When IFC invests in palm oil production, how does it ensure that the client conducts its palm oil production operations in a sustainable way?

When a project is proposed for financing, IFC conducts a social and environmental review of the project as part of its overall due diligence. Palm oil production projects are always reviewed carefully to determine their level of environmental and social impacts. If significant potential environmental and social impacts are identified, IFC works with the client to determine mitigative measures, and helps the client build its capacity to manage these impacts.

IFC is a member of the Roundtable on Sustainable Palm Oil (RSPO), which is currently working on establishing sustainable practices in the sector. The RSPO is a multi-stakeholder association which includes palm oil producers, users and civil society groups such as the World Wildlife Fund, Oxfam, the Rainforest Alliance, and Conservation International, among others. In November 2007, the Roundtable launched a certification process to validate and certify claims by palm oil companies of compliance with RSPO principles and criteria.

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