About
The idea of the initiative is for the Financial Institutions implementing the principles (EP Financial Institution) to not support projects where the client is unwilling or unable to meet with the Equator Principles. Instead, the EP Financial Institutions are responsible for adopting EPs in their internal policies concerning environmental and social risks and to encourage and advise their clients to address and manage the potential environmental and social risks and impacts, going forward.
The Principles apply globally, to all industry sectors and to the following five financial products:
- Project Finance Advisory Services
- Project Finance
- Project-Related Corporate Loans
- Bridge Loans
- Project-Related Refinance, and Project-Related Acquisition Finance
Who does it impact?
The Equator Principles will affect the availability of project financing from EP Financial Institutions.
As many of these institutions will not provide project financing or project related loans where the borrower does not comply with the Equator Principles, the Principles may also have an impact on a borrower's access to funding.
Status: Launched
The Equator Principles were launched in Washington DC on 4 June 2003.
Relation to other initiatives and regulations
The Equator Principles are developed based on existing environmental and social policy frameworks established by the International Finance Corporation.
Participants
As of November 2025, 130 financial institutions have adopted the Equator Principles.
Thommessen's comments
The Equator Principles provide a framework that will create a financial industry benchmark ensuring that projects financed and advised on by financial institutions that are members of the Equator Principles Association ('EP Financial Institutions') are developed in a manner that is socially responsible and reflects sound environmental management practices.
EP Financial Institutions have an obligation to report on the relevant projects on an annual basis. Being an EP Financial Institution hence implies that the financial institution has taken on a firm commitment with respect to CSR for its project financing activities. The most recent published activity report from the calendar year 2024 showed that the number of in-scope transactions reaching financial close increased by 25% compared to the previous year, reflecting the growth adoption and influence of the Equator Principles across global financial markets.