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BankMuscat Adopts the ‘Equator Principles’.
First Bank from across the Middle East to take
this ‘environment-friendly’ stand.
• Also joins United Nations Environment
Programme Finance Initiative (UNEP FI)
Muscat.
August 18, 2007: BankMuscat, the nation’s
leading bank, has adopted the ‘Equator
Principles’, a set of globally recognized,
voluntary guidelines established to assess and
manage social and environmental risk in project
financing, especially in the emerging markets.
In adopting these principles, BankMuscat has
become the first bank from across the Middle
East region to adopt the Equator Principles. The
Bank will also ensure that the projects it
finances are developed in a socially responsible
manner and reflect sound environmental
management practices.
The Bank has also joined the United Nations
Environment Programme Finance Initiative (UNEP
FI), which is a unique global partnership
between the United Nations Environment Programme
(UNEP) and the global private financial sector.
BankMuscat has signed the ‘UNEP Statement by
Financial Institutions on the Environment and
Sustainable Development’. By signing this
statement, BankMuscat will join an elite group
of 160 financial institutions, including ABN
Amro Holdings N.V, Allianz Dresdner, Bank of
America, Barclays, BNP Paribas, Citigroup,
Commerzbank AG, Credit Suisse, Deutsche Bank,
HSBC, Societe Generale, Standard Chartered Bank
and Bank of Tokyo-Mitusibishi, who are
co-signatories to the UNEP FI Statements and who
work closely with UNEP FI to develop and promote
linkages between the environment, sustainability
and financial performance.
Speaking on the occasion, AbdulRazak Ali Issa,
Chief Executive, BankMuscat said:
“I am delighted that BankMuscat is the first
bank from the Sultanate to join a select band of
environment-conscious financial institutions.
Environmentalists from across the world have
lauded the pristine beauty of our beloved
country. Given these blessings, and the vision
of His Majesty Sultan Qaboos bin Said, to manage
the growth and development of the nation while
preserving the natural beauty of Oman, we
believe it our duty to take meaningful steps in
the same direction.
“In addition to our robust corporate and
institutional banking risk management
infrastructure, we will now work toward setting
up significant social and environmental risk
management procedures that, are in line with
these globally accepted principles. We will also
work toward the creation of several sustainable
programmes that will make us more environment
conscious and friendly as an organization.”
The Equator Principles are intended to serve as
a common baseline and framework for the
implementation by each of the Equator Principles
Financial Institutions (EPFIs) on its own
internal social and environmental policies,
procedures and standards related to its project
financing activities. The principles apply to
all new project financings globally with total
capital costs of USD 10 million or more, across
all industry sectors. In addition, while the
Principles are not intended to be applied
retroactively, they are to be applied on all
project financings covering expansion or upgrade
of an existing facility where changes in scale
or scope may create significant environmental
and / or social impact, or significantly change
the nature or degree of an existing impact.
Globally, financial institutions are under close
scrutiny than ever before. Investors and
regulators are increasingly asking challenging
questions about corporate governance, the social
and environmental impacts of operations and
investments and how financial institutions
support their local communities. Membership to
the United Nations Environment Programme Finance
Initiative (UNEP FI) has helped signatories
since 1992 to better understand and appreciate
stakeholder concerns, exchange best practices
and stay on top of such issues.
BankMuscat is currently working on action plan
of what is required from its management team,
employees and applicable stakeholders in order
to fully adopt the Principles as well as develop
projects that are of a sustainable nature. |
