By Simon Jessop, Isla Binnie and Ross Kerber
LONDON/NEW YORK/BOSTON (Reuters) -Four of the biggest U.S. banks are no longer signatories to the Equator Principles, an industry benchmark for assessing environmental and social risks in project-related finance, its website showed on Tuesday.
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.
Spokespeople for JPMorgan, Citi, Bank of America and Wells Fargo, all said their banks would continue to be informed by those principles.
The departures are the latest example of major financial services companies leaving corporate environmental initiatives since U.S. Republican politicians started suggesting participation could breach antitrust rules.
There are currently 10 principles for aspects of projects ranging from initial due diligence to grievance mechanisms.
Asked about their departures, Citi and Wells Fargo cited a restructuring by the organization.
“Wells Fargo’s due diligence process will incorporate consideration of the Equator Principles for project financing, where we deem appropriate,” the bank said in a statement sent by a representative.
A Citi representative said via e-mail that “Our commitment to implementing best practices in our evaluation of environmental and social risks in project-related finance transactions has not changed.”
A JPMorgan spokesperson said the bank had invested in environmental and social risk experts and in-house processes, meaning it was not necessary to maintain membership, although its in-house standards would stay aligned with the principles.
“While we may collaborate with coalitions or join organizations to further our goals, we always maintain our autonomy and are never bound by third-party dictates or approvals,” the spokesperson added.
Bank of America said in a statement that the objectives of the Equator Principles would stay in their risk policy framework, which refers to the bank’s “ability to make independent risk decisions about clients and transactions.”
A spokesperson for the Equator Principles declined to comment further.
Richard Brooks, climate finance director at environmental conservation nonprofit Stand.Earth, said the banks had moved to “abandon a bare minimum set of standards which banks themselves have set.”
(Reporting by Simon Jessop, Ross Kerber and Isla Binnie;Editing by Tommy Reggiori Wilkes, Jonathan Oatis and Aurora Ellis)
