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New Equator Principles Guidance released - with climate and human rights high on the agenda

In case you missed it, the Equator Principles Association has recently released its long-awaited refreshed guidance on the implementation of the Principles. Version 4 of the Principles applies from October this year, and brings into effect new requirements in relation to climate risk assessments and human rights due diligence in particular. 

The Equator Principles are a key ESG risk management tool for lenders and have been highly influential in focusing minds on ESG issues in major projects. Lenders and sponsors alike should take note of the refreshed Principles and Guidance, and in particular should think ahead to ensure they have the specialist support necessary to meet their requirements.

The EPs have greatly increased the attention and focus on social/community standards and responsibility, including robust standards for indigenous peoples, labour standards, and consultation with locally affected communities within the Project Finance market. They have also promoted convergence around common environmental and social standards.

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Tags

• business and human rights, climate change and environment