Equator Principles
Introduced in June 2003 and adopted by 41 banks and financial institutions, the Principles have been a huge step forward for the project finance industry.
The Equator Principles and ING
By adopting the new Principles, ING commits itself with renewed vigour to certain socio-environmental standards in project financing. But what exactly do the Principles mean?
Any project that falls within the scope of the Principles undergoes a risk assessment on its possible socio-environmental risks. In other words, these non-financial risks feature prominently in our overall risk analysis.
By addressing these risks ING lowers the credit risk of its own portfolio and helps clients design more socially and environmentally responsible projects.
The Equator Principle Advisory Team
A dedicated team is responsible for embedding the Principles within ING.
Operating independently from the commercial units, our EP Advisory Team provides training, guidance and compliance advice on implementing the Principles.
In all high risk transactions, the EP Advisory team not only advises the deal team on compliance with the Principles throughout the life of ING’s involvement in the transactions, but also advises decision making authorities on critical approval decisions.
On 6 July 2006 ING and other financial institutions announced a revised version of the Equator Principles:
- The Principles apply globally and to all industrial sectors;
- The Principles are now based on stronger and better social and environmental standards, including more robust public consultation standards;
- The Principles apply to all projects with capital costs above USD 10 million (the threshold has been lowered from USD 50 million);
- The Principles also apply to project finance advisory activities;
- The Principles apply to upgrades or expansions of existing projects where the additional environmental or social impacts are significant (so far it was limited to new projects);
- The approach in applying the Principles to countries with existing high standards for environmental and social issues has been streamlined;
- Each EPFI is now required to report on the progress and performance of Equator Principles’ implementation on an annual basis;
ING Equator Principles figures 2010
