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Project Finance & Equator Principles Compliance Framework
About The Equator Principles
Social & Environmental Sustainability Ratings
Project Appraisal Scheme
Socio-Environmental
Corporate Governance
José Antônio Campos Chaves
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Summary
1 - About The Equator Principles
1.1 - Equator Principles Financial Institutions (EPFI)
1.2 - Equator Principles Management Structure
1.3 - The 10 Equator Principles
2 - Social & Environmental Sustainability Rating
2.1 - Sustainability Market-Rating and Company Value Increase
2.2 - Equator Principles’ Social & Environmental Rating Framework
3 - Project Appraisal Scheme
3.1 - Early Project Review and Risk Categorization
3.2 - Project Social & Environmental Risk Assessment
3.3 - Action Plan
3.4 - Social & environmental Management Program
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1 - About The Equator Principles
Project Finance, a method of funding in which the lender looks primarily to the quality of
revenues generated by a single project both as the source of repayment and as security for the
exposure, plays an important role in financing development throughout the world. Project
financiers may encounter social and environmental issues that are both complex and
challenging, particularly with respect to environment-intensive and natural sourced projects.
In June 2003, a group of major financial institutions adopted a set of voluntary guidelines
known as the ‘Equator Principles’ with the intention of creating an industry benchmarking for
assessing and managing environmental and social issues in the project finance sector.
The Equator Principles are based on the policies and guidelines of the International Finance
Corporation (IFC), the private-sector development arm of the World Bank. Their genesis was
partially an acknowledgment by financiers of their responsibility to promote responsible social
and environmental practices, particularly in emerging markets.
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It was also recognition that responsible