ourexpertise - Crédit Agricole CIB

1PRESENTATION OF CRÉDIT AGRICOLE CIBThe Equator PrinciplesThese principles constitute a methodological support for factoringsocial and environmental impacts into the project fi nanceprocess. They allow for the assessment of the risks relating to theenvironmental and social impacts of projects of more than $10million. Crédit Agricole CIB is one of the banks that launched theEquator Principles in June 2003 and has worked actively to makea success of these principles which, in just a few years, havebecome a standard in the project fi nance market.• Project assessmentProject classifi cation is based on International Finance Corporation(IFC) classifi cation, which comprises three levels: A, B and C.• A corresponds to a project presenting potentially signifi cantnegative social or environmental impacts that are uniform, irreversibleor unprecedented;• B corresponds to a project presenting limited negative social orenvironmental impacts, generally relating to one site, that arelargely reversible and easy to resolve;• lastly, C corresponds to projects presenting minimal or no negativesocial or environmental impacts.Crédit Agricole CIB classifi es projects by using a tool to assesstheir social and environmental impact according to the IFC ratingsystem developed by the bank in 2008. The relevance of this toolis constantly revised on the basis of the past experience. It wasdecided in 2010 to improve some aspects of the tool.• Implementation of the EquatorPrinciplesThe implementation of the EP was developed on the initiative ofCrédit Agricole CIB’s Project Finance business line. The assessmentand management of environmental and social risks is carriedout initially by business managers, assisted by a network oflocal EP correspondents within each Project Finance regionalstructuring centre in permanent collaboration with a CoordinationUnit.In addition, Crédit Agricole S.A.’s Industry and Sector Researchunit provides help and additional insight, adding its skills in environmentaland technical issues and helping to refi ne the analysisand identifi cation of risks depending on the business sector. Theco-ordination unit, consisting of operational staff from the projectfi nancing business, co-ordinates the practical aspects of implementingthe Equator Principles. It manages the network of localcorrespondents and provides special training for staff concerned.The CERES Committee, which has replaced the Equator PrinciplesCommittee, meets in offi cial sessions at least four timesper year and validates the classifi cation of projects into categoriesA, B or C.• StatisticsGlobally, 366 projects have been rated at 31 December 2010 ofwhich 70 during 2010:• 25 projects were placed in category A of which 5 during 2010,• 288 were placed in category B of which 53 during 2010,• and 53 were placed in category C of which 12 during 2010.These projects have been analysed based on their rating withparticular attention paid to A-rated projects which are monitoredspecifi cally by the CERES Committee.The breakdown of ranked project by sector and region is shownbelow: Ranked projects at at 31 December 2010Breakdown by region20%12%2%9%26%18% Ranked projects at at 31 December 2010Breakdown by sector2%3%18%32%13%7%32% Ranked projects at at 31 December 2010Breakdown by sector3%3%23%37%17%6%17%North AmericaCentral and South AmericaFranceWestern EuropeEastern EuropeAfrica and Middle EastAsiaAustraliaElectric power plantsRenewable energy *InfrastructureIndustryMiningOil and gas* Renewable energy: Wind, solar, biomass and hydraulic.Electric power plantsRenewable energy *InfrastructureIndustryMiningOil and gas32SHELF-REGISTRATION DOCUMENT CRÉDIT AGRICOLE CIB 2010