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Sector policies and guidelines

Certain industries are particularly sensitive from a social or environmental perspective. To assess potential transactions with clients in these industries, we have defined specific policies and guidelines that are globally applicable, taking account of standards developed by international organizations such as the UN and the World Bank. These policies and guidelines cover the sectors oil and gas, mining, power generation, and forestry and agribusiness, which includes pulp and paper as well as palm oil production. They address a range of topics such as: compliance with industry-specific, internationally recognized standards on the environment and human rights; measures to assess and reduce the environmental impact of operations, including on the climate; the protection of the health and safety of company employees and surrounding communities; and respect for the human rights of the local population (More information: Respecting human rights). The sector policies and guidelines also form an important component of our Group-wide Climate Risk Strategy program (More information: Climate Risk Strategy program).

Our policies and guidelines also describe business activities and operations that Credit Suisse will not finance. For example, we announced in 2019 that we would no longer provide any form of financing specifically related to the development of new coal-fired power plants. This restriction was introduced in addition to the bank’s existing policy of not providing any form of financing that is specifically related to the development of new greenfield thermal coal mines. These commitments also apply to cases where the majority of the use of proceeds is intended for the development of a new coal-fired power plant or a new greenfield thermal coal mine, respectively.

Our sector policies and guidelines are regularly reviewed and updated to take account of the latest developments and new challenges in the relevant areas. For example, in 2019, we integrated the concept of Free, Prior and Informed Consent (FPIC) into our policies on oil and gas, mining, and forestry and agribusiness in order to better respect the rights of indigenous peoples who may be affected by project-related transactions. A summary of our sector policies and guidelines is available at:

credit-suisse.com/sectorpolicies
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In the context of sustainability risk management, Credit Suisse has applied the Equator Principles (EP) since 2003. This framework for the management of environmental and social risks is based on standards defined by the International Finance Corporation (IFC) and is applied by around 100 financial institutions for specific types of finance for industrial and infrastructure projects. The Equator Principles were updated in 2019, following an EP Association process involving extensive dialogue with a wide variety of stakeholders – including the EP Financial Institutions (EPFIs), EPFI clients, industry bodies and NGOs. As a result, the Equator Principles’ scope of application has been expanded to capture more project-related trans­actions. Amendments and new commitments have also been made with regard to human rights, climate change, indigenous peoples and biodiversity. Credit Suisse played an active role in the update process and was involved in the management of the Equator Principles Association.

Recognizing the importance of environmental sustainability and sustainable land use, we are also a member of the Roundtable on Sustainable Palm Oil (RSPO) in the “Banks and Investors” sector. The RSPO is the leading certification standard for palm oil and promotes the cultivation and use of sustainable palm oil products through global standards and the engagement of stakeholder groups throughout the supply chain. Consequently, our Forestry and Agribusiness Policy includes requirements regarding RSPO membership and RSPO certification that we expect our clients to observe.

In January 2020, Credit Suisse signed the Poseidon Principles. This global framework for responsible ship finance promotes the integration of climate considerations into lending decisions, with the aim of enhancing the role of maritime finance in addressing global environmental issues and advancing the decarbonization of the international shipping sector.

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For a comprehensive disclosure in accordance with EP requirements, see:

credit-suisse.com/riskmanagement