The Equator Principles
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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 CategorizationEach 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.
Step2 Additional Requirements for Credit AssessmentFor 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 ApprovalThe results of the environmental and social risk assessment for each credit application are included in the consideration for approval.Step4 Additional Requirements for Loan AgreementsFor 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 ReviewsFor 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
To implement guidelines established for the EPs compliance, roles and
Compliance
responsibilities in the required procedures are presented as follows:•Training for the EPs - Category A:projects with potential significant adverse environmental
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Statistics
Statistics
- Project Finance Advisory Services
Total number mandated in 2022 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 2022 Category A B C 0 4 6 • By Sector Mining 0 0 0 Infrastructure 0 0 0 Oil & Gas 0 0 0 Power 0 4 6 Others 0 0 0 • By Region Americas 0 0 0 Europe, Middle East and Africa 0 0 0 Asia Pacific 0 4 6 • By Country Designation Designated Country 0 0 0 Non-designated Country 0 4 6 • Independent Review Required 0 4 4 Not-required 0 0 2
Project Name/Code Sector Host Country Power Project 1 Power Generation Taiwan Power Project 2 Power Generation Taiwan Power Project 3 Power Generation Taiwan Power Project 4 Power Generation Taiwan Power Project 5 Power Generation Taiwan Power Project 6 Power Generation Taiwan Power Project 7 Power Generation Taiwan Power Project 8 Power Generation Taiwan Power Project 9 Power Generation Taiwan Power Project 10 Power Generation Taiwan
- Project-related Corporate Loans
Total number closed in 2022 Category A B C 0 0 0 • 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 0 Not-required 0 0 0