Equator Principles Reporting 2019

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.

In November 2019, Standard Chartered was appointed as the chair for the Equator Principles, with Amit Puri, Global Head of ESRM, fulfilling this role. 

To align with the Equator Principles reporting requirements, the data in this document has been restated since our 2019 Sustainability Report. The information restated includes the change of 1 financial product, 1 country and 1 industry.

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 2019:

 ABC
Total67-
Sector   
Mining---
Infrastructure-2-
Oil & Gas21-
Power44-
Others---
Region   
Americas---
Europe, Middle East & Africa44-
Asia Pacific23-
Country Designation   
Designated Country-2-
Non-Designated Country65-
Independent Review   
Yes67-
No---

The Equator Principles apply to all Project-Related Corporate Loans (including Export Finance in the form of Buyer Credit) where all four of the following criteria are met:

  1. The majority of the loan is related to a single Project over which the client has Effective Operational Control (either direct or indirect).
  2. The total aggregate loan amount is at least US$100 million.
  3. The EPFI’s individual commitment (before syndication or sell down) is at least US$50 million.
  4. The loan tenor is at least two years.

The following Project-Related Corporate Loans achieved financial close during the calendar year 2019:

 ABC
Total112
Sector   
Mining---
Infrastructure--2
Oil & Gas-1-
Power1--
Others---
Region   
Americas-1-
Europe, Middle East & Africa1--
Asia Pacific--2
Country Designation   
Designated Country-12
Non-Designated Country1--
Independent Review   
Yes112
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. During the 2019 reporting period, ESRM reviewed over 1,100 client relationships and transactions in relation to environmental and social risk matters.

The ESRM team sits within Sustainable Finance, ensuring 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 2019 reporting period, the team delivered training on the Equator Principles to over 1,100 business and risk representatives, to highlight procedural requirements and supporting resources.

Find out more about the Equator Principles and view Standard Chartered’s EP reporting for previous years at www.equatorprinciples.com.