Sumitomo Mitsui Trust Bank, Limited Signs the “Equator Principles”
Tokyo, 1 February 2016
Sumitomo Mitsui Trust Bank, Limited (President: Hitoshi Tsunekage; hereinafter “SuMi TRUST Bank”), which is a subsidiary of Sumitomo Mitsui Trust Holdings, Inc. (President: Kunitaro Kitamura; hereinafter “SuMi TRUST Holdings”), today announces that it has become a signatory to the “Equator Principles”, which is the international framework for environmental and social risk management involved in project financing.
SuMi TRUST Group considers that the effect on the environment and society exerted by its investments and loans to customers is the most important issue affecting both the corporate value of the group as well as its influence on society.
Large-scale development projects can greatly affect the natural environment and local communities. SuMi TRUST Bank is aware of the indirect burden it may place on them through project financing. As a sound financial institution, it is an important duty to avoid or reduce the risk of causing the value of a loan claim to drop in case a project is interrupted owing to environmental or social problems.
In its project finance decision process, SuMi TRUST Bank must confirm that a project takes fully into consideration the environment and society. The adoption of the Equator Principles is part of the group’s risk management framework to monitor the environmental and social impact of a project after it has started.
Currently 82 financial institutions in 36 countries officially abide by the Equator Principles. The contents are available on the Equator Principles Association’s official website: http://www.equator-principles.com/