The Equator Principles framework

As part of our commitment, we adopted the Equator Principles in March 2009. The Equator Principles are applied to our environmental and social risk assessment of projects and project-related transactions. We are one of a small number of export credit agencies that have adopted the Equator Principles.

For more information about the Equator Principles, visit the Equator Principles Association website.

Reporting of the Equator Principles

Principle 10 of the Equator Principles requires reporting on the implementation of the Principles, taking into account appropriate confidentiality considerations. Our reporting is provided according to the Australian financial year.

Our Procedure provides information on:

• the environmental and social review process for our transactions, including project finance and project-related corporate loans. We do not provide bridge loans or project finance advisory services (other financial products covered by the Equator Principles)
• our approval process
• our approach to including conditions covering environmental and social issues in our transaction documents
• how the Equator Principles are incorporated into our decision making.

Environmental and social risk evaluations, including Equator Principles reviews:

• are undertaken by specialist staff in our Credit Department
• are a distinct risk element within our decision making
• require approval of our Board when the transaction is associated with a Category A project (a project with potentially significant adverse environmental and/or social impacts) located outside Australia.

Transactions can be declined at any stage in negotiation or due diligence.

Each year, internal training is provided to relevant staff on the implementation of Export Finance Australia’s Policy and Procedure for environmental and social review of transactions which include the Equator Principles and the IFC Performance Standards.

The tables below summarise the number of transactions (involving projects) signed during 1 July 2022 and 31 December 2022 and 1 January 2023 to 30 June 2023.

The location, industry type, sector and results of screening and classification for individual projects supported by Export Finance Australia (including project finance and project-related corporate loans) are provided in our Annual Report and in our transaction register.

Breakdown 1 July 2022 and 31 December 2022

Project Finance

The total number of Project Finance transactions that reached Financial Close from 1 July 2022 to 31 December 2022 period was 1. The breakdown is:

* A list of designated countries is published by the Equator Principles Association here. Non-designated countries are those countries not found on the list.

Project-Related Corporate Loans

The total number of Project-Related Corporate Loans transactions that reached Financial Close from 1 July 2022 to 31 December 2022 period was 0. The breakdown is:

Breakdown 1 January 2023 and 30 June 2023

Project Finance

The total number of Project Finance transactions that reached Financial Close from 1 January 2023 to 30 June 2023 period was 2. The breakdown is:

* A list of designated countries is published by the Equator Principles Association here. Non-designated countries are those countries not found on the list.

Project-Related Corporate Loans

The total number of Project-Related Corporate Loans transactions that reached Financial Close from 1 January 2023 to 30 June 2023 period was 0. The breakdown is: