Tag Archives: EP4



Review of the Equator Principles – Phase IV – Progress Update

June 7, 2019 EP Association News

The EPA continues to make progress towards the development of updated Equator Principles ‘EP4’ text. The legal review of the draft text, conducted by Norton Rose Fulbright, has now been completed.

The external stakeholder consultation phase has been delayed whilst we completed an enhanced internal consultation and approval processes, particularly on changes to Principle 5. It is anticipated that the public consultation process will now take place from early July once the draft text has been approved for public release by the Association members.

BSR has been engaged to conduct this external engagement on behalf of the EPA and will facilitate a series of webinars as well as face-to-face sessions for a sub-set of invited participants, where stakeholders can provide feedback on the proposed changes. The online form on the Equator Principles website is also available for any member of the public wishing to provide feedback.

The BSR-led public consultation will focus on the specific changes proposed in the targeted update, namely: Social impact and human rights, Climate change, Designated Countries and Applicable Standards, and Scope of applicability of the EPs. The full draft EP4 text will be made available in advance on the website so that all interested parties can provide informed comment. Feedback deemed beyond the scope of EP4 will be noted for consideration as part of subsequent EP revisions or complementary efforts such as Governance Rules changes.

Following the completion of the external consultation process, the Association will take stakeholders’ views and expectations into consideration to see where these could be incorporated into the EPs or other mechanisms, as appropriate. Following a final legal review and approval by the EPA, the final EP4 text is due to be launched in late 2019. A transition period will then follow to allow EPFIs time to implement EP4 within their institutions.

At any time, any interested stakeholder may submit feedback and sign up to be alerted when any EP review updates, including the draft text, are posted via: https://equator-principles.com/ep4/.

Review of the Equator Principles – Phase IV

March 1, 2019 EP Association News

01 March 2019

Progress continues towards the development of an updated Equator Principles ‘EP4’ text. We are now finalising Phase III ‘Agreement with the EP Association membership and initial drafting of the EP4 targeted update’ and transitioning into Phase IV ‘Second round of stakeholder consultation’.

This external stakeholder consultation phase will be somewhat delayed as compared to previously communicated timeframes whilst we complete internal consultation and approval processes, and undertake a legal review of the changes proposed. Norton Rose Fulbright have been contracted to complete a detailed review of the draft text to ensure that there are no legal issues with the draft text before it is released into the public domain.

It is anticipated that the consultation process will now begin in May once the draft text has been approved for public release by the Association members.

An independent third party, BSR, has now been engaged to conduct the external engagement and will facilitate a series of regional webinars and/or face to face sessions where stakeholders can provide specific feedback on the detail of the proposed changes. In addition, an online form on the Equator Principles website will again be made available for anyone wishing to provide feedback. The text will be made available on the website so that all interested parties can provide informed comment.

As has been previously outlined, this will be a targeted update primarily focusing on the following key areas: Social impact and human rights, Climate change, Designated Countries and Applicable Standards and Scope of applicability of the EPs.  The EPA has previously noted that this targeted update will focus primarily on the areas outlined above and may not address all potential areas for change. Feedback beyond the scope of EP4 will be noted for consideration as part of subsequent updates.

Following the completion of the external consultation process, the Association will take stakeholders’ views and expectations into consideration to see where these could be incorporated into the EPs or other mechanisms, as appropriate. Following a final legal review and approval by the EPA, the final EP4 text is due to be released in mid-late 2019.

At any time, any interested stakeholder may submit feedback and sign up to be alerted when any EP review updates, including the draft text, are posted via: https://equator-principles.com/ep4/.

Two commissioned reports supporting EP4 development

December 21, 2018 EP Association News
21 December 2018

The Equator Principles Association Annual Meeting was held in Washington D.C. on 16-18 October with focus on the internal development of the EP4 draft. A summary of outcomes was published online.

Commissioned reports

As inputs to the meeting, the Association commissioned two reports: a Strategic Review, conducted by ERM, and guidance to the Social Risk Working Group (SRWG), provided by Shift. Each supplier was commissioned through a competitive tender process with the supervision and agreement of the Steering Committee (SC).

More than 50 respondents provided feedback through interviews, surveys, or online questionnaire. The Equator Principles Association Steering Committee would like to sincerely thank all  those who participated in the process.

Summaries of each report and their recommendations are hereby shared publicly.

EPA Strategic Review Report: Executive Summary (ERM)

Enhancing the Alignment of the Equator Principles with the UN Guiding Principles on Business and Human Rights: A Public Summary of Shift’s Advice to the EPA

The Association continues to actively consider the findings and recommendations of both reports, and may specify which recommendations were taken up either in EP4 or through other EPA initiatives. Where relevant, we will identify which recommendations were not considered appropriate or de-prioritised.

Stakeholder feedback                                                                                          

Comments on these reports are welcome from any stakeholder. Any interested organisation or individual is invited to submit feedback via the online web form. All subscribers to the EP4 mailing list will receive notice when the draft EP4 text is released. For further information, or to subscribe to news alerts, please go to: https://equator-principles.com/ep4/.