How Can I Sign Louisiana Banking Presentation

How do i industry sign banking louisiana presentation later

pri is absolutely delighted to be hosting this webinar to be supporting this initiative because financials and in particular banks are such an important constituency for investors and the importance of financials in in portfolios has been clear that for many years particular due to the financial crisis but increasingly due to the climate crisis because of the systemic role that banks play in the economic system and the financial system we see three ways in which investors can influence and support the principles of responsible banking the first is as owners of banks it's very likely that that investors dying to this call have significant investment holdings in many banks around the world as owners of those banks we would encourage you to use your ownership and stewardship rights to encourage those banks to be sustainable and in respect to this webinar on this topic to encourage those banks to sign up if they haven't already as the principles of responsible banking that's point one point two you are also likely to be clients of banks you may be using banks for research for a brokerage for trade execution for clearing and for many other services as well and so as clients bank with encouraging expect you to be supporting those banks to improve their sustainability footprint and again in relation to this webinar to commit to the principles of responsible banking and then the third area of leverage will influence that we think you may have over banks is that you may also be part of a bank so BM pucara by Investment Partners is part of BNP Paribas or DWS as Polidori Bank and Goldman Sachs F imagine part of Goldman Sachs and so forth and many of these asset managers already are and have been - sometimes signatories to the PRI and so in order to ensure more comprehensive and cohesive narrative around sustainability we would encourage those theorizing the trees to work at their group and bank level to ensure that the banking part of their organization signs up to the principles for responsible banking so we see those three ways as owners as clients and also often as the same entity in which PA writing the trees can influence and support the principles for responsible banking they're the kind of things that we think that the principle of responsible banking may be able to learn from the PRI and we may touch on this as part of the webinar the first is that the PRI as you will know if your be a signatory requires all of us in the trees to report to disclose their performance against the principles of responsible investment we think that this is a really important part of being a peer writing the tree and we would encourage the principles responsible banking to have similar disclosure reporting mechanisms then the second thing is that we think that the principles of local banking can learn from the pr i--'s about market incentives and so one of the reasons that we would consider the p rights have been successful is that by really engaging with asset owners with patients on sovereign wealth funds and mutual funds and other oppressor donors we've been able to apply pressure from atidim is to ensure that there are same manages those that execute their farm investment decisions to sign up to the PRI and that's helped us to ensure the PRI successful on a global level we think there is some that can be learned as we've gone to market incentives for the principles for responsible thinking too so with that introduction we are now going to turn to our panelists and I'm going to invite first to speak my colleague Simone detling Simone is the banking team leader at the UN fi which is the UN Environment Finance Initiative and really has been the intellectual describer behind these principles of responsible banking and is currently overseeing that the consultation so Simone may I ask you please do to introduce the was responsible banking and give a flavor of what what PRI signatories can learn from that and what kind of feedback you're looking for from PRI to the juries to make sure that the banking principles are a success I think many of you are familiar with unify the UN Environment Finance Initiative if not this is the partnership between the United Nations and about 240 banks insurers and investors from over 60 countries and this partnership has existed since 1992 so for 26 years now has been shaping and advancing the sustainable finance agenda worldwide pri was born out of unify two dozen years ago two principles for sustainable insurance we're and now we're looking at a market standard for banks as well maybe a quick background on how this came about and and will have been very very kind in pointing out my role but to be honest this has been very much driven by our banking membership and inlet by 28 banks who's very much a bank and market driven initiative that we have been very proud and happy to facilitate so maybe quickly on on how this came about about a year ago our 140 member banks have decided that what is really required is a global framework and standard that defines what it means to be a responsible sustainable bank that sets out a clear vision and purpose for the banking industry and that guides banks in of course defining their own role and purpose but also in developing and executing a strategy to put that into practice to create value for both shareholders and societies of course you you will appreciate that you it's very hard to develop something with 140 entities at Blum's so what we've done is we've put together a group of banks that have volunteered to lead this and let me try and get to the first slide there yeah and you see them here we call them the 28th founding banks they come from over two dozen countries really representing the banking industry globally as well as different business models these 28 banks have been leading the development of the principles for responsible banking on behalf of and in consultation with our wider banking membership and last November in Paris the CEOs of these 28 banks have launched the principles for global public consultation so they are not final they are now out for consultation until the end of May and we want to get feedback of course from the global banking industry but equally from key stakeholders such as investors who we hope will apply and benefit from these principles and as as will pointed out quite well helped us create the market incentives for banks worldwide for the banking industry to go through this transformation toward the banking industry that serves and contributes to society Falls now I think a central question is why have the member banks of unified decided to develop these principles and I think Larry Fink the CEO of Blackrock so one one amongst you has been putting this quite well in one of his letters to CEOs he says society is demanding that companies both public and private serve a social purpose to prosper over time every company must not only deliver financial performance but also show how it makes a positive contribute to society I think our banks have recognized that legitimacy and Trust indeed increasingly depend on the banking industry clearly showing its purpose its value and contribution to society and on its being seen as taken taking responsibility and they also see that the scientists expectations have already started being translated into policy and increasingly will shape regulation as we're seeing at European level with the EU action plan but also at the level of central banks with the emergence of the network for greening the financial system the ntfs so yeah it is quite clear to our banks the dein need to define and show how to create value for society but even beyond securing legitimacy and Trust in society and helping to shape the evolving policy environment a clear clear purpose and showing strategic alignment with society's goals is also seen by our bank as an increasingly crucial determinant for bank's competitiveness why because banks compete they compete for talented employees and with the millennial generation coming into the workforce is very clear that over 70% of them don't want to work for a company that doesn't have a purpose banks also compete for customers and in the years to come what we will undergo is nothing short of the largest wealth transfer in history with 24 trillion going from baby boomers to Millennials and as well shifts towards his new generation so will demands and preferences visa views banks and sustainability will be increasingly material to corporate valuations and decisive and attracting customers banks also compete for new business opportunities and that's really where the green transformation but also sustainability Sanibel development more broadly comes in if you look at the number the World Economic Forum projects it by 2020 about 5.7 trillion u.s. dollars will need to be invested annually in green infrastructure or instant young estimates that addressing the SDGs would unlock about 12 trillion and business savings and revenue annually and it's quite clear that really only banks that understand where we are had it that are able to identify the opportunities that persist that really position themselves to support the economic changes required to achieve the Paris agreement and sustainable development we'll be able to benefit from this will come out stronger and more successful and mang's are also competing for the most valuable and successful corporate clients and our banks think that being able to engage their clients on issues critical to their future success being able to anticipate their corporate clients needs and being able to accompany them in their transition towards green their business models will actually strengthen their relationships with their clients and provide a value add that distinguishes their banks from its competitors so when our banks have really done with the principles for responsible banking is they've set out a vision for the banking industry a clear purpose and responsibility to serve and contribute to society what they do with these principles is that they commit to making society's goals an integral part of their own strategic objectives and decision-making and to align their strategy portfolio and business practices with the sustainable development goals and the Paris climate agreement what they've done with these principles is really to set a global benchmark for what it means to be a responsible bank but also to provide one single framework that guides the bank and clearly defining its purpose its strategy quite importantly and how it creates value for society and shareholders and that enables them to identify opportunities and remain competitive and thrive in the the changing economy and society that we're seeing a moving so what are those six principles that our banks have put forward at the moment for consultation for your feedback the first one is alignment and that's really the principle that sets out the objective and vision of these principles aligning banks with society's goals and I really means ensuring that a bank strategy its decision-making its product and service offering or consistent with and contribute to achieving society's goals and society's goals as they've been expressed at international level in the Paris climate agreement and the sustainable development goals as well as another international and national frameworks and this is really a crucial difference from practices so far in that this means elevating sustainability contribution to society from the transaction level where we've seen it for a long time with environmental social risk management screening practices to district ejek level really elevating sustainability to the strategic level making society's goals an integral part of the bank's own strategic objectives understanding that only a bank that sustainably grows with its society and by supporting its society will be successful in the long run so how do we achieve how do banks achieve this alignment with society's goals we'll first and foremost they need to understand and work on impact and that brings us to principle to impact in order to understand and increase their contribution to society banks need to understand their social economic and environmental impact and no make no mistake this really constitutes a quite significant change in viewpoint this is no longer just about what impacts do developments in the world have in my portfolio what environmental and social risks am i exposed to this is about what impact is my portfolio have on the world and so banks under this framework commit to assess and be transparent about their impact both positive and negative and they commit manage significant risk to people in planet in a forward-looking manner as we've seen put forward by the PCSD and to continuously reduce their most significant negative impacts while scaling up their positive impact for example by shifting their portfolio exposure from carbon-intensive to low-carbon technologies so how can banks achieve this improvement in impact and that gets us to principle three clients and customers because banks impact is to a large extent realized through the projects companies and customers that it provides financing to so banks can achieve some of their most significant impacts by working with their customers and clients by really encouraging and incentivizing sustainable practices by accompanying and proactively supporting their customers and clients in their transition towards more sustainable technologies business models and lifestyles and by developing an offering of products and services that incentivize and enable sustainable economic activity and with that also by strengthening their relationship with their clients and offering a value aunt that distinguishes the banks from its competitors of course there's only so much that banks can do on their own with regards to achieving society's goals and that's what gets us to principle four on stakeholders really for banks to understand their impact to understand how they affect people and environment and how they can align better with society's goals will require them to consult listen to and engage with civil society stakeholders but also if we look further of course to help create an enabling environment for the economic and social changes that are required to achieve society's goals banks need to work and transparently engage with policy makers and regulators those are two key stakeholder groups that banks will need to work together with of course if you think about these first four principles it's quite clear that successfully implementing them and aligning a bank with society's goals will require anchoring these in day-to-day business practice and it will also require to drive ambition through public target setting a key mechanism of these principles that I'll be explaining in a second really for Bank strategic objectives regarding their contribution to society to be implemented effectively they need to become part of day-to-day position decision-making as well as the culture in the bank so that means they need to be translated into effective governance structures into policies there needs to be clear roles and responsibilities alongside adequate resources this needs to be integrated and incentive and remuneration system and of course there needs to be communication and action of leadership that clearly signals that sustainability and creating value for society are central to the bank's business are a core part of the bank's purpose and so what really distinguishes these principles beyond of course the the focus on impact the focus on alignment from other frameworks is the clear mechanism to effectively drive ambition and continuous improvement and that's target setting because through setting public targets banks commit themselves to clear ambition and course of action towards external stakeholders like yourself who can follow up on these commitments but equally important to internal stakeholders because if you think about it clear public targets ensure internal commitment and accountability from top level management to working level it ensures that sustainability relates topic that targets for contribution to society receive sufficient priority and resources and it also triggers a collective Drive among the bank's mployees to achieve and exceed would have been promised publicly so banks that join these principles commit to set targets to drive their alignment with society's goals and publish them and these targets can't be set on you know any topic that the Beng chooses these targets need to be set in the areas where the bank has its most significant impact so banks are required to conduct an impact analysis of their portfolio taking into account their own exposures so what industries technologies geographies is dabangg most exposed to taking into account of course the significance and salience of the impact of those industries technologies and geographies taking into account the priorities and challenges of the society that the bank operation and taking into account where the bank will really be able these opportunities to significantly reduce negative impact or increase scale up positive impacts so this is an analysis that the bank needs to provide publicly and with that show where it's areas of most significant impact are and the bank is required to then set targets in those areas of most significant impact now the ambition level of these targets is equally not arbitrary the targets need to clearly linked to international framework such as the Paris climate agreement and the sustainable development goals and/or national frameworks and they need to be at least in line with or exceed the ambitions set out in those frameworks the target setting is a fantastic tool to to drive ambition and continuous improvement and to do so in a way that really takes into account the specific contexts and strengths of each banks but it is also a fantastic tool to enable transparency and accountability and that gets us to our last principle principle six because banks are accountable of course to you as shareholders but also to their employees and to society both word a positive and negative impact and with that their contribution to society so banks under this framework commit to are required to integrate this information in annual public reporting they have to submit a summary of the relevant information to unify and it will also be public and all this is not just a news commitment because it was quite important for the 28 banks that let the development of this that the principles for responsible banking are not just a framework where banks can sign up and then not do anything so banks that continuously and without reasonable explanation do not fulfill the transparency requirements whose targets do not address their most significant impact or not in line with the ambition levels of society's goals and who do not make progress will face removal from the list of signatories the banks felt that this is required to ensure that being a signatory to the principles will be a credible commitment to serving current and future generations and also commitment that stakeholders can trust and the way that this will be enforced to give you a little bit of detail on the slide around of reporting and accountability banks will be required to publish relevant information and the required information in their existing public reporting so we don't require them to have a separate report but to integrate this in their overall reporting and then to submit a template with references where we can see where the relevant information is and then for banks there will have to be an annual review process where the bank needs to evidence that it has properly set targets and that it is making progress and this will have to be verified through either assurance or an external assessment so that there is a clear objective perspective if the bank is fulfilling its commitments and if not a process is triggered to address that together with the bank or if the bank is not doing that over time than to draw consequences of course we do want banks from from around the world to be able to come in so banks can take up to four years to fully adopt the principles before the consequences kick in this is especially also relevant for banks from developing and emerging economies with that I think to summarize key features of the principles really are bringing sustainability and contribution to society to the strategic level making it an integral part of the bank's DNA focusing on impact so on a view of what the impact of the banks are on society on the planet on people accountabilities and setting targets publicly to drive continuous improvement and to drive an i'm and with external frameworks and of course overall alignment with the Paris climate agreement nd scg's so how do investors come in here I think will has a set this out quite nicely in the beginning of course as owners as clients but also as advocates for the banking business in your group so we would very much like to engage with you and for you to get involved we are in a global public consultation so we would love to get your feedback and inputs on how the current framework as it stands could be further improved and strengthened from your perspective to make it an effective tool that you can use and we would like you to get involved in the sense also that that will mentioned you are a key influencer of banks worldwide so in order for us to create market incentives for banks to become sustainable and responsible in the line with society's goals you are all crucial actors so we are very much encouraging your support I will leave it at that thank you very much for your attention and very much looking forward to your questions and feedback right thank you very much and now like to hand over please - Nathalie Jubair Nathalie is the deputy head of CF saw a PAP power Bart is going to give a perspective from a bank about the new principles of responsible banking over G Nathalie hello hello to everybody thank you very much for giving me the possibility to share with you the journey we had on the principle I see monk has already given you a precise view of what inside the principle I proposed to share with you the story and what would be the impact and the commitment the commitment what would be the impact and what would put this principle change for Vendetta Heba and so as a as it was explained we are the banks will build those principal who are really willing to do something different than an additional framework and an additional document you have to fill in and then forget the idea is really to to commit to have something which will make it different and I guess that for me at least the two main elements which will change and which will make those principal very impactful are the fact that we need to set target and that we will be accountable and I stopped a few minutes on each of both and in our sustainability journey with invantive aha we have - from a few years now then that setting target is key to build the credibility of your sustainability strategy we have been doing that for years now we use them internally and externally externally to give feedback to our stakeholders internally also because it is included in the viable deferred remuneration of our top managers and we really are very conscious than setting clear targets on key areas makes a big difference in the way you develop and implement your strategy and I think this is one of the very important point of those principles second element is probably around accountability and we will do that not only for ourselves but also for stakeholders including Hugh and I think this is key that we are all able to publish our target explained did we meet them or not and if not are not totally why and really built the trust around what we committed to and the accountability we have towards you so I guess that for me at least those are the two main elements which make those principle very very different as I explained invented the radar we have been working on sustainability for years now so a lot of the element which are included in those principles for responsible banking are already part of our strategy but what I would like to do is maybe to share with you the discussion we had during our last important meeting with the other funding members of those principle because depending on what kind of bank you're working in or what kind of sustainability strategy you have developed sometimes those principle can have different can be also in different ways so for some banks what was said that they will help to create the sustainability profile of the company and make the sustainability earlier linked to the executive committee and I think that this is key and at least in my experience inventive arriba be having the direct link to the executive board make our lives a lot easier in terms of supporting sustainability within the bank and embedded it within our strategy for other banks the main elements were sharing best practices and understanding how all the banks are working on specific subject and and for others it was really around adding new tools to develop box CPI be able to make a step forward and reach new metrics in their sustainability journey so I will not share all the insight of all those days we expend together with the other banks but it was just to say that depending on your business model depending or when you stand on your sister ability journey you can find different advantage and positive point within the principle and maybe just to give an example of what I think it will change for us as I explained we already asked epi but I think that this exercise of selecting a few key pis and pushing them externally and being accountable to them will oblige us to make the effort towards our executive board to really understand what are the two or three elements we want to make public and to give more explanation around so once again this exercise of giving you more visibility is really very important to us and I hope that by all doing a few steps towards a more solid and comprehensive sustainable journey those principles will really help to build a more sustainable banking sector and to give you investors a better view of what we are doing in terms of sustainability where we are committed and what you can really expect from us I'm done if you have any question on now or later please exactly eyyy woods welcome just just one one extra bit of detail please on on impact I think I think this is the conceptual difference between the principles responsible banking the principles for responsible investment and it interested in the the frameworks that you use as a bank to determine the impact that you have on society both for good and for bad and just wondering if you could just speak for another minute or so about that so on this I will do the example I know the best our example so the way we work to assess impact is we have a material and materiality chart where we understand where we cross what our main exposure main subject and what are the expectation from our external stakeholders to be on it we make it more and more sophisticated we have a better feedback on stakeholders but the key point didn't change much for a few years we know that we are big energy bank and we know that we do our role in financial inclusion so the the tools we use to demonstrate that those two examples are key impact areas for Earth change our most sophisticated nevertheless we knew that we were big energy bank without developing of this also those all those tools so how we assess the impact on tech target first we look at our business model we look at stakeholder expectations we cross both areas and we identify a few areas where we know that we can do something and that the way we act can change things and for example that one of the reason why we have such such strategy on energy we have been working on coal and unconventional oil and gas for years now and really the idea that we know that energy is one of the key area where the bank can have an impact on the world to do Elsa who is banking speaker and I also had a citizenship at Barclays and also really interested in your reflections on the principles please and how you think they may influence your business and how you consider your sustainability objectives absolutely thank you for that and really delighted to be here with you all today thanks for for including me in the conversation so as well mentioned I'm Elsa Plaza I lead our global work on sustainability and citizenship which at Barclays is the name we use for our community engagement and investment work so it's a broad portfolio and in many ways that actually serves me well when thinking about the principles because we are indeed taking a look at a broad-based set of issues related to everything from climate to to social issues Barclays has been a member of UN FFI for more than 20 years which is a really valued partnership for us and we've been delighted in the past year to be part of the consultation part of a coalition of banks working on the development of these principles to responsible banking and I just I can't underscore enough the benefit of having a systemic platform and framework through which and under which a lot of our other work can Nestle and what I mean by that is as Simone pointed out very clearly the first principle is around alignment and fundamentally I think a lot of banks are working hard on on climate related issues certainly we are ourselves engaged in T CFD work at the moment and and a number of other issues and the benefit the vast benefit of the principles is that it can be an overarching support network to all of the other initiatives that one might be engaged in and under which they can work I also assume I mentioned I think one of the most important benefits of the principles is their strategic imperative that fundamentally it's both necessary and a huge opportunity for the principles to be embraced at a strategic level and so not only can they be embedded at the governance levels and at the senior most positions within a bank but that fundamentally that needs to trickle down to every transaction level as well so they think they help the poor Bank and thinking about sustainability from both that strategic level to the transaction level when it comes to Barclays experience and how I think this might be really already starting to change the way we do work again I think I would point out the fact that we're going to have to adapt our business practices to meet society's goals and that the principles really help us build a framework in order to do that systemically and cohesively some of the changes we've made at this on this front have recently been around governance ensuring that that sustainability issues are embedded not only at the board level in terms of oversight but certainly being picked up more actively by our executive management so that they can be indeed embedded in the day-to-day business decisions of the bank's itself we are deep in the trenches in terms of developing an implementation plan and a gaps analysis to understand where we are doing work well and where we exactly need to do a lot more work to make more progress to be set up well to adhere to all six principles in the system and if that happily I can say that again because this is a coalition of banks and quite quite varied banks I would say which is one of the benefits here is that we're able to do this in partnership with the founding banks with Iain FFI and with lots of other implementation partners to enable collective learning I think this will be a benefit of the principles for much time to come I might add because this this element of being a Coalition of the Willing so to speak who are all on board to start making progress enables us to actually share where it's where it might be working and where we might be running into difficulty and and enable some cross-platform sharing and I would say that within our bank itself that this cannot just simply be driven by my team the sustainability team that it's going to take everyone from our leadership as I mentioned to our corporate and investment bankers to our risk and facilities teams not to mention other stakeholders like NGOs and investors very importantly to assess our business and help our clients do the same and ensure that we are coming up with cohesive solutions to these challenges I want to make sure I make a note about principle two in particular which is impact and I think this is really profound point to the mandate for banks to examine both positive and negative impact and this is a piece we've really been taking to heart at Barclays thinking about not only our exposure most recently certainly with the energy industry and thinking about how we can help mitigate and curb the effects of climate change and also double down on our positive investments so we're thinking about financing solutions that develops positive social and environmental impact some examples of this very specifically are that we actually expanded Barclays Green product portfolio and to include things such as that we had a first to market green mortgage product for the UK we've committed to doubling the banks green bond investment to four billion pounds over time we hit our two billion goal ahead of schedule which is a great point of progress for us and so we have doubled that and just this year we've made a new commitment to facilitate a 150 billion dollars of social and environmental financing by 2025 and this is broad-based it does include funding for sectors like renewable energy but also for education and affordable housing and national and superman' national development institutions so it's again taking into account not only the Paris agreement but the SDGs as well I think lastly I'll say that in terms of our relationship with investors and this is certainly important for this group of people the principles are tremendously helpful because I think there's a concern methodology that can support banks making progress and that we can act in partnership with one another to make that happen as I'm sure you're all quite familiar we see huge variability in ESG ratings through the various ratings agencies that might take a look at banks when it fundamentally that data I think can be somewhat problematic because the one-to-one the agencies themselves don't can't compare and different banks who are approaching issues from different perspectives might not be caught up in a way that's productive and so the benefit again to the principles being a over an overarching strategic framework is that they offer up a path forward and a path for progress such that investors can ask questions about how one might be making progress on any of the six principles and understand more nuanced and in-depth perspective of whether or not the bank is indeed adhering and making progress on on those issues so I'd say that's one of the best elements and ways that we could work together is and get to create this consistent methodology to support these global frameworks such as the Paris agreement which are so critical to our future success so I will stop there I appreciate the time and happy to answer any questions thank you very much thank you I've had some comments that my volume isn't very loud so I'm hoping that others in here just before before give them to Mary I just did have one follow-up also if I may the you talked a little bit about the financing activity that you will prioritize as part of your commitment to sustainability and your endorsement of the principle its responsible banking but do you think you might be able to talk about sort of the funding financing activity that you might avoid I think I think this is a number of our PRI signatories have made commitments to not invest in in companies fossil fuel companies particular or other types of companies in inconsistent with their sustainability objectives and just worry if that's part of your conversation as well please absolutely and thank you for raising that we have had a couple of public statements or positions on the books for sometimes the first of which which has been in system for quite a long time is around defense but just this this year we released our first Energy and Climate Change statement which really encapsulates Barclays public position on and financing position on a certain sensitive energy sectors those that might either have the most carbon intensive activities or or and/or have some environmental impact issues that may or may not involve indigenous communities and such and so we go through systemically in that in over the course of that statement these sectors such as oil sands and coal mountaintop removal mining and Arctic oil and gas and ensure that that we are articulating exactly our plan for how we are either going to put up specific restrictions on our financing activities and/or take a much more enhanced look in our due diligence on our financing activities and ensure that we have a deeper understanding and a better sense of where and how we can curb our financing of some of the most challenging sectors in the energy sector in particular I should add we also do have public statements on ramps our wetlands and world heritage sites and recently we released one on forestry and palm oil as well so we are systemically making our way through some of our our most challenging sectors in terms of their potential negative impact on humans in the environment there's no doubt that there's a lot more work to be done but that's that some of the activity that's been underway in the last year that's really clear thank thank you Elsa let's move on now to marry areum thank you for joining us Miriam represents legal general Elgin and he's been invited to speak to give an investor perspective about the principles and perhaps more broadly about the sustainability of the banking sector so Mary can I pass over to you and just get the reflections of what you've heard so far and any takeaways you think might be useful for other Bri signatories a bit of a perspective from our only investor I'm sure you have all kind of a have experience of to de banques and in fact I remember the very first job in the SU talk to a bank and I really struggle because I went through their lending policy I just couldn't get clarity on what kind of footprint they really had and there's been a lot of progress since then I still think we may be having the same conversation sometimes you're trying to dig deeper into their lending policy and not really getting a big picture on the the real impact that they're having and you know where the social license to operate lies in terms of what they should or shouldn't do so so it's really great to see a sort of set of principles or guidelines coming out of banks themselves because this is something that has to really come from within because it's an incredibly complicated business and every single Bank is slightly different as well so so that's a really great progress since then and I also kind of want to maybe give a little bit of color about how we have gone about engaging with banks particularly in the context of climate change where we focus all of our engagements so we focus in on key sectors including financials which got broken down into banks and insurance just because a few years ago we felt that those sectors will be neglected just because their direct emissions were very limited but clearly how they finance other businesses like fossil fuel energy intensive sectors is driving that the emissions globally and at the same time they play an important role in financing the opportunity side and so we within the banks we assess 16 banks we went through every single annual report and everything that they talked about in relation to strategy in relation to how they're being transparent about their effort and so forth and and again it was quite difficult to reget a very fair picture of what was happening to get a real overall footprint on the governance fund and some transparency the banks tend to do quite well because they are regulated and there's a law of a spotlight on them as they kind of represent a lot of the regions and countries and so forth but when it came to really how much for example in a context of two degrees scenario four degrees or any of those things impacted their different operations or the financials or the broader market we just didn't get a lot of clarity in a lot of the banks and that's because one is hard but also because it goes way beyond just lending the companies which is usually a very small part of a lot of those banks and it has to go into how the banks touched different customers and clients globally and there's just so many millions of touch points in and how they advise and help you know we're there with their transaction and so forth it's very very hard to aggregate so I completely appreciate that that a complexity in all of that but we also felt that lack of that conversation meant that we we didn't get a confidence that that that level of conversation wasn't being had at the board level at the strategic level about real you know business risks and opportunity and partly because ambassadors may have over focused on materiality and then when he came to materiality of climate change for banks it wasn't that big you know individually whether they were financing for so few well not just because of you know the shorter sort of lending timeframe and so forth but if we as we as this framework has done if you widen that to the overall societal impact and social license to operate as opposed to pure financial materiality then a whole lot of conversation started to to bring up that to be brought up so I think that that needed to be done and I think that's really great another part that I think is important is I guess data anything to do with numbers and more recently be seeing quite a lot of announcements from banks on one hand as I talked about in terms of what they wouldn't finance but also quality numbers of billions financing low carbon transitions renewable circles which is great but again we don't get a lot of clarity about what that really entails and and I have to give a lot of credit some bankers who have done it reports on that but also you know we don't know business as usual have they really gone above and beyond it's just that it's just a really strategic commitment it is a marketing tool you know you don't really know that at the strategic level when you look at the annual report or listen to some of the metrics with the board so so how they are repositioning the businesses and the products and services they offer globally may have negative or positive impact is something that I think needs a lot more conversation because so far it's limited to green bonds and maybe green mortgage type all which is great but we need to go way beyond that because the product that banks offer are far bigger than that so I do want to really emphasize how difficult this task is and I think it's probably going to take a long time for meaningful information to come out of banks in a way that gets us a more holistic view but this is a really important conversation that the investors should be taking a part of and hopefully fine-tune it so that we are we can support those businesses to be successful for the long term finish their great great that's excellent subside thank you Mary it's just one quick follow-up if I may Miriam to ask you to talk to the principal to within the principal's responsible banking which is about impact and this is a principle that Elsa focused on in her remarks and investors are starting to consider themselves about the impact that they have through their their investment activity just just wondering if you could comment or give reflections on how you think banks may be able to determine their impact and really whether this is something that investors are the capabilities and competencies to properly measure yeah I mean we've seen we some to see a lot of narrative around impact but what we don't really get clarity on how those stories were being picked out you know this is just a it summer cherry-picking of the stories that they want to talk about and then maybe not the others I think what we need to be thinking about is that the banks or even we as investors we have a lot of impact right we need to start with what impact we having a lot more holistically and some of that will have negative impact some of that will have positive impact in this there has been a few frameworks that help businesses do that maybe not as successful for banks but I have seen sort of number of a breeze the kind of community community to the touch that kind of starts really talk about holistically without doing anything what the impact is now and then shift the business into where they want to get to and then thanks I guess we'll need articular even further than that instead of sort of the direct touch point like lending to go all the way through the businesses which is incredibly difficult as I said because there's so many different touch points and then say well what you know what education do you need what products do you need what training do you need to shift the whole frames tie down a mindset because honestly nobody wants to change their business and if they don't make money on the back of changing that then obviously that's not being good to the investors either either so there's a lot of very difficult conversations to be had about understanding the impact and shifting it so so I think this framework hopefully gets those banks to have that conversation which is hard for sure and then think about what opportunities they are in shift in the business you know over time in a meaningful way and then hopefully be a lot more successful in the future as a result of that so that's what I'm hoping for which might be this is really too much wishful thinking but but I think it's important talk about impact and that's not just banks we have to talk about impact as well as investors and it's very very difficult it's the same challenge so we have a business yeah that's very very clear thanks Thank You Miriam and just one more question Miriam if I can while while you're speaking and that's going back again today Tony did you did you did cover this to some extent but I'd like to bring in of course we've had on ESD ratings to get your sense of whether ESG ratings of banks are a useful data set for you in determining the sustainability of banks alongside the quantitative quantitative data that you said that you would really welcome in terms of helping you to make some comparative decisions around the sustainability of banks along with narrative reporting as well and bringing those three components the ISTE ratings the data and the narrative to help you make a decision is a is there any part of that you think requires further development what's your sense on ESG ratings and how are you bringing these components together to help make decisions yeah I think we need to use your mind work in this area so just on the ESG rating of course it's helpful right somebody else is doing a lot of work going through annual reports giving you the inside so so I wouldn't take any one of them at face value I would get it as information but it's important we don't buy sort of off-the-shelf ESG rating but we buy a lot of raw data and we make our own analysis and frankly when it comes to banks and something as complicated as you know sort of societal impacts or climate change the the scores just don't tell the real story of what's happening so he has to be combined with meaningful assessment and on the ground what they're actually doing in terms of what they're financing and so forth across the sort of spectrum the business they have and whether when we talk to the to the board level or even IR that narrative is really penetrating through in a meaningful way and I remember once I talking I was talking to somebody I'm not going to name the bank somebody is sort of mid level question yeah and he said to me look the bank is just trying to do sustainability I want to be part of it but I don't know what that means like how do I make money and when I got that conversation from when I thought oh wow this bank is really seriously thinking about it because everybody is thinking okay what is my role in this that's really hard to capture in data but you know that the right conversations are being had so I think I think sometimes we have to let the banks do its own thing of having the right get and in sort of ambitious in place the data points for for example our analysis we come up with our own questions as well as feed through information through from CDP and so forth CDP actually have quite a lot of interesting questions on cl mate change that I if you don't read I do recommend that that you do in the number is a very meaningless the narrative could be quite revealing and we score ourselves and we have used something like a hundred seventy indicators for the sixteen banks and it starts to tell a really good picture and so we have a huge spectrum of the companies that are who are really thinking if you don't shift the business we're going to lose out to the ones who've barely heard of Christians globally so so I think we need to use some numbers and comparator to push the whole sector up the chain because this is an important incredibly important sector to engage to push the societies for the long term okay excellent Thank You Miriam I'm going to come to the Elster now for a couple more questions if I may also what one question which may be fairly easy for you is what are you looking for from investors what would would you like from PRI signatories in order to support your sustainability objectives and then perhaps a more difficult question as well if I can which is around your membership that you may have as a bank of a number of different stakeholder groups that may or may not have policy engagement activities or lobbying activities that are consistent with your sustainability objectives so how are you working with the many stakeholder groups of which parties will participate in order to ensure that their engagement and lobbying activities are consistent with your sustainability commitments so those two questions please Elsie or something absolutely thank you for those um so I think on the first question what we need or what would be most helpful from investors gets back to the point that I made at least quickly in my remarks which is that I think that it's tremendously helpful for investors to engage with us directly and and I would say and ask questions about our strategic approach to things like climate change or the sustainable development goals one point that I would make this really important is that quite often any ESG related question will get sent on to my team and as the sustainability team and we will answer it and send it back but I think to the extent that investors can start asking questions about ESG to the front office teams with whom they speak to the c-suite teams with whom they speak and and instead of continually segmenting the conversation around sustainability issues and then core business being something separate from your side from the investor side continuing to link these things together you will help the overall conversation inside banks get more United and be knitted together in a more productive way I think that that's a kind of leverage that seems rather simplistic but would be is actually tremendously valuable when it comes to sort of the day-to-day operations inside the bank and who starts caring about this who starts even knowing what ESG means and and you know will actually start putting kind of leverage and pressure on people who then can start to continue to integrate these issues into the strategic you know plans for them for the business itself for the core business so that would be hugely helpful on the stakeholder groups question I say that well first of all I'd say that membership in stakeholder groups can be broadly defined and there's no doubt that we have we are participants in a number of sustainability related groups where it's very helpful to have sort of off-the-record conversations about how either as a group of banks or as as a broad-based group of private sector actors how we can continue to some of these issues and I'm not hugely helpful we also obviously engage directly with NGOs quite a bit in terms of our our sustainability practices but I think you're asking more specifically about lobbying efforts and I'll say candidly that on one level I don't think we're there yet that's a place where admittedly that hasn't been a priority for for our engagement in terms of our sort of secondary or tertiary effect when it comes to thinking about the principles but it is a really good flag and something we should be thinking about if for example perhaps our international resources banking team is engaged in a lobbying effort to to sort of curb particular restrictions on industry we want to make sure that we're not saying the opposite in our in our policy and then you know behind closed doors perhaps even inadvertently pushing on the wrong levers so to speak so I think it's a it's um it's a really helpful flag in terms of an overall systemic approach I will say candidly also this is not an excuse but but important to note that I do know the vast majority of our lobbying efforts Barkley's not surprisingly have been centered around brexit and and potential economic fraud and just basic regulations around the banking industry and less focused on issues specifically related to social and environmental impact but naturally these things are all related so so I think you've given me something to go away and work on so thanks for that ok great I'm going to hand over to Simone for the final word Simone there's two questions I'd like you to respond to as part of that please one is can you share with listeners the alignment of the principles for responsible banking with the Equator Principles and then the second question is can you talk a little bit about some expectations you may have regarding environmental policies beyond climate and then perhaps any concluding remarks that you'd like listeners to take away with them and before I hand over to someone just to say that there were a few other questions and I'm sorry that we haven't got to them but we will circulate them with the speakers afterwards but unfortunately I limited so else a business appointees for the last word perfect thank you very much for that will to your first question the alignment of the principles for responsible banking with the Equator Principles it's a very good question I think it's a is more broadly also question of you know how do the principles for responsible banking and existing frameworks fit together and what characterizes existing frameworks if you think about the Equator Principles they're fantastic they are applicable to project finance and they're very much transaction based there is the TC ft which is tremendous but it's focused on climate there are the UN guiding principles on business and human rights and they're fantastic but they're focused on human rights so what has really been missing was you know an overarching piece that knits all of these different principles and standards and frameworks and approaches together into a coherent strategy for the bank to strategically address and think about its contribution to society and so if you look at the implementation guidance of the principles for responsible banking we definitely recommend that banks apply the Equator Principles to their project finance business or that banks adopt the UN guiding principles for business and human rights so in many ways the principles for responsible banking provides an overarching framework and guidance and direction and will that also brings together and gives it place in an overarching strategy to these different frameworks principles standards the second question also very good question expectations beyond climate and sometimes this is a little bit also a question of different countries so these principles very clearly relate of course to the Paris climate agreement but also the sustainable development goals the sustainable development goals there are 17 and there is water there's life on land there's life in water etc and we expect that many banks will be actually identifying some of these issues named here like water pollution or also air pollution or water scarcity as really the area where they have their most significant impact and so we really expect to see targets from many banks around the world in different countries on these issues I mean if you think about some emerging economies like India like China even around the topic just of air pollution that's going to be crucial for them maybe even more crucial than for some you know climate mitigation in some countries and so there is no you know putting one ahead of the other globally from our perspective banks need to understand what are really their most significant impacts and what are the most significant challenges and priorities of the societies they operate in and for many that will be topics around water scarcity water pollution air pollution etc so I hope that helps just just to say there you know these principles are global and they provide a global framework and benchmark and the challenges of course to you know provide a global standard but still allow for banks to you know have something that makes sense in their local context and that's where the target testing in the most in the areas of most significant impact comes in because the areas of most significant impact will be different for different banks and of course among the European banks we hear a lot about climate change but if you go outside you will hear off a lot of other environmental topics so I hope that's helpful if I haven't fully answered your question obviously feel free to follow up very happy to engage in terms of the last word thank you very much to all of you and to the PRI team and once again we value your inputs and opinion and you are key actors to drive change in the banking industry so do join us in transforming it thank you thank you everybody have a good afternoon