Banks, Human Rights and the Equator Principles

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In January 2014 the press in Cambodia and Australia released a number of articles concerning the role of the ANZ Royal Bank in financing the activities of the Phnom Penh Sugar Company (“PPS”), which owns and operates a highly controversial sugar plantation and refinery in Kampong Speu Province, Cambodia. In February 2010, PPS began illegally seizing and bulldozing farm and residential land belonging to more than 1,500 families in the Thpong and Oral districts in the Kampong Spue province. An estimated 100 families in Pis and Plourch villages were forcibly evicted from their homes. As a result the families are faced with food insecurity, job insecurity and homelessness and many had to pull their children out from school to work for PPS as it was the only source of income available. The Australia and New Zealand Banking Group Ltd. (“ANZ”) is a major controlling entity of ANZ Royal Bank and one of the signatories to the Equator Principles (“EPs). Many consider that ANZ acted contrary to the guidelines contained in the EPs thereby facilitating the human rights abuses committed by PPS.

Put simply the EPs are a set of guidelines developed by major financial institutions (over 80 major financial institutions in 34 countries) in 2003 and revised in June 2013 (EP III) which aim to assist them in making better lending decisions in regards to the environment and society. The aim of the EPs is to put checks and balances in place so that financiers can refuse to finance projects, which could negatively impact human rights and the environment.

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