UNEP FI 2004 overview

Innovative financing for sustainabilityFinance Initiative

“Financial Institutions and individualsworldwide are waking up to the factthat responsible investment can protecttheir assets and turn “values into value”.DR. KLAUS TÖPFER, EXECUTIVE DIRECTOR OF UNEP

2004 at a glance

Januaryn Steering Committee meetingn Second UNEP FI - GRI Working Group

meeting, Genevan Australasian UNEP FI Newsletter Issue

7Februaryn Second African Task Force Annual

General Meeting, JohannesburgApriln Interim Steering Committee meetingn Ratings Event on the EU Emissions

Trading Scheme (UNEP FI –Germanwatch), Cologne

n SRI Workshop (UNEP FI - KAISTGraduate School of Management),Seoul

Mayn Third UNEP FI - GRI Working Group

meeting, Zürichn First Central & Eastern Europe Task

Force meeting, Sofian UNEP FI Values to Value (V2V) reportJunen Sustainable Energy Finance Event:

'Creating the Climate for Change'(International Conference forRenewable Energies), Bonn

n CEO Briefing: Renewable Energy(launched at International Conferencefor Renewable Energies, Bonn)

n UNEP FI Materiality report (launched atUN Global Compact Leaders Summit,New York)

n Responsible Investment Event forpension funds and fund managers,Paris

Julyn First Latin American Task Force

meeting, Liman Investing in Stability - Conflict Risk,

Environmental Challenges and theBottom Line (UNEP FI – IISD), revisedand extended version

Augustn Risks of Water Scarcity – Preliminary

Findings (presented at World WaterWeek, Stockholm)

Septembern Steering Committee meetingn Sustainability Banking in Africa Report

(launched at African CorporateCitizenship Convention 2004,Johannesburg)

n UNEP FI Renewable Energies FinanceForum (Green Power Conferences),Budapest

n Second meeting and launch of theUNEP FI Central & Eastern Europe TaskForce, Budapest

n Survey on Finance and Sustainability inCentral & Eastern Europe

Octobern UNEP FI Annual General Meeting, Parisn Fourth UNEP FI - GRI Working Group

Meeting, Utrechtn UNEP FI website relaunchedn Australasian UNEP FI Newsletter Issue

8Novembern Follow-up event to Tokyo Roundtable

(Development Bank of JapanInternational Environment Forum 2004),Tokyo

Decembern Asia Pacific Task Force Executive

Briefing (hosted by ADFIAP), Manila.n CEO Briefing: Finance for Carbon

Solutions - The Clean DevelopmentMechanism (launched at UNFCCCCOP 10)

n publications n events

UNEP FI in 2004Foreword2004 saw the culmination of UNEP FI’s two-year-long constitutional, legaland administrative overhaul following the 2003 merger of the originalbanking and insurance initiatives. The financial model supporting UNEP FIhas also improved, as witnessed by a 258% increase in member fee incomesince 2000.

At the same time, UNEP FI has significantly expanded its regional outreach,with the emergence of the Latin American and Central and EasternEuropean Task Forces and the accelerated preparations for the launch ofan Asia-Pacific Task Force in 2005. A busy overall work programme saw,amongst other key activities: the delivery in June of a landmark reportexploring linkages between equity pricing with environmental, social andcorporate governance issues, the launch of the UNEP Principles forResponsible Investment project as a focus for our work with theinstitutional investment community, the finalization with the GlobalReporting Initiative of a set of environmental indicators for the financialsector, and UNEP FI's continued cutting-edge research on climate issues,with the publication of two new reports on renewable energy and financefor carbon solutions. New activities relating to water scarcity and emergingmarkets were also launched, while the publication of the Values to Value(V2V) practitioners’ manual captured more than three years of UNEP FI’swork in one, easy-to-use reference. V2V will also support plans for thelaunch of a UNEP FI sustainability training programme in 2005.

As we prepare for the October 2005 UNEP FI Global Roundtable in NewYork, this vibrant, action-packed year of growth has more than kept up themomentum of the unique public-private partnership between UNEP andthe financial services sector globally.

Paul Clements-HuntHead of Unit UNEP Finance Initiative

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Environmental and Socialissues are becomingincreasingly prevalent on theglobal stage, and the searchfor initiatives and potentialsolutions that contribute tothe sustainability debate arebecoming ever moreimportant. With financialinstitutions playing anessential part in financing thefuture, UNEP FI continues tohave a critical role to play inthis process.

2004 has been a year ofnumerous accomplishments,which has seen theconsolidation of the merger ofthe banking and insuranceinitiatives, the adoption of anew constitution, and theestablishment of a newstructure for the SteeringCommittee whereby theregions will benefit fromdirect representation as of2005.

In 2005 and beyond, UNEPFI’s priority will be to focus onkey areas of influence andinnovation, in a renewedeffort to add the most value toboth financial institutionsand the sustainabilityagenda. The launch of anumber of new activities,such as the Principles forResponsible Investmentproject, among others, is partof this effort to step up theoutputs of UNEP FI and tothus really help make adifference. It is time forchange.

Martin Hancock

Chair, Steering Committee

UNEP Finance Initiative

Signatories to the UNEP FI Statements in 2004UNEP FI welcomed 16 new members in 2004, with a total membership of 208 signatories by the end of the year.

69%17%

3%

2%8%1%

And in 2005…

Principles for ResponsibleInvestmentIn 2004, a UNEP FI Pension Fund Roundtableheld in Paris identified the need for investorsto share experiences and work together onEnvironment, Social and Governance (ESG)issues. The UNEP FI “Materiality” report andthe Global Compact (GC) “Who CaresWins” report, presented at the GC Leaders’Summit in New York, further showed theimportance of integrating these issues.

As a result, UNEP FI and the GC havedecided to develop a set of “Principles forResponsible Investment” aimed atdefining responsible investment byinstitutional investors. This will be led by theworld’s largest pension funds and advised bya team of ESG experts.

A handbook providing guidance on thePrinciples, as well as tools and strategies forimplementation, will also be prepared.Another handbook for policymakers, onaligning investment regulatory frameworkswith the Principles, is also planned.

Insurance Working GroupFollowing the Annual General Meeting(AGM) of UNEP FI in 2003 there was ageneral consensus that, after the mergerof the Financial Institutions Initiative(FII) and the Insurance Industry Initiative(III), a healthy balance should remainbetween the two sectors. The formationof a “General Insurance Working Group”,to be made up of Insurance and Re-Insurance companies only, has thereforebeen initiated. A work programme andstrategy will be formulated following asurvey of insurance signatories to theInitiative regarding key areas of interestand potential focuses for this new WorkingGroup.

ANNUAL GENERAL MEETING (AGM), 24OCTOBER 2005, NEW YORK.This will be the 3rd AGM since the merging of the Financial Institutions Initiative (FII)and the Insurance Industry Initiative (III).

UNEP FI 2005 GLOBAL ROUNDTABLE, 25-26OCTOBER 2005, NEW YORK.This flagship event will once more bring together bankers, insurers, and assetmanagers from around the globe as well as government representatives, non-governmental organizations, academics and consultants. This year delegates will lookat the theme of environmental risks and opportunities for financial institutions,focusing on carbon issues and responsible investment.

Working groupsUNEP FI’s strategic workprogramme is focused on currentand emergent issues which arerelevant to its members. UNEP FIWorking Groups provide a forumin which institutions workcollaboratively to find innovativeapproaches to managing theseissues.

Asset Management Working Group (AMWG)

Sustainability Management, Reporting and Indicators (SMRI) Work StreamsAim:n To provide financial institutions withefficient tools for sustainabilitymanagement and reporting.

Specific Goals:n Develop a set of globally applicableenvironmental performance indicators toassist the international finance sectorreport on the environmental impacts of itsproducts and services;

n Provide a forum for financial sectorstakeholders to discuss sustainabilitymanagement & reporting, with theultimate goal of providing a body ofguidelines on the subject.

2004 Highlights:UNEP FI – Global ReportingInitiative (GRI) WorkingGroupThe Working Group had three successfulmeetings and a 90 – day public

Aim: n To document and exchangeexperiences about the financial materialityof environmental, social and governanceconsiderations as they relate to theportfolio management of mutual funds,pension funds, insurance company fundsand other institutional funds.

Specific Goals: n Research on the financial materiality ofkey environmental and social criteria forsecurities pricing;

n Engage with pension funds.

2004 Highlights:

Materiality ofenvironmental and socialconsiderationsThe Group's institutional clients areincreasingly interested in exploring

different approaches to assetmanagement that explicitly includeenvironmental, social and governancecriteria, while many large public sectorfunds (including the UN pension fund)are also increasingly being asked to payattention to these considerations.

In 2004 the AMWGinvited leading brokeragehouses to explore anddocument the materialityof environmental andsocial considerations inseven industry sectors.

The resulting overall report was launchedat the Global Compact Leader’s Summiton 24 June, in New York.

Investor Roundtable onimplementing responsibleinvestmentHosted by Groupama Asset Management,roundtable participants included pensionfunds from across Europe, consultantanalysts and members of the AMWG.

Topics covered include: the materiality ofenvironmental, social, and corporategovernance issues; responsibleinvestment and fixedincome portfoliomanagement; best-practice shareholderengagementstrategies, andresponsibleinvestment inemerging markets.

Chairs:Groupama Asset Management, StorebrandInvestments.

Members:ABN AMRO Asset Management (Brazil), AcuityInvestment, Management, BNP Paribas AssetManagement, Calvert Group, Citigroup AssetManagement, Groupama Asset Management,HSBC Asset Management (France),InsightInvestment Management, Morley FundManagement, Nikko Asset Management, OldMutual Asset Management, Sanpaolo IMI AssetManagement, Storebrand Investments.

consultation period in 2004 that resulted inthe development of a set of 13environmental performance indicators forthe international finance sector. Designedto assist the retail, corporate andcommercial banking, asset managementand insurance sectors report on theenvironmental impacts of their productsand services, the indicators have beenformatted into a pilot version of the GRIFinancial Services Sector Supplement(Environment). This Supplement will bepilot-tested in 2005.

Chairs:Financial Sector Co-Chair – Westpac; Non Financial Sector Co-Chair - CoreRatings.

Financial members:Deutsche Bank, Westpac, Standard Chartered,Swiss Reinsurance, Rabobank, Calvert, Bank ofChina, Nedcor, National Australia Bank, InsuranceAustralia Group (IAG).

Non-financial members:Friends of the Earth, US, Earthwatch Europe,Ethical Investment Research Services (EIRIS), CoreRatings, Christian Brothers Investment Services(CBIS), Euronatur, Wilderness Society, INCAE,Centre for Corporate Citizenship, UNISA.

Observer members:Citigroup, FMO, Co-operative Financial Services,Interpolis NV, International Finance Corporation(IFC), Zentrum für Weiterbildung undWissenstransfer, Development Bank of SouthernAfrica (DBSA), Standard Bank of South Africa,FleetBoston Financial, AVIVA.

Stakeholder Forum onSustainability Management &Reporting (SMR)The take up of SMR by financial institutions,especially in developing countries, is stilllow. UNEP FI identifies lack of awarenessand capacity as the two main barriers andseeks to produce a set of Guidelines toaddress them. In 2004-5, the focus of theproject is to produce a CEO Briefing onSustainability Management and Reporting

UNEP FI CEO BriefingsThis series of UNEP FI publicationsprovides concise, easy-to-use up-dates andresearch findings on specific themesexamined by the Working Groups, RegionalTask Forces and Projects.

Available online at www.unepfi.org/publications

Regional task forcesThe Regional Task Forces serve toensure UNEP FI addresses thespecific regional needs of itssignatories and that the outputs ofthe Working Groups areadequately disseminated to theregions.

Investingin StabilityProject

UNEP FI and theInternationalInstitute forSustainableDevelopment (IISD)finalised the project

surveying the linkages between financialinstitutions’ operations and conflictprevention, funded by the German Ministryof Environment (BMU). The project report,“Investing in Stability”, features articles fromthe Control Risks Group, IISD & UNEP FI,the Asian Development Bank and KPMG. Arequest for co-publishing of the paper hasbeen received and a funding proposal forfurther work in the area was submittedjointly with International Alert.

Climate Change Working Group (CCWG)

ms

Aim:n To engage the financial sector on therisks and opportunities relating to climatechange and enable it to play a key role indelivering market solutions that mitigateits effects.

Specific Goals:n Identify and communicate the financialsector’s key role in mitigation andadaptation to climate change;

n Raise awareness of the global andregional challenges of climate changeacross all sectors and industries, includingpolicymakers and the public at large;

n Participate in policy and regulationdebates at both the national andinternational levels, including the UnitedNations Framework Convention onClimate Change (UNFCCC), throughsupport of the Kyoto Protocol flexiblemechanisms.

2004 Highlights:Sustainable Energy Finance(SEF) Event – Bonn, 1-2 June2004Organized by SEFI as a joint initiativebetween UNEP FI, UNEP Energy andBASE, and as part of the InternationalConference for Renewable Energies, theEvent brought together 260 members ofthe finance community, governmentofficials and project developers from 37countries. The CEO Briefing on

Renewable Energy was launched on thisoccasion, presenting the business case forrenewable energy, calling for moreleadership from policymakers and actionby financial institutions.Side event at 10th annualConference of the Parties ofthe UNFCCC – Buenos Aires,15 December 2004.The event addressed the group’s latestCEO Briefing on Finance for CarbonSolutions, with a focus on the CleanDevelopment Mechanism (CDM). Thebriefing provides a number of keyrecommendations on how to improve theCDM process in order to engage financialinstitutions in CDM projects.

Chair:Munich Reinsurance

Members:Abbey, Aviva plc, Bank of America, DresdnerBank, Garant (Global Sustainable DevelopmentProject), Munich Re, Sustainable AssetManagement, Swiss Re.

Advisors:Andlug Consulting, International Policy Advisor,3C Consulting.

which collates strong and clear businesscases for financial institutions to operatesustainability management and reportingin emerging markets. The CEO Briefing isdue to be published in mid 2005 and willbe followed up by capacity buildingworkshops in 2005-6.

Chair:Standard Chartered

Participants:Barclays, Corporate Citizenship Centre, UNISA,Citigroup, DNV Region South EuropeCertification, Fleet Boston Financial, NetherlandsDevelopment Finance company (FMO),International Finance Corporation (IFC), INCAE,Standard Chartered.

North AmericanTask Force (NATF)Goals:n To position the NATF as an expertgroup;

n To reach out to non-signatory NorthAmerican banks;

n To identify potential researchprojects.

2004 ActivitiesHighlights:

Strategic PlanningThe NATF met twice to update theircurrent strategy and plan outputs inadvance of the 2005 UNEP FI New YorkRoundtable. The group agreed to focuson producing cutting-edge research onthe impact of environmental and socialissues on the North American financialsector. Topics proposed include:understanding environmentaldisclosures in financial statements;establishing optimal sustainablegovernance frameworks within banks;financial sector ratings of sustainabilityraters and indexes.

Research on climate andthe financial sector -“Lending Clarity”The NATF agreedto launch a studyon climate andthe financialsector in 2005covering: themajor risks posedby climatechange todebtors; themacro impact of climate change onfinancial risk; the specific debt sectorswhich will be most impacted. The studywill also measure the likely impact inthe short-term versus the long-term, andthe impact of perceived versus actualrisk.

Chair:Bank of America

Members:Canadian Imperial Bank of Commerce,Citigroup, HSBC USA, Royal Bank of Canada.

ask forces

Central and EasternEurope Task Force(CEETF)Goals n To set sustainability priorities for thefinancial sector in Central and EasternEurope;

n To create a forum enabling signatoriesin the region to exchange ideas and bestpractice, facilitated by the UNEP FInetwork;

n To integrate a triple bottom lineapproach to CEE financial sectoroperations.

2004 HighlightsResearch on finance &sustainability in CEEA survey was conducted among 26

financial institutions inthe region to assessthe state ofsustainabilityawareness in thefinance sector. Keysustainability issues inCEE were found to be:environmental credit

risk, asset management/sociallyresponsible investment and corporatesocial responsibility. Over 90% ofinstitutions that had implementedsustainable business practicesexperienced clear benefits such asreputation enhancement and cost savings.

Renewable Energy FinanceWorkshopHeld in collaboration with the SustainableEnergy Finance Initiative (SEFI), theWorkshop attracted over 90 participantsfrom the international and local financialsector, NGOs, as well as projectdevelopers and governmental agencies.The event focused on discussingexperiences in financing renewableenergy in Central and Eastern Europe andspreading best practices.

Chair:European Bank for Reconstruction andDevelopment

Members:Bank Austria Creditanstalt, Emporiki Bank, HVBGroup, Komercni Banka, Raiffeisen ZentralbankAustria AG

Advisors:Regional Environmental Center for Central andEastern Europe

Latin American TaskForce (LATF)Goalsn To set sustainability priorities for theLatin American financial sector and topromote these through capacitybuilding and training;

n To create a forum of Latin Americansignatories to exchange ideas and bestpractice facilitated by the UNEP FInetwork;

n To integrate a triple bottom lineapproach to Latin American financialsector operations.

2004 HighlightsLATF Launch MeetingThe LATF’s first meeting was held inLima, Peru, on 1-2 July. LATF Terms ofReference were agreed, and participantsdiscussed the strategic focus and futureactivities of the Task Force.

Scoping Paper onsustainable finance in LatinAmericaFunded and managed by CorporaciónAndina de Fomento, the LATF chair atthe time, and authored by the BrazilianCentro de Estudos em Sustentabilidade(CES) of the FGV Business School in SaoPaulo, the paper outlines the state ofsustainable finance in different countriesand identifies related challenges andopportunities.

TrainingBoth the launch meeting and theScoping Paper identified training as themost important focus area for the TaskForce. The LATF has started to developa training concept and will conduct anumber of training workshops on thesocial and environmental aspects ofcredit risk in 2005.

Chair:Corporación Andina de Fomento (until10/2004), ABN AMRO Asset Management /Banco Real (Brazil)

Co-Chair:Instituto Centro Americano de Administraciónde Empresas

Members:ABN AMRO NV (Argentina), Banco Cuscatlán,Banco Solidario, Grupo BBVA/BancoContinental (Peru), Fundação Getulio Vargas -CES, Fundación Social, Grupo Santander,Suleasing, UNIBANCO.

Advisory Group Members:SRInvest Argentina, FIDES - DesenvolvimentoSustentavel, Cleaner Production InternationalLLC, KPMG LLP UK, Fundação Brasileira Parao Desenvolvimento Sustentavel, Inter-AmericanDevelopment Bank, World Resources Institute –New Ventures, Finanzas Ambientales,Enterprising Solutions Global Consulting.

African Task Force(ATF)Goals:n To set sustainability priorities for theAfrican financial sector;

n To establish general standards or codesof conduct on finance and sustainabilityin Africa;

n To integrate a triple bottom lineapproach to African financial sectoroperations.

2004 Highlights:Sustainability Banking inAfrica Report

The report outlinesthe challenges andopportunities fordevelopingsustainabilitybanking practices inAfrica, through fivecase studies, inSouth Africa,Botswana, Kenya,

Nigeria and Senegal. Launched inSeptember 2004, it was produced by theAfrican Institute of Corporate Citizenship(AICC), supported by the ATF, andfunded by the International FinanceCorporation (IFC), Finmark Trust,Nedbank and Deutsche Bank.

Risk management -corporate governancestandards & guidelinesprojectThis project aims to assist relationship andrisk managers in identifying, mitigatingand monitoring social and environmentalrisks in their business decisions. It willalso explore the promotion of a non-financial, sustainability risk andopportunity component to the corporategovernance agenda in Africa. Initiallydeveloped for the South African market, itwill be expanded into a broader sub-Saharan African project in 2005.

Chair:Banking Council of South Africa

Co-Chair:African Institute of CorporateCitizenship

Core Financial Members:Development Bank of SouthernAfrica, Nedbank (South Africa),Citigroup (South Africa),International FinanceCorporation (South Africa), Standard Bank,Standard Chartered (South Africa), InvestecBank.

Associate Members:AICC Centre for Sustainable Investing (SouthAfrica), African Investment Advisory (UK), AfricanCentre for Investment Analysis, University ofStellenbosch, Unity Incorporation, IndustrialDevelopment Corporation.

Water ProjectIn an effort to mobilise the financialcommunity into greater participation inthe water sector, UNEP FI and theStockholm International Water Institute

(SIWI) conductedresearch on the

challengesof waterscarcity forfinancialinstitutions.The mainfindings were presented in Stockholm,in August 2004, during World WaterWeek. The full report, Challenges ofWater Scarcity: A Business Case forFinancial Institutions, emphasizes thecritical role that the financial sector andits business partners can play in helpingto achieve water sustainability indeveloping countries, and highlights thepotential opportunities in strategicallyaddressing water challenges throughinnovative and sustainable solutions.

Further activities will be undertaken in2005 to assess these opportunities,including a number of workshops, aswell as the drafting of risk managementguidelines for both financial institutionsand policy makers.

Projects

Values to Value (V2V) The UNEP FIValues to Value(V2V) reportpresents apractitioner’smanual aimed athelping financialinstitutions toincorporate

environmental and corporate socialresponsibility thinking into their corebusiness activities, and paves the way forthe launching of a UNEP FI TrainingProgramme in 2005.

On over 550 pages, including both thematicand region-specific sections, V2V compilesthe expertise and best practices of the mostprogressive financial institutions. The reportincludes a CD Rom of UNEP FI publicationsand conference materials. It is expected tobe updated on an annual basis.

UNEP FI sets up individualProjects on a case-by-case basis tocomplement the activities of theWorking Groups and RegionalTask Forces. UNEP FI Projectsprovide topic-specific researchand services and work closelywith government agencies andother relevant institutions.

Australian outreachprogrammeCreated to provide a forum to encourageand assist the Australasian finance sector tointegrate best sustainability managementpractices across all aspects of theirbusinesses, the Australian OutreachProgramme is managed by EPA Victoria,under an MOU with UNEP FI.

2004 Highlightsn Launch of the Carbon Disclosure Projectresults in the Australian market;

n Stakeholder engagement forums for bothbusiness and NGOs to provide feedback onthe GRI Finance Sector EnvironmentalIndicators Supplement;

n Finance and sustainability seminars inthe South Australian marketplace;

n Two new financial institutions, Membersand Education Credit Union and Savingsand Loans Credit Union, joined theprogramme and subsequently becameUNEP FI members.

Host: EPA Victoria

Financial Participants:American International Group, AMP, AMP CapitalInvestors, ANZ Bank, Aviva Australia, BT FinancialGroup, Commonwealth Bank, EFIC, InsuranceAustralia Group, Macquarie Bank, Members andEducation Credit Union, National Australia Bank,QBE, SAM Sustainable Asset Management,Savings and Loans Credit Union, Swiss Re,VicSuper, Westpac Banking Corporation.

Other Participants: Australian Bankers Association, Department ofEnvironment and Heritage, Ethical InvestmentAssociation of Australia, Institute of Actuaries ofAustralia, Macinante Consulting, MonashSustainability Enterprises, SIRIS.

Asia Pacific TaskForce (APTF) In preparation for the launch of theAPTF in 2005, UNEP FI visited currentsignatories and other financialinstitutions in China, Japan, Korea andthe Philippines in late 2004. The visitwas also aimed at raising interest in the2005 Asia Pacific survey on finance andthe environment. It is expected thatsurvey results will provide anunderstanding of the current situationand trends and could also be used toframe APTF activities in the future.

In 2005 the APTF will be focusing onsetting “sustainability” priorities in theregion, integrating a triple bottom lineapproach to Asia Pacific financial sectoroperations, and creating a critical massof Asia Pacific signatories within theUNEP FI network.

Emerging MarketResponsibleInvestment ProjectNegotiations were launched with agroup of governmental donors to start atwo-year programme on emergingmarket portfolio equity investment. TheProject will seek to determine howcapital markets and policy makers canact to meet international developmentpriorities and contribute to resolving theglobal pensions crisis throughresponsible investment in emergingmarkets. The drivers and barriers forinstitutional investors globally toincrease stable and sustainableinvestment in emerging markets, andthe changes needed to overcome thesebarriers, will also be identified. Inaddition the project will investigate thebenefits of applying social,environmental and corporategovernance criteria as a risk reductiontool for such investments.

UNEP FINewsletter

0.618... is the UNEP FINewsletter. It covers current

issues relating to innovativefinancing for sustainability, and

includes contributions from leaders andexperts in the field.

UNEP Finance Initiative

The United Nations Environment Programme Finance Initiative (UNEP FI) is a uniquepublic-private partnership between the United Nations and the financial sector.

Mission“To identify, promote, and realise the adoption of bestenvironmental and sustainability practice at all levels of financialinstitution operations.”

BackgroundThe concept of UNEP FI was launched in 1991, when a small group of commercialbanks joined forces with UNEP to catalyse the banking industry’s awareness of theenvironmental agenda. In May 1992, the UNEP Financial Institutions Initiative wasestablished, followed by the UNEP Insurance Industry Initiative in 1995. BothInitiatives were merged into the current, joint, Finance Initiative in 2003, followingthe first joint Annual General Meeting held in October 2003.

Today, UNEP FI is the largest global voluntary partnership of its kind, with some 200signatories to the UNEP FI Statements. UNEP FI members include bankers, insurersand fund managers, all working together to understand the impacts of environmentaland social considerations on financial performance.

Structure

UNEP FI is governed by an elected Steering Committee comprised of representativesfrom its membership and a UNEP representative. UNEP FI's annual work programmeand regional activities are coordinated by a Geneva-based Secretariat and aredetermined in consultation with the Steering Committee.

Steering Committee 2004

15 Chemin des AnémonesCH-1219 Châtelaine, Geneva, SwitzerlandTel. (41) 22 917 8178 Fax (41) 22 796 9240 email fi@unep.ch

NEW WEBSITE http://www.unepfi.orgContains detailed information and contact details for all UNEP FIactivities and projects.

UNEP FISecretariatPaul Clements-HuntHead of Unit Ken MaguireAdministratorYuki Yasui Finance

Administration &FinancesHeidi MayhewKirsten Dynnesen

Signatory RelationsKiki LawalMelei Anikpo

UNEP FI ExternalComunications &RoundtableTrevor Bowden

Asset ManagementWorking Group (AMWG) Jacob MalthouseJames GiffordGordon HagartAndy Billington

Climate ChangeWorking Group (CCWG) Lisa PetrovicHenry Thomas

SustainableManagement, Reportingand Indicators WorkStreams (SMRI) Niamh O’SullivanYuki Yasui

Emerging MarketInvestment ProjectCecilia BjerbornPapa DiopPhilip Walker

Water ProjectAlberto Pacheco

Values to Value Manual/ TrainingThomas Levin

Asia Pacific Task Force(APTF)Yuki Yasui

African Task Force(ATF)Niamh O’SullivanFrançois Malo

Central & EasternEurope Task Force(CEETF)Regina Kessler

Latin American TaskForce (LATF) Mareike Hussels

North American TaskForce (NATF) Jacob Malthouse

ChairMichael Hölz, Deutsche BankTreasurer Otti Bisang, Credit SuisseUNEP Representative Monique Barbut, Director, Division ofTechnology, Industry and Economics (DTIE)MembersChris Bray, Barclays (Signatory Representative)

Martin Hancock, Westpac (Signatoryrepresentative)

Iris Gold, Citigroup (Signatory Representative)

Carlos Joly, Storebrand (Asset ManagementWorking Group Representative)

Thomas Loster, Munich Re (Climate ChangeWorking Group Representative)

Cas Coovadia, Banking Council of South Africa(African Task Force Representative)

Mark King, European Bank for Reconstruction(Central & Eastern Europe Task ForceRepresentative)

Helen Sahi, Bank of America (North AmericanTask Force Representative)

Innovative financing for sustainabilityFinance Initiative