1. ENVIRONMENTAL AND SOCIAL RISK
MANAGEMENT FOR SUSTAINABLE
CITIES
Paris, 14 February 2012
www.unepfi.org

2. Context
Investing in sustainable cities: yes, but how?
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3. Concept
Environmental and Social Risk Management:
a tool for sustainable development ... And
sustainable cities.
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4. Changing Finance to Finance Change
Unsustainable
Business as usual economic activity
BANK LENDING
Environmental and
Social Risk Gradual shift to
Management, sustainable
Engagement, and economic activity
Financing
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5. Risk? What Risk?
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6. What a banker fears
– Diminished pay-back capacity
– Devaluation of guarantees/collateral
– Legal responsibility
– Damage to image and reputation
– Diminished shareholder value
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7. …and how those fears relate to cities
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8. • Project comes to a stand-still [pay-back capacity]
• Contaminated land [devalued collateral]
• Legal action by affected communities [legal risk]
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9. Início de tour du monde
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10. Início de tour du monde
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11. 2003:
Creatio
n of B
anktr
ack
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12. You are being watched
• NGOs
• Import/export markets
• Multilateral Banks
• Regulators
• Investors
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13. Clean air
Clean
water
Externalities
A thing
Stable climate of the
Cultural past?
Clean Heritage
environment 13

14. In short…
Protected environnement and society
=
Protected banks.
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15. How s a bank to cover itself?
20 years of experimentation and mobilisation in
environmental and social risk management
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16. We, Members of the Financial Services Sector
We members of the financial services industry recognize that
sustainable development depends upon a positive interaction
between economic and social development, and
environmental protection, to balance the interests of this and
future generations. We further recognize that sustainable
development is the collective responsibility of government,
business, and individuals. We are committed to working
cooperatively with these sectors within the framework of
market mechanisms toward common environmental goals.
UNEP Statement by Financial Institutions on the
Environment & Sustainable Development
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17. 2005: UNEP FI launches training ac8vi8es
• More than 2000 risk analysts and
other banking professionals trained
by UNEP FI since 2005
• Workshops and online courses
• Available in English, Spanish, French and
Chinese (coming soon)
• UNEP FI has a team of seven experienced
facilitators in sustainable finance
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18. Início de tour du monde
World Bank HQ, Washington D.C.
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19.  Launched in 2003, the Equator Principles provide for the adoption of principles
of social management to finance new projects. Applies to project finance.
 Any new project with total cost equal to or above U.S. $ 10 million should be
framed in the rules of the World Bank / IFC ("Performance Standards")
 Voluntary Agreement

20. 5 key steps
– Identification
– Categorisation
– Analysis
– Mitigation
– Monitoring
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21. f When managing risk becomes an
opportunitytour du monde
f Início de
f
f
f
f
f
f
f
Companhia Siderúrgica Nacional (CSN), 2002
e 21

22. Contact
Careen Abb
Banking Commission
UNEP Finance Initiative
careen.abb@unep.org
UNEP Finance Initiative
www.unepfi.org
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