Equator Principles
Organization
Type(s) of Tool
Sector(s)
Lifecycle Phase(s)
Open Source
Language Availability
Country of Origin
Date of Development
Version
Description
The Equator Principles (EP) are a risk management framework for determining, assessing and managing environmental and social risk in projects that can be adopted by financial institutions. The tool provides a minimum standard for due diligence to support responsible risk decision-making. The EP apply globally, to all industry sectors and to four types of financial products: (1) project finance advisory services; (2) project finance; (3) project-related corporate loans; (4) bridge loans. Financial institutions can officially commit to the adoption of the EP.
Tool Outcome
Financial Institutions that adopt the Equator Principles commit to implementing them in their internal environmental and social policies, procedures and standards for financing projects as well as to not provide any new finance or corporate loans to projects where the client will not or is unable to comply with the Principles.
Sustainability Criteria
The ten Equator Principles are:
– Review & categorization
– Environmental & social assessment
– Applicable environmental & social standards
– Environmental & social management system
– Stakeholder engagement
– Grievance mechanism
– Independent review
– Covenants
– Independent review
– Reporting & transparency