Advising the Equator Principles Association on its Equator Principles 4 guidance for incorporating environmental and social considerations into loan documentation

LONDON/NEW YORK: A multi-jurisdictional team of A&O lawyers has advised the Equator Principles Association on its latest Guidance Notes for incorporating environmental and social considerations into loan documentation following the inception of the Equator Principles (4th Edition). 

The Equator Principles are a widely acknowledged benchmark used by global financial institutions for the assessment and management of the impact of large-scale development projects on the environment and society.  The Equator Principles (4th Edition) were launched in July 2020 and are currently applicable to transactions financed by over a hundred adhering financial institutions located in 37 countries around the world. 

A&O worked closely with the Equator Principles Association, including its Secretariat and Steering Committee,comprised of member banks and export credit agencies, in producing the Loan Documentation Guidance Notes.  The Equator Principles Association published these Guidance Notes in December 2020 as a reference point for financial institutions, project sponsors, stakeholders and advisers when structuring and documenting financings in line with the Equator Principles (4th Edition).

The A&O team was led by New York partner and head of the firn’s firm’s Global Environmental Law Group and co-head of the firm’s International Trade and Regulatory Law Group, Ken Rivlin, with London partner and co-head of the firm’s International Trade and Regulatory Law Group, Matthew Townsend and Projects, Energy and Infrastructure partner Lorraine Bayliss.  London associate Joanna Mobed and New York senior counsels Felise Cooper and Maria Christopher Bell also advised, along with senior associate Tom d’Ardenne and associates Sophie Davis and Nick Ognibene.

Commenting on this work, Ken Rivlin, head of the Firm’s Global Environmental Law Group said: "The Equator Principles have played a critical role in helping project finance parties properly assess and manage environmental and social impacts caused by infrastructure and other projects.  In doing so, they also have very tangibly improved environmental and social performance of newer projects and promoted a more consistent and rigorous global approach to sustainable development.  We have advised clients for many years on the earlier iterations of the Equator Principles, and are honoured to have had the opportunity to work with the Equator Principles Association as they launch their most ambitious effort yet to promote responsible project development.  We look forward to continuing to work with the EPA, its member banks, and the wider universe of project finance parties as the market begins implementing EP4."