The International Finance Corporation (IFC), part of the World Bank Group (WGB), has developed performance standards to govern environmentally and socially responsible private sectors development. These standards have evolved over time in response to environmental damage or negative impacts on local communities. Such negative impacts also have negative reputation and financial impacts for investors in these projects. Because of increasing information access and awareness over time, it has become in everyone’s best interests to conduct development in socially and environmentally responsible ways. The IFC Performance Standards include, but are not limited to:
1. Social and Environmental Assessment and Management Systems
2. Labour and Working Conditions
3. Community Health, Safety and Security
4. Land Acquisition and Involuntary Resettlement
5. Cultural Heritage
According to IFC Performance Standards, the process from moving from Pre-Feasibility Study to Feasibility Study to Construction of a hydropower project is explained in this diagram.