What is Equator Principle?

Taking corporate loans from multinational banks or financial institutions has become order of the day. Industries utilize this loan for green field/ brown field expansions, retrofitting and up gradation etc. Whilst banks provide lucrative loans, they leave no stone unturned to ensure timely repayment and offset any risk involved. With increased awareness and globalization, banks have underlined the importance of environmental & social risk and are gearing up to take every possible safeguard. The Equator Principle is one such safeguard and is a bouquet of sustainability guidelines prescribed by International Finance Corporation (IFC), a private sector lending arm of the World Bank. The principle applies to any project finance exceeding US $10 million across all industry sectors.

Methodology

The objective of Equator Principle is:

1. Assess & avoid social & environmental impacts

2. Improve sustainability performance of companies

Leading global banks like ABN AMRO, Citigroup Inc., Standard Chartered Bank and many Financial Institutions have already utilized Equator Principle for Environmental & Social benefits. The qualifying project is expected to abide by the nine elements of this principle. Equator Principle help:

1. avoiding financial loss,

2. increased awareness on the risks,

3. avoid public pressure and reputation damage

4. improve shareholder profits

Chilworth can benefit both the banks and lender company by preparing them to adopt EP and mitigating environmental risks thereby graduating them to next level of sustainability.

Why Chilworth ?

Chilworth Safety & Risk Management P. Ltd (CSRM), a wholly owned subsidiary of Chilworth Holdings, UK is leading specialist in the field of environmental management and process safety. Company through its offices at Delhi, Mumbai and Chennai caters to the need of customers in areas such as EIA (environmental impact assessment), training, EDD (environmental due diligence), ESH (environment, safety & health) capacity building, hazardous waste management  and training. Company has in house team of environmental specialists, social experts and has reputed clientele. For further information please contact: info@chilworth.co.in