Disseminating CSR within the Italian banking industry ...€¦ · 9Yearbook of CSR auditing and consulting firms, benchmarking providers, rating agencies, research centres and training

Disseminating CSR within the Italian banking industry Disseminating CSR within the Italian banking industry -- the activities of the Italian Banking Associationthe activities of the Italian Banking Association

Angela Tanno – CSR Technical Assistant, ABI

“Managers’ Role at Social Responsibility developmentin profitable and non-profitable organizations”

THE 2nd INTERNATIONAL CONFERENCE SOCIAL RESPONSIBILITYAND CURRENT CHALLENGES 2007

Maribor, 8 June

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Index

• ABI – a brief overview

• ABI – CSR activities

• ABI - The CSR issue

• The relevance of CSR for the Credit Sector – some examples

• ABI’s Guide for banks - The Report to stakeholders

• ABI – The CSR issue and some food for thought

• Convergence Program

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WHAT IT IS

The ABI is the trade association of the Italian banking and financial sector. It represents, protects and promotes the interests of companies in the sector.

The ABI speaks on behalf of all banks: small, medium and large. It also gives a voice to the financial sector, leasing and factoring companies, trustee companies, stock brokerage companies (SIMs) and asset management firms (SGRs).

ABI – a brief overview

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WHAT IT DOES

As its by-laws state, the ABI’s objectives involve

promoting initiatives for organised, stable and efficient

growth of the banking and financial system, with a view

to competition that is consistent with national and

European Union law.


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ITS OBJECTIVES

1) collaborating on a national and international level to resolve issues regarding the credit and financial sectors, and more general problems for the country;

2) working for innovation in regulations and laws;

3) organising studies and debates;

4) defining consistent guidelines regarding labour relations, including the execution of collective labour agreements;

5) providing information, technical assistance and advice;

6) drafting codes of conduct;

7) promoting, in respect of the principles of free market competition, initiatives for collaboration between its members;

The ABI represents the Italian banking and financial system in all

international seats, including the European Banking Federation and the

European Mortgage Federation.


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THE ORGANISATION

Structured in seven departments: one under the General Manager’s staff,

five dedicated to external activities, and one to internal activities.

• GENERAL MANAGER’S STAFF Corporate Social Responsibility Unit

• LEGAL DEPARTMENT • UNION AND LABOUR DEPARTMENT• MARKET SERVICES DEPARTMENT• EXTERNAL RELATIONS DEPARTMENT• RESEARCH CENTRE• INTERNAL RESOURCES DEPARTMENT


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THE ABI SYSTEM


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● CSR Working Group (since 2001)

Member banks accounted for 80% of total banking assets

● CSR Unit (since 2002)

is part of the staff of the General Manager

● Main activities

• Research and analysis • Development of practical tools • CSR networking and participation in several fora on CSR• Events

The Italian banks and ABI: what we are doing on CSR

ABI – CSR activities

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ABI’s activities on CSR aims:

• to contribute to a better understanding of the subject between member banks and their stakeholders;

• to raise consciousness on the opportunity of investing in long-term sustainability business strategies;

• to represent the Italian banking system’s activities on CSR to the major stakeholders;

• to promote a voluntary approach on CSR based on innovation, continuous improvement and sharing of best practices.

ABI’s CSR activities - targets


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NETWORKING

EVENTS


RESEARCH AND ANALYSIS

TOOLKIT

AND

TRAINING

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a. Research and analysis

TARGETContribuiting in providing banks and interestedstakeholders a conceptual and practical framework relatedto CSR and financial issues and activities.


CSR Glossary, 2002, to encourage a common understanding of the issue.

CSR academic overview with a panel of experts who contributed to a broad theoretical recognition on the issue that was published in June 2005.

Ad hoc working group on microfinance issues to develop a better financial inclusion.

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TARGETDeveloping specific instruments to support interested banks integrating CSR into their own strategies.

b. Practical tools


CSR guidelines for the banking sector (also in an e-book version) which aims to supports banks to implement CSR into their core business strategies.

Yearbook of CSR auditing and consulting firms, benchmarking providers, rating agencies, research centres and training providers such as universities and business schools, public relation companies. Italian focus with an European overview.

Training courses on CSR and sustainable reporting

“The Stakeholder Report: a Guide for Banks”

E-learning products focus to support internal training on CSR

Available also in English

Soon available also in English

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c. Networking

TARGETRepresenting the Italian banking system’s commitment to CSR and contributing to developing the debate on CSR between the banks and theirs stakeholders.


Forum per la Finanza Sostenibile - the EUROSIF Italian branch

UN Global Compact

National Committee for the International Year of microcredit

ISO WG on SR and the Italian mirror committee

Research centres/business organizations (e.g. Sodalitas/CSR Europe)

…

Global Compact Italia promoted by the Italian Ministry of Foreign Affairs and ILO

Unep-Financial Initiative

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d. EVENTS

TARGETProviding a better understanding on present and future trends on CSR through the sharing of best practices and the exchanging of views among different stakeholders


Investing in Microfinance. The role of Banks. ABI, Milan, 2004

Migrant banking in Italy. Immigrant remittances and development. Abi-Cespi, Rome, 2004

Corporate governance, social responsibility and sustainable investment.Abi, Eurosif - Forum Finanza Sostenibile. Rome 2004

III CSR Forum. Rome, 29th - 30th January 2008.Coming next...

I CSR Forum. Rome, 2005

Presentation of the Italian version of the G3, ABI- GRI, Rome, 2007

II CSR Forum. Rome, 2006

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ABI – the CSR issue

CSR: a company’s strategic orientation

Source: ABI’s Operational Guidelines on Banking CSR (2005)

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6

CSR

Patti Chiari Protection

of privacy

Accountability

CommunicationsTo customers

Ethicalcode

On-lineaccess

Certifications

CharterOf values

Environmentalpolicy

Crèche

Microcredit

Diversitymanagement

Training

Ethicalfunds

Communitygivings

ABI – the CSR issue

The possible paths towards CSR: a modular approach

Source: ABI’s Operational Guidelines on Banking CSR (2005)

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The relevance of CSR for the Credit Sector – some examples

Financial inclusion

Banks can support the financial inclusion of new customers, through innovatory dedicated methods and tools, complying with criteria of cost-effectiveness.

•Microfinance

•Migrant banking

•Financial education

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The relevance of CSR for the Credit Sector – some examples

Socially responsible investments (SRIs)

Socially Responsible Investment (SRI) combines investors' financial objectives with their concerns about ESG issues (Environmental, Social, Governance).

SRI is based on a growing awareness among investors, companies and governments about the impact that these risks may have on long-term issues ranging from sustainable development to long-term corporate performance.

www.eurosif.org

www.finanzasostenibile.org

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The relevance of CSR C for the Credit Sector – some examples

Accountability

Sustainability reporting is growing among Italian banks.

In 2006, banks accounting for 72 percent of total assets and 82 percent of branches provided a sustainability report.

(Source: CSR ABI’s Lab 2006)

Stakeholder Accounting is a crucial element in the relationship between an enterprise and its

stakeholders

those who, thanks to their engagement in such process, contribute towards developing this social

responsibility tool

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A number of different reporting and communication tools can be used to stakeholder accounting, with the “Report to stakeholder”being, amongst them, the most pertinent one.

Social report

Environmentalreport

Integratedreport

Intangiblesreport

Sustainabilityreport

Report tostakeholders

ABI’s Guide for banks - The Report to stakeholders

“Reporting to Stakeholders: a Guide for Banks”

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Reporting to Stakeholder

The report is a result of the process of accounting and reporting to internal and external stakeholders and aims to offer information and contents as effective as possible from the “viewpoint” of stakeholders, who will gradually take an increasingly active part in the various stages of the process.

This report – that helps evaluate, illustrate and improve Csr performances in an organisation – is rooted in the strategic decision to embed Csr in the enterprise, to establish a dialogue and communicate the enterprise’s commitment to stakeholders and to account to them for their performance against the commitments undertaken.

The Report to Stakeholders is a Csr tool that summarises a global view of the enterprise and that aims – from the "viewpoint" of stakeholders including shareholders – to present actual and target performances.


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Reporting to Stakeholder

This Guide falls into 4 parts:

● stakeholder accounting: the phenomenon, concepts and reference terminology, requirements, scope and nature of the process and its objectives;

● the different forms of stakeholder accounting: tools, principles and reference guidelines;

● an operational methodology to initiate and manage stakeholder accounting: steps for the implementation of the report, stakeholder engagement processes, communication and assurance; the proposed structure of the report to stakeholders;

● food for thought on open issues and possible developments.


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Different players engaged

ABICSR Unit

ABIIn-house team

Econometica

Inter-bankWG on CSR

Stakeholders - FFS


Advisory Group

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Stakeholder engagement in 5 steps


ABI (CSR Unit); Econometica; Gruppo per il Bilancio Sociale

5. Discussing the draftGuide

ABI (CSR Unit); Econometica; Members of Forum per la Finanza Sostenibile

4. Consulting with the stakeholders

Stakeholders (e.g. Consumer Associations, NGOs, Universities, etc.)

3. Including focus sheets

ABI (CSR Unit, internal team); Econometica; Advisory Group; InterbankWG on CSR

2. Working on the Guide

Interbank WG on CSR; ABI (CSR Unit, General Management, Executive Committee)

1. Starting the project

PlayersStaged development

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Consulting with the stakeholders


Soci sostenitori:

Soci ordinari:

Members of Forum per la Finanza Sostenibile (2006)

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Stakeholder engagement challenges

ABI – The CSR issue and some food for thought

Cultural development process is required of all of the parties involved

CSR cannot exist without interacting with stakeholders; likewise, it is crucial that stakeholders are willing to establish a pro-active and constructive relationship with the enterprise, on this very ground.

Inclusivity of the stakeholders

Representation of interests

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Convergence Program

Convergence Program: enhancing public-private dialogue on regulatoryreforms

What? The Convergence Program promotes financial sector modernization through micro-regulatory reforms designed in partnership by authorities and market participants.

Where? In the South-East European countries. In Romania, the most advanced implementation. To date, also Albania and Croatia.

Convergence operates at two levels:

• it promotes the establishment and supports the activities of a high level public-private country steering committee that considers micro-regulatory change proposals before official regulatory action is launched;

• it helps orchestrate the analytical activities of public-private working groups that prepare regulatory change proposals through a dedicated resident team.

How?

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RIA knowledge transfer and capacity building program (1)

Convergence Program: Impact Assessment knowledge as crucial toolfor enchancing regulatory dialogue (ex-ante and expost) between

regulatory authorities and other affected stakeholders

In Romania

Step 1

Step 5: Internal peer review

Action Plan Drafting

Step 6: presentation of draft proposal along with RIA

- 2 RIA case studies from UK FSA and Irish FSA;- Participants illustrate RIA experience (documents & record) in Romania;- Preparatory RIA work: appraoch and workplan on identified regulation.

Early June to end of June

• Key steps in a standard RIA Process

July and early September

Phase 2 – Applying RIA to an existing

Step 1: RIA-eligible regulatory draft identification and impact assessment briefing meeting

(An action plan could be drafted in order tomake RIA compulsory for the initiators of aset of regulatory measures as well asinternal solutions could be foreseen in orderto establish a Unit responsible for, andcapable of, undertaking RIA)

Step 4: internal peer review

Step 2: information gathering and elaboration

Step 3: RIA Paper drafting

Step 5: RIA paper presentation (& redrafted regulation)

Step 3: consultation process

Phase 4 – RIA Capacity Building

As from September

Step 2: preparatory phase approaching consultation process

Phase 3 – Introducing RIA in the official

Step 4: Feedback of consultation activity and elaboration

• Experience on executing Impact Assessment in Gerrmany

• Informal session on a case study and interaction with participants

Phase 1 – Assembling a RIA TeamMay 16-17

• A framework for assessing the costs andbenefits of financial regulation;

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RIA knowledge transfer and capacity building program (2)

Convergence Program: Impact Assessment knowledge as crucial toolfor enchancing regulatory dialogue (ex-ante and expost) between

regulatory authorities and other affected stakeholders

At SEE level

• When: September 12-14, 2007;

• Where: Centre of Excellence in Finance (Ljubljana);

• Objective: Among other things, The course also highlights the crucial role of the consultation of interested parties as a key step in impact assessment and, bottom-line, in policy design;

• Web address: http://www.cef-see.org/program_sep2007_hdbfr.htm.

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Thank you

[email protected]

+39. 06. 6767 570

Documents

Disseminating CSR within the Italian banking industry ...€¦ · 9Yearbook of CSR auditing and consulting firms, benchmarking providers, rating agencies, research centres and training