Who and where are the Equator Banks? - IILJ

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= oÉÅçããÉåÇ~íáçåë=Ñçê=bèì~íçê=_~åâë=EÅçåíáåìÉÇF= • Adopt a conservative approach to the categorisation of a project with project sponsors and the sponsors’ legal, financial and technical advisers -where there is any doubt about which category a project falls into, apply a presumption which reflects the precautionary principle that the project falls into the higher or more onerous category. • Rely on the bank’s internal screening process and the advice of its legal and technical experts to assess the appropriate category of an Equator Principles project rather than relying upon a categorisation adopted by sponsors or others. • When acting as arranging banks or as financial advisers, enter into dialogue with sponsors on Principles issues as early as possible in the project cycle, in particular where syndication to Equator Banks (or other banks) is likely. • Encourage sponsors to be as transparent as practicable about their projects and particularly in respect of EMPs. • Consider lowering or abolishing the $50m threshold. • Not to delegate the role of Environment Bank to a non-Equator Bank, except in exceptional circumstances. • If possible, ensure that the Environment Bank has experience of funding projects of the type in question and of the application of the Principles to such projects. • Arrange for a sample of Principles projects to be audited externally to identify any shortcomings in or possible improvement to implementation of the Principles. • Appoint external advisers to review the rules, policy and procedures that underpin the Principles, following the example of JBIC. • Continue and develop dialogue with stakeholders and NGOs and encourage sponsors to do so. qÉÅÜåáÅ~ä=êÉÅçããÉåÇ~íáçåë= • Require a borrower to warrant that all social and environmental reports of which it is aware were disclosed to the borrower’s technical advisers. • Require a borrower to warrant that all relevant social and environmental reports have been disclosed by it and its technical advisers to the participating banks and their technical advisers. OS= bèì~íçê=mêáåÅáéäÉë=pìêîÉó=OMMR=Ó=pìãã~êó=oÉéçêíW=m~êí=f=Ó=qÜÉ=_~åâë= cêÉëÜÑáÉäÇë=_êìÅâÜ~ìë=aÉêáåÖÉêI=cÉÄêì~êó=OMMR=
= oÉÅçããÉåÇ~íáçåë=Ñçê=bèì~íçê=_~åâë=EÅçåíáåìÉÇF= • Agree standard terms and conditions with consultants and other professional advisers. • Review information handling procedures to ensure that reports from a borrower required by EMP are monitored adequately on a periodic basis. • Review loan documentation to: • ensure that there is no mismatch between the requirements to report on environmental issues under an EMP and/or the loan agreement and the bank’s ability to take action against the borrower to rectify that breach; • avoid the bank receiving information of an environmental issue but being powerless to act under the loan agreement in order to ensure it is rectified (to minimise the bank’s liability for environmental breaches of which they had knowledge); • ensure that the Equator Banks have an appropriate degree of negative control over decision making for amendments or waivers or consents to be given for the environmental aspects of the project; • ensure appropriate representations and warranties are given for environmental and social matters; • ensure appropriate covenants relating to compliance with environmental laws as well as lender environmental and social policies and guidelines are given; and • ensure there is a separate event of default if there is a failure to comply in any material respect with environmental laws and environmental and social policies and guidelines after a reasonable cure period has expired. • Review the legal liability of the bank and its officers: • for disclosure of confidential information; • for non-disclosure of social and environmental information to regulatory agencies; and • where failure to take enforcement action as provided for in the loan documentation concerning known pollution or the likelihood of pollution occurring results in pollution occurring or continuing. • Consider encouraging sponsors to appoint independent panels to assess and monitor projects, having regard to the scale, complexity and/or impact of the project. OT= bèì~íçê=mêáåÅáéäÉë=pìêîÉó=OMMR=Ó=pìãã~êó=oÉéçêíW=m~êí=f=Ó=qÜÉ=_~åâë= cêÉëÜÑáÉäÇë=_êìÅâÜ~ìë=aÉêáåÖÉêI=cÉÄêì~êó=OMMR=
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Who and where are the Equator Banks? - IILJ

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