A Sustainability Framework for International Finance

3 August 2011 - Forbes, Francis Vorhines, Earthmind

The financial press has focused these last days on the raising of the US debt ceiling to avoid a potential default on US government borrowings. With close to 50% of the publically-held US debt now in the hands foreign investors, including the central banks of Brazil, China, Japan and the UK, the deliberations in the US Congress were indeed material to the sustainability of international finance. ... The IFC’s Sustainability Framework – which will become operational in January 2012 – also provides the basis for the Equator Principles which are “a credit risk management framework for determining, assessing and managing environmental and social risk in project finance transactions.” These Principles have been adopted by over 70 financial institutions, such as Citigroup, HSBC and Société Générale, covering over 70% of international project finance debt in developing countries. Read More.