Earlier this week, a fake Equator Principles (EP) 4 was released which outlined significant advancements and reinforcements to the EPs, including the development of a Principle 11, which would safeguard the integrity of membership by expelling EP Financial Institutions (EPFIs) for repeatedly financing projects that violate the principles.
The EPs are a global framework to support risk decision-making on environmental and social issues when financing projects in sensitive sectors or geographies.
A statement was also released, which said Mizuho Financial Group, Mitsubishi UFJ Financial Group, and Sumitomo Mitsui Banking Corporation were found noncompliant due to their participation in financing the coal-fired power generation projects Nghi Son 2 and Van Phong 1 in the Republic of Vietnam and Cirebon 2 in Indonesia, and therefore ejected from membership.
However, the EP Association said in a statement that a website impersonating the Association released a fake version of EP4 and an incorrect message stating that three EPFIs have been de-listed for non-compliance.
The EP Association is currently undertaking a targeted review of the Equator Principles which is getting close to being finalised. Following a final legal review and approval by the EPA, the final EP4 text is due to be released in mid-late 2019.
Proposed draft changes to the EP text have been developed for the following target areas:
• Social Risk (social impact and human rights);
• Climate Change;
• Designated Countries and applicable standards; and
• Scope of Applicability of the EPs.
Any interested stakeholder may submit feedback and sign up to be alerted when any EP review updates, including the draft text, are posted via: https://equator-principles.com/ep4/.