EP Reporting Under EPIII

In 2015, the EP Association introduced new reporting obligations in order to improve transparency on transactions financed by members of the association. As a consequence, each EPFI shall report, at least annually, on transactions that were subject to the Equator Principles and have reached Financial Close and on its Equator Principles implementation processes and experience.

Societe Generale 2017 EP Data

In 2017, 47 transactions, namely 27 project finance transactions, 5 project-related corporate loans and 15 project finance advisory mandates falling within the scope of the Equator Principles, were signed. Among these transactions, 40% are related to renewable power projects (an increase of 5pt as compared to 2016).

These data are certified by our external auditor (EY).

The Societe Generale’s 2017 EP Reporting Table (see after) shows the detailed distribution of the financial products and services signed in 2017 which fall in the EP scope. The breakdown follows the guidelines developed by the EP Association.

In 2017, 32% of the transactions signed were category A, 47% category B, 21% category C. Most of the underlying projects are located in Europe and in the Asia Pacific regions. For each transaction, the E&S Due Diligence process conducted by Societe Generale was commensurate with the nature, scale and stage of the Project, and with the level of environmental and social risks and impacts. The internal E&S Due Diligence was supported by an Independent E&S Review for all the financed Projects categorised A or B.

Moreover, for the 9 category A and B transactions associated with Projects located in non-designated countries, the application of the EPs implies a development of the underlying Projects in alignment with the IFC Performance Standards and World Bank EHS Guidelines, in addition to compliance with local E&S laws, regulations and standards.

For the 32 financing transactions (i.e. Project Finance transactions and Project-Related Corporate Loans) signed in 2017, Societe Generale’s allocation represents a total of EUR 3 billion, of which EUR 522 million were allocated to renewable power Projects, i.e. 78% of total Power Bank EP commitments this year (an increase of 21pt as compared to 2016).

Among these, Societe Generale successfully backed the 250 MW Ras Ghareb wind farm project[1], the largest wind farm to be launched in the country to date, sitting at the core of Egypt’s strategy to diversify away from fossil fuels, increase consumer access to affordable electricity and ensure a long-term, independent energy supply.

[1] More information available at: https://wholesale.banking.societegenerale.com/en/about/news-press-room/news-details/news/renewables-wind-change-blows-through-egypt-with-the-largest-wind-farm-construction/ 

Equator Principles Categories

Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented;

Category B – Projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures;

Category C – Projects with minimal or no adverse environmental and social risks and/or impacts

EP transactions signed by country designation and category in 2017 (number of transactions)

EP transactions signed by sector in 2017 (number of transactions)

EP transactions signed by sector in 2017 (Amounts of Societe Generale commitments, M Eur(1))

(1) Project finance advisory mandates are excluded