Financial Institutions Announce Revision of Equator Principles
Financial Institutions Announce Revision of Equator Principles
Underscoring the Global Application of Environmental and Social Risk Management
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.
The Equator Principles apply globally and to all sectors and have been revised in the following ways:
- The Principles apply to all project financings with capital costs above USD 10 million. This threshold was lowered from USD 50 million.
- The Principles now also apply to project finance advisory activities.
- The revised Principles now specifically cover upgrades or expansions of existing projects where the additional environmental or social impacts are significant.
- The approach in applying the Principles to countries with existing high standards for environmental and social issues has been streamlined.
- Each EPFI is now required to report on the progress and performance of Equator Principles’ implementation on an annual basis.
- Stronger and better social and environmental standards, including more robust public consultation standards.
The EPFIs are proud of the progress the Equator Principles have made in the past three years. The development and application of the Equator Principles have been a huge step forward for the industry, in terms of having a common framework and language for environmental and social issues in the project finance industry. The Equator Principles have enabled the financial institutions to better assess, mitigate, document and monitor the potentially adverse social and environmental risks associated with financing projects.
Participating financial institutions commit to financing only those projects that comply with the Equator Principles, and commit to implementing the revised Equator Principles into business and risk management processes in a manner consistent with its organizational structure. Of the 40 financial institutions that have shared their experience in devising the revised Equator Principles, 33 have today adopted them and the others are expected to do so in the coming weeks.
The full text of the revised Equator Principles and FAQ about the Equator Principles can be found at www.equator-principles.com.
The financial institutions adopting the revised Equator Principles today are included in the following list.
| ABN AMRO | "The collaboration among the Equator banks, and with IFC, is truly a success story. Among the achievements of the Equator Principles is the demonstration that competitors, even in a highly competitive industry, are willing, able and happy to collaborate for the health of the planet. We remain firmly committed to the Equator Principles, to their continual improvement and to broadening the base of adopting banks to establish a more level playing field for international as well as local banks," said Mr. Huibert Boumeester, ABN AMRO Managing Board member. Contact: Sierk Nawjin, +31 (0)206295207, sierk.nawijn@nl.abnamro.com | |
| Banco do Brasil | "Society expects the financial agents to make sure that the allocation of resources takes into consideration the integration of the business aspects related to the preservation of the environment and the respect of social matters. The revision of the Equator Principles is, therefore, an important landmark in compliance with society's increasing expectations of the social and environmental responsibility of the financial sector," says Mrs Izabela Campos, Managing Director of Employee Relations and Social and Environmental Responsibility, Banco do Brasil. Contact: Diego Werneck/Leandro Wirz, imprensa@bb.com.br | |
| Bank of Tokyo-Mitsubishi UFJ, Ltd | “We strongly support the new Equator Principles as a clear standard for the international financing community by which we can enhance environmental protection efforts and realize a more sustainable global economy. We embrace the Principles as one of the essential elements of our Environmental Policy, which includes monitoring the effects of our activities on the environment and working towards continuous improvement of our environmental management and pollution prevention activities,” said Nobuo Kuroyanagi, President, The Bank of Tokyo-Mitsubishi UFJ, Ltd. Contact: Hisanobu Chigira, hisanobu_chigira@mufg.jp. | |
| Barclays | “The Equator Principles are intrinsic to our business approach in the area of project finance. We think of corporate responsibility as an important part of our strategy. It governs what we do - banking - with how we do it - responsibly. We can help our clients in an area of increasing activity for many of them by using the Equator Principles to help us manage social and environmental risk better. Our job is to help our clients achieve their financial goals. We believe that the Equator Principles help us do this," said John Varley, Barclays Chief Executive Contact: Michael O'Toole, +44 2071166137 Alistair Smith, +44 2071166132 | |
| Calyon | "Project finance lending requires comprehensive due diligence, involves long maturities and seeks a community of interest among stakeholders. At Calyon, environmental and social aspects are managed as crucial factors of risk. We believe that the second generation of the Equator Principles is the adequate framework to address those aspects, benefiting from the enhanced revised IFC policies and the strong three year experience of a core group of EP leading banks which Calyon is proud to belong to," said Michel Anastassiades, Global Head of Project Finance. Contact: Anne Robert, 33 141890377, anne.robert@calyon.com Bertrand Hugonet, 33 141893044, bertrand.hugonet@calyon.com |