IFC warns social and environmental risks can increase project financing costs

The International Finance Corporation (IFC), a member of the World Bank Group, has warned that deficiencies in social and environmental management can increase the cost of credit and hinder access to international resources for projects. During the GESS 2026 meeting, Ivana Fernandes Duarte, the IFC country director, stated that social and environmental quality is a critical component of the due diligence process used to determine investment decisions and interest rates.

Fernandes Duarte emphasized that social and environmental preparation must be integrated from the earliest stages of a project rather than being added later. The IFC evaluates factors such as early dialogue with communities, coordination with local governments, and the capacity of a territory to sustain agreements. Projects with significant deficiencies in these areas may face less competitive financing conditions or be unable to secure funding entirely.

In a related discussion at the Arquitectura Reputacional 2026 forum, experts highlighted how corporate reputation and governance act as strategic assets. Christian Blank, General Manager of Prensa Libre, noted that reputation is a responsibility of leadership and organizational culture, affecting trust among stakeholders. Additionally, Catalina Rojas from BID Invest explained that integrity and corporate governance are key components analyzed during institutional investment processes.