OCBC Bank (2022)

Equator Principles implementation is integrated into the bank’s ESG risk assessment and credit review process. Internally, we established Equator Principles Implementation Procedure in 2021 to guide business and credit risk managers on the Equator Principles requirement. In 2022, the Equator Principles e-learning course was made available to all OCBC employees.

We put in place an internal organization and implemented relevant processes and procedures to meet the implementation requirements under the Equator Principles. Consistent with the Bank’s overall risk management approach, the Bank manages the implementation of Equator Principles requirements by adopting the Three Lines of Defence model:

1) Business Relationship managers conduct ESG risk assessments on their clients, including identifying if proposed transactions fall within the scope of Equator Principles and conduct the initial risk assessment, obtaining further information from clients as necessary. They also perform regular monitoring of their client’s compliance to covenants (if any) and provide monitoring reports. A dedicated team of ESG specialists conduct enhanced due diligence to review and ensure that Equator Principles requirements are met according to their project categorizations.
2) Credit approving officers independently review and approve the ESG risk assessments, creating a structure of governance and control
3) Group Audit provides assurance that this process is effective and complies with regulations and our internal standards