Who and where are the Equator Banks? - IILJ
Who and where are the Equator Banks? - IILJ
Who and where are the Equator Banks? - IILJ
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The <strong>Equator</strong> Principles have been accepted by many of <strong>the</strong> world’s leading<br />
project finance banks, but not by all of <strong>the</strong>m.<br />
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Why, <strong>the</strong>n, have some banks adopted <strong>the</strong> Principles <strong>and</strong> some have not?<br />
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<strong>Banks</strong> <strong>are</strong> extremely sensitive to <strong>the</strong> impact of damage to <strong>the</strong>ir reputation,<br />
which can have long-lasting <strong>and</strong> spectacular effects, particularly in <strong>the</strong> field<br />
of retail banking. The famous examples of <strong>the</strong> student boycott of Barclays<br />
over its investment in pre-M<strong>and</strong>ela South Africa <strong>and</strong> <strong>the</strong> seizure of Nazi<br />
gold held by certain Swiss banks haunt <strong>the</strong> imaginations of many bankers.<br />
Fur<strong>the</strong>rmore, banks see <strong>the</strong>mselves as particularly vulnerable, in that <strong>the</strong>ir<br />
own reputations may be adversely affected by <strong>the</strong> actions of a client over<br />
whose commercial strategy <strong>the</strong>y have no direct control – indeed, <strong>the</strong> actions<br />
which bring public criticism of <strong>the</strong> client (<strong>and</strong>, <strong>the</strong>refore, by implication, of<br />
<strong>the</strong> bank) may not be those in which <strong>the</strong> bank is directly concerned. As one<br />
consultee put it during <strong>the</strong> survey, consumer boycotts may not be fair, but<br />
that does not mean that <strong>the</strong>y <strong>are</strong> not effective!<br />
Fur<strong>the</strong>rmore, many banks value <strong>the</strong>ir inclusion in indexes such as<br />
FTSE4Good or <strong>the</strong> Dow Jones Sustainability Index highly, as an<br />
endorsement of <strong>the</strong>ir reputation. They see adoption of <strong>and</strong> compliance with<br />
<strong>the</strong> Principles as facilitating <strong>the</strong>ir inclusion in <strong>the</strong>se indexes.<br />
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