Chair of EP reiterates commitment to climate, social impacts and biodiversity
1 November, 2021 EP Association News
1 November 2021
Equator Principles Financial Institutions recognise the critical role and responsibility they have in tackling the environmental and social challenges facing the world today, specifically the interconnectedness of climate, biodiversity and social impacts.
Our members adopt and implement the Equator Principles ‘to ensure that the Projects we finance and advise on are developed in a manner that is socially responsible and reflects sound environmental management practices’.
The current Equator Principles “EP4”:
- support the objectives of the 2015 Paris Agreement
- require a Climate Change Risk Assessment for physical and transition risks, aligned with the risk categories of the Task Force on Climate-Related Financial Disclosures
- commit to protecting human rights, Indigenous people and align to the UN Guiding Principles
- encourage biodiversity data sharing.
Amit Puri, EP Association Chair, and Global Head of Environmental and Social Risk Management, Standard Chartered:
“At a time when much global attention is focussed, quite rightly, on the critical and urgent need to address climate related issues, I want to remind EPFIs and our stakeholders of the importance the EPs place on climate and its linkages with biodiversity and human impacts.
The EPs provide a framework for our members to ensure that risks to the physical and social environment are anticipated and addressed. They also provide a community for E&S practitioners to collaborate.
The challenges the world faces today require partnerships and capital at a scale we have never seen before. The EP Association is committed to playing its part with all stakeholders that support the financial services ecosystem”.
To support its members with effective implementation the Association has released detailed Guidance Notes on Climate Change Risk Assessments and Biodiversity Data Sharing as well as Implementation of Human Rights Assessments and Evaluating Projects with Affected Indigenous People. The Association also supports several working groups that host training and provide support to Equator Principles Financial Institutions to consider and discuss developments in these areas.
(Guidance documents can be found on the Equator Principles Documents and Resources Page).
The Equator Principles is a risk management framework, adopted by financial institutions, for determining, assessing and managing environmental and social risk in projects. It is intended to provide a minimum standard for due diligence and monitoring to support responsible risk decision-making. More information can be found on the EP website.
As at 1 November 2021, 126 financial institutions in 38 countries are members of the EP Association.
EPA Primary Contact: Courtenay Smith
Telephone: +44 7764 435 921
Standard Chartered Primary Contact: Bart Nash
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