DFC works to ensure projects produce positive developmental impacts, apply best practices with respect to environmental and social safeguards, and respect human rights, including worker rights.

Development Policy

DFC evaluates every project using its performance measurement tool, Impact Quotient (IQ) to measure, monitor, and evaluate its developmental impact around the world across three main areas: 

  • Growth includes contribution to GDP through improved infrastructure and the generation of local income, fiscal benefits to the local economy, and support for direct and indirect job creation
  • Innovation includes the strengthening of markets, innovation in financial structures and business models that mobilize private capital, and knowledge or technology transfer
  • Inclusion includes benefits to marginalized populations such as women or people living in rural areas, small and medium enterprises, and underdeveloped geographies  

Environmental and Social Policy and Procedures

The guiding environmental and social policies and procedures are based in large part on environmental and social impact assessment procedures applied by organizations such as the World Bank Group, the European Bank for Reconstruction and Development, the Inter-American Development Bank, and the U.S. Export Import Bank, among others. 

Projects that are likely to have significant adverse environmental or social impacts that are sensitive, diverse, or unprecedented in the absence of mitigation measures are disclosed to the public for a comment period of 60 days. The environmental and social impact assessments are disclosed to the public on DFC's website. DFC works in consultation with the U.S. Department of State as part of DFC’s consideration for human rights risks.

DFC’s business lines work closely with the Office of Development Policy to determine a project’s eligibility for DFC support. Each potential project is subject to a full policy review. Thorough, accurate, and complete information in the application and supplemental materials, such as a business plan, help expedite DFC’s project review.

If additional project information is needed from potential clients to clarify issues or fill information gaps to support a project review, the Office of Development Policy works with the DFC business lines to obtain the necessary information. DFC support of a project may be conditioned upon specific contractual covenants, to ensure that the project will operate in compliance with the DFC policy requirements.