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Citigroup Inc. (NYSE symbol: C)
June 04, 2003
Editor's note: The following press release was issued by the International Finance Corporation of the World Bank Group.
A New Industry Framework for Environmental and Social Standards in Global Project Finance Lending
WASHINGTON, DC — Ten leading banks from seven countries will announce the adoption of the "Equator Principles," a new comprehensive set of mandatory environmental and social guidelines for the financing of projects. The Equator Principles are based on the policies and guidelines of the International Finance Corporation (IFC), the private sector lending arm of the World Bank Group.
Why this announcement is significant:
The scale of global investment affected. Precise estimates will depend on the final number of adopting banks, which will be announced on Wednesday, but initial rough estimates indicate that roughly $14 billion in project finance investments worldwide annually will be affected.
The breadth of investment affected. Unlike single industry codes of conduct, the adopting banks will be applying these standards across a wide array of sectors, ranging from manufacturing and infrastructure to oil, gas, mining to information technology.
The rarity of such a move by financial institutions. Global private-sector financial institutions have traditionally kept a low profile with respect to the environmental and social aspects of their investments.
Arguably, this is one of the largest collective responses by any group in the private sector to the concerns raised in the globalization debate over the past decade.