The Equator Principles
May 2008 marked the fifth anniversary of the Equator Principles - the voluntary `gold standard' used by financial institutions globally to manage environmental and social risks in project finance.
May 2008 marked the fifth anniversary of the Equator Principles - the voluntary ‘gold standard’ used by financial institutions globally to manage environmental and social risks in project finance.
The Principles were launched in 2003, when 10 banks - Barclays included - agreed to apply social and environmental principles to their project finance transactions. The Equator Principles are based on the International Finance Corporation (IFC) Performance Standards on social and environmental sustainability, and on the Environmental, Health and Safety Guidelines. The Principles are applied globally and across all industry sectors by Equator Principle financial institutions. The Principles apply to all new project finance deals above US$10m. The Principles form part of our Environmental and Social Impact Assessment (ESIA) policy and process. This process ensures that projects are developed in a socially-responsible manner and follow robust environmental practice.
Barclays and the Principles
As Chair bank of the Equator Principles for 2007-2008, Barclays has continued to lead their development, including reaching out to banks in emerging economies. During the year we also became Chair of the Principles’ Climate Change Working Group, to provide the IFC with comment on its emerging climate strategy.
In 2008, Barclays assessed environmental and socials risk on 260 funding proposals, including 31 projects against the Principles. For an Equator Principles case study and for a case study on managing environmental and social risks beyond project finance, follow the links below.
Beyond the Equator Principles
We follow internal guidelines for managing social and environmental risk in both project finance transactions and wider lending.
Equator Principles in action
Barclays has a robust process for applying the Principles. One example was an emerging economy mining project finance transaction.
Sustainable finance in China
Barclays is playing a leading role in promoting sustainable finance in the country, using our established relationships and profile to communicate our experience and best practice in this crucial area to China's banks.
