Which initiative provides a framework for assessing environmental and social risk in the financial services industry?

The Equator Principles provide a widely recognized framework for managing environmental and social risk in project finance and investments within the financial services sector. They are specifically designed for banks and financial institutions to evaluate the environmental and social risks associated with the projects they finance. This initiative emphasizes the need for thorough due diligence to ensure that environmental and social considerations are integrated into financial decision-making processes.

By committing to the Equator Principles, financial institutions adopt a set of standards that require them to assess potential impacts on communities and the environment associated with projects, ensuring that development is sustainable and that clients adhere to internationally recognized labor, human rights, and environmental standards.

While the other options also focus on sustainability and social responsibility, they do not specifically offer a framework tailored for the financial services industry like the Equator Principles do. The Envision Standard is focused more on the built environment and sustainability practices within that context. The UN Principles for Responsible Investment (UNPRI) concentrate on integrating ESG factors into investment decisions but do not serve as a direct assessment framework like the Equator Principles. Lastly, the EDGE Guidelines relate more to the green building certification and energy efficiency rather than being specifically designed for assessing environmental and social risk in finance.