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and now I'm going to fight to the stage my panel of CEOs don't forget these are the men and women who've got to implement this and got to to make it work so please can I have my CEOs panel on the stage now [Music] yes okay good well thank you very much this is a very impressive panel so I'm going to first we'll introduce the panel and then in the next hour or so we're going to sort of attack their principles from different angles and obviously what we want to do is sort of you know get under the skin of of how this thing's actually going to work in practice so it's not just a piece of paper and an idea it's something that we're really going to to run with and there's gonna be lots of times for questions so please this is going to be an opportunity to question a very esteemed panel so make sure you participate in that okay so let me start by introducing everyone a perhaps you could just kind of nod when I mention your name so we all know who you are so I have Tengku Safra disease group CEO of cIMB Group from Malaysia I have monk sex sexual term who's the chairwoman of Gaunt Bank from Mongolia I have sugu who's the president of Industrial and Commercial Bank of China thank you very much I CPC by the way in the bankers top 1000 ranking always comes top then we have TP nacho Cho who's the CEO of land bank from South Africa we have Casper von Costco the CEO of Nord air from the Nordics we have Christoph's MEK MEK aloo this chief executive of Piraeus Bank from Greece we have Young Bianco that's the chief executive Shin Han Financial Group from South Korea we have a host team player Frederic hudair who's the chief executive of Societe Generale and we have Peter Blum who's the chief executive of Triodos Bank from the Netherlands famous of course for being an ethical bank so let me kick off by talking about really the sort of recovery of the banking sector from the financial crisis and and let me get your thoughts on this Frederick Adair from from Sauk gen I mean the banking history you know means lost a lot of trust and legitimacy you see these principles as a way of reestablishing trust with shareholders clients and and sort of gaining legitimacy in in broader society well first of all a good morning to all of you delighted to participate to this panel and welcome to Paris which I hope you will find in a peaceful City compared with maybe some images you had during the weekend but we are like this in front don't worry young it comes and goes now we have touch already a little bit about this question and it's fair to say we are now 10 years after the beginning of the financial crisis and banks had to regain trust and as we've said there was all these elements around a new regulatory framework a new way of doing business really to draw the lessons of the crisis and I must say as it is acknowledged I think across the world and in Europe in particular in here I'm talking on one hand as you of Societe Generale but also as chairman of the european banking federation a lot has been done and I think now banks are certainly from that perspective on one hand more robust and certainly more responsible but I think that the idea of these principles and I would say the capacity to commit to this world are the transformations which are at stake in this world which at the same time is a more uncertain more volatile less coordinated maybe than what we have experienced in the last 20 years is effectively to regain trust and further build trust in something which is more positive and when I say trust in particular in gaining this well I'm convinced that it's one of our it's maybe our best and core assets we as banks as institutions where we are committed with clients what is making the difference is the trust that our clients have in our institutions whether it's for wealth management the way we finance things etc the way we accompany in the long term our clients and I would say really now I think we are to a certain extent able to turn the page if I may say of this period of remediation to the financial crises and effectively try now to collectively as much as possible collectively engage in accompanying our economies our clients in this journey because when we talk about in particular climate change it is going to be a journey we are not going to do that in a few quarters but effectively do that responsibly and it correspond I think to the expectations of our clients of our staff I mean our staff is also willing to engage and more generally speaking all our stakeholders so I see that as something very positive and we are certainly committed I can tell you that Europe and banking Federation endorsed this principle and of course on behalf of physician and also okay thank you let's go now because we're such an international group let's go now to Malaysia and take Lucifer o Aziz I mean Malays it's country I know very well actually and we you know we've all seen it go through these rapid changes and grow very fast which of course is great for economic development but also poses environmental challenges so how do you see CRM B's role in in ensuring that that sort of development remains sustainable and and how would you see these principles being put into practice in your bank thank you well for us we don't we just we're not just looking at Malaysia in cm B's of course a leading bank in Southeast Asia of course yeah so we what we want to do is to create that leadership not just in Malaysia but also in this region of course we are uniquely positioned to do this it's we just started on this journey we've been engaging our clients our regulators our government on this and we feel that all parties need to be part of this initiative the principles are there to support and guide us at all levels of sustainable maturity so the leap we need to lead by example we've started to engage our board of directors and most recently we've tried to link some of the cr2 SDG we're teaching our our clients to be part of the ecosystem we've started putting aside 1% of profit for example to do this but it's interesting that I also heard just now about linking the compensation of the culture which is the DNA of banks right I think that's something that we should do and we started that creating the right culture and value system within the employees as well the compensation we have we have started that doing that it's of course we have challenges internally as people are you know challenging some of that but I think in the longer term they will see the benefits of doing this we started by a country of course we are in all 10 countries in Southeast Asia what we've decided is we've thought that this in Malaysia and Singapore first I was there any resistance to from the shareholders to to using one percent of the profits there was no resistance to be honest there was some questions and some other minority shareholders right but I think our majority shares are keen as long as we are clear on what that money was going to do that way it's gonna be channeled to and how we will benefit the society ok let's now turn to to mr. Cho from Shin Han obviously congratulations on being a founding bank in the principles for responsible banking but what you believe is the impact of banks and financial institutions on society in in the environment and what do you think finance what do you think is the role that finance should play in this I would like to approach the comment on issues around leader to change our peers social and economic polarization is it getting you around the world and there is growing unease no companies cannot maintain sustainable clothes LaRose excessive debt aging population is unemployment the climate change potential threat they cannot be ignored anymore on the digital conscious society expect from companies in different ways the financial industries dollar plotviz of the economy fundamental role of the finances to support our economy very important role in this sense I believe that how financial company companies has said there are lens for the real economy decided aside gender direction of the impact to the society if we replaced our lens into longer time frame shift our thinking from financial focused into integrated thinking it is proposed and realign and here's ESG activities our core business development there a better future is a possible under this view Shannara you're pushing GSB measurement of principles generating economic value and the producing values for society at the same time our management system and the corporate culture of the past was to optimize the process and practice making [Music] analyzing the impact of our activity is often the environment and the society by investing in renewable energy and the social enterprises we are continuing to implant implement our responsible management principles if we seek way of existence between finance and the society and the sick way of financial institutions across the globe all working together I believe we can change creating solutions to the challenges of your face thank you Thank You mr. chair interesting that to hear about the idea of compassionate finance I think that's very important I'd like to know now go to Christo's megalo from Piraeus Bank and I'm clearly I mean the big thing here is if you've got to keep your shareholders and customers happy with this Avenue so obviously for you to take these things on board there has to be an understanding that these principles are going to do something for the main stakeholders in the bank ie the shareholders and the customers so perhaps you could give us a bit of an overview of how that's going to work at a preyas thank you thank you very much good morning everybody the one thing that we have experienced as doing business in Greece was that Greece has continued in it crisis you know following the recovery of you know the the European banking sector and you know it's just emerging from from the crisis and one of the lessons that you know we have learned in relation to what we were doing in the past has to do with social inclusion with being you know a lot more compassionate to you know like the units of the society that we're in need so one of the one of the things that is is really you know very important for these principles that we are launching today and has a real real value for for all of us but having also coming from from a country where it has pretty very recent the scars of of the crisis is to be able to do this without without essentially doing the mistakes of the past so economic growth will have to come hand in hand with you know social cohesion and the environment which is you know the main reasons why we are supporting these principles and we are one of the members that have contributed to do to where we are right now this has been discussed and explained who the stakeholders and has to be even more so and and is is actually getting quite a lot of approval internally in in the country because a lot of people really think that we should be avoiding the mistakes of the past okay thank you very much and let me now turn to Peter blown from Triodos because I mean Triodos set itself up as an ethical bank so this is all old hat to you guys isn't it I mean can you tell us you know what this what this brings that's new and what you think the significance of it is well first of all it's great that it's happening when we started readers in 1980 I really started the bank as a social activist and I thought money was the best way to change society and you see what's happening we were a niche bank at a time our colleagues so we were in these and we became more and more a front-runner and I like that change and what I see happening today that we have many followers and and actually is not just us but there are many others who made finance as a much more important factor in society for a long time that was not a case it was just following the real economy but now you can really see the change in my colleagues in banking big banks small banks they really get it and they'll like it they enjoy it and they really see a role for finance in the change in the you change we see in front of us and I really think that as a for a front-runner that's a really nice thing to see and to happen so a congratulations with this initiative ok good now if I could go back to a Frederico day of sock Jen I mean there was some talk this morning about you know is there a tension between profits and sustainability or in fact is there opportunities for making new profits from sustainability is that something you could tackle and I know that you've been very much involved with these positive impact products such as p.i bonds which is which is an interesting way of of taking advantage of sustainability I guess from a Prophet's point of view yes I think again there's first of all probably no choice and I really believed it is capacity to combine the development of the business profitable business with this kind of principles and I'm happy to say effective association I was a pioneer in trying to define and work and create working group on these positive impact where you try to approach what we have to achieve I would say with the most holistic realistic and pragmatic way looking at of course the benefits but also sometimes more than negative impacts of certain projects and try to have a global assessment I think that at least certainly that's what we have decided to put globally as ESR as part of our strategy what does that mean it means effectively the business decisions are driven by this kind of goals second effectively deploying a culture and conduct program we talked a lot about this issue of culture culture I think it goes beyond just complying with the regulation it's really effectively creating something which will cement the staff cement the motivation effectively amber the staff in a kind of positive adventure behind there is also related things which are related such as the the way you compensate and we have including included in our compensation schemes objectives regarding CSR animals in particular regarding environment we are leading banking energy how not to think about a strategy to participate to the renewable energy sector helping our clients to transition today I've seen the progress in this field which was amazing in the last 10 years 10 years ago these technologies were probably not that mature ten years ago they we are depending a lot on government subsidy today it is a business where clients are committed where you can find projects which are sustainable economically and which will be on participative sustainable growth and so we are very happy very proud and of course it meets our own objective in terms of profitability - one of the leaders in that field and what you do where you have existing loans to the projects that are not sustainable but that are profitable I mean how do you deal with that yeah I think I believe personally we have to establish and participate to a transition and if we we think in particular how to combine the capacity to limit the temperature but also to maintain a sustainable growth in particular in emerging countries how to think about countries like Africa continent like Africa India or China they can't just skip and avoid the traditional energy and move directly towards renewable energy so what we have to do is participate to the transition according to the 2 percent transition and limitation to the temperature scenario we are effectively have committed to finance renewable energy 100 billion between 2016 2020 we next and a 58 percent of this objective it we have decided very early among the first banks to stop call new projects so it means naturally our call asset portfolio is declining we have an objective of 19% among our overall energy asset mix and we try to accompany these players which might still be involved in coal in precisely developing new economically viable renewable energies ok thank you very much ok now what I'm going to do now is I'm going to sort of whisk through some of the individual principles and get some feedback from different CEOs now let's go to ICBC and I unfortunately introduce you as mr. Xu qu but you are actually mr. who how vice-president so I'm apologies for that but this is a challenge this panel so I'm doing my best so let me ask you mr. who ow what changes in portfolio exposure strategy and learning policies are you planning at ICBC to improve your impacts and a line with international sustainability targets and obviously this comes under the category of alignment thank you good morning everyone responding to your question and you're speaking as you know ICBC his Kirin arm is economic responsibility and the sociability for yes as earlier to the 2008 I used to be say a temperature of a strategy a study of a building a leading during its institutional a financial institution I think the in which it's highly consistent with thee with they go uh principles in in in terms of the green credit for instance I specie has made a series of policies credit policies in more than sixty industries we in over the years we have been optimized those policies and that those those procedures by doing so to make sure every year every loan can be granted to the secretary to the area that it is in Normandy with the you know the environmental development in terms of the rambaldi as you know I specie yeah it's not only the biggest join the Sun writer in the domestic market but also we are you know we we are the usual not just one of the knots to issue in the in the international market for instance last year we issued roughly 500 billion US dollars in in Luxembourg in Hong Kong in in in London so in in terms of the during the studies as you know ICBC it's the only one in the world to you are not you are to conduct the you know my environment risk stress testing we also at only one in China to to take the Corina reading systems we are also the only one to take at the standards or 40 70 so looking forward I see PCI you know we all continue to optimize our drink green credits policy and we were we owe you know the to attunement to use at the green bond is the man the mass of the two are founded economy also we are copying honks our cooperation with the with our international peers in in specifically in the rating system in the information the disclosure and thank you okay thank you very interesting that you talk about stress testing there and and making sustainable banking part of the stress testing and it sort of leads us on to the whole sort of area of impact and target setting and I'd like to turn to Montague Chilton from from gallant and I mean where do you see God's banks most significant negative and also potential positive impacts and and where the bank is going to focus its efforts and Thailand said its targets to increase its contribution to society's goals in this area okay before I answer the question I would like to take a chance and express that I'm very honored to diversify the group of global banks not only not only in terms of gender but as only local national bank to be present okay so their answer to the question Mongolia Mongolia is small economy we heavily relied on mining Natural Resources and actually we are I think one of the the number one country in terms of livestock per capita so this will probably tell you a lot about the our economy structure as such we certainly have major environmental and climate issues in the country which need to be addressed however tackling and addressing this issue is costly and capital intensive and on top of that it requires political will and commitment from many stakeholders such as public government private sector and many interest groups however it doesn't mean that we we will stay put and in active-passive around this issue however but what I'm thinking now is well we alone as a ghulam Bank is our bank is the first nish private bank in Mongolia that was established 23 years ago and all of these principles that we are talking today and sustained sustainable development is fully in line with our beliefs and values of our founders the bank was found that initially with the purpose of bringing an real impact in the social and economic development of the country therefore for us for our bank it is not difficult to accept and follow all of princip's however we can't do this alone because we are leading corporate bank in the country and as such we have big companies and clients from all sectors such as mining energy and agriculture and so on I mean does that make it more difficult for you because obviously Mongolia does have these big mining projects and we all know that mining you know faces challenges when it comes to the environment is that does that make your situation more challenging do you think that some banks in other countries yes yes we are in the same like in other countries we are they we have biggest deposits in the world in terms of copper and call as well so unless we involve other banks in this initiative we alone will be put out of business our clients will run away to our banks to other banks as if we start making green requirements in our credit well you also said it needed political will do you feel you've got the the political backing to do it well yes we are the government we have government policy and government framework the government introduced sustainable development paper I think two three years ago and now it's time for private sector to initiate the efforts and actions in this direction because all these the climate change is a global issue and it goes to local and even in even single each individual can contribute to these sustainable development and therefore it so it's a real collaborate needs to be collaborative and in combined all of our efforts together okay thank you very much that's that's very interesting to get that sort of perspective from Mongolia now let's go to Casper cusco from Nordea because obviously no ways of very different than the scare the Nordics are very different kinds of places they've always had this commitment to the environment so when you focus nor dayers efforts you know and what what are the sort of particular things that you look at and and take note of what we're saving energy first of all say that I'm extremely pleased as everybody here and also honored to be actually part of this group this is extremely important for us as a bank but also this whole Bank Group and I believe that this is sustainable principles need to be part of our DNA so it is not about our an activity it's a DNA needs to be part of everything we do when we look at the Nordics as the largest bank in the Nordic region we of course touch every aspect of society and then of course it's quite clear that the biggest impact we can have is by helping our customers our investing is to actually transform or enable them to transform their business models to more to more sustainable future so it is about products services advice that contribute that we actually that the choice is when we make together become and leaders to the right direction so we have a clear responsibility to make sure that there are markets that there are capital is allocated towards sustainable finance and in short to me it is about mitigating risk it is about improving resilience and particularly creating opportunities for our customers for to create a more kind of sustainable society and future so it is through our customers where we have absolutely the biggest impact then that means that we need to incorporate sustainability as I said in Audi in everything we do in every dialogue we have with our customers and and and constituents at this point that made where you know if if if the competition doesn't do it then then it makes it very difficult for for one bank to do it I mean do you have is that is that your experience no I think actually when I look today I think the more and more of the demand comes from from the customers I think we are here again we do choices together and if anything is we who need to start running faster I mean I think the the ABS always said that this is not only the right thing to do it is the smart thing to do ultimately I mean if we are not sustainable what is it it's a risk the risk actually increases your cost of capital and hence is actually financially the right thing to do as well of course it's the right thing to do also for society but also financially so I don't see a conflict there particularly as this is also driven by our constituents our customers and the broader society there is no conflict in - in this to me okay all right let me now turn to mr. TPA cho cho from from land bank and i will see you're very involved with the agricultural sector and you're tasked with transforming it and encouraging different agricultural practices and technologies so I mean what can I mean what really are the challenges there - to get all those sort of different stakeholders on side with something like this with these principles of responsible banking yes sir thank you very much I think the first issue to mention with regards to stakeholders is that it has to start with the customer base it will be very difficult to effect changes in the adoption of new practices that are sustainable without the engagement of organised business so in other words engaging in conversations in order to establish first and foremost a commonality of appreciation of the problem statement I mean in South Africa and indeed in the rest of sub-saharan Africa we already seeing significant shifts and changes in environmental manifestations as a country we just came out of a massive three-year drought but that was then followed by severe rainfalls the door of a thunderous nature and hail patterns and things like that causing extensive damage to the agricultural sector so what you didn't need is to work with clients but also work with input providers to the agricultural industry those who developed the chemicals and the fertilizers and other technological inputs that could enhance resilience and an greater adoption of more sustainable practices in the sector but also the one thing that I would like to mention is that South Africa in particular and certain parts of sub-sahara are very water scarce countries so practices relating to firstly the aggregation of bulk water whereas a hundred years ago a company could build Maine or sorry a country could build huge dams all over the country those opportunities are less today therefore efficiencies with regards to drip irrigation and other forms of efficient what I use so in a developing country context these challenges are even much much more pronounced I think my colleagues here from the banking Association of South Africa the big major private banks in South Africa and I know they're involved as part of this initiative as well so when you have a situation like you've had in South Africa we've had this long drought followed by extreme rainfall does that convince the wider society and the government that you know there really is a climate change issue issue as a country I think particularly at a policy level we have as a country gone beyond the point of conviction and about the imperative I think where we are is getting the agricultural industry organized agriculture to be more receptive and to be more adaptive of sustainable practices obviously when this kind of initiatives are introduced the hard question to ask for an interpreter is how does it affect my bottom line why should I change from a particular system of irrigation that I've been using for the past 50 years and adopt something new that is more expensive so it goes back to some of the points that my colleagues were making is about advisory and providing a solution that both financially and technically can enhance the sustainability and the financial viability of the client entity okay very interesting okay now let's turn a little bit to the sort of governance and culture of the bank because clearly to get these principles established a lot of things in a bank have to change so let me turn to mr. Cho from Xin Han and McKenney tell us a little bit about what you think should happen in terms of changing the overall management system in order to enforce the principles and what kinds of changes you're planning at Shinhan Bank to effectively achieve these results in cooperative measurement is required to realize a common future promote ease public values this paradigm shift requires moving away from traditional thinking and simple engagement in CSR activity are not linked to the main business is not enough to change the overall social and the environmental contesta therefore I would like to make three suggestions as effective measures to promote change within our company first I think it is necessary to integrate sustainability issues into business strategies and financial budget studies found that a company is companies that integrate each element into their our core activities to better than their appears over the long term I believe it as a sustainable strategy should consider creating values for positive society and shareholders that is why we are incorporating sustainability into our corporate strategy by doing so we are transforming our everyday work into activities and if it was our customers and societies in this process we can also create new clothes and opinions opportunities while managing a potential risk effectively second it is necessary to build cabinets it is in line with sustainability cause it is not possible to move abroad when responsibilities for CSR agenda are left to small team separated from the mainstream business development in 2015 Shannon had established CSR committee as a subcommittee of the Board of Directors rasmus CSR committee decided to launch our long term vision in environment eco transformation - ah - oh and that is insatiable China will invest and financially support o 28 trillion Korean War in the green industry by - 2013 okay can we leave it there cuz I've got to get a lot of different speakers in so on the idea of being led by the CEO get some input from crystals a mega Lou Perez I mean how as a CEO do you do you sort of lead the cultural change that you need to to implement these principles well the tone has to come from the top that's extremely important and I guess all of us here you know we endorse and we ascribe to that principle so that's that's number one number two I mean I I have been in the case of piraeus I have been leading a big transformation for the bank the last more a bit less than two years that I am at the helm and you know it is it is I I felt and I still feel how difficult it is to change the culture a lot more difficult than you know cost-cutting or changing the way you do some of the marketing pitches to clients and and and and achieving sometimes in less full-time employee numbers and so on so to be able to to lead from the top have a clear vision and in our case and you see how this leads also to the principles we are talking about the three words I kind of had as you know the leading words to be able to transform this organization that I'm leading was accountability meritocracy and transparency and they lead quite well with you know the the work of the principles that we are talking here because you need to be accountable you need to be transparent and set targets and achieve them and report them and of course you know you need to to deliver what you are promising so we see a lot of synergies between we're generally an organization wants to go with the principles of responsible banking that we are talking here and that's a framework which you know the more banks are up subscribe to and endorse it will be a better place to do business okay thank you very much legend we're moving into a sort of last half an hour I will give you a an opportunity for questions at the end are there any burning questions that anybody's got that they'd like to to raise over over the back there do you have a roving microphone give you a microphone from here once coming one's coming very good thank you very much my name is Jerome friends have no director of Bangkok we're very pleased to see all the commitments of banks to us sorry we're very pleased to see the commitments of banks to sign up to the principles for responsible banking especially the commitments to align your business with the Paris climate agreements we can't think of any other way of doing that but by phasing out your investments in the oil and gas and coal industry and we would very much like to hear from a few CEOs on how you're going to plan this in the next two years re you going to depart your business from the oil coal and gas industry thank you very much okay who would like to take that let's face it our world needs steel fossil energy and when you think about the sustainability of our economies and beyond political stability we need still the fossil energy as I've said I think it's building a transition in our company we are one of the leaders in energy overall we have committed very clearly on certain goals in terms of financing renewable energy we've stopped financing call project we are still financing oil gas is absolutely needed if you want to less coal in certain economies you need to have more gas let's be realistic and effectively building a transition as I've said not words a portfolio which is reducing in coal for example and we've a target which is less than 19 percent of our energy asset in 2020 and accompanying all our clients and our duties to be loyal to all our clients in their own transition okay Casper do you want to give us that because obviously Norway's big oil country exporter and big oil country so how do you deal with it I think it's I can only repeat what just was said actually we have pretty much the same same principle we need to transition this together with our clients we've made the same decision we do not take either new or finance any new coal investments that we have actually made very clearly we are in constant dialogue with our customers on on how we together can transition towards a more sustainable future so I think is that I think it is not just you know pulling away it's actually actively being part of this transition and that's the commitment we will continue to to live up to okay thank you very much now look the principles I've got I mean we're hearing from a range of very different banks here arm it's very interesting and they've got to apply to two banks in different contexts with different business models so I want to go now to tank Lucifer al-aziz because I want to talk about Islamic banking and obviously CIMB is very important bank for Islamic banking but perhaps you could give us an idea of how the principles would work alongside Islamic banking principles thank you okay all right well just to give you a perspective Islamic banking in cIMB Group is is quite dominant in the group as a whole 20% of our balance sheet Islamic assets across the region Islamic finance if we look at the principle of it looks at maximizing benefit and reducing harm so we we believe in the risk sharing and partner and really it has started long ago and it's always measured against SDG so the united nation s DG share the same objective to Islamic finance so if you look at it the CSR is the things that we do on Islamic finance is to reduce poverty providing affordable financing you know linking to zakat some of it food security looking but financial literacy as well as part of that salami finance and then gender equality CIMB for example believes in this and we have more women and men in our group an education funding towards education funding towards schools and also for for the people right so that's you know in a nutshell it's actually similar to what's been said here in the discuss today okay and the interesting thing that we we talked about earlier was how the CEO sort of leads the cultural change I mean how are you how are you approaching that in your bank I agree with you the lead the change has to start from the top and this the senior leader G team has to set it set the tone right lead it by example but most importantly is that culture has to cascade down right where we need to have the infrastructure the systems to be clear they make it clear to the troops that this is the new vision of the group where sustainability will be one of the key agenda and that will be linked at the end of the day back to compensation yeah please I fully agree with the tone at the top but what I see happening not just in our bank but in many banks the bottom up is also quite strong lots of young people coming into banks they really come for a different sort of banking and we should really embrace them and bring them to the top so I think that's quite important for this sort of initiatives that young people also get motivated by it okay but I was also at a at a conference recently where someone turned that around it was actually the the CEO of DBS Jewish Gupta and he said you know the old people are not he was talk about technology but he said you know all the folks can still get technology and they can still get sustainable development so it has we have to work together on this I think let me now turn to mr. Hugh how from ICBC because mr. who I mean you know China we know with its rapid economic development has faced huge environmental challenges and the government's responded by being a very proactive promoter of green finance so so give us a flavor for how the principles are going to help guide the Chinese banking industry in in insisting this green transformation in China China China now is recent very severe yo my man challenge II and the government the Chinese government started turning in the green that transformation building particularly that started in 2012 so that that time a lot of you know policies measures have been put in place in those practices policies and measures banks in Chinese banks have to you know how to us in negative data are only over the the credit created menu but also to the you know you management environmental benefits so the network of your two figures in by the end of 2017 the you know the green credit hours understand our standing amongst two of the 21 major banks in China a month 28.5 tween ERP and last year the you know the China has issued more than 240 bene MB RAM bond so even though these figures that you know process have been made less significantly the as I said before the the the principles for the successive Elmo development you know it's highly consistent with the the opportunities of Chinese an economy also the interest of Chinese banking industry so that we have Chinese industry to you know further support the government the country's economic transformation are the first of all the you know the principles is no way of target and the inclusive and the second principle provide you know the benchmark practice for a Chinese bank in Dutch to achieve the goal of human sustainable development or also the principles provide you know platform for Chinese bank industry to communicate the cooperate between the among the our international peers I believe that with the principles launched the more and more international bands we endorse the principles ICBC as one of the largest urban in the China but not to contribute a lot to this process we are very happy to join this the whole process we with this with this you know endeavor together we believe the nor do we be not just only Chinese banks doing it all together but everybody doing it all together as well my take away from that back now to 6x ethic and I mean transparency is a strong theme in the principles isn't it how do you see that being done in a ghulam to banks you know so that you actually everybody can see what's going on the employees the management the shareholders the customers transparency is the for the banking business transparency is the the essential value that we should we must have so I do not see any challenge if we start implementing or following the principles or frameworks in the a sustainable development so the maybe I did not understand the question but transparency internally and externally I don't the thing is I mean the reason it's in the principles it's you know it's not only what you do isn't it it's it's it's the world and society seeing what you do so I mean I guess it involves a lot of things doesn't it you know perhaps you explained it in the annual report perhaps you have shareholders meetings where you discuss it perhaps you have meetings with the employees in that sense I see only positive and we would be really proud and look you know strive to put all you know all our efforts and outcomes in all the reports and try to send a message and show all of our achievements to all stakeholders especially internally the bank staff and employees and management team and and even shareholders and investors they will be very proud to see our achievements in a sustainable development in in the sector in the country okay thank you I'm gonna open it up for questions in just a second but mr. cho cho i want you to address the question of what happens to a bank if it doesn't do this i mean does it fool you know if so if the banks the banks that don't sign up to the principles what's going to happen to them are they going to fall by the wayside that looked at this particular matter inside their land and agricultural development bank it is clear that if we don't do this if we don't adopt and practice this principles there will be no agricultural sector to finance in the first place and the bank itself will suffocate and die a natural death because if for instance the administration of pesticides and chemicals continues to degrade natural ecosystems in a way that we see if we continue on a path where the country uses more than sixty percent of its raw water for agricultural purposes and there is no efficiency that is brought into the equation if we continue on a path where more than ninety percent of the country's energy is generated through coal and we don't find that versification that has been talked about here and ensure the sustainability of not only the agricultural sector maybe using distributed renewable energy systems and so on if we don't adopt these measures then the very industries that the banks support and out of which the banks derive revenue and their own sustainability will be threatened I mean in South Africa for instance at the moment there is a great move I had the question earlier on about gas but we have made significant strides in terms of investing in renewables both solar and wind but you are aware that our neighbor in South Africa Mozambique has in recent years found substantial gas resources surely those could be exploited and be put to great developmental use to the extent that the kind of principles that we are discussing here embraced and practiced with efficacy yeah okay and are you are you sending a mission to Mozambique very closely our national infrastructure utilities that are responsible for energy but also for logistics in terms of developing large container terminals and transportation networks throughout the country and along the coast already working on a long-term strategic plan which is a strong partnership between ourselves and Mozambique as a country in order to to address these issues I mean our neighbors next door to the north will not be able to rise to any meaningful economic and social upliftment I'm referring to Zimbabwe unless the economy the resuscitation of the economy is driven by sustainability principles remember they also have a lot of potential in terms of land quality and good rainfalls but still have also significant amounts of gold and platinum reserves as well so they are mining practices and I was listening to my sister carefully have to be supported and be supported in a manner that is sustainable and you will know that the major commercial banks in South Africa and indeed the major development finance institutions in South Africa are key players in financing infrastructure and economic development in the rest of sub-sahara so these issues do not only relate to ourselves South Africa is a country but certainly have wider regional benefits and implications okay right well we've got just a few minutes left now so I'd like to take some questions I can see somebody over there we're gonna have to get you a microphone it's coming down the back here great so if you can say your name and your organization please my name is Peter Malan I'm the CEO of transcendent media capital my question is are in line with these new principals are banks allocating resources for investments into non financial energy and infrastructure projects because you're talking about culture change within organizations but also a lot of youth and young people are coming up with interesting newer technologies and inventions that can simultaneously help try to prepare our society for climate change as well as try to obviously reverse the effects I mean a lot of the investment is looking at reduction of carbon emissions and things like this which is absolutely necessary but the fact is we're already experiencing the effects of climate change now and preparing our societies and our people and our environment for those effects is equally important at the same time so is there going to be funding as part of your measurement of social impact in alignment with the policies going to extend outside of your traditional investment strategies okay investing in renewables who would like to take that I was saying that I already commented on increasing investment in South Africa and renewables but on the issue of social investment I think it goes into into education if I take the agricultural sector for instance one of the biggest problems in this particular sector is that social housing conditions are not verities and for workers on farms in some instances schools and education is not the best of quality in these environments health services are not brought to rural environments in the most decent of ways so yes as an institution for instance when we do our praise our frameworks on projects we frame that into the financing equation and say they shall be in addition to financing machinery and plant and equipment and production there shall be a parallel program of investing in access to social services decent housing decent health facilities in a given region as well as a decent schooling systems but what is requires is that a bank cannot do that alone has the issue of stake holders that was mentioned earlier on you then require a huge effort in terms of mobilizing corporate social investment maybe from the corporate sector but also government in terms of an input that they can make so banks are no longer simple credit granting organizations they are orchestrators of life improving ecosystems basically all the parts Peter plum you want to add to that as an ethical bank I'm sure you're investing heavily in renewables yes we do we have about one third of our balance sheet in renewables that's about what the central bank allows us to do otherwise you have concentration limits but to pick up on your question what we do more and more is not anymore doing the big wind farms there are other parties in the market who do that but there are a lot of community initiatives and they do not only invest but also want to own the grid what is a very interesting concept that not a big company on cigarette but the local community may be serviced by a big utility so all these new forms of ownership of different way of commitment participation I think is extremely important to let everybody join this transformation otherwise it's just the big corporates and that will not work people have to feel feel empowered and participative so that's happening and you can finance that that's very interesting for banks as well right and if I just may add a word i I don't know which fits with your question but beyond effectively financing renewable as such there are industries like the shipping industry have in mind the shipping industry which will he'll have to go through a change also in how to limit its own carbon emission through new technology or very different diesel if you wish which will request significant investment and the banking community in ourselves will help the shipping industry to do so on so it's not just financing direct really the Renewable but also having certain sectors to also contribute ok I can squeeze one more question oh it's about three over here all right we'll try and get two in ok so I won in this row that's it thank you very much Rennie cassimy chief resident at the national capital market Association I'd like to ask a question about the possible role of financial and banking supervisors to what extent you think we should explore more by region or globally the differentiated risk associated with ustainable assets of green assets which could lead either to provide some incentive capital incentive for green and sustainable auto-reverse a penalizing brown capital penalizing factor thank you okay caspere's do you wanna have a go that I think you can definitely play a big role we also have a an expert group working with the Commission here in in in in European Russell's on this and I would probably move more to penalizing if you do too much incentives that may also create some risk that you don't want to see but I think you can penalize overtime any and there's actually a good argument for penalizing because you're penalizing for long term risk and I think it goes very well with the the financial language we are using today so I think that is I think something I would encourage and certainly we are we have we are part of working group thinking about this taxonomy and with the with the European Commission to actually move towards that but of course it needs to be well well thought through but definitely as he put potentially suffer losses do you want to tackle that can you have too many green assets and then is it is it is it too much for risk yeah well I think the question was also about engaging the policy makers the regulator's the central bank's so for us and we have this asset being banking integration framework where you know we find that to get all 10 ASEAN countries to agree on something so easy right so what we moved on is to more bilateral a discussion between two countries and the central bank but going forward I think we are seeing positive traction on this and you know we've have our own team in various countries to engage on this but back to the earlier question I think what banks are also doing today is to give preferential rates for for foreign renewable energy right even all the way up to consumers where if you have a hybrid car for example you get better rates and we do also push more to it we do buy energy financing thank you okay now the lady here have you got a microphone now we need to get your microphone coming thank you I'm an owl from Casablanca finance city my question is on measuring the impact it's great to witness this great momentum going on globally but I think we're not quite there yet intramural results so I would like to know what are the KPIs that you follow to ensure that we are aligned with the Paris agreement objectives and that these measures are having actually some impact thank you all right that's a tough one isn't it who'd like to take that I can just say one thing from Europe there is this big 1/2 initiative what is some big banks are involved in that as well and they tried to measure carbon in the assets in the portfolio of assets and then try to really measure a year after year until 2030 and beyond to see how carbon in the portfolio banks can really reduce and that is a very concrete KPI banks can refer to it's not easy it's quite complicated and our different systems banks are using different systems but there is this direction of measuring co2 a much more difficult one is measuring social inclusion that is the complicated one carbon is doable I think social inclusion will be much more difficult ok mister he's a very challenging question for me because you know yes from my point of view on the the I think for respects for the bank banking the bank should have their own you know measures to you know no matter how how the efficiency could be or might be or have been achieved the ICBC we you know we have our measures internal measures so he can you know measures how how what we are where we are and what we have done and the efficiency what is the rank if that of the efficiency for us it is in the you know we we once did the measures in children in 2017 by you know by the green green credit credit how did the benefits from the environment what is to to what its event how do you know I'm not a indeed so the but but I think sort anything you in the Uni in the progress the I need the the international efforts the uniform measures thank you thank you thank you very much okay look I think my big takeaway from the discussion has been you know it has to be not just a bank approaches and there has to be a whole social approach the government has to be involved all the different stakeholders have to be involved but I think obviously is having something like the principles for responsible banking these are very useful as a driving tool and a force for kind of putting these things into effect and actually getting other people involved in the whole process so just to reiterate one or two points that were made earlier but obviously the principles were in a consultation stage so which is starting today's so go to the unit fi webpage and make your comments known there and add your points of view you can learn more and discuss with the founding banks by visiting the principles stand on the second floor so afternoon and tomorrow and you can also show your support and join the initiative by becoming an endorser and you have to go to the unit fi webpage to do that and now my last duty before lunch is to thank our our excellent team thank you very much please give a big round of applause [Applause]