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Equator News Coverage
 For people and planet, San Francisco Chronicle, 4 April 2006
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Banks club together to turn their notes green THE AGE, June 22, 2003 A new code of conduct provides stricter guidelines for projects in developing countries. Can banks make money protecting the environment and powerless communities? The world's largest financial institution thinks so, and is trying to use its financial muscle to reduce the damage from dams, power stations, mines and other infrastructure projects. Citigroup and nine other international banks this month adopted the Equator Principles, a code of conduct requiring them to follow standards laid down by the World Bank for infrastructure projects. Led by Chris Beale, an Australian who is Citigroup's head of project finance, the banks have vowed to cut off money to companies that break the rules, including independent studies for the most sensitive projects. The move follows environmental group criticism of banks for harming developing countries by funding destructive development projects. So far, only one Australian bank, Westpac, has signed on. But Mr Beale predicts another six banks will sign up within two months, with 25 signatories in a year. "I would like to see more Australian banks come on board," he said. "Not only is it the right thing to do but there is a business proposition for it." Mr Beale, a protege of World Bank president James Wolfensohn, argues that the rules help projects get approved faster and reduce the damage to banks' reputations when projects go wrong. Citigroup and the other signatories provide about 30 per cent of the financing for the world's infrastructure projects and say they are prepared to withdraw money during construction if the rules are not followed. "We will not provide loans directly to projects where the borrower will not, or is unable to, comply with our environmental and social policies and processes," the principles say. Environmental groups have welcomed the agreement but are cautious about how it will work. "It is going to be really hard for a bank like Citigroup, which is really committed to make the Equator Principles work, when you have to question what these (other) banks' commitment is," Michelle Chan- Fishel, a program manager for Friends of the Earth, said. Among the first tests will be the $A4 billion Camisea natural gas project in Peru, which cuts through the Amazon rainforest. Friends of the Earth and other groups have asked Citigroup to withdraw its support for the two pipelines, wells and processing plant, which are slated to be built in a region with 198 species of bird per hectare, 118 varieties of fish and 152 plant species. The groups say equipment has fallen from helicopters into populated areas, drunk workers have entered isolated communities that had little previous outside contact and some indigenous women have resorted to prostitution. Citigroup points out that it helped the developers respond to the concerns by arranging meetings with local and international groups. The United States and Argentinian developers have agreed to ship in workers and equipment by helicopter, avoiding building damaging roads. They have also agreed to build the gas plant in an area that has already been deforested by farmers. The pipelines will be buried under the ground and covered by trees. Copyright © 2003 The Age Company Ltd |
Institutions Which Have Adopted the Equator PrinciplesABN AMRO Bank, N.V.ANZ Banco Bradesco Banco de la República Oriental del Uruguay Banco do Brasil Banco Galicia Banco Itaú BankMuscat Bank of America BMO Financial Group BTMU Barclays plc BBVA BES Group Calyon Caja Navarra CIBC CIFI Citigroup Inc. CORPBANCA Credit Suisse Group Dexia Group Dresdner Bank E+Co EKF Export Development Canada Financial Bank FMO Fortis HBOS HSBC Group HypoVereinsbank ING Group Intesa Sanpaolo JPMorgan Chase KBC KfW IPEX-Bank la Caixa Lloyds TSB Manulife MCC Mizuho Corporate Bank Millennium bcp National Australia Bank Nordea Nedbank Group Rabobank Group Royal Bank of Canada Scotiabank SEB Societe Generale Standard Chartered Bank SMBC TD Bank Financial Group The Royal Bank of Scotland Unibanco Wachovia Wells Fargo WestLB AG Westpac Banking Corporation Mailing ListClick here to start receiving press releases and other news about the Equator Principles.World Bank/IFC LinksWorld Bank Guidelines and Criteria Referenced in the Equator PrinciplesDevelopment Indicators Database IFC Guidelines and Policies Referenced in the Equator Principles Sector-Specific EHS Guidelines Performance Standards |
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China to bring in green loan benchmark, 25 January, 2008
A Question of Principles, Infrastructure Magazine, by Kimberley Gaskin, June 2007
Leaders challenge 'business as usual', Guardian, 6 November 2006
Polluters Clean Up Act to Attract Lenders, The Moscow Times, 12 October 2005
Mizuho To Adopt Environmental Standards In Project Financing, CNNfn, 26 October 2003
Dexia adhère aux "Equator principles", La Tribune, 22 September 2003 (in French)
Western Banks Set Standards for Eco-Friendly Lending. Japanese Banks Far Behind. NGO Keeping Close Watch, Nikkei, 5 September 2003
Equator Principles — Why Indian Banks Too Should be Guided by Them, The Hindu, 25 July 2003
Project finance — Standards for Lending, Financial Mail, 25 July 2003
Banks' green pledge earns mixed response, swissinfo, 10 June 2003
Bancos adotam princípios de responsabilidade social, Valor Econômico, 5 June 2003 (in Portuguese)
Zehn Banken werden zu Umweltschützern, Die Tageszeitung, 5 June 2003 (in German)
Major Banks Endorse Equator Principles, The Peninsula, Qatar, 5 June 2003
Loan rules with an eye on nature, International Herald Tribune, 5 June 2003
IFC Head's Remarks at Equator Principles Press Conference, 4 June 2003