Time to Improve the Equator Principles, BankTrack Says

24 October 2011 - Sustainability Investment News , Robert Kropp

As the Equator Principles Association prepares a draft of new principles, BankTrack calls for increased transparency and more attention to climate change and human rights. Banks subscribing to the Equator Principles commit to managing environmental and social risks in their project finance transactions. At present, 70 banks in 27 countries have been designated as Equator Principles Financial Institutions (EPFIs). EPFIs fulfill their mission by not financing projects that are not in compliance with social and environmental policies and procedures established by the International Finance Corporation (IFC) and the World Bank. Four of the 70 EDFIs—Bank of America, Citigroup, Ex-Im Bank, and JPMorgan Chase—are based in the US. The Equator Principles Association is scheduled to release a draft text of its new version of the Principles this week, a step made necessary by the publication in August of a new Sustainability Framework by IFC. In advance of the Association's draft text, BankTrack, a Netherlands-based nongovernmental organization (NGO), has published recommendations to ensure that the draft text makes "a positive difference to project affected communities and to the environment.” Read More.