The World Bank has worked for many years to integrate environmental and social sustainability into our operations and our interactions with stakeholders. This second sustainability review reiterates our continuing efforts to measure and communicate our organization’s performance during the two-year period since our first review. It describes our sustainability priorities, our work to strengthen results on the ground, our commitment to climate change, and our continuing commitment to transparency and accountability.

Our Approach (GRI 1.1/1.2/2.12/2.14)

In Focus on Sustainability 2004, we brought together information on the basic systems of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) that bear on economic, environmental, and social sustainability, including how we are governed; our products and practices, such as lending, technical assistance, knowledge-sharing; and our environmental and social safeguards. Although much has changed since this report, these basic activities and policies remain in place.

The objective of this report is to communicate IBRD/IDA’s evolving development priorities and refers to Focus on Sustainability 2004 and the World Bank’s Annual Report to provide the fuller picture of the Bank’s complex suite of activities.     

This report covers two distinct scopes of reporting. Part One, on operations, reports on our governance structure, sustainability policies and priorities, and our implementation measures, investment data, and project examples.Part Two, on the corporate footprint, reports on our role as an employer and consumer.  Issues like corporate procurement policies, staff diversity, energy consumption, and waste management are included. 

Priority topics are treated in summary—we provide resources in the report annexes for those who are interested in pursuing the issues in more depth, from promoting the international development goals, addressing climate change, progressing on results management, or measuring our carbon footprint. For a more complete picture, we encourage those who are interested to explore the vast wealth of information on our Web site and in our publications, many of which are free.

Important Changes in FY 2005-2006

On May 31, 2005, the World Bank Group bid farewell to James Wolfensohn, who served as President for 10 years and who guided the Bank through a fundamental shift in development strategies—strengthening the institution’s ability to fight poverty, to engage civil society, and to support sustainable development. On June 1, 2005, Paul Wolfowitz assumed the Presidency of the World Bank Group and began immediately to articulate his vision for the organization.  The President has taken a strong stance against corruption and made clear the priority for the Bank is to continue to reach out to the poorest countries of the world to alleviate poverty.  Some organizational changes have been made since last year, including the combination of the Environmentally and Socially Sustainable Development (ESSD) and Infrastructure (INF) networks into a new network called Sustainable Development, led by Kathy Sierra.  The purpose of consolidating these two networks is to mainstream environmental issues, improve synergies, better integrate core operations, and ensure that the Bank’s work is economically, environmentally, and socially sustainable as we increase our investment in infrastructure. 

In our first report, we stated that we would report on progress on environmentally and socially responsible procurement to guide the World Bank’s procurement community. We have developed tools and guidance notes on environmental aspects in technical specifications and bid evaluation.  We have also prepared clauses for standard bidding documents on forced labor, employment records, and worker organizations and a guidance note on pest management. This effort is still in its infancy, however, so is not described in this report. We have a long road ahead of us.

Terminology and Data (GRI 2.1/2.11/2.19)

The World Bank is made up of the International Bank of Reconstruction and Development (IBRD) and the International Development Association (IDA). At times, we also refer to the World Bank Group, depending on the context or the data available, which includes the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for the Settlement of Investment Disputes (ICSID), in addition to the IBRD and IDA.

This review reflects policy and managerial changes that have taken place in the two fiscal years since our first review, from July 1, 2004 to June 30, 2006.  Much of the data is reported for the fiscal year, which is the period from July 1^st to June 30^th. Currency amounts are expressed in U.S. dollars.  No significant changes have been made since the previous years in measurements methods applied to key economic, environmental, and social information.

GRI Guidelines (GRI 2.17)

The World Bank supports the Global Reporting Initiative (GRI) and is a member of the GRI Charter Group of founding members.

As in Focus on Sustainability 2004, GRI indicators from the 2002 Sustainability Reporting Guidelines are noted next to corresponding sections of text.  We also refer to GRI’s  pilot Public Sector Supplement and Financial Supplement.  The GRI index at the end of the report provides a guide to the location of information.  In many cases, the indicators are reported on in Focus on Sustainability 2004, The World Bank Annual Report 2005 andThe World Bank Annual Report 2006, in other listed publications, or on the World Bank Web site, www.worldbank.org.

Some GRI indicators have not been referenced because they are not relevant to our line of business or because sufficient data are not available. They are noted as such in the index.

For Further Information (GRI 2.10/2.22)

Additional information on the issues discussed in this review can be found at www.worldbank.org and through the Web sites provided in the Annex. Questions about the review should be addressed to eadvisor@worldbank.org. The Review is available electronically at www.worldbank.org/cesr.