Equator Principles and Performance Standards on Environmental and Social Sustainability, 2nd Edition

As explained in the preface to this new publication, “lending and investment activities influence the environmental, social and governance impacts of global business far greater than the operational footprint of financial institutions themselves.” As a result, a growing number of organizations in the financial services, natural resources, infrastructure and other industries are managing environmental and social risks by leveraging sophisticated and innovative processes and frameworks explored in this book.

Up-to-date, practical direction
Sustainability is a key driver of business strategy and risk management. Organizations may face significant challenges in a broad range of areas, including indigenous consultation, climate change and human rights. The Equator Principles and IFC Performance Standards are viewed by the financial sector as the leading global frameworks for the proper management of sustainability risks in project development around the world. This new edition of Equator Principles and Performance Standards on Environmental & Social Sustainability: A Guidebook offers detailed direction for legal practitioners and advisors on the application of the relevant standards, including the Equator Principles that were updated in 2020.

This second edition features:

• An in-depth discussion of the Equator Principles – the framework applied by 108 global banks for evaluating project-related financings and used as a best practice guide for environmental and social risk management. This analysis reflects revisions made in the EP4 framework that took effect in October 2020
• Up-to-date guidance on the IFC Standards, taking into account developments that have occurred since the publication of the first edition of this text
• Enhanced discussions on climate change and human rights
• The addition of a glossary to help readers better understand key terms and their meaning

This new publication will be particularly useful for:

• Lawyers helping their clients integrate best practices on environmental and social risk management and meet regulatory expectations
• In-house counsel who can assist their companies develop and implement sustainability strategies and manage environmental and social risk
• Investors/risk management practitioners integrating sustainability and ESG considerations or focusing on the mining, oil and gas, infrastructure, financial and banking services sectros
• Financial institutions adopting environmental and social risk frameworks
• Consultants advising their clients on environmental and social risk and sustainability performance

Note: All views of the authors of this book are their own and do not represent the views of BMO Financial Group or its affiliates.