The Equator Principles are a set of ten guidelines, by virtue of which the financial entities that adopt them undertake voluntarily to evaluate and to take into consideration the social and environmental risks of their investments in the development field, in order to ensure the sustainable nature of the operations being financed.

Who has signed them?

These Principles were established in 2003 with the support of the International Finance Corporation (IFC) of the World Bank. By August 2016, 84 institutions had adopted them. They all work together to spread the best practice and so ensure that standards improve. They also draw up an annual report on the application of the Principles.

What is the commitment?

For CaixaBank, the evaluation of projects under the Equator Principles runs through several stages:

• In the first place, the possible social and environmental risks and impact of the projects are evaluated. Subsequently, these are classified into three categories, A, B or C, according to the standards of the IFC, member of the World Bank Group.

What are the categories?

• A: projects which may have adverse and significant social or environmental impact and which are considered irreversible or unprecedented.
• B: projects with limited social or environmental impact that may be adverse, which are few in number and generally confined to specific places. These are reversible and easily tackled by measures to reduce their impact.
• C: projects with social or environmental impact that is minimal or with no adverse effects, including certain projects of financial intermediaries with minimum risk or without risks.

Further information on the Performance Standards of the IFC

• Once classified, an independent expert has to confirm that the projects comply with the requirements of the Principles. For those projects with a greater foreseeable impact, in categories A or B, these requirements include a social and environmental appraisal and a specific plan of action on the possible risk and impact, which must be followed.
• If the project is economically viable and these risks and impact are considered acceptable and can be assumed, the loan is formalized. In the case of category A projects, or category B ones for Non designated countries with low income, the loan conditions oblige the recipient of the loan to hire an independent consultant who will monitor the project until it is started up and will review the reports on the social and environmental supervision, control and monitoring of the project,
  in order to ensure that all the Principles are complied with.

In consequence, CaixaBank does not participate in those projects in which the loan recipient does not wish to, or is unable to, comply with the Equator Principles or with the internal policies of  CaixaBank on sustainable financing, if the latter requirements are stricter.

By adopting these guidelines, CaixaBank undertakes to apply them to all the project financing in which it takes part and that require overall financing of over US$10, regardless of the industrial sector or the place in the world where it is located. In line with these Principles, for these projects to be approved, they must have a positive evaluation, which means writing social and environmental factors into the analysis, in line with the standards set by the International Finance Corporation (IFC). From January, 2014, CaixaBank applies them to project-related corporate loans with total project capital costs of US$100 million or more and CaixaBank’s individual commitment is at least US$50 million.

It is a system of financing for projects needing very high investment, and which are expected to create predictable and sustained future income, which will permit the return of the loan. In addition, the very assets financed with the loan serve as security on payment. These characteristics allow projects to receive specific financing that is usually provided by several entities. Examples of this kind of project are motorways, telephone networks, etc.

In 2016, twelve projects were assessed in accordance with the Equator Principles entailing total investment of € 4,800 million, of which CaixaBank contributed more than € 721 million. None was classified under category A, ten were classified under category B and the remaining two under category C.

Number of financed projects in 2016

Global volume by sector and category

Note: as of April 2017

In 2015, fourteen projects were assessed in accordance with the Equator Principles entailing total investment of € 17,808 million, of which CaixaBank contributed more than € 636 million. None was classified under category A, twelve were classified under category B and the remaining two under category C.

Number of financed projects in 2015

Global volume by sector and category

Note: as of March 2016.

In 2014, nine projects were assessed in accordance with the Equator Principles entailing total investment of € 2,506 million, of which CaixaBank contributed more than € 270 million. One was classified under category A, four under category B and the remaining four under category C.

Number of financed projects in 2014

Global volume by sector and category (in thousand euros)

Note: as of February 24th 2016.