Equator not enough for Banks
(25 August 2008 – Global) Banks may not be meeting their obligations to respect human rights even while governed by the Equator Principles, according to Oxfam Australia.
The Equator Principles are a set of social and environmental benchmarks for banks to govern their lending decisions.
Launched in June 2003, the Equator Principles were developed by private sector banks led by Citigroup, ABN AMRO, Barclays and WestLB.
Australian banks such as ANZ, Westpac and NAB have all committed to the principles.
However, according to Oxfam, a new report shows that the standards of the Equator Principles are not enough to ensure that human rights are respected in projects financed by the banks.
Oxfam Australia executive director, Andrew Hewett said that Banks who sign up to the Equator Principles are at continuing risk of financing projects that fail to uphold human rights.
The new report, prepared by the Centre for International Environmental Law (CIEL) and the Bank Information Centre (BIC), finds that the Equator Principles and the standards used by the World Bank’s private lending arm fail to address most critical human rights and address many others only partially or inadequately.
Oxfam said that this is also a warning for the Australian Government owned Export Finance and Insurance Corporation (EFIC), which provides financial assistance to
Australian companies overseas. EFIC relies on the same standards as the World Bank.
Oxfam has called on Equator Principle banks and the World Bank’s private sector lending arm to significantly amend the standards they rely on to make sure that their lending criteria are consistent with internationally recognised human rights.
Launched in June 2003, the Equator Principles were developed by private sector banks led by Citigroup, ABN AMRO, Barclays and WestLB.
Australian banks such as ANZ, Westpac and NAB have all committed to the principles.
However, according to Oxfam, a new report shows that the standards of the Equator Principles are not enough to ensure that human rights are respected in projects financed by the banks.
Oxfam Australia executive director, Andrew Hewett said that Banks who sign up to the Equator Principles are at continuing risk of financing projects that fail to uphold human rights.
The new report, prepared by the Centre for International Environmental Law (CIEL) and the Bank Information Centre (BIC), finds that the Equator Principles and the standards used by the World Bank’s private lending arm fail to address most critical human rights and address many others only partially or inadequately.
Oxfam said that this is also a warning for the Australian Government owned Export Finance and Insurance Corporation (EFIC), which provides financial assistance to
Australian companies overseas. EFIC relies on the same standards as the World Bank.
Oxfam has called on Equator Principle banks and the World Bank’s private sector lending arm to significantly amend the standards they rely on to make sure that their lending criteria are consistent with internationally recognised human rights.
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