This blog aims at helping to follow the economy in French-speaking Africa, while promoting Green Banking practice i.e. conducting business without conflict of interest while focusing on serving Human values, Customers and the real economy by implementing principles in operations: Responsible project finance/Supporting alternative energy/Promoting responsible growth/Enforcing an active social responsibility policy/Reducing the carbon footprint.
Banks usually gravitate towards community economic development instead of environmental initiatives. Although these actions have helped banks gain a large impact socially, many banks fail to realize that focusing only on the social side of banking drives away customers concerned with environmental issues.
Launched in 2003, the Equator Principles have become the benchmark for responsibility in project finance. This commitment to comply with certain social and environmental requirements is a crucial element of MGB's corporate responsibility policy. It will involve MGB's project development & finance teams on a day-to-day basis, and will give an active role in the decision process to a variety of actors.
The Equator Principles represent a voluntary, unilateral commitment to perform a detailed analysis of environmental and social aspects of each new project financing and to link financings to compliance with a number of requirements. Specifically, the projects financed must comply with the environmental and social standards of the International Finance Corporation (IFC), an institution of the World Bank Group that is responsible for transactions with the private sector.
The principles especially encourage:
The Equator Principles apply to MGB’s entire project development & finance Advisory business. Every project is classified in one of the three categories defined by the IFC, based on its location and its potential impact on the environment and the local social fabric:
A project that may displace a population, affect a vulnerable ethnic minority or have irreversible consequences for a natural habitat will thus be rated A.
An evaluation of the context is also carried out, covering the country, promoters and any problems encountered in similar projects. The goal is to assess the promoters’ ability to manage the identified potential impacts. If there is a need for increased vigilance, the deal is classified for monitoring as sensitive.
Either by extending consideration of environmental and social impacts or by always looking for an offer adapted to new society rules, MGB aims at including sustainable development stakes in all its activities.