Equator Principles

Equator Principles


Equator Principles Association

Type(s) of Tool

PrinciplesSupport sustainability incorporation at institutional or strategic level, less specific than Guidelines.


Tools applicable to all sectors

Lifecycle Phase(s)

PrioritizationAuthorities decide which projects to realize and how to allocate resources., Project PlanningGeneral strategy for a project’s delivery is developed., Concept DesignTechnical experts broadly outline the project’s basic characteristics., ProcurementThe provision of goods and services to realize a project are tendered and closed., FinanceDevelopers decide how to pay for their project., Detailed DesignTechnical experts further elaborate the Concept Design., ConstructionThe asset is constructed in line with design, budget and timeline.

Open Source


Language Availability

Chinese, English, French, Italian, Japanese, Korean, Portuguese, Russian, Spanish

Country of Origin


Date of Development





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