The Equator Principles (EP) is a risk management framework and a set of voluntary guidelines for financial institutions to assess and manage environmental & social risks in project financing.
- Environmental and Social Assessment (ESA): Conduct due diligence to assess potential environmental and social risks and impacts of the project.
- Applicable Social and Environmental Standards: Determine the relevant international social and environmental standards applicable to the project.
- Action Plans and Management Systems: Develop action plans and management systems to mitigate identified risks and impacts.
- Independent Review and Compliance: Engage independent experts to review and validate the environmental and social assessments.
- Reporting and Transparency: Collect data on implementation of the Equator Principles, including project assessments, environmental and social issues identified, actions taken.
The Equator Principles are primarily focused on project financing, which refers to the provision of loans or other financial services for large infrastructure projects such as power plants, mines, oil and gas facilities, and dams. These projects often have significant environmental and social impacts, and the Equator Principles aim to ensure that they are developed in a responsible and sustainable manner.
Let's create a better and more transparent world by better and more transparent processes.
Explore the smart ProcessHorizon web app for automated process mapping and design: https://processhorizon.com