Five Questions about the Equator Principles

2 April 2012 - Earth Capital Partners, Richard Burrett

"The Equator Principles (EPs) are a voluntary set of standards for determining, assessing and managing environmental and social risk in project financing. Project financiers often encounter environmental and social issues that are both complex and challenging, particularly with respect to projects in the emerging markets.  Equator Principles Financial Institutions (EPFIs) commit to not providing loans to projects where the borrower will not or is unable to comply with their respective environmental and social policies as well as procedures that implement the EPs. The Equator Principles were developed by private sector banks and launched in June 2003. The banks have modeled on the environmental and social standards and policies of the International Finance Corporation (IFC); now called Performance Standards. The Equator Principles have become the de facto standard for banks and investors on how to assess major development projects around the world." Read More.