Equator Principles Reporting 2017

About the Equator Principles

The Equator Principles is a risk management framework, adopted by financial institutions, for determining, assessing and managing environmental and social risk in projects. It is primarily intended to provide a minimum standard for due diligence to support responsible risk decision-making. We have been a member of the Equator Principles since 2003.

To align with the Equator Principles Reporting Requirements, the data in this document has been updated since our 2017 Sustainability Summary.

The Equator Principles apply to all project finance loans where total project capital costs exceed USD10 million.

The following project finance transactions achieved financial close during the calendar year 2017:

 ABC
Total191
Sector   
Mining-1-
Infrastructure-31
Oil & Gas-3-
Power-1-
Others11-
Region   
Americas---
Europe, Middle East & Africa-8-
Asia Pacific111
Country Designation   
Designated Country---
Non-Designated Country191
Independent Review   
Yes191
No---

The Equator Principles apply to Project-Related Corporate loans where all four of the following criteria are met:

  • The majority of the loan is related to a single project over which the client has effective operational control (either direct or indirect).
  • The total aggregate loan amount is at least USD100 million.
  • Our individual commitment (before syndication or sell down) is at least USD50 million.
  • The loan tenor is at least two years.

The following Project-Related Corporate Loans were subject to Equator Principles and achieved financial close during the calendar year 2017:

 ABC
Total12-
Sector   
Mining---
Infrastructure---
Oil & Gas1--
Power-1-
Others---
Region   
Americas-1-
Europe, Middle East & Africa1--
Asia Pacific-1-
Country Designation   
Designated Country-1-
Non-Designated Country11-
Independent Review   
Yes12-
No---

The Equator Principles apply to all Project Finance Advisory Services where total Project capital costs are USD10 million or more.

The following Project Finance Advisory Services achieved financial close during the calendar year 2017:

Total1
Sector 
Mining-
Infrastructure-
Oil & Gas1
Power-
Others-
Region 
Americas-
Europe, Middle East & Africa1
Asia Pacific-
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. During the 2017 reporting period, ESRM reviewed over 480 client relationships and transactions in relation to environmental and social risk matters.

As of the reporting date, the ESRM team comprises seven individuals in total. The team sits within our Group Corporate Affairs function. The ESRM team ensures the Bank’s environmental and social procedures which embed the Equator Principles and is governed by the Bank’s Reputational Risk Policy is integrated into the Bank’s system and controls. The procedures set out our requirements for client and transaction-level environmental and social risk assessment, which are embedded in our business and credit approval processes.

The ESRM team must be engaged by business teams to confirm Equator Principles categorisation in all identified Equator Principles transactions. The team also provides more detailed support where required, such as reviewing environmental and social due diligence reports or advising on specific requirements of the Principles.

During the 2017 reporting period, the team delivered training on the Equator Principles to over 560 business and risk representatives, to highlight procedural requirements and supporting resources.