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 the Equator Principles 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 may 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.
The Equator Principles are supported by a growing suite of guidance documents. Recent publications include guidance on data centre projects (2026), a joint publication with UNEP FI on nature-based risk assessment (2026), and good practice notes on the role of E&S agents and movable maritime assets (2025).
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. The latest iteration of the Equator Principles, the 'EP4', also expressly recognises the role of financial institutions in achieving the goals of the Paris Agreement and the UN Sustainable Development Goals.
Participants
As of June 2026, over 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 signatories of the Equator Principles Limited ('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. Adopting the Equator Principles therefore represents a firm commitment to responsible environmental and social risk management in 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.