The International Finance Corporation (IFC) has initiated a sweeping, multi-year review of its Sustainability Framework—one of the most influential environmental and social safeguard systems for private sector investments in emerging markets. The update, set to conclude in 2028, will bring the framework in line with evolving global expectations around climate risk, human rights, and responsible finance.
Since its last revision in 2012, the IFC’s framework has served as the backbone of environmental and social governance (ESG) standards for more than $4.5 trillion in financial flows. It guides not only IFC’s own investments but also those of over 120 financial institutions aligned with the Equator Principles.
The update will unfold in two major phases. Phase I, running through early 2026, will gather stakeholder feedback on emerging themes including climate change, Indigenous rights, and the role of financial intermediaries. Phase II, extending through 2028, will involve formal public consultations and draft releases of the new framework.
The revised standards are expected to have broad implications for ESG policies across development finance, private equity, and sustainable debt in high-risk regions.
“This review represents a generational opportunity to align trillions in financial flows with responsible investment practices,” said Kate Geary, Programme Director at Recourse.
The IFC’s move reflects a growing global push for more transparent, accountable, and climate-aligned investment frameworks—especially in regions most vulnerable to environmental and social risks.
