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12/12/2011 / NATURAL RESOURCES, INFRASTRUCTURE AND POWER

Samy Zouaoui: "Crédit Agricole CIB was the first French bank to adhere to the Equator Principles in 2003"

Crédit Agricole CIB conducts its business of financing the economy while paying attention to the indirect impacts of the projects it finances. Proof of this commitment is the fact that Crédit Agricole CIB was the first French bank to adhere to the Equator Principles in 2003.

Samy Zouaoui, Head of the Equator Principles unit within the Structured Finance division, presents Crédit Agricole CIB's involvement in this area.

What are the Equator Principles?

At the origin of the Equator Principles in 2003 were banks concerned with negative impacts that could be generated by the projects they finance. Crédit Agricole CIB was a founding member and the first French bank to adhere to these principles. The Equator Principles provide methodological assistance in taking into account the prevention of social and environmental impacts for project finance deals worth more than USD 10 million. They are a concrete example of sustainable development.
The Equator Principles imply:

  • a due diligence process for the banks involved, 
  • the obligation for their borrowers to analyse and manage the impact of their projects.

This analysis is based on the environmental and social standards of the International Finance CorporationThe International Finance Corporation (IFC) is a member of the World Bank Group.

IFC provides investments and advisory services to build the private sector in developing countries.

Source: ifc.org (IFC), the member of the World Bank group responsible for transactions with the private sector.

The Equator Principles have become the standard for responsible project finance.

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What is Crédit Agricole CIB's involvement in terms of the Equator Principles?

Since 1997, the Bank has been strongly committed to financing renewable energy and is a major player in this sector. In 2003, it was of course involved in drawing up the standards and still plays an active role in several Equator Principles work groups, in particular those reflecting on how to extend these standards to forms of finance other than project finance, such as, under certain conditions, export credits.

Our expertise in the management of environmental and social risks extends beyond the Equator Principles. The Bank also has recognised skills in implementing the World Bank’s SFI standards and Environmental, Health and Safety (EHS) guidelines, which are additional requirements for project finance deals in emerging countries.
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How do you assist the Bank's clients?

For Crédit Agricole CIB, being responsible means proposing to our clients the products and services that enable them to meet their environmental and social objectives. We assist them in their development on a day-to-day basis: how optimally to take into account the environmental and social implications of their projects, while minimising, and offsetting if necessary, their environmental and social impact.
 
In 2008, the Bank developed a tool for assessing social and environmental impacts in order to assess the projects of our clients on the basis of the severity of the potential impact identified and based on a three-level classification (A, B or C), as defined by the IFC.
 
We commit alongside our clients by helping them manage the specific requirements to address this impact. A network of local correspondents made up of project finance professionals assist the account managers in the management of complex cases. The coordination unit that I spearhead is based in Paris, manages the practical implementation of this organisation (software, training, procedures) with the help of the Head of Sustainable Development and relies on local correspondents.
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What does the follow-up entail?

Once a project is launched, the Equator Principles unit verifies compliance with the commitments detailed in the project documentation and the adequacy of the measures put into place.
 
The unit can call on the local knowledge of outside consultants to assist clients in taking inventory and drawing up reports, orienting them toward enduring economic actions.
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Samy Zouaoui, Head of the Equator Principles unit
Samy Zouaoui, Head of the Equator Principles unit
The Equator Principles in project finance
The Equator Principles in project finance