Equator Principles

The Equator Principles are a set of guidelines, promoted by the International Finance Corporation (IFC) that address the environmental and social issues associated with major development projects worldwide. They 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
    Principle 10: EPFI Reporting.

Over 60 banks and financial institutions have voluntarily adopted the Equator Principles. They provide an effective project finance social and environmental risk management tool, through the incorporation of IFC Performance Standards (PS).

SGS can provide the following services:

• Environmental and Social Assessment to sponsors (as per Principle 2)
• Independent Reviews for banks, in particular Mandated Lead Arrangers (as per Principles 7)
• Independent Monitoring and Reporting (as per Principles 9)
• Gap analysis of environmental management systems
• Equator Principles training

SGS continue to offer environmental and social audit support for the project as it becomes operational. This includes Sustainability Customised Audit Solutions leading to third party Environmental Management System Certification ISO 14001:2004 and Social Accountability 8000 standard certification.

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