2010 corporate environmentaland social responsibility (csr) report

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Sustainability Recyc cle Transpa ootprint Reduce Greening E-Wa Water nsibility eness Awareness Reuse t-Zero Emissions Energy print net 2010 Corporate Environmental and Social Responsibility (CSR) Report Inter-American Development Bank Sustainability Recycle Recycle Transparency Footprint Reduce Greening E-Waste Water Responsibility Awareness Awareness Reuse Net-Zero Emissions Energy Footprint Planet

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SCOPE OF THIS REPORT: This report describes the Inter-American Development Bank’s Corporate Environmental and Social Responsibility activities at Headquarters, Country Offices, and the Special Offices in Europe and Asia for calendar year 2010. The report also provides historical information where appropriate. This report can be found online

TRANSCRIPT

Page 1: 2010 Corporate Environmentaland Social Responsibility (CSR) Report

Susta

inability

Recycle

Recycle TransparencyFo

otprint Reduce

GreeningE-Waste

WaterResponsibilit

y

Awareness

AwarenessReuse

Net-Z

ero Em

ission

sEnergyFootprint

Planet

2010 Corporate Environmental and Social Responsibility(CSR) Report

Inter-American Development Bank

Susta

inability

Recycle

Recycle Transparency

Footprint Reduce

GreeningE-Waste

WaterResponsibilit

y

Awareness

AwarenessReuse

Net-Z

ero Em

ission

sEnergyFootprint

Planet

Page 2: 2010 Corporate Environmentaland Social Responsibility (CSR) Report

Susta

inability

Recycle

Recycle Transparency

Footprint Reduce

GreeningE-Waste

WaterResponsibilit

y

AwarenessAw

arenessReuse

Net-Z

ero Em

ission

sEnergyFootprint

Planet

SCOPE OF THIS REPORT: This report describes the Inter-American Development Bank’s Corporate Environmental and Social Responsibility activities at Headquarters, Country Offices, and the Special Offices in Europe and Asia for calendar year 2010. The report also provides historical information where appropriate. This report can be found online at: http://www.iadb.org/CSRAnnualReport

Page 3: 2010 Corporate Environmentaland Social Responsibility (CSR) Report

Chapter 1: Introduction Chapter 2: Institutional GHG Inventory and Mitigation

Chapter 3: Energy, Waste, and Water at Headquarters

Chapter 4: SocialResponsibility

Chapter 5: Staff Awareness

1

Table of Contents

Letter to Readers ................................................................................ 2

Chapter 1: Introduction ......................................................................... 3

Chapter 2: Institutional GHG Inventory and Mitigation ............................ 4 Calculating GHG Emissions ................................................... 4 Reducing GHG Emissions...................................................... 5 Offsetting GHG Emissions ..................................................... 9

Chapter 3: Energy, Waste, and Water at Headquarters ............................ 10 Energy Consumption and Renewable Energy Certificates (RECs) 10 Waste, Composting, and Recycling ....................................... 11 Water Consumption ............................................................ 13

Chapter 4: Social Responsibility .......................................................... 14 Country Office Supplier Diversity Initiative ............................ 14 Social Benefits of Carbon Offsets ......................................... 15 Green Purchasing ............................................................... 15 Chapter 5: Staff Awareness ................................................................. 16 Earth Day Celebration with BIDKids ..................................... 16 Bike to Work Day ................................................................ 16 Mi Casa Verde .................................................................... 17 World Environment Day ....................................................... 17 Outstanding Volunteers ....................................................... 18

2010 Corporate Environmental and Social Responsibility (CSR) Report

Inter-American Development Bank

Page 4: 2010 Corporate Environmentaland Social Responsibility (CSR) Report

Chapter 1: Introduction Chapter 2: Institutional GHG Inventory and Mitigation

Chapter 3: Energy, Waste, and Water at Headquarters

Chapter 4: SocialResponsibility

Chapter 5: Staff Awareness

2

Letter to Readers

The Inter-American Development Bank (IDB or the Bank) strives to provide leadership in advancing socially and environmentally responsible development in Latin America and the Caribbean and has recently taken a number of steps to ensure that its internal operations are consistent with this goal. The Bank’s efforts to improve the environmental footprint of its internal operations and to ensure a positive social impact through the Corporate Environmental and Social Responsibility (CSR) Program are described in this report.

A key aspect of the CSR Program mission is managing the Bank’s institutional environmental footprint. CSR tracks the Bank’s primary greenhouse gas (GHG) emissions which arise from energy consumption, mission travel, and commuting. Water consumption and waste generation are also institutional impacts. By collecting the applicable data for Headquarters and all field facilities, CSR measures, tracks and reports on the Bank’s environmental footprint to better understand and identify ways to reduce it.

The IDB also takes the social ramifications of its actions seriously and is committed to fostering diverse, healthy communities throughout Latin America and the Caribbean. In support of this commitment, the CSR Program is instituting a Supplier Diversity program in the Bank’s Country Offices and the Special Offices in Europe and Asia (COFs) to encourage the conduct of business with firms owned by and/or employing traditionally excluded groups. The Bank also impacts social benefits in Latin America and the Caribbean through the purchase of carbon offsets which invest in renewable energy and other energy efficiency projects in the region, providing ancillary benefits to communities in addition to removing GHG emissions from the environment.

Everyone in the IDB community has a part in addressing the social and environmental challenges the Bank faces. Without the enthusiastic support of Bank staff, the CSR Program could not achieve its goal of making the Bank a more sustainable institution. By engaging employees through a variety of outreach methods, the CSR Program is working to set an example of stewardship for institutions, governmental organizations, and businesses in Latin America and the Caribbean. We want to express our thanks to everyone who has participated in CSR initiatives for making the Bank a better place to work!

We are pleased to present the Bank’s Second Annual CSR Report. As part of our duty to Bank staff and member countries, we will continue to identify, evaluate, and implement solutions that make the Bank’s internal operations more sustainable. As we build upon previous successes, we will communicate our progress in this report and through our website.

John R. Hauge, General Manager Roger L. Ball, Division ChiefBudget & Administrative Services Department Administrative Services & Corporate Procurement Division

The Mission of the Bank’s CSR Program is to promote environmental and social responsibility within the Bank community by:

• Aligningpractices in all aspects of day-to-day operations with the Bank’s overall goals and objectives

• Managingandreporting on the Bank’s institutional environmental footprint

• Providingongoing education and awareness activities

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Chapter 1: Introduction Chapter 2: Institutional GHG Inventory and Mitigation

Chapter 3: Energy, Waste, and Water at Headquarters

Chapter 4: SocialResponsibility

Chapter 5: Staff Awareness

3

The IDB was established in 1959 to spur social and economic development in Latin America and the Caribbean, and it is the primary source of multilateral funding in the region. The Bank provides grants and loans for poverty reduction and economic development projects and, with its triple-A credit rating, bor-rows money at competitive rates in inter-national markets and lends it to clients in the Bank’s 26 borrowing countries.

The IDB provides research, advice, and technical assistance to support key initiatives of the Bank in areas such as agriculture, education, microfinance, gender equality, and productivity. The Bank is also active on issues that cross national boundaries, including trade, immigration patterns, and infrastructure.

IDB-funded projects are formulated with the intent of fostering lasting environmental, social, and economic benefits. By considering these facets of sustainable development, the Bank is helping countries in Latin America and the Caribbean achieve lasting poverty reduction and economic development through the promotion of natural and social capital. More information about sustainability in the Bank’s lending practices can be found in the 2010 Sustainability Review.

Recognizing that it must make its own internal operations more sustainable in order to “walk the talk,” the IDB formed a multi-departmental “Greening the Bank” Task Force in 2006 to identify and assess opportunities. In 2009, the Budget and Administrative Services Department (BDA) was given responsibility for the mandate of this Task Force and expansion of its mission, creating the CSR Program in response. The CSR Program is well positioned within BDA, as this Department manages administrative services, corporate procurement, real estate leasing and purchases, air travel, printing services, general maintenance, events management, and food services. The nature and scope of BDA’s responsibilities made it a natural fit to house the CSR Program.

The objectives of the CSR Program are to reduce the environmental and social impacts of the Bank’s internal operations at its facilities, to promote social and environmental awareness in the workplace, and to help staff become aware of the impact of their actions.

Chapter 1: Introduction

Recognizing that it must make its own internal operations more sustainable in order to “walk the talk,” the IDB formed a multi-departmental “Greening the Bank” Task Force in 2006 to identify and assess opportunities.

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Chapter 1: Introduction Chapter 2: Institutional GHG Inventory and Mitigation

Chapter 3: Energy, Waste, and Water at Headquarters

Chapter 4: SocialResponsibility

Chapter 5: Staff Awareness

4

The IDB is an established leader in financing climate change mitigation and adaptation projects in Latin America and the Caribbean, supporting the objectives of its Environmental and Safeguards (ESG) Compliance Policy and the Sustainable Energy and Climate Change Initiative (SECCI). The IDB is also “practicing what it preaches” by measuring and identifying ways to decrease its own carbon footprint. Through its actions on both fronts, the Bank demonstrates its leadership in addressing climate change in Latin America and the Caribbean.

CALCULATING GHG EMISSIONS

To calculate IDB’s carbon footprint, the CSR team conducts a comprehensive GHG inventory twice a year. The Bank’s GHG inventory includes all GHG emissions generated at Bank facilities and through business and annual meeting travel. This inventory includes “Scope 1 emissions” which come from sources directly controlled by the Bank, such as IDB-owned vehicles and the operation of heating and cooling equipment; “Scope 2 emissions,” which include emissions from electric power the Bank purchases and consumes; and “Scope 3 emissions” including the emissions from business travel, hotel nights and commuting. The Bank’s GHG inventory measures GHG emissions in tons of carbon

dioxide equivalents (tCO2eq). The resulting number is referred to as the Bank’s carbon footprint. The GHG inventory is prepared based on The GHG Protocol®: A Corporate Accounting and Reporting Standard internationally accepted and developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). Through a collaborative process involving representatives from industry, government, and non-governmental organizations (NGOs), WRI and WBCSD developed generally accepted accounting practices for measuring and reporting corporate greenhouse gas emissions. The WRI/WBCSD GHG Protocol Corporate Standard (GHG Protocol) consists of a corporate accounting and reporting standard and separate calculation tools.

The IDB GHG inventory covers all facilities where the Bank has “operational control,” meaning that it is capable of introducing and implementing operating policies. This covers Bank-owned and operated buildings, equipment, and vehicles. Initially, the GHG inventory covered only the Bank’s Headquarters and a facility in Ashburn, Virginia (HQs). During late 2007, the IDB undertook a Bank-wide carbon footprint data survey of all COFs, expanding its institutional GHG inventory in 2008.

Chapter 2: Institutional GHG Inventory and Mitigation

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Chapter 1: Introduction Chapter 2: Institutional GHG Inventory and Mitigation

Chapter 3: Energy, Waste, and Water at Headquarters

Chapter 4: SocialResponsibility

Chapter 5: Staff Awareness

5

Figure 1 reflects a reduction in Scope 1 emissions from heating and cooling equipment and from IDB-owned vehicles at HQs. The upswing in Scope 3 emissions from HQs and COFs business travel, illustrated in Figures 1 and 2, is due to the increased number of approved loans and non-reimbursable operations that expanded the Bank’s portfolio of projects in 2009 and 2010. This required more travel to and throughout the Region by staff members, resulting in a corresponding increase in the number of miles travelled over 2008 data (see Figures 3 and 4), which increased the Bank’s GHG emissions.

In 2009, the CSR Program began using a sustainability data management and communications software system to calculate the 2008 carbon footprint of the Bank’s facilities. This system enables end-users throughout the Bank to enter their environmental footprint data through a standard web-enabled interface, after which the data can be viewed and analyzed by the CSR team. The CSR team works regularly with Bank staff in HQs and COFs, and with the software provider to improve its inventory. For example, in 2010, the CSR Program completely redesigned the way it collects Bank-owned vehicle data to make the process more intuitive, increasing the quality of the data collected. The CSR team also continues to train end-users and works with them closely to ensure that the data collection process is as accurate and efficient as possible.

The increase in the 2010 COFs Scope 3 emissions is also a reflection of the progress in the accuracy of data collection (see Figure 2). For example, revised data includes COFs commuting (305 tCO2eq) and business travel emissions (820 tCO2eq) not previously reported. The remaining

increase is due to improved accuracy of reporting the number of air miles and hotel nights in some COFs (see Figure 4). Gathering travel data for COFs is a challenge since there is no system available that automatically records the miles travelled and hotel nights, and some travel agencies do not provide this information to the end-users.

REDUCING GHG EMISSIONS

The Bank recognizes that it is not enough to simply measure and report its GHG emissions. To truly promote sustainability, the Bank must also take action to reduce emissions.

Country Offices Carbon Competition

Each year, all COFs are invited to participate in the annual Country Carbon Competition, through which each COF may submit a proposal to win a grant of up to $10,000 to implement carbon reducing technologies. A technical evaluation panel including members from CSR, Facilities Management and Security Section (FMS), and SECCI had the difficult job of selecting the three 2010 winners, given the variety, quality, and innovation the proposals demonstrated, which were scored on six key criteria including innovation, sustainability, potential to reduce negative environmental impacts, return on investment, ease of implementation and replicability. El Salvador, Costa Rica and Trinidad and Tobago were selected as the winners for the following projects:

Trinidad and Tobago will perform an energy audit to identify opportunities for efficiency upgrades and will install a water meter and waterless urinals.

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Chapter 1: Introduction Chapter 2: Institutional GHG Inventory and Mitigation

Chapter 3: Energy, Waste, and Water at Headquarters

Chapter 4: SocialResponsibility

Chapter 5: Staff Awareness

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FIGURE 1: HQs GHG INVENTORY (2008 – 2010)

0

3000

6000

9000

12000

201020092008

Optional EmissionsIndirect EmissionsDirect Emissions

18000

19000

20000

21000

22000

201020092008

Annual tCO2eq

tCO2eq by sources

19

,96

1

21

,07

4

21

,30

2

11

,69

6

8,0

07

25

8

11

,35

6

9,5

24

19

5

10

,26

4

10

,85

4

18

4

1. Revised data to correct diesel emissions2. Revised data to include HQs Bank vehicles not previously reported

0

1000

2000

3000

4000

201020092008

Scope 3Scope 2Scope 1

0

2000

4000

6000

201020092008

Annual tCO2eq

tCO2eq by sources

4,2

57

3,8

10 6,3

35

1,9

02

2,0

00

35

51

1,9

27

1,5

78

30

52

2,0

32

3,9

87

31

6

FIGURE 2: COFs GHG INVENTORY (2008 – 2010)

Scope 1

Scope 2

Scope 3

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Costa Rica proposes to install a recycling center to reduce the amount of waste going to the landfill, to install bicycle racks to make it easier for staff to bike to work, to create a carpooling program and to use environmentally friendly cleaning products.

El Salvador plans to install low flow toilets and sinks in common restrooms, to set up a recycling center, and to develop an outreach and awareness program for their staff, along with the implementation of several energy saving practices.

The Bank’s Travel Footprint

At HQs, the number of miles associated with official business travel is tracked by the General Services and Travel Section (GST), enabling the CSR team to calculate the resulting carbon impact. GST has made a number of efforts to

educate Bank staff about the impact of their travel emissions, including:

1. Placing a link on all itineraries to “TerraPass,” a carbon calculator that helps Bank travelers calculate their own climate impact, enabling them to personally offset their emissions, if desired;

2. Recommending train travel over air travel when a legitimate alternative, since rail travel is 17% more efficient;

3. Recommending video conferencing instead of travel for business activities for which it is appropriate;

4. Noting hotels that employ green practices on the Bank’s Travel Community Portal; and

5. Placing links on the Travel Portal to direct staff to the “Greening the IDB” Web page and Green Travel Tips.

2010

2009

2008 17,908

19,441

17,175

2010

2009

2008 34,112

41,111

42,456

Total Number of Hotel Nights

Total Air Miles (in thousands)

FIGURE 3: HQs TRAVEL DATA (2008 – 2010)

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Chapter 4: SocialResponsibility

Chapter 5: Staff Awareness

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2010

2009

2008 10,191

7,903

16,062

2010

2009

2008 6,223

7,076

15,294

Total Number of Hotel Nights

Total Air Miles (in thousands)

FIGURE 4: COFs TRAVEL DATA (2008 – 2010)

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OFFSETTING GHG EMISSIONS

The IDB broke ground in 2006 at its Annual Meeting of the Board of Governors when it became the first Multilateral Development Bank (MDB) to execute a carbon neutral meeting by purchasing verified emission reductions (VERs), also known as carbon offsets, to offset all unavoidable GHG emissions generated by the meeting and its activities. The Bank expanded this initiative by going carbon neutral in HQs in 2007, and increased its commitment in 2008 to include COFs.

When purchasing carbon offsets, the Bank only invests in projects that reduce GHG emissions in Latin America and the Caribbean. The CSR team forms an evaluation panel comprised of experienced Bank staff to select projects to invest in based on how well they meet the following key accounting principles:

Real: the quantified GHG reductions must present actual emission reductions that have already occurred;

Additional: the GHG reductions must be surplus to regulation and beyond the “business as usual” scenario based on a performance standard methodology;

Permanent: the GHG reductions must be permanent or have guarantees to ensure that any losses are replaced in the future; and

Verifiable: the GHG reductions must result from projects whose performance can be readily and accurately quantified, monitored, and verified.

The evaluation panel also requires that the project offer ancillary social, health, and local environmental benefits in addition to the environmental benefit of emitting less GHG.

In 2010 the Bank invested in landfill gas projects in Peru and Mexico. These projects both incorporate a landfill gas collection and flaring system to reduce emissions. During these projects’ second phases, the gas will be used to create energy for the local electricity grids.

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Chapter 4: SocialResponsibility

Chapter 5: Staff Awareness

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Every workplace consumes energy and other natural resources and generates waste. The CSR Program is working to track this consumption and partners with FMS and GST to implement technologies that will reduce the use of natural resources. A comprehensive recycling program also helps reduce the amount of waste the Bank generates, thereby placing less pressure on landfills and natural resources.

ENERGY CONSUMPTION AND RENEWABLE ENERGY CERTIFICATES (RECS)

In February 2010, the Bank contracted with a firm to perform an extensive facility condition and energy audit of the HQs. The audit served as the basis for the Facility Improvement Program (FIP), a 3-year, $12m capital project, the first year of which was approved by the Board of Executive Directors in 2010. Equipment slated for replacement through the FIP includes the building management system, central air conditioning system, steam generators, electrical transformers and other HVAC and kitchen equipment.

When completed, the FIP should reduce the Bank’s electricity consumption at HQs by approximately 13% (see Table 1 for current consumption) and its carbon footprint by approximately 7%.

Also in 2010, the IDB hired a consulting firm to assist the Bank with the Leadership in Energy and Environmental Design for Existing Buildings: Operations and Maintenance LEED™ EBOM certification process for HQs. The LEED™ EBOM Rating System helps building owners and operators measure operations, improvements and maintenance on a consistent scale, with the goal of maximizing operational efficiency while minimizing environmental impacts. The LEED™ EBOM certification addresses whole-building cleaning and maintenance issues (including chemical use), recycling programs, exterior maintenance programs, and systems upgrades. This project was in development throughout the year with the required performance period beginning on September 1, 2010. The application for the LEED™ EBOM certification is expected to be submitted for review and certification in 2011. In addition, FMS will help one COF pursue the LEED™ EBOM certification in 2011.

Chapter 3: Energy, Waste and Water at Headquarters

Table 1: HQs Annual Electricity and Natural Gas Consumption (2008 – 2010)

2008 2009 2010

Electricity (MWh) 22,510* 21,864 21,124

Natural Gas (ccf) 29,751 27,725 27,754 * Revised data includes December 2008 electricity consumption for 1330 New York Ave. building.

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ENERGY STAR Partnership

In 2007, the IDB joined the U.S. Environmental Protection Agency (EPA) ENERGY STAR Partnership Program, making commitments to measure, benchmark, and improve building energy efficiency and reduce GHG emissions. The 2009 and 2010 ENERGY STAR scores of 92 and 91, respectively, for the 1300 New York Ave. building placed the Bank among the leaders in comparable organizations in the downtown Washington, D.C. area.

The Green Power Partnership

The Bank joined the EPA’s Green Power Partnership (GPP) Program in 2007, and began to purchase renewable energy certificates (RECs) for 100% of its HQs annual electricity consumption. The purchase of RECs follows the Climate Leaders Greenhouse Gas Inventory Protocol Optional Module Methodology for Green Power and Renewable Energy Certificates. Each REC provides exclusive proof that 1 megawatt-hour (MWh) of renewable energy has been generated from an eligible source of renewable energy. In 2010, the Bank purchased 23,000 MWh, of electricity generated from a wind farm in Texas. The Bank’s green power purchases help reduce the environmental impacts of electricity use and support the development of new renewable generation capacity nationwide. The IDB has been recognized by the EPA GPP Program as a 100% Green Power Purchaser every year since 2008.

WASTE, COMPOSTING AND RECYCLING

The IDB has instituted several programs to reduce the cafeteria and office waste it generates. Paper recycling bins have been placed in all offices, and clearly marked recycling containers for glass, metal, and plastic have been placed in all pantries and the cafeteria. Additionally, special recycling bins have been installed to meet the needs at the Bank’s loading dock.

The CSR Program E-Waste campaign, which provides collection boxes in all pantries for the disposal of batteries, cords, and old cellular phones has been very well received.

In 2010, the Bank underwent a waste stream audit to better understand what is being recycled and what is being thrown away at HQs, as well as to ascertain if the potential exists to compost waste from the Bank’s cafeteria.

The results were promising, and GST is currently working with the CSR team to engage a service provider that can perform composting services. By implementing a composting program, the Bank could divert a good amount of the total waste weight into the composting stream, increasing the percentage of waste diverted from landfills, while also generating compost that can be used as fertilizer at a local farm.

In 2011, the Bank will also implement single stream recycling. The current recycling process requires individuals to separate paper from glass, metal, and

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plastic, while single stream recycling would enable all recycling items to go in the same container. By increasing simplicity and ease of use, single stream recycling should increase recycling rates at the Bank.

During 2010, the Bank began working with a new waste hauler and the change in data from 2009 to 2010, depicted in Table 2, reflects a new tracking and measuring methodology. The CSR team will be able to better analyze the waste and recycling data when the 2011 inventory is completed and will determine the effectiveness of the Bank’s recycling campaign.

For many years, the Bank has conducted a recycling program to eliminate outdated official records of the Bank. In 2010, the Records Management Section (REC) sent more than 2,850 cubic feet of paper to an offsite secure recycling facility. In

addition, to meet the Bank’s security and confidentiality requirements, a controlled, environmentally-friendly destruction process of records has been in place for several years.

Paper

Figure 5 shows a steady reduction in paper consumption from 89 metric tons in 2008 to 75 metric tons in 2009 as a result of the CSR awareness and education campaign. A Managed Print Services project was implemented in the second half of 2009 which also contributed to the further reduction of paper use. REC manages IDBDocs, the electronic document and records management system of the Bank. By promoting the use of electronic records, the Bank is reducing the amount of paper used in the daily business of the organization.

2010

2009

2008 89

75

71

FIGURE 5: HQs PAPER USE (METRIC TONS)

Table 2: HQs Annual Waste and Recycling

2008 2009 2010

Waste (tons) 412 425 516

Recycle (tons) 92 178 106

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This section also manages the e-Archives project to optimize document metadata for efficient document retrieval; to meet records management standards for retention, security and document disclosure; and to digitize the Bank’s paper historical records for access through IDBDocs and the IDB internal search engine, Zahorí. In addition, the IDBDocs individual databases were merged into a single database to improve access to Bank documents and records. Green Room

The Green Room, created in March 2009 to store surplus office supplies and equipment, is always open for Bank staff to take supplies such as toners, binders, folders, pens, and pads, for office use, and to donate accumulated unwanted items through the IDB Solidarity Program. The Solidarity Program donates to local nongovernmental organizations, schools, and businesses throughout the Greater Washington, D.C. Metropolitan Area. Donated/recycled items include hundreds of binders, toners, magazine holders, and hanging folders.

Reusable Mug and Reusable Water Bottle Campaign

The CSR Reusable Mug Campaign, launched in 2009, has eliminated all Styrofoam™ cups used at HQs, and replacing them with compostable paper cups. The CSR Program provided 2,400 16-ounce stainless steel mugs to all Bank staff, consultants, and contractors at HQs in an effort to reduce the consumption of disposable cups. This successful campaign allowed the Bank to phase out disposable cups from all pantries.

Compostable paper cups are only provided upon request.

As a 2010 initiative, the CSR Program also provided reusable water bottles to all Bank staff, consultants, and contractors at HQs. These bottles are free of Bisphenol A (BPA), which may be hazardous to human health, and they serve to raise awareness of the environmental impact of the millions of disposable plastic water bottles that enter the waste stream every day.

WATER CONSUMPTION

In 2010, FMS installed faucet aerators in all general-use pantries and restrooms to reduce the water flow rate from 2.2 gallons per minute (gpm) to 1.0 gpm. Assuming that the water run time for each faucet per work day is one hour, this replacement is estimated to save over 1 million gallons of water annually. The estimated total savings per year (including both the cost of water and sewerage treatment) is estimated to be approximately $9,000. In addition, initial planning for the two-year Restrooms Renovation Project is underway. This project will include replacing faucets and toilets at both the 1300 and 1350 New York Avenue buildings with new, water-saving fixtures.

In 2010, the amount of water needed for the Bank’s cooling towers, as shown in Table 3, increased due to the abnormally hot summer, which caused the total water consumption to increase despite the new water efficient fixtures.

Table 3: HQs Annual Water Consumption

2008 2009 2010

Water (thousands of gallons)

15,336 15,218 16,505

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COUNTRY OFFICE SUPPLIER DIVERSITY INITIATIVE

The Bank recognizes the importance of an inclusive culture and a diverse supply chain and is striving to encourage diversity in the workplace through its procurement practices. The Bank’s Corporate Procurement Policy states “that the Bank, through its corporate procurement practices, shall endeavor to integrate socially responsible suppliers, goods and services into its supply chain.” In addition, the Corporate Procurement Policy states that contracts shall be awarded to the bidder whose evaluated bid or proposal represents the “best value” to the Bank, regardless of their gender, ethnicity, or physical characteristics.

In November 2009, the Bank held a Conference on Leadership in Diversity which generated diversity initiative proposals. One of the ten winning proposals, addressed as a 2010 project, dealt with supplier diversity in all COFs.

Currently, the CSR Program is working with the Human Resources Department (HRD) and the Corporate Procurement Section (PRC) to gather data on the extent to which traditionally excluded groups are involved as owners or workers of companies under contract with COFs. CSR and PRC are developing an outreach program to train COF staff to encourage greater inclusivity in their supply chains.

Chapter 4: Social Responsibility

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SOCIAL BENEFITS OF CARBON OFFSETS

When analyzing carbon offset projects for investment, the CSR team chooses only high-quality projects that demonstrate verifiable climate benefits as well as social and environmental benefits that are a good fit with the Bank’s mission for the community and for the local environment where the project is located.

GREEN PURCHASING

PRC is committed to purchasing products that promote social and environmental sustainability.

To provide guidance to end-users and accountability in its purchasing practices, PRC established the Corporate Procurement Advisory Committee for Environmental and Social Responsibility Standards (ESRCP), which reviews and approves new standards for the use of

environmentally and socially sustainable products. To date, 23 product standards have been developed, and specifications for these have been incorporated into the scopes of work in the applicable contracts. Of the 23 standards, 18 have been fully implemented, two have been partially implemented and 3 are under consideration for implementation.

Sustainable products promote social and environmental benefits but also provide health benefits for Bank staff, consultants and contractors. For example, the unbleached paper napkins used in the Bank cafeteria are manufactured through a process that avoids the use of chlorine and chlorine derivatives in the bleaching processes. Organic food items also promote healthy choices, and green cleaning products improve indoor air quality by eliminating the release of volatile organic compounds and carcinogenic materials that many traditional cleaning materials contain.

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Without the willing, enthusiastic participation of Bank employees, the CSR Program would be unable to reach its full potential in making the Bank more sustainable. Therefore, the CSR Program has launched a number of engagement initiatives aimed at providing employees with ways to make a positive impact on the environment.

EARTH DAY CELEBRATION WITH BIDKIDS

The CSR team celebrated the 2010 Earth Day with BIDKids to teach our children the importance of taking care of the environment. The event began with the presentation of a wooden planter for the children to plant a variety of different organic herbs and flowers. The Bank’s Executive Vice President joined the celebration and helped with some of the planting. Then, led by musicians playing guitar and drums, the children’s Earth Day parade wound throughout the fifth floor so the children could show off their Earth Day theme costumes and signs. The celebration

ended in the cafeteria with a healthy lunch and more live music, and each child received a packet of seeds to plant at home as a memento of the day’s event.

The Chef from the Bank’s cafeteria picks organic herbs fresh from the BIDKids garden to use when preparing the cafeteria menu of the day, and CSR encourages Bank staff to pick BIDKids organic herbs to use in home cooking.

BIKE TO WORK DAY

The CSR Program publicized the Washington Area Bicycle Association’s (WABA) Bike to Work Day on May 21 to promote biking as a fun, healthy, environmentally friendly mode of commuting. The CSR team greeted bikers in the garage with 100% organic cotton t-shirts displaying the IDB and CSR logos, and also handed out coffee mugs. A number of bikers from the Bank also met up at pit stops set up by WABA throughout the city for food, drinks, and raffles.

Chapter 5: Staff Awareness

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Chapter 3: Energy, Waste, and Water at Headquarters

Chapter 4: SocialResponsibility

Chapter 5: Staff Awareness

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MI CASA VERDE

On October 27, 2010, the Bank hosted its second environmental awareness expo, “Mi Casa Verde” (“My Green Home”), giving Bank staff and guests the opportunity to meet government, private sector and Bank departmental exhibitors to share innovative environmental and health and safety best practices, tips, and resources. This year, the CSR team invited the Bank’s Information Technology Department (ITE) to present the features of the new COMUnity Internet Telephony system to promote the use of its voice and web conferencing capability to help reduce the Bank’s carbon footprint from business travel. The Expo was very well attended, and many booths offered prizes and themed hand-outs.

Environmental Scorecards

Leading up to Mi Casa Verde, the CSR Program distributed “Green Steps” scorecards. These scorecards contained five simple steps that everyone can take to make daily actions more environmentally friendly, such as turning off their computer monitors before leaving the office. Employees tracked their performance and turned in their cards at Mi Casa Verde, entering them in a raffle for an iPad.

WORLD ENVIRONMENT DAY

The CSR team invited all Bank staff to pledge to begin taking one new environmentally positive step each day when entering the 2010 World Environment Day (WED) Tree Raffle. One winner made the “Green Promise” to turn off his computer monitor every night, and the other winner pledged to unplug her Xbox when it is not in use. Both raffle winners were rewarded with new crape myrtle trees for their gardens.

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Chapter 1: Introduction Chapter 2: Institutional GHG Inventory and Mitigation

Chapter 3: Energy, Waste, and Water at Headquarters

Chapter 4: SocialResponsibility

Chapter 5: Staff Awareness

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OUTSTANDING VOLUNTEERS

The CSR team works to create a culture of sustainable thought and action throughout the institution, and relies on the creativity and contributions of its volunteer Champions to promulgate this mindset.

The CSR team congratulates the HQs Green Champions, Elizabeth Ann Nicoletti and Wadia Calcaneo Amar for their outstanding performance and contributions with sustainable creative ideas, and willingness to voluntarily make the Bank a better place to work.

On June 5, 2009, in celebration of WED, COF staff in Uruguay hosted an internal Ceramic Cup Competition to raise awareness of the impact that individual choices have on the environment. The Ceramic Cup Competition helped to reduce the consumption of plastic cups

by 95% and led to the creation of the “Green Team,” who voluntarily developed and implemented the following greening initiatives:

• Sending100%oftheofficepaperconsumed, after destruction, to an NGO that converts the paper into income for public schools;

• Savingpaperthroughuseofduplexprinter functions;

• Separatingandsendingallplasticbottles and batteries to a recycling facility;

• Installingoccupancysensorsinrestrooms and offices which helped to reduce energy use; and

• Collectingabout30,000sodacapsanddonated them to the NGO “Club de Leones” to help low income mothers with the medical treatments for their children.

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