Renew clean energy project prepared by arcadis india pvt. The equator principles eps is a risk management framework, adopted by financial institutions, for determining, assessing and managing environmental and social risk in projects and is primarily intended to provide a minimum standard for due diligence and monitoring to. Project finance with total project capital costs of usd 10 million or more. The equator principles, launched in 2003,updated in 2006, and most recently in 20, is an evolving initiative. Scotiabank is a member of the following organizations. Human rights, trade and investment matters the articles in this publication are intended to encourage debate and do not necessarily reflect the policies of amnesty international.
The equator principles ep is a risk management framework, adopted by financial institutions, for determining. It is primarily intended to provide a minimum standard for due diligence and monitoring to support responsible risk decisionmaking. Epiv broadens the scope of the equator principles eps to cover a wider range of loans, including project refinancing and acquisition financing, as well as. Pdf the equator principles are a transnational corporate social. This is ensured by the systematic application of our project finance policy and the equator principles. Equator principles implementation green investment group. Meeting to discuss ngo ideas on new equator principles, based on banktrack publication.
Reporting on equator principles implementation for the. Equator principles financial institutions epfis have increased from the original 10 founding members to 78. The equator principles eps, launched in 2003, are a financial industry. This paper analyses the compliance of the 79 equator principles financial institutions epfi with the seven mandatory requirements. Equator principles corporate social responsibility and. The equator principles environmental and social risk. Equator principles eps apply globally and to all industry sectors. On june 4, 2003, ten leading banks from seven countries announced the adoption of the.
The principles were originally drawn up to address the sustainability impact of project finance. It is primarily intended to provide a minimum standard for due diligence and monitoring to. Kyoto protocol, on march 18, 2003, the counsel of the european union the ceu approved a directive establishing the regulation of european union eu greenhouse gas emissions based on a newlycreated eu market for tradable emissions credits. Today, there are fortyfive banks who have adopted the ep, comprising over 80% of the project finance market across the globe. Equator principles overview established in 2003, the equator principles ep are a financial industry benchmark for determining, assessing and managing environmental and social risks in. Rabobank was one of the banks that adopted the equator principles when these were first launched in 2003. Socially responsible indices scotiabank is included in a number of indices, based on our performance on environmental, social and. Read part one, on the implications for financial services companies, here. More than 90 banks and financial institutions have voluntarily adopted the equator principles, which are based on ifcs performance standards. Updated in july 2006, these state that equator principle finance institutions epfis will ensure they only provide finance to projects that are developed in a manner that is socially responsible and reflect sound environmentalmanagement practices.
The equator principles ep are a voluntary set of standards adopted by financial institutions for determining, assessing and managing environmental and social risks in projectrelated transactions. Financial institutions epfis from 37 countries have adopted the equator principles. Project finance advisory services where total project capital costs are usd 10 million or more. Hsbc voluntarily adopted the equator principles when they were first launched in 2003. They are an evolving initiative, which has adapted over time to address the growing expectations from a wide range of stakeholders. Zandbergen, 1995 through the creation of voluntary coda of conducte s, the equator principles that provide guidelines for environmental and social project risk assessment and reporting. The equator principles, formally launched in washington dc on 4 june 2003, were based. Equator principles annual report 2017 7 report of results of the equator principles 2017 sems operations considered the guidelines of equator principles iii20 for nondesignated countries like mexico, in americas region. An industry approach for financial institutions in determining, assessing and managing. The ehsguidelines are technical reference documents containing examples of.
The equator principles, launched in 2003, updated in 2006, and most recently in 20, is an evolving initiative which has adapted over time to address growing expectations from a wide range of stakeholders. Equator principles ep a basic framework for the management of social and. The equator principles form a significant and crucial part of citigroups overall global corporate and investment bank gcib environmental and social risk management policy. Furthermore, the frequently used term asset does not refer to the financial product asset finance, which is excluded from the scope of the equator principles. In december 2017, following the acquisition of gib by macquarie group and subsequent renaming of the business to green investment group gig1, the equator principles financing institution epfi was changed to green investment group limited. The ep are adopted and applied voluntarily by whats known as equator principles financial institutions, or epfis. The vpshr provide a short, concise outline of actions companies should take to assess risks and implement public and private security measures in a manner that respects human rights. What links here related changes upload file special pages permanent link. Ngo comments on the proposed revision of the equator principles. The equator principles, formally launched in washington dc on 4 june 2003, were based on existing environmental and social policy frameworks established by the international finance corporation. The voluntary principles on security and human rights. Amnesty international would like to thank all the authors for their contributions, and to acknowledge the assistance of. The equator principles, launched in 2003 and revamped in 2006, are a set of voluntary principles designed to help private lenders make socially and environmentally responsible project financing. Language on human rights was introduced into the main body of epiii for the first time.
Unless stated otherwise, all references to the equator principles in this document relate to the equator principles text dated june 20. Pdf the equator principles, project finance and the. Archived from the original pdf on 23 november 2015. The new version of the equator principles brings about important changes to its application scope, on. Equator principle final ppt free download as powerpoint presentation. Investigating compliancenon compliance with the equator.
The equator principles eps for project finance were launched 10 years ago. The equator principles association epa has published a finalised version of equator principles iv epiv following consultation. The equator principles financial institutions epfis have consequently adopted these principles in order to ensure that the projects we finance are developed in a manner that is socially responsible and reflect sound environmental management practices. The equator principles once again constituted a binding condition for the approval of all project finance supplied by abn amro in 2012. Evaluation of compliance of the baku tbilisiceyhan btc. The equator principles eps were thus formulated in june 2003. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. An overview of banktrackepfi engagement on the equator. The third revision of the equator principles will be launched on june 4, 20, and it will affect applicable transactions signed on or after january 1, 2014. Environmental and social risk in project financing, july 4, 2003 refer appendix 1.
The equator principles, were introduced in 2003 and revised in 2006 and again in 20to the. Since their foundation in 2003, the eps were lauded for. The environmental and social impact assessment report is a document of the borrower. Gib formally adopted the equator principles ep on 2nd december 20. The ehsguidelines are technical reference documents containing e xamples of. Launch of second version equator principles epii equator banks launch equator principles ii. The latest fourth iteration of the equator principles ep4 is due to come into effect on 1 july 2020. A total of 15 new project finance deals in emerging markets were. The equator principles, launched in 2003, updated in 2006, and most recently in 20, is an evolving initiative which has adapted over time to address growing. The equator principles, launched in 2003, were updated in 2006 and then in june 20. These 10 years of existence can be equated to the phase of an adolescent still seeking to establish relevance in an atmosphere of flux and uncertainty. Equator principles have raised public expectations for project finance, and have.
On 4 june 2003, representatives from ten of the worlds largest commercial banks including such household names as barclays, citigroup, abn amro, and royal bank of scotland gathered in washington, dc to unveil an agreement known as the equator principles the principles. Unep inquirycigi research convening 4 the equator principles abstract the equator principles eps are a voluntary code of conduct and a risk management framework for determining, assessing and managing environmental and social risks in projects, such as energy or infrastructure projects. Paribas and the credit committee stage for financing documents to regularly demonstrate its. As of april 2016, 83 equator principles financial institutions epfis from 36 countries have adopted the equator principles. The equator principles eps is a risk management framework, adopted by financial institutions, for determining, assessing and managing environmental and social risk in projects. This is the second blog in a series on the equator principles iii. Draft environmental and social impact assessment 48mw solar pv project mandamari project number. Principles on security and human rights vpshr, to guide companies on security and human rights. Project financing plays an important role in financing development throughout the world.
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