When Seeking Long-Term Profit, Consider Long-Term Environmental Risks

6 April 2012 - Triple Pundit

While investment banks have typically financed whatever clients request, the Equator Principles developed by the World Bank have set environmental and social guidelines that have taken hold because they also address and mitigate investment risk. For project finance, which includes $315 billion of annual debt and equity going to new energy or infrastructure developments worldwide, the Equator Principles are applied in nearly 75 percent of those transactions, many of which happen in emerging economies (Project Finance; Environmental Data Services 2008). These principles have gradually spilled over into the everyday financings of some investment banks. Read More.