Equator Principles

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Background

Efic chose to adopt the Equator Principles in March 2009. These Principles are used by adopting financial institutions for determining, accessing and managing environmental and social risk in projects. More information about the Equator Principles is available on the Equator Principles Association website

Reporting

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. This update is relevant for the 2017 financial year.

Our Procedure provides information on:

  • the environmental and social review process for all of our transactions, including project finance and project-related corporate loans. We do not provide bridge loads 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 Efic’s 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 the Efic 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.

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

The table below summarises the number of transactions signed for the past three financial years. The location, industry type, sector and results of screening and classification for individual projects supported by Efic (including project finance and project-related corporate loans) are provided in our Annual Report and in our transaction register

Financial year

Environmental / social impact category

  Category A Category B Category C
2016-17      
All facilities 0 0 5
Project finance 0 0 0
Project-related corporate loans 0 0 0
2015-16      
All facilities 2 0 7
Project finance 1 0 0
Project-related corporate loans 0 0 0
2014-15      
All facilities 0 2 5
Project finance 0 0 0
Project-related corporate loans 0 0 0