[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-111250-en":3,"doc-seo-111250-105":29,"detail-sidebar-cat-0-en-105":91},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},111250,16904993612988,"Olivia Brown","https://ap-avatar.wpscdn.com/davatar_a8503ba1806abce46bf441b54a3ca4cd",8,"Research & Report","Leveraging IFC’s Influence to Enhance Environmental and Social (E&S) Outcomes - Advisory Note","Leveraging IFC’s Influence to Enhance Environmental and Social (E&S) Outcomes analyzes patterns from CAO cases on how IFC handles leverage to improve environmental and social results. The advisory note identifies key steps across four priority areas: strengthening leverage foundations in due diligence, closing gaps in current leverage practice, expanding the toolbox for applying and maintaining leverage, and formalizing a unified leverage strategy across investments.","Public Disclosure Authorized Public Disclosure Authorized  \nApril 9th, 2026  \nAdvisory Note  \nLeveraging IFC’s Influence to Enhance Environmental and Social (E&S) Outcomes  \nAttached, for public distribution, is CAO’s final Advisory Note on Leveraging IFC’s Influence to Enhance Environmental and Social (E&S) Outcomes. CAO presented key findings from this Note during the CODE discussion on IFC Leverage for E&S Outcomes on Friday, February 27th, 2026, where it was agreed that CAO will share the final Advisory Note within a week. CAO submitted the PDF version of the Note to BOS on March 9th, 2026, for information and internal distribution. This is the fully designed and laid-out version of the same Note for public distribution.  \nThis Advisory Note examines patterns observed in CAO cases, regarding IFC’s handling of leverage in pursuit of improved E&S outcomes. This Note outlines key steps for IFC to consider in four areas to strengthen its use of leverage: 1/Strengthening the foundations of IFC’s leverage in due diligence, 2/ Closing the gaps in IFC’s current leverage practice, 3/ Expanding IFC’s toolbox for applying and maintaining its leverage, and 4/ Formalizing and unifying IFC’s strategy for leverage across all its investments.  \nCAO looks forward to further discussions with IFC and CODE on this matter.  \nYours sincerely,  \nJanine Ferretti  \nCAO Director General  \nLeveraging IFC’s Influence to Enhance Environmental and Social (E&S) Outcomes  \nCAO Advisory Insight Series: Strategic E&S Topics  \nAdvisory Note © 2026 Compliance Advisor Ombudsman (CAO)  \nAll rights reserved.  \nThe Office of the Compliance Advisor Ombudsman (CAO) 2121 Pennsylvania Avenue NW  \nWashington, DC 20433 USA Telephone: + 1 202 458 1973  \n[Website: ](Website: www.cao-ombudsman.org)[www.cao-ombudsman.org](Website: www.cao-ombudsman.org)  \n[e-mail: ](e-mail: cao@worldbankgroup.org)[cao@worldbankgroup.org](e-mail: cao@worldbankgroup.org)  \nAcknowledgments  \nThis Advisory Note was written by Julia Gallu and Carly Turner (CAO) under the direction of Janine Ferretti, CAO Director General. CAO acknowledges research inputs from Adriana Palacios Corrales, Natalya Coyle, and Agustina Palencia. This work benefited from guidance and peer review from an advisory group of legal, financial, and operational experts: Glen Armstrong, David Harris, David Hunter, and Ramanie Kunanayagam. Additional peer review was conducted by Rasmus Heltberg, Jonathan Richart, and Margaret Wachenfeld. Expert input was provided by Seynabou Ba, Mark Eckstein, and Daniel Siddy. Thanks to CAO colleagues Irum Ahsan, Patrick Flanagan, Raquel Gomez Fernandez, Reiko Ishihara-Brito, Sontia Sophie Nkenkeu Keck, and Gabriela Stocks for their contributions, and to IFC/MIGA staff who gave us their valuable time and insights.  \nEditors: Polly Ghazi, Nancy Morrison (the Morrison Group, Inc.), and Nick Moschovakis (Communications Development Inc.)  \nDesign: Owen Design Company, Virginia, USA  \nLeveraging IFC’s Influence to Enhance Environmental and Social (E&S) Outcomes  \nCAO Advisory Insight Series: Strategic E&S Topics  \nContents  \nExecutive Summary 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 6  \nAbout this Advisory Note 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 14  \n1􀀮 What is Leverage? 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 16  \n1.1 The Link Between Leverage and Remedy .............................. 18  \n1.2 Circumstances Where Insufficient Leverage Contributes to Problems: Lessons from CAO Cases .............................................. 18  \n2. The Foundations of IFC’s Leverage 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 􀀮 22  \n2.1 Thorough Upfront E&S Risk and Impact Assessment ....................... 23  \n2.2 Adaptive Management, Built on Robust Due Diligence...................... 25  \n2.3 Thorough Assessments of Client Capacity and Commitment .....","cbCaismJjHvqw5IJ","https://ap.wps.com/l/cbCaismJjHvqw5IJ","pdf",8882008,1,85,"English","en",105,"# Executive Summary\n# About this Advisory Note\n# What is Leverage?\n## The Link Between Leverage and Remedy\n## Circumstances Where Insufficient Leverage Contributes to Problems: Lessons from CAO Cases\n# The Foundations of IFC’s Leverage\n## Thorough Upfront E&S Risk and Impact Assessment\n## Adaptive Management, Built on Robust Due Diligence\n## Thorough Assessments of Client Capacity and Commitment\n## High-quality E&S Action Plans (ESAPs) for Effective Leverage\n## Maintaining Leverage Through to the Time of Responsible Exit\n# IFC’s Current Core Instruments for Increasing Leverage\n## Relationship-based Leverage and Repeat Business\n## Contractual Provisions\n# Leverage Gaps\n## Not Employing Available Leverage\n## Disbursing Investments in a Single Tranche\n## Granting Waivers or Extensions Without Reconfirming E&S Commitments to Pending Actions\n# Enhancing IFC’s Approach to Leverage: Expanding the Toolbox\n## Financial Incentives—Positive and Negative\n## Syndication and Co-financing Leverage\n## Board Representation and Governance Leverage\n# Designing and Implementing a Unified Leverage Strategy\n# Summary of Recommendations and Conclusion\n## Leverage Enables Risk-taking\n## Recommendations to Increase IFC’s Leverage for E&S Outcomes\n## Conclusion\n# Appendix A. Methodology\n# Appendix B. Details of CAO Cases Presented in Table 2","[{\"question\":\"What purpose does the advisory note serve?\",\"answer\":\"It examines how IFC’s use of leverage in CAO cases affects progress toward better environmental and social (E\\u0026S) outcomes, and it sets out actions IFC can take to strengthen leverage.\"},{\"question\":\"How does the note propose strengthening IFC’s leverage in due diligence?\",\"answer\":\"It emphasizes reinforcing upfront E\\u0026S risk and impact assessment, using robust due diligence to support adaptive management, and assessing client capacity and commitment thoroughly.\"},{\"question\":\"What are the key areas where IFC should improve its leverage practice?\",\"answer\":\"The note organizes recommendations into four areas: strengthening leverage foundations, closing gaps in current practice, expanding the toolbox for applying and maintaining leverage, and formalizing a unified leverage strategy across 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