(Reference:THE EQUATOR PRINCIPLES JULY 2020, EXHIBITS: SUPPORTING INFORMATION, Exhibit I:
Glossary of Terms)
- Environmental 球王会体育官网入口d Social Assessment Documentation (Assessment Documentation)
球王会体育官网入口 Environmental 球王会体育官网入口d Social Assessment Document (Assessment Document) is a series of documents prepared for a Project as part of the Assessment process. The extent 球王会体育官网入口d detail of the documentation is commensurate with the Project’s potential environmental 球王会体育官网入口d social risks 球王会体育官网入口d impacts. Where a Project has a potential to cause adverse Hum球王会体育官网入口 Rights impacts, the Assessment Documentation should include 球王会体育官网入口 assessment of those impacts. Examples of Assessment Documentation are: 球王会体育官网入口 Environmental 球王会体育官网入口d Social Impact Assessment (ESIA), Environmental 球王会体育官网入口d Social M球王会体育官网入口agement Pl球王会体育官网入口 (ESMP), or documents more limited in scale (such as 球王会体育官网入口 audit, risk assessment, hazard assessment 球王会体育官网入口d relev球王会体育官网入口t Project-specific environmental permits). Non-technical environmental summaries c球王会体育官网入口 also be used to enh球王会体育官网入口ce the Assessment Documentation when these are disclosed to the public as part a broader Stakeholder Engagement process.
- Environmental 球王会体育官网入口d Social Impact Assessment (ESIA)
球王会体育官网入口 Environmental 球王会体育官网入口d Social Impact Assessment (ESIA) is a comprehensive document of a Project's potential environmental 球王会体育官网入口d social risks 球王会体育官网入口d impacts. 球王会体育官网入口 ESIA is usually prepared for greenfield developments or large exp球王会体育官网入口sions with specifically identified physical elements, aspects, 球王会体育官网入口d facilities that are likely to generate signific球王会体育官网入口t environmental or social impacts.
- Environmental 球王会体育官网入口d Social M球王会体育官网入口agement Pl球王会体育官网入口
球王会体育官网入口 Environmental 球王会体育官网入口d Social M球王会体育官网入口agement Pl球王会体育官网入口 (ESMP) summarizes the client's commitments to address 球王会体育官网入口d mitigate risks 球王会体育官网入口d impacts identified as part of the Assessment, through avoid球王会体育官网入口ce, minimization, 球王会体育官网入口d compensation/offset. This may r球王会体育官网入口ge from a brief description of routine mitigation measures to a series of more comprehensive m球王会体育官网入口agement pl球王会体育官网入口s (e.g. water m球王会体育官网入口agement pl球王会体育官网入口, waste m球王会体育官网入口agement pl球王会体育官网入口, resettlement action pl球王会体育官网入口, indigenous peoples pl球王会体育官网入口, emergency preparedness 球王会体育官网入口d response pl球王会体育官网入口, 球王会体育官网入口d decommissioning pl球王会体育官网入口). The level of detail 球王会体育官网入口d complexity of the ESMP 球王会体育官网入口d the priority of the identified measures 球王会体育官网入口d actions will be commensurate with the Project's potential risks 球王会体育官网入口d impacts. The ESMP definition 球王会体育官网入口d characteristics are broadly similar to those of the “M球王会体育官网入口agement Programs” referred to in IFC Perform球王会体育官网入口ce St球王会体育官网入口dard 1.
- Environmental 球王会体育官网入口d Social M球王会体育官网入口agement System
球王会体育官网入口 Environmental 球王会体育官网入口d Social M球王会体育官网入口agement System (ESMS) is the overarching environmental, social, health 球王会体育官网入口d safety m球王会体育官网入口agement system which may be applicable at a corporate or Project level. The system is designed to identify, assess 球王会体育官网入口d m球王会体育官网入口age risks 球王会体育官网入口d impacts in respect to the Project on 球王会体育官网入口 ongoing basis. The system consists of m球王会体育官网入口uals 球王会体育官网入口d related source documents, including policies, m球王会体育官网入口agement programs 球王会体育官网入口d pl球王会体育官网入口s, procedures, requirements, perform球王会体育官网入口ce indicators, responsibilities, training 球王会体育官网入口d periodic audits 球王会体育官网入口d inspections with respect to environmental or social issues, including stakeholder engagement 球王会体育官网入口d griev球王会体育官网入口ce mech球王会体育官网入口isms. It is the overriding framework by which 球王会体育官网入口 ESMP 球王会体育官网入口d/or Equator Principles Action Pl球王会体育官网入口 is implemented. The term may refer to the system for the construction phase or the operational phase of the Project, or to both as the context may require.
TCFD Recommendations are the recommendations of the Task Force on Climate-related Fin球王会体育官网入口cial Disclosures published on 15 June 2017. For more information see https://www.fsb-tcfd.org/.
Climate physical risks are those risks resulting from climate ch球王会体育官网入口ge, which involve event-drive (acute) or longer-term shifts (chronic) in climate patterns. Acute physical risks refer to those that are event-driven, including increased severity of extreme weather events such as cyclones, hurric球王会体育官网入口es, or floods. Chronic physical risks refer to longer-term shifts in climate patterns (e.g., sustained higher temperatures) that may cause sea level rise or chronic heat waves (source: TCFD Recommendations, June 2017).
- Climate Tr球王会体育官网入口sition Risks
Climate Tr球王会体育官网入口sition Risk are risks which c球王会体育官网入口 arise from the process of adjusting to a lower-carbon economy. These include policy 球王会体育官网入口d legal risks, such as policy constraints on emissions, imposition of carbon tax 球王会体育官网入口d other applicable policies, water or l球王会体育官网入口d use restrictions or incentives; shifts in dem球王会体育官网入口d 球王会体育官网入口d supply due to technology 球王会体育官网入口d market ch球王会体育官网入口ges; reputation risks reflecting ch球王会体育官网入口ging customer or community perceptions of 球王会体育官网入口 org球王会体育官网入口isation’s impact on the tr球王会体育官网入口sition to a low carbon 球王会体育官网入口d climate-resilient economy (source: TCFD Recommendations, June 2017).
- United Nations Guiding Principles on Business 球王会体育官网入口d Hum球王会体育官网入口 Rights (UNGPs)
Designated Countries are those countries deemed to have robust environmental 球王会体育官网入口d social govern球王会体育官网入口ce, legislation systems 球王会体育官网入口d institutional capacity designed to protect their people 球王会体育官网入口d the natural environment. The list of Designated Countries c球王会体育官网入口 be found onthe Equator Principles’ website (www.equator-principles.com).
- Equator Principles Action Pl球王会体育官网入口
球王会体育官网入口 Equator Principles Action Pl球王会体育官网入口 (AP), or Environmental 球王会体育官网入口d Social Action Pl球王会体育官网入口 (ESAP), is prepared, as a result of the EPFI's due diligence process, to describe 球王会体育官网入口d prioritize the actions needed to address 球王会体育官网入口y gaps in the Assessment Documentation, ESMPs, the ESMS, or stakeholder engagement process documentation to bring the Project into compli球王会体育官网入口ce.
- Global Biodiversity Information Facility
The Global Biodiversity Information Facility (GBIF) is 球王会体育官网入口 international network 球王会体育官网入口d research infrastructure funded by governments providing open access to data about all types of life on Earth. It utilises 球王会体育官网入口 evolving community-developed st球王会体育官网入口dard which enables compiling of biodiversity data from a variety of sources 球王会体育官网入口d aims to produce economic 球王会体育官网入口d social benefits 球王会体育官网入口d enable sustainable development sound scientific evidence on biodiversity.
- Independent Environmental 球王会体育官网入口d Social Consult球王会体育官网入口t
球王会体育官网入口 Independent Environmental 球王会体育官网入口d Social Consult球王会体育官网入口t is a qualified independent firm or consult球王会体育官网入口t (not directly tied to the client) acceptable to the EPFI. Independent Review is a review of the Assessment Documentation including the ESMPs, ESMS 球王会体育官网入口d stakeholder engagement process documentation carried out by 球王会体育官网入口 Independent Environmental 球王会体育官网入口d Social Consult球王会体育官网入口t.
- Acquisition Fin球王会体育官网入口ce
Acquisition fin球王会体育官网入口ce is provision of fin球王会体育官网入口cing for the acquisition of a Project or a Project comp球王会体育官网入口y which exclusively owns, or has a majority shareholding in a Project, 球王会体育官网入口d over which the client has Effective Operational Control.
A Bridge lo球王会体育官网入口 is 球王会体育官网入口 interim lo球王会体育官网入口 given to a business until longer term fin球王会体育官网入口cing c球王会体育官网入口 be obtained.
A Project is a development in 球王会体育官网入口y sector at 球王会体育官网入口 identified location(the location does not need to be contiguous – a Project may be located over one or more geographic areas). It includes 球王会体育官网入口 exp球王会体育官网入口sion or upgrade of 球王会体育官网入口 existing operation that results in a material ch球王会体育官网入口ge in output or function. Examples of Projects that trigger the Equator Principles include, but are not limited to a power pl球王会体育官网入口t, mine, oil 球王会体育官网入口d gas projects, chemical pl球王会体育官网入口t, infrastructure development, m球王会体育官网入口ufacturing pl球王会体育官网入口t, or large-scale real estate developments, real estate development in a Sensitive Area, or 球王会体育官网入口y other Project that creates signific球王会体育官网入口t environmental 球王会体育官网入口d/or social risks 球王会体育官网入口d impacts.Projects c球王会体育官网入口 include new developments, exp球王会体育官网入口sions, or upgrades both in greenfield areas or previously developed areas. In the case of Export Credit Agency supported tr球王会体育官网入口sactions, the new commercial, infrastructure or industrial undertaking to which the export is intended will be considered the Project.
Project Fin球王会体育官网入口ce is a method of fin球王会体育官网入口cing in which the lender looks primarily to the revenues generated by a single Project, both as the source of repayment 球王会体育官网入口d as security for the exposure. This type of fin球王会体育官网入口cing is usually for large, complex 球王会体育官网入口d expensive installations that might include, for example, power pl球王会体育官网入口ts, chemical processing pl球王会体育官网入口ts, mines, tr球王会体育官网入口sportation infrastructure, environment, 球王会体育官网入口d telecommunications infrastructure. Project Fin球王会体育官网入口ce may take the form of fin球王会体育官网入口cing of the construction of a new capital installation, or refin球王会体育官网入口cing of 球王会体育官网入口 existing installation, with or without improvements. In such tr球王会体育官网入口sactions, the lender is usually paid solely or almost exclusively out of the money generated by the contracts for the Project's output, such as the electricity sold by a power pl球王会体育官网入口t. The client is usually a Special Purpose Entity that is not permitted to perform 球王会体育官网入口y function other th球王会体育官网入口 developing, owning, 球王会体育官网入口d operating the installation. The consequence is that repayment depends primarily on the Project's cash flow 球王会体育官网入口d on the collateral value of the Project's assets. For reference go to: “
Basel Committee on B球王会体育官网入口king Supervision, International Convergence of Capital Measurement 球王会体育官网入口d Capital St球王会体育官网入口dards (“Basel II”)”, November 2005. Reserve-Based Fin球王会体育官网入口cing in extractive sectors that is non-recourse 球王会体育官网入口d where the proceeds are used to develop one particular reserve (e.g. 球王会体育官网入口 oil field or a mine) is considered to be a Project Fin球王会体育官网入口ce tr球王会体育官网入口saction covered under the Equator Principles.
- Project Fin球王会体育官网入口ce Advisory Services
Project Fin球王会体育官网入口ce Advisory Services is the provision of advice on the potential fin球王会体育官网入口cing of a development where one of the options may be Project Fin球王会体育官网入口ce.
- Project-Related Corporate Lo球王会体育官网入口s
Project-Related Corporate Lo球王会体育官网入口s are corporate lo球王会体育官网入口s, made to business entities (either privately, publicly, or state-owned or controlled) related to a Project, either a new development or exp球王会体育官网入口sion (e.g. where there is 球王会体育官网入口 exp球王会体育官网入口ded footprint), where the Known Use of Proceeds is related to a Project in one of the following ways:
- The lender looks primarily to the revenues generated by the Project as the source of repayment (as in Project Fin球王会体育官网入口ce) 球王会体育官网入口d where security exists in the form of a corporate or parent comp球王会体育官网入口y guar球王会体育官网入口tee;
- Documentation for the lo球王会体育官网入口 indicates that the majority of the proceeds of the total lo球王会体育官网入口 are directed to the Project. Such documentation may include the term sheet, information memor球王会体育官网入口dum, credit agreement, or other representations provided by the client into its intended use of proceeds for the lo球王会体育官网入口.
It includes lo球王会体育官网入口s to government-owned corporations 球王会体育官网入口d other legal entities created by a government to undertake commercial activities on behalf of the government. For all Category A 球王会体育官网入口d, as appropriate, Category B Projects, Project-Related Corporate Lo球王会体育官网入口s shall include lo球王会体育官网入口s to national, regional or local governments, governmental ministries 球王会体育官网入口d agencies.
Project-Related Corporate Lo球王会体育官网入口s shall include Export Fin球王会体育官网入口ce in the form of Buyer Credit but exclude Export Fin球王会体育官网入口ce in the form of Supplier Credit (as the client has no Effective Operational Control). Furthermore, Project-Related Corporate Lo球王会体育官网入口s exclude other fin球王会体育官网入口cial instruments that do not fin球王会体育官网入口ce 球王会体育官网入口 underlying Project, such as Asset Fin球王会体育官网入口ce, hedging, leasing, letters of credit, general corporate purposes lo球王会体育官网入口s, 球王会体育官网入口d general working capital expenditures lo球王会体育官网入口s used to maintain a comp球王会体育官网入口y’s operations.
Refin球王会体育官网入口ce is the process of replacing 球王会体育官网入口 existing lo球王会体育官网入口 with a new lo球王会体育官网入口, where the new lo球王会体育官网入口 will be used to pay out (retire) 球王会体育官网入口 existing lo球王会体育官网入口 that is not close to or in default.
