About Adoption

Adoption of the Equator Principles (EPs) is open to any financial institution that meets the relevant adoption requirements and agrees to meet the ongoing reporting requirements.

Adoption by a financial institution is voluntary but once such adoption has been made, the adopting entity must take all appropriate steps to implement and comply with the EPs.

Financial institutions are encouraged to adopt the EPs through their group holding company or any other group entity which permits a broad and consistent commitment to the EPs across their relevant business functions and operating subsidiaries.

A prospective adopter should:

The prospective adopter might also consider:

  • Seeking advice from an external party on application and implementation,
  • Discussing application and implementation with an existing adopter.

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About Adoption

Adoption of the Equator Principles (EPs) is open to any financial institution that meets the relevant adoption requirements and agrees to meet the ongoing reporting requirements.

Adoption by a financial institution is voluntary but once such adoption has been made, the adopting entity must take all appropriate steps to implement and comply with the EPs.

Financial institutions are encouraged to adopt the EPs through their group holding company or any other group entity which permits a broad and consistent commitment to the EPs across their relevant business functions and operating subsidiaries.

A prospective adopter should:

The prospective adopter might also consider:

  • Seeking advice from an external party on application and implementation,
  • Discussing application and implementation with an existing adopter.

Related Content:

About Adoption

Adoption of the Equator Principles (EPs) is open to any financial institution that meets the relevant adoption requirements and agrees to meet the ongoing reporting requirements.

Adoption by a financial institution is voluntary but once such adoption has been made, the adopting entity must take all appropriate steps to implement and comply with the EPs.

Financial institutions are encouraged to adopt the EPs through their group holding company or any other group entity which permits a broad and consistent commitment to the EPs across their relevant business functions and operating subsidiaries.

A prospective adopter should:

The prospective adopter might also consider:

  • Seeking advice from an external party on application and implementation,
  • Discussing application and implementation with an existing adopter.

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The Benefits

The Equator Principles (EP) have become the financial industry standard for environmental and social risk management in projects. Financial institutions adopt the EPs to ensure that the projects they finance are developed in a socially responsible manner and reflect sound environmental management practices. By doing so, negative impacts on project-affected ecosystems and communities should be avoided where possible, and if unavoidable, should be reduced, mitigated and/or compensated for appropriately.

Adopters believe that the adoption of and adherence to the EPs offers significant benefits to them, their borrowers and local stakeholders through their borrowers’ engagement with locally affected communities. Adopters should be able to better assess, mitigate, document and monitor the credit and reputation risk associated with financing development projects.

Additionally, the collaboration and learning on broader policy application, interpretation and methodologies between adopters, and with their stakeholders, helps knowledge transfer, learning and best practice development. The adopters‘ role as financiers affords them opportunities to promote responsible environmental stewardship and socially responsible development.

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The Benefits

The Equator Principles (EP) have become the financial industry standard for environmental and social risk management in projects. Financial institutions adopt the EPs to ensure that the projects they finance are developed in a socially responsible manner and reflect sound environmental management practices. By doing so, negative impacts on project-affected ecosystems and communities should be avoided where possible, and if unavoidable, should be reduced, mitigated and/or compensated for appropriately.

Adopters believe that the adoption of and adherence to the EPs offers significant benefits to them, their borrowers and local stakeholders through their borrowers’ engagement with locally affected communities. Adopters should be able to better assess, mitigate, document and monitor the credit and reputation risk associated with financing development projects.

Additionally, the collaboration and learning on broader policy application, interpretation and methodologies between adopters, and with their stakeholders, helps knowledge transfer, learning and best practice development. The adopters‘ role as financiers affords them opportunities to promote responsible environmental stewardship and socially responsible development.

Related Content:

The Benefits

The Equator Principles (EP) have become the financial industry standard for environmental and social risk management in projects. Financial institutions adopt the EPs to ensure that the projects they finance are developed in a socially responsible manner and reflect sound environmental management practices. By doing so, negative impacts on project-affected ecosystems and communities should be avoided where possible, and if unavoidable, should be reduced, mitigated and/or compensated for appropriately.

Adopters believe that the adoption of and adherence to the EPs offers significant benefits to them, their borrowers and local stakeholders through their borrowers’ engagement with locally affected communities. Adopters should be able to better assess, mitigate, document and monitor the credit and reputation risk associated with financing development projects.

Additionally, the collaboration and learning on broader policy application, interpretation and methodologies between adopters, and with their stakeholders, helps knowledge transfer, learning and best practice development. The adopters‘ role as financiers affords them opportunities to promote responsible environmental stewardship and socially responsible development.

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The Annual Fee

There is a minimal fee payable by Equator Principles Financial Institutions (EPFIs) on an annual basis in respect of external costs incurred in the management, administration and development of the Equator Principles (EPs).

The fee is approved and voted upon by the EPFIs at their Annual Meeting each year. The Annual Fee is payable on adoption and if an EPFI adopts part way through the financial year the amount is pro-rated.

The Annual Fee for the Financial Year 1 July 2014 - 30 June 2015 is GBP £3,265.00

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The Annual Fee

There is a minimal fee payable by Equator Principles Financial Institutions (EPFIs) on an annual basis in respect of external costs incurred in the management, administration and development of the Equator Principles (EPs).

The fee is approved and voted upon by the EPFIs at their Annual Meeting each year. The Annual Fee is payable on adoption and if an EPFI adopts part way through the financial year the amount is pro-rated.

The Annual Fee for the Financial Year 1 July 2014 - 30 June 2015 is GBP £3,265.00

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The Annual Fee

There is a minimal fee payable by Equator Principles Financial Institutions (EPFIs) on an annual basis in respect of external costs incurred in the management, administration and development of the Equator Principles (EPs).

The fee is approved and voted upon by the EPFIs at their Annual Meeting each year. The Annual Fee is payable on adoption and if an EPFI adopts part way through the financial year the amount is pro-rated.

The Annual Fee for the Financial Year 1 July 2014 - 30 June 2015 is GBP £3,265.00

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The Adoption Process

It is very important that the adopting institution read and understand the Equator Principles (EPs) and the EP Association Governance Rules before embarking on the adoption process.

1. The prospective Equator Principles Financial Institution (EPFI) is required to complete the Adoption Agreement and Contact Form.

2. The Agreement and Contact Form should be emailed or faxed to the EP Association Secretariat.

3. It is then promptly determined whether the adoption requirements have been met and the forms are forwarded to the EP Association Steering Committee Chair to obtain confirmation.

4. Then an adoption date is agreed between the EP Association Secretariat and the prospective EPFI.

5. The adopting institution should also prepare a press release and send it to the EP Association Secretariat for review before it is made public.

6. On the adoption date the EPFI should announce their adoption on their website and this is reciprocated on the EP website.

7. The EPFI will receive a welcome email from the EP Association Steering Committee Chair and the EP Association Secretariat will announce the adoption to the EP Association membership.

Related Content:

The Adoption Process

It is very important that the adopting institution read and understand the Equator Principles (EPs) and the EP Association Governance Rules before embarking on the adoption process.

1. The prospective Equator Principles Financial Institution (EPFI) is required to complete the Adoption Agreement and Contact Form.

2. The Agreement and Contact Form should be emailed or faxed to the EP Association Secretariat.

3. It is then promptly determined whether the adoption requirements have been met and the forms are forwarded to the EP Association Steering Committee Chair to obtain confirmation.

4. Then an adoption date is agreed between the EP Association Secretariat and the prospective EPFI.

5. The adopting institution should also prepare a press release and send it to the EP Association Secretariat for review before it is made public.

6. On the adoption date the EPFI should announce their adoption on their website and this is reciprocated on the EP website.

7. The EPFI will receive a welcome email from the EP Association Steering Committee Chair and the EP Association Secretariat will announce the adoption to the EP Association membership.

Related Content:

The Adoption Process

It is very important that the adopting institution read and understand the Equator Principles (EPs) and the EP Association Governance Rules before embarking on the adoption process.

1. The prospective Equator Principles Financial Institution (EPFI) is required to complete the Adoption Agreement and Contact Form.

2. The Agreement and Contact Form should be emailed or faxed to the EP Association Secretariat.

3. It is then promptly determined whether the adoption requirements have been met and the forms are forwarded to the EP Association Steering Committee Chair to obtain confirmation.

4. Then an adoption date is agreed between the EP Association Secretariat and the prospective EPFI.

5. The adopting institution should also prepare a press release and send it to the EP Association Secretariat for review before it is made public.

6. On the adoption date the EPFI should announce their adoption on their website and this is reciprocated on the EP website.

7. The EPFI will receive a welcome email from the EP Association Steering Committee Chair and the EP Association Secretariat will announce the adoption to the EP Association membership.

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Applicability & Membership

Adoption of the Equator Principles (EP) is determined by whether the financial institution is “Active in Project Finance, Project Finance Advisory, and/or Project-Related Corporate Loans”.

A financial institution is Active in Project Finance, Project Finance Advisory, and/or Project-Related Corporate Loans when:

  • it has current loans on its books which are subject to the EP, or
  • it has provided Project Finance, Project Finance Advisory Services, and/or Project-Related Corporate Loans within the previous 24 months, or
  • it currently provides Project Finance, Project Finance Advisory Services, and/or Project-Related Corporate Loans which do not meet the criteria defined in the EP but commits to apply the EP to all future transactions which do meet those criteria.

An Equator Principles Financial Institution (EPFI) is a financial institution that has adopted the EP, in accordance with the procedures in the Governance Rules, and is “Active in Project Finance, Project Finance Advisory, and/or Project-Related Corporate Loans”.

The ongoing requirements for an EPFI are:

  • that it shall continue to be Active in Project Finance, Project Finance Advisory and/or Project-Related Corporate Loans;
  • that it shall provide reporting at least annually about its implementation of the EP, in accordance with Principle 10 and Annex B: Minimum Reporting Requirements of the EP and Rule 6 of the Governance Rules;
  • that it shall pay the Annual Fee in a timely manner;

Related Content:

Applicability & Membership

Adoption of the Equator Principles (EP) is determined by whether the financial institution is “Active in Project Finance, Project Finance Advisory, and/or Project-Related Corporate Loans”.

A financial institution is Active in Project Finance, Project Finance Advisory, and/or Project-Related Corporate Loans when:

  • it has current loans on its books which are subject to the EP, or
  • it has provided Project Finance, Project Finance Advisory Services, and/or Project-Related Corporate Loans within the previous 24 months, or
  • it currently provides Project Finance, Project Finance Advisory Services, and/or Project-Related Corporate Loans which do not meet the criteria defined in the EP but commits to apply the EP to all future transactions which do meet those criteria.

An Equator Principles Financial Institution (EPFI) is a financial institution that has adopted the EP, in accordance with the procedures in the Governance Rules, and is “Active in Project Finance, Project Finance Advisory, and/or Project-Related Corporate Loans”.

The ongoing requirements for an EPFI are:

  • that it shall continue to be Active in Project Finance, Project Finance Advisory and/or Project-Related Corporate Loans;
  • that it shall provide reporting at least annually about its implementation of the EP, in accordance with Principle 10 and Annex B: Minimum Reporting Requirements of the EP and Rule 6 of the Governance Rules;
  • that it shall pay the Annual Fee in a timely manner;

Related Content:

Applicability & Membership

Adoption of the Equator Principles (EP) is determined by whether the financial institution is “Active in Project Finance, Project Finance Advisory, and/or Project-Related Corporate Loans”.

A financial institution is Active in Project Finance, Project Finance Advisory, and/or Project-Related Corporate Loans when:

  • it has current loans on its books which are subject to the EP, or
  • it has provided Project Finance, Project Finance Advisory Services, and/or Project-Related Corporate Loans within the previous 24 months, or
  • it currently provides Project Finance, Project Finance Advisory Services, and/or Project-Related Corporate Loans which do not meet the criteria defined in the EP but commits to apply the EP to all future transactions which do meet those criteria.

An Equator Principles Financial Institution (EPFI) is a financial institution that has adopted the EP, in accordance with the procedures in the Governance Rules, and is “Active in Project Finance, Project Finance Advisory, and/or Project-Related Corporate Loans”.

The ongoing requirements for an EPFI are:

  • that it shall continue to be Active in Project Finance, Project Finance Advisory and/or Project-Related Corporate Loans;
  • that it shall provide reporting at least annually about its implementation of the EP, in accordance with Principle 10 and Annex B: Minimum Reporting Requirements of the EP and Rule 6 of the Governance Rules;
  • that it shall pay the Annual Fee in a timely manner;

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