Skip Content

Draft text of Equator Principles 4 released for consultation; proposed changes include increased focus on human rights

Get RSS feed of these results

All components of this story

Article
27 August 2019

79 organisations call on Equator Principles Association to develop a grievance mechanism

Author: Banktrack & 78 other organisations

22 August 2019

We thank you for the opportunity to review and comment on the most recent draft of the Equator Principles (EP4). We notice with regret that the current review process has not taken on board the need to strengthen accountability for the Equator Principles initiative. We are therefore writing to you to urge the Equator Principles Association (EPA) to initiate a process to develop an accountability mechanism to which project-affected people and other legitimate stakeholders can raise instances of alleged non-compliance with the Principles by signatory banks with the Association...

The Equator Principles do not currently offer a grievance mechanism at either the level of member banks or the initiative itself. We suggest that the most straight-forward and effective way to fulfill this expectation of the UN Guiding Principles is through establishing a central and independent accountability mechanism at the EPA level...

We understand the challenges of establishing such an initiative-level accountability mechanism as part of the current review process. We are aware that the EPA has established a Remedy Working Group and has begun to explore this issue. We would encourage it to go further and launch a formal process to develop such a mechanism alongside the launch of EP4...

Read the full post here

Article
27 August 2019

Investors with $1.2 trillion submit human rights recommendations to Equator Principles review process

Author: Investor Alliance For Human Rights

On August 23, 2019, institutional investors representing a total of US$1.2 trillion in assets under management submitted recommendations to the most recent review process of the Equator Principles (EP4).

The signatories commend the Equator Principles Association (EPA) and its signatory financial institutions (EPFIs) for their ongoing efforts to review and revise the requirements laid out in the Equator Principles (EPs) to better reflect international standards, particularly when it comes to established expectations for all business actors – including financial institutions – to respect fundamental human rights.

However, signatories express concern that the current draft of EP4 does not adequately align with the UN Guiding Principles on Business and Human Rights, the authoritative global framework on business and human rights, nor the OECD Due Diligence Guidance for Responsible Business Conduct.

As such, the investor submission focuses on key recommendations for alignment across EP4 and accepted business and human rights standards. The signing investors view this alignment as critical in ensuring the future relevance of the EPs as a social and environmental risk management framework for the financial sector.

Read the full post here

Article
7 August 2019

Commentary: "New Equator Principles Draft Falls Short of Adequately Assessing Social Risk and Protecting the Rights of Indigenous Peoples"

Author: First Peoples Worldwide

The release of the EP4 draft [the latest revision of the Equator Principles] marks the penultimate step in the EPA’s process to revise the social and environmental risk framework of the Equator Principles... EP4’s inclusion of language and targets to assess Climate Change Risk is a notable step towards... alignment with the 2015 Paris Climate Change agreement... However, First Peoples Worldwide remains concerned about the lack of a human rights-based implementation of free, prior and informed consent (FPIC) and the distinction between Designated and Non-Designated countries. Neither of these revisions are in line with international standards set forth in the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), nor aligned with the expectations of Indigenous Peoples which flow from international human rights instruments. Similarly, more specificity and accountability on human rights and climate impacts in reporting is necessary to ensure effective implementation of EP4 by clients, by EPFIs, and by the EPA.... The following recommendations to strengthen EP4 are necessary both to evidence a true commitment to respecting the human rights of Indigenous Peoples and to provide a global standard for adequately assessing social and environmental risk: 

  1. EP4 must include FPIC as a right, and not solely a process, as enumerated in the United Nations Declaration on the Rights of Indigenous Peoples and other international instruments. Reliance on host country standards to implement FPIC reduces the Equator Principles’ efficacy to both assess social risk and to respect Indigenous rights.
  2. EP4’s continued distinction between Designated and Non-Designated Countries contradicts their stated commitment to integrating respect for all Indigenous Peoples globally.
  3. EP4 must include a stronger approach to creating access to grievance mechanisms and to instituting remedies, as set forth in the UNGPs.
  4. The EPA must ensure that EP4 integrates the perspectives of Indigenous Peoples, their representative organizations and civil society. 

Read the full post here

Article
24 June 2019

EP4 draft shared, stakeholder consultation begins

Author: EP Secretariat

Following extensive internal review and consultation, as well as input from the initial round of public consultation, the draft text of Equator Principles 4 (EP4) is hereby released for consultation.

It is intended that this draft text be used as the basis for a formal round of public consultation, led on behalf of the EP Association by BSR.

The public consultation period is expected to run from now until mid-August.

The EPA is committed and open to all stakeholder views and would like to encourage all interested parties via the ‘SUBMIT FEEDBACK’ button on https://equator-principles.com/ep4/, where you will also find more information about the EP4 process.

Following the end of the consultation period, the EPA will consider the findings and make further changes to the proposed text, as agreed by the membership, before holding a final vote on the revised Principles.

DRAFT FOR CONSULTATION Equator Principles version 4 – June 2019

Summary of changes in draft of EP4 for consultation

Read the full post here

Article
24 June 2019

SUMMARY OF PROPOSED CHANGES IN EP4 DRAFT: For consultation June-August 2019

Author: The Equator Principles Association

This document provides an overview of the main proposed changes between EPIII and the draft of EP4... Changes have been made in four key areas:

3. HUMAN RIGHTS AND SOCIAL RISK

The Preamble states that EPFIs will fulfil their responsibility to respect Human Rights in line with the UN Guiding Principles on Business and Human Rights. Principle 2 strengthens language on human rights, stating that the Environmental and Social Impact Assessment (ESIA) included in the Assessment Documentation should include the assessment of potential adverse Human Rights impacts.

Two options related to ‘Free, Prior and Informed Consent’ (FPIC) are presented: 

Option 1
For projects with impacts on indigenous peoples [...] clients “are expected to engage in meaningful consultation with affected Indigenous People, with the goal of achieving their Free Prior and Informed Consent.” In the case that it is unclear whether consent has been achieved, the EPFI should evaluate if further consultation efforts are required and whether the clients’ mitigation and remedy plans are appropriate.

Option 2
For projects with impacts on indigenous peoples [...] clients “must demonstrate to the EPFI’s satisfaction, that the Free, Prior and Informed Consent of the indigenous peoples affected by the Project is obtained.”

4. CLIMATE CHANGE

The Preamble recognizes EPFI’s role in the 2015 Paris Climate Change agreement, as well as responsibilities for reporting climate-related information in line with the TCFD recommendations...

Read the full post here

Article
4 June 2019

THE EQUATOR PRINCIPLES DRAFT FOR CONSULTATION - JUNE 2019

Author: The Equator Principles Association

Read the full post here

By continuing to use the site, you agree to the use of cookies. more information

/*
/*
/*

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

/*

Close

/*
/*