Equator Principles (EP4, 2020)
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).
Equator Principles (EP4, 2020) is a compliance framework from International (Equator Principles Association) with 4 domains and 10 controls that map to 7 other frameworks. 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). Every control below carries what it requires and what an assessor expects to see.
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Framework Domains (4)
Equator Principles - Management and Stakeholder Engagement
Equator Principles - Monitoring and Reporting
Equator Principles - Review and Loan Documentation
Your Compliance Coverage
If you comply with Equator Principles (EP4, 2020), you already cover:
CSRD
30%
3 controls mapped
Compare →TCFD Recommendations
20%
2 controls mapped
Compare →UN Guiding Principles on Business and Human Rights (UNGPs)
20%
2 controls mapped
Compare →+ 4 more: ISO/IEC 38500:2024 (10%), ISO 27018:2019 (10%)
See all 7 mapped frameworks ↓Maps to 7 other frameworks
What is Equator Principles (EP4, 2020) and who does it apply to?
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.
What does Equator Principles (EP4, 2020) actually require?
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.
If I already comply with another framework, how much of Equator Principles (EP4, 2020) do I already cover?
Equator Principles (EP4, 2020) maps to 7 other compliance frameworks. The top mapping partners are CSRD (30% coverage), TCFD Recommendations (20% coverage), UN Guiding Principles on Business and Human Rights (UNGPs) (20% coverage). Use our comparison tool to explore control-level mappings between frameworks.
How do I implement Equator Principles (EP4, 2020)?
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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