- Equator Principles (EPs) are widely used in infrastructure projects. They help the parties involved to assess environmental and social risks, e.g. the effects of climate change or the impact on endangered species or the affected communities.
- Recently, equator principles have become even more important, especially for the financial institutions providing the funding for public-private partnerships.
- As one of the leading lenders technical advisors, TA Europe has actively been monitoring these developments and our PPP consultant Dr Norayr Badasyan developed TA Europe’s unique assessment tool for analysing and evaluating relevant projects under the prism of environmental and social characteristics.
The Equator Principle Association has launched the fourth version of the Principles in November 2019, which includes several revisions and updates concerning the strengthening of human rights, introduction to climate change risk assessment, overall review of principles, etc. TA Europe has developed its own tool for the assessment of equator principles in order to provide the lenders with profound and transparent analyses.
The tool considers various criteria for assessing the 10 Principles of the EP4. As one of the main foundations, TA Europe based the development of its tool on the indicators of the Exhibit II of the EP4. Afterwards, detailed criteria have been developed for the assessment of each principle according to the updated requirements of the EP4. The assessment was implemented after careful consideration for each criterion according to relevant weights given by the TA Europe experts and consultants.
Image sources: photo greenbridge: euroluftbild.de, photographer: Robert Grahn; infographic: TA Europe