Banks reduce risk by adopting Equator Principles

Financial Institutions are taking stronger measures to reduce their reputational risks. 

36 Banks, Export Credit Agencies and other organisations have now signed up to the “Equator Principles“, an industry approach for financial institutions in determining, assessing and managing environmental & social risk in project financing.

By adopting the principles the banks confirm that “They will not provide loans directly to projects where the borrower will not or is unable to comply with our environmental and social policies and processes.”

The Principles are based on World Bank and IFC Pollution Prevention and Abatement Guidelines.

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