On 18 November 2019, the updated version of the Equator
Principles (EP), EP4, was adopted by the Equator
Principles Association. EP4 will apply to mandated transactions
from 1 July 2020.
The key amendments are as follows:
(a) Scope: a broader range of financial
products will be subject to the EPs;
(b) Designated Countries: new requirements for
projects in certain high-income OECD countries (referred to in the
EPs as Designated Countries);
(c) Climate Change: new requirements with
respect to the assessment of climate change risk and reporting;
and
(d) Human Rights: new requirements with respect
to social impact, human rights, stakeholder consultation and
“Free, Prior and Informed Consent”.
