As an Equator Principles Financial Institution, ANZ commits to implementing the Equator Principles for financing projects and will not provide Project Finance or Project-Related Corporate Loans to projects where the customer will not, or is unable to, comply with the Equator Principles.
We also publicly report on the implementation of the Principles in our Corporate Sustainability Reviews.
About the Equator Principles
The Equator Principles are a set of voluntary standards designed to help banks identify and manage the social and environmental risks associated with the direct financing of large infrastructure projects such as dams, mines or pipelines.
The Equator Principles are designed for use primarily in countries with developing legal frameworks. They have particular relevance to ANZ as we are a financier of projects in many emerging Asian and Pacific economies.
What the Equator Principles require
Projects assessed as being within the scope are evaluated against the Equator Principles, including against comprehensive international performance standards (“IFC performance standards”) on issues such as labour and working conditions, natural resource management, pollution prevention, impacts on Indigenous people, community health and safety and cross-cutting themes such as gender and human rights.
Projects with a high social or environmental impact are required to consult with local communities about concerns those communities may have. Following consultation they must then prepare a management and monitoring plan describing the actions needed to adequately mitigate the social and environmental risks of the project.
We are required under the Equator Principles to ensure these steps are carried out in collaboration with our customers.
The Principles do not prescribe for a bank what projects it should be involved in and those it should avoid, but rather ensure the bank makes an informed decision, by requiring a thorough analysis of potential social and environmental impacts.