Rooted in the reality that energy and industrial projects and infrastructure can have immense environmental and social impacts, the Equator Principles (“EP”) is a risk management framework used by financial institutions to determine, assess and manage environmental and social risks in projects. It is a voluntary undertaking that is currently adopted by 96 financial institutions (“EPFIs”) and administered by the Equator Principles Association (“EPA”). The EP is composed of ten principles that provide a baseline for determining, assessing and managing environmental and social risk in projects, which EPFIs individually adopt as internal policy and enforce through financial documentation.
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