pp4sd financial services sector 1 introducing sustainable development in the financial services...
TRANSCRIPT
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PP4SD Financial Services Sector 1
Introducing Sustainable Development in the Financial Services Sector
A PP4SD Programme
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PP4SD Financial Services Sector 2
PP4SD
• Working with professionals to integrate sustainable development learning into continuing professional development
• Partnership approach
• Managed by: the Environment Agency, the Institution of Environmental Sciences, The Natural Step and RSPB
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PP4SD Financial Services Sector 3
Introduction
Course Objectives– help participants understand how social and
environmental considerations will have an increasing impact on the activities of the Financial Services Sector
– give participants an understanding of this new business reality and the associated risks and opportunities
– provide delegates with tools to respond positively to this developing agenda
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PP4SD Financial Services Sector 4
Introduction
Course design– to be challenging– to be interactive– to stimulate discussion and debate– to be fun
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PP4SD Financial Services Sector 5
Space Ship
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PP4SD Financial Services Sector 6
Space Ship
Congratulations!
• You are going away for a long weekend in space with everything provided – think ‘the Paris Ritz’ in space.
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PP4SD Financial Services Sector 7
Space Ship
Your Task– in teams, decide on the 10 items that you will
take on this special weekend.• Food, water and spacesuits provided
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PP4SD Financial Services Sector 8
Space Ship
Disaster Strikes!
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PP4SD Financial Services Sector 9
Systems thinking
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PP4SD Financial Services Sector 10
Systems thinking
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PP4SD Financial Services Sector 11
Systems thinking
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PP4SD Financial Services Sector 12
The Business Funnel
Legislation
Shareholder Pressure
Increasing costs
Employee expectation
CustomerRequirements
Risk Management
Protecting brand value
NGO pressure
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PP4SD Financial Services Sector 13
The reality
World population actual and projections
Sources: UN median projection 2025 Politics of the Real World
0
2
4
6
8
10
1974 1995 2025 2050
World pop'nbillions
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PP4SD Financial Services Sector 14
The reality
• Global consumption of water is doubling every 20 years– 10% used by people– 65% used by industrial agriculture– 25% used by industry
• 1 billion people already suffer from a shortage of fresh water
• If everyone adopted a western lifestyle we would need five earths to support us!
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PP4SD Financial Services Sector 15
The reality
• The 20% of people living in the rich countries consume 80% of the world resources
• The top 1% of households have more wealth than the entire bottom 95%
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PP4SD Financial Services Sector 16
How has business responded?
Corporate Social Responsibility (CSR)– “winning businesses of the 21st century should
not only add value to themselves but to the rest of society as well”
David Irwin - Encouraging Responsible Business
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PP4SD Financial Services Sector 17
How has business responded?
• 94% of company executives believe that the development of a CSR strategy can deliver real business benefits. (Source: Ernst & Young survey)
• 1 out of 3 international sales executives think social responsibility initiatives will increase sales. (Source: Hill & Knowlton’s Corporate Reputation Watch)
• 86% of investors believe that social and environmental risk management improves a company’s market value in the long term. (Source: CSR Europe/Taylor Nelson Sofres)
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PP4SD Financial Services Sector 18
How has business responded?
• 73% of top European business leaders believe that sustained social/environmental engagement can significantly improve profitability (Source: Business in the Community's FastForward Research)
• 27% of consumers across 25 countries have punished companies for being socially irresponsible and another 21% have considered doing so (Source: Environics International's Annual CSR Monitor)
• 80% of employees would not work for an organisation with values they didn't believe in (Source: Work Foundation, 'Corporate Nirvana‘)
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PP4SD Financial Services Sector 19
How has business responded?
• 60% of banks are now publishing declarations on environment (or included as part of financial reports)
• 59% of banks have an environmental policy
• Steady growth of financial products geared to the environment
Sustainable Finance and Banking – Marcel Jeucken
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PP4SD Financial Services Sector 20
How has business responded?
• UNEP Agreement on the financial sector
• Financial Organisations Review and Guidance on the Environment (FORGE)
• ICC Business Charter for SD
• The London Principles
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PP4SD Financial Services Sector 21
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PP4SD Financial Services Sector 22
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PP4SD Financial Services Sector 23
Case Study Review
• Review good practice examples of how some organisations have responded to this agenda.
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PP4SD Financial Services Sector 24
Case Study Review
• Process– Read case study and prepare feedback
containing the following• Background on the company 10%
• What they say they have done 30%
• What can we learn from the case 60%
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PP4SD Financial Services Sector 25
Case Study Review
1. What are the common positive elements?
2. What are the areas for improvement?
3. What is appropriate for your own business context?
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PP4SD Financial Services Sector 26
The 5 Capitals
• Background– Natural Capitalism (Amory Lovins, Paul
Hawken, L.Hunter Lovins) – http://www.natcap.org/
• Project Sigma– The 5 Capitals – http://www.projectsigma.com/
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PP4SD Financial Services Sector 27
The 5 Capitals
• Natural Capital • Human Capital• Social Capital• Manufactured Capital• Financial Capital
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PP4SD Financial Services Sector 28
Natural Capital
• What does it mean?– the natural resources (energy and matter) and
processes needed by businesses to produce products and deliver services
• Why is it important?– everything will draw on or impact on the
natural environment in some way
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PP4SD Financial Services Sector 29
Human Capital
• What does it mean?– the health, knowledge, skills, intellectual
outputs, motivation and capacity for relationships
• Why is it important?– businesses depend on individuals to be
motivated and skilled to be successful
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PP4SD Financial Services Sector 30
Social Capital
• What does it mean?– value added to a business from human
relationships, partnerships and co-operation
• Why is it important?– economies rely on social interactions to achieve
their objectives
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PP4SD Financial Services Sector 31
Manufactured Capital
• What does it mean?– material goods and infrastructure which
contribute to production or service provision (tools, technology)
• Why is it important?– important that how things are developed /
delivered is sustainable - using innovation
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PP4SD Financial Services Sector 32
Financial Capital
• What does it mean?– productive value of the other capitals which
exist in a form of currency which can be owned or traded
• Why is it important?– this is the traditional and primary measure of
business performance.
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PP4SD Financial Services Sector 33
Mapping Exercise
• Draw a systems diagram for a product, mapping inputs and outputs and highlighting impacts on the capitals.
• See the following examples:
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PP4SD Financial Services Sector 34
Mapping Exercise
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PP4SD Financial Services Sector 35
Mapping Exercise
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PP4SD Financial Services Sector 36
Situational Exercise
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PP4SD Financial Services Sector 37
Sphere of influence
Sphere of concern
Sphere of influence
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PP4SD Financial Services Sector 38
Action Planning
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PP4SD Financial Services Sector 39
Action Planning
Reflect on this course and identify 3 things that you can do/start doing to contribute to this agenda
• write them down
• talk them through with a colleague to ensure they are achievable but stretching
• Have the colleague question and feedback what they have heard
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PP4SD Financial Services Sector 40
Action Planning
• Transfer the “smarter” targets to a postcard • Complete your name and address on the postcard• Give the postcard to the course facilitator
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PP4SD Financial Services Sector 41
Evaluation and Close
Many thanks