Lending and Investment

Environmental Credit Risk Management

An assessment of environmental risks and liabilities is an important consideration in CIBC’s lending decisions. Our Environmental Risk Management (ERM) team developed and proactively manages CIBC’s Environmental Credit Risk Management Standards and Procedures, which help employees identify environmental risks pertaining to credit evaluation and financing. The Standards require graduated levels of environmental due diligence depending on the level of identified risk. ERM directly participates in the credit evaluation process by reviewing environmental due diligence information in prescribed circumstances. In 2016, CIBC’s ERM group reviewed and advised on 1,012 transactions.


Project Finance and the Equator Principles

The Equator Principles are a voluntary financial industry benchmark for assessing and managing environmental and social risk in project financing. The Equator Principles have been incorporated into our environmental due diligence since 2007. ERM completes training across the bank to both lending and risk adjudication groups as the Equator Principles are updated over time.

All Equator Principles applicable transactions are reviewed by ERM group staff. In fiscal 2016, we financed two project finance transactions where the Equator Principles were applicable and that reached Financial Close. Transaction details are as follows:

 

  Breakdown by Category
 

Category A

Category B

Category C

 

1

-

1

  Detailed Breakdown by Category

By Sector

Category A

Category B

Category C

Mining

1

-

-

Infrastructure

-

-

1

Oil & Gas

-

-

-

Power

-

-

-

Other

-

-

-

By Region

Category A

Category B

Category C

Americas

-

-

-

Europe, Middle East and Africa

-

-

-

Asia Pacific

1

-

1

By Country
Designation

Category A

Category B

Category C

Designated

-

-

1

Non-Designated

1

-

 

Independent Review

Category A

Category B

Category C

Yes

1

-

1

No

-

-

-

Project Related Corporate Loans – None undertaken
Project Finance Advisory Services – None undertaken

Category A – Projects with potential significant adverse social or environmental impacts that are diverse, irreversible or unprecedented.

Category B – Projects with potential limited adverse social or environmental impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures.

Category C – Projects with minimal or no social or environmental impacts.


Pre-Assessed Environmental Consultants

The ERM group maintains pre-assessed lists of environmental consulting firms located across Canada and the United States. These lists identify firms that meet CIBC's criteria in terms of expertise, quality of service and other standards when performing environmental site assessments and other third-party investigations.

CIBC reviews environmental reports prepared by consulting firms as part of our transactional due diligence process. The ERM group may invite consulting firms to apply to be added to our Pre-Assessed Environmental Consultant Lists when appropriate levels of reporting quality have been identified.

CIBC does not formally endorse any specific environmental consulting firms. Consulting firms not on the list are in no way prohibited from providing environmental consulting services to CIBC clients.