Circular Economy
June 2, 2022
Future Climate Scenarios – Representative Concentration Pathways
June 10, 2022
The Equator Principles (EPs) is a risk management framework, adopted by financial institutions, for determining, assessing, and managing environmental and social risk in projects. It is primarily intended to provide a minimum standard for due diligence and monitoring to support responsible risk decision-making.
Risks that relate to the impacts of climate change on certain project are assessed based on the requirements contained in the Equator Principles on climate change risk assessment – Principle 2 and Annex A (Equator Principles Association, 2020a). According to Principle 2 of the Equator Principles a Climate Change Risk Assessment is required:
-
For all Category A and, as appropriate, Category B projects, and will include consideration of relevant physical risks as defined by the TCFD
-
For all projects, in all locations, when combined Scope 1 and Scope 2 Emissions are expected to be more than 100,000 tonnes of CO2 equivalent annually. Consideration must be given to relevant Climate Transition Risks (as defined by the Task force on Climate Related Financial Disclosures, TCFD) and an alternatives analysis completed which evaluates lower Greenhouse Gas (GHG) intensive alternatives.
Under the EP, projects are categorized as follows:
-
Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible, or unprecedented.
-
Category B – Projects with potential limited adverse environmental and social risks and/or impacts that are few, generally site-specific, largely reversible, and readily addressed through mitigation measures.
-
Category C – Projects with minimal or no adverse environmental and social risks and/or impacts.
