Sustainability Risk Management

The Equator Principles
The Equator Principles
The Equator Principles
  • The EPs
    The EPs

    •The Equator Principles

    The Equator Principles (EPs), which are formulated by the Equator Principles Association, is a risk management framework for determining, assessing and managing environmental and social risk in projects to be financed. The EPs apply globally to all industry sectors, and are voluntarily adopted by financial institutions to reduce the impact on the environment and society as a result of the financed projects.

    •Equator Principles Adoption

    Adopting the EPs has been an important element of the sustainability risk management framework formulated by Taipei Fubon Commercial Bank (TFB), and joining the Equator Principles Association, planned in July 2015 and completed in December 2017, embodies TFB’s commitments in environmental protection and corporate social responsibility.


     
    http://equator-principles.com/

    •Requirements for the EPs Compliance

    TFB has amended the credit policies and the related operating procedures to incorporate the EPs into the sustainability risk management framework, and the required procedures for the EPs compliance are presented below:
    Step1 Categorization
    Each credit application to which the EPs apply should be classified into one of the following categories:
    • Category A:projects with potential significant adverse environmental
      and social risks and/or impacts that are diverse, irreversible or
      unprecedented;
    • Category B:projects with potential limited adverse environmental and
      social risks and/or impacts that are few in number, generally
      site-specific, largely reversible and readily addressed through mitigation measures;
    • Category C:projects with minimal or no adverse environmental and
      social risks and/or impacts.
    The additional procedures listed below are required for the Category A and Category B, and may be waived for the Category C.
    Step2 Additional Requirements for Credit Assessment
    For the Category A and Category B, the additional requirements for due
    diligence and document reviews to comply with the EPs include:
    • Assessments for environmental and social risks and/or impacts
      conducted by an independent third party acceptable to TFB;
    • Site Visits;
    • Covenants to comply with the EPs included in the loan related
      agreements;
    • Monitoring and reporting for the required environmental and social risk
      items according to the approved terms and conditions.
    Step3 Credit Approval
    The results of the environmental and social risk assessment for each credit application are included in the consideration for approval.
    Step4 Additional Requirements for Loan Agreements
    For the Category A and Category B, covenants to comply with the EPs are required to be included in the loan related agreements for the EPs
    compliance.
    Step5 Additional Requirements for Credit Reviews
    For the Category A and Category B, monitoring and reporting procedures
    for the required environmental and social risk items should be performed
    to comply with the EPs, and clients should provide the related information
    according to the EPs transparency requirements.


    •Roles and Responsibilities in the Required Procedures for the EPs
    Compliance

    To implement guidelines established for the EPs compliance, roles and
    responsibilities in the required procedures are presented as follows:
    Training for the EPs
  • Statistics
    Statistics

    •Project Finance Advisory Services

    Total number mandated in 2018 2018(Grace Period for Disclosure)
    0
    • By Sector
    Mining 0
    Infrastructure 0
    Oil & Gas 0
    Power 0
    Others 0
    • By Region
    Americas 0
    Europe, Middle East and Africa 0
    Asia Pacific 0


    •Project Finance

    Total number closed in 20182018(Grace Period for Disclosure)
    Category
    A
    Category
    B
    Category
    C
    000
    •By Sector
    Mining 0 0 0
    Infrastructure 0 0 0
    Oil & Gas 0 0 0
    Power 0 0 0
    Others 0 0 0
    •By Region
    Americas 0 0 0
    Europe, Middle East and Africa 0 0 0
    Asia Pacific 0 0 0
    •By Country Designation
    Designated Country 0 0 0
    Non-designated Country 0 0 0
    •Independent Review
    Required 0 0 -
    Not-required - - 0

    Project Name/CodeSectorHost Country
    N/A N/A N/A

    •Project-related Corporate Loans

    Total number closed in 20182018(Grace Period for Disclosure)
    Category
    A
    Category
    B
    Category
    C
    000
    •By Sector
    Mining 0 0 0
    Infrastructure 0 0 0
    Oil & Gas 0 0 0
    Power 0 0 0
    Others 0 0 0
    •By Region
    Americas 0 0 0
    Europe, Middle East and Africa 0 0 0
    Asia Pacific 0 0 0
    •By Country Designation
    Designated Country 0 0 0
    Non-designated Country 0 0 0
    •Independent Review
    Required 0 0 -
    Not-required - - 0