- 1. CSR and Sustainabilitybusiness case and what investors
request May 2011, Ukraine Name: Wei Pengwww.unepfi.org Title: UNEP
FI Program Officer, Central and Eastern Europe
2. Agenda CSR and sustainability issues in a larger context Why
investors and financiers should care What information investors are
looking for Associated challenges and opportunities 3. 4.
Environmental, social and governance issues And the list is still
expanding 5. 6. >USD 432 billion or 15% of financial stimulus
packages tagged Green/Low Carbon 7. Sustainability &
Responsibility a new investment criteria> 800
institutionalinvestors > 25 trillion USD 8. Sustainability a new
investment criteria Ensuring that investors are getting timely,
material information on climate-related impacts, including
regulatory and physical impacts, is absolutely essential. Investors
have a fundamental right to know which companies are well
positioned for the future and which are not.Chief Executive,
CalPERS, the largest public pension fund of U.S. 9.
- Dow Jones Sustainability Index - 1999
- Istanbul Stock Exchange Sustainability Index
- Singapore Stock Exchange - guidelines for sustainability
reporting
- Hang Seng corporate sustainability index
- Johannesberg Stock Exchange sustainability index
- Environmental Sustainability Index Seoul
- Shanghai Stock Exchange Compulsory disclosure on corporate
social responsibility
- Equator Principles 85% of global project finance volume
committed to sustainability-friendly financing
- UNEP FI 200 financial institutions globally committed to
incorporate sustainability in investment decision-making
The Global Campaign in the Capital Market and Financial
Community 10. The Global Campaign in the Corporate World
- Global Reporting Initiative(GRI) standardizing sustainability
reporting
- UN Global Compact : over 8000 corporate member from 130
countries (human rights, labour, environment, anti-corruption)
- Carbon Disclosure Project(CDP) corporate disclosure on carbon
emissions, water and climate change strategies
- World Business Council for Sustainable Development(WBCSD)
business network for sustainable development
11. How environmental issues transform intomaterial financial
risk - The CSN Case 12. Biggest and oldest steel mill in Brazil
Operating in city of Volta Redonda, near Rio, since 1946 between
1946 1999, CSN generated a few impacts: * Respiratory problems
among local community * Employees contaminated by toxic gases *
Polluted river * Waste dumped in inappropriate locations Then in
1999, US$100 million clean-up required by govt. How environmental
issues transform into materialfinancial risk - The CSN Case 13. The
Hidden Risks/Liabilities 14. The Hidden Risks/Liabilities 15. The
Hidden Risks/Liabilities 16. Reputational risk corporate brand at
stake Banktrack Network Private finance: a public interestHow Does
This Affect Financial Institutions? 17. 18. New Regulators vs Old
Regulators Government
19. Sustainability Beats Business As Usual 20.
- Key Performance Indicators on sustainability performance for
specific sectors, to be identified and agreed between investors and
corporations across sector
- Quantitative data on KPIs that allows comparison between
corporations, throughout time, and in context of new market
development
- Where possible, standardised qualitative data on financially
material ESG factors to allow track/evaluation of performance
- Channel to communicate not only with investor relations, but
also directly with sustainability functions
- Disclosure not only on past performance, but also on
forward-looking vision and strategy which will define future
value
- From UNEP FI Publication: translating ESG into sustainable
business value keyinsights for companies and investors, download
at: www.unepfi.org/fileadmin/documents/translatingESG.pdf
What Exact Info Are Investors Looking For? 21. Sample ESG
considerations- by sustainability theme
- Energy use and efficiency; carbon emissions; water use; use of
ecosystem services; innovation in environment-friendly
products
- Employees; poverty and community impact; supply
chainmanagement
- Codes of conduct; accountability; transparency and
disclosure;implementation quality and consistency
22. Sample ESG Considerations by Sector 23. UNEP FIis a unique
public-private partnership betweenUNEP and over 200financial
institutionsworldwide.UNEP Finance Initiative To realise best
environmental and sustainability practice at all levels of
financial institution operations. UNEP FI Mission 24. UNEP FI
Membership Overview UNEP FI has over 200 members globally, from
banking,insurance and investment industries Categorization by
Region Categorization by Industry 25. 26. UNEP FI Scope of Work
27.
- Research reports and publications
- On cutting-edge sustainability issues, helping FIs identify
material risks & opportunities
- Sustainable Finance Training
- Online courses and in-person workshops on Environmental and
Social Risk Analysis, Climate Change, Corporate Eco-efficiency,
Energy Efficiency Financing
- Environmental Risk Briefings, Human Rights Toolkit,
Environmental and Social Responsibility Observatory
- Webinars and Experience-Sharing
- On hot topics such as carbon finance and energy efficiency; the
Clean Development Mechanism and renewable energy financing.
- Global and regional events
- Biannual Global Roundtable, regional events, expert workshops
and roadshows
UNEP FI Activities 28. Selection of UNEP FI Publications 29.
- It's not a choice between our environment and our economy;
- it's a choice between prosperity and decline.
30.
- UNEP FI Central and Eastern Europe Contact: