The Equator Principles is a risk management framework for financial institutions to identify, assess and manage environmental and social risks when financing Projects.

The Equator Principles (EP4) were updated in July 2020 and came into effect in October 2020.

The framework comprises of 10 EPs that apply to five financial products:

  • Project Finance Advisory services,
  • Project Finance,
  • Project- Related Corporate Loans,
  • Bridge Loans and
  • Project-Related refinance and Project-Related Acquisition finance

Specific criteria exist for each product in which a Financial Institution should apply the principles. So far 134 Financial Institutions in 38 Countries have officially adopted the Equator Principles

Various resources exist, which include guidance notes and best practices.