London, 05 November 2019
Tag Archives: Review of the Equator Principles
London, 20 September 2019
The recent external stakeholder consultation on the draft text of EP4 was conducted on behalf of the EPA by BSR. They have now completed the consultation process and their recommendations are with the Association for consideration as we look to finalise the text of EP4.
The draft text of EP4 was released on 24 June 2019 and stakeholder feedback closed on 23 August 2019 (deadline extended following stakeholder feedback).
During that time, BSR held 6 face-to-face meetings and 4 webinars with industry and non-industry stakeholders to solicit feedback on the detail of the draft text. Further feedback was also received via email or through the EP website. In summary:
- 151 people across 90 organisations attended an event
- 63 detailed written submissions representing the views of 251 organisations were received (some submissions were co-signed by multiple parties).
The EPA thanks all of those that took time to submit written feedback and/or attend an event. Your input is appreciated as we seek to update the text of EP4 before a final vote by members later this year. A report of the findings of the consultation process will be published once the EPA has agreed how to respond to the recommendations.
It remains the intention of the EPA to launch EP4 in Q4 2019. We will keep stakeholders updated with progress as we get closer to the launch.
London, 12 August 2019
A review of the fourth version of the Equator Principles (EP4) is currently ongoing: equator-principles.com/ep4. The deadline for comment on the draft of EP4 has been extended to 23 August.
We greatly appreciate the level of engagement with a diverse range of stakeholders which has resulted in both positive feedback and constructive criticism. All comments provided will be duly considered and discussed while finalising the EP4 text.
As part of this process, several stakeholders have questioned the ambition level of the EP4 update, and have suggested the EPs shift from a risk framework to a policy platform.
We understand the rationale for these suggestions — indeed this was discussed extensively at the 2018 Annual General Meeting of EPFIs. We concluded that the EPs add the most value in remaining true to our original design as a risk management framework for determining, assessing and managing environmental and social risk in projects.
The EPA includes nearly 100 commercial banks, development banks, and export credit agencies, who have varying geographical footprints, sizes and mandates. All are subject to their own policies as well as the laws and regulations in the countries in which they operate. It is up to each EPFI to set the ambition of their own policies and risk appetite. Each EPFI is also able to participate in various policy-setting initiatives and associations external to the Equator Principles.
The strength of the EPs and their market positioning is in setting a minimum common framework to help financial institutions come together to assess and manage environmental and social risks in project-related financings. Keeping in mind EPA’s commitment to adhere to a regular and periodic update cycle of the Principles, we will continue to evaluate this focus in future updates.
– The Steering Committee and EP4 working group leads of the Equator Principles Association
London, 24 June 2019
Following extensive internal review and consultation, as well as input from the initial round of public consultation, the draft text of Equator Principles 4 (EP4) is hereby released for consultation.
It is intended that this draft text be used as the basis for a formal round of public consultation, led on behalf of the EP Association by BSR.
The public consultation period is expected to run from now until mid-August.
The EPA is committed and open to all stakeholder views and would like to encourage all interested parties via the ‘SUBMIT FEEDBACK’ button on https://equator-principles.com/ep4/, where you will also find more information about the EP4 process.
Following the end of the consultation period, the EPA will consider the findings and make further changes to the proposed text, as agreed by the membership, before holding a final vote on the revised Principles.
London, 21 May 2019
The Equator Principles Association has been made aware of a website impersonating the Association. The impersonating site has released a fake version of EP4 and an incorrect message stating that three EPFIs have been de-listed for non-compliance.
The Equator Principles’ official website is: equator-principles.com (not .org or other). This should be referred to for any news from the EP Association.
The Secretariat can be contacted at secretariat [at] equator-principles.com for any verification.
Update – 27 May 2019
The website impersonating EPA has been updated to reflect that it was part of a campaign. It now points any member of the public to the real EPA website to share feedback regarding the development of EP4.
The Association welcomes any interested member of the public to share their views via the feedback form at equator-principles.com/ep4/. The page also contains a sign-up form for email updates, such as a notice when the forthcoming (real) EP4 draft text is posted for consultation.
8 October 2018
The EP Association is making tangible progress with the targeted update of the EPs, with a draft set of ‘EP4’ thematic proposals for members to debate at the upcoming Annual Meeting.
The first round of stakeholder consultation has now been completed. As communicated on the EP website previously, Phase II of the EP4 update process entailed focused EP Association group work and internal discussion on key topics and thematic areas, as well as external Stakeholder Consultation, and lasted from March – September 2018. The EP Association appreciated receiving feedback from a diverse group of stakeholders, and would like to express our thanks for the input received. An independent third party (ERM) was engaged in May to undertake a review covering elements of the wider EP strategy and the targeted EP4 update. ERM led the external Stakeholder Consultation process, which included interviews, an online survey, and written feedback via the EP website was conducted with a diverse group of stakeholders representing regulators, academia, financial institutions, clients, industry associations and civil society groups.
Taking stakeholders’ views and expectations into consideration, member-led working groups have been active developing and reviewing thematic proposals on changed wording. Proposed draft changes to the EP text have been developed for the following target areas:
• Social Risk (social impact and human rights)
• Climate Change
• Designated Countries and applicable standards, and
• Scope of Applicability of the EPs.
The Association has now moved into Phase III of the update process as we share detailed working group proposals with the wider EPFI membership. The proposals are being shared through the EP Association regional groups and detailed discussions will occur at the upcoming Annual Meeting during October 2018. An update will be shared by the Association after the event*.
A second round of public and stakeholder consultation is planned for early 2019 (indicatively February – May 2019), which will be conducted on the basis of the draft changes to the EP text.
Any interested organisation or individual is invited to subscribe to news alerts, and to submit feedback via the online web form. All subscribers to the EP4 mailing list will receive notice when consultation on the draft text is announced.
For more information, to submit feedback and sign up to news alerts, please go to: https://equator-principles.com/ep4/.
Tags: Review of the Equator Principles
* Following the 2017 EP AGM and as part of the announcement of the EP4 update process, the EP Association discussed developing a clarification note regarding application of the EPs in Designated Countries. As EP4 update working group discussions began, it became clear that our efforts should focus on the longer update process, as a quick agreement on clarifications for Designated Countries would distract from the work needed to develop the EP4 draft. All work on updating our approach in Designated Countries will be reflected in the EP4 update rather than in an interim clarification note.
22 June 2018
The EP Association is currently in Phase II of the EP4 update, with two streams of work underway:
An independent third party has been engaged to undertake a review covering elements of the wider EP strategy and the targeted ‘EP4’ update. The review includes a set of interviews, an online survey, and written feedback received via the form available on this page. Stakeholders representing regulators, academia, financial institutions, clients, industry associations and civil society groups are among the groups included. The review is expected to be completed by the end of July 2018.
EPFI Working Groups
Parallel to the stakeholder consultations, EPFI Working Groups are reviewing the sections of the EPs relevant to the key thematic areas identified for targeted update: social impact and human rights, climate change, designated countries and applicable standards, and scope of applicability of the EPs. Once each Working Group is in the process of proposing changes to the text, they will be reviewed initially by the Steering Committee, then presented to the membership. The Working Groups are led by EPFIs themselves and comprise members that volunteered to engage in the review process. Any member EPFI is eligible to join a Working Group to contribute to the process of working towards draft text for EPA-wide review at the annual meeting in October this year.
As always, any interested stakeholder is invited to subscribe to news alerts, and to submit feedback via the online web form. A second round of stakeholder consultation is planned for early 2019 (indicatively February – May 2019), on the basis of a set of potential changes to the EP text.