The Equator Principles

• About the Equator Principles
  The Equator Principles, issued by the Equator Principles Association in 2003, is a common baseline and risk management framework for financial institutions to identify, assess and manage environmental and social risks in projects. In line with international trends towards sustainable development and to enhance the financial impact and promote industrial sustainable development, the SCSB officially signed to join the Equator Principles Association on October 11, 2022, becoming one of the Equator Principles Financial Institutions. The Bank has committed to fully adhering to all 10 principles of the Equator Principles.
  Official website of the Equator Principles Association https://equator-principles.com/


• Implementation of the Equator Principles
  In accordance with the Equator Principles guidelines, the SCSB has established "Guidelines for Loans Applicable to the Equator Principles" and relevant operating procedures. In addition, the SCSB has set up an "Environmental and Social Risk Task Force" (referred to as the Task Force), which executes environmental and social risk assessments, reviews and approves for loan application in accordance with "environmental/social risk assessment reports” to ensure that the cases comply with the Equator Principles and relevant environmental and social regulations, so as to implement the Bank’s ESG commitments.
  Credit process for EP projects

  1 Loan request from the clients	2 Loan application submission	3 Credit Analysis	4 Credit Review	5 Contract signing & loan drawdown	6 Post-loan management
  Check applicability of the Equator Principles	Classify Environmental and social risk	Request "Environmental and Social Risk Assessment Report"	Review Environmental and social risk	Include the Equator Principles related clauses in the contract	Monitor environmental and social risk Periodically
  Branches	Task Force, The Industrial Financial Team, the Credit Operation Center	The Industrial Financial Team, the Credit Operation Center	Task Force	Branches	Task Force, The Industrial Financial Team, the Credit Operation Center



• Training
  To ensure that all departments are familiar with the mechanisms and new forms related to the Equator Principles, the SCSB has engaged external consultants to conduct educational training courses on the Equator Principles for the Environmental and Social Risk Task Force and branches. Furthermore, training materials are made available to employees to enhance their understanding of environmental and social risks, thus facilitating effective implementation of the "Guidelines for Loans Applicable to the Equator Principles".


• Equator Principles Cases (Reporting period: 2024/01/01 – 2024/12/31)
  
  • Project Finance Advisory Services

    Number of Project Finance Advisory Services	0
    Sector
    Mining	0
    Infrastructure	0
    Oil & Gas	0
    Power	0
    Others	0
    Region
    Americas	0
    Europe, Middle East & Africa	0
    Asia Pacific	0

  • Project-Related Corporate Loans

    Number of Project Finance Advisory Services	Category A	Category B	Category C
    	0	0	0
    Sector
    Mining	0	0	0
    Infrastructure	0	0	0
    Oil & Gas	0	0	0
    Power	0	0	0
    Others	0	0	0
    Region
    Americas	0	0	0
    Europe, Middle East & Africa	0	0	0
    Asia Pacific	0	0	0
    Country Designation
    Designated Country	0	0	0
    Non-Designated Country	0	0	0
    Independent Review
    Yes	0	0
    No	0	0

  • Project Finance

    Number of Project Finance Advisory Services	Category A	Category B	Category C
    	1	1	1
    Sector
    Mining	0	0	0
    Infrastructure	0	0	1
    Oil & Gas	0	0	0
    Power	1	1	1
    Others	0	0	0
    Region
    Americas	0	0	0
    Europe, Middle East & Africa	0	0	0
    Asia Pacific	1	1	1
    Country Designation
    Designated Country	0	0	0
    Non-Designated Country	1	1	1
    Independent Review
    Yes	1	1
    No	0	0

  • Project- Related Refinance and Project- Related Acquisition Finance for Project Finance

    Number of Project- Related Refinance and Project- Related Acquisition Finance for Project Finance	Category A	Category B	Category C
    	0	0	0
    Sector
    Mining	0	0	0
    Infrastructure	0	0	0
    Oil & Gas	0	0	0
    Power	0	0	0
    Others	0	0	0
    Region
    Americas	0	0	0
    Europe, Middle East & Africa	0	0	0
    Asia Pacific	0	0	0
    Country Designation
    Designated Country	0	0	0
    Non-Designated Country	0	0	0

  • Project-Related Refinance and Project-Related Acquisition for Corporate Loans

    Number of Project-Related Refinance and Project-Related Acquisition for Corporate Loans	Category A	Category B	Category C
    	0	0	0
    Sector
    Mining	0	0	0
    Infrastructure	0	0	0
    Oil & Gas	0	0	0
    Power	0	0	0
    Others	0	0	0
    Region
    Americas	0	0	0
    Europe, Middle East & Africa	0	0	0
    Asia Pacific	0	0	0
    Country Designation
    Designated Country	0	0	0
    Non-Designated Country	0	0	0