UNEP FI 2008 Overview
Change will not come if we wait for some other person or some other time. We are the ones we’ve been waiting for. We are the change that we seek. Barack Obama 2008 UNEP FI events & meetings at a glance UNEP FI in 2008
January ■■Implementation workshops for PRI Foreword Signatories in South Africa, Cape Town and Johannesburg, South Africa March ■■Symphony of the Earth: Giving the Earth a Voice, Geneva, Switzerland April A roller coaster ride ■■ATF Online Training Course on Environmental and Social Risk brings new opportunity Analysis May 2008 was a roller coaster of a ride for the financial community, but it also marked ■■Integrating Biodiversity into Investment Decisions (CBD COP 9), Bonn, an unprecedented opportunity for UNEP FI to get its message across. Consequently Germany we have worked throughout the year to ensure that the embedding of sustainable ■■West African Outreach Event, Lagos, finance, responsible investment and green business principles takes priority in the Nigeria ■■Implementation & recruitment events global response to the financial crisis and to advocate for corporate responsibility in for PRI Signatories in Brazil, Sao Paolo all economic, financial and investment activity. and Rio, Brazil Alongside, and parallel to, the financial crisis has been our concern with climate June ■■Changing Landscapes: Towards a change and the growing realization that less than a year remains before a new Sustainable Economy in Asia, Seoul, agreement must be reached to replace the Kyoto Protocol. UNEP FI must become Korea increasingly bold in its advocacy and more proactive in its activities to drive home the ■■Launch of the CEO Briefing on Human Rights and Finance at the Sustainable climate change message. In this respect our input to December’s UNFCCC meeting in Finance Summit, Brussels, Belgium Poznan, Poland has been a good start. July ■■ATF Online Training Course on Our entry into the post-credit crunch era, when it comes, also marks a chance for Environmental and Social Risk the finance and investment community to truly integrate environmental, social and Analysis governance issues into corporate business policies and business practices. Some of August UNEP FI’s 2008 activities – I would single out our contributions to the June Special ■■Becoming Bankable: Experiences and Challenges in Market-Based Finance Session of the UN General Assembly – will, I hope, provide invaluable input to this in the Water Sector, Stockholm, process. Sweden. The partnership was quick off the starting block in 2008. In February we were invited September ■■6th International Responsible to participate in a meeting co-convened by the OECD and the World Economic Forum. Investment Conference, Melbourne, A few weeks earlier our voice had been heard at the Global Environment Ministerial Australia Forum in the Principality of Monaco. At this meeting UNEP FI convened a roundtable ■■Bringing the Universal Owner Rationale to Life: All you Need is and our Chair, Rob Tacon, from Standard Chartered Bank, joined a panel that Water, London, UK. presented to government ministers. October ■■Valuing Natural Capital: Overcoming Many quality reports were produced in 2008 and it is hard to single one out. However Barriers to Market Valuation of it is particularly pleasing that Bloom or Bust which examines the relationship Biodiversity & Ecosystem Services, between financial services and biodiversity and ecosystem services, came immediately Barcelona, Spain ■■Launch of the Revised Online Human ahead of the May UN Convention on Biological Diversity COP meeting in Bonn Rights Guidance Tool and, along with our half-day event at that gathering, helped reinforce the call for ■■UN Global Compact Human Rights responsible, sustainable development of new markets based on natural value. Working Group (HRWG) Meeting, Bonn, Germany Our work this year has not gone without recognition. UNEP FI received an award at ■■Addressing ESG Inefficiencies of the the Triple Bottom Line Investing (TBLI) conference in Amsterdam and the magazine Capital Markets, Vienna Investment & Pensions Europe (IPE) recognized the partnership for its “Outstanding November ■■The Role of Finance & Insurance in Contribution to the Development of Environmental, Social and Governance (ESG) Climate Change, Tokyo, Japan Investing”. ■■Towards a Sustainable Society: The Roles expected of Corporations and The uncertainty that looms over the financial world will doubtless carry though into Investors, Tokyo, Japan 2009. Market volatility will certainly continue – even the most expert commentators ■■2008 SRI Seminar: CSR Disclosure cannot predict what’s coming next. However, whatever may come, however severe the and Effect on Corporate Valuation, Tokyo, Japan downturn may be, UNEP FI will enter the year in a strong position, with a growing ■■Bringing the Universal Owner base of influential and committed Signatories, ready to continue its drive to make sure Rationale to Life: All you Need is that financial flows into effective development do not suffer. Water, Melbourne, Australia ■■Addressing ESG Inefficiencies of the Capital Markets, Johannesburg ■■The Policy Context for Responsible Investment workshop, Geneva, Switzerland December ■■Making Forests Competitive: Practical Paul Clements-Hunt Solutions for Permanence event, Head of Unit Poznan, Poland UNEP Finance Initiative And in Facts & Figures 2008 2009…
Two burning questions seem set to Funding dominate sustainable finance in the coming year -– how can we, as UNEP FI 2007 INCOME US$ ’000 UNEP FI Signatories, accelerate the Core Income mainstreaming of environmental, Signatory contributions 1,665 social and governance issues into UNEP funds 150 the process of rebuilding trust and Total Core Income 1,815 reputations that all banks and financial institutions must now undertake; and, Sponsorship & Miscellaneous Funds 140 how can our expert opinion be best Total Income 1,955 used to ensure that the negotiators, now looking for a post-Kyoto climate change agreement, overcome national Signatories to the UNEP FI Statements and sectorial differences and secure the UNEP FI welcomed 13 new members in 2008, with a total membership of 177 Signatories at the best possible deal for the planet and end of the year. its people, particularly those living in persistent poverty? Neither question is easy to answer and, while public concern over the Geographical Breakdown 1% credit crunch and the threat of global Europe 49% 3% 6% warming has certainly brought these Asia Pacific 28% questions to the fore, much hard North America 13% 13% work needs to be undertaken in the Latin America 6% 49% coming year to keep them a focus of Africa 3% public debate, a topic for boardroom Middle East 1% discussion and, above all, high on the 28% international agenda. As UNEP FI Signatories we must never forget our commitment to sustainability and development and our duty, not only to our shareholders Sectoral Breakdown and investors, but to the millions upon Banking 59% millions of poor people and future generations whose survival, let alone Insurance 18% 23% happiness, depends on our efforts in Others (Asset Managers, this coming year. Pension Funds, etc.) 23% 59% Rob Tacon 18% UNEP FI Chair
2008 research & publications at a glance ■■Narrowing the gap: A survey of the CEObriefing CEO Briefings HUMAN RIGHTS ■■CEO Briefing on Human Rights barriers and drivers to commercial Sustainability here is growing agreement that the private “Tsector should do its part to help ensure respect $PNNJUUJOHBOE&OHBHJOHManagement and for human rights around the world. No one denies that microfinance in Africa the activities of business help provide the enabling 'JSTUJOB4FSJFTPG5PPMLJUTPO3FTQPOTJCMF1SPQFSUZ*OWFTUJOH environment needed for the enjoyment of human rights. R e p o r t i n g At the same time, it is clear that company operations can have serious negative impacts on the protection of human rights when not carried out in a responsible manner. More and more business leaders from the global north Benefits for Financial Institutions in ■■Biodiversity and Ecosystem and south are showing that they are ready to take on N a r r o w i n g their appropriate role in promoting and protecting human D e v e l o p i n g and Emerging E c o n o m i e s rights and a growing number of leading companies t h e g a p Reports are committed to using a human rights framework to help shape more principled and profitable corporate A survey of the barriers and drivers Services: Bloom or Bust? performance. Progress is being made in the areas of human rights impact assessments and in the production to commercial microfinance in Africa A Document of the UNEP Finance Initiative of guidance and tools for business to use in managing Sustainability Management and Reporting Project human rights risks. The UNEP Finance Initiative is at the leading edge of these developments among business December 2006 ■■GRI Financial Services Sector sectors.” ■■Making Forests Competitive: Mary Robinson, Supplement Exploring insurance solutions for ■■Responsible Property Investing: permanence (Concept Paper) What the leaders are doing (English, Japanese) Newsletters ■■Building Responsible Property Portfolios (English, Japanese) ■■Australasian UNEP Finance Initiative Newsletter, Issue 15 ■■Innovative financing for sustainable small and medium ■■Australasian UNEP Finance Initiative enterprises in Africa Newsletter, Issue 14 Work Streams
UNEP FI’s strategic work programme is focused on current and emerging issues which are relevant to its members. UNEP FI’s sector-based and theme-specific work streams provide a forum to Signatory institutions to work collaboratively on finding innovative approaches to managing these issues.
Asset Management Working from asset managers and investment Group (AMWG) consultants and their duties to their Climate Change Working Group Fiduciary principals with respect to ESG issues; and to (CCWG) Responsibility explore specific failures, misalignments and Addressing carbon Finance Initiative and ESG conflicts of interest within the system. Innovative financing for sustainability market failures Achievements UNEP FI Climate Change A document of the UNEP FI Working Group members Climate Change Working Group Issues Capital Markets■ Active participationand at UNFCCC Conferencesthe of the PartiesValuationOlivia Lister Colin Le Duc In 2008, the CCWG decided (COPs). The CCWG is moving towards greater cooperation with Environmental Risk Manager SAM Sustainable Asset the UNFCCC Secretariat, ensuring the financial sector perspective Abbey Management is integrated into the broader intergovernmental negotiations. Tel +44 1908 348 419 Tel +41 1 397 1010 A follow-up of ESG Factors [email protected] [email protected] to address the market Fiduciary ■ Production of a series of business-relevant opinion papers providing insight into the risks and opportunities of climate Iris Gold Mark Way change from a financial institution perspective. Vice President Group Sustainability report is being The AMWG, in partnership with theCitigroup Management failures observed in cap and responsibility ■ Sustainable Energy Finance Initiative (SEFI) launched in October Tel +1 212 816 6677 Swiss Re 2003. A partnership between UNEP FI, UNEP Energy and the [email protected] Tel +41 43 285 3640 Basel Agency for Sustainable Energy (BASE), aiming to provide [email protected] Working Legal and practical aspects prepared World Business Councilfinanciers with the tools, support forand networks toSustainable drive financial Armin Sandhövel of integrating environmental, innovation that improves environmental performance of the Head Corporate Sustainability Paul Clements-Hunt trade schemes; the flexible energy mix. Dresdner Bank AG Head, UNEP Finance Initiative towards social and governance issues Tel +49 69/2635 5193 Tel +41 22 917 8116 into institutional investment to A Legal Development, conducted■ Release of 2002 Landmark Study, “Climate pioneering Change and the armin.sandhoevel [email protected] Financial Services Industry”, highlighting the need for long-term, a better mechanisms of the Kyoto @dresdner-bank.com market-based frameworks to foster financial sector participation. Advisors P Stating: ‘The Kyoto Protocol is an important step but does not go Dirk P. Kohler Andrew Dlugolecki climate… nearly far enough’. Managing Director Andlug Consulting A report by the Framework global workshops on ESG factors and Asset Management Working Group GSDP Global Sustainable Tel +44 1738 626 351 Protocol and, in mitigation of the United Nations Environment Programme ■ Collaboration with the Carbon Disclosure Project (CDP) bringing Development Project S.A.R.L. [email protected] Finance Initiative about a transformation in the quality of data available to investors Tel +33 4 96 11 68 21 E on the corporate implications of climate change. A follow up to the AMWG’s 2005 company valuation in 2008. The [email protected] Julian Salt ‘Freshfields Report’ for the Climate Solutions Consultancy trends generally; and the For more information on the UNEP FI Climate Change Working Group: Thomas Loster Tel +44 1227 379 880 N July 2009 http://unepfi.net/cc Head [email protected] of the workshops, which spanned Weather/ClimateAfrica, Risks Research Integration of “Swiss Re is fully aware of the great challenges arising from global Munich Re Kirsty Hamilton
U global shortage of energy climate change. We not only seek to be at the forefront of creating Tel +49 89/3891 5287 Policy Consultant and working on developing a marketplace for sustainable assets [email protected] Tel +44 7986 355 561 “Worldwide economic losses due to natural through our Greenhouse Gas Risk Solutions team, but clearly [email protected] disasters appear to be doubling every 10 ESG Issues Into Asia, Europe andbelieve North that we should operate and America,manage our own operations were to efficiency and forestry according to the highest sustainability criteria.” The designations employed and the presentations of the material in this publication do not imply the expression of any opinion whatsoever on the part of the United Nations Environment Programme (UNEP), the United Nations Environment years and, on current trends, annual loses will Programme Finance Initiative (UNEP FI), or any of its member organisations, concerning the legal status of any country, John Coomber Chief Executive Officer territory, city or area of its authorities, or concerning the delimitation of its frontiers or boundaries. Moreover, the views reach almost $150 billion in the next decade.” Swiss Re expressed do not necessarily represent the decisions or the stated policy of UNEP, UNEP FI or any of the contributing Institutional Investment – produced in develop a common view on ESG value,member organisations of UNEP FI. The citing toof trade names or commercial processes does not constitute endorsement. UNEP FI 2002 Study related mitigation activities. 2005 for the AMWG by the international understand current gaps in communicating The CCWG is now asking: law firm, Freshfields Bruckhaus Deringer, ESG information, to improve the integration what are the reasons for these shortages and how and arguably the single most effective of ESG factors into company valuation, can the finance sector contribute to the solutions? document for promoting the integration of and to accelerate progress on sustainable Capacity Building in the Finance Sector environmental, social and governance (ESG) development, A practical field guide The E-Learning Course of the CCWG was re- issues into institutional investment document for investors and companies will launched in 2008, to provide capacity building This sequel report – Fiduciary be published in 2009. to 100 finance practitioners from around the Responsibility: Theoretical, Practical and globe on the implications of both physical and Co-Chairs: Calvert Group Ltd (USA), HSBC Global Legal Aspects of Integrating ESG Issues Into Asset Management regulatory climate change for their institutions. Institutional Investment – will be launched Members: Acuity Investment Management Given the positive feedback, the course will be in 2009 and is expected to be another (Canada), AIG Investments (US), Aviva Investors repeated in 2009. powerful agent of systemic change that will (UK). Banco Real (Santander Asset Management) (Brazil), BNP Paribas Asset Management (France), further mainstream the integration of ESG Calvert Group (US), ClearBridge Advisors (US), Chairs: Allianz, Caisse des Dépôts issues into the investment process. Eurizon Capital Members: AXA, Aviva, Bank of America, Calvert Group, (Intesa Sanpaolo Group) (Italy), Groupama Asset Carbon Re, Development Bank of Japan, Development Bank Consequently, the AMWG initiated a multi- Management (France), Henderson Global Investors of Southern Africa, Fortis, HSBC, Japan Bank for International year, multi-faceted study encompassing the (UK), Hermes Pensions Management (UK), HSBC Cooperation, Munich Re, Pax World Management Corp., state of the art on fiduciary duty and ESG Global Asset Management (France), Mitsubishi UFJ Standard Chartered, Sustainable Asset Management (SAM), Trust & Banking (Japan), Nikko Asset Management Swiss Re, UBS, American International Group issues; how asset owners can integrate of (Japan), Pax World Management (US), RCM (UK) Associate Members: Price Waterhouse Coopers ESG issues into their mandates; best practices Contact: [email protected] Contact: [email protected]
Property Working Group (PWG) Human Rights (HRWS) In 2008 the Property Working Group continued to The HRWS, which aims to address human demonstrate how real estate portfolios can be managed in a rights as they relate to the activities of way that achieves environmental and social goals, while finance institutions, including those linked increasing, or at least not diluting, financial return. By to environmental sustainability, launched a reporting on case studies from real estate funds applying a Briefing aimed at the CEO level in 2008. The responsible investment approach the group has identified ten Briefing explains what human rights are; why key strategies for managing real estate portfolios responsibly. they are relevant to financial institutions; and the basic systems and processes that financial $PNNJUUJOHBOE&OHBHJOH The PWG has also collaborated with the PRI on gathering best 'JSTUJOB4FSJFTPG5PPMLJUTPO3FTQPOTJCMF1SPQFSUZ*OWFTUJOH practices showing how the Principles can be applied to real institutions should have in place to effectively estate portfolios. This will help foster the implementation of manage human rights issues. the now widely-spread PRI into other asset classes. The online Human Right Guidance Tool for In order to help more investors manage their real estate the Financial Sector has been reviewed and funds responsibly, the PWG will provide more concrete, refined and is now available for use by UNEP practical guidance on getting started on RPI through a series FI’s global partnership. It includes background of toolkits. information and a focus on specific issues relating to different industry sectors, cultures The group has worked in collaboration with UNEP SBCI on a comparison of green building and geographies. This “one stop shop” tool standards worldwide. This is designed to help investors understand how the various schemes’ is designed to assist frontline business and rankings compare. client officers in the lending and investment community. Co-Chairs: Caisse des Dépôts, PRUPIM Members: AXA Real Estate Investment Managers France, Caisse des Dépôts, Calvert Group, F&C Property Asset Chairs: Barclays Group plc, Insight Investment Management plc, Hermes Investment Management Limited, Infrastructure Leasing & Financial Services, Innovest Members: ABN AMRO, Barclays Group plc, Citigroup, Strategic Value Advisors Inc., Mitsubishi UFJ Trust and Banking Corporation, Morley Fund Management, PRUPIM, The F&C Asset Management, Fortis B.V., Fundacion Social, Sumitomo Trust & Banking Co., Ltd., WestLB AG Insight Investment, Intesa SanPaolo, Nedbank, Standard Advisor: University of Arizona Chartered, UBS AG, Westpac Observers: CalPERS, Cherokee Investment Partners, Investa Property Group, Land Securities PLC, Lend Lease Partners: INCAE - CLACDS Business School Contact: [email protected] Contact: [email protected] Water & Finance (WFWS) Insurance Working Group (IWG) In 2008, the WFWS continued to push forward its double agenda of changing finance and financing Global Survey on ESG Factors and Insurance change. Changing finance activities included 2007 Report The IWG established the first-ever UNEP FI Academic Working promoting the idea that water should be further Insuring for Sustainability Group (AWG) in 2008, to provide input on and support for its work considered in financial due diligence and stock Why and how the leaders are doing it on sustainable insurance. Membership includes leading academic The inaugural report of the Insurance Working Group of the picking exercises. WFWS’s strategy has been to move United Nations Environment Programme Finance Initiative institutions from the United States and Europe. The IWG and AWG have from awareness-raising to support for action. The also jointly designed a major new global survey on the understanding Global Water & Finance Survey 2008 has, in this and integration of ESG factors in insurance underwriting and product respect, shown what steps need to be taken next and development, which will be conducted in 2009. Key findings from which sectors and regions should be considered as the survey will be captured in a report mapping the global state of a priority. sustainable insurance. When it comes to financing change, the Microinsurance and Innovative Risk Financing Solutions Half full or half empty? WFWS has worked to The IWG has begun work on a multi-year study linking microinsurance, natural catastrophe A set of indicative guidelines for water-related risks and an overview of emerging opportunities for financial institutions show that the insurance mechanisms and insurance-linked securities. The study, which will be launched in 2009, mobilization of private aims to establish the business case for innovative risk financing solutions in developing countries; finance for water articulate how these solutions improve community resiliency to natural disasters; help the poor out solutions can make of poverty traps, and to understand the collective impact of solutions on sustainable development, sense, both from a particularly with respect to goals such as the MDGs and the Hyogo Framework for Action. financial as well as a Forestry, Insurance and the Carbon Markets sustainability
A study of the Water & Finance Work Stream of the As part of a forestry and insurance initiative to combat climate change, the IWG conducted United Nations Environment Programme Finance Initiative perspective. a sample survey of its member institutions, who are among the leading global insurers and For those large reinsurers, on the state of play in the forestry and insurance marketplace. The key findings from institutional investors who need to change finance and finance change this survey will form an integral component of a concept paper on forestry, insurance and the simultaneously, the WFWS has helped bring carbon markets – Making Forests Competitive: Exploring Insurance Solutions for Permanence the water issue to the table by asking how, as – which will be jointly produced by the IWG and the Climate Change Working Group. Universal Owners, these bodies can deal with water Promoting Sustainability in the Insurance Industry and Public Policy externalities in their economy-wide portfolios. The IWG has called on the insurance industry and policymakers to advance sustainable insurance Chairs: Banco Funds (Swedbank), Australia and New Zealand thinking and practice through strategic articles in major international publications including the Banking Group (ANZ) Members: ASN Bank, BNDES, BMCE, Calvert, Ekobanken, commemorative book of the 2008 World Insurance Forum; the 2008 Commonwealth Finance IL&FS, Insight Investment, Intesa San Paolo, mecu, Nedbank, Ministers Reference Report; and the 2008 Climate Action Report launched at the UN Climate Rabobank, SAM, VicSuper, Westpac Associate members: Environment Protection Authority Victoria, Change Conference in Poznan, Poland. Goldman Sachs, IPA Economics, Organisation for Economic Cooperation and Development (OECD), Stockholm International Co-Chairs: AXA, Insurance Australia Group Water Institute (SIWI), UNEP Regional Seas, UN Water Members: Achmea, Allianz SE, American International Group, AXA, Folksam, HSBC Insurance Brokers, Insurance Observers: UNEP Regional Seas, Stockholm International Australia Group, Interamerican Hellenic Life Insurance, Lloyd’s, MAPFRE, Munich Reinsurance Company, Norwich Union Water Institute, Food and Agricultural Organisation (UN Water), (Aviva), RSA, Storebrand, Swiss Reinsurance Company, The Co-operators Group, Tokio Marine & Nichido Fire Insurance, ICF Water, Connexis, Environmental Protection Authority Victoria XL Group Contact: [email protected] Contact: [email protected]
Principles for Responsible Biodiversity & Ecosystem Services (BESW) Investment (PRI) A review of key academic and broker research on ESG factors of key academic and broker research Demystifying Responsible Investment Performance A review A joint report by Throughout 2008, and promote the wider use of good practices The Asset Management Working Group of the Capacity building of local The United Nations Environment Programme Finance Initiative United Nations Environment Programme Finance Initiative (UNEP FI) is a strategic public-private partnership between UNEP and and Mercer the global financial services sector. UNEP FI works with over 175 financial institutions that are signatories to the UNEP FI Statements, and a range of partner organisations, to develop and promote linkages between the environment, sustainability and financial the Biodiversity and standards. performance. Through a comprehensive work programme, regional emerging markets (EM) activities, training and research, UNEP FI carries out its mission to identify, promote and realise the adoption of best environmental and Demystifying sustainability practice at all levels of financial institution operations.
The UNEP FI Asset Management Working Group is a global Responsible platform of asset managers that collaborate to understand the ways and Ecosystem environmental, social and governance factors can affect investment Investment investors by creating networks value, and the evolving techniques for their integration into 2009 will also see the launch of the investment anaylsis and decision-making. Performance Biodiversity and Ecosystem Services Mercer is a leading global provider of investment consulting services, A review of key between local and Services Work and offers customized guidance at every stage of the investment decision, risk management and investment monitoring process. academic and broker research Environmental and Social Responsibility We have been dedicated to meeting the needs of clients for more on ESG factors than 30 years, and we work with the fiduciaries of pension funds, foundations, endowments and other investors in some 35 countries. We assist with every aspect of institutional investing (and retail Stream (BESW) portfolios in some geographies), from strategy, structure and international investors in implementation to ongoing portfolio management. We create Observatory (ESRO) project, which was value through our commitment to thought leadership; world-class, independent research; and top-notch consultants with local expertise.
In 2004, Mercer’s investment consulting business formed a specialist global Responsible Investment (RI) business unit dedicated to continued its developing intellectual capital in this field. In this unit we work with emerging markets and investment fiduciaries around the world to implement RI programs developed throughout 2008. and offer a range of services – from policy development to manager selection and monitoring. developing countries was the B l o o m crucial work of This interactive database will present real-life focus of PRI activities in 2008. promoting the case studies to allow financial institutions to The project supported and or Bust? increasing global showcase their experiences in environmental coordinated collaborative investor engagement A Document of the UNEP FI Biodiversity & Ecosystem Services Work Stream (BESW) importance of and social risk analysis and sustainable project around sustainability and governance disclosure March 2008 biodiversity issues. financing. by local companies operating in the target It notably published and emerging markets. Chair: Merrill Lynch The EM project also engaged in several outreach launched its Members: Bayern LB (Germany), Citigroup (USA), activities to promote responsible investment in Bloom or Bust report which explored the risks Development Bank of South Africa, F&C Asset and opportunities faced by financial institutions Management (UK), Insight Investment (UK), KfW Banking India, China, Russia, Middle East and South Group (Germany), Nedbank (South Africa), Nikko Asset East Asia. PRI in EM was also involved in in relation to biodiversity and ecosystem services Management (Japan), Rabobank (Netherlands), Sustainable implementing the PRI – UNEP FI Universal (BES). Asset Management (Switzerland), Sustainable Development Capital LLP (UK), VicSuper (Australia) Owner Project, which examines how externalities Work on the Natural Value Initiative (NVI), Associate Members: Association Française pour can be addressed through shareholder also continued and is set to be finalized and Entreprises Privées (France), Business for Social engagement. launched in June 2009. This benchmarking tool Responsibility (USA), Convention on Biological Diversity, Fauna and Flora International (UK), Forest Trends (UK), PRI in EM is funded by SIDA, implemented by will focus on finance-sector investments in the Industrial Development Corporation (South Africa), KMPG UNEP, and managed by UNEP FI. The goal of the food, tobacco and beverage industries. (UK), Rio Tinto (Australia), The Katoomba Group (Uganda), project is to promote responsible investment in United Nations Development Programme (Panama office), The NVI will use case studies to present the UNEP - World Conservation Monitoring Centre (UK) emerging markets and developing countries. business case for action in BES management, Contact: [email protected] Activities in the Regions
UNEP FI’s Regional Task Forces serve to ensure the Initiative Africa addresses the specific regional needs of its Signatories and United by a common that the outputs of its thematic work streams is relevant objective to define Innovative to the realities of different regions. fi n a n c i n g innovative approaches for sustainable to sustainability for small and medium enterprises the African financial Asia Pacific APTF, in collaboration with the Centre for in Africa sector, ATF members Development Finance (CDF) India, is working The Asia Pacific Task Force collaborate to advance AIM ABOUT UNEP FI on developing a gap analysis tool targeted at To support and expand financial practice that UNEP FI is a unique global partnership Finance Initiative (APTF) operates through promotes sustainable development in the Asia between the United Nations and the pri- Innovative financing for sustainability sustainable finance, Pacific. vate financial sector. UNEP FI works close- ly with financial institutions around the the Indian finance sector. The tool uses material world to identify and develop linkages four sub-groups – the ACTIVITIES between sustainability and financial per- responsible formance. initially developed in Spanish by LATF. � Capacity building Australasia Group, the Japan – Capacity building activities such as intra- Through its regional task forces, UNEP FI regional and country-specific workshops and carries out its mission to identify, promote, investment, and dissemination of major UNEP FI materials in and realise best sustainability at all levels local languages with local perspective of financial institutions’ operations across add-ons. the globe. Group, the Korea Group, and Australasia Group increased provision of � Exchange of ideas and best practices The complete list of UNEP FI Signatories and updates on latest activities is available Host: EPA Victoria – Creation of a critical mass of Asia Pacific an overall Outreach Group. online at: Signatories that are able to exchange ideas and best practice facilitated by an extensive Chair: mecu financial services for UNEP FI network of sustainable finance sensi- Contact: tive institutions in the region. [email protected] www.unepfi.org Recognizing that there is an Members: Australia & New Zealand Banking Group (ANZ), the poor. � Country-level and sector-specific research Asia – State-of-the-art surveys Pacific Export Finance and Insurance Corporation, Insurance – Needs assessments opportunity to add value to – Case studies Task Force Australia Group, Medibank, National Australia Bank, QBE In 2008, the ATF launched two reports. The first Join us: both financial institutions Yuki Yasui Insurance Group, Savings & Loans Credit Union, VicSuper, Susan Steinhagen Finance Initiative – Narrowing the Gap: A Survey of the Barriers [email protected] Innovative financing for sustainability and their suppliers in the 15 Chemin des Anémones Westpac Banking Corporation CH-1219 Châtelaine, Geneva, Switzerland Tel. (41) 22 917 8178 Fax (41) 22 796 9240 and Drivers to Commercial Microfinance in email [email protected] website www.unepfi.org Promoting Sustainability in the supply chain management Asia Pacific Financial Sector Korea Group process, the APTF Australasia Host: Eco-Frontier Africa – provides guidance on overcoming current Group has investigated ways of working together Chair: Woori Bank barriers and increasing commercial microfinance Members: investment in Africa. A survey was conducted to increase efficiencies in the evaluation of Daegu Bank, Hana Bank, Hyundai Marine and Fire Insurance, suppliers and their sustainability performance. Kookmin Bank, Samsung Investment Trust Management, to understand why very little commercial The report will be further developed and APTF Shinhan Bank, The Export-Import Bank of Korea microfinance activities have been invested in will implement its key recommendations in Japan Group Africa and how to overcome this. collaboration with NATF. Chair: The Bank of Tokyo-Mitsubishi UFJ Members: Aioi Insurance, Chuo Mitsui Trust & Banking, The second report – Innovative Financing for In June, the United Nations’ three leading Daiwa Securities Group, Development Bank of Japan Sustainable Small and Medium Enterprises in Good Bankers, Japan Bank For International Cooperation sustainability driven organizations – UNEP (JBIC), Mitsubishi UFJ Trust and Banking Corporation, Mitsui Africa – is a compilation of case studies resulting FI, UN Global Compact and the Principles Sumitomo Insurance, Mizuho Financial Group, Nikko Asset from a 2007 international workshop of experts in for Responsible Investment (PRI) – hosted a Management, Nikko Citi Holdings, Nipponkoa Insurance, small and medium enterprise (SME) financing conference “Changing Landscapes: Towards a Sompo Japan Insurance, Sumitomo Mitsui Financial Group, The Shiga Bank, The Sumitomo Trust & Banking, Tokio Marine and sustainability from public, private and Sustainable Economy in Asia”. In association & Nichido Fire Insurance philanthropic investment communities, as well with Eco-Frontier, Korea, UNEP FI also co- Outreach Group as Africa-based organizations working on SME hosted the “UNEP FI Conference on Sustainable Chair: Japan Bank of International Cooperation financing. Finance”. Co-Chair: Association of Development Financing Institutions in Asia and the Pacific (ADFIAP), The Japan Group organized a series of events ABN AMRO India, Association for Sustainable & Chairs: Banking Association of South Africa, Nedbank, on CSR Disclosure and its Effect on Corporate Responsible Investment in Asia (ASrIA), Development Bank of the Philippines, Eco-Frontier, EPA Victoria, Netherlands Oceanic Banking International Valuation, the Role of Finance & Insurance Development Finance Corporation (FMO), Japan Bank for Members: Bank of Industry, BMCE Bank, Citi, Development in Climate Change and on Mainstreaming International Cooperation (JBIC), Infrastructure Leasing & Bank of South Africa, Fidelity Bank, Nedbank, Oceanic Bank, Sustainable Finance. The APTF Japan Group has Financial Services Standard Chartered Bank, Societe General, The Netherlands (IL&FS), Ministry of Environment (Indonesia), mecu, National Finance Corporation, (FMO), UBA Foundation, Zenith Bank also been developing the Japanese adaptation Australia Bank, Savings and Loans Credit Union, VicSuper, Partners: African Institute for Corporate Citizenship (AICC), of the UNEP FI E-learning course on Climate Westpac Banking Corporation, YES Bank Limited Africa Investor Change. Contact: [email protected] Contact: [email protected]
Latin America online database of cases and illustrations of North America The Latin American Task real-life environmental and social risk and opportunities. By centralizing information In 2008, the North American Task Force (NATF) fing Force (LATF) strengthened produced a report on Understanding Corporate Obrie CE Biodiversity on how risks can be dealt with and how and Ecosystem its overall training The Business Case Services real opportunities can be seized, it will Sustainability Disclosure Requests, which I programme in 2008, and aimed to frame the business case for companies B ol o m act a desktop tool for financial analysts o Br u s? t ystem continued to make ; Recommendations – financial institutions or otherwise – who tionship managers Clarify and make consistent lending and investment requirements investment and lending practices; Clearly define and articulate the financial risks and opportunities associated with biodiversity and ecos worldwide. services (BES). orts. Review portfolio and business lines for current and future exposure to BES risks; headway in the Consider needs for policy/guidance to inform the institution’s Consider need for specific guidance and decision-making tools and training needs for rela and transactors; are asked to respond to sustainability-related Consider benefits of partnerships with civil society; Consider how best to maintain leverage in transactions; Report on biodiversity initiatives and impacts in sustainability and related rep
Recognise urgency of action to address BES losses and make requirements explicit in planning and economic Finally, the LATF continued to support development policies, and financial regulations; development of Work with financial sector to ensure that policies reflect practice; Support research on economic and financial impact of BES loss/damage and development of enabling surveys. The report identifies some of the main mechanisms that create markets for ecosystem services; Integrate BES assessment explicitly in public policy development. implementation tools for the development of a Sustainability Gap organizations which seek information on practitioners. Analysis Tool within the Mexican Banking companies’ sustainability policies and practices, Five online courses were delivered as a part of Association’s Sustainability Committee. This as well as why and how they go about collecting the Environmental and Social Risk Analysis will be a web-base tool which, when finalized such data. in 2009, will enable users to obtain basic, but (ESRA) E-Learning Programme while an NATF also hosted a workshop in Boston on the introductory training workshop on the same across-the-board, information on sustainable finance implementation, an outline of their report’s key findings in October 2008. Hosted by topic was delivered in Barbados, the first time the Task Force’s CoChair State Street Corporation, in the Caribbean. current profile, and guidance on improving their profile. the event was attended by over 50 participants LATF also developed and piloted a brand from UNEP FI member institutions and other new E-Learning Programme on Corporate Chairs: ABN Amro Banco Real, Brazil, stakeholders in North America. A diverse group Ecoefficiency. HSBC Mexico of experts provided further insights into the latest Members: ABN Amro Mexico, BBVA Peru & Spain, 2008 also saw significant progress in Banco Itau (Brazil), BANOBRAS (Mexico), BNDES (Brazil), trends and challenges around sustainability the development of the Environmental CAF (Venezuela), FIRA (Mexico), Fundación Social disclosure in the North American financial sector. (Colombia), HSBC Argentina & El Salvador, Rabobank and Social Risk Observatory (ESRO), Brazil. Chairs: Royal Bank of Canada & State Street Corporation including an expansion of its scope through Associate Members: CLACDS/INCAE Business Members: Bank of America, Bank of Montreal, Canadian collaboration with UNEP FI’s Water & School & Ecobanking Project (Costa Rica), FBDS (Brazil), Imperial Bank of Commerce, Citigroup, HSBC USA, JPMorgan FGV/Ces (Brazil), FFLA (Ecuador), Instituto Nacional de Finance and Biodiversity work streams. Chase & Co., Merrill Lynch, Royal Bank of Canada, Scotia Ecología / INE (Mexico). Bank, TD Bank Financial Group, The Bank of Tokyo-Mitsubishi ESRO, which will be launched in 2009, is an Contact: [email protected] UFJ, Ltd., UBS, Union Credit Bank, Vancity, WestLB. Contact: [email protected] Activities in the Regions Training
Central & Eastern Europe The CEETF focused on building an effective Training & Tools for awareness-raising strategy in Turkey in 2008 in collaboration with EBRD, UNDP and the Regional Implementation Environmental Center for CEE. The CEETF continued to support the E-learning propgramme. To foster implementation of sustainable finance in countries where the CEETF had previously conducted awareness-raising in previous years, Environmental & Social Risk Analysis three very successful ESRA courses have been held. A case study to further adapt the training (ESRA) E-Learning Programme materials for regions has been developed in collaboration with UNEP FI’s Romanian signatory The ESRA E-Learning Programme aims to educate employees of local, regional and Banca Commerciala Romana. international financial institutions in the identification, analysis and management of Chairs: Mark King, EBRD environmental and social risks, as generated through their lending and investment activities, Members: Alpha Bank, Intesa Sanpaolo, Bank Austria particularly in an emerging market and/or developing country context. Creditanstalt (United Group), Croatian Bank for Reconstruction and Development (HBOR), EFG Eurobank Ergasias S.A., The courses delivered under the programme provide in-depth, personalized training over Emporiki Bank, Hypovereinsbank (Unicredit Group), a three-week period, with experienced tutors engaging with participants on a daily basis. Interamerican Hellenic Life Insurance Company SA, Piraeus Participants take part in a range of activities, ranging from simulating implementation of Bank, Raiffeisen Zentralbank Austria AG, Contact: [email protected] environmental and social policies and guidelines and analysing case studies, to carrying out exercises based on their own clients’ environmental and social impacts. Western Europe The ESRA E-Learning Programme, developed in Spanish in 2006 and adapted into English a The Western European Forum (WEF) is an year later, is a joint product of UNEP FI, Capacity Building International (InWent), and the informal network of regional Signatories, who INCAE Business School, delivered with the support of the Ecobanking Project. The Spanish aim to promote active participation in UNEP version was developed with the support of Bank of America, the English with that of FMO. By FI. The WEF works closely with Regional Task the end of 2008 some 20 courses had been delivered to analysts throughout the world. Forces, as most Western European Signatories Contact: [email protected] have subsidiaries in other regions. In 2008 UNEP FI has continued its successful collaboration with the German VfU (Association for Environmental Management in Banks, E-Learning Course on Climate Change Risks Savings Banks and Insurance). As usual the UNEP FI/VfU Roundtable conference was held and Opportunities for the Finance Sector in November 2008, this year focusing on the In June 2007, UNEP FI launched an online training course called “Climate Change: Risks practical implementation of climate change and Opportunities for the Finance Sector”. The course was the result of collaboration policies into financial services. A workshop on between UNEP FI, United Nations Institute for Training and Research (UNITAR), UNEP FI the Principles for Responsible Investment also Australasian Credit Risk Advisory Committee and Bank of America, who sought to develop a was held in June 2008 by UNEP FI, VfU and the toolkit that would enhance the knowledge of financial institutions staff on climate change German SRI Forum in Frankfurt, Germany. and carbon finance, specifically the Kyoto Protocol’s flexible mechanisms, and provide Contact: [email protected] support for the development of effective internal policies. The primary focus of this e-Learning programme is to provide senior and mid-level UNEP FI CEO Briefings executives in financial institutions with a flexible, cost-effective and accessible training
November 2006 service with a view to continued skills building and networking. Finance Initiative Finance Initiative Finance Initiatives Finance Initiative Finance Initiative Finance Initiative Finance Initiative ng fing Financefi g n Initiative Contact: [email protected] riefing b r iefi efib i nr g Ob r ie efib i nr g efin g i b r e b i r efib i nr g efib i nr g efib i nr g efib i nr g efib i nrE g O CE CEO CEO Adaptation and Ob C CEO CEO FinanceCEO for CEO erspective E m is s io n s Vulnerability E Biodiversity C CEO CEO CEO Carbon Solutions Sustainability and Ecosystem Green FinancialThe Future of Climate Policy T r a d in g t o C lim a t e The Business Case The Financial Sector P Banking in Africa FinancingServiceswater: Renewable Energy ProductsThe Materiality & Services: The Clean Development Mechanism: C h a n g e : Current Stateof Play andSocial, Future Opportunities The Financial Sector Perspective Climate Change The Role of the I r si k s a n d Working Group Finance Sector opportunities Environmental S t a t e m e n t and Corporate Identifying financial institutions’ exposure to CCWG Statement E B ol o m Waterisan issue for institutions water-related risks and opportunities for mitigating risk Governance fin a n c ai l “It is becoming increasingly clear that sustainable 1SPQFSUZ*OWFTUJOHIssues toRecommendations Climate risk to ystem development will be one of the R e p o r t o Br u s? t 3FTQPOTJCMF fty years major drivers of industrial Equity Pricing global economy ; d i e s “Water as an asset change over the next fi nies and that there is a growingThe Case Recommendationsis being mainstreamed What the H o u s e C for Green11 Sector Stu R e q u e s t demand from both compa Financial Products within financial services.ent and lendingor practices; relationship managers and institutional investors by Brokerage Clarify and make consistent lending and investment requirements i n a n c e UNEP FI-GRI Working Group a el a d e r s Clearly define and articulate the financialBetter risks management and opportunities associated with biodiversity and ecos to understand its financialimpacts.” Analysts at the services (BES). water risks and a r e d o ni g of the UNEP F r k i n g of for new Initiative Asset Review portfolio and business lines for current and future exposure to BES risks; Consider needs for policy/guidancesharper to inform the feel institution’s investm “Man really is the only animalManagement that builds hisWo Consider need for specific guidance and decision-making tools and training needs f G r o u p and transactors; water markets is terrarium around him as he goes and real Consider benefits of partnerships with civil society; ment of enabling estate is really the business of building that Consider how best to maintain leverageemerging” in transactions; terrarium. So we have a tremendous ethical Report on biodiversity initiatives and impacts in sustainability and related reports. content, a tremendous social purpose.”
Recognise urgency of action to address BES losses and make requirements explicit in planning and economic development policies, and financial regulations; Work with financial sector to ensure that policies reflect practice; Support research on economic and financial impact of BES loss/damage and develop mechanisms that create markets for ecosystem services; on Performance Indicators Integrate BES assessment explicitly in public policy development. This series of UNEP FI Publications provides concise, easy-to-use updates and research The joint working group led by the Global Reporting Initiative (GRI) and UNEP FI findings on themes examined by our Work completed its work on the GRI Financial Services Sector Supplement in May 2008, and after Streams and Regional Task Forces. Available at www.unepfi.org/publications approval by the GRI Board, the final supplement was launched in October 2008. The supplement, which is based on and coherent with the widely-used G3 Guidelines, focuses UNEP FI Newsletter on measuring the sustainability performance of the financial sector’s products and services. This makes it unique compared to other sustainability reporting guidance and the supplement is expected to become the standard for reporting on financial institutions environmental and social performance. Detailed reporting guidance for all indicators has been developed in order to facilitate their use and to enhance the comparability of reported information. The supplement has been developed, tested and revised over a five-year period starting in 2003. Its development involved more than 28 financial institutions, a wide range of stakeholders in two working groups and several public consultation periods.
Members: BCSC Fundacion Social, BMO Financial Group, CECA (Confederacion Espanola de Cajas de Ahorros), “0.618…” is UNEP FI’s newsletter. It covers Co-operative Financial Services, National Australian Bank, State Street Corporation, Tapiola Insurance Group, current issues relating to innovative financing Vancity & Citizens Bank of Canada, VicSuper Pty Ltd, Westpac Banking Corporation, Zurick Kantonalbank for sustainability, and includes contributions Stakeholder Group: Christian Brothers Investment Services (CBIS) Inc, CoreRatings – DNV, Earthwatch, EIRIS, from leaders and experts in the field. FGVSP (Centro de Estudos em Sustentabilidade), Friends of the Earth, Germanwatch, Suedwind Institute, Union Available at www.unepfi.org/publications Network Contact: [email protected] UNEP FI Secretariat UNEP Finance Initiative Head of Unit Paul Clements-Hunt The United Nations Environment Programme Finance Initiative (UNEP FI) is a unique Administration public-private partnership between the United Nations and the global financial sector. Ken Maguire Mission Emira Ben-Ayed “To identify, promote, and realise the adoption of best environmental and sustainability Julie Talisco practice at all levels of financial institution operations.” Signatory Relations Kiki Lawal Background Communications The idea of gathering financial institutions around environmental issues in the form of a Careen Abb Finance Initiative within UNEP materialized in 1991, when a small group of commercial Susan Steinhagen banks joined forces with UNEP to catalyse the banking industry’s awareness of the environmental agenda. In May 1992, the UNEP Financial Institutions Initiative was UNEP FI Roundtable established, followed by the UNEP Insurance Industry Initiative in 1995. Both Initiatives Henry Thomas were merged into the current, joint, Finance Initiative in 2003, following the first joint IT Support Annual General Meeting of the Initiatives that was held in October 2003. Richard Hansen Today, UNEP FI is the largest global voluntary partnership of its kind, with over 170 signatories to the UNEP FI Statements. UNEP FI members include banks, insurers, asset Investment managers, pension funds, and other categories of financial institutions, all working together Butch Bacani to understand the links between sustainable development considerations and financial Remco Fischer services, in order to maximize mutual positive impacts. Property Regina Kessler Structure UNEP FI is governed by an elected Steering Committee comprised of representatives from Insurance its membership and from UNEP. UNEP FI’s annual work programme is coordinated by a Butch Bacani Geneva-based Secretariat and is determined in consultation with the Steering Committee. Climate Change Yuki Yasui Remco Fischer UNEP FI Steering Committee 2008 Water & Finance Chair Heidi Mayhew Standard Chartered: Robert Tacon Remco Fischer Regional Task Force Biodiversity & Ecosystem Services UNEP Representative Representatives Susan Steinhagen Division of Technology, Industry, and Banking Association of South Africa: Human Rights Economics (DTIE): Sylvie Lemmet Cas Coovadia (ATF) Cristina Gueco Mecu Limited : Sustainability Reporting Signatory Representatives Damien Malsh (APTF) Regina Kessler Lloyds TSB Group plc: Paul Turner European Bank for Reconstruction and Sustainability Training ANZ: Sean Silvey Development: E&S Risk Analysis: PT Bank Negara Indonesia: Bien Subiantoro Mark King (CEETF) Careen Abb, Cristina Gueco Emporiki Bank: Regina Kessler Working Group Stella Kovlaka (CEETF) Susan Steinhagen Representatives Banco Real Santander Group: Climate Change: SRI: Gianluca Manca (AMWG) Chris Wells (LATF) Yuki Yasui & Remco Fischer AXA: Catherine Boiteux-Pelletier (IWG) Royal Bank of Canada: African Task Force Caisse des Depots: Blaise Desbordes (PWG) Sandra Odendahl (NATF) Cristina Gueco Prudential Plc (London): Paul McNamara State Street Corporation: Asia Pacific Task Force (PWG) Richard Pearl (NATF) Yuki Yasui Susan Steinhagen Allianz Dresdner: Armin Sandhoevel (CCWG) Central & Eastern European Task Force Regina Kessler Caisse des Depots: Claire Boasson (CCWG) Dona Stenzel Latin American Task Force Careen Abb North American Task Force Careen Abb United Nations Environment Programme Western European Forum UNEP Finance Initiative Kiki Lawal International Environment House 15, Chemin des Anémones Regina Kessler CH-1219 Châtelaine, Genève Interns Switzerland Tel: (41) 22 917 8178 Fax: (41) 22 796 9240 Monica Hoz de Vila email: [email protected] website: www.unepfi.org