Financing of the Dakota Access Pipeline project in the USA
Societe Generale is one of several banks involved in the financing of the Dakota Access Pipeline project located in the United States of America.
In the framework of its business activities, Societe Generale only supports projects that are in compliance with all the rules and regulations in the jurisdiction in which it operates and in accordance with the Group’s Environmental and Social (E&S) General Guidelines and with the risk management framework of the Equator Principles adopted by financial institutions for determining, assessing and managing environmental and social risk. These principles include respect of human rights, and in particular of the rights of indigenous people.
In light of the protests against the construction of the project, and in particular the Standing Rock Sioux Tribe’s views that their rights have not been respected, Societe Generale has raised these views with the project’s sponsors. The bank will continue to closely monitor the situation with the project’s sponsors and the other lenders.
On December 4th, US federal administration decided to halt construction, calling for a full environmental review and re-evaluation of whether the pipeline’s route should be altered.(updated 12/04/2016)
In order to assist and seek a resolution, Foley Hoag LLP, an independent human rights expert, has been retained to advise the lenders to the Dakota Access Pipeline and to review various matters related to the permitting process, including compliance with applicable law related to consultations with Native Americans. This review will include the evaluation of policies and procedures employed by the project’s sponsors, in the areas of security, human rights, community engagement and cultural heritage. Following this review, the independent expert will develop recommendations for improvements in line with international standards with respect to the sponsors’ social policies and procedures going forward. The lenders understand that the sponsors will review and consider all of the recommendations.