Dutch NGO BankTrack has called on the Equator Principles to ramp up oversight of its members – and kick out laggards – after finding that member banks fail to meet the requirements of the sustainability risk framework for most “high risk” projects they finance.
BankTrack found that the implementation of grievance mechanisms or stakeholder engagement processes, required by the Principles in high-risk projects, were not evidenced in 24 out of 37 projects it analysed (65%).
In 16 cases (43%), there was no evidence of either a grievance mechanism or stakeholder engagement process, according to the study.
Projects analysed were in sectors such as oil, gas, hydropower and mining.
The fallout from one such project – the controversial Dakota Access Pipeline (DAPL) in the US – is understood to have been the prompt for the most recent review of the Equator Principles, which ended late last year.
The publication of the fourth iteration of the Equat…