The Equator Principles (EPs) is a risk
management framework adopted by financial institutions to
determine, assess and manage environmental and social risks of the
projects they finance. Established in 2003, the EPs have been
adopted by 96 financial institutions in 37 countries. These
financial institutions are known as Equator Principles Financial
Institutions (EPFIs).
The EPs aim to ensure that the projects that EPFIs finance are
developed in a manner that is socially responsible and reflect
sound environmental management practices. The most recent version
of the EPs, known as EP III, came into force in June 2014.
In November 2017, the Equator Principles Association (EP
Association) announced a review of EP III in response to
the changing approach of financial institutions, regulators,
proponents and civil society to environmental and social risks. On
24 June 2019, the EP Association released a draft version four of
the Equator Principles (Draft EP4).
