7.06.2006 - 10:38am ET

(CSRwire) The Equator Principles Financial Institutions (EPFIs) today announced the launch of the revised Equator Principles. The revision underscores how far the financial sector has progressed in embedding in the project finance arena a common set of best practices to manage social and environmental risks related to project financing.

Today's revised principles reflect the experience of the 40 financial institutions around the world that currently apply the Principles. The principles also reflect the recent revisions to the International Finance Corporation's (IFC) Performance Standards, upon which the Equator Principles are in part based. In developing these changes, the EPFIs actively involved clients, civil society groups and official development agencies, all of whom provided constructive and valuable feedback that the EPFIs reviewed and considered in the revision process.

The Equator Principles apply globally and to all sectors and have been revised in the following ways:

Stronger and better social and environmental standards, including more robust public consultation standards.

The EPFIs are proud of the progress the Equator Principles have made in the past three years. The development and application of the Equator Principles have been a huge step forward for the industry, in terms of having a common framework and language for environmental and social issues in the project finance industry. The Equator Principles have enabled the financial institutions to better assess, mitigate, document and monitor the potentially adverse social and environmental risks associated with financing projects.

Participating financial institutions commit to financing only those projects that comply with the Equator Principles, and commit to implementing the revised Equator Principles into business and risk management processes in a manner consistent with its organizational structure. Of the 40 financial institutions that have shared their experience in devising the revised Equator Principles, 33 have today adopted them and the others are expected to do so in the coming weeks.

The full text of the revised Equator Principles and FAQ about the Equator Principles can be found at www.equator-principles.com.

For more information please contact:

Lucie Giraud
1 202 458 4662
1 202 294 0504

For more CSR news and information from this organization:

Corporate Social Responsibility Profile for International Finance Corporation

More CSR headlines for news category

Corporate Governance

Video, commentary & research for

Corporate Governance