Public Release: Equator Principles Strategic Review Consultant Report and Equator Principles Association Summary Response

24 May 2011

The Equator Principles  (EP) Association is pleased to announce the conclusion of the Equator Principles Strategic Review Process with the public release of the Executive Summary and Appendix of the Equator Principles (EP) Strategic Review consultant report and associated EP Association Summary Response.

Launched last October, the Strategic Review consisted of a comprehensive research, review and stakeholder feedback process led by external consultants under the direction of the EP Association Steering Committee. During this process, targeted feedback was elicited from EP Association members, other financial sector peers, clients and industry bodies, civil society, and additional feedback was received from other interested parties.

In early 2011, the Strategic Review consultants delivered their report of findings and recommendations and the EP Association has completed an initial review and evaluation of these findings. In order to increase transparency, the EP Association has publicly released the Executive Summary and Appendix of the EP Strategic Review consultant report and a corresponding Summary Response from the EP Association. The Summary Response indicates some of the short-term, medium-term and long-term actions that the EP Association will prioritise and consider in our next stage discussions.

"This 7 month process has helped the EP Association identify many complex issues facing the development of the Equator Principles as the leading industry standard for managing social and environmental risk, including scope of application, transparency, implementation and governance challenges. Many of the issues discussed were informed by - and ultimately we benefited greatly from - feedback we received from the stakeholders we consulted. The Strategic Review report will inform our EP III Update process which will occur later this year." said Shawn Miller, Chair of the EP Association and Managing Director of Environmental and Social Risk Management at Citi.

It is important to emphasise that the Strategic Review is the first step in a longer term process to determine the future of the EPs. This will include an EP III Update Process beginning in the latter half of 2011. This EP III Update Process will include a separate public comment and stakeholder feedback process, and a draft of the revised principles will be made publicly available for stakeholder comment and input for a reasonable minimum period. This process will allow the EP Association to fully debate and evaluate the recommendations coming out of the Strategic Review, to evaluate the impact of planned changes in the IFC Performance Standards (on which the EPs are based), and to conduct further stakeholder engagement on the future of the EPs. We welcome your ongoing interest and input.