Overview
Equator Principles is a globally recognised risk management framework used by financial institutions to identify, assess and manage environmental and social risks when providing project finance. First launched in 2003, it serves as a common baseline for responsible project-related financing and reflects internationally accepted standards for environmental and social sustainability.
Mission and focus areas
Equator Principles aims to promote sustainable finance by ensuring that Projects financed by its signatory institutions are developed in a socially responsible manner with sound environmental management practices. It focuses on integrating environmental, social and governance (ESG) risk considerations into project decision-making processes. The framework aligns with broader sustainability goals by emphasising due diligence, stakeholder engagement and risk mitigation throughout a Project’s lifecycle.
Structure and governance
Equator Principles is governed by a Steering Committee elected by member institutions, supported by the Office of the Equator Principles. From 2024, Equator Principles Limited legally represents the Principles and carries out contracting on their behalf. The governance framework includes a CEO, Secretariat and technical advisors responsible for daily management, strategic development and stakeholder engagement. Signatories commit to annual reporting and participation in committees and working groups that shape implementation guidance.
Programs and offerings
Equator Principles offers a suite of resources, including the EP4 framework — the latest version of the Principles — and a range of guidance documents to support consistent application across diverse project types. It publishes an annual reporting database that tracks implementation by Equator Principles Financial Institutions (EPFIs). Additional outputs include thematic publications, training initiatives and case studies that help practitioners interpret and apply the framework in practice. These tools aid institutions in managing ESG risks and enhancing transparency in project finance.
