In order to give everyone a clear picture of exactly how the Equator Principles and the IFC’s Performance Standards on Social and Environmental Sustainability (Referred to as Performance Standards hereinafter) are actually applied in practice, we have designed 6 simulated project financing scenarios that involve the Equator Principles.

Each project financing scenario includes three components, namely an Introduction to Project Financing, Introduction to Environmental and Social Review and an Action Plan, which mainly serve to introduce the project financing, the environmental and social review as well as the action plan taken by the client to mitigate the environmental and social risks involved.

Introduction to Project Financing includes the basic information about financing projects, such as:

1.Background of project enterprises;

2.information on the shareholders of project enterprises;

3.Total costs of the project;

4.Project location;

5.The estimated impacts of project development;

6.The estimated development contribution of Equator Bank;

7.Project classification by Equator Bank based on environmental and social goals.

Introduction to Environmental and Social Review details environmental and social information concerning the project, including: categorization criteria and reasons for a project by the Equator Bank; The project’s major environmental and social impacts and crucial measures to reduce such risks and impacts. All actions included in client’s Action Plan and required to be taken by the client in order to meet the Performance Standard.

The Action Plan is prepared by the project financing client in the aim of mitigating the environmental and social risks and problems created by a project. The plan mainly describes the corrective actions or measures needed to implement different mitigation measures as well as the action implementation schedule.

The following are 6 project financing scenarios applicable to the Equator Principles

1. Wood materials production project

(1) Introduction to Project Financing

(2) Introduction to Environmental and Social Review

(3) Action Plan

2. Fertilizer production project

(1) Introduction to Project Financing

(2) Introduction to Environmental and Social Review

(3) Action Plan

3. Floor production project　

(1) Introduction to Project Financing

(2) Introduction to Environmental and Social Review

(3) Action Plan

4. Air-conditioning production project

(1) Introduction to Project Financing

(2) Introduction to Environmental and Social Review

(3) Action Plan

5. Chemical production project

(1) Introduction to Project Financing

(2) Introduction to Environmental and Social Review

(3) Action Plan

6. Cement production project

(1) Introduction to Project Financing

(2) Introduction to Environmental and Social Review

(3) Action Plan