Mizuho will Assume the Chair of the Equator Principles Association

First Asian Bank to Hold the Chair Position

Mizuho Bank, Ltd. (MHBK; Yasuhiro Sato, President and CEO) will take on the role of Chair of the Equator Principles Association (EPA) from 1st May. This is the first time an Asian bank has been appointed as the EPA Chair. The EPA is an association of 79 global financial institutions that adopt the Equator Principles (EPs), supporting sound and responsible project development with environmental and social consideration.

The EPs are a risk management framework adopted by EP financial institutions (EPFIs) for determining, assessing and managing environmental and social risk in large-scale infrastructure or industrial projects when providing finance. These are a set of voluntary standards under which EPFIs request certain actions from the borrower to ensure the project is executed in an environmentally and socially sound manner.

First launched by US and European financial institutions in June 2003, the EPs are now a global standard for conducting large-scale development projects, adopted by 79 of the major banks around the world. In October 2003, Mizuho Bank (formerly Mizuho Corporate Bank) became the first Asian bank to adopt the EPs, in order to fulfill its responsibilities as an international bank with global operational presence.

In recent years, large natural resource development and infrastructure projects have been embarked upon in emerging countries including in Asia. On the other hand, the institutional framework to manage environmental and social aspects is still in the process of developing in these regions. MHBK has been leading the EPA’s EP Outreach Working Group in Asia since August 2010, concentrating on communicating with the local governments and banks to expand and deepen their understanding of the EPs.

Helping the institutions build E&S risk management capacity through seminars, hosting of trainees, etc., MHBK’s efforts have been instrumental in having initial member banks from China and India adopt the EPs.

MHBK is firmly committed to play a leadership role among EPFIs as the first Asian Chair to pursue the sustainable economic development of emerging markets in Asia and all around the world by taking advantage of its long experience in executing EP-based project finance.

For further information go to: http://www.mizuhobank.com/index.html

Mizuho will Assume the Chair of the Equator Principles Association

First Asian Bank to Hold the Chair Position

Mizuho Bank, Ltd. (MHBK; Yasuhiro Sato, President and CEO) will take on the role of Chair of the Equator Principles Association (EPA) from 1st May. This is the first time an Asian bank has been appointed as the EPA Chair. The EPA is an association of 79 global financial institutions that adopt the Equator Principles (EPs), supporting sound and responsible project development with environmental and social consideration.

The EPs are a risk management framework adopted by EP financial institutions (EPFIs) for determining, assessing and managing environmental and social risk in large-scale infrastructure or industrial projects when providing finance. These are a set of voluntary standards under which EPFIs request certain actions from the borrower to ensure the project is executed in an environmentally and socially sound manner.

First launched by US and European financial institutions in June 2003, the EPs are now a global standard for conducting large-scale development projects, adopted by 79 of the major banks around the world. In October 2003, Mizuho Bank (formerly Mizuho Corporate Bank) became the first Asian bank to adopt the EPs, in order to fulfill its responsibilities as an international bank with global operational presence.

In recent years, large natural resource development and infrastructure projects have been embarked upon in emerging countries including in Asia. On the other hand, the institutional framework to manage environmental and social aspects is still in the process of developing in these regions. MHBK has been leading the EPA’s EP Outreach Working Group in Asia since August 2010, concentrating on communicating with the local governments and banks to expand and deepen their understanding of the EPs.

Helping the institutions build E&S risk management capacity through seminars, hosting of trainees, etc., MHBK’s efforts have been instrumental in having initial member banks from China and India adopt the EPs.

MHBK is firmly committed to play a leadership role among EPFIs as the first Asian Chair to pursue the sustainable economic development of emerging markets in Asia and all around the world by taking advantage of its long experience in executing EP-based project finance.

For further information go to: http://www.mizuhobank.com/index.html

Mizuho will Assume the Chair of the Equator Principles Association

First Asian Bank to Hold the Chair Position

Mizuho Bank, Ltd. (MHBK; Yasuhiro Sato, President and CEO) will take on the role of Chair of the Equator Principles Association (EPA) from 1st May. This is the first time an Asian bank has been appointed as the EPA Chair. The EPA is an association of 79 global financial institutions that adopt the Equator Principles (EPs), supporting sound and responsible project development with environmental and social consideration.

The EPs are a risk management framework adopted by EP financial institutions (EPFIs) for determining, assessing and managing environmental and social risk in large-scale infrastructure or industrial projects when providing finance. These are a set of voluntary standards under which EPFIs request certain actions from the borrower to ensure the project is executed in an environmentally and socially sound manner.

First launched by US and European financial institutions in June 2003, the EPs are now a global standard for conducting large-scale development projects, adopted by 79 of the major banks around the world. In October 2003, Mizuho Bank (formerly Mizuho Corporate Bank) became the first Asian bank to adopt the EPs, in order to fulfill its responsibilities as an international bank with global operational presence.

In recent years, large natural resource development and infrastructure projects have been embarked upon in emerging countries including in Asia. On the other hand, the institutional framework to manage environmental and social aspects is still in the process of developing in these regions. MHBK has been leading the EPA’s EP Outreach Working Group in Asia since August 2010, concentrating on communicating with the local governments and banks to expand and deepen their understanding of the EPs.

Helping the institutions build E&S risk management capacity through seminars, hosting of trainees, etc., MHBK’s efforts have been instrumental in having initial member banks from China and India adopt the EPs.

MHBK is firmly committed to play a leadership role among EPFIs as the first Asian Chair to pursue the sustainable economic development of emerging markets in Asia and all around the world by taking advantage of its long experience in executing EP-based project finance.

For further information go to: http://www.mizuhobank.com/index.html

UPDATED - Guidance for EPFIs on Incorporating Environmental and Social Considerations into Loan Documentation

12 March 2013

Following the launch of the Equator Principles (EP) III in June 2013 and end of the EP III transition period, the EP Association has updated its guidance document for Equator Principles Financial Institutions (EPFIs) on incorporating environmental and social considerations in to loan documentation.

The Guidance for EPFIs on Incorporating Environmental and Social Considerations into Loan Documentation, originally published in 2009, has been revised to reflect the new language and extended scope of EP III, and now includes specific clauses on Independent Environmental and Social Consultant Reviews and reporting requirements for borrowers.

Note the guidance document is for use by EPFIs to assist them in incorporating environmental and social considerations into loan documentation (as appropriate) and is not a required legal framework.

Further resources can be found on the Best Practice and Resources page.

NEW - Guidance for Consultants on the Contents of a Report for an Independent Environmental & Social Due Diligence Review

12 March 2013

The Equator Principles (EP) Association is pleased to share the new guidance note, “Guidance for Consultants on the Contents of a Report for an Independent Environmental & Social Due Diligence Review”  for use by consultants to support their engagement with EPFIs when undertaking an Independent Environmental and Social Due Diligence Review (as described in Principle 7 of the EP).

This guidance document  can also be used by EPFIs to assess whether an Independent Review delivered by a Consultant is appropriate. It should be noted that EPFIs may have additional requirements for an Independent Review which are specific to a particular Project and are not covered in this guidance document

Further resources can be found on the Best Practice and Resources page.

Impact investing grows as asset managers recognise value

12 February 2014 - Guardian Sustainable Business, Justina Alders-Sheya

Stakeholders increasingly expect to see evidence that their money is being invested responsibly - impact investing can provide that assurance. The Equator Principles are often used as a reporting standard to ensure investments are adding real value. With a growing focus on the environment, our social footprint and the principles of ethical corporate governance, the investment process, across all of these asset classes, is evolving. The term 'impact investing' is increasingly being used to describe when asset managers proactively integrate one or more of these three elements into their investment strategy. It represents a move towards a new way of investing, with social conscience at the forefront of every deal. Read More.

The Equator Principles: Ten Teenage Years of Implementation and a Search for Outcome

30 January 2014 - CIGI Series, Olaf Weber and Emmanuel Acheta

This paper correlates these 10 years of existence to the adolescent stage of the EPs, still seeking to establish relevance. Environmental and social assessment of projects is increasing in global adoption and scope and the EPs strive to redefine these assessment practices. Critics reason, however, that without implementation efforts and enforcement, the EPs are merely window dressing and will not contribute to any change to sustainable development. The authors point out gaps in how EPFIs address the implementation of guidelines in project finance decision making, how projects implement environmental and social assessment processes in practice and whether the implementation will have a positive effect on project sustainability. The paper concludes that these gaps need further research and analysis to better understand the role of the EPs in sustainable development. Read More.

Launch of the Cross Sector Biodiversity Initiative Timeline Tool

27 January 2014

The Cross Sector Biodiversity Initiative (CSBI) has launched a Timeline Tool designed to assist project planning in the extractives industries to better align project development, biodiversity impact management, and financial timelines and milestones.

The tool:

  • Provides a road-map that helps to identify critical milestones and inter-dependencies between project development and financing timelines
  • Identifies actions required to apply the mitigation hierarchy to effectively address potential impacts as early as possible in the project life-cycle
  • Raises awareness and highlights sensitivities and operational challenges associated with biodiversity impact mitigation
  • Can be used as an internal capacity building resource or communications tool as it supports the work of a variety of functions in project planning and execution.

Download

CSBI Timeline Tool

About the CSBI

The Cross Sector Biodiversity Initiative (CSBI) is a partnership between IPIECA, the International Council on Mining and Metals (ICMM), and the Equator Principles Association. The initiative aims to develop and share good practices for the effective application of the new International Finance Corporation (IFC) Performance Standard 6 on Biodiversity Conservation and the Sustainable Management of Living Natural Resources.  The aim of the CSBI is to bring together industry in order to share experiences as part of a culture of learning and continuous improvement.

New Year, New Principles - Transition Period Ends and EP III Mandatory for New Transactions as of 1 January 2014

1 January 2014

The transition period for the Equator Principles (EP) dated June 2013 ended on 31 December 2013 and the third version of the EP ('EP III') is mandatory for all new transactions (where the mandate is signed after 31 December 2013) from 1 January 2014. EP III does not apply retroactively therefore EP Association Members are not expected to switch from EP II to EP III for transactions where the mandate was signed before 1 January 2014.

Note that the EP Association Steering Committee accepts that in certain situations there might be legal constraints that prevent EP Association Members applying EP III from 1 January 2014, however each member should make all necessary efforts to ensure EP III is incorporated into their institution's review of transactions according to their own risk management frameworks and engagement with clients from this date.

If you have any questions about EP III and the change from EP II to EP III, please contact the EP Secretariat via JLIB_HTML_CLOAKING

Sustainable Finance South Africa December 2013

12 December 2013 - Sustainable Finance South Africa December 2013, WWF South Africa Newsletter

A key skills set of banking is defining, pricing and managing credit risk. A company's credit risk can be affected by many factors such as market dynamics of the industry in which the company operates, environmental impacts such as water quality, and the reliability and robustness of the technology used by a company. All these sometimes interdependent factors make credit risk a complex, specialised area of expertise within a bank.

Biodiversity risk is an important area of non-financial risk that can impact credit. With this in mind, WWF-SA, in partnership with the Equator Principles Association, Forest Trends and Business and Biodiversity Offsets Programme, hosted a Banking for Biodiversity workshop in Johannesburg. Read More.