Equator Principles

How do you ensure you have managed project risks effectively?

The Equator Principles are a framework and set of guidelines for evaluating social and environmental risks in project finance activities. In these principles, the financial industry has a set of environmental and social benchmarks for managing these risks in development project finance globally.

By thoroughly adopting and auditing the Equator Principles in relation to your projects, you can show banks, sponsors, investors, government agencies and other stakeholders your commitment to social responsibility and environmental responsibility.

Covering ten key areas, the Equator Principles provide a common baseline and framework for the implementation of internal environmental and social procedures and standards for project financing activities across all industries:

• Principle 1: Review and Categorization of Projects;
• Principle 2: Social and Environmental Assessment;
• Principle 3: Applicable Social and Environmental Standards;
• Principle 4: Action Plan and Management System;
• Principle 5: Consultation and Disclosure;
• Principle 6: Grievance Mechanism;
• Principle 7: Independent Review;
• Principle 8: Covenants;
• Principle 9: Independent Monitoring and Reporting; and
• Principle 10: Reporting.

The Benefits

At a time when financial institutions have been under pressure for a perceived lack of transparency and risk management in other areas of their business, adherence to the Equator Principles will go a long way to safeguarding investments in project finance.

To this end, we provide a variety of services addressing these needs, including:

• Environmental and Social Assessment to Sponsors (as per Principle 2);
• Independent Reviews for Banks, in Particular Mandated Lead Arrangers (as per Principle 7);
• Independent Monitoring and Reporting (as per Principle 9); and
• Gap Analysis of Environmental Management Systems.

Our expertise in independent auditing and verification can help your projects meet the most widely recognized standards in the areas of Forestry, Energy, Bio-fuels sustainability, Environment, Health and Safety, or Labor conditions, minimizing your project related risks and protecting your reputation.

For more information:

• Attend our Related Training
• View Equator Principles Related Training
• View Other Services Related to Equator Principles
• Why SGS for Equator Principles