The Green Investment Bank (GIB) has joined more than 75 financial institutions in adopting the Equator Principles. Signatories commit to applying consistently high standards across their investments in regards to environmental and social assessments.
By adopting the Equator Principles, the GIB is agreeing to not provide finance to projects where the clients will not, or are unable to, comply with the principles set out.
The Equator Principles were founded in 2003 and form a risk management framework for determining the environmental and social risks in projects. The framework aims to increase the attention on social and community principles and responsibilities and set a global standard.
The principles apply to all industry sectors and to four financial products: project finance advisory services, project finance, project-related corporate loans and bridge loans.
Shaun Kingsbury, chief executive of GIB, said, “As the world’s first dedicated green investment bank we carry a special responsibility to ensure that all our investments meet best in class environmental and social standards.
“The Equator Principles have offered an important framework to bring consistency to global investment practice and we are delighted to become a signatory.”
Last month the GIB revealed the policies that will underpin its investment strategy. The organisation said each investment will be assessed, continuously monitored and reported in order to ensure the bank achieves it double bottom line of being both green and profitable.