Lloyds TSB Adopts Equator Principles for Project Finance Initiatives

London - 31 January 2008

Lloyds TSB Group has today announced it has adopted the Equator Principles (EP), a globally-recognised benchmark for assessing and managing social and environmental risks in Project Finance. The principles promote socially responsible conduct and sound environmental practices in relation to Project Finance initiatives and seek to provide a framework against which lending can be assessed.  The principles apply to all new Project Finance arrangements above US$10m.

Mike Chappell, Managing Director of Project Finance at Lloyds TSB, said: “Environmental and social factors have always been important for us in the way we carry out our business.  We have been expanding our project finance capability over the past few years and believe now is the right time to adopt these principles. We are looking forward to working with the other EP banks to ensure that these principles continue to play an important role in helping to shape responsible Project Finance.”

Truett Tate, Lloyds TSB’s Group Executive Director, Wholesale & International Banking, said “We introduced environmental assessment, a standard feature of all business lending, back in 1996 and were  acknowledged as one of the pioneers in respect of environmental reporting. Adopting the Equator Principles is another step in our commitment to environmental sustainability.

“We believe that by lending responsibly and by understanding the environment in which we and our customers operate in, we are committed to doing business in the right way”.

In May 2006, Lloyds TSB made a commitment to reduce its carbon emissions by 30 per cent by 2012. The bank is also a member of the United Nations Environment Program Financial Institutions (UNEP FI) initiative1, the Corporate Leaders Group on Climate Change2 and a founding associate of ClimateWise. Paul Turner, Head of Sustainable Development at Lloyds TSB, said: “This is an important statement of our commitment and supports the way we do business. Working with other businesses, we have a part to play bringing about tangible change in respect of environmental and social issues that impact our customers, our staff and society as a whole. Adopting these principles is another step on the journey towards that goal.

“We are keen to share ideas with fellow ‘Equator banks’ to further develop the principles over time.”

Notes to editors: For further information about the Equator Principles, please visit http://www.equator-principles.com

Introduced in 2003, 56 international banks have signed up to the voluntary Equator Principles, created by the World Bank’s International Finance Corporation.

1 UNEP FI is a global partnership between the United Nations Environment Programme and the financial sector. Over 160 financial institutions are signatories of the UNEP FI statements, which state a commitment to sustainable development, environmental management and building public awareness.

2 CLG is an initiative of the University of Cambridge Programme for Industry and the Prince of Wales Business and Environment Programme, and comprises business leaders who seek to develop policies for tackling climate change.

3 ClimateWise is an insurance industry association committed to taking action on climate change, and providing reporting on their progress.

For more information: Kirsty Clay Lloyds TSB Press Office Tel: 020 7356 1517