Human Rights
Stakeholder Feedback
Frequently Asked Question
How are human rights addressed in
the Performance Standards? Could
human rights have their own
Performance Standard?
How do the Performance Standards
clearly define the responsibilities of
companies on human rights issues?
IFC Response
The IFC Sustainability Framework supports many
important human rights, such as labor rights, rights
of Indigenous Peoples, and right to health (through
clean environment). IFC’s approach to human rights
focuses on the identification of relevant linkages
between environmental and social considerations
and human rights. The Sustainability Policy and the
Performance Standards reflect this view, by
integrating human rights issues into applicable
sections.
IFC released in June 2010 an analysis of “The
International Bill of Human Rights and IFC Policies
and Performance Standards” that includes a matrix
mapping the draft Performance Standards to the
International Bill of Human Rights. The introductory
paragraphs summarize how each human right is
reflected in Version 1 of the revised Policies and
Performance Standards.
After careful consideration, it was decided not to
introduce a new performance standard on human
rights. The issues related to human rights are so
pervasive that they are best treated as fully
mainstreamed throughout the Performance
Standards.
In the Sustainability Policy, IFC recognizes the
responsibility of the private sector to respect human
rights through environmental and social due
diligence. This comprises identifying adverse risks
and impacts, along with measures to avoid or
address them, including through creating access to
an effective grievance mechanism.
IFC Clients are responsible for identifying and
addressing environmental and social risks and
impacts through the application of the Performance
Standards, which also address many human rights.
In addition, PS 1 and its accompanying Guidance
Note provide information on using human rights

Do the Performance Standards outline
the responsibilities of financial
intermediaries in regards to respect of
human rights?
Do the Performance Standards require
an independent commission to
monitor projects with high-risk human
rights issues?
Comment
Environmental pollution can result in
violations of the right to an adequate
standard of living, including the rights
to food, water, housing, the right to
health and the right to life itself.
Performance Standard 3, which deals
with pollution and prevention of
pollution, continues to make no
explicit requirements for clients to
identify and address the risks or
impacts that pollution may have in
relation to human rights.
impact assessments as a voluntary risk
management tool in high-risk situations.
IFC reviews the existing and prospective portfolio of
financial intermediary (FI) clients to identify risk and
to define risk-management requirements, as well as
to review the FIs’ implementation capacity, including
their social and environmental management
systems. IFC supports the capacity development of
the banking and financial sector to manage social
and environmental risks.
PS 1 further defines how clients will manage their
social and environmental performance, including
regarding labor and human rights. This applies to
business activities with social and/or environmental
risks and impacts that should be assessed and
managed. “Business activities” refer to a wide range
of investment products, including direct lending,
either corporate or project-level finance, as well as
lending to various financial intermediaries,
investment funds, and structured financial facilities.
PS 1 also applies to the business entities in which
minority equity investments are made, and to which
financial guarantees are provided.
Clients may consider obtaining the advice of third-
party monitoring agencies or commissions in some
cases, and in certain high-risk situations (e.g., large-
scale resettlement), IFC may require independent
monitoring.
See FAQ Performance Standards 3 – “Human rights
and health” section.
The Performance Standard should See FAQ Performance Standards 3 – “Water
require consideration of affordable Access” section.
and equitable access to water and
sanitation.
Performance Standard 5 still does not Performance Standard 5 now addresses forced
refer to forced evictions or clearly evictions.
stipulate that
displacement/resettlement should not
contravene international standards on
evictions.
Consultation vs. Consent for See FAQ Performance Standard 7.
Indigenous Peoples.

Note: IFC’s responses to questions and comments are based on the current draft
(Version 2) of IFC’s Sustainability Framework. They are subject to change as the
Framework is further revised. No text in the Framework or in these interim comments and
responses is final until approved by IFC’s Management and Board.