The Equator Principles are intended to serve as a common baseline and a risk management framework, adopted by financial institutions, for determining, assessing and managing environmental and social risk in projects. As a member since 2003, we apply these principles to ensure the projects we finance and advise on are developed in a manner that is socially responsible and reflects sound environmental management practices. Further, we use these principles as a platform for our own internal policies, procedures and standards for project due diligence.
Project Finance
The Equator Principles apply to all project finance loans where total project capital costs exceed USD 10 million or more.
The following 36 Project Finance transactions achieved financial close during the calendar year 2023:
EA project categories1
Cat A
Cat B
Cat C
Total
11
22
3
Sector
Mining
–
–
–
Infrastructure
–
6
3
Oil & Gas
2
–
–
Power
9
15
–
Others²
–
1
–
Region
Americas
1
2
–
Asia Pacific
6
11
1
Europe, Middle East & Africa
4
9
2
Country Designation3
Designated Country
3
10
1
Non-Designated Country
8
12
2
Independent Review4
Yes
11
17
–
No
–
5
3
1Projects are categorised as A, B or C in relation to the magnitude of potential environmental and social risks and impacts. This is based on the International Finance Corporation’s (IFC) environmental and social categorisation process. For more detail please see EP4 for guidance. 2 Sectors covered under “Others” include Agribusiness, Transport, Chemicals and Manufacturing. 3 Designated Countries (previously named High-Income OECD Countries) are those countries deemed under EP to have robust environmental and social governance, legislation systems and institutional capacity designed to protect their people and the natural environment. Click here for the list of Designated Countries. 4 Carried out by an Independent E&S Consultant. For more detail please see Principle 7 of EP4.
Project-Related Corporate Loans
The Equator Principles apply to Project-Related Corporate Loans where all three of the following criteria are met:
The majority of the loan is related to a Project over which the client has Effective Operational Control (either direct or indirect)
The total aggregate loan amount and individual commitment (before syndication or sell down) are each at least USD 50 million
The loan tenor is at least two years
The following 6 Project-Related Corporate Loans were subject to Equator Principles and achieved financial close during the calendar year 2023:
EP Categories
Cat A
Cat B
Cat C
Total
1
4
1
Sector
Mining
–
–
–
Infrastructure
1
–
1
Oil & Gas
–
1
–
Power
–
1
–
Others
–
2
–
Region
Americas
–
–
–
Asia Pacific
–
2
–
Europe, Middle East & Africa
1
2
1
Country Designation
Designated Country
–
1
–
Non-Designated Country
1
3
1
Independent Review
Yes
1
2
–
No
–
2
1
Project-Related Refinance and Project-Related Acquisition Finance
The Equator Principles apply to all Project-Related Refinance and Project-Related Acquisition Finance, where all of the following three criteria are met:
The underlying Project was financed in accordance with the Equator Principles framework
There has been no material change in the scale or scope of the Project
Project Completion has not yet occurred at the time of the signing of the facility or loan agreement
The following 1 Project-Related Refinance was subject to Equator Principles and achieved financial close during the calendar year 2023:
EP Categories
Cat A
Cat B
Cat C
Total
–
–
1
Sector
Mining
–
–
–
Infrastructure
–
–
1
Oil & Gas
–
–
–
Power
–
–
–
Others
–
–
–
Region
Americas
–
–
1
Asia Pacific
–
–
–
Europe, Middle East & Africa
–
–
–
Country Designation
Designated Country
–
–
1
Non-Designated Country
–
–
–
Independent Review
Yes
–
–
–
No
–
–
1
Project Finance Advisory Services
The Equator Principles apply to all Project Finance Advisory Services where total project capital costs exceed USD 10 million or more.
The following 1 Project Finance Advisory Services was subject to Equator Principles and achieved financial close during the calendar year 2023:
EP Categories
Cat A
Cat B
Cat C
Total
–
1
–
Sector
Mining
–
–
–
Infrastructure
–
1
–
Oil & Gas
–
–
–
Power
–
–
–
Others
–
–
–
Region
Americas
–
–
–
Asia Pacific
–
–
–
Europe, Middle East & Africa
–
1
–
Country Designation
Designated Country
–
–
Non-Designated Country
–
1
–
Independent Review
Yes
–
1
–
No
–
–
–
Applying the Equator Principles
We have a team of internal environmental and social specialists (known as Environmental and Social Risk Management / ‘ESRM’) who support our business teams in ensuring that the Equator Principles are correctly applied to within-scope transactions. The ESRM team sits within the Chief Sustainability Officer organisation, and ensures the Bank’s systems and controls accurately embed our obligations as an Equator Principles signatory. This approach is governed by the Bank’s Sustainability Risk Policy.
The ESRM team is engaged by business teams to confirm Equator Principles categorisation in all identified Equator Principles transactions. This includes the review of environmental and social due diligence reports or advising on specific requirements of the Principles. For those projects that fall outside the obligations of the Equator Principles, the ESRM team ensures the correct application of our internal policies, procedures and standards. For more information on how we identify, manage and assess E&S risks, including for EP projects, please refer to our Environmental and Social Risk Management Framework.