Equator Principles Reporting 2020

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. 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.

Standard Chartered remains the Chair of the Equator Principles, with Amit Puri, Global Head of ESRM, fulfilling this role. As Chair of the Association we continue to support its progress as the leading risk management framework, including the implementation of the first ever Equator Principles strategy.

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 2020:

 ABC
Total48-
Sector   
Mining---
Infrastructure---
Oil & Gas12-
Renewables25-
Power11-
Others---
Region   
GCNA1--
ASA-3-
AME24-
EA11-
Country Designation   
Designated Country11-
Non-Designated Country37-
Independent Review   
Yes48-
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 2020:

 ABC
Total21-
Sector   
Mining---
Infrastructure-1-
Oil & Gas1--
Power---
Others1--
Region   
GCNA1--
ASA---
AME1--
EA-1-
Country Designation   
Designated Country-1-
Non-Designated Country2--
Independent Review   
Yes21-
No---

*the criteria for Project-Related Corporate Loans has been updated in Equator Principles 4 which was effective in October 2020.

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 Sustainable Finance, and ensure the Bank’s systems and controls accurately embed our obligations as an Equator Principles signatory. This approach is governed by the Bank’s Reputational Risk and Sustainability Framework.

ESRM must be 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, ESRM ensures the correct application of our internal policies, procedures and standards.

During the 2020 reporting period, ESRM reviewed over 1,090 client relationships and transactions in relation to environmental and social risk matters, including 15 Equator Principles projects. Further, the team delivered training on ESRM, including the Equator Principles, to over 1,600 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.