RBC Financial Group on Monday became the first Canadian financial institution to adopt the “Equator Principles,” a voluntary set of guidelines to manage social and environmental issues related to large-scale project financing in developing countries.

These principle will be applied globally to project financings in all industry sectors, including mining, oil and gas, and forestry.

The Equator Principles were first adopted by ABN AMRO Bank N.V., Barclays plc, Citigroup Inc., Credit Lyonnais, Credit Suisse First Boston, HypoVereinsbank, Rabobank, Royal Bank of Scotland plc, WestLB AG, and Westpac Banking Corp. and are based on certain policies and guidelines of the International Finance Corp. (IFC), the private sector lending arm of the World Bank.

“As a leading North American financial services provider, we recognize our role in supporting and advocating sustainable business practices,” said Suzanne Labarge, vice chairman and chief risk officer, RBC Financial Group, in a news release. “The adoption of the Equator Principles enhances our existing environmental risk management policies and commitment to sustainable development.”

In adopting the Equator Principles, RBC undertakes to provide loans only to those projects whose sponsors can demonstrate to the satisfaction of RBC that they have addressed key social and environmental issues in accordance with our policies and processes.

The full text of the Equator Principles and FAQ about the Equator Principles can be found at www.equator-principles.com.