Control of social and environmental risks - Intesa Sanpaolo
Control of social and environmental risks in financing
The assessment of the environmental and social risk in granting loans regards not only big projects, which fall within the scope of application of the Equator Principles, but also loans granted to all types of Bank customers.
With the objective of identifying the most effective methods to assess any environmental risk connected to the activities of corporate customers, the rating assessment model includes a question about potential environmental risks associated with our customers’ activities. Furthermore, starting from January 2016, following a pilot project in 2015, environmental risks will be considered and integrated in the credit facility procedure as qualitative elements - with an effect on the assessment of the creditworthiness - through an analytical questionnaire which must be completed and recorded by the customer company manager. During 2016 the integration of a blocking control in the procedure will be implemented, that will make mandatory the compilation of the questionnaire for companies belonging to the sectors most exposed to environmental risk.
A careful assessment of these potential risks also mitigates the risk of involvement in environmental crimes. Intesa Sanpaolo's 231/2001 Model has since long included environmental crimes as a sensitive area, acknowledging that the illegal acts governed by criminal law to protect the environment implies administrative liability of the relative entities and, consequently, indirect liability of the Bank with regard to the activities of its customers.