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ARTICLE · 05 DECEMBER 2019

New Version Of Equator Principles Finalised – What Are The Key EP4 Changes?

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On 18 November 2019, the Equator Principles Association (EPA) published the final text of a new version of the Equator Principles (EP4)

United KingdomFinance and Banking

On 18 November 2019, the Equator Principles Association (EPA) published the final text of a new version of the Equator Principles (EP4). This note explains the key changes introduced by EP4, when they apply and what financial institutions should do now to prepare for them. 

Background

The Equator Principles (EPs) are intended to serve as a common baseline for financial institutions to identify, assess and manage environmental and social risks when financing "Projects".

The EPs have been adopted by over 100 financial institutions (EPFIs), with the EPFIs committing:

  • to implement the EPs through their internal environmental and social policies, procedures and standards for financing Projects; and

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