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 2003. 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 2017, we financed six project finance transactions where the Equator Principles were applicable and that reached Financial Close. Transaction details are as follows:
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.