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Equator Principles (EP4, 2020)

International (Equator Principles Association)
vEP4 (2020)
4 domains
10 controls

The Equator Principles (EP4, July 2020) are a voluntary risk-management framework adopted by ~100 Equator Principles Financial Institutions (EPFIs) for determining, assessing and managing environmental and social risk in project finance. EP4 applies to Project Finance Advisory Services, Project Finance (capital costs >= USD 10 million), Project-Related Corporate Loans and Bridge Loans. The framework references the IFC Performance Standards on Environmental and Social Sustainability and the World Bank Group Environmental, Health and Safety Guidelines as the applicable Environmental and Social Standards for projects in non-Designated Countries. EP4 strengthened EP3 with new requirements on climate change risk assessment (Annex A, including TCFD-aligned reporting and alternatives analysis for high-emission projects), human rights due diligence (Annex B, aligned with the UN Guiding Principles on Business and Human Rights) and the rights of Indigenous Peoples (FPIC).

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Framework Domains (4)

Equator Principles - Management and Stakeholder Engagement

3 controls
Controls in the Equator Principles - Management and Stakeholder Engagement domain of Equator Principles (EP4, 2020)3 controls
CodeTitle
EP4-P4Environmental and Social Management System and Equator Principles Action Plan
EP4-P5Stakeholder Engagement
EP4-P6Grievance Mechanism

Equator Principles - Monitoring and Reporting

2 controls
Controls in the Equator Principles - Monitoring and Reporting domain of Equator Principles (EP4, 2020)2 controls
CodeTitle
EP4-P10Reporting and Transparency
EP4-P9Independent Monitoring and Reporting

Equator Principles - Review and Loan Documentation

2 controls
Controls in the Equator Principles - Review and Loan Documentation domain of Equator Principles (EP4, 2020)2 controls
CodeTitle
EP4-P7Independent Review
EP4-P8Covenants

Equator Principles - Scope and Assessment

3 controls
Controls in the Equator Principles - Scope and Assessment domain of Equator Principles (EP4, 2020)3 controls
CodeTitle
EP4-P1Review and Categorisation
EP4-P2Environmental and Social Assessment
EP4-P3Applicable Environmental and Social Standards

Maps to 1 other framework

10 total controls
CSRD
3 source controls mapped|3 target controls covered
30%

Frequently Asked Questions

What is Equator Principles (EP4, 2020)?

Equator Principles (EP4, 2020) is a compliance framework from International (Equator Principles Association) with 4 domains and 10 controls. The Equator Principles (EP4, July 2020) are a voluntary risk-management framework adopted by ~100 Equator Principles Financial Institutions (EPFIs) for determining, assessing and managing environmental and social risk in project finance. EP4 applies to Project Finance Advisory Services, Project Finance (capital costs >= USD 10 million), Project-Related Corporate Loans and Bridge Loans. The framework references the IFC Performance Standards on Environmental and Social Sustainability and the World Bank Group Environmental, Health and Safety Guidelines as the applicable Environmental and Social Standards for projects in non-Designated Countries. EP4 strengthened EP3 with new requirements on climate change risk assessment (Annex A, including TCFD-aligned reporting and alternatives analysis for high-emission projects), human rights due diligence (Annex B, aligned with the UN Guiding Principles on Business and Human Rights) and the rights of Indigenous Peoples (FPIC). It is used by organisations to establish and maintain compliance with industry standards and regulatory requirements.

How many controls does Equator Principles (EP4, 2020) have?

Equator Principles (EP4, 2020) has 10 controls organised across 4 domains. The largest domains are Equator Principles - Management and Stakeholder Engagement (3 controls), Equator Principles - Scope and Assessment (3 controls), Equator Principles - Monitoring and Reporting (2 controls). Each control defines specific requirements that organisations must implement to achieve compliance.

What frameworks does Equator Principles (EP4, 2020) map to?

Equator Principles (EP4, 2020) maps to 1 other compliance frameworks. The top mapping partners are CSRD (30% coverage). Use our comparison tool to explore control-level mappings between frameworks.

How do I get started with Equator Principles (EP4, 2020) compliance?

Start your Equator Principles (EP4, 2020) compliance journey by running a self-assessment on our platform to identify your current compliance posture. Our AI advisory can answer specific questions about Equator Principles (EP4, 2020) requirements, and cross-framework mapping helps you leverage existing controls from other frameworks you may already comply with. Create a free account to access all 10 controls and track your progress.

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