Eco‐Initiatives and Commitment to the Equator Principles

Dados Bibliográficos

ID19235397
AutoresPost Raj Pokharel (0000-0002-7768-9294, Otago Business School University of Otago New Zealand, autor correspondente), Munirah Sarhan Alqahtani (0009-0003-9495-1965, Imam Mohammad Ibn Saud Islamic University (IMSIU) Riyadh Saudi Arabia)
Ano2026
Data de publicação2026-04-16
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoSustainable Development (JOURNAL)
Identificadores do periódicoISSN: 0968-0802 • E-ISSN: 1099-1719
EditoraWiley (PUBLISHER • GB)
DOI10.1002/sd.71083
OpenAlexW7154600417
IdiomaEN
Citações recebidas1
Referências citadas77

The Equator Principles (EP) score is a performance code for financial institutions (FIs) based on their commitment to managing environmental issues in project financing. This study examines the impact of environmental initiatives on the adoption of the EP by 204 US financial firms (including banks, insurance companies, investment banks, asset managers, private equity firms, and other FIs) from 2005 to 2024. The study findings show that FIs engaging in various eco‐initiatives, such as biodiversity impact reduction, ecological restoration, supply chain management, and environmental partnerships, exhibit higher EP, suggesting that proactive environmental engagement facilitates a formal commitment to sustainability standards. Using environmental project financing and peer FIs' environmental and ecological initiatives as instrumental variables, the study provides robust evidence that specific initiatives, particularly those focused on reducing biodiversity impact and improving supply chain management practices, have a more substantial influence on environmental project adoption than others. The study further documents that the positive relationship between eco‐initiatives and EP adoption is more pronounced in larger FIs and with higher ESG performance. This study's findings highlight the strategic and risk‐management benefits of environmental initiatives, showing that they serve as an effective mechanism for FIs to align with internationally recognised social and ecological standards

Biodiversity · Corporate social responsibility · Environmental impact assessment · Environmental Sustainability Index · Supply chain · Sustainability · Corporate Social Responsibility Reporting · Environmental Sustainability in Business · Sustainable Finance and Green Bonds