The Equator Principles is a risk management framework for determining, assessing and managing social and environmental risks in large infrastructure and industrial projects.
We commit to implementing the Equator Principles through our internal environmental and social policies, procedures and standards for financing projects. We will not provide Project Finance, Project-Related Corporate Loans to Projects or Project-Related Refinance and Project-Related Acquisition Finance to projects which do not comply with the relevant Equator Principles requirements. These types of finance we refer to collectively as “Project Finance”.
We use the Equator Principles as a minimum standard for due diligence and monitoring to support responsible decision-making for Project Finance.
We will engage a third-party expert to prepare a social and environmental due diligence report where our initial due diligence indicates a likely Category A or Category B rating under the Equator Principles. The report will assess the project’s compliance with the Equator Principles and typically considers the following issues:
- Social and environmental risks arising from the project
- Customer capacity to manage social and environmental issues
- How an Environmental Impact Assessment (if any) will be implemented through the company’s Environmental 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
The Equator Principles complement our sensitive sector Requirements and our Social and Environmental Risk Policy which also apply to Project Finance transactions.
Click here for more information about the Equator Principles and click here for more information about ANZ's approach to social and evironmental risk management.