Big news in Net Zero recently was of course the number of banks withdrawing from ClimateAction 100+. However, Reuters reports that JPMorgan, Citi, Bank of America and Wells Fargo
“… are no longer signatories to the Equator Principles, an industry benchmark for assessing environmental and social risks in project-related finance… Set up by the banking industry in 2003, the principles help firms identify, assess and manage potentially adverse impacts created by large infrastructure and industrial projects.”
The banks had various reasons for their departures, yet indicated they remain committed considering environmental and social risks in project-related finance transactions – reflecting the intent and general principles of the Equator Principles. This is probably further reaction to state anti-ESG laws and the perceived “weaponization” of the ESG term. Arguably, it is more about window-dressing than anything substantive.
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