Clients of financial institutions often have production or distribution activities that have significant impacts on society and the environment. Banks may finance operations that cause deforestation or pollution, and thereby be an indirect cause of external costs. The Equator Principles is a set of voluntary principles that banks have adopted to manage these issues. Is this a sufficient and effective response to managing the impacts of project financing activities, and the criticisms of nongovernmental organizations and other concerned groups?
Spring 2008
