Revising the Equator Principles: Why Banks should not become the New Sustainability Regulators of Emerging Markets

29 January 2013 - World Growth

On 13 August 2012 a draft of the updated Equator Principles (EP) was released for stakeholder consultation and public comment. This latest revision of the EP is a marked attempt to dramatically alter the role of financial institutions in emerging markets, from financiers to sustainability regulators.  By writing certain levels of environmental and social performance into Project Finance documentation, which go beyond the levels prescribed by national law, EP lenders (EPFIs) become obligated to monitor, verify and remedy borrower compliance with sustainability standards. Read More.