New Governance Rules Introduced For the Equator Principles

The Equator Principles (EPs), the advanced international standard for managing social and environmental risks in project financing, will formally adopt new Governance Rules from 1 July 2010. The new rules are the result of several years of intensive work by the Equator Principles Financial Institutions (EPFIs). The Governance Rules (“the Rules”) form the basis of the newly established Equator Principles Association, and include development goals, operation modes and management structures for the Equator Principles.

The Rules formalize the existing practices and procedures of the Association and have increased its transparency. It will ensure that EPFIs meet their responsibilities by adopting such measures as issuing public reports on EP implementation. Shawn Miller, Chair of the EPFI Steering Committee and Citibank’s Environmental and Social Risk Management (ESRM) Director said: “The Equator Principles have had a profound and lasting positive impact on the global financial services sector: the Principles are now one of the most successful voluntary environmental and social risk diligence frameworks in the sector, with the number of adopting institutions growing every year since their launch in 2003. The Rules significantly strengthen the Equator Principles, and the new governance framework ensures that there are effective decision making procedures for the enlarged group of adopting institutions. The Rules will make us more efficient as we continue to grow, and members will be held accountable to them. We believe that the Rules are an important step forward in a broader strengthening of the Association’s governance and EP implementation.” (Source: Website of the Equator Principles)