Equator Principles

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Background

Export Finance Australia voluntarily 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 2019 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 Export Finance Australia’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 Export Finance Australia 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 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 table below summarises the number of transactions (involving projects) signed for the past three financial years. 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.  

 

Category A 

Category B 

Category C 

2018-19 

 

 

 

All facilities 

1 

1 

3 

Project finance 

1 

0 

0 

Project-related corporate loans 

0 

0 

0 

2017-18 

 

 

 

All facilities 

0 

1 

6 

Project finance 

0 

0 

0 

Project-related corporate loans 

0 

0 

0 

2016-17 

 

 

 

All facilities 

0 

0 

5 

Project finance 

0 

0 

0 

Project-related corporate loans 

0 

0 

0