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:
Principles apply to all project financings with capital costs above USD
This threshold was lowered from USD 50 million.
Principles now also apply to project finance advisory activities.
revised Principles now specifically cover upgrades or expansions of existing
where the additional environmental or social impacts are significant.
approach in applying the Principles to countries with existing high standards
for environmental and social issues has been streamlined.
EPFI is now required to report on the progress and performance of Equator
Principles’ implementation on an annual basis.
and better social and environmental standards, including more robust public
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.
"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, firstname.lastname@example.org
"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, email@example.com
“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, firstname.lastname@example.org.
“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
Contact: Michael O'Toole, +44 2071166137
Alistair Smith, +44 2071166132
"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, email@example.com
Bertrand Hugonet, 33 141893044, firstname.lastname@example.org
"The Equator Principles reflect our commitment to providing our clients
with a robust framework for managing environmental and social issues that
may arise through project finance," said Chuck Prince, Chairman and
Chief Executive Officer, Citigroup. "This is about doing business
that is sustainable over the long term, and we are proud to play a leading
role in this important and innovative effort that we believe should continue
to be adopted by every financial institution doing business in this sector
around the world."
Contact: Christina Pretto 212-816-8572 (New York)
Dan Noona 44-207-986-5608 (London)
“Dexia confirms its adherence to Equator Principles II - “No achievement
without lasting commitment”: by adopting the Equator Principles, Dexia,
world leader in public finance, reinforce its founding values i.e. a sense
of long-term prospects and a concern for the general interest. Therefore,
Dexia reaffirms its on-going commitment in order that the rules of good
behavior remain a sustainable part of the business practice, and provides
lasting support to society’s important choices,” said Jacques Guerber,
vice chairman of the management board of Dexia.
Contact: Marie-Alice Lallemand Flucher, 33 143927218
Babeth Mollat, 33 143927705
”The improved Equator Principles portends the increased awareness in the
Major League of the financial world of social responsibility and the respect
of extended Human Rights. I am proud to be the first and so far only Export
Credit Agency to sign this agreement. It proves the positive convergence
of public and private engagement in safe-guarding progress on the road
to a more civil world. The revised EP definitely add to making the financing
of globalization much more socially responsible”, said Lars Kolte, Managing
Director of EKF and Chairman of the Council of Europe Development Bank
Contact: Lars Kolte, +4535466101/+4520194503, email@example.com
“Responsible growth requires carefully designed and effective risk management
processes for environmental and social issues,” says Filip Dierckx, CEO
Merchant Banking of Fortis. “Implementing the revised Equator Principles
really shows our commitment to responsible growth and is a very good example
of the application of sustainable development in our business.”
Contact: Amanda Condé, +32 (0)205274420, firstname.lastname@example.org
Maria Anne van Dijk, +31 (0)302263023, email@example.com
"FMO is pleased to confirm its
support to the revised Equator Principles. An important component of positive
development outcomes is the social and environmental sustainability of
projects, which FMO expects to achieve by applying a comprehensive set
of social and environmental performance standards – for which the Equator
Principles provide a sound basis", said Nico Pijl, Chief Risk and
Finance Officer, FMO.
Contact: Suzan van der Wiel, +31 703149657, firstname.lastname@example.org
"The Equator Principles (EP)
are a cornerstone of HSBC's approach to how we finance projects and contribute
to sustainable development," said Jon Williams, Head of Group Sustainable
Development, HSBC Holdings plc. "In 2005 we provided 30 per cent more
project loans and declined fewer deals, reflecting improvements in HSBC's
training as well as internal and external requirements for compliance with
the Principles. Chairing the EP working group and assisting in improving
the Principles has helped us to appreciate the significance of this initiative
to our business and our clients."
Contact: Nhan Chiem, +44 (0)2079910639, email@example.com
“HVB was among the very first financing institutions to adopt the Equator
Principles in 2003. The experience we have gained in implementing and applying
this framework in the past years in project finance, the valuable feedback
we have received from our clients, NGOs and other stakeholders have proved
to be very useful while redrafting the Equator Principles following IFC’s
launch of the new Performance Standards,” said Kai Henkel, Head of Global
Project & Structured Finance of HVB. “The adoption of the revised
Equator Principles is a clear sign of HVB’s continued commitment to sustainability
in project finance. We are convinced that sustainability is not only contributing
to the security for our basic life, but is also an important driving force
behind corporate value for our clients as well as for ourselves.”
Contact: Knut Hansen, +49 (0)893784644, firstname.lastname@example.org
“I heartily welcome the adoption
of the revised Equator Principles, which are based on IFC’s expanded and
strengthened standards. This shows that Equator Banks, instead of shying
away from difficult projects, understand the business case for encouraging
their client companies to undertake thorough environmental and social due
diligence. IFC will continue to support the broad membership of the Equator
Principles, as it expands further to encompass more domestic banks, development
banks, and other types of financial institutions,” said Lars Thunell,
Executive Vice President of the International Finance Corporation, World
Contact: Lucie Cecile Giraud, 1 2024584662, LGiraud@ifc.org
“We have committed ourselves to the Equator Principles as a framework
for determining, assessing and managing the socio-environmental risks of
our projects. We have been actively involved in the revision process and
in adopting the improved Equator Principles we seek to ensure that the
projects we finance are developed in a socially responsible manner, reflecting
sound environmental management practices,” said Michel Tilmant, Chief
Executive Officer of ING Group
Contact: Mark Goedbloed, +31 205415469, email@example.com
"With the adoption of the Equator Principles, we reaffirm the commitments
of Banco Itaú and Banco Itaú BBA to social and environmental responsibility
and the development of the communities in which we operate. Itaú exceeds
Equator Principle requirements by applying social and environmental criteria
for evaluating projects of less than US$ 10 million. All projects worth
more than R$ 5 million are subject to analysis to ensure that they adhere
to the necessary social and environmental parameters. Furthermore, we are
very satisfied to announce that the Equator Principles have also been adopted
at Banco Itaú Holding Financeira, Itaú Europa and Itaú Buen Ayre,"
says Roberto Setubal, President and CEO of Banco Itaú Holding Financeira."
Contact: Fernando Baseggio, (55-11) 5019-5072
”KBC has a longstanding commitment
to environmental and social responsibility in all its activities, both
domestically and internationally,“ says Liam Donlon, Senior General Manager
and Global Head of Project Finance at KBC. “Over the last 3 years the
Equator Principles have become a strong instrument in promoting sustainable
business development and KBC has been and remains eager to take part in
this process. The revised Equator Principles and their adoption by many
institutions represent another important irreversible step forward.”
Contact: Viviane Huybrecht, 32 24298545,
"The revision of the Equator Principles reinforces the commitment
of the financial world to the highest social and environmental best practices.
Millennium bcp believes the Equator Principles are a major step forward
in promoting sustainable project finance globally. The conquest of the
environmental and social components is ambitious and entails hard work,
but is achievable and rewarding. Millennium bcp develops a sustainability
strategy that seeks the equilibrium between the social, economic and environmental
pillars," said Américo Carola, Managing Director, Head of Project
Finance, Millennium bcp.
Contact: Rui Agapito, 351 213211744, firstname.lastname@example.org
“As the first Japanese bank adopting
the Equator Principles in October 2003, Mizuho Corporate Bank, Ltd. furthers
its leadership in sustainability through re-adoption today of the updated
Equator Principles, paralleling the IFC’s adoption of its new ‘Performance
Standards’. The work leading up to today’s announcement assures the Equator
Principles will remain the standard for assessing and managing social and
environmental risk in project financings as well as Mizuho’s ability to
provide first class service to its clients and stakeholders,“ said Hiroshi
Saito, President & CEO, Mizuho Corporate Bank, Ltd.
Contact: Masataka Kanegae, +81 352528106 email@example.com
"The Equator Principles provide a sound framework for the project
finance industry worldwide. They have given an additional rigour to the
way in which the social and environmental impacts of major infrastructure
projects are assessed both before and during their implementation. As a
leading provider of project finance globally we welcome the discipline
they are bringing to the industry. It is right that, like all guidelines,
they are kept under regular review and we are delighted to be adopting
the updated principles which take on board industry and stakeholder experience
since 2003," said Johnny Cameron, Chief Executive RBS Corporate Markets.
Contact: Colin Pyle, +44 1315235659, Colin.Pyle@rbs.co.uk
“We are pleased to join other leading
banks to readopt the Equator Principles. Recognizing the importance of
realizing a sustainable society, SMBC is committed to making continuous
efforts to harmonize social and environmental preservation and corporate
activities. The Equator Principles will strengthen our commitment to the
corporate social responsibility,” said Masayuki Oku, President & CEO,
Sumitomo Mitsui Banking Corporation
Contact: Yoshio Ogino, +81-335928443, Ogino_Yoshio@rk.smbc.co.jp
"We are committed to minimising
the environmental and social impacts associated with our operations and
to promoting sustainable economic development. Our continuing adoption
of the Equator Principles reinforces the Bank's long established environmental
and social risk evaluation process. We believe in sustainable business
and are pleased to adopt best practice", said Global Head, Project
and Export Finance, William Rathvon.
Contact: Chris Smith, +44 207 2807361/ +44 7900162036,chris.Smith@uk.standardchartered.com
“As businesses grow globally, as workforces diversify and as people around
the planet are connected by technology, the term ‘community’ is no longer
limited by geography and must include our neighbors in emerging markets,”
said Mary Wenzel, head of Environmental Affairs at Wells Fargo. “We are
therefore proud to readopt the Equator Principles and take part in this
powerful movement by leaders in the private sector willing to take responsibility
and do what’s right for our communities and future generations.”
Contact: Stephanie Rico, 415 / 3965804, Stephanie.firstname.lastname@example.org.
"Within a short time the Equator Principles have evolved into an important
success story. The recent revision demonstrates that the financial sector
is living up to its responsibility by addressing environmental and social
risks in global finance," said Robert M Stein, member of the Managing
Board of WestLB AG.
Contact: Foster Deibert, +49 2118266417/ +49 1722973206
Westpac's Head of Project & Structured Debt, Mike Cleary, said: "As
a founding signatory of the Equator Principles, and the only Australian
bank to date to have adopted the principles,Westpac is pleased to have
been involved with the recent review and to confirm our formal adoption
of the revised principles. We see the Equator Principles continuing to
play a key role in our broader commitment to responsible project financing
Contact: Sean Glover, 00 612 82548408 / 00 61413115379
Mikeela Sinclair, 00 612 82533443/ 00 61409311197