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Insurance Day : October 23, 2002

ECGD will demand green credentials

The chief executive of the Export Credits Guarantee Department (ECGD), the UK's export credit agency, told a European conference this week that his organisation is imposing strict environmental considerations on the projects it supports. This policy is paying financial dividends as well, he said.

Speaking at the Euro Environment 2002 conference in Denmark, Vivian Brown emphasised the importance the UK's credit agency places on environmental and social assessments in deciding whether or not to take part in projects.

In a speech entitled "The Greening of Export Credit Agencies", Mr. Brown contended that ascertaining the environmental credentials of projects did not entail sacrificing good financial sense.

He said: "Projects that take full account of environmental and social issues in their design and operation are less likely to fail than those that ignore them. So a green project, in its widest sense, may well help an export credit agency to achieve its financial objectives. Controversy around projects adds to costs; it is in the interests of exporters and credit agencies to address that as a business issue."

The ECGD is a separate government department that reports to the Secretary of State for Trade and Industry. It provides insurance against non-payment to UK exporters, offers cover against political risks overseas and helps to arrange financing packages by guaranteeing bank loans.

It has been at the forefront of change among its European equivalents. It took a leading role on brokering the "Common Approaches on the Environment" agreement last year and has overhauled its staffing and structures comprehensively in order to analyse the environmental impact of projects more fully.

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