Ensuring a stronger focus on human rights in the Equator Principles

TheEquator Principlesis a risk management framework for assessing and managing environmental and social risk in project finance. It is currently used by 100 commercial banks, development banks, and export credit agencies, in 37 countries. The Equator Principles are currently revised to ensure a stronger focus on social and human rights.

In this policy document, the Danish Institute for Human Rights has made recommendations to ensure that the revised standard enables Equator Principles financial institutions to meet their responsibility to respect human rights in accordance with the UN Guiding Principles on Business and Human Rights (UNGPs).

While the revised draft of the Equator Principles includes a commitment to respect human rights in line with the UNGPs, a disconnect remains between this commitment and its incorporation in the operative provisions of the draft.

The Danish Institute for Human Rights’s recommendations touch upon, among others, the distinction between designated and non-designated countries; the benchmarks used to identify and assess environmental and social impacts; the consultation of indigenous peoples; the function of non-judicial grievance mechanism; and the definition of human rights risks and impacts.