Equator Principles

When financing projects, we uphold voluntary industry standards based on the World Bank's environmental and social standards.

In project financing, Credit Suisse applies the so-called Equator Principles(opens in new window) . These are criteria to be applied for financing or advisory activities with a volume in excess of ten million US dollars, and are based on the environmental and social standards of the International Finance Corporation (IFC), a subsidiary of the World Bank Group. The name "Equator Principles" symbolizes their global reach.

A Universal Standard

The Equator Principles are extensively implemented in the financing of major projects such as gold mines or dams in developing or emerging countries. In 2007, 53 of the 75 billion US dollars flowing to these countries for such projects were based on these criteria, according to the specialist magazine "Infrastructure Journal".

The Equator Principles provide an important standard for assessing risks in project finance transactions.

Companies that wish to borrow money for project financing from Credit Suisse must meet the following requirements, among other things:

When assuming a new project, the company must conscientiously investigate the potential impact on human beings and the environment by way of a Social and Environmental Impact Assessment. Suitable mitigation measures must be introduced for any negative impacts (e.g. construction of water purification plants, infrastructure improvements).
The assessment must be reviewed by independent, external experts.
The project to be financed must meet the corresponding World Bank criteria and host country laws.
Project initiators, i.e. the borrowers, are obligated to provide periodic reports to the creditor bank.
Persons affected by the implications of a project must be involved in the planning process and risk evaluation at an early stage and in an appropriate manner.
The project initiator must establish a grievance mechanism to address any concerns the affected community may have.

Credit Suisse launched the Equator Principles in 2003 together with eight other financial services companies. As a signatory, we report annually on our implementation processes in connection with the principles. Furthermore, internal training courses on the application of the principles take place regularly. We are also involved in the further development of the Equator Principles as a member of a working group.