In July 2010 the Equator Principles website announced that ‘The Equator Principles (EPs), the leading voluntary standard for managing social and environmental risk in project financing, will formally adopt new Governance Rules from 1 July 2010, the result of several years’ intensive work by the Equator Principles Financial Institutions (EPFIs). The Governance Rules (“the Rules”), that form the basis of the newly created Equator Principles Association, have been established to confirm the purpose, operation and management structure of the Equator Principles. The Rules formalize existing practices and procedures, increase the transparency of the Association, and will ensure that EPFIs meet their responsibilities such as public reporting on EP implementation’.
Shawn Miller, Chair of the EPFI Steering Committee and Citi’s Environmental and Social Risk Management (ESRM) Director said: “The Equator Principles have had deep 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.”