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UNEP FIs Environmental Finance Programs Advisor to UNEP FI CEO Forum December 5, 2011 Slide 2 What is UNEP Finance Initiative? -is the oldest partnership between the UN and the financial sector. -was born out of the 1992 Earth summit. -started as a simple project with the banking industry. -is the only finance and sustainability network embedded in the UN system. -has 205 signatories spanning banking, insurance and investment and all geographic regions. December 5, 2011 2UNEP FIs Environmental Finance Programs Slide 3 FIs mission -to embed environmental, social and governance (ESG issues) thinking and action within financial institutions and across capital markets. -to identify and promote best environmental and sustainability practice at all levels of financial institution operations. December 5, 2011 3UNEP FIs Environmental Finance Programs Slide 4 ` 1. Global Steering Committee 2 Industry Commissions Banking/Investment/Insurance 3.Thematic Advisory Groups Climate Change/Resource Efficiency/ Biodiversity/Emerging issues 4. Regional Task Forces Africa/Asia Pacific/Europe North America/Latin America December 5, 2011 UNEP FIs Environmental Finance Programs4 Slide 5 5 Our Mission: To identify and promote best environmental and sustainability practice at all levels of financial institution operations. December 5, 2011 UNEP FIs Environmental Finance Programs Slide 6 Global Roundtable 2009 Changing finance: -due diligence & risk management -creating value for clients via sustainability management -internal environmental management Financing Change: -green financing -developing green products and services December 5, 2011 6UNEP FIs Environmental Finance Programs Slide 7 December 5, 2011 7UNEP FIs Environmental Finance Programs Slide 8 Global Roundtable 2011- financial sector can generate job creation in sectors ranging from green technology to ecosystem management. financial sector must do its part in creating mechanisms that lead to a more equitable and green economy.-Mary Robinson a stronger economy is a greener economy. -Lisa Jackson December 5, 2011 8UNEP FIs Environmental Finance Programs Slide 9 Global Roundtable 2011- the Corporate Sustainability Reporting Coalition ~calling on all UN member states to commit to develop a Convention that mandates company boards to consider sustainability issues, and to integrate sustainability issues material to their business into their annual Report and Accounts. December 5, 2011 UNEP FIs Environmental Finance Programs9 Slide 10 the Australasia Group: developed an environmental and sustainability code of conduct for the suppliers of financial institutions. the Japan Group the Korea Group hold the Financing Low-carbon growth in Asia summit in Seoul. December 5, 2011 UNEP FIs Environmental Finance Programs10 Slide 11 Principles for Responsible Investment - April 2006 : launched with 40+signatories - October 2011: over 940 with US$30 trillion We will incorporate ESG issues into investment analysis and decision-making process. We will be active owners and incorporate ESG issues into our ownership policies and practices. December 5, 2011 11UNEP FIs Environmental Finance Programs Slide 12 Fiduciary Responsibility October 2005, Fiduciary Responsibility -it may be a breach of fiduciary duties to fail to take account of ESG consideration. July 2009, Fiduciary Responsibility -integration of ESG issues should be a legal responsibility. PRI is now the global framework for responsible investment~ December 5, 2011 12UNEP FIs Environmental Finance Programs Slide 13 Principles for Financial Action for the 21 st Century -Principles for Financial Action towards a Sustainable Society, Japan The Principles 1~7: 1. We will recognize our roles and responsibility, taking into account the precautionary approach, and promote those actions that contribute towards shaping a sustainable society. 2. We will contribute to the formation of a sustainable global society through the development and provision of financial products and services leading to the development and increased competitiveness of industries contributing to a sustainable society as represented by the environmental technologies and services sector. December 5, 2011 13UNEP FIs Environmental Finance Programs Slide 14 A green economy 1. We are using up the Earth`s Capital. 2. The 20 th `s economy has grown at any cost and has hit the limits. 3. We should live on the Interest. 4. We need a global economy that invests I real and inclusive long-term growth. December 5, 2011 14UNEP FIs Environmental Finance Programs Slide 15 the brown economy: economic growth at any cost has hit its limits already the green economy: long-termism/inclusiveness environmental protection Green financing can boost flows of finance to support the transition of a brown economy into a green economy. December 5, 2011 UNEP FIs Environmental Finance Programs15 Slide 16 December 5, 2011 UNEP FIs Environmental Finance Programs16 The King and Queen of Bhutan deeply moved Japanese people. The King`s words touched their hearts. Japanese people go forth in seeking for a new value standard after the March 11 th incident. Slide 17 Thank you very much December 5, 2011 17UNEP FIs Environmental Finance Programs