Equator Principles Strategic Review
The Equator Principles, the de facto environmental and social benchmark used in project finance, will undergo a strategic review. Will this help with further mainstreaming or shifting financing more radically into other directions?
Since its launch in 2003, the Equator Principles have been adopted by over 65 financial institutions from around the globe. They are effectively a derivative of the IFC Performance Standards, which is currently undergoing a review process (about which I blogged previously ).
Yesterday, the Equator Principles Association
The Equator Principles will continue to be pegged to the IFC Performance Standards. Thus, this strategic review will help harmonize the Equator Principles with the emerging/updated IFC Performance Standards. The review will also provide the Association to address specific concerns raised by critiques of the Equator Principles, which are illustrated in
What are your expectations from this review and what progress would you like to see? Is there further scope for mainstreaming to cover sovereign wealth funds and equivalents and the private equity market?
About the author: Mehrdad Nazari (MBA, MSc, LEAD Fellow) is a Corporate Responsibility, Sustainability Reporting & ESIA Advisor, and Director of