Corporate Responsibility / Sustaninability Updates - December 2013
UPDATE OF EQUATOR PRINCIPLES: EP III
The Equator Principles are a voluntary credit risk management framework for determining, assessing and managing environmental and social risk in project finance transactions.
These principles have been promoted by myriad institutions in the financial sector in coordination with the International Finance Corporation, an agency attached to the World Bank. There are currently 79 adopting institutions around the world, including 5 Spanish institutions.
The financial institutions that have adopted these principles will only provide financing to projects that meet the requirements established in the 10 Equator Principles. The Principles are global and apply to all industry sectors.
The Equator Principles have recently been updated on the basis of a series of recommendations on key thematic areas, namely: scope, climate change, human rights, reporting, transparency, stakeholder engagement and governance.
The new update of the Equator Principles has a direct and important consequence, namely: a larger number of finance transactions will be assessed under a strengthened environmental and social risk management framework.
1. UPDATED EQUATOR PRINCIPLES RELEASED: THE NEW GHG REQUIREMENTS
(i) GHG emissions quantification
(ii) GHG emissions alternatives analysis
(iii) GHG emissions reporting