On May 6, 2022, the Bank of Taiwan officially announced that it has adopted the Equator Principles and has become one of the global Equator Principles Financial Institutions (EPFIs) by joining the Equator Principles Association.
Established in June 2003, the Equator Principles is a globally recognized risk management framework, adopted by financial institutions, for determining, assessing and managing environmental and social risk in projects and is primarily intended to provide a minimum standard for due diligence and monitoring to support responsible risk decision-making.
As a signatory of the Equator Principles (EPs), BoT will conduct comprehensive evaluation and management of environmental and social risks in project finance. BoT also encourages its corporate customers to raise their own awareness of ESG risk in order to protect the rights and interests of stakeholders and to maintain the welfare of the environment and society, all the while promoting responsible economic growth.
Under the leadership of Chairman Joseph Jye-Cherng Lyu, BoT continuously develops sustainable finance to fulfill its corporate social responsibility. Being committed to international initiatives such as the Equator Principles, BoT also incorporates ESG principles into its business management strategies to be proactive in addressing the challenges that will lead towards a sustainable future.
In order to embrace the spirit of the EPs and fully implement the ten principles in its core business, BoT has been fine-tuning its financing process. A Sustainable Finance Section has been established to integrate ESG risk management into the lending decision-making process and management of project finance. The Sustainable Finance Section ensures that BoT’s lending does not entail significant ESG risks or have negative impacts on the environment or society.
The adoption of the EPs is a significant milestone for Bank of Taiwan. As a leading bank in Taiwan, BoT will continue to commit itself to the development of sustainable finance, and to work with corporate customers with the similar ESG values to build a better future together.
Bank of Taiwan News
Leave a Reply