Principle 1 - Review and Categorisation

Principle 1 of the Equator Principles requires financial institutions to conduct an initial environmental and social risk assessment for each proposed project and to categorise it as A (high risk), B (medium risk) or C (low risk) based on the potential impact. This categorisation determines the level of due-diligence, mitigation measures and reporting required, aligning the lender's review process with recognized international standards.