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Issue 29
June 2004
www.unepfi.net/ebulletin - To View the original e-Bulletin Copy

"About 20% of (global) GDP is affected by climate risk...(climate change)
is more important than interest rate risk or the foreign exchange risk"
- AXA - Carbon Disclosure Project 2 Report -

HIGHLIGHT: UNEP FI Launches 'Values to Value' Report

EVENT OUTCOMES
1. UNEP FI - GRI Working Group on Performance Indicators (Environment) for
the International Finance Sector
2. Outcomes of the Central and Eastern European Task Force kick-off meeting

MEMBER SHOWCASE
3. BBVA Becomes the First Spanish Bank to Adopt the "Equator Principles"
for Social and Environmental Criteria
4. UNEP FI Welcomes Six New Signatories
5. Seoul, Towards a New Hub of SRI in Asia
6. The Carbon Disclosure Project (CDP) Launches its New Report
7. Lloyds TSB Sets out Strategic Priorities for 2004 "Taking Account: the
Community and our Business"
8. "la Caixa" Introduces ISO 14001 Environmental Management System

ACTIVITIES
9. The Latin American Task Force Kicks off in Lima
10. Risks of Water Scarcity: A Business Case for Financial Institutions

EVENT WIRE
11. UNEP FI Renewable Energies Finance Forum
12. 6th Anniversary TBLI Conference

NEWS
13. Bank of America Sets New Industry Best Practices for Climate Change and
Forest Policies
14. Shareowner Resolution Withdrawn as JP Morgan Chase Addresses
Environmental Risks
15. Northern Rock Creates Working Groups to Implement its Social &
Environmental Policies

HIGHLIGHT: UNEP FI Launches 'Values to Value' Report

The UNEP FI Values to Value (V2V) report will be launched in Paris on 16th
June, 2004. V2V presents a practitioner's manual, which helps financial
institutions to incorporate environmental and corporate social
responsibility thinking into their core business activities.

On over 550 pages the report has brought together expertise and best
practices of the most progressive financial institutions in the field of
sustainable finance. In a thematic and region specific section the report
examines closely the fascinating interlinkages between the finance sector
and sustainable development and highlights the opportunities that
sustainable development offers to the financial services sector.

The thematic section covers Asset Management, Climate Change, Financial
Systems, Sustainabiltiy Management and Reporting amongst other prominent
sustainability issues. The regional section summarises region specific
sustainability practices gathered during UNEP FI's two year Regional
Outreach Tour on five continents.

The report comes with a CD Rom of UNEP FI publications and conference
materials and will be updated on an annual basis to keep users on the
cutting edge of the finance and sustainability debate.

To purchase the report, please download the order form on:
www.unepfi.net/v2v/index.htm

EVENT OUTCOMES

1. UNEP FI - GRI Working Group on Performance Indicators (Environment) for
the International Finance Sector

Success at the Third Working Group Meeting
May 6th - 7th,the Swiss Re Centre for Global Dialogue, Rüschlikon,
Switzerland, saw the UNEP FI - GRI Working Group* gather for the third time
to finalise a set of draft indicators for the environmental impacts of
financial sector products and services. The aim is to produce a pilot
version of the GRI Financial Services Sector Supplement (Environmental
Performance), through the development of these globally applicable
indicators, in the third quarter of 2004.

Following an intensive two-day meeting a set of 15 pilot indicators
designed to assist international financial institutions report on the
environmental impacts associated with retail banking, commercial and
corporate banking, asset management and insurance were agreed upon. This
set of draft indicators will be released for a public consultation period
in mid- June, which will run until early September 2004.

For more information on this Working Group project, and for forthcoming
announcements on the beginning of the public consultation period, please
visit www.unepfi.net/gri
or contact Niamh O' Sullivan: niamh.osullivan@unep.ch

* Working Group members include:

Financial Sector Representatives
Bank of China
Calvert Group Ltd.
Christian Brothers Investment Services (CBIS) Inc.
Core Ratings Ltd.
Deutsche Bank
Insurance Australia Group (IAG)
National Australia Bank (NAB)
Nedcor
Rabobank Nederland
Standard Chartered
Swiss Reinsurance Company
Westpac Banking Corporation

Non-Financial Sector Representatives
Corporate Citizenship Centre, University of South Africa (UNISA)
Earthwatch Europe
Ethical Investment Research Services (EIRiS)
Euronatur
Friends of the Earth (FoE), USA
Instituto Centroamericano de Administracion de Empresas (INCAE)
Wilderness Society Australia

2. Outcomes of the Central and Eastern European Task Force kick-off meeting

The newly formed Central and Eastern European Task Force had their first
meeting on the 11-12 May, 2004, in Sofia, Bulgaria. The aim of the meeting
was to define the Task Force's work programme as well as communication and
working mechanisms for the group. Participants included; Hypovereinsbank,
Bank Austria Creditanstalt, Bank Pekao SA, Emporiki Bank, Komercni Banka,
OTP Fund Management, Encouragement Bank, ING, EBRD, Regional Environmental
Centre for Central and Eastern Europe and Environmental Investment
Partners.

The 2004 work programme of the task force will cover the following
activities:
·     Awareness-raising for sustainable finance in the region (develop
outreach material, create the business case for sustainable finance, etc.)
·     Develop an information platform to facilitate the management of
environmental credit risks including critical information for different
industries in each CEE country, checklists for credit specialists,
questionnaires for clients and links to helpful experts
·     Set up a training program for sustainable finance

The Task Force elected a Chair (Mark King, EBRD) and a Co-Chair (Stella
Kovlaka, Emporiki Bank). The next meeting of the CEETF will be 27-28
September in Budapest, where the Task Force will be launched at the Finance
Forum of the Renewable Energies for CEE conference.

For further information contact:
Regina Kessler: regina.kessler@unep.ch

MEMBER SHOWCASE

3. BBVA Becomes the First Spanish Bank to Adopt the "Equator Principles"
for Social and Environmental Criteria

"BBVA became the first Spanish bank to join a select group of international
banks that have signed up to the Equator principles promoted by the World
Bank. Following these international principles involves assessing the
social and environmental impact of large-scale project finance before
granting the financing"
http://ws1.grupobbva.com/TLBB/tlbb/jsp/ing/salapren/listnotas/BBVA3558.jsp

4. UNEP FI Welcomes Six New Signatories

BNP Paribas Asset Management
www.am.bnpparibas.com/BNPPAM/assetmanagement/home/jsp/home_int_access.jsp
BNP Paribas Asset Management is the investment management arm of BNP
Paribas, the leading bank in the euro zone in terms of net profits.  BNP
Paribas Asset Management has 175.3 billion euros, of assets under
management and is one of the leading players in European fund management.

BNP Paribas Asset Management is strongly involved in the field of
sustainable & responsible investment.  The firm takes the view that
sustainable development has material implications for companies and
investors, and that systematic analysis of social, environmental and
corporate governance practices can uncover significant sources of
shareholder value creation or destruction.   The assessment of these
practices is carried out by means of "extra-financial" analysis, which is
an integral part of fundamental research and investment processes.

For more information contact:
Eric Borremans: eric.borremans@bnpparibas.com

The Bank of Tokyo-Mitsubishi
www.btm.co.jp/english/
The Bank of Tokyo-Mitsubishi, which is part of the Mitsubishi Financial
Group, is one of the "Big Four" Banks in Japan. Tokyo-Mitsubishi is a
commercial banking organisation and provides a broad range of domestic and
international banking services from their offices in Japan and around the
world. They are a "city" bank, as opposed to a regional bank and they
provide retail, commercial and global corporate banking.

For more information contact:
Mike Tagai: masayuki_tagai@btm.co.jp

Japan Bank for International Cooperation (JBIC)
www.jbic.go.jp/english/index.php
The purpose of Japan Bank for International Cooperation is to contribute to
the sound development of Japan and the international economy and community
through undertaking lending and other financial operations: for the
promotion of Japanese exports, imports or Japanese economic activities
overseas; for the stability of international financial order; and for
economic and social development or economic stability in developing areas;
in accordance with the principle that it shall not compete with commercial
financial institutions.

With respect to environmental conservation projects, JBIC is financing
renewable energy projects and energy saving projects to mitigate global
warming and acid rains. Furthermore, JBIC is strengthening its engagement
in the utilization of Kyoto Mechanism, such as CDM and JI, making best use
of its expertise in environment projects in developing countries and its
broad international network.

For more information contact:
Ichiro Toda: i-toda@jbic.go.jp

OTP Fund Management
www.otpalap.hu
OTP Fund Management is the largest asset manager in Hungary. A subsidiary
of OTP Bank Rt, the largest and one of the most profitable commercial banks
in the region, OTP Fund Management maintains its leadership position
through constant product innovation and high standard customer service. OTP
recognises the fundamental importance of sustainable development to the
success of its long-term business strategy. The bank also recognise the
potential for business opportunities associated with raising corporate
environmental and social performance. In 2004 OTP Fund Management became
the first fund manager in Hungary, and perhaps the region, to launch an
exploratory analysis for socially responsible investment in Central and
Eastern Europe.

For more information contact:
Natasha Landell-Mills: nlmills@enternet.hu

First Korean Banks sign up to UNEP FI Statement (see SRI event below)
Kookmin Bank
www.kbstar.com
Woori Bank
www.wooribank.com

5. Seoul, Towards a New Hub of SRI in Asia

On 30th April, an SRI workshop and a UNEP FI signing ceremony was held in
Seoul, Korea. The event was organised jointly by KAIST Graduate School of
Management, one of the most renowned management schools in Korea, and UNEP
FI in association with KAIST CSR Research Centre, Finance Forum-Vision of
the 21st Century, and Eco-Frontier Co. The event was sponsored by Ministry
of Finance and Economy, ASrIA, Kookmin Bank, Woori Bank, and Economy21

The workshop served to build awareness of mainstream financial experts on
SRI and had Kookmin Bank and Woori Bank in signing the UNEP statement on
sustainability as the first banks in Korea.

Prof. Byong-Hun AHN, the chairman of the workshop and director of KAIST CSR
Research Centre, especially suggested that the Korean pension fund, one of
the biggest pension fund in Asia, should be managed in a responsible and
sustainable ways.

The event was attended by mainstream decision makers, among them
Vice-Minister of Finance and Economy, Dr. Gwang-Lim KIM and a former
Minister of Finance and Economy, Prof. Kyu-Sung LEE. With growing interests
in SRI and its implications for the management of pensions funds worldwide,
Korea is making its way as a new SRI leader in Asia.

For further information contact:
Mr. Dae-Woong Lim: (dwlim@ecofrontier.co.kr)

6. The Carbon Disclosure Project (CDP) Launches its New Report

With the successful release of the second CDP report in London, New York,
Tokyo, Hong Kong and Melbourne, both the corporate responses and the report
are available to download for free at www.cdproject.net

The report, which expanded globally with signatories from Africa, Asia,
Europe and North America, now represents over $10 trillion in assets. The
responses received from the FT500 Global Index companies also rose sharply,
from 47% to 59%. Moreover, the survey data is more diversified by industry,
and more sophisticated in content, than previously, which includes a new
Climate Leadership Index.

To download the report or view the responses visit: www.cdproject.net

7. Lloyds TSB Sets out Strategic Priorities for 2004 "Taking Account: the
Community and our Business"

The report, which has been compiled following a substantial review of CSR
activities by the financial services group's Corporate Responsibility
Steering Group, also highlights:

- a new human rights policy emerging from commitments to stakeholders under
the Group's Code of Business Conduct
- a focus on 'underserved markets' and the development of alternative forms
of financial provision
- an extension of environmental reviews of supplier relationships to
include social and ethical performance
- the sourcing and supply of renewable electricity from small-scale
Scottish hydro-electric generation.

The web-based version of the report can be found at
www.lloydstsb.com/about_us/community.asp

8. Caixa d'Estalvis i Pensions de Barcelona "la Caixa" Introduces and
Environmental Management System Based on ISO 14001

"la Caixa", one of the largest financial institutions in Spain, joined UNEP
Finance Initiative in  September 2003.  As a first step in its commitment
towards sustainable development, "la Caixa" has introduced an environmental
management system which has obtained a ISO 14001 certification in December
2003. ISO 14001 and provides a framework for the development of
environmental management systems and the supporting audit programme.

For further information contact:
José alemany: jalemany@lacaixa.es

ACTIVITIES

9. The Latin American Task Force Kicks off in Lima
1-2 July, 2004

The LATF, which has grown to comprise 10 financial institutions and two
non-financial members from seven countries, is ready for its first
face-to-face meeting. The meeting, which will be held in Lima, Peru, on 1-2
July, 2004, will serve to define a clear operating framework and governance
structure for the Task Force.

Furthermore, the Task Force will discuss a scoping paper on critical issues
for sustainability in the Latin American finance sector. The paper was
prepared by the Centre for Sustainability Studies of Fundação Getulio
Vargas and will serve to inform the future focus of the Task Force and will
feed directly into discussions to refine the 2005 work programme.

For the second day, core members of the Task Force will be joined by
invited experts in sustainability and finance for a workshop to discuss
case studies from the region.

The meeting is kindly hosted by CAF, the Andean Development Bank, who also
sponsored the research for the scoping paper and serves as the acting Chair
of the LATF.

For further information contact:
Mareike Hussels: mareike.hussels@unepfi.net

10. Risks of Water Scarcity: A Business Case for Financial Institutions

UNEP FI is currently collaborating with the Stockholm International Water
Institute / Swedish Water House (SIWI) in a project to investigate
potential risks for financial institutions that arise from water scarcity
and water related social conflict in the regional context of Africa and
Latin America. Entire value chains of companies will begin to be affected
by water shortages, leading to increase costs, process and production
delays, limits on capacity expansion, decline in demand for products and
services, and changing customers preference and expectations. All these
factors can lead to material losses for financial institutions and
financial markets as a whole.

The project "Risks of Water Scarcity: A Business Case for Financial
Institutions" is finance by the Swedish International Development Agency
(SIDA). A draft for this project will be presented at the World Water Week
in Stockholm on 15th August, 2004, in a seminar hosted by the World Bank
and SIWI. This seminar will provide valuable insights and comments from
water experts, financial institutions, governments, NGOs and academia to
discuss the relevance of dealing with water scarcity and the involvement of
financial institutions in prevention or mitigation.

The main objective of the project is to learn and expand on the financial
risks related to water scarcity and water related conflicts. Thus, the
project seeks to:

(1)   Identify potential risks for financial institutions arising from
water scarcity and from social conflicts that might occur under such a
scenario.
(2)   Provide local studies and experience on financial risks as a
consequence of water scarcity.
(3)   Identify positive approaches for financial institutions to mitigate
risks related to water scarcity.
(4)   Strengthening knowledge about water scarcity and its potential effect
on financial institutions.

Financial institutions and stakeholders are invited to contact the UNEP FI
Secretariat or SIWI, if they are interested in obtaining further
information about the project.

For further information contact:
Alberto Pacheco Capella: alberto.pacheco@unep.ch or
Johan Kuylenstierna: johan.kuylenstierna@siwi.org

EVENT WIRE

11. UNEP FI Renewable Energies Finance Forum
27 September, 2004, Budapest, Hungary

In collaboration with Green Power Conferences UNEP FI will organise a one
day finance forum accompanying the Renewable Energies and Energy Efficiency
Conference in Budapest. The finance forum will examine the different
options how finance can be provided for renewable energy projects, what the
opportunities and barriers for financial institutions are when dealing with
renewable energy projects and how risk management activities can be
improved. The forum will bring together CEE finance practitioners that are
active in the renewable energy field in order to share experiences and
discuss best practices.

For more information:
www.greenpowerconferences.com/events/green_power_events.htm

12. 6TH Anniversary TBLI Conference
11th - 12th November, 2004, Amsterdam, Netherlands

Brooklyn Bridge celebrates the 6th anniversary of the TBLI Conference! The
event will take place in Amsterdam, at the Beurs van Berlage, on the 11th
and 12th of November 2004. What started in 1999 as a small event has grown
into the world's largest conference on investments that provide a
financial, social and environmental return (Triple Bottom Line Investing),
covering the fields of public equity, private equity, debt financing,
microfinancing, bonds, etc.

The focus of the 2004 TBLI Conference is TBLI and Growth. How is TBLI
growing and what are the drivers? What are the risks and opportunities?
This year, we are giving special attention in the program to the SRI-issues
for asset management, banking, and insurance industries covering topics
such as: the Equator Principals and environmental risk assessment;
financial sector initiatives dealing with climate change, and a round-table
discussion panel involving the top pension fund leaders in Europe that are
opening up their large funds to SRI.

There will be more cutting-edge research on Socially Responsible Investment
(SRI) and Fund Performance, measurements on the social and environmental
Return on Investment (ROI) for financial capital and the outcomes of
foundations and NGO's, Managers from world's leading sustainable private
equity funds discussing their experiences and all current developments on
Carbon Finance, Corporate Governance, FDI, Microfinance, Public Policy and
SRI.
We will have Open Thematic Salons to allow attendees to further explore
topics, network, and stimulate discussion about TBLI.

Some of the companies represented are: ABNAmro, Global Environment Fund,
IFC, WestLB, Norwegian Petroleum Fund, French Pension Scheme, Nordea, EU DG
Environment, Lombard Odier, Calvert, Bank Sarassin, Insight Investments,
Asahi Life Asset Management, Dexia, Robeco, Hypovereinsbank, Goldman Sachs
Asset Management, Allizanz, BNP Paribas Asset Management, MunichRe, Mercer
Investment Consultants.

For more information visit:
www.tbli.org/index.html

NEWS

13. Bank of America Sets New Industry Best Practices for Climate Change and
Forest Policies

"Bank of America and Rainforest Action Network announced on May 17th that
Bank of America will lead the financial services industry by setting new
industry best practices for the environment.  The bank will enhance its
environmental programs with climate change and forest policies that take
significant new steps in the reduction of greenhouse gas emissions,
protection of intact forest ecosystems and transparent public reporting to
all stakeholders."
www.bankofamerica.com/newsroom/presskits/view.cfm?page=climateandforests

14. Shareowner Resolution Withdrawn as JP Morgan Chase Addresses
Environmental Risks

"A group of socially responsible investment advocates withdrew a shareowner
resolution from JP Morgan Chase when the company established an office of
environmental affairs."
www.socialfunds.com/news/article.cgi/article1422.html

15. Northern Rock Creates Working Groups to Implement its Social &
Environmental Policies

"Northern Rock, a UK-based mortgage bank, has set up working groups of
senior staff to help implement its Community Report 2003. It reveals that
the groups created look at ways of implementing the policy in areas such as
governance and accountability, human rights, community involvement and the
environment. Each group will set targets covering the next two to three
years, as well as longer-term objectives. Under the terms of its conversion
from a building society to a bank in 1997, Northern Rock gives five per
cent of its annual pre-tax profits to good causes."
www.northernrock.co.uk/html/investor/community2003/index.asp

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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

Editor:
Henry Thomas henry.thomas@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