BankTrack is calling on 91 major banks: the Equator Principles are no longer enough, and financing large-scale projects that damage communities and territories must stop.
In October, 91 of the world's largest banks will meet in Brazil to discuss their commitment to the Equator Principles, the international guidelines on financing large infrastructure projects. But the facts show that these principles, however well-intentioned, are no longer sufficient. This is the starting point for the appeal that the European network BankTrack is addressing to the major banks, calling loudly for an end to supporting projects that have a devastating impact on territories and the people who live in them.
The Equator Principles are 10 international guidelines adopted on a voluntary basis to manage environmental and social risk when financing large infrastructure projects. Drawn up in 2003, they have to date attracted 91 signatories, almost all major banks, from 37 different countries. In brief, by adopting the Equator Principles, institutions pledge to finance only projects managed in a socially responsible manner and on the basis of sound environmental policies. Lending institutions commit to avoiding negative impacts on the climate, biodiversity and the communities affected by projects (or, where these are unavoidable, to reducing, mitigating and compensating for them), carrying out the necessary due diligence themselves.
Coal-fired power plants, oil pipelines, coal mines, Arctic oil exploration, oil platforms. These and other projects, BankTrack reports, have been financed by banks that have signed up to the Equator Principles. And that is not all. The list includes the Dakota Access pipeline, first blocked by Obama and then back in play under the Trump presidency, which the Sioux peoples are strenuously opposing. And then there is the Agua Zarca hydroelectric dam in Honduras, at the centre of the struggles of environmentalist Berta Cáceres, who was murdered in March 2016. These and other examples, according to BankTrack, demonstrate that the Equator Principles are no longer enough. A step forward is needed.
The step forward BankTrack is fighting for is a full review process of the Equator Principles. Their "2.0" version will need to meet at least two of the criteria the organisation has listed in its appeal. On the climate front, banks must ensure that all large-scale projects are in line with the goal, enshrined in the Paris Agreement, of limiting the rise in global temperature to 2 degrees Celsius, while attempting not to exceed 1.5 degrees. They must therefore exclude any project involving fossil fuels.
On the front of protecting the rights of indigenous peoples, BankTrack wants banks to require the prior consent of local inhabitants before financing projects located in their territories. If projects are approved, banks must verify that the populations are being respected and that they have the means to seek redress for any abuses.
To join the appeal, individually or as representatives of an organisation, simply fill in the form with your details on the campaign website Equator Banks Act!.
