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Article

24 Jun 2019

Author:
The Equator Principles Association

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

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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...

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