The Equator Principles Association (EPA) and the International Finance Corporation (IFC) have announced they are officially joining efforts to help strengthen the capacity of financial institutions to manage environmental and social risk under the IFC’s Performance Standards - a comprehensive and practical approach to managing risks in emerging markets.

The Equator Principles, launched in 2003, are now adopted by 101 financial institutions from 38 countries and provide a framework closely aligned to the IFC. Now the two organisations have signed a Memorandum of Understanding (MoU), outlining the collaboration’s key tenet – to expand existing training and capacity building on Performance Standards.

At the MoU signing in Paris, alongside the OECD Financial Institutions Practitioners Workshop, the chair of the Equator Principles, Amit Puri of Standard Chartered, noted: “Our objective is to ensure that all EPA members apply the Performance Standards and related technical resources – which capture invaluable and critical insights from numerous practitioners and experts around the world – with the rigour and consistency with which they are intended and spread good practice amongst financial institutions wherever feasible.”

Following the MOU signing, a joint work plan will be developed and implemented over the coming years.

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