Group signed the World Resource Institute’s Cool Food Pledge, The World Bank is committed to reducing the social and environmental which commits the organization to reducing impacts of our supply chain. In fiscal 2023, $2 billion in goods and food-related greenhouse gas emissions from its services were purchased, continuing the return to pre-pandemic levels. headquarters cafeterias, coffee bars, and catering Major contracts include consulting services, travel, technology and operations by 25 percent by 2030 relative to a telecommunications, health and benefits, and construction and renovation. 2019 baseline. Since returning to the office, the All vendors are required to adhere to the World Bank policies on socially Food Services team has engaged with staff on the and environmentally responsible procurement. Products and services with pledge through strategic marketing. For example, considerable sustainability impacts, or those procured in large amounts, during the quarterly Plant Power Days, all meals include additional environmental, social, and supplier diversity and inclusion served in the headquarters facilities, including evaluation criteria. Notable achievements through fiscal 2023 are: cafeterias, catered events, and childcare centers, are plant-based or vegetarian. Vendors representing 25 percent of our corporate spend have a validated or committed target in line with the Science- Based Target initiative. Efforts to increase representation from women- and minority- owned businesses in our corporate procurement to 7 percent globally by 2023 and 8 percent in the United States by 2025 25% Reduction on food-related are well underway. Results will be announced in fiscal 2024.5 greenhouse gas emissions In fiscal 2023, engagement with women-owned businesses as from its HQ operations vendors more than tripled since measurement began in 2018. In 2023, for the second year in a row, the World Bank was recognized as a Platinum Top Global Champion for Supplier Diversity and Inclusion by WEConnect International.6 5 Final fiscal 2023 figures are not available at the time of publication; they will be published in fiscal 2024. 6 The Platinum level is awarded to an institution with the top level of commitment to global supplier diversity and inclusion and is recognized as the global champion regarding inclusive spending, policies, and procedures. Promoting resource conservation and efficiency Our headquarters has a standardized recycling, composting, and waste collection system, resulting in significant reductions in landfill waste and significant increases in compost. We measure and track Waste Streams headquarters recycling, composting, and Waste streams for FY23 (World Bank Headquarters) waste disposal rates by building. Typical nonhazardous waste items from Bank facilities include paper, bottles, cans, 50% 50% Landfill Recycled/composted cardboard, food waste, toner cartridges, carpet tiles, and electronics. Prior to the COVID-19 pandemic in fiscal 2019, the Bank headquarters facilities produced 2,248 metric tons of nonhazardous waste, of which over 61 percent was diverted from landfill through recycling, composting, and donation programs. Total nonhazardous waste generated at World Bank headquarters in fiscal 2023 was 1,788 metric tons, with 50 percent of this waste diverted from landfill, compared to 1,627 metric tons in fiscal 2022 of which 40 percent was diverted from landfill. The increase in nonhazardous waste in fiscal 2023 is attributed to Bank staff return to office. Information Technology ITS Sustainability Services (ITS) Working Group The Information Technology Services unit—with the help of staff—continued The Information Technology Services to digitize the World Bank and consolidated our data centers. Sustainability Working Group is a staff volunteer group. Established within the ITS unit in fiscal 2023, the group helped keep staff focused on environmental sustainability topics related to Data center consolidation: Between 2015 and 2023, the World information technology: Bank achieved 60 percent in energy savings (kilowatt hours) from our data centers by consolidating the number of data centers either contracted or owned by the World Bank and by upgrading servers, power and cooling delivery, and designs of the data centers themselves. • Laptop bag recycling: provisioned 250 recycled laptop bags to staff in headquarters to help reduce waste, with a target of DocuSign enables staff to easily upload and send documents 750 in fiscal 2024; for recipients to sign electronically from any computer or mobile device. DocuSign helps digitize transactions; ensures • E-waste collection: business continuity with faster turnaround times; eliminates printing, shipping, and paper costs; reduces our carbon collected footprint; and contributes to simplification efforts. Since the and recycled 2 tons of e-waste Introduction of DocuSign, the World Bank has saved more through ITS campaigns in than 2 million pages. headquarters; • Carbon footprint mapping: Reduced numbers of printers and printing volume: The number of centrally managed World Bank printers at headquarters was reduced by 37 percent to 605 devices due conducting industry research to lower volumes of printing and users printing fewer hard to better measure, monitor, and copies of documents. manage the ITS carbon footprint for provisioning and maintaining productivity devices, such as laptops, desktops, iPhones, and iPads. The vision and mission of the World Bank Group are the foundation of our 2023 Sustainability Review: VISION: To create a world free of poverty on a livable planet. MISSION: To end extreme poverty and boost prosperity on a livable planet. Global Institution The World Bank (Bank) consists of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) and collectively with the International The Institutions of the Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and World Bank Group the International Centre for Settlement of Investment Disputes (ICSID) constitutes the World Bank Group (Bank Group). These institutions represent one of the world’s largest sources of knowledge and financing for developing countries and share a commitment to ending extreme poverty and boosting shared prosperity by fostering green, resilient, and inclusive development. Their staff represent 181 nationalities and IBRD IDA IFC MIGA ICSID International Bank International International Multilateral International Centre work in more than 140 countries. The for Reconstruction and Development Development Association Finance Corporation Investment Guarantee Agency for Settlement of Investment Disputes headquarters are in Washington. provides loans, lends to governments provides financing on equity, and advisory provides political risk provides of middle-income highly concessional services and insurance and credit international facilities For more information, visit: https://www​ and creditworthy terms to mobilizes additional enhancement to for conciliation and low-income governments of the capital from other investors and lenders arbitration of .WorldBank​.org/about and https://www​ countries. poorest countries. sources to stimulate to facilitate foreign investment disputes private sector direct investment in .WorldBank.org/en​/­about/contacts investment in emerging developing countries. economies. International Bank for International Development Reconstruction and Association (IDA) Development (IBRD) The International Development Association (IDA), established in 1960 to help low-income countries, is one of The International Bank for Reconstruction and the largest sources of assistance for the world’s 75 poorest Development (IBRD), established in 1944 to countries and is the single largest source of donor funds help rebuild Europe after World War II, is a global for basic social services in these countries. It provides development cooperative owned by 189 member zero- to low-interest loans (called “credits”) and grants for countries and the largest development bank in the programs that boost economic growth, reduce inequalities, world. It provides loans, guarantees, risk management and improve people’s living conditions. IDA also provides products, and advisory services to creditworthy significant debt relief through the Heavily Indebted Poor middle-income and low-income countries, as well Countries Initiative and the Multilateral Debt Relief Initiative. as coordinating responses to regional and global Historically, IDA replenishes its resources every three years challenges. IBRD raises most of its funds in the with contributions from donors and the Bank, and since world’s financial markets, has maintained a triple-A 2018 uses an innovative financing model that combines rating since 1959, and earns income every year from donor contributions with reflows from past IDA credits as the return on its equity and from the small margin it well as capital market borrowings. makes on lending. For a full list of IBRD and IDA members, visit: For more information on the IBRD’s business model, https://www.WorldBank.org/en/about/leadership/members visit: Management’s Discussion & Analysis and Financial Statements June 30, 2023 About this report The Sustainability Review 2023 highlights World Bank activities undertaken in fiscal 2022–23 (July 1, 2021, to June 30, 2023) to manage the environmental, social, and economic impacts of internal business operations. The review complements the standalone index of indicators prepared in accordance with the Global Reporting Initiative Standards, which can be found here. Scope: The content and data in this review relate to the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). It does not cover activities of the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), or the International Centre for Settlement of Investment Disputes (ICSID), unless indicated in the text. These institutions publish separate annual reports. Except for the eligibility of support and terms of lending to client countries, IBRD and IDA are integrated and work as a single unit. For more information see, worldbank.org/about. Materiality: The topics deemed relevant for disclosure have been identified by assessing annual corporate priorities outlined by the institution’s Boards and President, considering stakeholder input, and ascertaining the sustainability impacts of carrying out the institution’s mission and vision. Stakeholder feedback is gained through three key channels: the Country Opinion Survey Program, civil society feedback, and queries from environmental, social, and governance research groups. What Is Material? Boundaries are defined based on where the impacts occur for a material topic. Indirect impacts lie within the “operational” boundary. Direct impacts fall within the “corporate” boundary. For each material topic, boundaries are specified in the management approach disclosures. Impacts external to the organization [“operational boundary”] “Operational boundary” denotes indirect impacts that occur in member countries as a result of Bank lending and analytical services and may not be directly controlled by the Bank’s management. Impacts stemming from the Bank’s work with clients are specified as “operational impacts.” Impacts internal to the organization [“corporate boundary”] “Corporate boundary” refers to the impact from activities over which the Bank has direct control, such as operating Bank facilities and managing Bank staff members. Related reports World Bank Annual GRI 2023 Report 2023 This World Bank Global “A New Era in Reporting Initiative (GRI) Development”, each year, Index 2023 inventories the Annual Report explores the sustainability a challenge facing the considerations used in developing world and World Bank lending and how the World Bank is analytical services and in responding to help people its corporate practices. help themselves. World Bank Impact Task Force on Report 2022 Climate-related Financial Disclosures The 2022 World Bank Impact Report covers all The TCFD has developed a World Bank bond issuance framework to help public and the entire portfolio of companies and other IBRD-financed projects in organizations more effectively fiscal year 2022. disclose climate-related risks and opportunities through their existing reporting processes.