The Equator Principles | A benchmark for the financial industry to manage social and environmental issues in project financing
HOME THE PRINCIPLES EP TRANSLATIONS FREQUENTLY ASKED QUESTIONS EP MANAGEMENT STRUCTURE BECOME AN ADOPTING INSTITUTION DISCLOSURE BASED ON EP 10
Equator News Coverage Environmental standards loom ever larger in banks' lending decisions, by Susanne Bergius, ENDS Report, December 2008German | English 60 Second Profile on the Equator Principles, Good Practice Newsletter from ICMM, December 2008Ecology Stamp on Project Finance, by Susanne Bergius, Handelsblatt, 16 July 2008 (in German) Banks increase their environmental requirements Promoting Greater Responsibility in Project Financing by Natasha Cappon, Canada, Spring, 2008 China to bring in green loan benchmark, 25 January, 2008 A Question of Principles, Infrastructure Magazine, by Kimberley Gaskin, June 2007 Citigroup to scale up its green spending,The Financial Times, 8 May 2007.Leaders challenge 'business as usual', Guardian, 6 November 2006Financial Sector ResponsibilityBuilding a better world (for investors and whales), The Banker, 3 July 2006Update on the Equator Principles - 2006 Revision, Allens Arthur Robinson, August 2006The Miami Herald July 31, 2006.Building sustainability into syndication, Project Finance - July/August 2006 For Citigroup, Greening Starts With ListeningFor people and planet, San Francisco Chronicle, 4 April 2006Conservation You Can Bank On (Christopher Wright) (PDF - 91k)'A New Environment', Legal Week 2 February 2006 (Paul Watchman and Charles July of Freshfields Bruckhaus Deringer) (PDF - 2572k)'Banks Business and Human Rights' (2006) 2 JIBFL 46 (Paul Watchman of Freshfields Bruckhaus Deringer) (PDF - 59k) Polluters Clean Up Act to Attract Lenders, The Moscow Times, 12 October 2005The Equator Principles - guidelines for responsible project financing, Focus, Allens Arthur Robinson, August 2005 (PDF - 122k)Corporate Green, Washington Post, 11 May 2005Taking The Earth Into Account, Time Europe, 9 May 2005Principles in Question, The Banker, March 2005 (PDF - 97k)Banking on the future, Euromoney Syndicated Lending Handbook 2005, December 2004 (PDF - 38k)A Matter of Principles, Global Finance, January 2005Principle Finance, Euromoney, October 2004Putting principles into practice, Environmental Finance, June 2004'Greening' of financial sector gathering speed, Financial Times, 4 June 2004"Equator - Risk and Sustainability," from Project Finance International, 2004 Yearbook. (PDF - 429k)NGOs Bring Bank Scrutiny Back on Track, Ethical Corporation Online, 2 May 2004Banks contest ban proposed for coal and oil extraction, Financial Times, 5 April 2004A Matter of Principal, Project Finance, 3 March 2004The Equator Principles: a milestone or just good PR?, Global Agenda, 26 January 2004 Mizuho To Adopt Environmental Standards In Project Financing, CNNfn, 26 October 2003 Dexia adhère aux "Equator principles", La Tribune, 22 September 2003 (in French) Western Banks Set Standards for Eco-Friendly Lending. Japanese Banks Far Behind. NGO Keeping Close Watch, Nikkei, 5 September 2003A point of principle, Global Finance, July 2003 Equator Principles — Why Indian Banks Too Should be Guided by Them, The Hindu, 25 July 2003 Project finance — Standards for Lending, Financial Mail, 25 July 2003Financiers must meet criteria, Business Day, 14 July 2003Banks agree new loan guidelines, Ethical Performance, July 2003Principled finance?, Project Finance, June 2003 Cover StoryBanks club together to turn their notes green, The Age, 22 June 2003Nikkei Financial Daily, 11 June 2003 (in Japanese - PDF) Banks' green pledge earns mixed response, swissinfo, 10 June 2003Greening the banks, The Economist, 7-13 June 2003Leading banks sign up to project finance principles, Environmental Finance, 6 June 2003Bancos adotam princípios de responsabilidade social, Valor Econômico, 5 June 2003 (in Portuguese)Zehn Banken werden zu Umweltschützern, Die Tageszeitung, 5 June 2003 (in German) Major Banks Endorse Equator Principles, The Peninsula, Qatar, 5 June 2003The 'Equator Principles' adopted by leading banks, The Times of India, 5 June 2003Westpac's principles, Australian Financial Review, 5 June 2003 Loan rules with an eye on nature, International Herald Tribune, 5 June 200310 global banks endorse socially responsible "Equator Principles", Agence France Presse, 5 June 2003"THE FLIP SIDE", CNN, 4 June 2003 (transcript) IFC Head's Remarks at Equator Principles Press Conference, 4 June 2003Banks sign up for responsible lending accord, Financial Times, 4 June 2003Banks Accept Environmental Rules, The Wall Street Journal, 4 June 2003Banks in drive for project principles, Financial Times, 9 April 2003Four banks adopt IFC agreement, Financial Times, 7 April 2003 Contact
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about the Equator Principles
Bancolombia S.A. adopts the Equator Principles
On Thursday, December 11, 2008, Bancolombia Group formalised its adoption of the Equator Principles, a
voluntary set of guidelines (based on the International Finance Corporation’s Safeguard Policies and
Performance Standards) in the financial industry to determine, assess and manage environmental and social
risks in project financing. Bancolombia, the largest bank in Colombia, is the first Colombian financial
institution to adopt the Equator Principles. The adoption of the Equator Principles is a key element of
Bancolombia Group’s corporate strategy for environmental risk management. There are currently 63 adopting
financial institutions from 25 countries. Bancolombia will make a formal assessment of the environmental and
social impact of all projects that are financed through the bank. Additionally, Bancolombia will strive to
promote environmental issues in Colombia from the financial system perspective.
Full press release in English (pdf – 184k)
Full press release in Spanish
Industrial Bank Co., Ltd adopts the Equator Principles
China, October 31, 2008 - Industrial Bank Co., Ltd (IB) is the first bank in China to announce the adoption of
Equator Principles, a voluntary set of guidelines in financial industry to determine, assess and manage environmental
and social risks in project financing. IB is ready to observe the requirements of Equator Principles, to set up
internal policies and procedures in compliance with Equator Principles, and to conduct due diligence research on social
and environmental issues in project financing.
Founded in August 1988, headquartered in Fuzhou City, Fujian Province, IB is one of the first batch of joint-stock
commercial banks. On February 5, 2007, IB was listed on Shanghai Stock Exchange (Stock Code: 601166) with total
registered capital of RMB 5 billion. Since its commencement, IB has committed itself to offering all-round,
top-quality, and high-efficiency financial services for clients by adhering to its managerial ideas that stress
“Developing Together, Growing Together” and “Service Starts with Sincerity”. According to the latest ranking
results of “Top 1000 World Banks” released by the British magazine, the Banker, in July 2007, IB was ranked 145th and
260th in terms of total assets and tier 1 capital respectively. And in the same issue, on the list of “Top 100 Chinese
Banks”, IB maintained both its No. 1 position in terms of average return on capital and No. 10 in terms of tier 1
capital and total assets respectively.
Full press release in English
BNP Paribas adopts the Equator Principles
France, 24 October 2008 — BNP Paribas has announced today that it is formally adopting the Equator Principles for its Project
Finance activity........ BNP Paribas is a global leader in Project Finance. The adoption of the Equator Principles is coherent
ith BNP Paribas' strong culture of thorough risk analysis and control, as environmental and social risk assessment practices
and procedures are already established for its Project Finance activity.
Full Press Release
Banco Itau announced as new Steering Committee Chair of the Equator Principles, 22 September 2008
Banco Itau Holding Financeira, a Brazilian financial institution, is one of the largest emerging markets banks in the world. It holds one of the leading market positions in Brazil, and it has achieved a substantial regional presence, with banks operating in Argentina, Chile, and Uruguay, as well as a bank in Europe, Banco Itau Europa, located in Portugal. Its wholesale and investment bank, Banco Itau BBA, is the leading Brazilian bank in those markets. There are also strategic offices in New York, London, Luxembourg, Shanghai, Hong-Kong, Tokyo, and the Bahamas. It was one of the first emerging markets banks to join Equator, and has since taken an active approach to its role as an EPFI, participating in Working Group discussions and Steering Committee meetings. It has also given special attention to the outreach efforts of the Equator Principles, exchanging and sharing its project finance experiences with Argentinean, Chilean, Uruguayan, and Chinese banks.
The Steering Committee believe Itau's commitment to Equator, contributing the wisdom of its representatives, and particularly their experience of implementing Equator in emerging markets, is evidence that the bank has the credentials to warrant full EPFI support.
Full text of Banco Itau Press Release:
(English,
Spanish
and
Portuguese)
Equator Principles Financial Institutions Meet in Washington D.C. for the Annual Equator Principles Meeting and IFC Community of Learning Events
WASHINGTON DC, 5-8 May 2008 — The Equator Principles Financial Institutions were pleased to join IFC's
Community of Learning, an event focussed on sharing lessons learned when implementing IFC's Performance Standards.
The event was also attended by a number of environmental representatives of Development Finance Institutions (DFIs)
from across the globe. On 6 May IFC hosted a dinner, where a presentation was given to mark the fifth anniversary of
the Equator Principles, led by Herman Mulder, formerly of ABN Amro. These events were followed by the Annual Meeting
of the Equator Principles Financial Institutions, held at the National Press Club. At the meeting Societe Generale
were voted on to the Steering Committee and an administration function for the Committee was appointed. The Group
also discussed the development of the Governance of the Principles.
Societe Generale's press release following their appointment to the Equator Principles Steering Committee:
French Version | English Version
DnB NOR adopts the Equator Principles
Oslo, 29 May 2008 — DnB NOR is proud to announce the adoption of the Equator Principles, a voluntary set of guidelines
for managing environmental and social issues in project finance.
In implementing the Equator Principles, DnB NOR confirms its commitment to sustainable development, and this complements
the Group's participation in initiatives such as the United Nations Global Compact, the United Nations Environmental
Programme – Financial Initiative (UNEP–FI), the Carbon Disclosure Project and the UN Principles for Responsible Investment.
The adoption of the Equator will be an important tool in further ensuring environmental and social risk management in future project finance.
Full text of the press release (pdf - 5k)
Equator Principles Celebrate Five Years of Positive Environmental Impact and Improved Business Practices
Washington, DC, May 8, 2008 — Sixty of the world's leading financial institutions today mark the fifth anniversary
of the Equator Principles (EPs), voluntary standards for financial institutions to manage environmental and social risk
in their project finance transactions.
Full text of the press release (doc - 37k)
KfW IPEX-Bank adopts Equator Principles
Frankfurt, 3 March 2008 — KfW IPEX-Bank adopted the Equator Principles as of
1 March 2008, committing itself to the globally-recognised benchmark for
the financial industry to manage social and environmental issues.
"As a leading export and project finance institution and as a 100%
subsidiary of KfW Bankengruppe we are aware of our particular social
responsibility from which we draw consequences for sustained action", said
Heinrich Heims, Speaker of the Board of Managing Directors of KfW
IPEX-Bank GmbH. "Adopting the Equator Principles is one more logical step
in our commitment to the principles of sustainable ecological and social
development."
Full text of the press release (pdf - 23k)
Financial Bank adopts Equator Principles
Lome, Togo February 18, 2008 — Financial BC is the first African bank coming
from three monetary areas (WAEMU/UEMOA, EMCCA/CEMAC and Guinea Conakry) to
adopt the Equator Principles, a voluntary set of environmental and social
guidelines for project financing and other businesses. The Group is not
only focused on big projects but also on daily business opportunities.
Financial BC is pleased to join leading financial institutions established
around the world in formally adopting these principles. Our direct
presence in Africa will assist international institutions to be a reliable
partner locally and ensure them we have the same social responsibility.
FINANCIAL Group has adapted the generic definition of sustainable
development to suit the needs of a financial institution. The goal is to
satisfy current development needs without compromising those of future
generations, based on a responsible approach to the role of banker, which
takes into account the interests of all our stakeholders: shareholders,
customers, employees and civil society.
Full text of the press release (pdf - 142k)
Translations of the Equator Principles
We invite you to view the Equator Principles in Chinese and French.
Japanese, Portuguese, Russian and Spanish translations are currently
being prepared and will be available on the website in the near future.
Please note that translations of the Principles are provided for the
convenience of stakeholders and the "official" version of record
remains that in English.
EP Translations
LLOYDS TSB ADOPTS EQUATOR PRINCIPLES FOR PROJECT FINANCE INITIATIVES
London, 31 January, 2008 — Lloyds TSB Group has today announced it has
adopted the Equator Principles (EP), a globally-recognised benchmark for
assessing and managing social and environmental risks in Project Finance.
Paul Turner, Head of Sustainable Development at Lloyds TSB, said: "This
is an important statement of our commitment and supports the way we do
business. Working with other businesses, we have a part to play bringing
about tangible change in respect of environmental and social issues that
impact our customers, our staff and society as a whole. Adopting these
principles is another step on the journey towards that goal."
Full text of the press release (doc - 31k)
The Banco de la Republica Oriental del Uruguay (Banco Republica) Adheres
to the Equator Principles
Since 3rd January 2008, the Banco Republica, main Uruguayan financial
institution, adheres to the Equator Principles (set of guidelines for
determining, assessing and managing social and environmental aspects of
investment projects).
By implementing these principles, the society in general, and the
companies in particular, will be benefited, reducing their operational
risks and increasing their competitivity and easy access to international
markets.
This way, the Banco Republica, bank with a history of more than 100 years,
enters into the group of main banks financing more than 95% of investment
projects - at global level, which have already adhered to the Equator
Principles.
Full text of the press release (pdf - 11k)
EPFI Meetings
AMSTERDAM and HAMBURG, 3-5 December 2007 — On 3 December
representatives from 25 EPFIs met to discuss the ongoing development of
the Equator Principles. The meeting was hosted by ING Group. The
discussions focussed on Equator Principle governance and the management
structure, reporting, and shared good practice. On 4 December the EPFIs
met with 15 NGOs at ABN Amro's headquarters. A pre-agreed agenda was
followed based on items of mutual interest, which included governance,
transparency, and grievance mechanisms at the project level. On 5
December EPFIs were pleased to be invited to meet 23 OECD Export Credit
Agencies in Hamburg, hosted by Euler Hermes. The meeting provided an
opportunity to better understand each others approach on transparency,
experience in implementing the IFC Performance Standards, and how to
further cooperation between the EPFIs and ECAs. The EPFIs also presented
their experience in implementing the Equator Principles. In each
instance, the meetings proved useful in furthering a better
understanding by all sides and facilitating future discussion.
EDC adopts Equator Principles
OTTAWA, October 25, 2007 — Export Development Canada (EDC) today announced
that it has become a signatory to the Equator Principles, an international
financial industry benchmark for assessing and managing social and
environmental risk in project financing.
"Adopting the Equator Principles reflects EDC's ongoing commitment to
conduct its international business in a socially and environmentally
responsible manner and confirms the strength of its existing corporate
social responsibility (CSR) policies," said Eric Siegel, President and CEO
of EDC.
Full text of the press release (pdf - 23k)
National Australia Bank adopts Equator Principles
MELBOURNE, 25 October 2007 — National Australia Bank (NAB), through its
institutional banking and capital markets division nabCapital, has agreed
to a global social and environmental benchmark for financing projects
greater than US$10 million by adopting the Equator Principles.
NAB joins other global banks from 21 countries adhering to the policies
set down by the World Bank and International Finance Corporation. The
Equator Principles are a set of globally recognised, voluntary guidelines
to assess and manage social and environmental project financing risk,
especially in emerging markets. NAB's Project Finance activities reside
within the nabCapital business.
John Hooper, CEO of nabCapital, said the bank's project finance credit
risk policies have been guided by the Equator Principles' requirements
for at least a decade.
"Irrespective of the value of the project financing work we undertake, we
apply the Equator Principles to be a responsible lender," he said. "The
adoption of the standard now formalises the rigour that NAB has applied
to all projects in developing countries."
Full text of the press release (pdf - 61k)
Societe Generale adopts the Equator Principles
PARIS, 3 September 2007 — Societe Generale Group is announcing that it has
adopted the Equator Principles, a voluntary set of guidelines for managing
environmental and social issues in project finance. Introduced in 2003
under the aegis of the World Bank and International Finance Corporation,
this initiative has been adopted by around fifty international banks.
Adopting the Equator Principles builds on the bank's tradition of risk
analysis and control applied to structured finance, in particular in
project finance where Societe Generale is a global leader. It marks the
completion of a major internal programme launched in 2004 to standardize
social and environmental analysis procedures (categorization,
computerization) and train all employees involved in project finance.
Full text of the press release (pdf - 43k)
BankMuscat Adopts the "Equator Principles". First Bank from across the
Middle East to take this 'environment-friendly' stand.
MUSCAT, 18 August 2007 — BankMuscat, the nation's leading bank, has adopted
the "Equator Principles", a set of globally recognized, voluntary
guidelines established to assess and manage social and environmental risk
in project financing, especially in the emerging markets. In adopting these
principles, BankMuscat has become the first bank from across the Middle
East region to adopt the Equator Principles. The Bank will also ensure that
the projects it finances are developed in a socially responsible manner and
reflect sound environmental management practices.
Full text of the press release (pdf - 34k)
CORPBANCA adopts Equator Principles
Santiago,Chile, 19 July 2007 — CORPBANCA (NYSE:BCA, Santiago:
CORPBANCA) has announced today the adoption of the Equator Principles, to
develop a policies and methodologies for addressing environmental and
social risks in project financing, in terms of having a common framework
and language in our internal policies, procedures and processes."
Full text of the press release (pdf - 611k)
EPFIs Meet After Nearly One Year of EPII Implementation
WASHINGTON, DC, 12-14 May 2007 — On May 14, 26 out of 51 EPFIs met to discuss
lessons learned and challenges related to EPII implementation. 6 recent
adopters attended the event and made a significant contribution to the
success of the meeting. EPFIs have been implementing the new Principles
for nearly one year following their revision and launch in London last
July. Bank of America hosted the day-long event in Washington, DC.
Issues related to EPFI governance, disclosure and transparency related to
Principle 10, and other items were discussed. This EPFI meeting was then
followed by a 2-day series of meetings at the International Finance
Corporation (IFC's) "Community of Learning" event which focused on
lessons learned from application of the IFC Performance Standards. EPFIs
interacted with and heard from IFC senior management and staff, and also
had the opportunity to interact with a number of environmental
representatives of Development Finance Institutions (DFIs) from across
the globe.
For the guidance note on reporting related to Principle 10 of the Equator
Principles, please see the attached document. (48k)
World Bank Group Environmental, Health, and Safety Guidelines Updated
As of April 30, 2007, new versions of the World Bank Group Environmental,
Health, and Safety Guidelines (known as the 'EHS Guidelines') are now in
use. They replace IFC Guidelines and World Bank Guidelines previously
published in Part III of the Pollution Prevention and Abatement Handbook
and on the IFC website. The new EHS Guidelines were developed as part of
a two and a half year review process, details of which are available on
the EHS Guidelines Update website.
For more details
please see the attached document. (pdf - 12k)
TD Bank Financial Group Adopts Equator Principles
TORONTO, 12 April 2007 — TD Bank Financial Group (TDBFG) announced it has
adopted the Equator Principles, a set of globally recognized, voluntary
guidelines established to assess and manage social and environmental risk
in project financing.
In adopting these principles, TDBFG strengthens its existing
environmental risk management and due diligence processes, ensuring that
the projects it finances are developed in a socially responsible manner
and reflect sound environmental management practices.
"TDBFG is pleased to join other leading financial institutions around the
world in formally adopting these principles," said Fred Tomczyk, Vice
Chair of Operations, TD Bank Financial Group.
Full text of the press release (pdf - 15k)
Nordea adopts Equator Principles
Copenhagen, 21 February 2007 —Nordea is the first Nordic bank to adopt the Equator Principles, a voluntary set of environmental and social
guidelines for project financing.
The Equator Principles is a financial services industry benchmark for
assessing and managing social and environmental risk in asset-based
project financing.
Nordea is now finalising the internal procedures to ensure that work
proceeds according to the guidelines in all applicable project finance
cases.
Full text of the press release (pdf - 23k)
CIFI adopts the Equator Principles
Arlington, VA, 6 April 2007 — 'Corporaci' Interamericana para el
Financiamiento de Infraestructura, S.A. (CIFI), a leading financial institution
providing structured financing and advisory services for infrastructure
projects in Latin America and the Caribbean, has announced its adoption of the
Equator Principles.
"CIFI embraces the concepts that underline the Equator Principles", said Roldan
Trujillo, CIFI's CEO. "We are delighted to join with so many outstanding
financial institutions in formally adopting these principles. Through its
adoption of these principles, CIFI ratifies its commitment to matters of
corporate responsibility, consistent with its continuous quest to align itself
with the needs of its customers, shareholders, employees and of the societies
in which it pursues its business.
Full text of the press release (pdf - 19k)
SEB adopts the Equator Principles
Stockholm, 3 April 2007 — SEB today becomes the first Nordic Bank to
formally adopt the Equator Principles on project financing. SEB views
this commitment as an important step in ensuring the application of sound
practice in terms of assessing and handling environmental and social
impacts when engaging in project financing transactions.
SEB is committed to act as an engaged and responsible corporate citizen.
By adopting these principles SEB is putting emphasis on sound practices
in the lending decisions where social or environmental impacts are
present. SEB regards adoption of the Equator Principles as a positive way
of reinforcing SEB's business approval processes.
Full text of the press release (pdf - 70k)
Banco Galicia adopts Equator Principles
Buenos Aires, 19 March 2007 — Banco Galicia (BG) today announced it has
adopted the Equator Principles, a system of guidelines for assessing social
and environmental risk based on standards set by the International Finance
Corporation (IFC), the World Bank's private sector lending arm.
The Equator Principles, of voluntary implementation, have been adopted by
numerous leading international banks. BG is pleased to have joined these
leading institutions as it has become the first entity in the Southern
Cone. Banco Galicia thus moves forward enhancing its Corporate Social
Responsibility Strategy announced in April 2006.
Full text of the press release (pdf - 95k)
"la Caixa" adopts Equator Principles for financial activities
Madrid, 19 March 2007 — "la Caixa", the third largest Spanish financial
group and the biggest European savings bank, has adopted the Equator
Principles, a set of guidelines designed to make operations such as
project finance adjust to certain social and environmental principles.
"By adhering to these principles, 'la Caixa' reasserts its growing
commitment to good corporate government, which is based on responsible
and transparent management, acting ethically, taking into account labor
relations and the environment, and contribution to the socioeconomic
development of the milieu", explains Isidro Fainé, CEO of "la Caixa".
Full text of the press release (38k)
MCC adopts the Revised Equator Principles
Rome, Italy, 5 February 2007 — MCC (Capitalia Banking Group), which had adopped the Equator Principles in July 2003, has now also adopted the
revised version that conditions its financial participation in project
finance operations upon very stringent social and environmental impact
requirements.
MCC is the leading Italian bank in Project Finance in the infrastructure
and energy sectors. It has more than doubled its disbursement volumes over
the last 2 years. By adopting the revised EP, MCC's confirms that its
commitment to social and environmental responsibility is an integral part
of a specialised, professional operating approach to Project Financing.
Link to the announcement (54k)
LeBoeuf, Lamb, Greene & MacRae publishes client briefing on Equator Principles.
London, January 2007 — LeBoeuf, Lamb, Greene & MacRae, a leading global
law firm, has published a client briefing on the Equator Principles. It
is written by Paul Q. Watchman and Tim Baines.
The client briefing gives an overview of the Equator Principles, and
highlights their background, prevalence and scope, but focuses on the
implementation requirements for EP2. It also sets out a summary of the
primary differences between Equator Principles 1 and Equator Principles 2.
For the full text of the briefing please see the attached PDF (860k)
ANZ adopts the Equator Principles
Sydney, Australia, 15 December 2006 — ANZ has monitored the progress of the Equator Principles since its inception in 2003 and we are pleased
that our policies and processes are now sufficiently advanced that we are
able to formally adopt the Equator Principles effective 15 December 2006.
To support our implementation of the Principles, we have developed our
own social and environment policies that are being applied across all of
our lending and investment decisions, including Project Finance
activities in developing countries which are the focus of the Equator
Principles.
Our objective is to go further with the intent of the Equator Principles
through the development of a whole-of-business approach including all
business relationships, products and geographies.
Full text of the Statement (815k)
JPMorgan Chase Re-adopts Equator Principles
New York, 4 December 2006 — JPMorgan Chase has re-adopted Equator
Principles, a set of internationally recognized, voluntary project
finance guidelines that establish social and environmental standards in
the banking industry. For JPMorgan Chase this is an extension of the
commitment it made in 2005 to adopt the Equator Principles as part of its
broader environmental commitment.
WACHOVIA ANNOUNCES COMPREHENSIVE STRATEGY
ADDRESSING ENVIRONMENTAL PROTECTION
Charlotte, NC, 26 October 2006 — Wachovia Corp. today announced a significant environmental
strategy including comprehensive commitments in the areas of forest protection and
climate change. The strategy encompasses several important initiatives, including a
commitment to a 10 percent reduction in Wachovia’s carbon dioxide emissions by 2010.
Wachovia also adopted the Equator Principles, which it will apply to global project
financing to mitigate social and environmental risk factors.
Full text of the Statement (35k)
E+Co Adopts Equator Principles
Bloomfield, New Jersey, 30 October 2006 — E+Co, the leading provider of services and capital to modern energy enterprises in developing
countries, continued its tradition of socially and environmentally
responsible business practices by joining 40 other international
financial institutions in adopting the Equator Principles.
"For more than ten years E+Co has embraced the concepts that underpin the
Equator Principles", said Phil LaRocco, E+Co Executive Director. "We are
pleased to join with so many fine financial institutions in formally
adopting these principles. Our mission is to empower energy enterprises.
Our developing country entrepreneurs establish sustainable enterprises to
improve the livelihoods of their local communities, in ways that are
sound from a business, societal and environmental perspective. The
Equator Principles are a natural step for them and for us."
Full text of the Statement (265k)
IFC Launches Lessons of Experience on BTC and Chad-Cameroon Pipeline Projects
Washington DC, 11 October 2006 — The International Finance
Corporation (IFC) today launched two new Lessons of Experience
publications on "The BTC Pipeline Project" and "External Monitoring of
the Chad-Cameroon Pipeline Project." The publications provide key
environmental and social lessons and good practices for the benefit of
staff, clients, and the wider private sector.
Full text of the press release (14k)
Scotiabank has re-adopted the Equator Principles
TORONTO, 25 September 2006 —“The Equator Principles have enabled Scotiabank to better assess, mitigate, document and monitor the potentially adverse social and environmental risks associated with financing projects,” said Brian Porter, Executive Vice-President and Chief Risk Officer. “We are fully committed to integrating the revised Equator Principles into policies and processes, including the establishment of reporting mechanisms and proper training.”
Full text of the press release (16k)
Caja Navarra adopts Equator Principles
PAMPLONA, 14 August 2006 —Caja Navarra has adopted the new Equator Principles, a more demanding version of the benchmark which aims to apply environmental and social criteria to project financing. The Equator Principles are a voluntary initiative promoted worldwide by the International Finance Corporation (IFC), a member of the World Bank group. By adopting the Principles, financial institutions undertake to finance only those projects whose environmental and social risk comply with the criteria.
Full text of the press release (35k)
HBOS adopts the Equator Principles
EDINBURGH, 15 August 2006 —Bank of Scotland announced the adoption of the Equator Principles. HBOS is the fortieth EPFI to join EP2.
HBOS has adopted the Equator Principles because:
We recognise that we have a responsibility to the environment and society, and will take positive steps to address the environmental and social impacts of our business operations
We seek to reduce our lending risks and also to ensure that projects to which we lend are managed responsibly
We are keen to participate in an initiative which has become the global industry-wide standard for environmental and social due diligence for project finance
In adopting the principles, we have undertaken to ensure that all applicable project finance proposals fall within the requirements of the principles. The process of establishing internal procedures to ensure sound implementation of the Equator Principles is already underway and in order to support us in this process, we have retained independent consultants to assist us with policy formulation, governance and procedures.
Full text of the Statement (pdf - 26k)
PRESS RELEASE ON BANCA INTESA'S ADOPTION
MILANO, 4 August 2006 —Banca Intesa adopts Equator Principles, a system of guidelines that orient financial institutions in view of minimising social and environmental impact of international project finance activities.
The adoption of the principles marks a further step in the path for the definition of Banca Intesa’s corporate social and environmental responsibility. This path commenced already from the 2003-2005 Business Plan which conjugated, restructuring and relaunch objectives; confirmed and strengthened by the 2005-2007 Business Plan, which places sustainable growth at the centre of activities and projects; another step in this path is the recent approval of the Code of Ethics (which expresses the values in which the Bank believes and that must orient the behaviour of those who are part of it), the Guidelines (which define the internal strategies and the projects which substantiate them), the Social and Environmental Report (which measures the consistency of facts with respect to the values and opens a new channel of dialogue with all of the Bank’s stakeholders).
Full text of press release (pdf - 22k)
Bank of America and Banca Intesa adopt the revised Equator Principles
AMSTERDAM, 28 July 2006 —Another two EPFIs adopt the revised Equator Principles. Bank of America has announced its re-adoption of the Equator Principles and Banca Intesa newly adopted the EP. The EPFIs are pleased to have these two institutions on board.
Bank of America, Caja Navarra and Banca Intesa adopt the revised Equator Principles
AMSTERDAM, 28 July 2006 —Another three EPFIs adopt the revised Equator Principles. Bank of America and Caja Navarra have announced their re-adoption of the Equator Principles and Banca Intesa newly adopted the EP. The EPFIs are pleased to have these institutions on board.
Banco Bradesco, Dresdner Bank and Manulife re-adopt Equator Principles
AMSTERDAM, 20 July 2006 —In addition to the 33 financial institutions that already adopted the revised Equator Principles on July 6 (see press release on this site), three more financial institutions have adopted the revised framework in the meantime: Banco Bradesco, Dresdner Bank and Manulife. Moreover Unibanco explained its reasons for the re-adoption. All participating financial institutions commit to financing only those projects that comply with the revised Equator Principles, and commit to implementing these principles into business and risk management processes in a manner consistent with its organizational structure.
"This is yet another initiative of Banco Bradesco reinforcing its concerns with the environment and society as a whole."
- Milton Almicar Silva Vargas, Executive Vice President and Investor Relations Officer, Banco Bradesco S.A.
"Dresdner Bank is pleased to be a signatory of the revised Equator Principles. As an original supporter of the Equator Principles we have long believed it is essential for the environment as well as for our reputation that we seek to adopt best practice standards in project finance where ever we are involved. We intend to rigorously apply the new guidelines to our business and risk management policies, procedures and decisions. We are proud to be a collaborator bank in helping to advance the framework towards a more socially and environmentally sustainable future."
- Dr. Armin Sandhoevel, Head Allianz Climate Core Group, Head Carbon Risk/Reputational Risk Dresdner Bank, Chairman UNEP FI Climate Change Group
"Unibanco is aware that the prosperity of its business pursuits is intrinsically dependent on the advancement of environmental stewardship and socially responsible development practices. We routinely analyze the implications of the balance between risk and social and environmental benefits in the bank's project finance ventures. This is the least we can do to fulfill our role in the country's sustainable development ."
- Demosthenes Pinho, Head of the wholesale business, Unibanco
IFC Launches New Sustainability Web Portal
WASHINGTON, DC, 19 July 2006 —The International Finance Corporation, the private sector arm of the World Bank Group, today launched its new Sustainability Web Portal (http://www.ifc.org/sustainability). Responding to growing stakeholder interest, the portal connects visitors to IFC's full range of sustainability products and services and explains the business case for sustainability – economic, financial, environmental, social, and related to corporate governance – with success stories from emerging markets.
Full text of press release (pdf - 22k)
Financial Institutions Announce Revision of Equator Principles
Underscoring the Global Application of Environmental and Social Risk
Management
LONDON, 6 July 2006 — The Equator Principles Financial Institutions
(EPFIs) today announced the launch of the revised Equator Principles.
The revision underscores how far the financial sector has progressed in
embedding in the project finance arena a common set of best practices to
manage social and environmental risks related to project financing.
Today's revised principles reflect the experience of the 40 financial
institutions around the world that currently apply the Principles. The
principles also reflect the recent revisions to the International
Finance Corporation's (IFC) Performance Standards, upon which the
Equator Principles are in part based. In developing these changes, the
EPFIs actively involved clients, civil society groups and official
development agencies, all of whom provided constructive and valuable
feedback that the EPFIs reviewed and considered in the revision process.
Full text of press release (pdf - 275k)
Spanish and Portuguese translations of the re-adoption press release are now available. Please click on the following links for the
translations.
Equator Principles press release - Spanish version (pdf - 338k)
Equator Principles press release - Portuguese version (pdf - 279k)
UPDATE: EPFIs Review of Equator Principles
8 June 2006 — During March-May 2006, the Equator Principles Financial Institutions (EPFIs) have engaged in a
substantive review of the Equator Principles (EPs). As previously announced, the revisions to the existing EPs are
being undertaken to 1) reflect implementation learning from the past 2 ½ years, 2) incorporate comments from various
stakeholders received during this period, and 3) to ensure incorporation of, and consistency with, the IFC Performance
Standards. The engagement and review process included outreach to key stakeholders (including clients, NGOs and various
Official Agencies) on the proposed revisions. The engagement process was also extended to facilitate receipt of
feedback from all stakeholder groups. The review process has now concluded, and EPFIs have considered comments received
during this period. The EPFIs are now considering the final draft of the revised Principles and conducting their
internal approval processes to re-adopt the EPs. The EPFI aim to make the new revised Principles publicly available
via this website on July 6, 2006 – this shall also be the effective date for this new set of Equator Principles.
IFC Launches Web-based Private Sector Guide to Biodiversity - Why biodiversity matters and how it creates business value
The International Finance Corporation launched a Web-based guide to help companies understand and address biodiversty as part of their core business practice. With a focus on emerging markets, the guide provides guidance at the strategic and operating (implementation) levels, drawing on case studies from IFC's own portfolio.
“Emerging markets hold the majority of the world’s most significant biodiversity assets,” said Richard Caines, Manager of IFC’s Environment and Social Development Knowledge & Innovation Group, responsible for the guide. “Through this guide, we aim to provide information that will contribute to a sustainable use of these resources by the private sector.”
The guide provides an overview of issues surrounding biodiversity, including its importance to society and the relationship of biodiversity to business. Through examples and links to other information, this Web-based tool helps businesses understand both how they can manage the business risks from biodiversity issues, and how they can capitalize on business opportunities, such as new markets, that are associated with biodiversity maintenance and protection.
The guide features sector-specific biodiversity issues for 10 major industry sectors, as well as several case studies on how companies (including a number of IFC clients) have addressed biodiversity issues in their business operations.
Equator Principles Financial Institutions (EPFIs) conduct review of Equator Principles
The Equator Principles Financial Institutions (EPFIs) met in Vienna on February 28, 2006 in order to discuss proposed revisions to the Equator Principles (EPs). The revisions to the existing EPs are being undertaken to 1) reflect implementation learning from the past 2 ½ years, 2) incorporate comments from various stakeholders received during this period, and 3) to ensure incorporation of, and consistency with, the IFC Performance Standards. IFC's Board approved the IFC Performance Standards, which take the place of the previous IFC Safeguard Policies, on February 21, 2006. The EPFIs will conduct a short engagement and review process with key stakeholders (including clients, NGOs and various Official Agencies) on the proposed revisions. The EPFIs will take into account comments received during this process. Existing EPFIs, or new institutions seeking to adopt the new EPs, will re-adopt by 30 April 2006. The currently existing EPs will then demise on 30 June
2006 with an effective date for the new set of Equator Principles commencing on July 1, 2006.
IFC Adopts New Environmental and Social Standards
WASHINGTON, DC, 21 February 2006 — Washington, February 2006 - The Board of Directors of the International Finance Corporation adopted today new environmental and social standards for the organization. The new standards build upon the environmental and social requirements that IFC currently applies to private sector projects it finances in the developing world. A new policy on disclosure, adopted at the same time, will increase transparency requirements.
IFC currently has in place safeguards to minimize the impact of projects on the environment and on affected communities. The new standards will replace these safeguards.
“The new IFC standards are stronger, better, and more comprehensive than those of any other international finance institution working with the private sector,“ said Lars Thunell, IFC’s Executive Vice President. “We aim, with these new policies, to increase the development impact of projects in which we invest. We also seek to give companies operating projects in emerging markets the capacity to manage fully their environmental and social risks and to compete better in a global economy.”
Full text of press release
Good Practice on Non-Discrimination and Equal Opportunity
WASHINGTON, February 2006 — Washington, February 2006 - IFC launched its Good Practice Note on “Non-Discrimination and Equal Opportunity," the latest in a series of publications providing how-to guidance and good practice examples to private sector clients on a variety of social and environmental topics. The Note seeks to help IFC clients and the wider private sector with the challenges of eliminating discriminatory workplace practices and promoting workforce diversity in accordance with international standards and best practices.
Full text of press release
Fortis adopts environmental and social criteria for project financing
BRUSSELS/UTRECHT, 17 February 2006 — Fortis has adopted the Equator Principles - guidelines for responsible project financing. Fortis will apply the principles globally to project finance for all industry sectors. Full implementation is expected to take six months. In adopting the Equator Principles, Fortis joins a group of 40 leading international financial institutions. Together, they underwrite more than 75% of all project finance transactions worldwide.
'Fortis wants to grow in a responsible way,' explains Filip Dierckx, CEO of Merchant Banking and Fortis Executive Committee Member: 'By adopting the Equator Principles, Fortis is taking another step towards enhancing sustainability. Outstanding financial results are not the end of the story. We are fully committed to increasing Fortis's performance in this important area; doing business in a way that does not have a harmful environmental or social impact.'
Full text of press release(pdf - 23k)
SMBC establishes an Environment Department and adopts the Equator Principles
TOKYO, 23 January 2006 — Sumitomo Mitsui Banking Corporation (SMBC, President: Masayuki Oku) has established a department (Environment Analysis Department) within the Credit Department of its International Banking Unit effective today to strengthen its commitment to social and environmental responsibility. The new department will establish an environmental impact assessment framework for overseas project financing and conduct assessments accordingly.
Further, SMBC adopted the Equator Principles. The Equator Principles is a set of guidelines developed by private financial institutions for managing environmental and social issues related to project financing. Thirty-eight major financial institutions worldwide have adopted the Equator Principles (as of December 31, 2005).
Full text of press release
Caja Navarra adopts the Equator Principles
PAMPLONA, 9 January 2006 — Caja Navarra is the first saving bank in adopting the Equator Principles, a new sample of the environmental and social commitment of Caja Navarra. For Caja Navarra, Social Enterprise Responsibility supposes to integrate in the activities that make the social and environmental restlessness of clients, employees, suppliers, society and of the set of interlocutors to whom it is related. On the other hand, it represents the commitment of Caja Navarra to contribute to the sustainable development economic of the communities in which it is present and to enrich its quality of life.
A differentiating aspect of Caja Navarra, that shows its sensitivity in the matter of social responsibility, is its initiative 'You choose: you decide', only in the national and international panorama, that allow its clients to choose to three concrete projects to which to destine the benefits of its money. In addition, as of 2007, all the clients of Caja Navarra will be able to participate in the Social Work projects that help to finance.
Full text of press release(pdf - 32k)
The Bank of Tokyo-Mitsubishi adopts the Equator Principles
TOKYO, 22 December 2005 — The Bank of Tokyo-Mitsubishi, Ltd.(BTM)has become the second Japanese bank and the 38th financial institution globally to adopt the Equator Principles. In adopting the Equator Principles, BTM established the “Guidelines for Equator Principles”and the “Internal Procedure for Equator Principles”. BTM also arranged for personnel from the Structured Finance Division to work exclusively on the classifications and review of environmental & social impacts of projects proposed for financing by the Bank. BTM said that “We believe these resources and our procedures will allow the Bank to focus on the assessment process and consider appropriate loan conditions to promote sustainable development.”
Full text of press release(pdf - 62k)
Millennium bcp adopts the Equator Principles
LISBOA,2 January 2006 — Millennium bcp adopted the Equator Principles, as part of the Sustainability strategy and the Social Responsibility Values supported by the Bank. The voluntary adoption of the Equator Principles by Millennium bcp represents a natural step, taking into account the Bank?s track record towards the economic, social and environmental pillars, reiterating Millennium bcp as a benchmark in the social and environmental field.
Full text of press release
Dutch Royal Decoration for Equator Principles
AMSTERDAM,10 November 2005 — Herman Mulder, one of the founding fathers
of the Equator Principles got a Dutch Royal decoration for his
commitment and the creation of the Equator Principles yesterday. He was
decorated in the Royal Tropical Institute in Amsterdam during a
Conference of the Earth Charter +5. Mulder is Senior Executive
Vice-President Group Risk ABN AMRO. Mulder gave a lecture at the
Conference for hundreds of international experts and the Earth Charter
Committee. For many of them the information about the Principles was
new. Mulder said “I see that at this Conference amongst the hundreds of
you only five come from the private financial sector. I hope that at the
next meeting on the Earth Charter it is at least 25%”. Mulder further
described the effects of the Principles with the example of a project in
a country where the group of Equator banks together assured the
implementation of an environmental impact assessment. “The country
before, did not have any legal instrument to enforce an EIA”, said
Mulder. The effects of the Equator banks in joint projects break new
grounds.
NEDBANK Is The First African Bank To Adopt The Equator Principles
JOHANNESBURG,10 November 2005 — Nedbank has become the first African bank to adopt the Equator Principles. The announcement was made last night at the launch of Nedbank's 'Green Mining Awards', to commence in 2006, whereby the bank will also recognise significant achievements by mining companies in the promoting of environmental and social responsibility practices in the mining sector. Tom Boardman, CEO of the Nedbank Group says: "Becoming a signatory of the Equator Principles is in line with our existing environmental and social policies and augments the relationships that we have built with organisations such as the United Nations Environment Programme (UNEP), and WWF. Furthermore, the principles are in line with rapid developments in South African legislation and codes in this area, and will also bolster the existing risk management processes we have in place." Brian Kennedy, managing director of Nedbank Capital, says: "The Equator Principles have clearly affected the manner in which project finance is taking place in emerging markets. We believe we are now in a strong position to be the partner bank of choice for the other Equator banks in African deals, and to share skills and knowledge in this interaction."
Full text of press release (pdf - 24k)
FMO Adopts Equator Principles - And Goes Beyond
THE HAGUE,19 October 2005 — The Netherlands Development Finance
Company (FMO) adopted the Equator Principles. FMO already has been
actively implementing its sustainability policy since 2000. FMO's policy
goes further than the Equator Principles require. FMO finances the private sector in developing countries. Sustainable
development is the objective par excellence of FMO's financing. It is an
objective which logically addresses such matters as business, return and
respect for people and the environment. This mission resulted in FMO's
sustainability policy in 2000, which was supplemented in 2001 by a
specific social policy and by a corporate governance policy. FMO's
entire financing process is organized to assess the risks and
development effects in the financial, economic, ecological and social
fields.
Full text of press release (pdf - 82k)
IFC's Good Practice Note on Managing Retrenchment
WASHINGTON, DC, October 2005 — Whether it is the pursuit of new markets or
the desire to improve performance or
productivity, companies must periodically
review and adjust their business plans and
processes. The injection of new capital, changes in
ownership, or changing economic circumstances
can often lead to reorganization and restructuring
within a company. It is not uncommon for job
losses to result, and in some cases it may be the
only way for a company to move forward and
thrive. Loss of employment may be caused by a
range of factors from technological change to
privatization to total closure of a workplace.
Full text of IFC's Good
Practice Note on Managing Retrenchment (pdf - 334k)
BMO Financial Group Adopts Equator Principles
TORONTO, 15 September 2005 — BMO Financial Group announced it has adopted the Equator Principles, a voluntary set of environmental and social guidelines adopted by leading banks for project financing. "Joining
other leading companies in adopting the Equator Principles supports our long-standing commitment to the environment and our pledge to act in the interests of our shareholders, our customers, our employees, our communities and our future," said Karen Maidment, Senior Executive Vice- President and Chief Financial Officer.
Full text of press release (pdf - 78k)
BES Adopts the Equator Principles as the First Portuguese Financial Institution
LISBON, 16 August 2005 — Banco Espírito Santo Group (BES Group) is the first Portuguese financial institution to
adopt the Equator Principles. By subscribing to the Equator Principles BES Group is taking an important step further in
its Social Responsibility programme, the Accomplish More programme - reinforcing its commitment to corporate citizenship
towards sustainability and making sure that the projects financed are developed in a socially and environmentally responsible
manner. BES Group undertakes to make public the number of projects financed, and their categorisation by social and
environmental risk criteria. This is yet another responsibility that we take upon ourselves, with the steady determination
of an institution that has always known how to be more than a mere bank.
Full text of press release (pdf - 165k)
Wells Fargo & Company Announces the Adoption of the Equator Principles
SAN FRANCISCO, 12 July 2005 — Wells Fargo & Company announced a 10-point Environmental Commitment to more effectively
integrate environmental responsibility into its business practices and procedures. These 10 environmental commitments
include the adoption of the Equator Principles.
“We want to be a leader in this important area of corporate citizenship especially in processes and procedures for
considering environmental issues in our commercial and business practices,” said Mary Wenzel, the Company’s vice
president of environmental affairs. “This commitment to ourselves and our stakeholders shows we’re serious. We want
to make sure Wells Fargo and our more than 80 businesses and 151,000 team members are committed to being environmentally
responsible stewards in every community in which we do business.”
Full text of press release (pdf - 61k)
Freshfields Bruckhaus Deringer Publishes Report on the Equator Principles
LONDON, 11 July 2005 — Freshfields Bruckhaus Deringer, a leading international law firm, has published Part 1 of its report on the Equator Principles, “Banking on Responsibility”. Part 1 of the report focuses on the effect that the Equator Principles have had on Equator Banks and non Equator Banks involved with project finance transactions. Part 2 of the report, which is expected to be released later this year, will focus on the effect of the Equator Principles on consultants and sponsors of projects. “Banking on Responsibility” sets out the findings of a survey conducted by Freshfields Bruckhaus Deringer and lists a number of recommendations about how the implementation of the Equator Principles could be improved in the future. It also addresses a number of key issues such as the reasons for and against adopting the Equator Principles. In “Banking on Responsibility”, the Equator Principles are described as a “shining beacon for responsible banking”. The report has been well received.
The Full text of “Banking on Responsibility” is available at http://www.freshfields.com/practice/environment/publications/en.asp .
Manulife Adopts the Equator Principles
TORONTO, 11 May 2005 — Manulife has announced its adoption of the
Equator Principles, making it the 31st financial institution to apply
the Equator Principles. Dominic D'Alessandro, Manulife's President and
Chief Executive Officer states in the Company's 2004 Public Accountability
Statement: "We are dedicated to the highest standards of stewardship
through excellence in corporate governance, community giving, employee
programs and environmental policies." The 2004 Public Accountability
Statement also details Manulife's enhanced commitment to the environment.
Manulife became one of the first life insurance companies in North America
to become a signatory of the United Nations Environmental Program and to
adopt the Equator Principles. These commitments enhance the Company's own
Environmental Policy that recognizes the need to preserve the quality of
our environment.
Full text of press release (pdf - 119k)
Financial Institutions Hold Third Consultation With IFC on the Safeguard Policy Review
PARIS, 10 May 2005 —16 financial institutions which have adopted the
Equator Principles met with representatives of IFC in Paris on 20 April
2005. The meeting was hosted by Calyon. The financial institutions
discussed with IFC their comments on the proposed Performance Standards
which have been drafted by the IFC and which are intended to replace the Safeguard Policies on which the Equator Principles are based. IFC's
consultation period ended on 29 April 2005 and the IFC will now redraft the Performance Standards taking into account comments received from
stakeholders.
JPMorgan Chase Adopts the Equator Principles
NEW YORK, 25 April 2005 — JPMorgan Chase has become the third US bank and the 30th financial institution globally
to adopt the Equator Principles. In adopting the Principles and announcing additional green lending policies for corporate
loans, JPMorgan Chase said that "balancing non-financial factors such as environmental and social issues with financial
priorities is an essential part of good corporate citizenship, in addition to being fundamental to risk management and
the protection of investors."
Full text of press release (pdf - 59k)
Financial Institutions Meet with NGOs in Zurich
ZURICH, 28 March 2005 —
Eighteen financial institutions which have adopted the Equator Principles met in Zurich on 4 February 2005 with 17 NGOs interested in how these institutions are implementing the Equator Principles. Credit Suisse hosted the meeting. The agenda was built around topics including NGO involvement, disclosure and reporting, and the Equator Principles' website which were identified at a prior meeting held between financial institutions and NGOs in London in July 2004. A financial institution/NGO working group had discussed these issues prior to the meeting. In addition, a financial institution presented an overview of the life cycle of a project finance transaction, illustrating when financial institutions typically become involved. Finally, at the request of the NGOs, a consultant to several of them presented NGO views on the IFC's proposed Performance Standards which will replace the Safeguard Policies on which the Equator Principles are based. At the conclusion of the meeting, the financial institution representatives and the NGO representatives agreed on a list of next steps. One of the priorities for the next few months will be participation with the IFC as it develops the Performance Standards. The financial institutions and NGOs agreed to continue constructive dialogue on these issues of mutual interest, including exploring ways the NGOs can engage directly with the IFC and ways the IFC can encourage this.
Banco do Brasil adopts Equator Principles
BRASILIA, 3 March 2005 —
State-owned Brazilian bank, Banco do Brasil, has adopted the Equator Principles, becoming the 29th financial institution and the first state-owned bank to do so. In a press release, Vice-President of Credit, Finance and Global Risk, Adézio de Almeida Lima said "BB has always had its own guidelines with regard to these issues, particularly when such large sums are involved. The Equator Principles, however, represent an opportunity to reinforce our analysis process and stimulate our day-to-day socio-environmental responsibility that contributes to the sustainability of companies and our society."
Full text of press release (pdf - 128k)
IFC Responds to Financial Institutions
WASHINGTON, DC, 24 January 2005 — Following a call from financial institutions to extend the time period for the Safeguard Policy review, the IFC has extended the public consultation period to 29 April 2005.
Full text of the IFC's response to financial institutions (pdf - 51k)
Scotiabank Adopts The Equator Principles
TORONTO, 18 January 2005 — Scotiabank has announced its adoption of the Equator Principles, bringing the total number of adopting financial institutions to 28. Rick Waugh, President and Chief Executive Officer, noted that "Scotiabank recognises the serious global environmental challenges faced by our society. In our role as a major financial services provider, we support the principles of sustainable development and we are pleased to have joined other leading international banks in adopting the Equator Principles." Scotiabank is one of North America's premier financial institutions.
Full text of press release (pdf - 42k)
Financial Institutions Call for Extension of Safeguard Review
NEW YORK, 13 December 2004 — Seventeen financial institutions met with representatives of IFC in New York on 7 December
2004 in the second consultation with financial institutions by IFC in its Safeguard Policy review. The financial institutions
requested that IFC extend the Safeguard Policy review by at least six months from the 17 December 2004 deadline for Phase I of
the Public Consultation and Comment Period to ensure adequate time for full consideration of the implications of the proposed
new policies by all stakeholders, including the financial institutions which have adopted the Equator Principles.
The institutions said it is difficult to fully understand the proposed new policies, which are known as the Performance
Standards, without the interpretation notes which have not yet been released. They stated that it is critical to ensure
that there is sufficient time to develop a set of Performance Standards which are broadly accepted and appropriate to
stand the test of time. The revised policies will, when finalised, most likely require the Equator Principles to be
revised, and financial institutions expressed the need for their own consultation process with their stakeholders on
the revised Equator Principles before the new principles are implemented.
Full text of financial institutions' letter to the IFC (pdf - 14k)
Financial Sector Meeting with Industry on Safeguard Policy Update
LONDON, 29 October 2004 — Financial institutions met with project sponsors from the oil and gas,
mining and metals, and power industries in London on 28 October 2004 to discuss the proposed changes to
the IFC policies on which the Equator Principles are based. Also attending the meeting were representatives
of the International Petroleum Industry Environmental Conservation Association (IPIECA), the International
Association of Oil & Gas Producers (OGP), and the International Council on Mining & Metals (ICMM). The
financial institutions were interested in learning industry views of the proposed IFC Performance
Standards, which extend the policies currently addressed by IFC's Safeguard Policies.
IFC Consults with Financial Institutions on Safeguard Policy Update
LONDON, 22 September 2004 — Financial institutions which have adopted the
Equator Principles met with IFC representatives in London on 15 September
2004 to learn about IFC's proposed revisions to the Safeguard Policies,
which are incorporated by reference in the Equator Principles. IFC is conducting
consultations with key stakeholders in its policies and this consultation
meeting was the first one held by IFC on the Safeguard Policy update. At
the meeting, the institutions questioned IFC about the proposed changes.
The institutions were particularly interested to learn which apparent changes
to the policies merely codified existing, unwritten practice of IFC and
which changes were indeed policy extensions. The institutions stressed to
IFC the importance of IFC seeking feedback from project sponsors which have
experience in implementing the existing Safeguard Policies and which will
be the parties expected to implement the revised policies. A follow up meeting
between the institutions and IFC will be scheduled later in the year near
the end of the consultation process.
Banco Bradesco Adopts the Equator Principles
SAO PAULO, 08 September 2004 — Banco Bradesco S.A. has announced its adoption of the
Equator Principles, making it the 28th financial institution to apply the Equator
Principles. Its press release stated that "By adopting these principles, Bradesco
believes that all society will be benefited, since the Company will be consolidating
the management of exposure to risks associated with the projects [it finances]."
Banco Bradesco is Brazil's largest private bank.
Full text of press release (pdf - 75k)
Itaú and Itaú BBA Adopt the Equator Principles
SAO PAULO, 12 August 2004 — Banco Itaú and Banco Itaú BBA have adopted the Equator Principles,
making them the 26th and 27th financial institution to apply the Equator Principles. In a press release,
Antonio Matias, executive vice-president of Itaú and the Itaú Social Foundation said "By subscribing to
these principles, we are strengthening Itaú´s commitment to corporate citizenship and the development of
the communities in which we operate. Along with the systematic investments which we have been making in
the areas of culture, education and health, we are reaffirming our commitment to and deepening our
initiative in the field of environmental responsibility."
Full text of press release (pdf - 8k)
Banks Meet with NGOs to Discuss Progress on the Equator Principles
LONDON, 13 July 2004 — Sixteen financial institutions which have adopted the Equator Principles
met with representatives of 13 NGOs in London on 1 July 2004 to review the progress being made
in the implementation of the Equator Principles and to address issues of concern to NGOs. The
issues discussed included implementation, training and disclosure, as well as what role NGOs could play.
See more
Equator Principles Celebrate First Anniversary
4 June 2004 — The Equator Principles were first adopted by 10 banks a year ago today, and
their reach now extends to 25 financial institutions located in 14 countries.
"[The Equator Principles are] one of the most important things that the
banking industry has done in the past couple of years," Chuck Prince,
chief executive of Citigroup, told the Financial Times.
See more
Dealogic Says Equator Banks Arranged 75% of Project Loans in 2003
LONDON, 4 June 2004 — London-based Dealogic, which produces statistics and
analysis of the project finance market, has calculated that the 23 banks among the 25 financial institutions which are using the Equator
Principles arranged $55.1 billion of project loans in 2003, representing
75% of $73.5 billion project loan market volume in 2003. This volume does
not include project loans arranged by EKF and EIB and other government
agencies. It is estimated that government agencies arranged an additional
$10 billion of project loans in 2003. For further information on the
project finance market and Dealogic's ProjectWare project loan league
tables,visit www.dealogic.com.
Unibanco of Brazil Becomes the First Emerging Market Bank to Adopt the Equator
Principles
SAO PAULO, 1 June 2004 — Unibanco of Brazil has adopted the Equator Principles.
Unibanco becomes the first Brazilian bank and emerging market bank to
adopt the principles, bringing the total number of financial institutions applying
the principles to 25 (comprising 23 banks, one ECA and one multilateral agency). In
a press release, Tomas Zinner, Chairman of the Board of Instituto Unibanco, said
"Unibanco is concerned that only projects that effective contribute to the country's
development and, at the same time, help preserve the communities and protect the
environment, and should meet with approval. Few institutions share this vision
today, but we envisage social and environmental concerns becoming a primordial
factor in the decision to approve any project in the future."
See more
(pdf - 80k)
EIB Subscribes to the Equator Principles for Projects Outside
the European Union
LUXEMBOURG, 28 May 2004 — The European Investment Bank (EIB), a public institution driven by the policy
objectives of the European Union (EU), has issued Environmental Statement 2004 which
places a new emphasis on social issues in developing countries. In the statement,
the EIB has announced that it subscribes to the Equator Principles when operating
outside the EU.
See more
(pdf - 126k)
BBVA Adopts the Equator Principles
MADRID, 18 May 2004 — BBVA has announced its adoption of the Equator Principles,
making it the first Spanish bank and the 23rd financial institution to adopt the
Equator Principles. Adoption of the Equator Principles is part of BBVA's
comprehensive Corporate Social Responsibility strategy. According to Francisco
González, chairman of BBVA, "Adoption of the Equator Principles is a very important
step in BBVA's commitment to harmoniously reconciling the economic, social and
environmental aspects of its business, thus advancing towards a sustainable model of
development." The BBVA group employs 86,000 people in 35 countries through a
network of 7,000 branches.
Full text of press release
(pdf - 173k)
EKF of Denmark Becomes the First Export Credit Agency to Adopt the Equator
Principles
COPENHAGEN, 14 May 2004 — Eksport Kredit Fonden ("EKF"), Denmark's export
credit agency, has announced its adoption of the Equator Principles,
making it the first export credit agency worldwide, the first financial
institution in Denmark, and the 22nd financial institution to adopt the
principles.
Full text of press release
(pdf - 39k)
IFC Conducts Training for Banks on the Implementation of Equator Principles
ROME, 12 May 2004 — International Finance Corporation (IFC) conducted a training
programme in Rome this week for banks that have adopted the Equator Principles. The
programme was designed for professionals working in project finance, corporate
finance, credit, legal, customer relations and other relevant areas dealing with
environmental and social risk management within banks. The programme covered risk
assessment, categorizing projects, selecting appropriate assessment tools and
identifying value-added solutions for project sponsors. Representatives of nine
banks attended the programme conducted in Rome. IFC has, in addition, conducted
training programmes on the Equator Principles at individual banks, customized to
their needs. To date, a total of thirteen banks have received training from IFC, and
IFC estimates it has trained 365 professionals at banks that have adopted the
Equator Principles.
Twelve Banks Speak Out on the Extractive Industries Review
WASHINGTON, DC, 5 May 2004 — Eleven of the banks that have adopted
the Equator Principles have written a joint letter to the World Bank President,
James Wolfensohn, to express their views on the Extractive Industries Review
(EIR). Another bank has sent a separate letter to Mr. Wolfensohn stating
its concerns. >>more
Bank of America Adopts the Equator Principles
CHARLOTTE, North Carolina, 15 April 2004 — Bank of America announced
today that it has adopted the Equator Principles. This brings the number
of banks which have adopted the principles to 21, including four from North
America. Chan Martin, Bank of America Enterprise Market Risk Executive,
stated, "The actions we take today can have an impact far beyond the financial
transactions that define our business. We believe our adoption of the Equator
Principles supports an industry standard that recognizes environmental responsibility".
Bank of America is one of the world's largest financial institutions, serving
individual consumers, small businesses and large corporations with a full
range of banking, investing, asset management and other financial and risk-management
products and services. The company serves clients in 150 countries.
Full
text of press release
IFC Conducts an Equator Principles Workshop
WASHINGTON, DC, 18 March 2004 — IFC held a workshop on social risk
assessment for banks which have adopted the Equator principles. The workshop
was held at IFC's offices in Washington on 11 March, 2004. Among the topics
discussed were IFC's experience in managing social assessments and issues
relating specifically to resettlement, indigenous people and cultural property.
There was discussion of how to identify vulnerabilities to social issues
in project development. Other topics discussed included sharing of project
benefits with local communities, transparency, and promoting effective consultation
and stakeholder engagement.
BTC Project is the First Major Test of the Equator Principles
LONDON, 27 February 2004 — The $3.6 billion Baku-Tblisi-Ceyhan oil
pipeline project, financing for which closed on February 3, 2004, was the
first major test of the Equator Principles. Because implementation of the
project required resolution of sensitive environmental and social issues,
the project was categorized by banks as a "Category A" project under the
Equator Principles. BTC thus became the first project treated as Category
A under the Equator Principles. »more
KBC Adopts the Equator Principles
BRUSSELS, 27 January 2004 — KBC has announced its adoption of the Equator
Principles, making it the 20th bank to announce its adoption. Jan Vanhevel,
Managing Director of the KBC Bank and Insurance Holding Company, has declared
that 'the adoption of the Equator Principles supports KBC's longstanding
commitment to environmental and social responsibility in all its activities,
both domestically and internationally'. Via a network of branches, subsidiaries
and representative offices, KBC is present in the main financial centres
and more than 30 countries worldwide, serving 12 million customers and employing
45 000 people.
Full text of press release
(pdf - 62k)
Banks Hold Implementation Conference
AMSTERDAM, 5 January 2004 — Eighteen banks which have adopted the Equator
Principles met in Amsterdam on 15 December, 2003, for an Implementation
Conference. The topics discussed by the banks included the Equator Principles'
categorization process, training in environmental and social issues assessment,
internal business and risk management models being put in place to deal
with banks' implementation of the Equator Principles, and the timing of
each banks' implementation steps. There was also discussion of consultants
with environmental or social issues capability. IFC sent several representatives
to the meeting to discuss IFC's training program for banks which have adopted
the Equator Principles. The conference resulted in in banks sharing their
implementation steps to date, discussing implementation areas of concern,
and learning more about each others' risk management processes.
CIBC Adopts the Equator Principles
TORONTO, 3 December 2003 — CIBC has announced its adoption of the Equator
Principles, making it the 19th bank to adopt the Equator Principles and
the second Canadian bank. In CIBC's press release, Wayne Fox, Vice-Chair
and Chief Risk Officer said, "CIBC is pleased to join leading international
banks in adopting the Equator Principles. We believe that the Principles
will contribute significantly to ensuring social and environmental responsibility
in development projects globally and we encourage their adoption by other
banks as well. The Principles support CIBC's longstanding commitment to
environmental responsibility in all its activities." CIBC provides financial
services to more than 9 million customers, and has more than 37,000 employees
worldwide.
Full text of press release
(pdf - 40k)
Mizuho Adopts the Equator Principles
TOKYO, 27 October 2003 — Mizuho Corporate Bank, Ltd. has become the
first Japanese bank to adopt the Equator Principles. This brings the total
number of banks adopting the Equator Principles to 18, and the number of
countries represented to 11. In a press release, Mizuho said it will apply
high environmental and social standards for its project finance business
in order to carry out its social obligations to promote both economic development,
and environmental and social preservation. As an international financial
institution, Mizuho wishes to contribute to the establishment of international
environmental and social standards. Mizuho extends loans to 70% of listed
Japanese companies and serves as the main lender to 40% of them.
Full
text of press release
Standard Chartered Adopts the Equator Principles
LONDON, 8 October 2003 — Standard Chartered has announced its adoption
of the Equator Principles. Standard Chartered becomes the seventeenth bank
to adopt the Equator Principles. Standard Chartered employs 30,000 people
in over 500 locations in more than 50 countries in the Asia Pacific Region,
South Asia, the Middle East, Africa, the United Kingdom and the Americas.
It is one of the world's most international banks, with a management team
comprising 70 nationalities.
Full text of Standard
Chartered's announcement (pdf - 48k)
Dexia Group Adopts the Equator Principles
BRUSSELS & PARIS, 18 September 2003 — Dexia Group has announced
its adoption of the Equator Principles. Dexia becomes the sixteenth bank
to adopt the Equator Principles. Pierre Richard, Chairman and Chief Executive
Officer of Dexia, said "It is logical and natural that Dexia, the bank for
sustainable development, would enthusiastically adopt the Equator Principles."
Dexia has 26,000 staff members in over 22 countries, and is a world leader
in project financing for the public sector.
Full text of Dexia
Group's announcement (pdf - 87k)
HSBC Group Adopts the Equator Principles
LONDON, 4 September 2003 — HSBC Group of the United Kingdom has announced
its adoption of the Equator Principles. This will reinforce the bank's long
established environmental and social risk evaluation process and its position
as one of the leading companies in environmental impact management. HSBC
becomes the third British bank and the fifteenth leading international project
finance bank to adopt the Equator Principles. With some 9,500 offices in
79 countries and territories, the HSBC Group is one of the world's largest
financial institutions.
Full text of HSBC Group's announcement
(pdf - 66k)
Dresdner Bank Adopts the Equator Principles
FRANKFURT, 18 August 2003 — Dresdner Bank AG of Germany has announced
its adoption of the Equator Principles. Dresdner Bank becomes the third
German bank and the fourteenth leading international project finance bank
to adopt the Equator Principles, with banks from nine countries now having
adopted the Equator Principles. Dresdner Bank is part of the Allianz Group
and operates in 60 countries.
Full text of Dresdner Bank's announcement,
in German and English (pdf - 16k)
MCC of Italy Adopts the Equator Principles
ROME, 29 July 2003 — MCC S.p.A, a leading Italian bank in project finance,
has become the first Italian bank to adopt the Equator Principles. This
brings the total number of banks that have adopted the Equator Principles
to 13, and the number of countries represented by the adopting banks to
nine. MCC, whose former name was Mediocredito Centrale S.p.A, is the investment
banking arm of Capitalia Group, the fourth Italian Banking Group. It has
a long, positive track record on multi-sourcing project finance transactions
all over the world. In its press release, MCC said it has taken into account
the World Bank/IFC guidelines for a large number of project financing transactions
in the past, and that the adoption of the Equator Principles will externalize
its environmental and social risk evaluation process.
Full text of MCC's press release
(pdf - 45k)
Linklaters Comments on the Equator Principles
LONDON, 23 July 2003 — Linklaters, a prominent UK-based law firm in
international project finance, has issued its commentary on the Equator
Principles. In its letter to clients, it advises clients to verify early
that their projects' Environmental Assessments cover the topics addressed
by the Equator Principles, and to plan the public consultation process from
the outset. It advises clients to value environmental consultants' work
for its expertise, but not to rely on consultants as a source of funds in
the event of a problem.
Full text of Linklaters' letter
(pdf - 114k)
Royal Bank of Canada Adopts the Equator Principles
TORONTO, 21 July 2003 — Royal Bank of Canada has become the first Canadian
bank to adopt the Equator Principles. Their adoption of the Principles brings
the number of banks adopting the Principles to twelve, and the number of
countries they represent to eight. In announcing the adoption of the Principles,
Suzanne Labarge, Vice Chairman and Chief Risk Officer of RBC Financial Group,
said that "as a leading North American financial services provider, we recognize
our role in supporting and advocating sustainable business practices. The
adoption of the Equator Principles enhances our existing environmental risk
management policies."
Full text of Royal Bank of Canada's announcement:
(English - pdf 46k)
(Français - pdf
45k)
BG Group Endorses the Equator Principles
READING, UK, 2 July 2003 — BG Group of the UK, a leading sponsor of
projects, has endorsed the adoption of Equator Principles by banks. Craig
Cowley, Head of Structured Finance of BG Group, in a letter to the adopting
banks, said that BG Group believes that "the Principles will make a valuable
contribution in encouraging good quality environmental and social management
of projects." He also said that BG Group welcomes "financial institutions
adhering to a common standard in respect of environmental and social issues
when providing finance."
Full text of BG Group's letter
(pdf - 76k)
ING Group Adopts the Equator Principles
AMSTERDAM, 23 June 2003 — ING Groep NV of the Netherlands has announced
its adoption of the Equator Principles. This brings the number of leading
project finance banks which have adopted the Principles to eleven. ING said
that its adoption of the Equator Principles "means that ING will comply
with the sustainability regulations for financing various large-scale projects
in developing countries as set by the International Finance Corporation."
Full
text of ING's announcement
Sullivan & Cromwell and Norton Rose Comment on the Equator Principles
NEW YORK, 18 June 2003 and LONDON, June 2003 — Two prominent project
finance law firms, Sullivan & Cromwell in the US, and Norton Rose in the
UK, have issued commentary on the Equator Principles to their clients. In
its letter to clients, Sullivan & Cromwell said that the Equator Principles
represent a step towards the adoption of IFC's environmental standards "even
where financing is expected to come primarily from private sources of capital.
Sponsors should continue to plan larger projects, especially in low- and
middle-income countries, with a view towards adopting these policies and
procedures." In assessing the implications of the Equator Principles for
lenders, Norton Rose recommends that "lenders should from now on include
specific reference to the Equator Principles when negotiating term sheets."
In assessing their impact on borrowers, Norton Rose commented that "in many
instances the application of the Equator Principles will not significantly
increase the compliance burden faced by project sponsors. However, the Equator
Principles will impose additional burdens in some areas," particularly in
the emerging markets. "The guidelines are significant in that they impose
requirements in relation to the social implications of projects."
Full text of Sullivan & Cromwell's
letter (pdf - 109k)
Full text of Norton Rose's letter
(pdf - 138k)
Original Press Release by Adopting Banks
WASHINGTON, DC, 4 June 2003 — Ten leading banks from seven countries
today announced the adoption of the "Equator Principles," a set
of guidelines developed by the banks for managing social and environmental
issues related to the financing of development projects. The banks will
apply the principles globally and to project financings in all industry
sectors, including mining, oil and gas, and forestry. »more
Institutions Which Have Adopted the Equator Principles
ABN AMRO Bank, N.V.
ANZ
Banco Bradesco
Banco de la República Oriental del Uruguay
Banco do Brasil
Banco Galicia
Banco Itaú
Bancolombia S.A.
BankMuscat
Bank of America
Bank of Tokyo-Mitsubishi UFJ
Barclays plc
BBVA
BES Group
BMO Financial Group
BNP Paribas
Caja Navarra
Calyon
CIBC
CIFI
Citigroup Inc.
CORPBANCA
Credit Suisse Group
Dexia Group
DnB Nor
Dresdner Bank
E+Co
EKF
Export Development Canada
Financial Bank
FMO
Fortis
HBOS
HSBC Group
HypoVereinsbank
Industrial Bank Co., Ltd
ING Group
Intesa Sanpaolo
JPMorgan Chase
KBC
KfW IPEX-Bank
la Caixa
Lloyds TSB
Manulife
MCC
Mizuho Corporate Bank
Millennium bcp
National Australia Bank
Nordea
Nedbank Group
Rabobank Group
Royal Bank of Canada
Scotiabank
SEB
Societe Generale
Standard Chartered Bank
SMBC
TD Bank Financial Group
The Royal Bank of Scotland
Unibanco
Wachovia
Wells Fargo
WestLB AG
Westpac Banking Corporation
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