UN experts warn banking sector’s Equator Principles on lack of accountability
Ryan Brightwell, Human Rights Campaign Lead, ryan@banktrack.org

Ryan Brightwell, Human Rights Campaign Lead, ryan@banktrack.org
The success
UN human rights experts tasked with supporting the right to development and with interpreting obligations of business under the UN Guiding Principles on Business and Human Rights (UNGPs) have written to the governing body of the Equator Principles – the banking sector initiative for managing the environmental and social impacts of financing large infrastructure – sounding the alarm over the accountability gap that has blighted the Principles for over two decades.(1)
BankTrack's role
The intervention follows a complaint raised by BankTrack in April 2023, setting out how the Equator Principles has failed to meet its obligations under the UNGPs to set up a grievance mechanism to consider complaints about non-compliance by bank signatories with their own commitments under these Principles.(2) This failure leaves people and communities whose rights are affected by infrastructure projects financed by ‘Equator banks’ without effective channels to hold banks accountable.
An effective grievance mechanism is “vital”
In a ‘communication’ to the new CEO of Equator Principles Limited, the apex body of the Principles, sent on 28th June 2024 and published on 27th August 2024, the UN experts said they “express our concern about the refusal by the Equator Principles governing body to establish a central effective grievance mechanism to consider complaints about noncompliance by EPFIs with their own obligations under the Equator Principles.”(3)
They also noted that this refusal can be an obstacle for affected communities seeking redress, as well as the potential for “serious and irreversible human rights impacts” from Equator financed projects. As a result, the UN experts said, “it is vital that the Equator Principles are effective at ensuring human rights risks are approached in compliance with the UN Guiding Principles, including by having in place an effective grievance mechanism.”
BankTrack’s complaint was raised through the Special Procedures of the UN Human Rights Council, and was considered by the UN Working Group on the issue of human rights and transnational corporations and other business enterprises, and by the UN Special Rapporteur on the right to development.
Equator Principles insist “obligations are met”
Max Griffin, CEO of the Equator Principles Limited, provided a response to the UN Working Group on 30th July 2024, also published for the first time on 27th August. However, this response did not commit to address the concerns set out. Rather, it noted procedures for filing complaints directly to mechanisms established by project developers, in which neither the banks nor the Equator Principles governing bodies are involved. The UN communication makes clear that such processes are no substitute for a central mechanism, “through which affected parties or their legitimate representatives can raise concerns when they believe the commitments in question have not been met.”
The response from Mr. Griffin also noted that a review of the Equator Principles has been announced, which “may well include some of the items raised in letter”.(4) However, it did not include any detail on the process to develop a grievance mechanism as part of this review. Instead, the response stresses that “any updates require a vote of all” member financial institutions. This position fails to recognise that the UN communication is referring to an obligation arising from the UN Guiding Principles, rather than a matter which is at the discretion of the banks.
The letter from Equator Principles Limited also noted that “any questions or concerns regarding the EPs are best addressed to the Steering Committee”. As such, BankTrack subsequently requested a response from the Steering Committee to the letter, received this week. This second response reiterates the same points, claiming that “we consider our obligations are met.”
Ryan Brightwell, Human Rights Campaign Lead at BankTrack, commented: “It is deeply disappointing that the Equator Principles initiative continues to resist the establishment of a grievance mechanism, even when the reminder on its obligation to do so comes from the very top. The UN has set out very clearly here that the Equator Principles are failing to comply with their responsibilities under the Guiding Principles. It’s outrageous that the Equator Principles Steering Committee think they know better than the Chair of the UN body tasked with promoting implementation of these responsibilities.
“Following the crystal clear opinion of UN experts, The Equator Principles now need to take action and, as part of the already announced overall revision of the Principles, establish an effective grievance mechanism that meets UN standards on accountability.”
BankTrack has advocated for the development of a central grievance mechanism for the Equator Principles, ever since their inception in 2003. In 2023, on the 20th anniversary of the Equator Principles, BankTrack launched its own complaints mechanism for the initiative at www.equator-complaints.org. This channel is open to complaints from people and communities affected by Equator-financed projects, and their representatives. BankTrack will send complaints raised to the Equator Principles and the banks involved, and also seek to offer further support to complainants.
For more information, see the following links:
- The initial complaint made by BankTrack is available here.
- The UN communication, written on 28th June 2024 and published on 27th August 2024, is available here.
- The response from Equator Principles Ltd to the UN communication is available here.
- The subsequent response from the Equator Principles Steering Committee to BankTrack is available here.
Notes to editors
1. The Equator Principles (EPs) are a risk management framework, created and adopted by financial institutions, for determining, assessing and managing environmental and social risks in financing projects. Currently, 130 Equator Principles Financial Institutions (EPFIs) in 38 countries worldwide have officially adopted the EPs. They were formally launched in Washington, DC on June 4th, 2003. See www.equator-principles.com.
2. The UN Guiding Principles on Business and Human Rights are the authoritative global standard on business and human rights, unanimously endorsed by the UN Human Rights Council in 2011. They provide the clearest expression yet of the international community’s expectations of the human rights responsibilities of business. While not legally binding, the responsibilities they set out apply to all businesses, regardless of size.
3. UN communications from the special procedures of the UN Human Rights Council are available here. Note that communications and responses are confidential for a period of 60 days before being made publicly available in the UN’s communications database.
4. This review was announced following the 2023 annual meeting of the Equator Principles; see the initiative’s news release here.