How to get your arms wrapped around the Equator Principles

19 July 2013 - - John Hodges

While many industries grapple with which sustainability standards to follow, the banking industry has a clear framework for infrastructure finance: the Equator Principles. With the launch of the third version of the Equator Principles, or EP III, last month in Amsterdam, the scope and scale of how banks manage environmental and social risks in their financing activities significantly has increased. The Equator Principles provide a framework for determining, assessing and managing such risks in projects that banks might finance. Read More.

Equator Principles III - New Guidelines for Project Finance

9 July 2013 - Dentons, Mark Cheney and Sarah-Jane Hogg

Ten years after their launch, a third version of the Equator Principles, the Equator Principles III (EP III), was adopted by the Equator Principles Association on 14 May 2013. EP III is more robust than its predecessors and of wider scope, creating new compliance challenges for lenders that have signed up to the Equator Principles, and for borrowers seeking financing for projects within the ambit of EP III. Mark Cheney and Sarah-Jane Hogg explain the key changes. Read More.

New Analysis: The Equator Principles in the OECD

17 June 2013 - Project Finance

Permitting and public participation requirements in the 31 countries that the World Bank classifies as high-income Organization for Economic Cooperation and Development (OECD) generally meet or exceed the initial assessment and review requirements of the Equator Principles (EP).  Therefore, when financing a project located in one of these countries, which include the United States and Canada, obtaining a compliance opinion is usually fairly straightforward.  This process, which takes place at the pre-construction stage, is often based on the results of environmental studies, project design specifications, successful completion of the required permitting process, and is contingent upon financing documents including covenants related to monitoring, reporting and compliance ... Read More.

The Equator Principles: How Will The Revisions Impact You?

12 June 2013 - Mondaq - Milbank, Tweed, Hadley & McCloy LLP, Matthew H. Ahrens and Paul Murphy

The third revision (EP III) of the Equator Principles (EPs) will be launched on June 4, 2013, and it will affect applicable transactions signed on or after January 1, 2014. The EPs will continue to function in a substantially similar manner, but the EP III has, among other things, made the EPs applicable to a wider slate of transactions, expanded the scope of underlying review, and imposed additional disclosure and reporting obligations. Although there is time to internalize the revisions during the transition period, failure to comply with the EP III on a going-forward basis could put financial institutions in non-compliant scenarios, if proper arrangements are not made in advance of the effectiveness of these lending guidelines, as revised. This Client Alert provides some guidance about changes due to the EP III to help financial institutions assess related risks for future transactions. Read More.

The New Equator Principles III Amplify CSR For Financial Institutions

12 June 2013 - CSR Newswire - Ariel Meyerstein, Esq., PhD

Last week, the Equator Principles (“EPs”), a private code of conduct adopted by 80 financial institutions globally, released a revised version – EP III that significantly upgrades the banks’ commitments to corporate social responsibility, including human rights, climate change and transparency.  It also broadens their scope of application beyond the narrow confines of project finance structured loans to “project related” corporate loans of US $100 million or more (when certain conditions are satisfied). Significantly, the new EP III may be the first corporate code to recognize the “responsibility to respect human rights by undertaking due diligence” in accordance with the UN Guiding Principles on Business and Human Rights. Read More.

Third Generation of Equator Principles (EP III) is out - What's New?

7 June 2013 - Prizma, Mehrdad Nazari

The Third Generation Equator Principles (or EP III) emerged as a result of a self-imposed Strategic Review. This was initiated in 2010. The outcome of this review includes the adoption of a new governance structure: the Equator Principles Association. A summary of the Strategic Review was published in mid-2011. However, it took over two more years to develop, consult, approve and launch the EP III. Read More.

Natural resource shortages, new Equator Principles and carbon pricing in Australia

5 June 2013 - Ethical Corporation, Stephen Gardner

The Equator Principles, a code used by financial institutions when assessing the environmental and social impacts of large-scale project finance deals, has been formally updated. The new EP III guidelines extend the principles to more types of project finance, strengthen provisions on climate change and human rights, and impose greater public disclosure requirements. Read More.

Equator Principles III comes into effect

5 June 2013 - King & Wood Mallesons, Mark Beaufoy and Jeff Clark

A new version of the Equator Principles came into effect yesterday. The new Equator Principles have been extended in scope and impose new requirements on financial institutions and export credit agencies. For the first time, they include express requirements regarding human rights. Read More.

New Equator Principles to have deeply underwhelming impact on people and planet

4 June 2013 - BankTrack

The long awaited new, third version of the Equator Principles (EP III) (1) will have a deeply underwhelming impact on safeguarding the rights and interests of communities affected by ‘Equator compliant‘ projects, as well as on efforts to stop runaway climate change. Thus concludes BankTrack, the global network of NGOs closely monitoring the Principles since their inception in 2003, at the formal launch of EP III, today in Amsterdam at the 10th Anniversary Conference of the Equator Principles. Read More.

Equator Principles Financial Institutions and Stakeholders Mark the 10th Anniversary of the Equator Principles

4 June 2013

Equator Principles Financial Associations (EPFIs) today gathered in Amsterdam to celebrate the 10th anniversary of the Equator Principles, and the launch of the latest iteration of Equator Principles - EP III. EPFIs were joined by a range of stakeholders, including clients, NGOs, specialist consultants and the media.

Leonie Schreve, Chair of the EP Association Steering Committee and Head of Sustainable Lending at ING who hosted today's event said,

"The 10th anniversary and launch demonstrates the strength of Equator Principles as global environmental and social risk management standard. Today sees the launch of EP III which will mean important environmental and social risk considerations can be applied to even more deals. EP III was supported by an overwhelming majority of our members, and we're also seeing more financial institutions adopting, with our first members from Russia and India adopting in recent weeks."

For further information on go to Equator Principles III