UKEF's implementation of the Equator Principles (1 January 2025 to 31 December 2025)
Published 7 July 2026
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1. Background
UK Export Finance (UKEF) adopted the Equator Principles (EP) on 31 March 2016, joining what now comprises 125 other banks and Export Credit Agencies (EP Financial Institutions - EPFIs) in applying this global guidance for environmental, social, and human rights (ESHR) risk management when financing projects.
During the reporting period 1 January 2025 to 31 December 2025, UKEF continued to provide management support on the Equator Principles Steering Committee. UKEF also attended the Annual Meeting in Istanbul in October 2025 where we shared experiences and presented to other Equator Principles financial institutions on the new E&S Agents Good Practice Note.
UKEF has also contributed extensively to OECD E&S Practitioner meetings, actively seeking to align these with the EPs and acting as a bridge between the two communities.
UKEF continues to follow the OECD Recommendation on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (OECD Common Approaches), currently dated 25th March 2024, which applies alongside the EPs as outlined in the Policy and Practice on Environmental, Social and Human Rights due diligence and monitoring (ESHR Policy).
This reporting of implementation of the EPs forms part of UKEF’s obligations under Equator Principle 10 (Reporting and Transparency) and as articulated in Annex B of the EPs.
2. Projects supported within the scope of the Equator Principles
Between 1 January 2025 and 31 December 2025, UKEF has reached financial close on 8 transactions that fell within the scope of the Equator Principles. These are reported in Table 1 (Project Related Corporate Loans) and Table 2 (Project Finance).
Table 1:
| Financial Product | Transaction Name | Category | Sector | Region | EP Country Designation | Has an independent review taken place?* |
|---|---|---|---|---|---|---|
| Project Related Corporate Loan | Ciner Glass Bottling Factory Project | B | Manufacturing & Industrial Equipment | Europe, Middle East & Africa | Designated (Belgium) | Yes |
| Project Related Corporate Loan | SRT Marine Systems Project | B | Defence | Asia Pacific | Non-Designated (Indonesia) | No |
| Project Related Corporate Loan | Smart Solar Project | A | Renewable Energy | Europe, Middle East & Africa | Non-Designated (Türkiye) | Yes |
| Project Related Corporate Loan | Koloma Ministerial City Project | A | Infrastructure | Europe, Middle East & Africa | Non-Designated (Guinea) | Yes |
| Project Related Corporate Loan | Cabinda Airport | A | Infrastructure | Europe, Middle East & Africa | Non-Designated (Angola) | Yes |
| Project Related Corporate Loan | Six Flags Qiddiya Theme Park** | A | Other | Europe, Middle East & Africa | Non-Designated (Saudi Arabia) | Yes |
**Deal effective in 2024.
Table 2:
| Financial Product | Transaction Name | Category | Sector | Region | EP Country Designation | Has an independent review taken place?* |
|---|---|---|---|---|---|---|
| Project Finance | Uige Electrification Project | A | Power | Europe, Middle East & Africa | Non-Designated (Angola) | Yes |
| Project Finance | Fengmiao Offshore Wind Project | A | Renewable Energy | Asia Pacific | Non-Designated (Taiwan) | Yes |
| Project Finance | Lotus Offshore Wind Project | A | Renewable Energy | Asia Pacific | Non-Designated (Taiwan) | Yes |
UKEF has not reached financial close on any Project Finance Advisory Services or commenced support for Bridge Loans that fall under the Equator Principles during the reporting period.
3. Implementation of the Equator Principles
UKEF’s ESHR Policy sets out how UKEF implements the EPs alongside the OECD Common Approaches during pre-issue stages (scoping, screening, and due diligence review), which satisfies EPs 1 - 8, and for post-issue monitoring, to satisfy EP 9. UKEF published a Note of Human Rights and Social Risks and Impacts in support of its ESHR Policy in March 2017 and subsequently updated it upon the implementation of EP4 in July 2020. UKEF further updated its ESHR Policy in November 2020 to reflect updates regarding consideration of climate change and post-issue public reporting of cases classified as Category B. The UKEF Sustainability Strategy 2024-29, which was published in 2024, sets out UKEF’s plan to position UK exporters and suppliers at the heart of the global low-carbon transition and leverage its financing in developing markets to create positive impact on communities overseas and in the UK. Further information can also be found in UKEF’s Annual Report and Accounts.
UKEF’s Environmental & Social Risk Management Division (E&S Team) is responsible for carrying out the implementation of UKEF’s ESHR Policy. The E&S Team’s staff are professionally qualified and directly undertake and/or manage the necessary ESHR due diligence and liaise with project sponsors and/or exporters and UKEF decision-makers.
Over the reporting period the E&S Team had 16 full-time equivalent staff and reported directly to the Head of Legal, Environmental & Social and Compliance and the Chief Executive. The E&S Team continues to provide internal training to UKEF’s Business Group (including Underwriters), and wider staff, to raise awareness of the requirements of the OECD Common Approaches, the EPs, and general ESHR and climate change risk management.
4. Independent Review of EP Implementation
In accordance with the requirements of the Signatory Rules, UKEF commissioned an Independent Review of EP implementation. UKEF’s Internal Audit and Assurance Division (IAAD) reviewed the internal procedures to verify compliance with the Equator Principles, and to assess UKEF’s adherence to the environmental and social risk management framework, outlined by the Equator Principles. A representative sample of 10 transactions consisting of seven Category A and three Category B, were reviewed between the period 1st September 2024 and 31st March 2025. The sample of EP projects consisted of transactions which were completed between the period 1st September 2023 and 31st August 2024. The transactions were reviewed against the key criteria set out in the relevant EP guidance on Independent Reviews.
No gaps in the EP implementation process were identified. A further Independent Review of EP Implementation will be due within three years.
*Review by Independent Environmental and Social Consultant (IESC) in accordance with Principle 7