In 2003, 10 European and US banks agreed to adopt a set of guidelines named the Equator Principles which were aimed at infusing environmentally and socially sound practices into their project finance businesses.

Crafted with the help of the International Finance Corporation – the private-sector lending arm of the World Bank – the principles were based on the IFC’s social and environmental guidelines for sustainable development. They included guidelines on a host of environmental issues and other areas such as labour standards.