Reporting – Ecobank Transnational Incorporated (2016)

Adoption Date:1-January 2012
Country of Headquarters:Togo
Region of Headquarters:Africa
Institutional Reporting Hyperlink:http://ecobank.com/group/ethics-and-society
Current EPFI Reporting Year/Period:2016
EPFI Reporting in Compliance:Yes

Please read the important notes and disclaimer for further information on ‘EPFI Reporting’, compliance and publication on the Equator Principles Association website.

Further information on this EPFI may be obtained through the Institutional Reporting Hyperlink above.

PROJECT FINANCE ADVISORY SERVICES

Total number mandated in the reporting period: 0

PROJECT FINANCE TRANSACTIONS

Total number that reached financial close in the reporting period: 0

PROJECT-RELATED CORPORATE LOANS

Total number that reached financial close in the reporting period: 0

IMPLEMENTATION OF THE EQUATOR PRINCIPLES

As a Pan-African, Ecobank remains steadfast to the tenets of sustainability as it is applied in the banking industry and we conduct our activities in an environmentally friendly and socially responsible manner. We continue leveraging our wide geographic footprint in driving our ‘eco-friendly’ brand and promoting sustainability across our markets in Middle Africa.

Sustainability is an integral part of the Ecobank Mission and our journey has been evolving since the establishment of Ecobank in 1989. The bank became a signatory to the United Nations Environment Programme Finance Initiative (UNEPFI) in 2009 and also subscribed to the United Nations Global Compact (UNGC) in 2011 as well as adopted the Equator Principles in 2012. Internally within the bank, the Board of ETI established the Social, Ethics and Reputation Committee, which has a purview over the sustainability matters, including the environment, social and governance (ESG) frameworks, such as the application of the IFC Performance Standards for Sustainability.

Since the adoption of Equator Principles in 2012, the bank has applied these Principles to improve its internal policies governing the project finance, project related corporate loans and bridge loans, specifically for projects valued at $10million or more, as well as in larger projects where the bank’s contribution to project-related corporate lending is in excess of $50million. Thus, the Bank continues to demonstrate its commitment to environmental and social stewardship beyond the EP scope.

Furthermore, the Bank has incorporated the Equator Principles within its internal Environmental and Social Management System (ESMS), which were developed on the basis of the IFC Performance Standards as well as our cooperation with other financial institutions regarding the interpretation of environmental and social management practices in credit review processes.

Ecobank has grained a better understanding to ensure that project finance and other transactions in the environmental and social sensitive sectors (Mining, Oil and Gas, Infrastructure and Power) are developed in a socially responsible and environmental friendly manner. We continue to ensure that detrimental socio-environmental impacts are avoided and where possible, engage with project participants to carry out remedial measures. In doing this, the bank continues to work persuasively to ensure that its clients agree to such measures are included in the subsequent compliance monitoring and reporting systems.

Specifically, Ecobank did not carry out any new EP qualified transaction in the reporting year, 2016. This was due to lack of appetite for new project by its clients, which emanated from the macro-economic and financial environment constraints, such as the global commodity market in 2016. Although, the bank did not have any EP eligible deal closure in 2016, albeit it is striving not to compromise on its EP obligations in terms of compliance with the scope, threshold and tenor guidelines.  For instance, in line with the EPs, Ecobank has established a grievance mechanism to enable any stakeholders who might have been affected in anyway by its financed projects/transactions to contact the bank for onward engagement with the project owners in a bid to seek redress. The procedure for lodging the complaint and grievance is publicly available on the Ecobank websites.

Furthermore, as an EPFI member, Ecobank participated in official activities organised by the EP Secretariat, including attendance at the EPFI’s Annual Meeting in London, UK in October, 2016.

Further information can be found at: http://ecobank.com/group/ethics-and-society.