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Equator Principles - Corporate Responsibility
Equator Principles
ANZ has adopted the Equator Principles, a set of voluntary standards designed to help banks identify and manage the social and environmental risks associated with the direct financing of large infrastructure projects like dams, mining and pipelines.
About the Equator Principles
The Equator Principles were established in association with the World Bank's International Finance Corporation (IFC) in 2003 and updated in 2006. They have been adopted by nearly 50 banks around the world, covering over 85% of the global project finance market.
The Equator Principles are designed to have effect primarily in countries with developing legal frameworks. They have particular relevance to ANZ as we are a financier of projects in emerging Asian economies.
By adopting the Equator Principles, ANZ has committed to fund only new projects that can be developed and operated according to sound social and environmental standards.
What the Principles Require
A project within the scope of the Equator Principles is evaluated against comprehensive international performance standards on issues such as labour and working conditions, natural resource management, pollution prevention, impacts on Indigenous people, and community health and safety.
Projects with a high social or environmental impact must consult with local communities about concerns those communities may have, and prepare a management and monitoring plan describing the actions needed to adequately mitigate the social and environmental risks of the project.
ANZ is required under the Equator Principles to ensure these steps are carried out in collaboration with our clients.
The Principles do not prescribe for a bank what projects it should be involved in and those it should avoid, but rather ensure the bank makes an informed decision, by requiring a thorough analysis of potential social and environmental impacts.
Going Further
The Equator Principles are limited in their scope to project finance deals over $10 million in size. However, ANZ has decided to comply with the Principles for all project finance proposals, regardless of their size or geographic location.
Training our staff
Seventy five per cent of Project Finance employees in Melbourne, Sydney, Hong Kong and Singapore have received training from an external expert on how to apply the Equator Principles in practice.
Progress in 2009
Half year results: October 2008 - March 2009
Projects reviewed
| Categories | Reviewed | Conformed to EP | Financed |
|---|---|---|---|
| Category A | 0 | 0 | 1 |
| Category B | 3 | 3 | 3 |
| Category C | 4 | 4 | 5 |
| Total | 7 | 7 | 9* |
*Two projects financed in 2009 were assessed in 2008.
Location of projects
| Categories | Projects in High Income OECD Countries | Projects Outside High Income OECD Countries |
|---|---|---|
| Category A | 0 | 0 |
| Category B | 3 | 0 |
| Category C | 4 | 0 |
| Total | 7 | 0 |
Projects reviewed by sector
| Categories | Natural resources | Infrastructure | Power & Utilities | Diversified |
|---|---|---|---|---|
| Category A | 0 | 0 | 0 | 0 |
| Category B | 1 | 0 | 2 | 0 |
| Category C | 0 | 3 | 1 | 0 |
| Total | 1 | 3 | 3 | 0 |
The future
ANZ maintains its commitment to assess all large project finance proposals using the Equator Principles.
© Australia and New Zealand Banking Group Limited (ANZ) 2009 ABN 11 005 357 522. ANZ's colour blue is a trade mark of ANZ.