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1. Reduce their GHG emissions to, at the minimum, the percentage
required under the Oslo Principles or a country’s permissible
quantum (Principle 2);
2. Ensure that all entities within its direct or indirect control comply
with its obligations to reduce GHG emissions (Principle 6);
3. Undertake GHG reducing measures that incur no relevant
additional costs like switching from fossil fuel-based energy
sources to renewable energy sources, eliminating excessive energy
consumption, using more efficient transport (Principle 7.1) and
“take all measures to improve the energy efficiency of its products
and services as can be taken without incurring relevant additional
costs” (Principle 7.2);
4. Take measures to reduce GHG emissions if the additional costs
will, “beyond reasonable doubt, be offset by future financial savings
or gains” (Principle 8);
5. Avoid activities that “will or are likely to cause excessive GHG
emissions, including, for example, operating coal-fired power
plants, without taking countervailing measures.” (Principle 9.1)
6. Avoid creating products, including packaging, that cause excessive
GHG emissions, or render services that cause excessive GHG
emissions, without taking into consideration countervailing
measures.” (Principle 10.1)
4. Responsibility of Financial Institutions
In 2003, private financial institutions adopted the Equator Principles, a framework
for determining, assessing, and managing environmental and social risks in project
finance, frequently used for major infrastructure and industrial projects.421 The
Equator Principles require financial institutions to refuse loans to borrowers who
will not or cannot follow their respective social and environmental policies and
processes.422 Although the principles are not legally binding, they have become an
industry standard and are frequently referred to as good practice.423
421
422
423
The Equator Principles (2020), available at https://equator-principles.com/ (last accessed Aug. 21,
2021) [hereinafter The Equator Principles].
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