On July 6 2006, Mizuho Corporate Bank, Ltd. (President & CEO: Hiroshi Saito), The Bank of Tokyo-Mitsubishi UFJ, Ltd. (President: Nobuo Kuroyanagi), and Sumitomo Mitsui Banking Corporation (President: Masayuki Oku) readopted the Equator Principles, which were publicly announced on the same day in London.
The Equator Principles are common standards that private financial institutions apply to determine, assess and manage environmental and social risks in project financing. In June 2003, the Equator Principles were first adopted by western financial institutions; Mizuho Corporate Bank adopted them in October 2003, followed by The Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking Corporation in December 2005.
The Equator Principles have been revised, reflecting the experience of the 40 Equator Principles Financial Institutions (EPFIs) and opinions received from a wide range of stakeholders. Main revisions to the Equator Principles include:
Extending coverage to
-Lower the threshold in terms of total capital costs from USD 50 million to USD 10 million;
-Include financial advisory activities of EPFIs in connection with project financings;
-Include upgrades or expansions of existing projects, where the additional environmental or social impacts are significant.
The application of the Equator Principles to countries with existing high standards for environmental and social issues has been streamlined.
Each EPFI is now required to report on the progress and performance of the Equator Principles' implementation on an annual basis.
Stronger and better social and environmental standards have been overall introduced.
Mizuho Corporate Bank, The Bank of Tokyo-Mitsubishi UFJ, and Sumitomo Mitsui Banking Corporation intend to make every effort to achieve both economic development and environmental and social preservation, reflecting our recognition of the significance of corporate social responsibility.