Citigroup Inc. and JPMorgan Chase & Co. were among the 33 banking companies to sign an expanded version of the three-year-old environmental policy known as the Equator Principles.
The Equator Principles Financial Institutions, a London group made up of 41 large international banking companies and the World Bank Group's International Finance Corp., announced updated guidelines Thursday that require banks to review loans of $10 million or more for compliance with the environmental standards. Under guidelines set down in June 2003, only loans larger than $50 million required this review.
The revised principles also require more comprehensive public hearings for certain projects financed by bank loans.
The companies that signed the principles are also now required to issue an annual report on their progress in implementing the principles.
"This is about doing business that is sustainable over the long term," Charles O. Prince, the chairman and CEO of Citi, one of the original signers of the principles, said Thursday in an Equator press release.
James Dimon, the chief executive of JPMorgan Chase, said through a spokesman, "The Equator Principles II further signify the commitment banks are making to social and environmental issues, and we are proud to be part of that effort."
The New York company adopted the original principles last year, when it also implemented its own stricter environmental guidelines.
Mary Wenzel, the head of environmental affairs at Wells Fargo & Co., said Thursday that her company welcomed the expanded principles. To operate in a global economy, bankers must be aware of "our neighbors in emerging markets." The San Francisco company adopted the principles last year.
However, a spokeswoman for Bank of America Corp., which signed on to the principles in 2004, said the Charlotte company is evaluating the revised version.
Other signers include HSBC Holdings PLC and Royal Bank of Scotland PLC.
SanPaolo IMI SpA of Italy was the only signatory that had not singed the previous version.
