------------------------------------------------------------------------ Issue 27, March 2004 www.unepfi.net/ebulletin "Markets can remain irrational longer than you can remain insolvent" - John Maynard Keynes - EVENT OUTCOMES 1. Ratings Event on the EU Emissions Trading Scheme MEMBER SHOWCASE 2. UNEP FI Welcomes MECU as a New Signatory 3. BBVA Releases its Second CSR Report 4. Development Bank of Japan Creates Lending System to Promote Eco-Friendly Management 5. Storebrand on CSR ACTIVITIES 6. UNEP FI's Climate Change Working Group Explores the Prospects for Renewable Energy 7. UNEP FI Sustainability Management Reporting and Indicators (SMRI) Working Group Programme 8. Update on the Latin American Taskforce (LATF) 9. UNEP FI Progress in Central and Eastern Europe 10. Global Reporters International Benchmark Survey 2004 EVENT WIRE 11. CERES 2004 Conference: Critical Decisions for Lasting Prosperity April 14 ? 15, 2004; Boston, USA 12. Green Power Central & Eastern Europe September 27 -29, 2004; Budapest, Hungary EVENT OUTCOMES 1. Ratings Event on the EU Emissions Trading Scheme On 2 April, UNEP FI, in cooperation with the NGO Germanwatch, co-hosted an event to discuss the implications of the European Union's Emission Trading Scheme (EU ETS) on corporate ratings. Over 25 individuals attended the event, held in Cologne, Germany, representing key financial institutions from across Europe. Dr. Artur Runge-Metzger from the European Commission gave a very insightful keynote presentation on the scheme. He provided an assessment of the National Allocation Plans submitted by EU states thus far, and commented on how the scheme will move forward over the next few months. He noted that is more cost effective to fight climate change through schemes such as EU ETS than to let climate change happen. The key message from the ensuing discussions was that companies and sectors impacted by the trading scheme, particularly those that are carbon intensive, such as the utility industry, need to have a carbon management strategy in place. Companies that respond quickly and effectively can look to benefit economically and improve their shareholder value: impacted sectors need to move from carbon risk to carbon opportunity. For more information contact: Lisa Petrovic: lisa.petrovic@unep.ch MEMBER SHOWCASE 2. UNEP FI Welcomes MECU as a New Signatory Members and Education Credit Union (MECU) www.mecu.com.au On the 25th March 2004 MECU joined UNEP FI, the first Australian credit union to sign up to the initiative. MECU is one of Australia's largest banking cooperatives. Speaking at the signing ceremony organised by UNEP FI's Australasian partner EPA Victoria, Chairman John Baistow stated "It's our conviction that more and more Australians want a more socially responsible approach to banking. For us sustainability is ultimately about creating long-term member value and, we think, the management of social and environmental risks is ultimately woven into the fabric of cooperative philosophy and outstanding financial performance. MECU believes the opportunity exists to redefine the role of a cooperative banking organisation in Australia and to develop its reputation according to a socially responsible approach to sustainable development". For more information contact: Rowan Dowland: rowan.dowland@mecu.com.au 3. BBVA Releases its Second CSR Report BBVA, a leading player in the Spanish and Latin American financial markets, has released its second annual CSR Report for 2003. The BBVA Group considers this report as an ideal way to demonstrate its accountability to all its stakeholders: its shareholders, its customers, its employees, its suppliers and to society as a whole. The report highlights the achievements to date and what the BBVA Group aspires to do to comply with its vision statement: 'Working towards a better future for people'. BBVA understands that the key to the future, in an increasingly globalised world, is the successful blend of economic, social and environmental considerations in an harmonious and balanced manner within a model of sustainable development. If you would like to read the report: http://ws1.grupobbva.com/TLBB/tlbb/jsp/ing/relinver/infofina/infanual/index.jsp For more information contact: csr@grupobbva.com 4. Development Bank of Japan Creates Lending System to Promote Eco?Friendly Management The Development Bank of Japan (DBJ), announced in September 2003 that it will introduce a new loan system during the next fiscal year to promote environment?conscious management. Its corporate lending mechanism to date has been to first specify the types of facilities it will finance, such as pollution prevention equipment, and then to lend funds for its acquisition. But with the new system, the bank will first identify companies and then support their eco?friendly management, by broadly backing finance for environmental conservation through lending and corporate bond guarantees. The selection of companies will be based on the DBJ's own screening assessment that grades companies' records of performance. Qualitative evaluation will include company goals, structure, and efforts for the environment, and quantitative assessment will be made in terms of eco-efficiency and resource productivity, among other items. The full details are yet to be decided, but the bank plans to select about 100 items to evaluate companies in the manufacturing and non?manufacturing sectors, and small? and medium?sized companies. Certain criteria will provide bonus points in the grading system. After selecting a company for new loans, the bank will continue monitoring its management situation. The bank aims to promote environment conscious management, in cooperation with private financial institutions, by disclosing its methods of evaluation, the allocation of marks and assessment criteria. Source: Japan For Sustainability Posted: 28/01/2004 5. Storebrand on CSR Storebrand released their second Corporate Social Responsibility (CSR) action plan in 2003. In Norway there is a growing interest in CSR and Storebrand is regarded as one of the leading companies. Storebrand's CSR Action Plan is released every second year, and for 2003 the company reports on its CSR activities through their annual report. Storebrand's commitment to CSR represents a long-term strategy that is firmly anchored in the company's corporate vision and values. Recognising our corporate social responsibility means that we strive to base the strategy and management of our activities on a combination of financial, social and environmental factors. Storebrand's CSR Action Plan 2003?2004 was awarded a prize in 2003 for the best reporting on sustainability issues in Norway. The German research institute Oekom Research has published a report on the quality of CSR practices at European insurance companies, and Storebrand is recognised as one of the leading companies in Europe in terms of the proportion of total investment that is subject to SRI criteria. For more information contact: Kristin Nokleby Holth: knz@storebrand.no You can find both Storebrand's CSR Action Plan 2003-2004 and Storebrand's Annual Report 2003 on: www.storebrand.com ACTIVITIES 6. UNEP FI's Climate Change Working Group Explores the Prospects for Renewable Energy A key development for the Climate Change working group was the launch of the Sustainable Energy Finance Initiative (SEFI) at the UNEP FI Tokyo Roundtable in October 2003. SEFI is a partnership between UNEP FI, UNEP Energy and BASE (Basel Agency for Sustainable Energy), a UN Collaborating Center. The goal of SEFI is to bring about increased investment in the clean energy sector. The means to achieving this is to introduce new approaches to financing sustainable energy and to catalyse strategic partnerships in the area of clean energy finance. SEFI will be modelled in part on the UNEP Finance Initiative as a platform for providing sustainable energy financiers with the tools, support and networks needed to drive the cycle of financial innovation focused on a greening of the energy mix. The Climate Change Working Group will be an active participant in the initiative. As part of SEFI, and in anticipation of the first "International Conference for Renewable Energies" in Bonn, Germany (1-4 June 2004), the working group is preparing a CEO Briefing looking at the risks and opportunities for the financial industry in the renewable energy sector. The briefing will identify barriers to investment in renewable energy and present the business case for ramping up investment in renewable energy projects. It will outline current political developments in the nascent renewable energy marketplace, and more importantly, present the types of financing and risk management tools currently available from the banking and insurance sector. In addition, the report will present concrete case study examples of financing sustainable energy, with an emphasis on 'lessons learned', and make strong policy recommendations for further action on the issue. In conjunction with the paper launch at the conference, a focused media strategy will be launched to ensure extensive coverage of the financial sector perspective and the broader Sustainable Energy Finance Initiative (SEFI). For more information contact: Lisa Petrovic: lisa.petrovic@unep.ch 7. UNEP FI Sustainability Management Reporting and Indicators (SMRI) Working Group Programme Work Stream 1: UNEP FI ? GRI Working Group on Performance Indicators (Environment) for the International Finance Sector Following the second successful working group meeting in January, the UNEP FI ? GRI Working Group will meet for a third time in the Swiss Reinsurance Centre for Global Dialogue, Zurich, on 6-7 May, 2004. The purpose of the meeting will be to review the draft indicator proposals that the working group have been developing to date, and to agree upon a working indicator set to release for a 90-day public consultation period following the meeting in May. For more information contact: Niamh O'Sullivan: niamh.osullivan@unep.ch Or visit: www.unepfi.net/gri/ Work Stream 2: UNEP FI Sustainability Management and Reporting (SMR) Guidelines Forum Following the approval by Forum members in March of the project plan for the production of the first version of the UNEP FI SMR Guidelines, the UNEP FI SMR Guidelines project office announces its basic content. The take up of SMR by financial institutions especially in the developing countries is still low even whilst the financial sector plays an important role in sustainable development as intermediaries to the allocation of financial capital. UNEP FI identifies lack of awareness and capacity as the two main barriers hindering many financial institutions to implement SMR. The UNEP FI Guidelines document aims to address both these barriers by first setting out a business case for SMR and then providing guidance on how to get started on SMR. The target audiences for the document are CEOs and board members of financial institutions with no experience in SMR. It is especially targeting domestic financial institutions (as opposed to international development banks and subsidiaries of international banks) in developing countries. The project office aims to fill the Guidelines document with case studies that provide 1) a clear insight into the commercial and environmental benefits of adopting the sustainability management and reporting principles and 2) tips on capacity building in introducing SMR. The project office would love to hear from financial institutions, especially in developing countries, that have recently adopted or currently in the process of adopting SMR who would be willing to share their experiences. The first version of the Guidelines is scheduled to be out in Q4 of 2004 after public consultations in the summer and autumn. For more information contact: Yuki Yasui: yuki.yasui@unep.ch Or visit: www.unepfi.net/smr/ 8. Update on the Latin American Taskforce (LATF) The LATF is taking shape! To date, the following eight institutions have become formal members: Corporación Andina de Fomento (CAF) (acting Chair) ABN AMRO Asset Management/ Banco Real ABN AMRO ABN AMRO NV - Sucursal Argentina Banco do Brasil Banco Solidario BBVA Group Escola de Administração de Empresas de São Paulo da Fundação Getulio Vargas, Centro de Estudos em Sustentabilidade (CES) INCAE/Centro Latinoamericano para la Competitividad y Desarrollo Sostenible (CLACDS) Santander Group UNIBANCO - União de Bancos Brasileiros S.A. Overall, we have 14 individuals with varying backgrounds, such as asset management, environmental compliance, project finance and micro-finance ? contributing to the taskforce. Membership of a number of other institutions is being considered. The taskforce has developed a draft work programme for 2004, and while continuing member recruitment across the continent, is beginning to plan activities and events for the second half of 2004. Currently underway is the development of a scoping paper to identify critical issues for the Latin American financial sector with regards to sustainable finance. A draft of this paper will be discussed at the first face to face meeting of the taskforce planned for July this year. Latin American financial institutions, financial regulators, and stakeholders interested in the LATF are invited to contact Mareike Hussels at the UNEP FI secretariat. For more information contact: Mareike Hussels: mareike.hussels@unep.ch Or visit: www.unepfi.net/latf 9. UNEP FI Progress in Central and Eastern Europe Since the beginning of 2004 the Secretariat has worked on expanding its activities in Central and Eastern Europe (CEE). During these months the taskforce has started to work closely with 9 institutions that represent some of the most important players in the market. The CEE Taskforce will meet on May 11, 2004, in Sofia, Bulgaria to finalise the group's objectives, work programme and working mechanisms. Topics considered for inclusion in the work programme range from EU environmental regulations, project finance, CSR, to asset management/SRI. For more information contact: Regina Kessler: regina.kessler@unep.ch 10. Global Reporters International Benchmark Survey 2004 CALL FOR REPORTS SustainAbility, in partnership with the United Nations Environment Programme and Standard & Poor's, are calling for companies and organisations producing sustainability reports/websites to submit their latest report/website for the next Global Reporters international benchmark survey. Only sustainability reports and/or websites that are publicly available and submitted by the 1st of June 2004 will be eligible for selection. Report Submission: Companies and organisations wishing to submit their report should go to SustainAbility's website for instructions including an online submission form which needs to be completed by each company or organisation. www.sustainability.com/programs/engaging/GR04.asp In mid-June an independent selection committee will convene to select 50 reports for benchmarking. The final report will be launched in November 2004. SustainAbility, UNEP and S&P would appreciate your assistance in circulating this notice to other companies and organisations that are actively involved in sustainability reporting. EVENT WIRE 11. CERES 2004 Conference: Critical Decisions for Lasting Prosperity April 14 ? 15, 2004; Boston, USA On the evening of 14th April, 2004, the conference officially kicks off with the CERES 15th Anniversary Dinner, featuring a dynamic keynote address by Jeremy Rifkin, author of such bestsellers as The End of Work, The Biotech Century, The Age of Access, and The Hydrogen Economy. April 15th will offer plenary sessions and workshops on a host of issues such as investors' influence on corporate governance and sustainability, the impact of climate change on specific industry sectors, and environment and the 2004 election. We will also announce the 2nd annual CERES-ACCA North American Sustainability Reporting Awards, which showcases the best in sustainability reporting from U.S. and Canadian companies. For more information visit: www.ceres.org/conference/2004/2004_program.htm 12. Green Power Central & Eastern Europe September 27 -29, 2004; Budapest, Hungary The Renewable Energy & Energy Efficiency Meeting Place Cut through the rhetoric and attend this executive business forum for utilities, banks, governments, NGO's, independent power producers, industrial users and the finance industry. The event will be accompanied by a one-day finance forum organised by UNEP FI. Designed to increase investment, business and accelerate the transition to cleaner, greener economies. www.greenpowerconferences.com Email info@greenpowerconferences.com To unsubscribe: email: LISTSERV@peach.ease.lsoft.com and in the body of the email type "signoff UNEPFI" To subscribe: email: LISTSERV@peach.ease.lsoft.com and in the body of the email type "subscribe UNEP FI" END. The UNEP FI e-bulletin is a monthly publication of the United Nations Environment Programme Finance Initiative. United Nations Environment Programme Division of Technology, Industry and Economics Economics and Trade Branch Finance Initiative Unit Chief Editor: Paul Clements-Hunt Editors: Henry Thomas Henry.Thomas@unep.ch Jacob Malthouse jacob.malthouse@unep.ch Disclaimer: The views expressed in this publication are not necessarily those of UNEP or UNEP FI, or of its signatories, nor does UNEP FI or its signatories take any responsibility for actions taken as a result of views or opinions expressed in this publication. Copyright 2004 - UNEP FI