Equator Principles

The Equator Principles (EP) are a set of voluntary guidelines for international financial institutions that promote environmental and social goals in project finance, such as the financing of industrial and infrastructure projects, though they, specifically, do not create any public or private rights or liabilities. Environmental and social concerns for project finance are especially vital since these projects are frequently in secluded, ecologically delicate regions and may have an effect on indigenous peoples. Furthermore, such areas often have governments that are weak, ineffective, or not committed to promoting environmental and social objectives. The EP are considered the most successful attempt to set international standards for responsible environmental and social investing, but they have also come under serious criticism. This entry will describe the EP and ...