Page 374 - Design for Environment A Guide to Sustainable Product Development

Service Industries 349

FIGURE 19.5 Citigroup’s green offi ce tower in Queens, New York.

With respect to its business operations, Citigroup has developed
an overarching Environmental and Social Risk Management Policy to
help address sustainability considerations from a credit risk as well as
reputational risk perspective. The policy draws upon a variety of
codes and standards, including the Equator Principles for project
financing, in which Citigroup played a leadership role. These princi-
ples call for projects to undergo a Social and Environmental Assess-
ment, that covers a broad variety of issues, including: sustainable
development and use of renewable natural resources; protection of
human health and cultural properties; biodiversity; endangered spe-
cies and sensitive ecosystems; use of dangerous substances; major
hazards; occupational health and safety; fire prevention and life
safety; socio-economic impacts; land acquisition and land use; invol-
untary resettlement; impacts on indigenous peoples and communi-
ties; cumulative impacts of existing and anticipated future projects;
participation of affected parties in the design, review and implemen-
tation of the project; consideration of feasible environmentally and
socially preferable alternatives; efficient production, delivery and use
of energy; pollution prevention and waste minimization; pollution
controls; and solid and chemical waste management.
The financial service industries have introduced a number of
other sets of sustainability principles. For example, the Carbon Prin-
ciples is a set of best practices to help banks manage the lending risks
associated with coal projects. Bank of America, which adopted these
principles, announced in 2008 that it would phase out loans to coal