Canadian Members of UNEP FI Sign Statement of Support to the Final Report of the Expert Panel on Sustainable Finance

6 December 2019

Several Canadian members of the United Nations Environment Programme Finance Initiative support the final recommendations of Canada’s Expert Panel on Sustainable Finance – Mobilizing Finance for Sustainable Growth. A statement that affirms financial institutions commitment to support the transition to a sustainable economy.

The membership-led effort convened twelve organizations to affirm their commitment to mobilize their financial expertise to accelerate the transition. The commitment reflects the central role the financial industry holds in supporting the critical shift to a low-carbon economy.

Chief Executive Officers’ endorsement of the statement of support attests to the fact that climate change is a defining issue that presents several challenges and opportunities, which collectively can be better addressed. The final report of the Expert Panel offers valuable perspectives and an actionable roadmap to help move the economy onto a sustainable trajectory.

The final report provided fifteen recommendations outlining opportunities for sustainable growth that fall under three pillars; The Opportunity, Foundations for Market Scale, and Financial Products and Markets for Sustainable Growth.

In signing the statement, financial institutions express their commitment in support of Canada to achieve its long-term goals and ambitions and align finance with the real economy for sustainable economic growth through sustainable products, markets and growth. Members will work together and with other stakeholders to address societal challenges and ensure long-term prosperity for Canadians.

Statement of Support to the Final Report of the Expert Panel on Sustainable Finance

UNEP FI AT COP25: Join the New Climate Finance Leadership Official Side Event

 

New Climate Finance Leadership: An official COP25 side event

 

WATCH LIVE LINK HERE: https://www.youtube.com/user/bbva/live

 

When: 12th December 10 am -12 pm

Where: Diálogos Room, Green Zone of COP25, Madrid

 

Join a high-level panel discussion exploring the role of financial institutions in climate leadership, the new climate ambition and commitments by financial institutions. The event will ask how to achieve virtuous cycles between the finance sector, the real economy and public policy-making?

Confirmed speakers:

  • Nadia Calviño, Spanish Minister of the Economy and Business
  • Margarita Delgado, Deputy Governor, Central Bank of Spain
  • Inger Andersen, Executive Director, UNEP
  • Carlos Torres Vila, Chairman, BBVA
  • José Antonio Álvarez, Chief Executive Officer, Santander

Send a registration request by email to climate@unepfi.org by December 9th indicating: “New Climate Finance Leadership Session” – Activity 1041 Name, surname, title, institution

IMPORTANT: to be granted access to IFEMA, the venue hosting the COP25 World Climate Summit, you must first create a user id at IFEMA and choose the date you wish to access. Register here.

To find out if you can get accreditation through UNEP FI email climate@unepfi.org. For more information on UNEP FI’s other events at COP is available here.

 

Find out more about COP25 here.

Seminar on Principles for Sustainable Insurance (PSI)

10 December 2019 | Santiago de Chile


(SPANISH)

Un Seminario sobre los Principios de Seguros Sostenibles (PSI) tuvo lugar el 10 de diciembre en Santiago de Chile. Este evento fue organizado por UNEP FI,  CAF – Banco de Desarrollo de América Latina, la Universidad Finis Terrae (UFT) y Fundación Chile.

Butch Bacani, Líder mundial de los Principios de Seguros Sostenibles (PSI) de ONU Ambiente, está por la primera vez en Chile para presentar los PSI. Este evento está dirigido al personal de las instituciones financieras (aseguradoras, inversores institucionales y bancos), reguladores financieros, así como todos aquellos representantes del sector gubernamental, instituciones académicas, ONGs, empresas y consultorías cuyas actividades estén vinculadas con las Finanzas Sostenibles y tengan interés en conocer sobre los PSI.

Agenda tentativa

Lugar: Fundación Chile. Av. Parque Antonio Rabat Sur 6165, Vitacura. Sala Embarque.

(ENGLISH)

A Seminar on Principles for Sustainable Insurance (PSI) took place on December 10th in Santiago de Chile. This event is organized by UNEP FI, CAF – Development Bank of Latin America, Finis Terrae University (UFT), and Fundación Chile.

Butch Bacani, Programme Leader of the UN Environment Principles for Sustainable Insurance (PSI), is for the first time in Chile to present the PSI. This event is aimed at staff of financial institutions (insurance companies, institutional investors, banks), financial regulators, as well as representatives of the government sector, academic institutions, NGOs, companies and consultancy firms whose activities are linked to sustainable finance and are interested in finding out about UNEP FI’s work with the insurance industry.

PRESENTACIÓN

Organizadores/Organisers:

 

 

 

Para más información, contacte a:

Carolina Yazmín López
carolina.lopez@un.org

Changing Course: Real Estate – TCFD pilot project report and investor guide to scenario-based climate risk assessment in Real Estate Portfolios

Published November 2019

Twelve institutional investors from eight countries, convened by UNEP FI and supported by Carbon Delta, have worked throughout 2018–2019 to analyse, evaluate, and test, state-of-the- art methodologies to enable 1.5°C, 2°C, and 3°C scenario-based analysis of their direct property investment portfolios in line with the recommendations of the FSB’s Task Force on Climate-related Financial Disclosures (TCFD). The outputs and conclusions of this Pilot are captured in this report and aim to enhance the understanding and ease adoption of the TCFD recommendations by real estate investors across the wider investment industry.

The report can be downloaded here.

This report for real estate investments is a follow-on to the May 2019 Changing Course, also published by UNEP FI as a capstone report to an investors’ pilot to apply the TCFD recommendations focused on listed equities and corporate debt.

Unwrapping the risks of plastic pollution to the insurance industry

Published

Plastic is an increasingly high-profile threat to our climate, ocean, wildlife and human health as it becomes widespread both in the ocean and on land, where it is impacting our ecosystems and threatening lives and human health. Plastics also make a direct contribution to climate change: their energy-intensive manufacture from fossil fuels, recycling and incineration result in high carbon emissions.

This report shows that plastic pollution risks can affect insurance and investment portfolios in the form of physical, transition, liability and reputational risks. These range from threats to human health to evolving liability claims connected to marine litter and plastic pollution should be closely monitored by insurers in coming years.

The study identifies how risks related to plastic pollution play out across insurance lines and asset classes in which insurers invest. It argues that insurers should take an active role in addressing the risks related to plastic pollution and in contributing to global efforts to reduce it. In particular, insurers can consider the following approaches:

  • Introduce policies to reduce plastic
  • Understand, prevent and reduce plastic pollution
  • Insure risks associated with plastic pollution
  • Support alternatives to plastic
  • Support wider efforts to reduce plastic pollution

Download the report:

Name
Organisation
Email address
By submitting this form, I confirm that UNEP FI may use my data to contact me about this report and any other similar report or initiative.
UNEP FI will not pass your information on to a third party.

Find out more about the work that UNEP FI does with the insurance industry via its Principles for Sustainable Insurance Initiative and read related documents here.

Axa, Aviva, CNP, FRR join UN-convened Asset Owner Alliance pushing for net-zero portfolios by 2050

27 November 2019

AXA, Aviva, CNP Assurances and Fonds de Réserve pour les Retraites (FRR) announced today they are joining the UN-convened Net-Zero Asset Owner Alliance, raising total assets under management targeting carbon neutrality by 2050 to more than $3.9 trillion.

The Alliance is a group of the world’s largest pension funds and insurers committing to fully decarbonise their portfolios to avoid a global temperature increase above 1.5°C. Launched in September at the Climate Action Summit, it was initiated by Allianz, Caisse des Dépôts (CDC), La Caisse de dépôt et placement du Québec (CDPQ), Folksam Group, PensionDanmark, and Swiss Re, who were joined by Alecta, AMF, CalPERS, Nordea Life and Pension, Storebrand and Zurich as founding members.

Eric Usher, UNEP FI Head said: “The addition of four significant asset owners signals growing commitment by investors to align their portfolios with the ambitious 1.5°C target that goes beyond even the level of ambition reflected in the Paris Agreement. Concerted investor action led by the Alliance signals to financial markets that making entire portfolios net zero carbon is now clearly on the agenda.”

Now 16-strong, the Alliance actively encourages additional investors to join by committing to a net-zero portfolio by 2050 in support of a global economy that delivers emissions reductions in line with scientifically determined targets.

This is critical in light of recent evidence from UN Environment Programme’s Emissions Gap Report, published yesterday, which found collective ambition must increase more than fivefold over current levels to deliver the cuts needed over the next decade to achieve the 1.5°C goal. The Intergovernmental Panel on Climate Change (IPCC) has warned that going beyond 1.5°C will increase the frequency and intensity of climate impacts, such as the heatwaves and storms witnessed across the globe in the last few years. In the report, UNEP said the world must deliver deep cuts to emissions – over 7 per cent each year for the next decade.

Convener of Mission 2020 Christiana Figueres, former Executive Secretary of the UN Framework Convention on Climate Change (UNFCC), said: “Reaching net zero emissions by 2050 is a global imperative made clear by science, with huge benefits for all of society. “We are all better off when finance is flowing towards a liveable future, and today’s announcement makes clear that investors are committed to that pathway. That the world’s asset owners are collaborating unequivocally to limit warming to 1.5°C should be a real boost for all governments preparing to step up their own commitments under Paris in 2020,” she added.

 

PRI CEO Fiona Reynolds said: “Asset Owners have a key role to play in driving much needed ambition to address the climate emergency. In joining the Alliance, the new members stand alongside founding asset owners in committing to achieve carbon neutral portfolios by 2050. We hope that the leadership shown by members of the Alliance will compel other investors to act urgently to align their portfolios with a 1.5°C scenario and to play their role in meeting the Paris Agreement.”

By joining the Alliance, members hold themselves accountable on progress by setting and publicly reporting on intermediate targets in line with the Paris Agreement. The Alliance has already begun the process of establishing a work plan for 2020.

Members will ramp up engagement with the companies in which they are invested, working together with initiatives such as the UN Global Compact Business Ambition for 1.5°C, the Investor Agenda, the Science Based Targets initiative and Climate Action 100+.

Convened by UNEP’s Finance Initiative and the Principles for Responsible Investment (PRI), the Alliance is supported by WWF and is part of the Mission 2020 campaign, an initiative led by Ms. Figueres, former Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC).

 

Comments from the new Alliance members:

 

Maurice Tulloch, Aviva CEO: “Contributing to a more sustainable world is at the heart of our purpose. We’re investing with sustainability in mind, are engaging with companies through active stewardship and have been lowering our footprint for some time now. We want to accelerate our efforts. It makes good business sense, and it matters to our customers, partners, and the communities we work in. We will continue to make positive changes and are therefore proud to join the Net-Zero Asset Owner Alliance.”

Thomas Buberl, AXA Group CEO: “Our target is to contain the ‘warming potential’ of our investments to 1.5°C by 2050. But because we operate in a business environment which is not ‘Paris-aligned’, our investment universe is far above 1.5°C today. This is why we undertake this commitment with the expectation that governments and the actors of the ‘real economy’ will also take and implement meaningful climate commitments which we are keen to support. That is also why we have decided to join the Net-Zero Asset Owner Alliance, which is precisely designed to push this agenda. As part of this Alliance, we are notably looking forward to contributing to the development of common metrics and methodologies”

Yves Chevalier, Executive Director, FRR: “FRR is proud to be part of this asset owners’ initiative, which is aligned with our Responsible Investment Strategy. Given the urgency in climate issues, this strategy ushers in a new phase that will drive ambition further by increasing accountability at all portfolio levels and involving the entire financial management ecosystem to underline the leadership role assumed by the FRR over many years. Through this initiative, FRR will work with its peers in a realistic and efficient approach.”

Antoine Lissowski, Chief Executive Officer, CNP Assurances: “We are pleased to contribute, together with the other members of the Alliance and under the aegis of the United Nations, to this remarkable initiative to limit global warming and meet the objectives of the Paris Agreement. We want to work with all French asset-owners to create a real dynamic and achieve carbon neutrality in our portfolios by 2050.”

 

For more information on the UN-convened Net-zero Asset Owner Alliance visit the website here.

 

For press enquiries, please contact the following:

Oliver Wagg

oliver.wagg@UN.org

Mobile: +44 (0) 7885 377264

Sally Wootton

sally.wootton@UN.org

Tel: +41 (0)22 917 8591
Mobile: +41 (0)79 855 5355

Groundbreaking work to assess real-world sustainability impact for investors: A Legal Framework for Impact

On 27 November 2019, United Nations Environment Programme Finance Initiative (UNEP FI), the Principles for Responsible Investment (PRI) and The Generation Foundation announced the launch of pioneering research with global law firm Freshfields Bruckhaus Deringer LLP (‘Freshfields’) to analyse whether and how legal frameworks allow for – and incentivise – investors to consider sustainability impact across major markets.

The Paris Agreement and UN Sustainable Development Goals (SDGs) have ramped up investor awareness about global sustainability challenges, with investors increasingly thinking about sustainability impact, such as decarbonisation targets.

The research – A Legal Framework for Impact – will explore existing legal frameworks to analyse the extent to which asset owners can prioritise sustainability impact, including where this may lead to a negative effect on investment return. In the case of investment managers, it will explore how they can or should address sustainability impact where their investment mandate is silent on sustainability impact.

While there are emerging pockets of excellence in technical understanding, fundamental legal questions remain, for example: on what legal grounds can an investor set objectives for increasing the positive and/or reducing negative sustainability outcomes within its portfolio? And, where an investor is required to disclose the sustainability impact of its investment activity, can this create a liability for the investor if the impacts are negative?

This research will also help to establish the extent to which legal frameworks allow and incentivise investors to take wider society and quality of life in retirement into consideration, and as such, the extent to which impact may be incorporated into investment decision-making.

Jurisdictions covered will be the EU, Australia, Brazil, Canada, China, France, Japan, South Africa, Netherlands, UK and US. The project is supported by a reference group of experts in the law, responsible investment and sustainability impact.

“Investing for sustainability impact is the new frontier for responsible investment, with a stronger focus on how investment decisions have real world impact on ESG factors over financial materiality. This is an exciting and new area of work for PRI which will help investors across a number of markets ensure sustainability is a fundamental part of their investment practices. We’re delighted to be partnering with UNEP FI, Generation Foundation and Freshfields on this important work,” PRI CEO Fiona Reynolds said.

“This project will provide recommendations that have not previously been formulated. It presents a unique opportunity for investors to better align economies and industries in transition with the climate targets and the UN Sustainable Development Goals. We believe this project will be key to influencing investor practice such that, within the next decade, assessing and managing the contribution of investment decisions to sustainability impacts becomes a core part of investment activity,” UNEP FI Head Eric Usher said.

“Generation Foundation is pleased to support the work of PRI and UNEP FI. The challenges facing the world today are extraordinary and unprecedented. Climate change, poverty and rising inequality are increasingly ubiquitous. If the finance industry is to be part of the solution, accounting for the impact of investment decisions on sustainability must be a core part of investment activity. This work will highlight the path to the transformational change needed to meet the Paris Agreement and Sustainable Development Goals,” Senior Partner of Generation Investment Management David Blood said.

“The sheer number of regulations in hard and soft law across these eleven jurisdictions that may restrict, guide or influence asset owners and asset managers in their investment activities make it difficult to navigate the legal landscape to invest for sustainability impact. This is why this project is so welcome,” General Counsel for AP2 and member of the Reference Group for the project Martin Jonasson said.

“This is an important initiative and one which has not yet been undertaken as comprehensively as this project intends to do. Questions around legal and regulatory impediments to investing for sustainability impact will highlight actions to be taken by asset owners, their agents and also policy-makers. It comes at a time when a new harmonized regulatory framework is about to be realized across the laws impacting EU asset managers, their products, services and investment decision making processes,” Managing Director of Goldman Sachs Asset Management and member of the Reference Group for the project Daniel Jackson said.

“Climate change, waste, resource scarcity and inequality are placing a significant and growing strain on societies around the world. The need to address them is urgent, and effective allocation of investment is a key way in which individuals and businesses can do so. We are delighted to have been given the opportunity to work on this exciting project and to build on our 2005 report,” Partner at Freshfields David Rouch said.

 

To learn more, visit A Legal Framework For Impact project website.

For questions or inquiries, contact Elodie Feller (elodie.feller@un.org), Investment Programme Lead, UNEP FI.

The 1.5°C goal is on the brink of becoming impossible: Get the numbers on global emissions in latest UNEP Report

26 November 2019

 

UN Environment Programme’s Emission Gap Report, published today, finds that collective ambition must increase more than fivefold over current levels to deliver the cuts needed over the next decade to achieve the 1.5°C goal. The Intergovernmental Panel on Climate Change (IPCC) has warned that going beyond 1.5°C will increase the frequency and intensity of climate impacts, such as the heatwaves and storms witnessed across the globe in the last few years. In the report, UNEP said the world must deliver deep cuts to emissions – over 7 per cent each year for the next decade.

Each year, the UN Environment Programme (UNEP) launches the Emissions Gap Report to assess the gap between anticipated emissions in 2030 and levels consistent with the 1.5 °C and 2 °C targets of the Paris Agreement. This year, the Emissions Gap report 2019 warns that unless global greenhouse gas emissions fall by 7.6% per year during the next decade, the world will miss the opportunity to reach the 1.5 °C temperature goal.

The report presents different climate scenarios, from no climate policies to full implementation of climate policies on all national commitments agreed during the Paris Agreement. For any major change to occur, rapid societal and economic transformations need to take place in the next decade to compensate for the lack of action in the past. The annual report also features ways of bridging the emissions gap. This year, the report specifically focused on different means of energy transitions particularly in the power, transport and building sector. Renewables and energy efficiency are key for an energy transition for instance, electrification of heating in the building sector could reduce CO2 emissions by 72% by 2050.

Despite the alarming findings, climate change can still be limited to 1.5 °C, the report says, but doing so will require strong commitment strategies and efforts from every nation. There is increased understanding of the additional benefits of climate action – such as clean air and a boost to the Sustainable Development Goals. There are many ambitious efforts from governments, cities, businesses and investors. Solutions, and the pressure and will to implement them, are abundant.

Read the full Emissions Gap Report here.

View a short video here.

Training Workshop on Climate Change & The Task Force on Climate Related Financial Disclosures (TCFD)

11 December 2019 | Santiago, Chile

(SPANISH)

Un taller de capacitación sobre “Cambio climático y el Grupo de trabajo sobre divulgaciones financieras relacionadas con el clima (TCFD)” tendrá lugar el 11 de diciembre en Santiago de Chile, la semana en que la COP 25 presidida por Chile tendrá lugar en Madrid (España). Este taller es organizado por UNEP FI, la CAF – Banco de Desarrollo de América Latina y la Universidad Finis Terrae.

El objetivo del evento es capacitar al personal de las instituciones financieras (bancos, inversores y aseguradoras) a través de herramientas que les permitan gestionar los riesgos climáticos tanto físicos como de transición potenciales en sus carteras de negocios y considerar oportunidades.

Se presentarán en primicia los primeros resultados obtenidos en la encuesta regional “Prácticas en Análisis de Riesgos y Oportunidades asociadas al Cambio Climático en el Sistema Bancario de Latinoamérica y el Caribe”.

En la primera parte de la capacitación, se presentará el desafío climático para el sector financiero y sus principales actores, así como los riesgos climáticos físicos y su gestión en los principales sectores económicos, metodología para la evaluación de riesgos físicos y sus oportunidades, y análisis de un caso práctico en el sector agropecuario.

En la segunda parte, se presentará la evaluación de riesgos climáticos de transición, con recomendaciones generales, uso de análisis de escenarios, herramientas y métricas, y casos prácticos.

Y por último se procederá a un espacio de preguntas.

Lugar: Hotel Ritz, las Condes.

Agenda tentativa

Cupos limitados. Entrada liberada.

Formulario de Evaluación

Organizadores:

 

 

 

 

Para más información, contacte a:

Carolina Yazmín López
carolina.lopez@un.org

VIDEO: Fiduciary Duty in the 21st Century – From a Legal Case to Regulatory Clarification Around ESG

25 November 2019

During the 21st century there has been a marked growth in responsible investment regulation and policy around the globe. Investors that fail to incorporate environmental, social and governance (ESG) issues are failing their fiduciary duties and are increasingly likely to be subject to legal challenge.

Hear from governments, regulators, and investors how they are supporting the updated conception of fiduciary duty in our latest video.

Fiduciary Duty in the 21st Century, a collaboration between UNEP FI and the PRI and with generous financial support from The Generation Foundation, contributes an extensive evidence base to end the debate on whether fiduciary duty is a legitimate barrier to the integration of environmental, social and governance (ESG) issues in investment practice and decision-making.

While the conceptual debate around whether ESG issues are a requirement of investor duties and obligations is now over, there are several areas where further work is required.

To learn more about Fiduciary Duty in the 21st Century, please visit the UNEP FI Fiduciary Duty webpage.

Sustainable Blue Economy Finance Workshop

20 November 2019 | Paris, France

UN Environment Programme Finance Initiative and the European Commission are organising a Sustainable Blue Economy Finance Workshop alongside the Sustainable Ocean Summit, which is themed:  Investing in Ocean Future: Finance and Innovation for the Blue Economy. The workshop will explore actions for the finance sector to accelerate uptake of finance-related policies, practices, financial instruments, opportunities and initiatives to contribute to a sustainable blue economy. Participants will gain insights into examples of how financial institutions are integrating ocean sustainability into market practice, and emerging opportunities to scale up action.

The workshop will inform plans under the Sustainable Blue Economy Finance Initiative, hosted by UNEP FI, to support implementation of the Sustainable Blue Economy Principles developed by the European Commission, WWF, European Investment Bank and Prince of Wales’s International Sustainability Unit. The workshop will highlight actions that financial institutions and other key stakeholders are taking to contribute to financing a sustainable blue economy. Presentations are expected to be relevant to implementation of 3 of the Sustainable Blue Economy Principles.

Time: 17.30-19.00, 20 November

Location: Salons Lumière et Montgolfier, Hôtel de l’Industrie, 4 Place Saint-Germain-des-Prés, 75006, Paris

 Speakers 

  • Justin Mundy, Senior Advisor, Willis Towers Watson
  • Chip Cunliffe, Director, Sustainable Development, AXA XL
  • Matt McLuckie, Director of Research, Planet Tracker
  • Lionel Mok, Policy Manager, Climate Bonds Initiative
  • Tenke Zoltani, Founder, Better Finance and Development Finance Advisor, UNDP
  • Dennis Fritsch, PhD, Researcher, Responsible Investor
  • Magdalena Mihordea, Unit Blue Economy Sectors, Aquaculture and Maritime Spatial Planning, DG Maritime Affairs and Fisheries, European Commission

Co-moderators:

  • Liesel van Ast, Acting Ecosystems, Biodiversity and Blue Economy Lead, UNEP Finance Initiative
  • Louise Heaps, Head of Blue Economy, WWF

 Cocktail reception | 19.00-21.30  

Speakers and workshop participants are invited to join a cocktail reception hosted by the European Commission at Les Deux Magots (right next to the SOS conference venue).

For more information visit Sustainable Ocean Summit Program, or send an email for the attention of Liesel van Ast.

 

 

 

 

 

 

 

Symposium – ECO-DRR and Innovative Finance & Insurance

4 December 2019 | Tokyo, Japan

Date and Time: 4 Dec 2019  14:00 – 17:45
Venue: 3-9 Kanda Surugadai Chiyoda-ku Tokyo Mitsui Sumitomo Insurance Surugadai Building 1F

As an opportunity to raise awareness of finance schemes for a nature-based resilient society on the back of increasingly serious natural disasters in Japan, an inaugural symposium was co-convened by the MS&AD Insurance Group Holdings, Inc. and the National Institutes for the Humanities Research Project ”Change of Local Communities and Reconstruction of Community Cultures after Disasters in Japanese Archipelago”. UNEP FI supported the event together with Future Earth Japan Hub.

As examples of cutting-edge Eco-DRR finance, two innovative financial schemes, a Coral Reef Insurance in Mexico and a Forest Resilience Bond in Northern California were introduced by Jeffrey R. Bohn, Chief Research and Innovation Officer of Swiss Re Institute, and Zach Knight, Co-Founder and Managing Partner of Blue Forest Conservation respectively.

Distinguished expert speakers and participants agreed that not only post-disaster action but also disaster prevention and risk reduction action and financial mobilisation need to be scaled up and collaboration with multiple stakeholders are key to move things forward. 

Discussion on this important topic has just started in Japan.

photo credit – MS&AD Insurance Group

Agenda and Programme in Japanese and in English

Fiduciary Duty in the 21st Century Final Report Launch – London

22 November 2019 | London, 15:00 GMT

Fiduciary-Duty-London

Date: Friday, 22 November 2019
Time: 15:00 GMT
Location: The Generation Foundation, London, 20 Air street.

Join UNEP FI and the PRI for the London final report launch of the Fiduciary Duty in the 21st Century programme on Friday, November 22, at 1500 GMT, hosted by The Generation Foundation.

The Fiduciary Duty in the 21st Century programme was launched in 2016 to end the debate on whether fiduciary duty is a legitimate barrier to the integration of environmental, social and governance (ESG) issues in investment practice and decision-making. Over the past four years, the programme has produced extensive evidence on the subject and has advocated for global policy reform to clarify fiduciaries’ duties to their beneficiaries.

Most investors and policy makers have accepted our central conclusion, that failure to consider long-term investment value drivers, which include ESG issues, in investment practice is a failure of fiduciary duty. Progress has taken hold in most markets – including the EU, UK, Canada, and China – with the exception to this trend in the US.

Speakers include:
David Blood, Senior Partner, Generation Investment Management
David Rouch, Partner, Freshfields Brukhaus Derringer
Elodie Feller, Lead, Investment Programme, UNEP FI
Nico Aspinall, Chief Investment Officer, The People’s Pension
Catherine Howarth, Chief Executive, ShareAction
Will Martindale, Director of Policy and Research, PRI

The event will conclude with a networking reception.

If you have any questions, please contact Elodie Feller.

Express your interest here.

An updated look at Fiduciary Duty in the 21st Century: incorporation of ESG issues required and increasingly clarified in regulation

22 October 2019

UNEP FI and the PRI provide an updated look at Fiduciary duty in the 21st Century with the release of its final report. In 2014, the PRI, UNEP FI and additional UN partners identified the misinterpretation of fiduciary duties as the primary barrier to environmental, social and governance (ESG) incorporation in investment practice. The Fiduciary Duty in the 21st Century programme sought to “end the debate about whether fiduciary duty is a legitimate barrier to ESG incorporation.”

As the project’s final report demonstrates, the programme has produced extensive evidence showing the critical importance of incorporating ESG standards into regulatory conceptions of fiduciary duty. The programme has also advocated for global policy reform to clarify fiduciaries’ duties to their beneficiaries.  Most markets around the world have seen progress on the incorporation of ESG issues into expectations around fiduciary duty – including the EU, UK, Canada and China – with the exception of the U.S.

Today, the fiduciary duties of investors require them to:

  • Incorporate environmental, social and governance (ESG) issues into investment analysis and decision-making processes, consistent with their investment time horizons.
  • Encourage high standards of ESG performance in the companies or other entities in which they invest.
  • Understand and incorporate beneficiaries’ and savers’ sustainability-related preferences.
  • Report on how they have implemented these commitments.

There are three main reasons why the fiduciary duties of loyalty and prudence require the incorporation of ESG issues:

  1. ESG incorporation is an investment norm,
  2. ESG issues are financially material,
  3. Policy and regulatory frameworks are changing to require ESG incorporation.

Investors that fail to incorporate ESG issues are failing their fiduciary duties and are increasingly likely to be subject to legal challenge.

These changes in investors’ duties and in financial system regulation are not occurring in a vacuum. Policymakers, regulators and governments recognise that issues such as climate change and sustainable development represent systemic risks and opportunities that require explicit and targeted interventions. Many countries have started to implement the Paris Climate Agreement and the Sustainable Development Goals in national policy and regulations.

Some governments have formally incorporated sustainability in the mandates of their financial regulators. This integration of finance into sustainability policy, and the integration of sustainability considerations into finance policy, suggest that we are moving towards a much more integrated and aligned approach to policy across these two areas.

While the conceptual debate around whether ESG issues are a requirement of investor duties and obligations is now over, the report identifies several areas where further work is required.

It is encouraging that many regulators and investors are making progress, but time is not on our side. We need comprehensive action – from everyone in the investment chain – to move towards a more sustainable economy, at stake is a viable and prosperous world for all.

 

Read the full report here.

Fiduciary Duty in the 21st Century Final Report

Published

A new report from UNEP FI and the PRI launched in New York on Monday 21 October 2019 at an investor roundtable. This latest report, which affirms that fiduciary duty requires the incorporation of environmental, social and governance (ESG) issues into investment analysis and decision-making processes, is the final installment of the four-year Fiduciary Duty in the 21st Century programme.

The Fiduciary Duty in the 21st Century programme was launched in 2016. Over the past four years, the programme has produced extensive evidence showing the critical importance of incorporating ESG standards into regulatory conceptions of fiduciary duty. Through the programme, UNEP FI and the PRI have advocated for global policy reform to clarify fiduciaries’ duties to their beneficiaries.

The final report includes discussion of The origins of fiduciary duty, The new policy context, and Modern fiduciary duty. The report also provides detailed country-specific analysis of current policy and regulatory landscape and recommendations for reform in each leading global economy.

Today, the fiduciary duties of investors require them to:

  • Incorporate environmental, social and governance (ESG) issues into investment analysis and decision-making processes, consistent with their investment time horizons.
  • Encourage high standards of ESG performance in the companies or other entities in which they invest.
  • Understand and incorporate beneficiaries’ and savers’ sustainability-related preferences.
  • Report on how they have implemented these commitments.

While the conceptual debate around whether ESG issues are a requirement of investor duties and obligations is now over, the report identifies several areas where further work is required.

Download the full report here.

Learn more about the Fiduciary Duty in the 21st Century programme here.

G20 Energy Efficiency Finance and Investment 2019 Stocktake Report

Published October 2019

Banks, investors, insurers and regulators are increasingly analyzing and adapting their financial strategies taking into account the risks and opportunities presented by the clean energy transition. Investments in renewable energy are currently a standard practice for most financial institutions. Investments in energy efficiency are also growing, yet their transaction size is small in comparison. Nevertheless, energy efficiency cuts across core asset classes and the most important components of global economic output and wealth. Modernizing the financial system to better collect and price energy efficiency data is also a key contribution to the resilience of the entire financial system.

At the G20 Global Summit on Financing Energy Efficiency, Innovation and Clean Technology held in June 2019 in Tokyo, Japan more than 140 senior executives of financial institutions, G20 policymakers and technology experts gathered to discuss scaling up the energy efficiency investment market and to take stock of the leading practices of G20 economies. It set a milestone for the implementation of the 2017 G20 Energy Efficiency Investment Toolkit and was a useful review point for the progress made by the task group and its member economies.

This stocktake report is based on participants’ insights, contributions and discussions and supplements these with additional findings from the numerous bilateral engagements the task
group conducted in the lead-up to the 2019 G20 Summit.

Download the report here.

Find out more about UNEP FI’s work with financial institutions on energy efficiency here.

Taking stock of energy efficiency finance and investment by the G20: new report from UNEP FI and IPEEC presents leading practice

Building on the outcomes of the G20 Global Summit on Financing Energy Efficiency, Innovation and Clean Technology which was held in Tokyo on June 12 2019, the G20 Energy Efficiency Finance Task Group (G20 EEFTG) has collated leading practices by financial institutions and participating member countries in scaling up the energy efficiency investment market to the trillions of US dollars required.

Innovation in business models, financing practices, data management, digitalization and technology is enabling the optimization of transport, buildings and industry as whole systems. As digitalization is disrupting energy efficiency technologies, the financial system needs to move in tandem with these real economy innovations. Increased asset-level transparency will improve the ability of the financial system to price and incentivize investment into energy efficiency and innovation by enabling a better understanding of the contribution of the energy performance of real estate and industry to improved risk profiles and financial performance.

The 2019 stock take report summarizes the results of the G20 Global Summit on Financing Energy Efficiency, Innovation and Clean Technology and identifies future elements of action as reflected in the Tokyo Declaration that emerged from the summit. It brings together insights gained from policymakers, banks, investors, public financial institutions and technology companies and places these insights in the context of wider sustainable finance trends.

In the context of Japan´s G20 presidency, the report collects for the first time a range of insights from the Asia region in addition to insights from other world regions. As efforts to align with the Paris Agreement are gathering pace, this report provides a number of findings from UNEP FI member institutions about the role of energy efficiency in driving the climate performance of the real assets held by investors and banks particularly in real estate and industry. It also places these insights in the context of wider clean technology and innovation trends and for the first time includes examples from technology companies as well, who are working alongside financial institutions as a source of innovation in business models and financing practices.

Download report here.

 

About the G20 EEFTG
The G20 Energy Efficiency Finance Task Group (EEFTG) was established in 2014 to enhance capital flows for energy efficiency investments in G20 economies. It serves as a forum for G20 policy makers to share best practices in policies and financial instruments through peer-to-peer workshops and direct engagement with members of the private and public finance community, industry and international organisations. Read more here.

UNEP FI Annual General Meeting (2019)

The UNEP FI Annual General Meeting is a unique and informative platform in which members determine the direction of the Initiative. Please note that members are required, under their terms of membership, to attend at least one AGM every two years. Further, we encourage members to attend as many AGMs as possible beyond this requirement.

Summary of the AGM

2019 Voting Results

All five voting items have been approved as follows:

  • Approval of the Summary Record from the 2018 Annual General Meeting
  • Approval of the UNEP FI Governance Framework revision proposal
  • Approval of the 2018 Financial Report
  • Approval of the proposed 2020 budget
  • Approval of the proposed 2021 membership fee

UNEP FI Governance Framework

The updated Governance Framework is found here.

2021 fee schedule

Membership Update

UNEP FI has 289 members as at end of September 2019 and welcomed 63 new members since the last AGM as below. Rüdiger Senft, Head of Sustainability, Commerzbank as a new members introduced themselves and stated that they had made a commitment to our customers that we would be walking the talk and want to be the bank that supports the transition to our customers.

ABANCA Corporación Bancaria, S.A.
ABSA Group Limited
AIB Group plc
Bank of Alexandria (ALEXBANK)
Amalgamated Bank
American Hellenic Hull Insurance Company Ltd
AMERRA Capital Management, LLC
Arion Bank
Banca Monte dei Paschi di Siena S.p.A.
Banco de Crédit Social Cooperativo (Grupo Cooperativo Cajamar)
Banco de la Produccion S.A Produbanco
Banco de la Producción, S.A
Banco Popular Dominicano
Banco Promerica de Costa Rica, S.A.
Banco Sabadell S.A
Bank J. Safra Sarasin Ltd.
Bank Julius Baer & Co. Ltd.
BANKIA SA
Banque Misr
BBVA Banco Francés S.A
Blue Oceans Capital
Caixa Econômica Federal
Caixa Geral de Depositos S.A. (CGD).
Caja Laboral Popular Coop. de Credit (LABORAL Kutxa)
CBRE Global Investors
CDG Capital
Commerzbank AG
COMPANHIA DE SEGUROS ALIANÇA DO BRASIL
Coopeservidores
Crédit Agricole S.A.
De Volksbank
Desjardins Insurance
Eagle Point Credit Management LLC
Ecology Building Society
Fana Sparebank
Fidelity Bank Ghana Limited
Gatehouse Bank Plc
Global Climate Partnership Fund
Globalance Bank AG
GLS Bank eG
Grupo Financiero BBVA Bancomer (GFBB) (BBVA Mexico)
Hua Xia Bank CO., Limited
Innovation Credit Union Ltd
Jaiz Bank Plc
Jyske Bank A/S
Lloyd’s Banking Group
Maha Agriculture Microfinance
National Bank of Canada
Natixis
Nomura Holdings, Inc.
Nykredit A/S
OP Financial Group
Poste Vita S.p.A
Sompo Seguros S.A
Sovcombank
SpareBank 1 SMN
SpareBank 1 SR-Bank
Sparebanken Vest
Suncorp Group
The Mauritius Commercial Bank Limited
Türkiye Kalkınma ve Yatırım Bankası A.Ş./Development and Investment Bank of Turkey
Willis Towers Watson

2020 workplan

The 2020 workplan was presented by the Global Steering Committee members at the in-person AGM. Reference: The integrated workplan (July 2019 to June 2020)

2020 Global Roundtable

It was announced the UNEP FI’s 16th Global Roundtable will be held in Mexico City on 13–14 October 2020.

2019 Annual General Meetings

Webinar: Thursday 7 November 2019 | 8:00-09:30 CET and 16:00-17:30 CET (two session choices)

UNEP FI holds AGMs-by-webinar a few weeks ahead of the AGMs-in-person. This allows us to discuss administrative and governance issues so that the in-person meetings can focus on more substantive and programmatic discussions. This year’s AGM-by-Webinar was held on Thursday 7 November 2019 at the following times. Please note that the two sessions were identical to cater for different time zones.

  1. 08:00-09:00 Central European Time – Chaired by Jacki Johnson, UNEP FI Global Steering Committee (GSC) member and GSC Advisor for Budgeting & Financial Reporting.
  2. 16:00-17:00 Central European Time – Chaired by Toni Ballabriga, Co-Chair of the UNEP FI Global Steering Committee.

In-person: 8:20-9:30, Friday 29 November 2019 | European Convention Center Luxembourg (ECCL), Luxembourg (held at the European Regional Roundtable)

Should you have any questions please do not hesitate to contact yuki.yasui@un.org.

 

Taller sobre Bonos Verdes, Sociales y Sostenibles: Nuevos mercados, nuevas Oportunidades

25 October 2019 | Asunción, Paraguay

La Mesa de Finanzas Sostenibles (MFS) del Paraguay, la Iniciativa Financiera de ONU Ambiente (UNEP FI) y la Comisión Nacional de Valores (CNV) del Paraguay organizaron el 1er evento en el país sobre “Bonos Verdes, Sociales y Sostenibles: Nuevos mercados, nuevas Oportunidades” en Asunción el 25 de octubre de 2019.

Este evento sin precedentes tuvo como objetivo ayudar a promover el desarrollo de un mercado local de bonos verdes/sociales/sostenibles que permita un crecimiento más ecológico y más inclusivo en Paraguay. Fue una oportunidad única para compartir experiencia sobre el desarrollo de los mercados de capitales nacionales e internacionales hacia inversiones sostenibles, permitiendo trazar el camino para que Paraguay pueda concretar la emisión de bonos verdes en el corto plazo.

El taller estuvo enfocado al sector financiero (bancos, inversionistas institucionales, y aseguradoras) como potenciales emisores e inversores de bonos verdes/sociales/sostenibles.

Además, se concretizó la adhesión de la Comisión Nacional de Valores (CNV) de Paraguay como Institución de Apoyo a UNEP FI.

PRESENTACIONES:

PROGRAMA

Fecha: 25 de octubre de 2019

Local: Hotel Sheraton Asunción  – Paraguay

 

 

Contacto:

Carolina Yazmín López
carolina.lopez@un.org

Con el apoyo de: