In the past few years, several locally owned banks in Latin America - more than in any other developing region - have signed up to a set of international environmental and social impact standards when financing large-scale infrastructure projects such as dams, power plants and pipelines, in a clear sign they are waking up to the risks of socially irresponsible investing.
The Equator Principles (EPs) provide banks with strict but voluntary guidelines and procedures to evaluate the social and environmental impact of large infrastructure projects. The principles are based on the sustainability standards of the World Bank's private sector arm, the International Finance Corporation (IFC), and cover rules on issues ranging from environmental assessments and natural habitats to indigenous people and child and forced labour.
