IFC Challenges Industry to Value Collaborative Community Engagement

By Alicia Ness

This week, the International Finance Corporation convened its 7th Annual Sustainability Summit. The topic: Dealing With Uncertainty. Though companies are clearly making strides in their commitments to sustainability standards, attitudes have been slow to shift from a defensive posture of compliance towards an optimistic embrace of the strategic benefit of strong community relationships reinforced by ambitious development goals. Though an emerging shift in culture is clearly imminent, most still remain wary of new approaches in communication.

At the evening reception on Wednesday night, the IFC’s German Vegarra, Associate Director and Global Head of Agribusiness and Forestry, welcomed the convened crowd, harking back to his start at the Bank 27 years ago when sustainability was unheard of. Now in its 7th year, some NGO leaders heralded “the softening of the IFC” in embracing topics concerning “hope” and “shared opportunity”. One NGO leader, speaking last on a panel, joked with his fellow panelists, all of whom represented extractives industry corporations, that they had “out-NGOed the NGO” with their thoughtfulness about land rights and communities.

Extractives, infrastructure, and agribusiness companies face unique industry challenges—their growth strategies inevitably require some infringement upon landholders, some of whom are indigenous peoples.  But this burden has a distinct silver lining: tied to the land, companies from these sectors are able to make lasting commitments to local communities that can serve as foundations for future trust. Yet, today, many of the firms active in these sectors still see community engagement as a way of mitigating damage. They often undervalue community investment strategies that support livelihoods beyond those directly linked to their projects. This attitude is changing. CONTINUE READING.