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Equator Principles

As a signatory since 2006, we have integrated compliance with the Equator Principles into its policies and processes.

The Equator Principles is a financial industry benchmark for determining, assessing and managing environmental and social risk in projects. Our reporting page on the Equator Principles' website can be found here.

About the Equator Principles

The Equator Principles is a risk management framework for determining, assessing and managing social and environmental risks in major projects, such as mines, windfarms and pipelines. The Equator Principles provide a minimum standard for due diligence and monitoring to support responsible decision-making across five products:

  • Project Finance Advisory Services
  • Project Finance
  • Project-Related Corporate Loans
  • Project-Related Bridge Loans
  • Project-Related Refinance and Project-Related Acquisition Finance.

When determining whether a project complies with the Equator Principles, a social and environmental due diligence report prepared by a third-party expert is typically commissioned. Matters examined include:

  • client capacity and commitment to manage social and environmental issues
  • the scope of the transaction, including the value of the loan and whether is it specific to a project or for general corporate purposes
  • how an Environmental Impact Assessment (if required) will be implemented through the company's Environment Management System
  • the level of community concern regarding potential impacts of the project, for example on water or land, and effectiveness of the company's stakeholder engagement in response to any significant community concern

We will not provide finance to projects where the customer will not, or is unable to, comply with the Equator Principles.

Implementing the Equator Principles is a joint responsibility of our relationship managers, credit officers and specialist Equator Principles resources, with advice from qualified independent consultants as required.  

We regard the Equtor Principles as complementary to our sensitive sector requirements and our Social and Environmental Risk Policy.

 

What the Equator Principles require

The Equator Principles do not prescribe what projects we should be involved with or what we should avoid, but instead help us make an informed decision by requiring thorough analysis of potential social and environmental impacts.

Projects assessed as being within the scope are evaluated against the Equator Principles, including against comprehensive international performance standards (“IFC performance standards”) on issues such as labour and working conditions, natural resource management, pollution prevention, impacts on Indigenous people, community health and safety and universal themes such as gender and human rights.

Projects with a high social or environmental impact are required to consult with local communities about concerns those communities may have. Following consultation they must then prepare a management and monitoring plan describing the actions needed to adequately mitigate the social and environmental risks of the project.

We are required under the Equator Principles to ensure these steps are carried out in collaboration with our customers.

We provide further details on our application of the Equator Principles in our ESG reporting.

ANZ's 2021 Environment, Social and Governance (ESG) Supplement

This report provides detailed information on ANZ's sustainability performance and challenges. In response to stakeholder feedback, for the first time, we're releasing our ESG Supplement at the same time as the Annual Report.

2021 ESG Supplement (PDF 10.1MB)

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