Indigenous Peoples’ organizations have urged the International Finance Corporation (IFC) – the private lending arm of the World Bank Group – to establish and implement a dedicated consultation process and an Indigenous Peoples Advisory Group as part of the ongoing update to IFC’s Sustainability Framework, which consists of its Sustainability Policy, Performance Standards and Access to Information Policy.
In a letter submitted to the IFC via email, the organizations emphasized the need for meaningful engagement with Indigenous Peoples directly impacted by IFC-financed activities. They highlighted the limitations of the IFC’s efforts for consultations at international events like the UN Permanent Forum on Indigenous Issues, which often exclude affected communities due to logistical and financial barriers. They have stressed that Indigenous Peoples serve as stewards of lands critical to sustainable development and climate goals, and thus meaningful engagement with Indigenous Peoples reduces risks of conflict, delays, and reputational harm, enhancing the legitimacy of IFC investments.
Accordingly, the organizations have proposed practical measures modelled on precedents, such as the engagement of Indigenous Peoples’ representatives with the Asian Development Bank through an Indigenous Peoples Advisory Group during its Safeguards Policy review. They have thus urged the IFC to:
- Co-design, resource, and implement, in conjunction with Indigenous Peoples’ representatives, a dedicated, meaningful, and time-bound consultation process with Indigenous Peoples for the ongoing update of the IFC’s Sustainability Framework;
- Co-develop, support, resource, and establish, in conjunction with Indigenous Peoples’ representatives, an Indigenous Peoples Advisory Group to ensure consistent and informed engagement of Indigenous Peoples in the update, implementation, and monitoring of the Sustainability Framework.
- Ensure the consultation process and mechanism are Indigenous-led and grounded in the following principles:
- Independence from the influence of the IFC and its borrowers.
- Zero tolerance for reprisals against participating Indigenous leaders, including measures to ensure safe spaces for dialogue and provide accessibility support
- Representation from diverse Indigenous territories and regions, particularly from those countries where the IFC operates.
- Representation from Indigenous women, youth, and other marginalized groups within Indigenous Peoples, and
- Establish a clear, substantive mandate to provide independent advice on FPIC implementation across IFC‑financed activities/projects, monitor and enforce compliance with the IFC Sustainability Framework, strengthen public accountability of the IFC, and advance Indigenous Peoples’ self‑determined, Indigenous‑led development strategies.
In the letter, the organizations have also noted that meaningful engagement with Indigenous Peoples is a mater of respect of their rights, including under the UN Declaration on the Rights of Indigenous Peoples. The Declaration requires that the the organs and specialized agencies of the UN system and other intergovernmental organizations, including the World Bank Group, should contribute to the full realization of the Declaration through the mobilization, inter alia, of financial cooperation and technical assistance, and achieving this goal requires establishing mechanisms to ensure the participation of Indigenous Peoples in decisions on issues affecting them. They have thus called on the IFC to engage with Indigenous Peoples as not only stakeholders but as rights-holders.
The joint letter was submitted by Asia Indigenous Peoples Network on Extractive Industries and Energy (AIPNEE), Asia Indigenous Peoples Pact (AIPP), Community Empowerment and Social Justice Network (CEMSOJ), Indigenous Peoples Rights International (IPRI), Right Energy Partnership with Indigenous Peoples (REP), Securing Indigenous Peoples Rights in the Green Economy (SIRGE), and Tallgrass Institute.
Download the full letter here.
