This 2016 World Bank GRI Index provides an overview of sustainability considerations within the World Bank’s lending and analytical services as well as its corporate activities. This index of sustainability indicators has been prepared in accordance with the internationally recognized standard for sustainability reporting Global Reporting Initiative (GRI) guidelines (https://www.globalreporting.org) and complies with the “core option.” The World Bank aims to be comprehensive in its reporting and thus the Index includes indicators from GRI's Financial Sector Supplement. The GRI Index covers activities from fiscal 2016, July 1, 2015, through June 30, 2016. About the World Bank Group The World Bank Group plays a key role in the global effort to end extreme poverty and boost shared prosperity. It consists of five institutions: the World Bank, which includes the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Working together in more than 130 countries, these institutions provide financing, advice, and other solutions that enable countries to address the most urgent challenges of development. The GRI Index addresses the activities of the World Bank. Except for the eligibility of support and terms of lending to member countries, IBRD and IDA are tightly integrated and work as a single unit. Certain activities span across the World Bank Group and are therefore cited as such in the content. DEFINING THE REPORT Methodology for Determining Materiality The topics deemed relevant for disclosure in the GRI Index were determined by assessing: (1) the potential impact on the Bank’s business and (2) the sustainability impacts from its operations. The business case was determined based on three key categories: (1) potential reputational risks to the organization (based on the reputational heat map), (2) the importance to stakeholders, and (3) the linkages with the Bank’s mission/goals. In addition to understanding the business case and stakeholder concerns, equal weight was given to the sustainability impact of the Bank’s business. After assessing the various The Natural Step framework, which complements the sustainability frameworks available (most are focused only on environment or social GRI, defines three basic "system conditions" that must be met if we want to maintain the essential environmental aspects), sustainability principles as outlined by the Natural Step were considered most services that sustain human society. Further, because appropriate. The Natural Step framework, an internationally recognized tool, considers all human action is the primary cause of the rapid change we three aspects of sustainability. see in the natural environment today, the framework Each criterion above (the three for the business case and the three for the sustainability includes a fourth system condition that focuses on the impact) is given a point and a threshold is set to prioritize GRI aspects to include in the social and economic considerations that drive those report. actions. For the purposes of this exercise, the four principles of The Bank’s materiality approach and resulting reporting was validated and strengthened the Natural Step are applied by asking: (1) Does this through a Stakeholder Panel in May 2014. aspect draw upon material extracted from the earth's crust and lead to accumulation of persistent or toxic RESULTS: WHAT IS MATERIAL? emissions, or is it an extractive industry or destructive processes? (2) Does this aspect undermine the extent of Report Boundary people's ability to meet their needs? A criterion was Boundaries are defined based on the management control of impacts – indirect impacts lay added to ensure economic representation within the tool: within the “operational” boundary while direct impacts fall within the “corporate” boundary. (3) Does this aspect impact the local economy? Impacts external to the organization [“operational boundary”] Indirect impacts occur in member countries as a result of World Bank lending and analytical services and may not be directly controlled by the Bank’s management. Impacts stemming from the World Bank’s work with clients are specified as “operational impacts.” Impacts internal to the organization [“corporate boundary”] “Corporate boundary” refers to the impact from activities over which it has direct control, such as operating World Bank facilities and managing staff members. Operational impact The World Bank’s most pertinent sustainability impacts from financial and technical services to clients can be summarized in the following GRI-related aspects: 1. Economic Performance – Because creating and distributing economic value is part of the mission of eliminating extreme poverty, shareholders and investors care about the sustainable economic performance of the institution. 2. Indirect Economic Impacts – These impacts are an essential aspect of the Bank’s goal of reducing poverty and boosting shared prosperity. 3. Biodiversity – Through lending and grant support to client countries, the World Bank Group is one of the largest international funding sources for biodiversity worldwide. 2 4. Human Rights / Child Labor / Indigenous Rights – The World Bank promotes human rights through its projects, for example, improving poor people’s access to health, education, food, and water; promoting the participation of Indigenous Peoples in decision making, strengthening the accountability and transparency of governments to their citizens; supporting justice reform; and fighting corruption. In addition, civil society actively followed the World Bank’s process of updating its safeguard policies, concluded in fiscal 2016. 5. Local Communities – The World Bank recognizes that CDD approaches and actions are important elements of an effective poverty reduction and sustainable development strategy. 6. Anti-corruption – Critical to the World Bank’s mission to alleviate extreme poverty is a well-functioning public sector that delivers quality public services consistent with citizen preferences and fosters private, market-led growth while managing its fiscal resources in a prudent manner. Opinion leaders in the Bank’s client countries listed anti-corruption as one of their development priorities. 7. Grievance Mechanisms (regarding impacts on people and the environment) – Grievance redress mechanisms (GRMs) are crucial for managing risk in the Bank’s portfolio. By offering a channel for citizens to express concerns, comments, and complaints, GRMs create opportunities t o resolve disputes before they escalate. GRMs can help the Bank and member countries improve project outcomes, prioritize supervision, identify systemic issues, and promote accountability. “Percent of resolved registered grievances” is now a key performance indicator f or the World Bank (see the Corporate Scorecard). 8. Product Portfolio and Audit Aspects from the Financial Sector Supplement – World Bank stakeholders look to the Bank to ensure that policies and procedures are in place to assess and screen environmental and social risks in its lending portfolio. Corporate impact The most material aspects of the Bank’s internal operations include the following: 1. Staff are the World Bank’s greatest asset. They bring a wide range of perspectives to bear on poverty-reduction issues and emerging development challenges, and are critical to the effectiveness of the Bank’s core operational and knowledge services. Staff-related indicators are pulled from the following GRI aspect categories: economic performance, market presence, employment, occupational health and safety, training and education, diversity and equal opportunity, labor practices grievance mechanisms, and nondiscrimination. 2. The Bank recognizes that reducing its own corporate environmental impacts is in line with the institutional mission to reduce poverty, as environmental degradation affects the world’s poor disproportionately. Increasing the efficiency of how the organization runs its business—through facility-level and staff-behavior changes—reduces natural-resource waste and decreases the cost of day-to-day operations. Key aspects related to the Bank’s environmental footprint include: energy, emissions, effluents and waste, and procurement practices (including s upplier environmental assessment, supplier assessment for impacts on society, and supplier human rights assessment). Questions and comments about the GRI Index should be addressed to Corporate Responsibility, crinfo@worldbank.org. 3 CONTENT INDEX STRATEGY AND ANALYSIS 6 ORGANIZATIONAL PROFILE 7 IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES 13 STAKEHOLDER ENGAGEMENT 16 REPORT PROFILE 21 GOVERNANCE 22 ETHICS AND INTEGRITY 23 ECONOMIC – PERFORMANCE 25 ECONOMIC – INDIRECT ECONOMIC IMPACTS 28 ENVIRONMENTAL – BIODIVERSITY 29 ENVIRONMENTAL – GRIEVANCE MECHANISMS 32 SOCIAL – HUMAN RIGHTS INVESTMENT 33 SOCIAL – CHILD LABOR 34 SOCIAL – INDIGENOUS RIGHTS 35 SOCIAL – LOCAL COMMUNITIES 37 SOCIAL – ANTI-CORRUPTION 38 SOCIAL – GRIEVANCE MECHANISMS FOR IMPACTS ON SOCIETY 39 FINANCIAL SECTOR – PRODUCT PORTFOLIO 40 FINANCIAL SECTOR – AUDIT 45 ECONOMIC – MARKET PRESENCE 46 4 ENVIRONMENTAL – MATERIALS 47 ENVIRONMENTAL – ENERGY 49 ENVIRONMENTAL – EMISSIONS 51 ENVIRONMENTAL – EFFLUENTS AND WASTE 55 ENVIRONMENTAL – OVERALL 56 ENVIRONMENTAL – SUPPLIER ENVIRONMENTAL ASSESSMENT 57 SOCIAL – EMPLOYMENT 58 SOCIAL – OCCUPATIONAL HEALTH AND SAFETY 61 SOCIAL – TRAINING AND EDUCATION 62 SOCIAL – DIVERSITY AND EQUAL OPPORTUNITY 65 SOCIAL – LABOR PRACTICES GRIEVANCE MECHANISMS 68 5 Statement from the Refer to the World Bank Annual Report 2016 for a letter from Dr. Jim Yong Kim, President of the World Bank most senior decision Group, and a statement from the World Bank’s Board of Executive Directors. G4-1 maker of the For more information, see the World Bank Annual Report 2016 website: organization http://www.worldbank.org/en/about/annual-report. The work of the World Bank is anchored in its goals: to end extreme poverty—reducing the share of the global population living in extreme poverty to 3 percent by the year 2030—and to promote shared prosperity— increasing the income of the bottom 40 percent of the population. Both of these goals must be met in a sustainable manner. The World Bank Group Strategy, released in 2013, discusses the significant areas in which the World Bank makes environmental, social, and economic impacts, as well as the associated challenges and opportunities along the path toward ending poverty and boosting shared prosperity in a sustainable manner. The strategy combines the strength of the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA)—collectively known as the World Bank—the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA). The strategy places the institutions in a Description of key position to work with the public and private sectors in partnership in order to achieve the twin goals sustainably. G4-2 impacts, risks, and Opportunities and Challenges in the Global Operating Environment opportunities Low interest rates, potential financial market dislocations, weak commodity prices, the slowing of growth in key countries and the risks of wider economic slowdown, and geopolitical tensions and political uncertainties have created a challenging operating environment for the World Bank. These challenges affect the Bank’s client countries as well, many of which are oil or commodity exporters facing fiscal pressures. Several client countries also face reduced trade, capital outflows, and potential turbulence in the event of policy normalization in developed economies. All countries need to sustain reforms for long-term structural growth and employment creation. The impact on the World Bank is felt mainly through increased demand for long-term structural support from a wide range of client countries. The Bank seeks to support all clients’ developmental needs in line with strategic priorities while prudently managing its capital and funding costs. It also continues to monitor operational risks, 6 including the growing threat of data and information security breaches and external events that can affect its business continuity and the physical security of its staff. As the world’s leading multilateral development institution, the World Bank continues to innovate and adapt to meet the needs of individual countries, but also to address the needs of global public goods. Climate change, pandemics, and forced displacement are among the high priorities. To address them and other challenges, the Bank is developing innovative forms of financing in partnership with the public and private sectors. The emergence of new multilateral development institutions creates both opportunities and challenges for creative partnerships, and requires fresh thinking about the Bank’s financial structure. The “Forward Look,” an internal strategic exercise launched earlier this year to deliberate the medium- to long-term future of the institution, is examining demand for the Bank’s services and the ways the institution manages its financial capacity across the World Bank Group to meet these demands, with a focus on optimal leverage and mobilization. For more information on the World Bank Group Strategy, see https://openknowledge.worldbank.org/handle/10986/16095. For more information on progress toward corporate targets, see http://corporatescorecard.worldbank.org/. For more information on poverty reduction, see http://www.worldbank.org/en/topic/poverty. For more information on shared prosperity, see http://www.worldbank.org/en/topic/isp. For more information on sustainability, see http://www.worldbank.org/en/topic/sustainabledevelopment. The World Bank (WB) consists of the International Bank of Reconstruction and Development (IBRD) and the International Development Association (IDA). It is part of the World Bank Group, which includes the Name of the G4-3 International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the organization International Centre for Settlement of Investment Disputes (ICSID). For more information, see http://www.worldbank.org/en/about/what-we-do. The World Bank offers a wide range of solutions to meet development challenges, all designed to support governments in ending extreme poverty by 2030 and promoting shared prosperity: G4-4 Primary brands,  Innovative financing instruments and products for an array of investments in such areas as education, products, and services health, public administration, infrastructure, financial and private sector development, agriculture, and environmental and natural resource management. Some of our projects are co-financed with governments, other multilateral institutions, commercial banks, export credit agencies, and private sector investors. The 7 Bank also provides or facilitates financing through trust fund partnerships with bilateral and multilateral donors. Many partners have asked the Bank to help manage initiatives that address needs across a wide range of sectors and developing regions.  Research, analysis, partnership coordination, and technical assistance services designed to share the best knowledge available to achieve development results underpin World Bank financing. For more information, see http://www.worldbank.org/en/about/what-we-do. Location of G4-5 Washington, DC, United States headquarters Number of countries The World Bank is a global organization. IBRD is owned by 189 member countries and IDA by 173. The Bank G4-6 where the organization operates in 136 countries globally. There are 129 “Country Offices.” operates For a complete list of locations, see www.worldbank.org/contacts. The World Bank is not a bank in the traditional sense, but a unique partnership committed to reducing poverty and supporting development. IBRD is governed by and works with its 189 member countries to achieve equitable and sustainable economic growth in their national economies, and to find solutions to pressing regional and global problems in economic development and other important areas, such as environmental sustainability. IDA works with its 173 member countries to reduce poverty by providing loans (called “credits”) Nature of ownership and grants for programs that boost economic growth, reduce inequalities, and improve people’s living G4-7 conditions. and legal form For a full list of member countries, see http://www.worldbank.org/about/leadership/members. Each of the World Bank organizations operates according to procedures established by its Articles of Agreement. The agreements outline the conditions of membership and the general principles of organization, management, and operations. 8 The World Bank works globally to achieve equitable and sustainable economic growth in member country economies and to find solutions to the pressing regional and global problems in economic development. Its work is distributed throughout the following regions: Africa, East Asia and Pacific, Europe and Central Asia, Latin America and the Caribbean, Middle East and North Africa, and South Asia. World Bank projects cover the following Global Practices: Agriculture; Education; Energy and Extractives; G4-8 Markets served Environment and Natural Resources; Finance and Markets; Governance; Health, Nutrition, and Population; Macroeconomics and Fiscal Management; Poverty; Social Protection and Labor; Social, Urban, Rural, and Resilience; Trade and Competitiveness; Transportation and Information and Communication Technologies; and Water. For more information on the Bank’s work by region and by sector, see www.worldbank.org/unit. In fiscal 2016, the World Bank employed 11,421 staff and 4,757 full-time-equivalent (FTE) short-term consultants and temporaries who worked in Washington, DC, and in 136 countries worldwide. World Bank lending commitments for development support totaled $45.9 billion in fiscal 2016. New lending commitments by IBRD totaled $29.7 billion for 118 operations in fiscal 2016, higher than fiscal 2015’s $23.5 billion. As of June 30, 2016, net commitments in IBRD's active portfolio stood at $109.9 billion. IBRD also offers financial products that allow clients to efficiently fund their development programs and manage risks related to currency, interest rates, commodity prices, and natural disasters. In fiscal 2015, the Bank’s Treasury executed US dollar equivalent (USDeq) 1.1 billion in hedging transactions on behalf of member countries, including USDeq 349 million in interest rate conversions and USDeq 790 million in currency conversions, to assist borrowers in managing interest rate and currency risks over the life of their IBRD loans. G4-9 Scale of organization In addition, the Bank’s Treasury executed swap transactions totaling USDeq 12.5 billion to manage the risks of IBRD’s balance sheet and USDeq 1.5 billion to manage the risks of IDA’s balance sheet. IDA commitments amounted to $16.2 billion for 177 operations in fiscal 2016, including $14.4 billion in credits, $1.3 billion in grants, and $500 million in guarantees. As of June 30, 2016, net commitments in IDA’s active portfolio stood at $97 billion. IDA is financed largely by contributions from partner governments. Additional financing comes from transfers from IBRD’s net income, grants from the International Finance Corporation (IFC), and borrowers’ repayments of earlier IDA credits. The IDA17 Replenishment, which covers fiscal 2015– 17, total resources amount to 37.7 billion in Special Drawing Rights (equivalent to $56.8 billion). For more information, see the World Bank Annual Report 2016, http://www.worldbank.org/en/about/annual- report. 9 The World Bank’s workforce is composed of 11,421 individuals of more than 170 nationalities—about 6,300 on permanent contracts, 5,100 on fixed-term (including special assignments and term consultant/ temporary contracts), and 4,757 FTE short-term consultants and temporaries. The richness of the backgrounds and experience of Bank staff continues to be a hallmark of the products and services that clients seek. There has been a 4.3 percent decrease in the number of full-time employees (those on permanent, fixed-term, special assignments, and extended-term consultant/temporary contracts) since fiscal 2015. The Bank also employed about 4,757 FTE short-term consultants in fiscal 2016, a 12 percent increase over FTE short-term consultants employed in 2015. These self-employed workers make up about 29 percent of the Bank’s workforce. The World Bank has a significant global footprint, with 41 percent of full-time staff now working outside the US. Eighty-four percent of the staff and 2 percent of managers at the director level or above (grade GI+) located in non-US offices were locally hired. For information about the Bank’s career tracks, see www.worldbank.org/jobs. Total number of 2016 2015 2014 employees by Full-time staff Number % of total Number % of total Number % of total G4-10 employment contract, region, broken down by United States 6,736 59% 7,209 60% 7,449 60% gender Female 3,659 32% 3,936 33% 4,102 33% Male 3,077 27% 3,273 27% 3,347 27% Non-US location 4,685 41% 4,724 40% 4,879 40% Female 2,206 19% 2,226 19% 2,272 18% Male 2,479 22% 2,498 21% 2,607 21% WB total full-time staff 11,421 11,933 12,328 Of which Female 5,865 51% 6,162 52% 6,374 52% Of which Male 5,556 49% 5,771 48% 5,954 48% Consultants 4,757 29% 4,262 26% 4,033 25% (FTE globally) 10 At the World Bank Group, the percentage of total employees covered by collective bargaining agreements is zero. However, the Bank Group Staff Association represents and protects the rights and interests of all (that is, 100 percent) of the staff in its work with Human Resources, senior management, Percentage of total line management, and the Executive Directors. More than 10,000 World Bank Group staff are members employees covered by of the Staff Association, and 90 Country Offices have established Country Office Staff Associations. G4-11 collective bargaining Founded in 1972, the Staff Association is not a union and does not engage in collective bargaining. It agreements serves a critical role by representing the rights of all World Bank Group staff, as provided in Staff Rule 10.01. As a development institute, the World Bank does not have a complex corporate supply chain. For those areas where the Bank has a high-value or high-risk (strategic) spend, we work through a category management process that uses market research and industry best practices to manage the supply chain. This allows us to develop strategies and measurable objectives around sustainability that are included and measured through the contract management process. An example of a commodity for which category management is used is the Bank's travel expenditure. Corporate Procurement also works closely with clients to reinforce sustainability options, such as encouraging the inclusion of sustainable building certification criteria in construction and The organization’s renovation projects led by corporate real estate. G4-12 supply chain The materials the Bank uses regularly to carry out its internal business include office supplies and electronics, and we rely heavily on transportation services to ensure we interact with clients on the ground. An elevated expectation from donors and the public to demonstrate effectiveness, value for money, and efficiency in delivery has resulted in Procurement’s taking the lead to manage corporate contracts for goods and services globally at optimal quality and minimal total cost of ownership. For more information, see http://www.worldbank.org/corporateprocurement. Significant changes during the reporting period regarding the G4-13 There were no significant changes in fiscal 2016. organization’s size, structure, ownership, or its supply chain 11 I The World Bank applies the precautionary approach through its safeguard policies. The Bank’s environmental and social safeguard policies are a cornerstone of its support to sustainable poverty Report whether and reduction. The objectives of these policies are to prevent and mitigate harm to people and their environment in how the precautionary the development process. These policies provide guidelines for Bank and borrower staff in the identification, G4-14 approach or principle is preparation, and implementation of programs and projects. The effectiveness and development impact of addressed by the programs and projects supported by the Bank has substantially increased as a result of attention to these organization policies. Safeguard policies have often provided a platform for the participation of stakeholders in project design, along with being an important instrument for building ownership among local populations. For more information, see http://www.worldbank.org/safeguards. The World Bank is committed to helping developing countries end poverty and boost shared prosperity in a Externally developed sustainable manner. As such, it partnered globally to advance the effort to achieve the Millennium Development economic, Goals (MDGs). Now the Bank is a partner of choice for countries seeking to reach many of the Sustainable environmental, and Development Goals (SDGs), adopted in September 2015, particularly in the context of financing, data, and social charters, supporting implementation. The World Bank is also an active member of the United Nations Environmental G4-15 principles, or other Management Group and the Multilateral Financial Institutions Working Group on the Environment. As a UN- initiatives to which the specialized agency, the World Bank also supports the mission of the United Nations and the multilateral organization agreements for which the Bank acts as an implementing agency, including the Global Environment Facility subscribes or which it (GEF), the Multilateral Fund for the Montreal Protocol, and the Convention to Combat Desertification. These endorses facilities have enabled the World Bank to become the largest funder of projects in support of the Convention on Biological Diversity and the Stockholm Convention on Persistent Organic Pollutants. The World Bank Group is not a formal member of industry or business associations, or national or international advocacy organizations, but it is working with a wide range of civil society organizations, foundations, and Memberships of private sector partners on multiple global issues. These partnerships build support for the Bank’s twin goals associations and through our End Poverty campaign and around specific development issues, such as financial inclusion, G4-16 national or education, health, and climate change, in order to operate more effectively. A few examples are: international advocacy  In February 2015, the World Bank Group became a founding member of the Partnership on Religion and organizations Sustainable Development, which brings together bilateral donors and multilateral development partners that seek to more effectively engage with religious communities and organizations to achieve the goals of the 2030 Agenda on Sustainable Development. 12  In fiscal 2016, the World Bank Group spearheaded the creation of the Carbon Pricing Leadership Coalition, bringing together 20 governments and more than 90 international corporations, which was launched at the Paris COP21.  At the World Bank Group annual Foundations Advisory Council meeting, global foundation presidents indicated their support for a newly formed alliance between the Bank Group and UNICEF to advance programmatic interventions and global advocacy efforts for early childhood development. The content and data in this document relate to the International Bank of Reconstruction and Development All entities included in (IBRD) and the International Development Association (IDA), together, the World Bank. The 2016 Global the organization’s Reporting Initiative (GRI) Index does not cover activities of the other three agencies of the World Bank Group: G4-17 consolidated financial the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the statements or International Centre for Settlement of Investment Disputes (ICSID). These agencies publish separate annual equivalent documents reports. Some references to the World Bank Group have been made in this report and are noted. For more about the World Bank and its sibling agencies, see www.worldbank.org/about. The topics deemed relevant for disclosure were identified by assessing annual corporate priorities outlined by the institution’s Boards and President, considering stakeholder input, as well as ascertaining sustainability impacts of carrying out the mission and vision. Stakeholder feedback is gained through three key channels: the Country Opinion Survey Program, civil society feedback, and queries from investor research groups. The process for To determine if a GRI aspect is material for the World Bank to report on, an assessment is carried out based on defining the report the potential impacts on the Bank’s business, and sustainability impacts stemming from its business. The content and the Aspect business-case category evaluates potential reputational risks to the organization, the importance to Boundaries; how the stakeholders (based on the above sources), and the linkages with the Bank’s mission and goals. The G4-18 organization has sustainability impact refers to environmental and social criteria, as outlined by the Natural Step, namely, implemented the material extracted from the earth’s crust; the accumulation of persistent or toxic emissions; extractive industry Reporting Principles or destructive processes; and the extent to which people’s ability to meet their needs are undermined. To for Defining Report ensure representation of sustainable development, an additional criterion was added to give preference for Content impact on the local economy. The Principles for Defining Report Content have been applied to identify, prioritize, and validate the information to be disclosed by considering the World Bank’s activities, impacts, and the substantive expectations and interests of its stakeholders. Each criterion above is given a point and a threshold is set to prioritize GRI aspects to include in the report. 13 Material aspects are listed below: Materiality score Aspect Boundary (maximum score is 6) ECONOMIC 1 ECONOMIC PERFORMANCE 6 Both 2 MARKET PRESENCE 4 Corporate 3 INDIRECT ECONOMIC IMPACTS 6 Operational ENVIRONMENTAL 4 MATERIALS 4 Corporate 5 ENERGY 4 Corporate 6 BIODIVERSITY 6 Operational 7 EMISSIONS 4 Corporate All the material aspects 8 EFFLUENTS AND WASTE 5 Corporate identified in the G4-19 9 OVERALL 4 Corporate process for defining report content 10 SUPPLIER ENVIRONMENTAL ASSESSMENT 4 Corporate 11 ENVIRONMENTAL GRIEVANCE MECHANISMS 5 Operational SOCIAL: LABOR PRACTICES AND DECENT WORK 12 EMPLOYMENT 4 Corporate 13 OCCUPATIONAL HEALTH AND SAFETY 4 Corporate 14 TRAINING AND EDUCATION 4 Corporate 15 DIVERSITY AND EQUAL OPPORTUNITY 4 Corporate 16 LABOR PRACTICES GRIEVANCE MECHANISMS 4 Corporate SOCIAL: HUMAN RIGHTS 17 INVESTMENT 4 Operational 18 NON-DISCRIMINATION 4 Corporate 19 CHILD LABOR 4 Operational 20 INDIGENOUS RIGHTS 4 Operational 14 21 HUMAN RIGHTS GRIEVANCE MECHANISMS 4 Operational SOCIAL: SOCIETY 22 LOCAL COMMUNITIES 4 Operational 23 ANTI-CORRUPTION 4 Operational 24 GRIEVANCE MECHANISMS FOR IMPACTS ON SOCIETY 4 Operational FINANCIAL SECTOR SUPPLEMENT 25 PRODUCT PORTFOLIO 6 Operational 26 AUDIT 4 Operational See table in G4-19. For each material Impacts internal to the organization or “corporate boundary” refers to the impacts from day-to-day operations aspect, the Aspect G4-20 on buildings and staff members. GRI indicators for environment apply primarily to performance of Washington, Boundary within the DC, facilities (which house 60 percent of World Bank staff), with data from 129 country offices noted when organization relevant. Indicators related to labor practices apply to global staff policies and practices. See table in G4-19. The World Bank, a development institution, works closely with member country government counterparts and For each material stakeholders to achieve lasting results. Aspect Boundaries outside the organization involve indirect impacts aspect, the Aspect G4-21 that occur in member countries as a result of the Bank’s lending and analytical services. Boundary outside the organization To satisfy GRI reporting specifications, the World Bank references its entire portfolio of activities, but does not include the performance of individual investments in its portfolio. For descriptions of individual investments, see http://www.worldbank.org/projects. There are minor changes in LA9: we have restated the data by days instead of hours. LA16 has been restated Restatements of because the fiscal 2015 numbers were incorrect. G4-22 information provided in In EC1, certain reclassifications of fiscal 2015’s financial information have been made to conform to the current previous reports year’s presentation. Changes were made from the previous reporting period in the Scope and Aspect Boundaries. In fiscal 2015, Significant changes the following GRI aspects—“materials”—were not deemed material based on the methodology. This was from previous reporting G4-23 mainly because stakeholders were not asking about Corporate Procurement practices, and thus these aspects periods in the Scope ranked low on the materiality scale. The Bank continues to consider its procurement practices an essential part and Aspect Boundaries of its footprint impact, and thus has included information in the 2016 GRI Index. 15 As a global citizen and a global employer, the World Bank consults and collaborates with thousands of stakeholders throughout the world. The Bank groups the stakeholders into two main categories: internal and Stakeholder groups external. G4-24 engaged by the Internal stakeholders include Bank owners (shareholder governments) and Bank employees (staff). organization External stakeholders include civil society; faith-based organizations; academic; foundations; parliamentarians; the private sector (including socially responsible investors); partnering agencies; and international, national, and local media as well as citizens impacted by projects and beneficiaries. In the context of World Bank-supported activities, stakeholders are considered those who are affected, whether positively or negatively, by a proposed intervention. Who the stakeholders are for any given project or issue The basis for depends on the situation. Getting the necessary stakeholders involved is essential, but it is not always easy, identification and because our stakeholders range from donor and client governments to the poorest and most marginalized G4-25 selection of communities. stakeholders with Partners are another essential stakeholder group. The World Bank also works with stakeholders who share the whom to engage commitment to advance the Bank’s twin goals, evidenced by their participation in our Annual and Spring Meeting dialogues, advocacy of our critical causes, and involvement in our issue-based campaigns. The organization’s 1. Member Each fall and spring, the Boards of Governors of the World Bank Group and approach to governments International Monetary Fund (IMF) hold Annual and Spring Meetings to discuss stakeholder a range of issues related to poverty reduction, international economic engagement, including development, and finance. The Annual Meetings provide a forum for frequency of international cooperation and enable the Bank Group and the IMF to better engagement by type serve their member countries. In addition to these meetings, the Development and by stakeholder Committee convenes to advise the Boards of Governors on issues of global G4-26 group, and an concern, including the world economic outlook, poverty eradication, economic indication of whether development, and aid effectiveness. The Development Committee any of the engagement Communique is used as part of the materiality exercise for the GRI Index. was undertaken For more information about member governments, see specifically as part of http://www.worldbank.org/en/about/leadership/members. the report preparation process 16 2. Employees Staff are engaged in institutional campaigns to garner support for the twin goals. In fiscal 2016, the End Poverty campaign reached out to staff through intranet communications, internal events, social media messages, and promotional materials. A series of internally broadcast town halls with leadership throughout the course of fiscal 2016 allowed staff to engage in dialogue with management on issues and concerns related to human resource policy, strategic directions, the operational model, and more. Annual staff surveys are used to engage employees by giving them the opportunity to contribute their opinions. In May 2016, a World Bank Group Employee Engagement Survey was conducted to measure staff's views on a variety of key areas—from leadership to career development to the work environment. Staff are also engaged through the Community Connections Campaign. Each year, the CCC raises millions of dollars in staff donations and World Bank Group 100 percent matching to support nonprofit organizations that work domestically and globally to combat poverty and uplift communities. 3. Civil Society (CSO) The World Bank engages CSOs regularly at the global, regional, and local level. We share information, solicit input on policy reform, consult with them on our strategy, collaborate with them on Bank-financed projects, and forge partnerships to further our dual goals. Consultations with civil society on policy reforms have become an important component of our engagement with CSOs. In the most extensive CSO communications effort in World Bank history, the review of the environmental and social safeguards, CSOs from 93 countries were consulted between August 2015 and March 2016. The Bank’s internal Civil Society Team hosts a monthly update call with more than 500 CSOs invited, and distributes a monthly CSO eNewsletter, which reaches more than 7,000 subscribers. In fiscal 2016, the team kicked off an enhanced engagement approach with civil society in collaboration with the Africa region, which included a one-day workshop of policy dialogue, training, and a site visit to a World Bank-financed project. Twice a year, during the Annual and Spring Meetings, the World Bank Group hosts the Civil Society Policy Forum that convenes more than 600 civil society 17 representatives from around the world to deliberate on priority development issues with a broad group of stakeholders. Forty-plus dialogue sessions are held, organized primarily by CSOs in concert with the Bank. The World Bank also interacts with CSOs on reports such as the annual World Development Report (WDR) and evaluations conducted by the Independent Evaluation Group (IEG). In addition, it the Bank regularly seeks input and feedback from CSOs on diverse topics, from the new gender strategy to disclosure of information on public–private partnerships, from grievance redress mechanisms to IDA. At the country level, the World Bank consults with a broad spectrum of CSOs on the System Country Diagnostic, the Country Partnership Framework, sector studies, and individual Bank-funded development projects. Often these interactions involve multiple stakeholders and CSOs, governments, businesses, and donor agencies. With the introduction of the Citizens Engagement Strategic Framework, the Bank has committed to 100 percent beneficiary feedback by 2018, for which the views of civil society are solicited to inform impact assessments and future development planning. The framework seeks to mainstream citizen engagement in World Bank-supported policies, programs, projects, and advisory services and analytics to improve their development results and within the scope of these operations, contribute to building sustainable national systems for citizen engagement with governments and the private sector. As of April 2016, 86 percent of World Bank projects included beneficiary feedback indicators and 89 percent included citizen engagement. To further support development results and reach the Bank goals of ending extreme poverty and fostering shared prosperity, the Global Partnership for Social Accountability (GPSA) encourages civil society and governments to work together to solve critical governance challenges in developing countries. To achieve this objective, the GPSA provides strategic and sustained support to CSOs’ social accountability initiatives. For more information on the Bank’s engagement with civil society, see http://www.worldbank.org/civilsociety, and for more information on the GPSA, see http://www.thegpsa.org/sa. 18 4. Opinion Leaders The Country Opinion Survey (COS) Program systematically assesses and tracks the views of external opinion leaders across client countries. The World Bank Group has collected thousands of opinions in this mandated program since its inception, in fiscal 2012. Each client country is surveyed once every three years; each year, about 40 to 45 countries are included. In this manner, over a three-year cycle, the COS Program obtains feedback from stakeholders in nearly all client countries. No other multilateral organization engages in a feedback mechanism of such breadth and depth. For more information, see http://countrysurveys.worldbank.org/. 5. Environmental, Formal and informal engagements are used to work better with the ESG social, governance investor community. (ESG) Investor Each ESG research firm requests updates from the World Bank based on a Community proprietary list of questions. These questions are used as part of the materiality exercise for the GRI Index. The Bank provides responses to the requests regularly. Ad hoc questions about the environmental, social, and governance issues noted under ESG research firms, but prompted by news reports, are addressed immediately. In addition to providing links to relevant websites, such as the pertinent consultations website, the inquiring investors are connected to key staff to address concerns about the specific topic. 6. Partnering agencies The World Bank works with other international institutions and donors to improve the coordination of aid policies and practices in countries at the regional and global levels. Consultation methods and formats vary depending on the scope of the Bank’s proposed engagement. For more information, see http://www.worldbank.org/partners. 7. Local, national, and Regularly, the World Bank approaches media to cover its major report international media launches, corporate priority campaigns, and messages, including events involving the President. At key opportunities, like the Annual and Spring Meetings, the Bank proactively drives the primary messages of the institution, such as including its commitment to the twin goals of ending extreme poverty by 2030 and boosting shared prosperity. The Bank approaches traditional media outlets (via interviews and op-eds) and actively uses social media to 19 promote issues that need to be addressed to achieve those goals, such as major reports on climate change. It also responds to all media queries and interview requests to help the media better understand the Bank and what it does. In addition, the Bank’s reputation is managed by working with reporters to clarify Bank priorities and activities, providing them with institution views so they can write balanced and well-represented articles. Press releases, speeches, transcripts, and feature stories from the Bank can be found on the World Bank’s website homepage, http://www.worldbank.org, and on the news site, http://worldbank.org/en/news. The key priority in fiscal year 2016 was the continued promotion and implementation of the World Bank goals. This included outreach to key audiences through mechanisms such as press releases, op-eds, report launches, and other stakeholder engagement about activities to achieve these goals. Significant communications efforts were also directed toward the Bank’s enhanced efforts in combating specific issues, such as the global issues of forced displacement, pandemics, and climate change, while our issuance and promotion of our biannual global economic prospects also garnered strong media coverage. Because stakeholder groups raise concerns in various venues and formats, these concerns cannot be summarized here. For concerns raised during consultations, see http://consultations.worldbank.org. For concerns raised in particular projects, see individual project documents, http://www.worldbank.org/projects. Key topics and 1. Member governments: The World Bank’s Board of Executive Directors created in 1993 the Inspection concerns that have Panel, an independent complaints mechanism, to ensure that people had access to an independent been raised through body to express their concerns and seek recourse. Information is released on a retrospective basis. For stakeholder G4-27 concerns raised in 2015, see the most recent Inspection Panel Annual Report, engagement, and how http://www.worldbank.org/inspectionpanel the organization has 2. Employees: Staff concerns are not disclosed because of the institution’s information policy, which responded to those key designates staff information as confidential. topics and concerns 3. Civil society: For concerns raised by civil society, see http://www.worldbank.org/civilsociety 4. Opinion leaders and partnering agencies: Key priorities that continue to emerge from the Country Opinion Survey (COS) Program include governance, education, jobs, and rural and agriculture 20 development. Survey data demonstrate that the Bank Group is viewed as a strong, long-term partner and very effective at collaborating with government and donors. Views are less positive about how the Bank Group collaborates with groups outside of government, including the private sector and civil society. Within the institution, the COS data are used to inform the institution’s work with countries as well as the work of those tasked with bringing about change in the way the Bank Group achieves its goals. The COS data are shared with the Board and incorporated into the Corporate Scorecard on a regular basis. For more information, see http://countrysurveys.worldbank.org/. 5. Investor community: ESG research firms request information on environmental issues (such as overall project lending strategy, impacts made, measurement of greenhouse gas (GHG) from projects, corporate responsibility); social topics (including internal human resources data, human rights policies as they relate to our work with client countries, environmental and social safeguards, specific project controversies as they impact IBRD-financed and IDA-financed countries); and governance topics (World Bank Board of Executive Directors information, number of women in top management, checks and balances between board members and project auditors and management; transparency of salaries and benefits for top management). To ensure transparency on these issues, the World Bank uses these questionnaires as part of the materiality exercise when developing the GRI Index and Sustainability Report. Reporting period for G4-28 The 2016 GRI Index cover fiscal 2016, July 1, 2015, through June 30, 2016. information provided Date of most recent G4-29 The previous Sustainability Review and GRI Index were made available in October 2015. previous report The World Bank updates its GRI Index annually and going forward the World Bank Sustainability Review will be G4-30 Reporting cycle published biennially. Updates will be provided in the World Bank Annual Report. The contact point for questions regarding G4-31 For more information, email the Corporate Responsibility Program: crinfo@worldbank.org. the report or its contents The ‘in accordance’ G4-32 The 2016 GRI Index has been reported in accordance with the GRI guidelines: “core option.” option 21 Policy and current practice with regard to The World Bank has not set a policy on gaining external assurance for its GRI Index and Sustainability Review. G4-33 seeking external In practice, limited assurance is carried out for the Bank’s corporate carbon emissions data biennially. The assurance for the carbon inventory is also assured every year by the IFC Annual Report auditors. report The World Bank is a development institution for which its 189 member countries are shareholders. The Bank works with members to achieve equitable and sustainable economic growth in their national economies and find solutions to pressing regional and global problems in economic development and critical areas such as environmental sustainability. It pursues its overriding goals to overcome poverty and improve standards of living primarily by providing loans, risk-management products, and expertise on development-related disciplines and by coordinating responses to regional and global challenges. Member countries govern the The governance Bank through the Boards of Governors and the Board of Executive Directors (EDs). structure of the The Boards of Governors consist of one governor and one alternate governor appointed by each member organization, including country. The office is usually held by the country’s minister of finance, governor of its central bank, or a senior committees of the official of similar rank. The governors and alternates serve for terms of five years and can be reappointed. The highest governance Honorable Mauricio Cárdenas, Minister of Finance and Public Credit, Colombia, will be the Chairman for the G4-34 body; any committees 2016 Annual Meetings. The governors delegate specific duties to the 25 EDs, who sit as a resident Board of responsible for Directors in Washington, DC. The five largest shareholders appoint an executive director, while other member decision making on countries are represented by elected executive directors. economic, environmental, and Together, the Boards of Governors and the EDs make all major decisions for the organization, including policy, social impacts financial, and membership issues. In addition to representing their own countries and others they are elected to represent, EDs serve on one or more of five standing committees: Audit Committee, Budget Committee, Committee on Development Effectiveness (CODE), Human Resources Committee, and Committee on Governance and Executive Directors’ Administrative Matters (COGAM). The committees help the Board execute its oversight responsibilities through in-depth examinations of policies and practices, overseeing and making decisions about the Bank’s policies and procedures, financial condition, risk-management and assessment processes, adequacy of governance 22 and controls, and effectiveness of development and poverty-reduction activities. In addition, the Ethics Committee provides guidance on matters covered by the Code of Conduct for Board officials. These committees function independently of all World Bank Group executive officers. For more information, see http://www.worldbank.org/en/about/leadership. The executive-level The World Bank Group integrates the principles of sustainable environmental and social development into its position or positions work with clients across all sectors and regions. This is done through the Office of the Vice President for with responsibility for Sustainable Development, who reports through the Office of the Managing Director and Chief Operations economic, G4-36 Officer, in turn to the President of the World Bank Group. environmental, and For more information about the current Vice President, Sustainable Development, see social topics, reporting http://www.worldbank.org/en/about/people/laura-tuck and order to the highest http://www.worldbank.org/en/topic/sustainabledevelopment. governance body The World Bank Group core values are personal honesty, integrity, and commitment; working together in teams with openness and trust; empowering others and respecting differences; encouraging risk-taking and responsibility; and enjoying both work and family. See the Code of Conduct. There is a mandatory e-learning training on the Code of Conduct for all new staff, including consultants with contracts of more than 30 days. A summary of the Code of Conduct is available in nine languages. There is a The organization’s separate Code of Conduct for Board officials. Business partners are informed of ethics expectations through a values, principles, separate document. standards, and norms G4-56 In addition to the training for new staff, the institution offers a number of ethics training courses. The Office of of behavior, such as Ethics and Business Conduct (EBC) continuously expands its offering of training for staff in headquarters and codes of conduct and country offices on Bank Group values, expected business conduct, recourses available against misconduct and codes of ethics retaliation, and the prevention of conflicts of interest. Adherence to high ethical standards is specified in contracts with employees, Board officials, and business partners. Section 1(c) of the Code for Board Officials requires them to sign the code document upon assuming duty and deposit it with the Ethics Committee of the Board. Staff members are required to uphold World Bank Group Staff Rules as a condition of employment. 23 The head of EBC is a Bank Group Vice President. The leadership of this function by a Vice President reflects the importance attached to EBC’s mandate across its four key areas of responsibility: (1) responding to and investigating allegations of staff misconduct; (2) providing training, outreach, and communications on ethics issues; (3) providing advice on conflicts of interest and implementing the Bank Group’s financial disclosure programs; and (4) tracking trends and providing insights and periodic reports to senior management. For more information on the World Bank’s Code of Conduct and EBC functions, see http://worldbank.org/ethics. The Office of Ethics and Business Conduct (EBC) enables staff members (both past and present) to seek ethics-related advice. Employees, business partners, and other stakeholders are informed of EBC’s advisory services through a range of communications and training programs. The Ethics Helpline is an email service account (ethics_helpline@worldbank.org) accessible to staff and advertised on the external website. Staff members also can seek advice directly from EBC staff during office hours or arrange to speak with advisory team members at a convenient time. Most advisory services are provided in English, which is the working language of the organization. Staff members can also contact the Ethics Helpline by phone (800-261-7497) 24/7. This line is administered in multiple languages by an outside Internal and external vendor. mechanisms for seeking advice on Advisory requests are treated with the highest possible level of confidentiality given the requirements of the ethical and lawful case. Requests for advice can be made anonymously. G4-57 behavior, and matters Over the past five years, EBC received between 750 and 850 requests for advice per year. In more than 80 related to percent of the cases, answers were provided within two business days. The most frequently received queries organizational integrity, involved questions concerning a staff member’s outside activities, pre- or post-Bank Group employment, and such as helplines or couples or family relationships. EBC does not currently administer a satisfaction survey to individuals who advice lines contact the office for advice. In addition, the Bank’s Integrity Vice Presidency works to improve compliance with corruption-related policies. The unit trains staff to detect and deter fraud and corruption, and investigates allegations in activities conducted or financed by the Bank Group—as well as allegations of significant fraud and corruption involving staff. The EBC and Integrity Vice Presidencies cooperate to ensure a consistency of approach. Details are outlined for staff in the World Bank Group Code of Conduct. See: http://worldbank.org/ethics. 24 Staff members have a range of internal justice mechanisms for reporting concerns about unethical behavior. In addition to the investigatory units mentioned above, staff members consult Ombuds Services, Respectful Workplace Advisors, Mediation Services, Peer Review Services, and line management. Internal and external EBC is responsible for the mechanisms for reporting concerns within the Bank Group. The Ethics Helpline is mechanisms for administered by an outside vendor, and is available 24/7 in multiple languages. The Bank Group regularly reporting concerns communicates about reporting mechanisms to employees, partners, and stakeholders. Examples of such about unethical or communications include a newsletter emailed to all staff, posters featuring reporting channels sent to all Bank unlawful behavior, and Group offices, and brochures sent to country offices and distributed by Internal Justice Services staff. Training, matters related to which details the available reporting mechanisms, is provided to employees when they join the World Bank G4-58 organizational integrity, Group, with periodic refreshers offered. All concerns are treated with the highest possible level of confidentiality such as escalation given the requirements of the case. The system also allows for reporting concerns anonymously. through line The Bank Group has a non-retaliation policy incorporated into its Staff Rules: “Retaliation by a staff member management, against any person who provides information regarding suspected misconduct, who cooperates or provides whistleblowing information in connection with a preliminary inquiry or investigation, or who uses the Conflict Resolution System mechanisms, or is expressly prohibited and shall result in proceedings under this Rule. This prohibition against retaliation hotlines extends also to retaliation against any person because such person was believed to be about to report misconduct or believed to have reported misconduct, even if such belief is mistaken.” The World Bank is a vital source of financial and technical assistance to developing countries around the world. The World Bank’s lending is aimed at two different groups of countries: IBRD strives to reduce poverty in middle -income and credit-worthy poorer countries through loans, guarantees, risk-management products, and analytical and advisory services. Its companion organization, IDA, offers below-market-rate financing to the world’s 78 poorest countries, primarily through credits and grants. IBRD funds itself through high-quality bonds offered in the international capital markets. IDA’s funding is predominantly from contributions by donor countries, G4-DMA including OECD countries and, increasingly, middle-income nations. The World Bank Corporate Scorecard is designed to provide a snapshot of the Bank’s overall performance in the context of development results. It facilitates strategic dialogue between management and the Board on progress made and areas that need attention. Aspects of financial strength are measured under the Scorecard’s Tier III, which reviews the overall success of Bank activities in achieving development goals and examines the effectiveness of Bank operations, including the performance of its lending portfolio. 25 In fiscal 2016, IBRD revenues totaled $2.71 billion ($2.68 billion and $2.62 billion for 2015 and 2014, respectively), and IDA’s revenues were $3.53 billion ($3.11 billion and $3.16 billion for 2015 and 2014, respectively). Sources of revenues include net revenue from loans and credits, revenue from IBRD’s Equity Management, net revenue from investments trading, transfers from affiliated organizations, and other sources from Direct economic value externally funded activities. G4-EC1 generated and Fiscal 2016 IBRD administrative expenses were $2.1 billion ($2.0 billion and $1.91 billion Full distributed for 2015 and 2014, respectively), and IDA’s administrative and development grant expenses were $2.98 billion ($4.2 billion and $4.65 billion for 2015 and 2014, respectively). The Bank has been able to deliver a strong lending program while containing its administrative expenses. To better understand the business models of each entity, please see the IBRD Management’s Discussion & Analysis (MD&A) and the IDA MD&A. Climate change is a threat to the core mission of the World Bank. Current weather extremes already affect millions of people, putting food and water security at risk and threatening agricultural supply chains and many coastal cities. Without further action to reduce extreme poverty, provide access to basic services, and strengthen resilience, climate impacts could push an additional 100 million people into poverty by 2030. Financial implications The 2015 COP21 set a milestone toward combatting climate change. The World Bank and other risks and Climate Change Action Plan, developed right after COP21, aims to accelerate efforts to opportunities for the tackle climate change and help developing countries deliver on their national climate G4-EC2 Full organization’s plans submitted for COP21. The Bank’s plan focuses on helping countries shape activities due to national policies and leverage private-sector investment. In this context, the Bank aims to climate change increase its climate-related lending by a third to 28 percent by 2020. In addition to its own financing, the World Bank also intends to mobilize $25 billion in commercial financing for clean energy over the next few years. Risks and opportunities and the subsequent financial implications of the Bank’s activities due to climate change are reported through the Climate Disclosure Project. For the complete report, see www.cdp.net. 26 The World Bank offers its staff defined benefit plans. Participation in the pension plan is mandatory. The Staff Retirement Plan (pension) and Retired Staff Benefits Plan (medical) assets are held in separate irrevocable trusts, and the Post Employment Benefit Plan assets (other benefits) are included in IBRD’s investment portfolio. The assets of the plans are used for the exclusive benefit of the participants and their beneficiaries and represent the accumulated contributions paid into the plans net of benefit payments, together with the accumulated value of investment earnings, net of related expenses. The employer contribution to the pension plan is based on a specified funding Coverage of the methodology and varies from year to year in response to changes in the plan’s financial organization’s defined G4-EC3 position. Participants of the gross plan (closed plan) contribute 7 percent of the Full benefit plan pensionable gross salary. Participants of the net plan (open to new entrants) contribute 5 obligations percent of their net salary to the mandatory cash balance component. Participants of the net plan may choose to contribute up to an additional 6 percent of their net salary to the cash balance. As of June 30, 2016, the value of accrued pension liabilities for IBRD/IDA was $18 billion, supported by assets of $15.2 billion held in a trust. The funded ratio (assets over liabilities) was 84 percent. Assets are evaluated at their fair value, and liabilities are measured as the Projected Benefit Obligation, discounted with high-quality corporate bonds rates. The two amounts are estimated in full compliance with the US accounting standards (ASC 715). World Bank member countries, or shareholders, are represented by a Board of Governors, who are the ultimate policymakers at the World Bank. Generally, the governors are member countries’ ministers of finance or ministers of development. They meet once a year at the Annual Meetings of the Boards of Governors of the World Bank Financial assistance Group and the International Monetary Fund. The governors delegate specific duties to 25 G4-EC4 received from executive directors, who work onsite at the Bank. The five largest shareholders appoint Partial government an executive director, while other member countries are represented by elected executive directors. Member contributions: IBRD has a diversified shareholder base that supports IBRD’s financial strength through both paid-in and callable capital. Callable capital may be called only when required to meet obligations of IBRD for funds borrowed or on loans 27 guaranteed by it. For capital contributed by a member country, see Financial Statements, http://www.worldbank.org/financialresults. Trust funds: Generally accounted for separately from the Bank’s own resources, trust funds are financial and administrative arrangements with external donors that lead to grant funding of high-priority development needs, such as technical assistance, advisory services, debt relief, post-conflict transition, and co-financing. Taxes: As an organization established by international treaty, the World Bank receives tax-exempt status from its member countries. The World Bank is a vital source of financial and technical assistance for developing countries around the world. It is not a bank in the ordinary sense, but a unique partnership formed to reduce poverty and support development. The Bank supports a wide array of investments in such areas as education, health, public administration, infrastructure, financial and private sector development, agriculture, and environmental and natural resource management. The Bank has established ambitious but achievable goals to galvanize international and national efforts: to end extreme poverty— G4-DMA reducing the share of the global population living in extreme poverty to 3 percent by the year 2030—and to promote shared prosperity— increasing the income of the bottom 40 percent of the population. Both of these goals must be met in a sustainable manner. The World Bank Corporate Scorecard measures the progress on these goals. It reports key sectoral and multi-sectoral results achieved by clients with the support of the World Bank Group. Infrastructure development—in the energy, water, transport, and information and communication technology sectors—is critical to creating growth opportunities and to reducing poverty. The World Bank aims to help governments make informed decisions Development and about improving access to and the quality of infrastructure services, which can include, impact of infrastructure where appropriate, using public–private partnerships. G4-EC7 Full investments and services supported For more information about the infrastructure projects financed by the World Bank, see pages 14-17 of the World Bank Annual Report 2016: http://www.worldbank.org/en/about/annual-report. 28 Equitable policies and institutions help every country’s poorest people to benefit from economic growth. The World Bank supports policymakers to reach well-informed, evidence-based decisions that promote equity and inclusion, sustainable macroeconomics, public sector transparency and efficiency, productivity, and financial sector deepening and stability—all foundational elements for reducing poverty and promoting inclusive growth. The Bank pursues its principal goals by providing loans, Significant indirect expertise on development-related disciplines, risk management products, and by economic impacts, coordinating responses to regional and global challenges. The Bank’s financial resources G4-EC8 are significant, but equally valuable is its knowledge. The Bank’s scale, range, and Full including the extent of impacts diversity lie at the core of its specialized role as a key contributor to global development knowledge. For a breakdown of the fiscal 2016 portfolio by theme, sector, and region, see "The Roles and Resources of the World Bank," on pages 56–61 of the World Bank Annual Report 2016: http://www.worldbank.org/en/about/annual-report. See the Corporate Scorecard for the Bank’s overall performance in the context of development results. Countries rely on healthy ecosystems and biodiversity to survive, grow enough food, and make a living. But the world is experiencing a dramatic loss of biodiversity, which negatively affects livelihoods, clean water supply, food security, and resilience to environmental disasters. This situation particularly affects the 78 percent of the world’s poor who live in rural areas and often rely on ecosystems to support themselves. The World Bank works with countries around the world to conserve and sustainably use biodiversity. With a portfolio of 241 projects worth $1.24 billion in the 10 years from fiscal 2006–2016, the World Bank is one of the largest international financiers of biodiversity G4-DMA conservation and sustainable use. The World Bank helps countries put policies in place so that biodiversity is valued as a key driver of sustainable development. It works with clients to improve their administration to better conserve and sustainably use their biodiversity. The Bank invests in aspects of biodiversity services—such as watershed management and protected areas—that help countries achieve their development goals. The World Bank also helps countries find ways to generate revenues from biodiversity, such as tourism income, while fighting wildlife crime, as well. Biodiversity projects range from establishing and strengthening terrestrial, freshwater, and marine protected areas to eradicating invasive alien species, to improving biodiversity management planning in the production landscape. 29 Wherever feasible, Bank-financed projects are sited on already converted lands in order to preserve critical natural habitats. The World Bank does not support projects that involve the significant conversion or degradation of critical natural habitats unless there are no feasible alternatives for the project and its siting, and comprehensive analysis demonstrates that overall benefits from the project substantially outweigh the environmental costs. If the environmental assessment indicates that a project would significantly convert or degrade natural habitats, the project takes mitigation measures, including minimizing habitat loss, and establishing and maintaining an ecologically similar protected area. In deciding whether to support a project with potential adverse impacts on a natural habitat, the Bank takes into account the borrower's ability to implement the appropriate conservation and mitigation measures. A 2013 review of the Bank’s portfolio in the Forest Sector by the Independent Evaluation Group (IEG) found that protected area projects— which constitute just under half (100 projects by count) of the total forest portfolio—have largely been successful in setting up critical conservation areas and building their management capacity, but that the poverty impact of the Bank’s forest interventions could be strengthened. In response, the World Bank Group developed a Forest Action Plan for fiscal 2016–2020 that aims to boost the potential of forests to lift people out of poverty and generate lasting social, economic, and environmental returns in developing countries. It identifies two focus areas for our engagement for the next five years: sustainable forest management and forest-smart interventions in other sectors. These areas are supported by three themes to strengthen the foundations for positive forest outcomes: climate change and resilience, rights and participation, and institutions and governance. The World Bank’s work toward protecting biodiversity includes establishing and expanding protected area systems. For example, the Amazon Region Protected Areas program (ARPA) in Brazil has helped protect around 60 million hectares of rainforest. A study published by the US National Academy of Sciences credits ARPA with a 37 percent decrease in deforestation between 2004 and 2009. The Bank is also applying the lessons learned from this experience into a new project in Brazil that aims to triple the marine area under protection while directly benefiting 800,000 people. Similar to the Habitats protected or ARPA program, the integrated protected areas component of the newly established G4-EN13 Full restored Amazon Sustainable Landscapes program aims to increase the area of globally significant forest ecosystems in new protected areas while also addressing the needs of forest-dwelling communities. In addition, the Coastal & Biodiversity Management project in Guinea-Bissau helped establish the autonomous Institute for Biodiversity and Protected Areas to manage the country’s network of protected areas and endangered species. The project helped conserve 480,000 hectares of its coastal zone (13 percent of the territory), together with local communities. These protected areas are considered national assets and are intended to form the backbone of a future tourism industry. 30 The Bank supports the protection, maintenance, and rehabilitation of natural habitats and their functions in its advisory work, project financing, and policy dialogue. From fiscal 2006–2016, 92 projects supported habitat protected or restored areas, with a geographic emphasis on the Latin America and the Caribbean region (LCR) and Africa (33 projects in LCR and 31 in Africa), 17 in East Asia and the Pacific, six in Eastern and Central Asia, two in Middle East and North Africa, and three in South Asia. Habitat restoration was supported through five projects (two in Africa, one in East and Central Asia, and two in LCR). Global and regional partnerships play an important role in promoting biodiversity conservation: -- The Bank is the lead agency of the Global Partnership on Wildlife Conservation and Crime Prevention for Sustainable Development, a $90 million grant program by the Global Environment Facility (GEF), launched in 2015. The program focuses on designing and implementing national strategies to help countries secure their wildlife resources, habitats, and the benefits they derive from them while also reducing poaching and illegal wildlife trafficking. --The International Consortium on Combating Wildlife Crime (ICCWC), launched in 2010, brings together Interpol, the Convention on International Trade in Endangered Species of Wild Fauna and Flora Secretariat, World Customs Organization, the UN Office on Drugs and Crime, and the World Bank to promote effective law enforcement nationally and internationally in order to prevent forest and wildlife crime. ICCWC also supports sustainable development and equitable benefit-sharing of the proceeds from sustainable natural resource management. -- The Amazon Sustainable Landscapes Program is a five-year regional program spanning Brazil, Colombia, and Peru that was designed to conserve the Amazon Forest through an integrated approach that incorporates sustainable land use, protected areas management, and the restoration of vegetation cover. The total amount of investment is estimated at over $600 million, including GEF grant, donor, and counterpart funds. The program was approved in 2015 by the GEF Council, and is the collaborative effort of the World Bank, as the lead agency, the World Wildlife Fund, and the United Nations Development Programme. For more information on the Bank’s work on biodiversity, see http://www.worldbank.org/en/topic/environment/brief/biodiversity. 31 The World Bank is committed to its goals of eliminating extreme poverty and boosting shared prosperity in a sustainable manner. Poverty, as the Bank recognizes it, encompasses lack of opportunities (including capabilities), lack of voice and representation, and vulnerability to shocks. Grievance redress mechanisms (GRMs) are crucial for managing risk in the Bank ’s portfolio. GRMs create opportunities to resolve disputes before they escalate by offering a channel for citizens to express concerns, comments, and complaints. Beyond their benefits to citizens, GRMs can help the Bank and clients improve project outcomes, prioritize supervision, identify systemic issues, and promote accountability. The Bank promotes human rights principles through the projects it supports, for example, improving poor people’s access to health services, education, food, and water. Moreover, the Bank promotes the participation of project-affected people, including Indigenous Peoples, in decision making and participation; helps strengthen the accountability and transparency of governments to their citizens; and supports justice reform and fighting corruption. Although development projects are intended to bring about positive change, their implementation involves risks, and people or the environment can be adversely impacted. The Bank has policies to help avoid such unintended outcomes, but some problems may remain unrecognized or unaddressed. In such circumstances, citizens should speak out to G4-DMA bring attention to these problems. This can be done either through project-level GRMs or the Bank’s corporate-level Grievance Redress Service (GRS), which was established in January 2015 to field complaints that could not be addressed at the country level. This mechanism complements borrowers’ project-level grievance mechanism (where they exist) and the Board’s Inspection Panel. The Environmental and Social Standards Advisory Team leads the Bank’s corporate work on grievance redress. GRS provides a consistent and systematic approach to the handling of complaints and conflict resolution across all IBRD/IDA operations. The work involves a number of the Bank’s major initiatives, in particular, work on risk, results, and beneficiary feedback. The Global Review of Grievance Redress Mechanisms found that half of all Bank projects featured a GRM in project-design documents. However, new research shows implementation challenges. A major focus for the Bank in the future will be to further integrate grievance redress in all projects, increase support for implementation, and enhance collection and monitoring of grievances received and resolved across the project’s portfolio. For more information on GRMs, see http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service. Number of grievances about environmental impacts filed, Data for this indicator are not available. Systems are being established to capture the G4-EN34 addressed, and Partial data in a more comprehensive manner. resolved through formal grievance mechanisms 32 The World Bank significantly promotes human rights principles in a range of areas, including: (1) improving poor people’s access to health services, education, food, and water; (2) promoting the participation of project-affected communities, including Indigenous Peoples, in decision making; (3) strengthening the accountability and transparency of governments to their citizens; and (4) supporting justice reform and fighting corruption. Thus, the Bank’s role is facilitative, helping its members realize their human rights obligations. The Bank screens each project proposed for financing to determine the appropriate extent and type of environmental and social analysis to be undertaken during project preparation, and whether the project may involve the application of additional safeguard policies. Policies that may be triggered include: OP/BP 4.01, Environmental Assessment; OP/BP 4.04, Natural Habitats; OP 4.09, Pest Management; OP/BP 4.10, Indigenous Peoples; OP/BP 4.11, Physical Cultural Resources; OP/BP 4.12, Involuntary Resettlement; OP 4.36, Forests; and OP/BP 4.37, Safety of Dams. In addition, the Bank recognizes that gender issues are an important dimension of its poverty reduction, economic growth, human wellbeing, and development effectiveness agenda. OP/BP 4.20 establishes a country-level, strategic approach to mainstreaming gender issues in Bank work. For more information on gender issues, see: http://www.worldbank.org/en/topic/gender. G4-DMA The Bank classifies each proposed project into one of four categories (A, B, C, or FI) depending on the type, location, sensitivity, and scale of the project and the nature and magnitude of its potential environmental impacts. The borrower is responsible for any assessment required by the safeguard policies, with Bank staff providing advice on the application of the policies. Depending on the type of project and its safeguard policy category, the Bank project design incorporates such issues as public consultation, environmental and social assessments, Indigenous Peoples’ plans, and resettlement frameworks and/or resettlement action plans. Compliance with these policies forms part of the legal agreements for grants and loans. In October 2012, the World Bank launched a review and update of its policies to protect people and the environment in its projects. The World Bank’s environmental and social safeguard policies contribute to sustainability and development effectiveness in Bank projects and programs by helping to avoid or mitigate harm to people and the environment. The new Environmental and Social Framework was approved by the Board of Executive Directors (EDs) on August 4, 2016, and the bank-wide implementation is currently under preparation. For updates, see http://consultations.worldbank.org/consultation/review-and-update-world-bank-safeguard-policies. Total number and percentage of One hundred percent of the 350 proposed projects were appraised in accordance with significant investment requirements per the World Bank’s policies to protect the environment and humans G4-HR1 Partial agreements and potentially affected by Bank-supported projects. Safeguard impacts are referenced in the contracts that include legal agreement and therefore are part of the contract with the borrower. human rights clauses 33 or that underwent The Bank screens each proposed project to determine the appropriate extent and type of human rights screening environmental and social analysis to be undertaken during project preparation and whether the project may involve the application of additional safeguard policies. World Bank environmental and social safeguard policies are a cornerstone of our support to sustainable development and poverty reduction. The objective of these policies is to prevent and mitigate undue harm to people and their environment in the development process. In fiscal 2016, 126 hours (21 sessions) of training of safeguard policies were Total hours of delivered to 600 staff members in Washington, DC. In fiscal 2015, 144 hours (24 employee training on sessions) of training on Bank safeguard policies were delivered to 500 staff members in human rights policies Washington, DC. In fiscal 2014, 180 hours (30 sessions) on Bank safeguard policies or procedures were delivered to 750 staff members in Washington, DC. In addition, various regional concerning aspects of offices hosted training workshops (which are not included in these totals). G4-HR2 Partial human rights that are In 2009, the World Bank launched a knowledge and learning program on human rights— relevant to operations, the Nordic Trust Fund—with the objective to help staff better understand how human including the rights relate to the Bank’s analytic and operational work. The multiyear, multi-donor trust percentage of fund also features an internal grant program in which Bank teams receive technical and employees trained financial support to explore the role of human rights in their particular project or task. The program was extended until 2019. For more information, see The Nordic Trust Fund-A Knowledge and Learning Program for World Bank Staff on Human Rights. Total number of In fiscal 2016, the Office of Ethics and Business Conduct (EBC) handled eight incidents of allegations of discrimination, compared to four in fiscal 2015. Four allegations are still G4-HR3 discrimination and Full active cases under investigation, while four allegations were closed in fiscal 2016 as not corrective actions taken substantiated, and no action was required. The World Bank recognizes that child labor is one of the most devastating consequences of persistent poverty. All standard World Bank bidding documents contain a clause prohibiting the use of child or forced labor in contracts financed under any World Bank projects. Staff in G4-DMA Bank-supported operations are required to assess social issues such as child labor within the environmental and social aspects of the projects and develop specific measures that would be implemented in the course of the project to mitigate the risk. 34 In fiscal 2016, the World Bank continued to ensure that at-risk projects in Uzbekistan include measures to prevent the occurrence of child or forced labor by beneficiaries of Bank-supported projects. The Bank led the policy dialogue aimed at transforming the cotton sector with the Government of Uzbekistan. Legal requirements, included in the financing agreements and project documents of all at-risk projects, extending also to the two projects approved in fiscal 2016, include: (1) government compliance with national legislation that prohibits the use of child or forced labor; (2) implementation of a third- Operations and party monitoring and feedback mechanism that focuses on child or forced labor issues in suppliers identified as connection with the project activities or within the project area; (3) the full collaboration of having significant risk local authorities with the monitoring third party and the commitment that actions to for incidents of child ensure compliance will be taken promptly; and (4) training, awareness, and outreach G4-HR5 activities about labor legislation and the regulations against child or forced labor. Full labor, and measures taken to contribute to the effective abolition For more information, see “Third Party Monitoring of the use of child labor and forced of child labor labor during the Uzbekistan 2015 Cotton Harvest: An assessment submitted to the World Bank by the International Labour Office,” November 2015: http://pubdocs.worldbank.org/en/307241448038866033/Uzbek-2015-TPM-Report- 20112015.pdf; and “Q&A on the World Bank’s Agriculture Sector Policy in Uzbekistan in the Context of Child and Forced Labor Concerns,” last updated April 2016: http://www.worldbank.org/en/country/uzbekistan/brief/q-a-world-bank-agriculture-sector- policy-in-uzbekistan-in-the-context-of-child-and-forced-labor-concerns. Central to the Bank’s mission of reducing poverty and promoting sustainable development is ensuring that the development proc ess fully respects the dignity, human rights, economies, and cultures of Indigenous Peoples. The Bank recognizes that the identities and cultures of Indigenous Peoples are inextricably linked to the lands on which they live and the natural resources on which they depend. These distinct circumstances expose Indigenous Peoples to different types of risks and levels of impacts from development projects, including loss of G4-DMA identity, culture, and customary livelihoods. Gender and intergenerational issues among Indigenous Peoples also are complex. As social groups with identities that are often distinct from dominant groups in their national societies, Indigenous Peoples are frequently among the most marginalized and vulnerable segments of the population. As a result, their economic, social, and legal status often limits their capacity to defend their interests in and rights to lands, territories, and other productive resources, or restricts their ability to participate in and benefit 35 from development. At the same time, the Bank recognizes that Indigenous Peoples play a vital role in sustainable development and that their rights are increasingly being addressed under both domestic and international law. The World Bank policy on Indigenous Peoples, OP/BP 4.10, Indigenous Peoples, underscores the need for borrowers and Bank staff to identify Indigenous Peoples, consult with them, and ensure that they participate in and benefit from Bank-funded operations in a culturally appropriate way. It also emphasizes that adverse impacts on them are avoided or, where not feasible, minimized or mitigated. For all projects that are proposed for Bank financing and involve Indigenous Peoples, the Bank requires the borrower to engage in a process of free, prior, and informed consultation. The Bank provides project financing only where there is broad community support to the project by the affected Indigenous Peoples. In August 2016, the World Bank Board of Executive Directors approved a new Environmental and Social Framework for protecting people and the environment in World Bank-financed investment projects, marking the end of a four-year review process that concluded in fiscal 2016. This was the most extensive consultation the World Bank has ever had. The World Bank now begins an intensive preparation and training period (12–18 months) to prepare for the transition to the new framework. The new framework advances the Bank’s existing Indigenous Peoples policy by including Free, Prior, and Informed Consent (FPIC), and by addressing peoples in voluntary isolation, and pastoralists. This provision is well harmonized with those of other International Financial Institutions. The safeguards review included a Global Dialogue and Engagement process with Indigenous Peoples that sought to incorporate Indigenous Peoples in the review and update of the World Bank’s Environmental and Social Framework, as well as to strengthen World Bank support to and engagement with Indigenous Peoples, more generally. The consultations on the framework included a number of dedicated Indigenous Peoples dialogue sessions, which yielded important results in terms of participation, information gathered, and the beginning of a renewed and stronger relationship with Indigenous Peoples. For more information, see http://www.worldbank.org/indigenouspeoples. For more information on the safeguards review process, see https://consultations.worldbank.org/consultation/review-and-update-world- bank-safeguard-policies. In fiscal 2016, two projects were processed under the pilot approach for early solutions. Total number of Paraguay: Sustainable Agriculture and Rural Development Project was closed in March, incidents of violations and Kenya: Electric Expansion Project was investigated and is under review. G4-HR8 involving rights of Full For more information, see case updates on Inspection Panel website Indigenous Peoples http://www.worldbank.org/inspectionpanel. and actions taken 36 Over the past decade, the World Bank has increasingly focused on lending to community-driven development (CDD) programs in order to let communities lead their own development. This process lets communities identify their own development priorities, design the relevant G4-DMA response, manage project funds, hire contractors, and on completion of construction, manage and sustain the project. Over the past 10 years, the volume of lending for community-driven investments has ranged from 5 percent to 10 percent of overall annual Bank lending, and the active CDD portfolio (as of December 2015) stands at more than $17 billion, across 178 projects in 72 countries, worldwide. Percentage of By definition, 100 percent of community-driven development (CDD) programs “implement operations with local community engagement,” as these programs apply, as a core operating principle, implemented local community consultation and participation in development planning and implementation, G4-SO1 community and in most cases, in controlling development resources. A limited but growing number Full engagement, impact of the portfolio of ongoing or recently closed CDD operations undertake robust impact assessments, and evaluations. Summary findings are indicated above. development programs As each of the proposed projects is screened, it is classified into one of four categories (A, B, C, or FI) depending on the type, location, sensitivity, and EA Category FY14 FY15 FY16 scale of the project, and the nature Category A 47 43 39 and magnitude of its potential impacts. Category B 284 277 209 Operations with The borrowing country government Category C 179 135 95 significant actual and is responsible for any FI 8 9 7 G4-SO2 potential negative assessments required by the Full impacts on local safeguard policies; World Bank Total 518 464 350 communities staff members provide general advice. The Legal Department monitors compliance with policies that involve international law, such as those for international waterways and disputed areas. In fiscal 2016, a total of 350 projects were screened: 39 were classified as Category A, 209 as Category B, 95 as category C, and 7 as FI. For more information on the Bank project cycle, see http://www.worldbank.org/projects. 37 Critical to the World Bank’s mission is a well-functioning public sector that delivers quality public services consistent with citizen preferences and fosters private, market-led growth, while managing its fiscal resources in a prudent manner. Bank operations across sectors systematically incorporate governance and anticorruption measures into project design. The objective is to better manage corruption and fiduciary risks and ensure that development funds are used for their intended purposes. The World Bank Group has an encompassing Governance and Anti-Corruption Strategy that imbues all its activities. The Integrity Vice Presidency (INT) is an independent unit within the Bank Group that plays an important role in this respect. INT investigates allegations of fraud and corruption in World Bank-supported activities (external investigations), as well as allegations of significant fraud and corruption G4-DMA involving Bank staff and vendors (internal investigations). The resulting debarments of firms and individuals prevent these parties from participating in future Bank-financed projects and serve as a deterrent to other potential wrongdoers. INT helps client countries through its joint investigations and forensic reviews, the investigative findings it refers to national authorities, and by sharing its insights with relevant ministries to help bolster their business systems and administration. INT also works with the private sector and NGOs through its Integrity Compliance Office to institute integrity compliance programs that sanctioned entities must satisfy in order to be released from sanction. By combining investigations with an enhanced focus on compliance, detection of red flags, and building preventive measures in projects, INT promotes a proactive approach to managing fraud and corruption risks. It is vital to manage these risks in an efficient and effective manner, as they can impact development resources, particularly in fragile contexts and high-risk sectors. In fiscal 2016, the Integrity Vice Presidency (INT) opened 64 investigations into possible fraud and corruption in 60 Bank-financed projects in 36 countries. The investigations substantiated in fiscal 2016 involved 43 projects and included the review of 124 contracts and agreements totaling approximately $633 million. In total, 87 investigations were Total number and closed (compared to 81 in fiscal 2015). More than half (53 percent) of these were closed percentage of within 12 months and 85 percent were closed within 18 months. Also, 54 of the closed operations assessed cases were substantiated, 32 were unsubstantiated, and one was unfounded. Cases are G4-SO3 for risks related to Full considered closed once the Final Investigative Report has been submitted to Bank corruption and the Operations staff. significant risks INT reported 59 projects with integrity disclosures—the so-called Volcker Trigger. The identified Volcker Trigger is a requirement to disclose to the Board any ongoing investigation or recently substantiated case (within the past two years) in a predecessor or related project for any new operation. Such disclosure is made in the Memorandum of the President to the Executive Board. 38 Within INT, the Preventive Services Unit (PSU) worked with many Task Teams across the World Bank Group’s six regions in fiscal 2016. PSU assisted 23 Task Teams in building precautions against the high levels of potential fraud and corruption risks in their projects. This engagement included training of project officials and Task Teams in- country. Thanks to PSU’s business intelligence, integrity risks were identified before they had materialized and allowed for instituting targeted controls. Training was provided to Bank staff as well as project implementation officials, including Communication and on lessons learned from investigative work and early detection of red flags in projects. In training on G4-SO4 fiscal 2016, more than 2,000 World Bank staff and Project Implementation Unit officials Partial anticorruption policies attended training programs covering integrity issues. These trainings were conducted and procedures both in Washington, DC, and in the field. The World Bank has two goals: to eliminate extreme poverty and boost shared prosperity in a sustainable manner. Poverty, as the Bank recognizes it, encompasses lack of opportunities (including capabilities), lack of voice and representation, and vulnerability to shocks. Grievance redress mechanisms (GRMs) are crucial for managing risk in the Bank’s portfolio. GRMs create opportunities to resol ve disputes before they escalate by offering a channel for citizens to express concerns, comments, and complaints. Beyond their benefits to citizens, GRMs can help the Bank and clients improve project outcomes, prioritize supervision, identify systemic issues, and promote accountability. The Bank promotes human rights principles through the projects it supports, for example, improving poor people’s access to health services, education, food, and water. Moreover, the Bank promotes the participation of project-affected people, including Indigenous Peoples, in decision-making and participation; helps strengthen the accountability and transparency of governments to their citizens; and supports justice reform and fighting corruption. Although development projects are intended to bring about positive change, their G4-DMA implementation involves risks, and people or the environment can be adversely impacted. The Bank has policies to help avoid such unintended outcomes, but some problems may remain unrecognized or unaddressed. In such circumstances, citizens need to speak out to bring attention to these problems. This can be done either through project-level Grievance Redress Mechanisms or the Bank’s corporate- level Grievance Redress Service (GRS), which was established in January 2015 to field complaints that could not be addressed at the country level. This mechanism complements the borrower’s project-level grievance mechanism (where they exist), and the Board’s Inspection Panel. OPCS leads the Bank’s corporate work on grievance redress. The GRS provides a consistent and systematic approach to the handling of complaints and conflict resolution across all IBRD/IDA operations. The work involves a number of the Bank ’s major initiatives, in particular, work on risk, results, and beneficiary feedback. 39 The Global Review of Grievance Redress Mechanisms found that half of all Bank projects featured a GRM in project-design documents. However, new research shows implementation challenges. A major focus for the Bank in the future will be to further integrate grievance redress in all projects, increase support for implementation, and enhance collection and monitoring of grievances received and resolved across the project portfolio. For more information on GRMs, see http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service. Number of grievances about impacts on society filed, Data for this indicator is not available. Systems are being established to better capture G4-SO11 addressed, and Partial the data from project level GRMs. resolved through formal grievance mechanisms The World Bank supports a wide array of investments in such areas as education, health, public administration, infrastructure, financial and private sector development, agriculture, and environmental and natural resource management. Bank stakeholders look to the institution, as a lending facility, to have policies and procedures in place that assess and screen environmental and social risks in its lending portfolio. The World Bank is a vital source of financial and technical assistance to developing countries around the world. We are not a bank in the ordinary sense, but a unique partnership to reduce poverty and support development. In 2013, the World Bank adopted a new World Bank Group Strategy focused on aligning all of the institutions’ work with the twin goals of eliminating extreme poverty and boosting shared prosperity in a sustainable manner. The two goals are now at the heart of the World Bank Group’s work. The World Bank Group Corporate Scorecard was developed to monitor implementation and aggregate the contributions of G4-DMA all the World Bank Group institutions. On a day-to-day basis, in close partnership with country government counterparts and their stakeholders, Bank staff members shape the role, financial products, and technical and advisory services to the unique development needs and capacities of each country client. Thus, interactions with clients, investees, and business partners regarding environmental and social risks and opportunities form the foundation of the Bank’s advisory and loan services. The Bank’s environmental and social safeguard policies are the cornerstones of the financial, technical, and advisory services, and are applied to prevent and mitigate impacts and risks to people and their environment in the development process. In October 2012, the World Bank launched a review and update of its policies to protect people and the environment in its projects. The World Bank’s environmental and social safeguard policies contribute to sustainability and development ef fectiveness in Bank projects and programs by helping to avoid or mitigate harm to people and the environment. The new Environmental and Social 40 Framework was approved by the Board of Executive Directors (EDs) on August 4, 2016, and the bank-wide implementation is currently under preparation. The World Bank’s environmental and social safeguard policies embody the institution’s commitment to sustainable development and poverty reduction. There are 10 safeguard policies: environmental assessment, natural habitats, forests, pest management, physical cultural resources, dam safety, Indigenous Peoples, involuntary resettlement, international waterways, and disputed areas. These policies aim to prevent and mitigate possible adverse impacts on people and their Policies with specific environment in the development process. These policies provide a mandatory framework environmental and for Bank and borrower staffs in the identification, preparation, and implementation of FS1 social components Full Bank-supported investment programs and projects. The effectiveness and development applied to business impact of projects and programs supported by the Bank has substantially increased as a lines result of attention to these policies. Safeguard policies have often provided a platform for the participation of stakeholders in project design, and have been an important instrument for building ownership among local populations. All safeguard policies have been approved by the Board of Directors. For more information on key risks, opportunities, and impacts that the individual policies address, see Bank Safeguard Policies. The Bank undertakes the screening of each proposed project to determine the appropriate extent and type of environmental and social analysis. This includes the use of environmental and social impact assessments, conducted during project preparation to establish whether the project may involve the application of additional safeguard Procedures for policies. The Bank classifies the proposed project into one of four categories (A, B, C, or assessing and FI) depending on the type, location, sensitivity, and scale of the project and the nature screening and magnitude of its potential environmental impacts. The borrower is responsible for FS2 Full environmental and any assessment required by the safeguard policies, with general advice provided by social risks in business Bank staff. lines In general, a World Bank environmental and social specialist is assigned to each project with the potential to have environmental and social impact or risk in its design and planning stage. A practice manager, who is responsible for a number of projects, most often in sector and regional associations, manages this process. As the project moves through design, the Bank works with the clients to understand the technical features of 41 each project, and in partnership with borrowers, works to develop approaches for addressing these impacts as risks, as required by the suite of World Bank safeguard policies. For category A and B projects, there is also involvement by the Regional Safeguard Advisor. Higher-risk projects require a series of “safeguard” instruments to identify and explain how the borrower will mitigate any identified risks and potential adverse impacts. Depending on the size and nature of the operation several quality control and review committees meet to authorize the project’s processing, such as the Regional Operational Committee, or the Operations Committee chaired by the Managing Director. Finally, the Board of Directors must approve all projects, and those approvals also require submission or summaries of any environmental assessment and social safeguard documents. For more information on procedures for assessing and screening environmental and social risks, see Bank Safeguard Policies. The Bank uses its Implementation Status and Supervision Reports to track safeguards implementation. Monitoring of clients’ compliance with implementing the environmental and social requirements included in the loan agreement of a specific project is part of regular project supervision. Supervision missions of projects are carried out at a minimum twice a year, or more frequently as determined on a project-specific basis, and include staff with Processes for appropriate environmental and social expertise. For more complex projects, staff monitoring clients’ members from the regional safeguards units are included. The Safeguards Team within implementation of and the Bank’s Standards, Procurement and Financial Management Unit supports the compliance with FS3 regions and assures that the Bank’s safeguards are applied in a uniform manner across Full environmental and regions. Provisions for grievance mechanisms by which stakeholders can bring concerns social requirements forward provide an additional source of information for possible problems with project included in agreements implementation. or transactions Bank environmental and social specialists work with the project Task Team and borrowers to identify noncompliance issues and provide advice for bringing projects into compliance. Remedies are also available, if necessary. During project supervision, both environmental and social specialists undertake project site visits and consult with numerous stakeholders. When safeguard issues of concern are encountered, the Bank engages in discussions with the borrower to arrive at mutually 42 agreed courses of action that are both time bound and identify responsible parties. These actions are documented in the Aide Mémoire and regularly in technical back-to- office reports. The World Bank is carrying out a range of regular programs as well as tailored trainings for staff and borrowers on the application of its safeguards policies, best practices, case studies, and lessons learned. The safeguards team offers weekly workshops on applying safeguard policies, and each regional vice presidency offers trainings on safeguard policies. In addition, an accreditation course has been established for environmental specialists advising teams on environmental safeguards during project preparation and supervision. The purpose of accreditation is to ensure that the Bank’s environmental safeguard policies are consistently applied during project preparation and supervision, and to confirm broader environmental expertise by the accredited staff. A similar accreditation course has been established for social safeguard staff. Processes for Safeguards Training Modules introduce the basic concepts of safeguards and also improving staff contain specific case studies and operational examples to provide richer understanding competency to of how safeguards are applied. A unique safeguards e-learning module is provided for all implement the Task Team Leaders. FS4 Full environmental and Each regional safeguards unit also conducts a series of demand-driven safeguards social policies and training across various themes and for different staff audiences. These include “just in procedures as applied time” clinics, brown bag seminars, and face-to-face safeguards clinics on topics such as to business lines use of frameworks, voluntary land donation, developing environmental contract clauses for EMPs, and resettlement workshops. These training sessions are provided both in central regional locations for multiple attendees and in specific countries for country staff. Newer delivery tools have also included webinars. Special manager safeguards trainings have been completed as well. Several regions also conduct safeguards trainings and share experiences across other international financial institution partners. All staff who take the Bank Core Curriculum Course are required to take the Safeguards Training Modules. Additional mentoring and partnerships across Bank safeguards staff is available as needed. 43 The World Bank is a development institution, providing low- or no-interest loans (credits) and grants to low-income countries, middle-income countries, and small and fragile states. Working closely with country government counterparts and their stakeholders, Bank staff members shape its role, financial products, and technical and advisory services to the unique development needs and capacities of each country client. Thus, interactions with clients, investees, and business partners regarding environmental and social risks and opportunities form the foundation of the Bank’s advisory and loan services. All regional safeguards units conduct various client safeguard capacity-building processes. Many projects use the project kickoff meeting to review the agreements and provisions for safeguards with formal and informal trainings. In many countries, the government project implementation unit attends special safeguards training organized by Interactions with the Bank safeguards staff. clients, investees, or When particular safeguards issues of concern appear common, the Bank may undertake business partners a targeted review of a regional or sectoral project portfolio. In certain cases, one or FS5 regarding several environmental and social safeguards specialists undertake a country visit and Full environmental and conduct site visits with safeguards training to help improve safeguards implementation or social risks and correct past shortcomings. When needed, there are formal face-to-face workshops, opportunities project implementation safeguards training in the field with project stakeholders, consultations by lead safeguards specialists, and rapid-response project visits to deal with high-risk issues of concern. The safeguards implementation reports, the responsibility of the borrower, are bank- required supervision reports summarizing borrower progress on an annual, biannual, or quarterly basis, depending on project safeguards risk. The submission of Environmental Social Impact Assessment and ESMP reports during project implementation is required for Bank review and clearance. The Bank holds regular supervision mission meetings designated for the year and end- of-supervision mission meetings between the Bank and borrowers. There is discussion between Bank safeguards specialists and project implementing safeguards managers or project contract safeguards supervisors and technicians. 44 Percentage of the World Bank lending commitments for development support totaled $45.9 billion in fiscal portfolio for business 2016. FS6 Full lines by specific region, For more information, see the World Bank Annual Report 2016, size, and by sector http://www.worldbank.org/en/about/annual-report. Monetary value of World Bank lending can have both social and environmental benefit and is not divided products and services into these categories. Lending totals for IBRD and IDA, broken down by theme and FS7 designed to deliver a sector commitments, are available in the World Bank Annual Report 2016 on pages 62– Full specific social benefit 63. for each business line See http://www.worldbank.org/en/about/annual-report. Monetary value of World Bank lending can have both social and environmental benefit and is not divided products and services into these categories. Lending totals for IBRD and IDA, broken down by theme and designed to deliver a sector commitments, are available in the World Bank Annual Report 2016 on pages 62– FS8 Full specific environmental 63. benefit for each See http://www.worldbank.org/en/about/annual-report. business line Two entities hold responsibilities for assessing and monitoring the Bank Group’s effectiveness: The Internal Audit Vice Presidency (IAD) has an independent and objective assurance advisory function designed to add value by assessing whether governance, risk management, and control processes of the Bank Group are effective in achieving the organization’s goals. IAD also provides advice to management in developing control solutions, and monitors the implementation of management actions to mitigate risks and strengthen controls. See IAD’s annual and quarterly reports: http://www.worldbank.org/en/about/unit/internal-audit-vice-presidency. G4-DMA The Independent Evaluation Group (IEG) is responsible for appraising the World Bank Group operations self-evaluation and development risk-management systems, and attesting to their adequacy to the Board of Executive Directors. To this end, IEG periodically reviews the relevance, effectiveness, and efficacy of key operational policies, such as the environmental and social safeguards framework for Bank Group lending. For more information, see IEG’s website: http://ieg.worldbank.org. 45 Coverage and frequency of audits to assess implementation For a summary of Bank accountability systems that assess Bank operational FS9 of environmental and performance, see pages 54-55 of the World Bank Annual Report 2016: Full social policies and risk http://www.worldbank.org/en/about/annual-report. assessment procedures The World Bank values the diversity, health, safety, and security of its staff, who work in Washington, DC, and in 136 countries worldwide. The institution’s diverse workforce brings a wide range of perspectives to bear on poverty-reduction issues and emerging development challenges. It is critical to the effectiveness of the Bank’s core operational and knowledge services. Our staff diversity is a strategic business asset that directly contributes to achievement of our two goals: reducing extreme poverty by 2030 and boosting shared prosperity for the bottom 40 percent of the population in every country. To that end, it is important that the Bank employ the right people in the right place with the right skills at the right time. To deliver on that G4-DMA commitment, the Human Resources (HR) Strategy for fiscal 2014–2016 had five critical components: (1) building a culture of performance and accountability, (2) driving a more effective organization, (3) fostering a more diverse and inclusive workforce, (4) creating career opportunities, and (5) ensuring HR excellence and business-driven delivery. As the Bank retools to increase its delivery and responsiveness to its clients, Human Resources has played a pivotal role in the transition of staff from the previous structure to the Global Practices model, introduced in July 2014. Looking forward, the Bank will continue to ensure full alignment of staffing needs with the World Bank Group strategic priorities. Ratios of standard To recruit and retain highly qualified staff, the World Bank has developed a entry level wage by compensation and benefits system designed to be internationally competitive, to reward gender compared to performance, and to take into account the special needs of a multinational and largely G4-EC5 Partial local minimum wage at expatriate staff. The Executive Directors annually review the staff salary structure and, if significant locations of warranted, the salary structure is adjusted on the basis of a comparison with salaries operation paid by private financial and industrial firms and by representative public sector agencies 46 in the US market. The salary structure is reported according to job position for Washington, DC, staff, which comprises more than 60 percent of total staff. For staff in country offices, compensation programs are developed based on local market practices consisting of private sector firms, and representative quasi-public and nonprofit organizations. The grading system and benchmark job positions in country offices follow the same framework as Washington, DC. Globally, World Bank Group salary structures are not disclosed according to gender. Remuneration of executive management, Executive Directors, and staff are disclosed in the World Bank Annual Report 2016. For more information, see www.worldbank.org/en/about/annual-report. In fiscal 2016, four out of 170 managers at the director level and above (professional grade GI+) were locally hired to work within countries where World Bank offices are located. There were only three out of 173 managers at the director level in fiscal 2015. Proportion of senior Out of all 526 managers (professional grade GH+) on board, nationals of countries management hired defined as Part II (roughly equivalent to developing countries) account for 44 percent of from the local G4-EC6 management positions. In fiscal 2015, 42 percent of the 502 managers were nationals of Full community at Part II countries. significant locations of Sub-Saharan African and Caribbean nationals, a criterion used as proxy for race, operation represented 12 percent of management positions in fiscal 2016. This has remained the same since fiscal 2015. For information about the Bank’s career tracks, see www.worldbank.org/jobs. Consumption of materials is minimal in the World Bank’s corporate operations, but nonetheless important. Through investor questionnaires, “materials” has been identified as an important aspect of the Global Reporting Initiative exercise. Key materials include office supplies and electronics purchased to support the work of our staff globally. Reducing the environmental impact of these materials by minimizing consumption and preferring recycled content and rapidly renewable choices ensures resources are G4-DMA available for future generations. The World Bank identifies products and services with large environmental impacts or those of which it procures in large amounts. The World Bank then works to identify environmentally and socially preferable alternatives. Quarterly reports from key suppliers reflect the percentage of products that meet key environmental criteria, such as percentage of recycled content, environmental certifications such as Energy Star ratings and Forest Stewardship Council (FSC) certification, and other sustainable criteria. 47 As a development institute, the World Bank does not produce or manufacture any products. The materials we use regularly include office supplies and electronics. The World Bank’s use of nonrenewable materials is as follows: The Bank tracks office electronic purchases for any device that qualifies for the US Environmental Protection Agency's (EPA) Energy Star Program, as well as any battery purchases. In fiscal 2016, the Bank purchased 13.38 tons of such electronics and Materials used by G4-EN1 batteries. In addition, the Bank tracks purchases from its office supplier. In fiscal 2016, Partial weight or volume the Bank purchased 103 metric tons of these products. The World Bank also purchases diesel fuel and natural gas for use in powering our buildings. These materials are reported on in EN3. The World Bank’s use of renewable materials is as follows: The Bank tracks paper purchases of renewable materials. In fiscal 2016, the amount of paper used was 505 tons. The World Bank is committed to using resources that are made from recycled or rapidly renewable materials for its internal operations. The largest material purchases include paper, office supplies, office furniture, cafeteria napkins, and electronics. World Bank standard copier and printer paper is 100 percent post-consumer waste recycled content and FSC certified. The Bank tracks the percentage of all paper used at the institution that was made of recycled content, as well as the percentage of paper used that is 100 percent recycled content. In fiscal 2016, this amount was 62 percent, up from 60 percent in fiscal 2015. Percentage of materials The Bank also tracks the percent by weight of all items purchased from our office supply G4-EN2 used that are recycled Partial vendor that contain at least 10 percent post-consumer recycled content. In fiscal 2016, input materials 22 percent of all purchases from the office supply vendor contained at least 10 percent post-consumer recycled content, compared to 28 percent in fiscal 2014, the last year we tracked such information. This decrease is due to the Bank’s use of a managed print service, which eliminated the use of recycled-content printer cartridges in favor of a centralized service provider. More than 40 percent of our office furniture contains a minimum of 10 percent post- consumer recycled content, and the majority of furniture in use at the World Bank has been refurbished or reupholstered. 48 In our food services, all cafeteria napkins are made from 100 percent post-consumer recycled paper and produced with a 100 percent bleach-free process. We also include sustainability criteria within our information technology purchases that ensure components of our computers, laptops, and monitors are made of recycled input materials. Energy is a key input to the World Bank’s business operations. Through investor questionnaires, energy has been identified as an important aspect for the Bank’s business. The purchase and use of energy can have various impacts because of the extraction of materials from the earth’s crust and the production of persistent toxic emissions from the combustion of fuels. Combustion of fossil fuels can have severe health impacts on people. Moreover, the purchase and use of energy affects the expense-to-business revenue ratio. G4-DMA The World Bank manages its energy use carefully by tracking use in each owned facility. Quarterly tracking of the Bank’s energy use is evaluated by the Director of General Services. Energy use is evaluated both as an absolute figure as well as on an intensity basis to determine progress. Responsibility for increasing the energy efficiency of the Washington, DC, campus, with the goal of bringing all owned facilities to Leadership in Energy and Environmental Design (LEED) minimum requirements, falls with the Senior Project Manager in the Bank’s Corporate Real Estate unit. Data from country offices lag by one year; therefore, fiscal 2015 data (including that from HQ) are presented in the 2016 GRI Index. The World Bank purchases natural gas, propane, gasoline, and diesel fuel for combustion onsite. In fiscal 2015, total global fuel use was 99,041 gigajoules (GJ), 92,793 GJ in fiscal 2014, and 90,135 GJ in fiscal 2013. The portion of this fuel consumption from renewable resources is not tracked, because data from fuel providers are not appropriately detailed. Energy consumption G4-EN3 In fiscal 2015, global energy use increased by 3.7 percent. Total global energy use in Full within the organization fiscal 2015 equaled 538,966 GJ. Offices located in the US used 346,526 GJ, compared to 337,744 GJ in fiscal 2014, 344,988 GJ in 2013, and 404,480 GJ in 2012. In fiscal 2015, the Bank’s 129 country offices consumed a total of 192,440 GJ of energy, compared to 181,845 GJ in fiscal 2014, 203,184 GJ in fiscal 2013, and 179,124 GJ in fiscal 2012. 49 Energy Consumption (GJ) Fiscal 2015 Fiscal 2014 Fiscal 2013 Total 538,966 519,589 548,172 Electricity 434,087 420,951 425,382 Heating 16,195 18,704 25,167 (including natural gas, propane) Cooling 31 28 48 Steam 5,807 5,817 7,149 The remainder was from diesel and other fuel consumption for energy generation. The World Bank does not sell any electricity, heating, cooling, or steam. Information about World Bank standards, methodologies, and assumptions used, including conversion factors, can be found in the World Bank Group’s Inventory Management Plan for fiscal 2014. For more information, see http://worldbank.org/corporateresponsibility. Energy consumption outside the organization includes fuel used in contractor-owned vehicles as well as commercial airlines used for employee business travel. In fiscal 2015, 18,413 GJ stemmed from contractor vehicles, compared to 21,900 GJ in fiscal 2014 and 14,636 GJ in fiscal 2013. The decrease between fiscal 2014 and 2015 is most likely due to the increase of owned vehicles in some of our 129 country offices. Data for fuel use in Energy consumption commercial airliners are not available. G4-EN4 outside of the Information regarding World Bank standards, methodologies, and assumptions used, Full organization including conversion factors, can be found in the World Bank Group’s Inventory Management Plan for fiscal 2014. For more information, see http://www.worldbank.org/corporateresponsibility. 50 Energy intensity remained relatively the same in fiscal 2015, with the World Bank using 0.90 GJ of energy per square meter as compared to 0.88 GJ per square meter in fiscal 2014 and 0.95 GJ of energy per square meter in fiscal 2013. G4-EN5 Energy intensity Full This is based on 596,562 total square meters in fiscal 2015 and 548,795 total square meters in fiscal 2014. This ratio includes all energy (onsite combustion fuel, electricity, heating, cooling, and steam) except for energy consumption outside of the organization. In fiscal 2015, the Bank undertook efficiency measures that reduced its energy consumption by 4,683 GJ, predominately through reductions in heating and electricity use. An intensive retro-commissioning effort in one of the Bank’s Washington, DC, buildings resulted in a 25 percent reduction in gas consumption and a 13 percent reduction in electricity, enough to raise the Energy Star score from 59 to 71. The cooling towers were Reduction of energy replaced, resulting in modeled energy savings of 652 GJ per year in the Washington, G4-EN6 DC, main complex. Full consumption A number of projects in our managed and owned country offices, including a series of solar-powered LED lighting upgrades in Nairobi, South Sudan, and Madagascar, led to savings of nearly 600 GJ in fiscal 2016. Reduction reporting is based on major initiatives taken in fiscal 2016. Methodologies and assumptions for calculating reductions are specific to each initiative and are sourced from engineering proposals. Addressing climate change is part of the World Bank’s core mission of helping countries end extreme poverty and boosting shar ed prosperity. Climate change threatens to erode development gains around the world—and its effects will be greatest on the poorest and most vulnerable countries, which are the World Bank’s clients. G4-DMA As a demonstration of its corporate commitment to addressing climate change, the Bank continues to deepen its efforts to measure, reduce, offset, and report its greenhouse gas (GHG) emissions associated with its global internal operations, including its facilities, key meetings, and corporate air travel. The Bank has measured the GHG emissions from its facilities in Washington, DC, since 2005 and globally since 2007. Emissions data are collected and emissions are calculated in accordance with the World Resources Institute and World Business Council for Sustainable Development’s GHG Protocol, with additional information on proxies, emissions factors, and the 51 complete boundary available in the annually updated World Bank Group’s Inventory Management Plan. A third party regularly ver ifies the Inventory Management Plan and the GHG inventory to ensure they meet international best practices. In fiscal 2010, the World Bank set a goal of reducing GHG emissions by 10 percent from owned and managed facilities by 2017. As of fiscal 2016, the Bank was on track to meet this goal. We will continue to work toward reducing emissions further and report on our progress at the end of the goal period. Data from country offices lag by one year; therefore, fiscal 2015 data (including that from HQ) are presented in the 2016 GRI Index. The World Bank measures direct GHG emissions for its internal operations based on site-specific data for facilities. Estimates are made for those facilities with missing data. In fiscal 2015, total gross direct (Scope 1) GHG emissions equaled 8,016 mtCO2e, of which 1,009 mtCO2e were emissions from the Bank’s US facilities. The remaining 7,007 mtCO2e stem offices and vehicle use in our 129 country offices. Base-year (fiscal 2010) emissions equal 5,844 mtCO2e. The decrease in Scope 1 emissions was due to a decreased requirement to use generators for blackouts and other electrical outages. Scope 1 emissions Fiscal 2015 Fiscal 2014 Fiscal 2013 Base year (mtCO2e) Fiscal 2010 Direct greenhouse gas Direct greenhouse gas 8,016 9,387 12,094 5,844 emissions G4-EN15 (GHG) emissions Full (Scope 1) US facilities and vehicles 1,009 1,181 1,548 1,615 Country Office facilities 7,007 8,152 10,546 4,228 and vehicles* * The increase in Country Office emissions was due to improved measurement practices. Gases included in the calculation are CO2, CH4, N2O, HFCs, and PFCs. There are no known emissions of SF6 or NF3, as detailed in the Inventory Management Plan, and no biogenic CO2 emissions. Information on methodology, emissions factors, GWP rates, and consolidation approach can be found in the World Bank Group’s Inventory Management Plan for fiscal 2015. For more information, see http://www.worldbank.org/corporateresponsibility. 52 The World Bank measures indirect GHG emissions for its internal operations based on site-specific data for facilities. Estimates are made for those facilities with missing data. In fiscal 2015, Scope 2 emissions from the Bank’s global offices continued to reduce, to 49,950 mtCO2e. Scope 2 emissions (mtCO2e) Fiscal 2015 Fiscal 2014 Fiscal 2013 Base year Fiscal 2010 Gross energy indirect 49,950 54,648 55,258 60,546 Energy indirect US 36,268 40,670 40,841 46,756 G4-EN16 greenhouse gas (GHG) Full Country Office* 13,682 13,979 14,417 13,790 emissions (Scope 2) * Includes emissions from purchased steam, chilled water, and d electricity. Information on base-year selection can be found in the Inventory Management Plan. Gases included in the calculation are CO2, CH4, N2O, HFCs, and PFCs. There are no known emissions of SF6 or NF3, as detailed in the Inventory Management Plan, and no biogenic CO2 emissions. Information on methodology, emissions factors, GWP rates, and consolidation approach can be found in the World Bank Group’s Inventory Management Plan for fiscal 2015. For more information, see http://www.worldbank.org/corporateresponsibility. The World Bank measures indirect GHG emissions from air travel taken by Bank employees, as well as delegate air travel and other indirect emissions associated with major meetings that the Bank organizes. In fiscal 2012, the Bank began measuring GHG emissions from contractor-owned vehicles. In fiscal 2015, these emissions totaled approximately 102,518 mtCO2e, slightly increased Other indirect from fiscal 2014 emissions, estimated to be 101,667 mtCO2e. Base-year emissions in G4-EN17 greenhouse gas (GHG) fiscal 2010 equaled 115,545 mtCO2e. Full emissions (Scope 3) Gases included in the calculation are CO2, CH4, N2O, HFCs, and PFCs. There are no known emissions of SF6 or NF3, as detailed in the Inventory Management Plan, and no biogenic CO2 emissions. Information on methodology, emissions factors, GWP rates, and consolidation approach can be found in the World Bank Group’s Inventory Management Plan for fiscal 2015. For more information, see http://www.worldbank.org/corporateresponsibility. 53 The World Bank measures GHG emissions intensity in two distinct categories. Scope 1 and Scope 2 emissions are normalized per square meter, while Scope 3 emissions, pertaining to employee air travel, are normalized per full-time equivalent (FTE) employee. Emissions scopes Fiscal 2015 Fiscal 2014 Fiscal 2013 Base year Fiscal 2010 Scopes 1 and 2 (mtCO2e 0.097 0.108 0.116 0.107 Greenhouse gas (GHG) G4-EN18 per square meter) Full emissions intensity Scope 3 (mtCO2e per 8.43 8.24 9.5 9.9 FTE) Gases included in the calculation are CO2, CH4, N2O, HFCs, and PFCs. There are no known emissions of SF6 or NF3, as detailed in the Inventory Management Plan. Information on methodology, emissions factors, GWP rates, and consolidation approach can be found in the World Bank Group’s Inventory Management Plan for fiscal 2015. For more information, see http://www.worldbank.org/corporateresponsibility. Estimated reduction in CO2, CH4, and N2O emissions from Scope 2 activities totaled 3,000 metric tons, including the projects listed below. An intensive retro-commissioning effort in one of the Bank’s Washington, DC, buildings resulted in a 25 percent reduction of gas consumption and a 13 percent reduction in electricity, with predicted reductions in GHG emissions of nearly 400 mtCO2e per year. The replacement of the cooling towers in the Washington, DC, main complex is predicted Reduction of to reduce GHG emissions by at least 70 mtCO2e per year. G4-EN19 greenhouse gas (GHG) Full The continued project in replacing lighting on the HQ campus with LEDs is projected to emissions reduce emissions by over 2,400 mtCO2e per year. A number of projects in our managed and owned country offices, including a series of solar-powered LED lighting upgrades in Nairobi, South Sudan, and Madagascar, are projected to reduce emissions by around 70 mtCO2e per year. Reduction reporting is based on major initiatives taken in fiscal 2015 as related to achieving reductions from the fiscal 2010 base year. Fiscal 2010 was chosen as the 54 base year because it was the first year that confidence for data related to emissions from country offices was high. Methodologies and assumptions for calculating reductions are based on initiative proposals for each reduction project. Emissions of ozone- G4-EN20 depleting substances The World Bank does not produce, import, or export any ozone-depleting substances. Full (ODS) The World Bank views reducing effluent and waste production as a material aspect because of the possible negative environmental impacts, which include the release of persistent toxic chemicals through waste disposed of in landfills or by being incinerated. Bank stakeholders also consider reducing the Bank’s effluent and waste production important. The Bank has worked to reduce the amount of waste sent to landfills through a combination of source reduction, reuse, and recycling. Minimizing the amount of material brought into Bank facilities is the first way it manages the amount of waste created. Avoiding unnecessary packaging for purchased items, including encouraging minimum purchase thresholds for office supplies, is one way the Bank G4-DMA accomplishes this. Another way is by mandating that large purchases from vendors, such as the Bank’s latest computer monitor purchase, be delivered in bulk instead of individually packaged. In fiscal 2016, the Bank continued to pursue efficiencies in the standardization of waste management in its headquarters facilities. The concentration in 2016 was on standardizing bins in all offices, as well as continuing to increase the diversion rate in cafeterias. All offices in Washington, DC, facilities received a standard bin for both landfill and recyclable waste. An evaluation was made of Bank loading docks and other infrastructure to find efficiencies and evaluate the practicality of introducing source-separated recycling. The most recent audit for the cafeterias was not completed in time for the results to be included in this report. The Bank has worked to reduce the amount of waste sent to landfills through a combination of source reduction, reuse, and recycling. See the discussion about Total weight of waste sustainable facilities for details. No hazardous waste is generated by the World Bank. G4-EN23 by type and disposal Full Total nonhazardous waste produced by the Bank’s Washington, DC, offices in fiscal method 2016 was 1,836 metric tons, compared to 1,965 metric tons in fiscal 2015 and 1,913 metric tons in fiscal 2014. 55 The information is provided by the waste-disposal contractor and the electronic-waste recycler, subcontracted through the Bank’s PC provider. Weights from roll-off compactors used for landfilled waste and recycling are exact weights to the closest one tenth of a ton. Proxies for estimating composting weight from trashcans are not available, but will be included in future reports. Waste streams (tons) Fiscal 2016 Fiscal 2015 Fiscal 2014 Total nonhazardous waste 1,836 1,965 1,913 in Washington, DC Landfill 786 858 822 Recycling 808 935 1,025 Compost 242 171 148 * Includes paper, bottles and cans, cardboard, toner cartridges, carpet tiles, and electronics. Environmental degradation affects the world’s poor disproportionately and therefore, reducing the Bank’s own corporate environmental impacts is in line with the Bank’s mission of reducing poverty. For internal operations, this means engaging in responsible b usiness G4-DMA practices that reduce negative environmental and social impacts while enhancing the wellbeing of staff, as well as the ecosystems, communities, and economies in which staff operate. The World Bank employs a small team of environmental specialists who work to mainstream sustainability throughout the organization. In fiscal 2016, the World Bank lending for environmental and natural resource- management-themed projects amounted to approximately $3.16 billion, which represents about 7 percent of total lending. In addition, the Bank is currently working with member countries to take action on climate change—helping cities to adopt green-growth Total environmental strategies and develop resilience to climate change, developing climate-smart protection G4-EN31 agricultural practices, finding innovative ways to improve both energy efficiency and the Partial expenditures and performance of renewable energies, and assisting governments to reduce fossil fuel investments by type subsidies and put in place policies that will eventually lead to a stable price on carbon. For more information, see the World Bank Annual Report 2016: http://www.worldbank.org/en/about/annual-report and the Climate Change website: http://worldbank.org/climatechange. 56 The World Bank’s internal operations are managed by the General Services Department (GSD), which provides a wide range of integrated services to make the Bank’s internal operations efficient, comfortable, and environmentally sound. The business managers of the Real Estate, Travel, Food Services, Printing and Multimedia, and other units are responsible for incorporating environmental concerns into their work programs. Efforts to manage the environmental impact from their areas are part of the Bank’s operating costs and not quantified separately. The Corporate Responsibility Program supports Bank-wide efforts to integrate environmental and social concerns into the management of day-to-day activities, and communicates with staff, clients, and partners regarding these concerns. The program has an annual budget of $560,000. In addition, the Bank offsets its emissions in two different ways. It purchases Renewable Energy Certificates (RECs) in equal amounts (MWh) to the electricity it consumes globally. Also, the Bank offsets other emissions (Scope 1 and Scope 3) through the purchase of Verified Emissions Reductions (VERs). In fiscal 2015, the Bank maintained carbon neutrality by the purchase of credits totaling $285,000 from a portfolio of projects, including a small-scale hydropower project in Madagascar, a cook stove project in Rwanda, and a combined solar and wind project in India. An additional $185,000 was spent on emissions reduction efforts in country offices. Efforts in fiscal 2016 included upgrading compound and security lighting in many offices to solar-powered LED lighting. The World Bank works to reduce the environmental footprint of its facilities by procuring goods and services that have reduced environmental impacts. The World Bank Corporate Procurement unit is responsible for coordinating and overseeing the sourcing strategy, selection, and contract execution for Bank offices around the globe, including adherence to the Bank’s policies on socially and G4-DMA environmentally responsible corporate procurement policies. Major corporate material purchases (including office construction and renovations, paper, computers, and furniture) are made with environmental life-cycle assessments in mind, and incorporate mandatory environmental specifications. Percentage of new Although environmental criteria are used in both the mandatory and evaluation suppliers that were specifications of many large institutional purchases, the percentage of new suppliers G4-EN32 Partial screened using screened using environmental criteria is not available. The data are currently not tracked environmental criteria within the vendor information database. 57 The Bank is committed to attracting and retaining the best talent, developing their capabilities, ensuring their wellbeing, and affording them opportunities to make a difference. Bank staff members come from over 170 countries and include economists, educators, environmental scientists, financial analysts, foresters, agronomists, engineers, information technology specialists, social scientists, and so on. G4-DMA The World Bank Group’s Human Resources supports the institution in building a workforce with the right skills and behaviors in the right places at the right time, and making the Bank the best place to work in development. Looking forward, HR is developing the World Bank Group People Strategy for fiscal 2017–2019, based on extensive stakeholder engagements, which help ensure alignment with the institutional priorities, needs, and challenges as well as strengthen the Employment Value Proposition. In fiscal 2016, 1,418 full-time staff were hired, as compared to 1,072 in fiscal 2015. The rate of new employee hires equaled 12 percent (9 percent in 2015). Of those hired, 44 percent were hired in non-US offices, and 52 percent were female. In fiscal 2016, 1,920 staff left the Bank—at a turnover rate of 16.4 percent (of which, 3.8 percent was voluntary), partly due to the phasing out of 1,029 extended-term consultant/temporary appointments. In fiscal 2015, 1,508 staff left the Bank—at a turnover rate of 12.5 percent. Thirty-three percent of employees who left the Bank were located in non-US offices, and 54 percent were female. Total number and Staff hired FY16 FY15 FY14 shares of new employee hires and Number % of total Number % of total Number % of total G4-LA1 Partial employee turnover by United States 795 56% 656 61% 1,077 61% age group, gender, and Female 425 30% 337 31% 558 32% region Male 370 26% 319 30% 519 29% Non-US offices 623 44% 416 39% 693 39% Female 319 22% 225 21% 346 20% Male 304 21% 191 18% 347 20% Total hires 1,418 1,072 1,770 Of which Female 744 52% 562 52% 904 51% Of which Male 674 48% 510 48% 866 49% 58 Staff terminated FY16 FY15 FY14 Number % of total Number % of total Number % of total United States 1,293 67% 963 64% 1,039 63% Female 702 37% 526 35% 559 34% Male 591 31% 437 29% 480 29% Non-US offices 627 33% 546 36% 609 37% Female 331 17% 268 18% 310 19% Male 296 15% 278 18% 299 18% Total 1,920 1,509 1,648 terminations Of which Female 1,033 54% 794 53% 869 53% Of which Male 887 46% 715 47% 779 47% The World Bank is committed to providing benefits that respond to staff needs globally and are aligned with best practices. This includes life insurance, health care, disability and invalidity coverage, retirement provisions, parental leave, and opportunities for flexible work arrangements, as well as mobility, relocation, and resettlement benefits. These benefits vary with appointment type (whether open-ended or fixed-term staff or extended-term consultant/temporary) and whether the position is based at headquarters, Benefits provided to in Washington, DC, or in one of the 136 countries with Bank operations. The World full-time employees Bank’s compensation and benefits policy is to provide a package to attract and retain that are not provided to diverse and highly talented staff while responding to external market situations and our G4-LA2 temporary or part-time Full shareholders. These policies are specified in the internal Staff Manual, which is available employees, by to all staff. The Board meets every year to review compensation and determine the significant locations of overall group-wide pay increase. operation Benefits for staff on open-ended, fixed-term, and extended-term-consultant/temporary contracts, with certain variation for the latter appointment type, which is phasing out, include:  Life insurance and accidental death and dismemberment coverage are offered to staff and eligible dependents. These benefits help protect the financial security of beneficiaries. 59  Medical plans are offered to staff and retirees and their dependents. These plans provide medical, dental, vision, and pharmacy benefits. The plans cover the staff member, one spouse or domestic partner, and dependent children or stepchildren under the age of 26. The staff member pays 25 percent of the premium costs, and the Bank pays 75 percent. Staff leaving the organization may elect to receive continuation of their medical, dental, vision, and pharmacy coverage for up to 36 months at their own cost.  Staff who are on sick leave for more than 20 consecutive days can apply for short-term disability, which pays 70 percent of salary for up to 24 months. Staff must first exhaust any accrued sick leave before disability pay starts. If a staff member remains disabled beyond the 24-month period, long-term disability benefits are provided at 70 percent of salary until the earliest of retirement, death, or recovery from disability. While on long-term disability, staff medical coverage and pension contributions are 100 percent paid by the Bank.  Staff receive between 26 and 30 days of paid annual leave, depending on the length of service, and 15 days of sick leave per year, as well as paid leave for various specific circumstances such as adoption and paternity/maternity leave (10 days and 70 days, respectively, with 100 percent pay).  In 2015, the mandatory retirement age for staff on board and future staff increased from age 62 to age 67. The normal retirement age for staff on board on December 31, 2015, remains age 62, and it increased in fiscal 2016 for staff hired after December 31, 2015, to age 65. The Bank offers a variety of options to help staff save and plan for retirement. The Staff Retirement Net Plan (SRP) has two components: (1) Defined Benefit Component, which is Bank-funded and based on 1 percent of the highest average of three years’ net annual salary for each year of plan participation, not to exceed 35 years, and (2) Cash Balance Component, wherein the Bank contributes 10 percent of net annual salary, and the staff member contributes a mandatory 5 percent of net annual salary and can voluntary increase contributions to as high as 11 percent of net annual salary. In addition to the SRP, Washington-based staff can voluntary participate in a 401(k) plan. Effective January 1, 2015, Country Office staff can elect to participate in the Country Office Savings Plan. 60  There are also services to support staff and their families, such as the opportunity for flexible working arrangements and the World Bank Family Network (WBFN), which provides assistance to staff, spouses, and domestic partners. The Bank’s benefits package also includes global mobility benefits, relocation, and resettlement policies. Short-term consultants and short-term temporaries, paid on a daily or hourly rate, are not eligible for leave, life insurance, or pension benefits. However, short-term consultants and short-term temporaries are covered under Worker’s Compensation, and have accidental death and dismemberment insurance of three times’ net annual salary, up to a maximum of $250,000, while on official Bank business travel. They are also eligible for limited medical expense coverage while on official Bank business for emergency medical care. The World Bank values the diversity, health, safety, and security of its staff members and consultants who work in Washington, DC, and in 136 countries worldwide. Many employees travel throughout the world, thus the World Bank views appropriate and accessible health care through international vendors, regional health advisors, and onsite clinic facilities as an important service component. The Health Services Department (HSD) serves the staff and management of the World Bank by protecting and promoting staff health wherever possible, taking into account individual health status, the working environment, and job demands. The World Bank Group is committed to creating a supportive workplace for people with disabilities that enables them to fulfill their job responsibilities while fully utilizing and developing their capacities. The Health Services (HS) Occupational Health Unit (OHU) is the lead unit in determining workplace accommodations for disability. Accommodations are applicable in the following situations:  Accommodations related to the employment of a person who is employed with a pre-established disability or develops a disability G4-DMA while in employment to enable the individual to perform the essential job function;  Accommodations to reduce the impact of work-related health risks to an individual in the workplace;  Accommodations requested in a return-to-work program after an absence from work due to medical causes; and  Accommodations associated with the findings of a fitness-for-duty evaluation. Reimbursement of accommodation costs can be facilitated through the Disability Accommodation Fund (DAF) managed by HS. The World Bank Occupational Health and Safety Committee, which reports to the Senior Management Team, is tasked with developing, implementing, and monitoring an occupational health and safety management system that applies to Bank employees worldwide. The committee oversees a global occupational health and safety management system aimed at managing health and safety risks, thereby enhancing the efficiency and sustainability of the Bank’s workforce and optimizing the capacity to accomplish its goals. 61 The World Bank’s Occupational Health and Safety Committee meets quarterly to Percentage of total address health and safety issues related to staff. The group is chaired by senior workforce represented management (HRDVP), and includes occupational health specialists, environmental in formal joint consultants, and senior management representatives from headquarters and Country management–worker Offices, Health Services and other parts of HR, Facilities Management, Security, Fire G4-LA5 health and safety Partial and Safety, Legal, Procurement, Corporate Responsibility, the Staff Association, and committees that help Budget and additional specialists and members as required. In addition, the Staff monitor and advise on Association has established a dedicated working group to address staff health issues. occupational health Most of the workforce is represented in the Occupational Health and Safety Committee and safety programs and the Staff Association. A third-party partner program (the REED Group) and HSD monitor Worker’s Compensation Claims as accident and report statistics. Data analysis and interpretation Type of injury and rates are limited to ad hoc reports, quarterly and annual aggregate REED Group reporting. of injury, occupational HSD uses an integrated medical database system to evaluate trends in medical and diseases, lost days, pharmacy insurance costs in comparison with disease profiles. The REED Group and G4-LA6 and absenteeism, and Health Services monitor the effectiveness of return-to-work programs and minimize Full total number of work- absenteeism through active participation in return-to-work management for staff. Data related fatalities, by analysis and interpretation are limited to ad hoc reports at present. region and by gender For the World Bank Group as a whole, the incidence rate in fiscal 2016 has been 0.58, the injury rate 0.34, and the illness rate 0.25. The lost-day rate has been 31.31. Data are not available by region or by gender. The World Bank values the diversity, health, safety, and security of its approximately 17,000 staff and consultants who work in Washington, DC, and in 136 countries worldwide. The aim of the Bank’s investment in staff learning is to ensure that learning is a strategic tool for the organization, so th at staff members, including from field offices, can learn continuously to remain cutting-edge to carry out the Bank’s mission. In January 2016, President Kim G4-DMA launched the Open Learning Campus (OLC) as a single destination to accelerate development solutions through learning for WBG staff, clients, and global partners. OLC offers a broad range of learning resources via Talks, Academy, and Connect. Funding support for external training or education is made possible based on annual discussions between staff and managers about individual yearly learning plans. For more information about OLC, see olc.worldbank.org. 62 In fiscal 2016, the World Bank delivered 1,930 learning activities (1,847 in fiscal 2015) for a total of 4,760 sessions and 59,588 days of learning. Forty percent of the training days were delivered either in Country Offices or location-neutral formats such as e-learning and webinars in fiscal 2016, the same as in fiscal 2015 and 7 percentage points lower than in fiscal 2014. Eighty-six percent of the salaried workforce attended at least one learning event in fiscal 2016, not including the corporate mandatory programs: 83 percent based in Country Offices and 88 percent at headquarters, in Washington, DC. These individuals attended the equivalent of 38.232 days of training, averaging 3.3 days per staff member, with 3.5 in days taken by Country Office-based staff and 3.2 days taken by HQ-based staff. This was a 3 percent decrease from the fiscal 2015 training days of 3.4 days per staff member. Investment in staff learning increased by 12 percent from fiscal 2015 levels and by 14 Average hours of percent from fiscal 2014 levels. Through the end of fiscal 2016, the World Bank invested training per year per $72.3 million in staff learning, of which 45 percent was spent on developing and G4-LA9 employee by gender, delivering learning activities, and 55 percent was spent to cover direct and indirect Full and by employee expenses for staff members to participate in learning (provided internally and/or from category external providers), including staff time and other costs. 2016 2015 2014 All Staff Days Hours Days Hours Days Hours Average training 3.3 26.4 3.4 27.2 3.4 27.2 Of which Female 3.4 27.2 3.5 28.0 3.7 29.6 Of which Male 3.2 25.6 3.2 25.6 3.1 24.8 Breakdown by Days Hours Days Hours Days Hours Support Staff average 2.4 19.2 2.7 21.6 3.1 24.8 Of which Female 2.8 22.4 3.3 26.4 3.8 30.4 Of which Male 1.6 12.8 1.5 12.0 1.4 11.2 Analyst Grade average 3.0 24.0 2.5 20.0 2.6 20.8 Of which Female 3.0 24.0 2.6 20.8 2.7 21.6 63 Of which Male 3.1 24.8 2.2 17.6 2.5 20.0 Specialist Grade average 3.9 31.2 3.8 30.4 4.0 32.0 Of which Female 4.0 32.0 3.8 30.4 4.1 32.8 Of which Male 3.9 31.2 3.9 31.2 3.9 31.2 Lead Grade average 2.8 22.4 3.3 26.4 2.3 18.4 Of which Female 3.2 25.6 3.4 27.2 2.6 20.8 Of which Male 2.5 20.0 3.3 26.4 2.1 16.8 Consultants average 2.3 18.4 3.3 26.4 3.4 27.2 Of which Female 3.0 24.0 3.4 27.2 3.6 28.8 Of which Male 1.5 12.0 3.1 24.8 3.3 26.4 Special Assignments (JPO, 4.6 36.8 4.9 39.2 6.1 48.8 JPA, SPAS) average Of which Female 5.0 40.0 5.4 43.2 6.7 53.6 Of which Male 4.2 33.6 4.3 34.4 5.5 44.0 In fiscal 2016, the Bank delivered 1,930 learning activities for a total of 4,760 sessions and 59,588 days of learning. Eighty-six percent of the Bank’s full-time staff attended at least one learning event during the year (not including the corporate mandatory programs), down 2 percent from fiscal 2015: 83 percent of staff based in Country Offices Programs for skills and 88 percent of those based at headquarters. management and An HR Transition Support Program, established in fiscal 2015 to assist staff whose jobs lifelong learning that may be at risk because of organizational changes and evolving business needs, support the continued G4-LA10 continues to provide services. The program team works in partnership with Bank units Full employability of responsible for pensions, tax issues, health services, and so on, and with contractors. In employees and assist fiscal 2016, the team met with staff individually or in groups to inform them about them in managing services available and to explain the Bank’s exit process. Job-search and career career endings coaching were also provided on a one-on-one basis. An internal website provided a central repository of information for staff. A monthly series of seminars was offered to staff on topics ranging from pension, tax, immigration, and benefits to resume writing, interviewing, networking, and job-search 64 strategy. The team also delivered briefings and workshops for managers to equip them with a good understanding of the Bank’s ending-employment process and to better prepare them for managing exits. At least once in a 12-month period, the manager or designated supervisor performs a review of the World Bank staff member (excludes short-term appointees). The evaluation covers the staff member’s performance, achievements, strengths, areas for improvement, and future development needs. The World Bank encourages ongoing feedback about the staff member’s work program; this takes place throughout the performance year. The annual conversation also touches on plans for the upcoming Percentage of performance cycle and training needs. The Performance Management Process is employees receiving outlined in the Staff Manual 5.03. regular performance In fiscal 2016, at the World Bank, 92 percent of fiscal 2015 end-year evaluations, 84 G4-LA11 and career Full percent of fiscal 2016 objectives, and 97 percent of fiscal 2016 mid-year evaluations development reviews, were completed on time. During the fiscal 2015 end-year evaluations, 92 percent of by gender and by women and 92 percent of men completed the regular performance evaluation process. employee category During the mid-year review, 87 percent of staff indicated they had a performance conversation with their supervisor; these comprised 87 percent of women and 87 percent of men. In fiscal 2015, about 70 percent of female and 70 percent of male active full-time staff completed regular performance and career-development conversations. The World Bank is committed to creating a workplace where everyone is valued, where differences are respected and celebrated, and where opportunity and equitable treatment is afforded to all. Ensuring diversity and inclusion are integrated into our daily work means creating a culture and practices that recognize, value, and harness what makes every individual unique in the broader sense, by acknowledging and respecting differences including nationality, gender, race, religion, ethnicity, age, sexual orientation/gender identity, G4-DMA disability, and educational background. Beyond the moral imperative, empowering others and respecting differences is much more than part of our institution’s core values: it makes good business sense. A diverse staff mirrors the diversity of the clients we serve and the partners we work alongside around the world, and that reflection is key to our credibility as an institution seeking equity and opportunity for all. In addition, it has been 65 demonstrated that a diverse staff stimulates the creativity and innovation our clients expect, drawn from the collective energy of individual experience, knowledge, and perspectives. World Bank staff are located in 136 countries and work in core finance, administrative, legal, economics, and technical specializations in more than 20 sectors. Staff contribute an impressive breadth and depth of professional expertise, academic background, industry, and international experience. The acknowledged diversity of our staff allows the Bank, the world’s leading development organization, to attract, retain, and grow the finest talent from the broadest span of different backgrounds possible. When we leverage the diversity and perspectives of all of our talent, the solutions that we offer—through our projects, programs, and assistance—are those that will meet our clients' development goals. The World Bank recognizes that meeting the demands and needs of its diverse client base more effectively means the Bank must consider a range of ideas and perspectives to find the best solution to development challenges. Achieving shared prosperity in a sustainable way is, by definition, about equal opportunity, empowerment, and economic and social inclusion. The Articles of Agreement for IBRD and IDA emphasize the need to “pay due regard to the importance of recruiting personnel on as wide a geographical basis as possible” when appointing Bank officers and staff, “subject to the paramount importance of securing the highest standards of efficiency and of technical competence.” This directive was reiterated in the 1983 Principles of Staff Employment, approved by the Executive Directors, t o set forth the broad policies according to which the President shall manage staff. In addition, the principles direct the Bank to “encourage diversity in staffing consistent with the nature and objectives of the Organizations.” In addition to reflecting the World Bank’s global n ature, the importance of staff diversity in enhancing the effectiveness and credibility of the Bank’s institutions has been underscored by ongoing reforms to increase the voice and participation of emerging markets and developing countries at the Bank. The World Bank manages these commitments and directives through an integrated approach that focuses on three pillars: advocacy (demonstrate leadership and build partnerships), accountability (set goals and measure outcomes), and inclusion (embed diversity and inclusion into talent processes and create an inclusive environment). The World Bank measures the effectiveness through Diversity and Inclusion Compacts, which establish both diversity and inclusion targets and identify specific actions to achieve the targets. The diversity targets include parity in management by gender and country part (Part I versus Part II), as well as by gender among full-time staff at professional grades (grade GF+) in non-managerial roles. An additional institutional target is 12.5 percent for Sub-Saharan African (SSA) and Caribbean (CR) nationals among full-time staff at professional grades (grade GF+). Inclusion targets are derived from staff response on the annual engagement survey, which includes a set of questions that comprise the indicators of the Inclusion Index. The World Bank Compact, which is signed by the President and the Senior Management Team, is cascaded through all vice-presidential units. Progress against the Compact targets and actions are reported monthly and reviewed quarterly. In addition to the Compacts, actions to improve staff perceptions on the engagement survey, including the Inclusion Index, are developed and tracked at the World Bank and vice-presidential unit level. 66 Within the World Bank Boards of Governors and Directors, representatives are determined by member countries. Of the 25 Executive Director Board members, four were women in fiscal 2016. For more information about the Boards, see http://worldbank.org/about. Composition of G4-LA12a Male [number] 21 governance bodies Percentage of individuals within the organization’s governance bodies 84% Female [number] 4 Percentage of individuals within the organization’s governance bodies 16% Nationals of Part II countries (roughly equivalent to developing countries) accounted for 44 percent of staff in management positions. Women accounted for 38 percent of staff in management positions, and for 44 percent of full-time staff at professional grades (grade GF+) in technical positions. SSA and CR nationals represent 12 percent of full-time staff at professional grades (grade GF+). Since 1998, nationality, gender, and race have been the dimensions of diversity for which the Bank has set and monitored quantitative targets. Nationality has been measured in the aggregate by Part I and II contributing member status (roughly equivalent to developed and Breakdown of employees developing countries, respectively), whereas SSA and CR nationality has served as the proxy per employee category for race, specifically for Black staff. according to gender, age 2016 2015 2014 G4-LA12b group, minority group Full-time staff membership, and other Number % of total Number % of total Number % of total indicators of diversity WB total full-time staff 11,421 11,933 12,328 Under 35 years old 1,838 16% 2,212 19% 2,512 20% Male 757 7% 908 8% 1,008 8% Female 1,081 9% 1,304 11% 1,504 12% 35-44 years old 3,894 34% 4,067 34% 4,141 34% Male 1,791 16% 1,907 16% 1,979 16% Female 2,103 18% 2,160 18% 2,162 18% 67 45-54 years old 3,836 34% 3,821 32% 3,854 31% Male 1,966 17% 1,960 16% 1,978 16% Female 1,870 16% 1,861 16% 1,876 15% 55+ years old 1,853 16% 1,833 15% 1,821 15% Male 1,042 9% 996 8% 989 8% Female 811 7% 837 7% 832 7% The World Bank Group considers the diversity of its staff a strategic business asset. Due to its privileges and immunities, the Bank Group provides staff comprehensive Internal Justice Services (IJS) to resolve and provide redress of workplace issues and grievances using informal and formal mechanisms. These services increase the level of collaboration among staff, provide spaces for the effective management of conflicts, and increase the Bank Group’s capacity to build and retain a globally representative workforce that has a voice and is valued by the organization. Most staff concerns are handled by one of the informal services of Internal Justice: Respectful Workplace Advisors (RWA) Program, Ombuds Services (OMB), and Mediation Services (MEF). Use of these mechanisms is voluntary, and staff also have direct access to the formal grievance mechanisms of Peer Review Services G4-DMA (PRS), the Office of Ethics and Business Conduct (EBC) Vice Presidency, and the Integrity (INT) Vice Presidency. EBC investigates allegations of staff misconduct, and INT investigates allegations of fraud and corruption committed by individuals and companies involved in Bank Group-sponsored projects, as well as allegations against internal staff. PRS considers whether the Bank Group’s actions are consistent with the staff member’s contract of employment and/or terms of appointment, including the pertinent Bank Group rules and policies. Once the internal formal grievance mechanisms are exhausted, staff may access the World Bank Administrative Tribunal (WBAT), which is an independent judicial forum of last resort for the resolution of cases submitted by staff alleging non-observance of their contracts of employment or terms of appointment. WBAT decisions are final and binding. During fiscal year 2016, there was a decrease in the number of staff using the Internal Justice Number of grievances Services (IJS), specifically in the informal services provided by the Respectful Workplace about labor practices Advisors (RWA) Program, Ombuds Services (OMB), and Mediation Services (MEF). The G4-LA16 filed, addressed, and combined caseload of the informal and formal core services declined to 1,503 opened cases Full resolved through formal from 1,675 cases reported during fiscal 2015. During fiscal 2016, the only office that had an grievance mechanisms increase in opened cases was Peer Review Services (PRS), which grew from 54 to 102 cases. (The increase in the number of Peer Review cases was due in part to a mass filing by over 40 68 staff.) The RWA Program decreased from 678 to 583 opened cases. OMB saw a decrease from 775 to 702 opened cases. MEF cases decreased from 168 to 116 opened cases. The other formal mechanisms reported a decrease in opened cases. The WBAT recorded a decrease from 31 to 24 opened cases, as did the Office of Ethics and Business Conduct (EBC) Vice Presidency, with a decrease from 297 to 229 opened cases, and the Integrity (INT) Vice Presidency, from 26 to 20 opened cases. MEF closed 123 cases, PRS closed 105 cases, WBAT closed 27 cases, EBC closed 249 cases, and INT closed 22 cases, all in fiscal 2016. IJS and Related 2016 2015 2014 Services Opened Closed Opened Closed Opened Closed Total 1,776 2,029 1,717 Respectful Workplace 583 678 604 Advisors Ombuds Services 702 775 625 Mediation Services 116 123 168 166 143 140 Peer Review Services 102 105 54 49 50 49 Administrative Tribunal 24 27 31 24 23 20 Ethics1 229 249 297 286 251 233 Integrity2 20 22 26 27 21 23 1EBC statistics record only investigative cases, not guidance provided in areas such as conflicts of interest. 2INT statistics reflect only internal World Bank Group staff cases. 69