Circumstances Requiring Free, Prior and Informed Consent (FPIC) (IFC Performance Standard 7)is an indicator of
This indicator relates to an organisation's procedures on Circumstances Requiring Free, Prior and Informed Consent (FPIC) and is a component of IFC Performance Standard 7 (Indigenous Peoples). The organisation must take substantiate and document the ties that indigenous peoples have with their lands and related natural resources. Where adverse impacts to indigenous peoples will occur, the organisation must: "? Document efforts to avoid and otherwise minimize the area of land proposed for the project; ? Document efforts to avoid and otherwise minimize impacts on natural resources and natural areas of importance9 to Indigenous People; ? Identify and review all property interests and traditional resource uses prior to purchasing or leasing land; ? Assess and document the Affected Communities of Indigenous Peoples' resource use without prejudicing any Indigenous Peoples' land claim.10 The assessment of land and natural resource use should be gender inclusive and specifically consider women's role in the management and use of these resources; ? Ensure that Affected Communities of Indigenous Peoples are informed of their land rights under national law, including any national law recognizing customary use rights; and ? Offer Affected Communities of Indigenous Peoples compensation and due process in the case of commercial development of their land and natural resources, together with culturally appropriate sustainable development opportunities, including: - Providing land-based compensation or compensation-in-kind in lieu of cash compensation where feasible.11 - Ensuring continued access to natural resources, identifying the equivalent replacement resources, or, as a last option, providing compensation and identifying alternative livelihoods if project development results in the loss of access to and the loss of natural resources independent of project land acquisition. - Ensuring fair and equitable sharing of benefits associated with project usage of the resources where the client intends to utilize natural resources that are central to the identity and livelihood of Affected Communities of Indigenous People and their usage thereof exacerbates livelihood risk. - Providing Affected Communities of Indigenous Peoples with access, usage, and transit on land it is developing subject to overriding health, safety, and security considerations". IFC Performance Standard 7 involves identification through an environmental and social risks and impacts assessment process, all communities of indigenous peoples within a project area who may be affected, and the extent to which they are likely to be affected. This must also take into account impacts on the environment. Organisations must aim to avoid these impacts wherever possible in a culturally appropriate manner. Other Performance Standards may also be applicable to a project. The Performance Standards are required for clients of IFC, but may also be applied by other organisations to manage their social and environmental management practices. For more information on the IFC Performance Standards see: http://www.ifc.org/wps/wcm/connect/c8f524004a73daeca09afdf998895a12/IFC_Performance_Standards.pdf?MOD=AJPERES. This indicator is taken from Performance Standard 7 of the International Finance Corporation's Sustainability Framework. Performance Standard 7: Indigenous Peoples is part of IFC's wider strategy of promoting sustainable development and reducing financial risk. Performance Standards 2 through 8 establish objectives and requirements to avoid, minimise, and where residual impacts remain, to compensate/offset for risks and impacts to workers, Affected Communities, and the environment. While all relevant environmental and social risks and potential impacts should be considered as part of the assessment, Performance Standards 2 through 8 describe potential environmental and social risks and impacts that require particular attention. Where environmental or social risks and impacts are identified, the client is required to manage them through its Environmental and Social management System (ESMS) consistent with Performance Standard 1. For more information on the IFC Performance Standards see: http://www.ifc.org/wps/wcm/connect/c8f524004a73daeca09afdf998895a12/IFC_Performance_Standards.pdf?MOD=AJPERES. Assessment of whether this has been implemented/addressed. IFC auditing process.