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Hello, I am looking for someone to write an essay on The Equator Principles and Their Effects on Project Lending. It needs to be at least 4500 words.Equator Principles are voluntary guidelines develop
Hello, I am looking for someone to write an essay on The Equator Principles and Their Effects on Project Lending. It needs to be at least 4500 words.
Equator Principles are voluntary guidelines developed to guide the transactions of project financing banks and their clients1. The principles discourage project-financing banks from lending money to companies that destroy the environment or harm people. The principles suggest that the project financing banks should finance companies that conform to the ten principles of equator principles. The initiatives help to reduce the destruction of the natural environment and improve the rights of the communities. The banks initiated the Equator Principles because they wanted to manage the criticisms levelled against them by the non-governmental organizations, students and indigenous communities. A non-governmental organization such as Greenpeace and Rain Forest Action Network blamed banks for promoting environmental degradation and violation of human rights by financing companies that destroy the environment and livelihood of indigenous people2. However, they believed that banks have the influence to prevent the negative effects caused by companies benefiting from their finances. Therefore, they exert pressure on the banks to ensure that the projects funded must meet higher social and environmental standards. The pressures were in the form of protests from non-governmental organizations and students, questions by political parties and published articles on the websites. The pressure focused on the role of banks in promoting environmental degradation and abuse of human rights. The banks have financed construction of roads, dams, power plant, pipelines, meat processing factories and logging companies. The above projects cause disruptions to the local communities and the ecosystems if not appropriately regulated. For example, logging companies cut trees and convert them to timber and other construction materials. Most forests in several African countries may be extinct.
