INTEGRATED WORKPLAN 2018–2019 2019–2020€¦ · WORKPLAN 2018–2019 July June 2019–2020 July June. 2 | UNEP FI Workplan 2019–2020 Helping Banks, insurers and investors embed

INTEGRATED WORKPLAN2018–2019July June2019–2020July June

2 | UNEP FI Workplan 2019–2020

Helping Banks, insurers and investors embed sustainable finance into their business strategy

Guided by the UNEP FI secretariat, UNEP FI members can take part in a broad range of technical projects and leadership initiatives. The workplans run on an annual basis from July to June. You can take part in work that is designed specifically for your industry or join cross-cutting initiatives that go deeper into specific sustainability themes that are relevant across the banking, insurance and investment sectors.

In the following pages you can view the activities available to members over the period July 2019 to June 2020 organised by industry and region.

Contact your regional coordinator for more information and to get involved.

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Insurance activities

Investment activities

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Introduction


Implementing the Strategythrough the Integrated Workplan 1/ 2

Strategy StatementOur strategy to achieve this mission is:

◾ to create the most effective network for sharing knowledge and best practice; and

◾ to amplify the collective voice from the finance sector in policy debate.

Success is measured through the growth in the quantity and quality of

“sustainable financial institutions”.

StrategyIn 2017, the Global Steering Committee led the development of the UNEP FI strategy for the next 5 years, 2018–2022.

Mission statementAccelerate the global development of financial institutions that integrate sustainability as a value creation driver and which contribute to the UN Sustainable Development Goals.

Vision StatementTo create a financial sector that positively impacts and serves people and planet.


MEMBER LEVEL:

Sustainability leaders

Working towards sustainability

Membership growth

PROJECT LEVEL:

Established business imperative

RESOURCES LEVEL:

Strengthened networking capacities

Implemented by UNEP FI partnership

Implemented by members

GOAL: Grow sustainable financial institutions

Strategic goal and the integrated workplanThe strategic goal to grow sustain-able financial institutions is not achieved by UNEP FI but through the decision and efforts of UN Environ-ment FI members to develop itself to-wards a sustainable institution. The principle objective of the UNEP FI integrated workplan therefore is to ensure the UNEP FI’s offerings provide the best support for all mem-bers to work towards this goal.

Strategy wheels and the integrated workplan In the Strategy Wheel, the strategic goal is the centre wheel identified as the member level. This wheel is supported by two outer wheels which are at the project level “es-tablished business imperative” and at the resource level “strengthened networking capacities”. These two outer wheels and its components provide the strategic foundation of UNEP FI’s integrated workplan. The 2018–2019 workplan has been built to ensure each activity implement one or more strategic components in the wheel.

2 / 2Implementing the Strategythrough the Integrated Workplan


Strategic Components & the Integrated Workplan

PROJECT LEVEL: Established Business Imperative

Sustainability diagnostic Norm setting & uptake

The need for transparency and accountability with regard to ESG related activities of financial institutions is growing. In response, the development of the UNEP FI Sustainability Dashboard as the overarching framework and self-assessment diagnostic tool to support sustainability integration for members and the Pilot Projects on implementing the TCFD Recommendations by banks, investors and insurers are projects that respond to this strategic component.

UNEP FI has framed the sustainable finance agenda through the development of principles, standards, statements of commitments, etc. For example, the development of the Banking Principles and the Fiduciary Duty in the 21st Century project respond to this strategic component.

Develop methodologies, guidance & tools

Support leadership action & market transformationMany UNEP FI activities provide practical methodologies and tools to assist financial institutions in applying sustainable finance to their business decision-making, products and services. For example, the global guidance on the integration of ESG risks into insurance underwriting in development will be a major tool for the insurance industry to identify and define ESG risks from an insurance underwriting perspective, while the framework for natural capital-related portfolio risk will help financial institutions to evaluate the dependencies of economic sectors on natural capital.

Many UNEP FI activities are initiated and led by sustainability leaders with a vision to transform markets. One such example is the Positive Impact Initiative which is working to develop both the demand and supply of the SDGs finance market. The Energy Efficiency Finance work, in collaboration with the G20 and European Commission, is aiming to enhance energy efficiency investment and contribute to standardization, thereby transforming the energy efficiency market to full maturity.Globally facilitate and promote leadership on sustainability by financial institutions. Examples include raising awareness of members’ leadership activities.

The section provides an explanation of each of the strategic components in the two outer wheels and examples of activities that implement the strategy

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Strategic Components & the Integrated Workplan

RESOURCE LEVEL: Strengthened Networking & Capacities

Maximize community building Leverage UN network

As a unique partnership between the UN and the finance sector, one of UNEP FI’s offerings is its ability to convene a wide range of stakeholders under a neutral platform. The 2018 edition of the UNEP FI Global Roundtable in Paris in November will be a key global agenda-setting event on sustainable finance, bringing together hundreds of leaders from all parts of the financial system as well as from civil society, academia, government and the United Nations. Regional Roundtables in 2019 will help foster UNEP FI’ regional networks.Engage the broader membership in work programme implementation, through relationship management and activities such as communications to inform members of planned projects, progress, consultations and outputs.

The ability to mobilize a wide range of expertise from within the UN system is another strength increasingly utilised by UNEP FI. For example, UNEP FI’s natural capital and sustainable landuse activities work extensively with the UN Environment’s Ecosystems Division. UNEP FI’s Social Issues work bridges UNEP FI with specialized UN fora on human rights such as the UN Office of the High Commissioner on Human Rights and the UN Working Group on Business and Human Rights.

Scale up training programme

Partner with institutions that provide training to finance professionals to expand capacity building on sustainable finance, and to broaden knowledge development on emerging best practice, methodologies, tools, guidance etc.Strengthen communication & engagement

Strengthen financial sector commitment through growth in signatories to Statement.Identify priority themes and initiatives across regional hubs, undertake outreach to key stakeholders to grow networks, and provide market intelligence on priority countries.To support the effectiveness of implementing the workplan and maximise its impact, the Secretariat will continue improving its communications and engagement activities. For example, it has invested in a new Customer Relations Management systems and is looking at upgrading the UNEP FI website. Membership surveys are to be contacted on a regular basis to review and improve on the membership engagement strategy.

Maintain & build partnerships

Supporting Institutions play a significant role in UNEP FI’s activities. For example, many Principles for Sustainable Insurance projects such as the development of a risk management protocol for Illegal, unreported and unregulated (IUU) fishing and creation of Insurance Development Goals for Cities are made possible through collaborations with partners. UNEP FI’s regional activities also rely on regional and national partners such as the Banking Associations and academia.

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Q3 Investment:Banking: ◾ Launch of the Principles for Responsible Banking

◾ Launch of the Net-Zero Asset Owner Alliance

Q4 Cross-cutting: ◾ Launch of the Sustainable Blue Economy Finance Initiative

Investment: ◾ Launch of the final report of the Fiduciary Duty in the 21st Century

Highlights

Cross-cutting:

◾ Start project on setting Science-Based Biodiversity Targets

Investment:

◾ Start the Phase II of TCFD Investment Pilot Working Group

Insurance: ◾ Launch of the PSI global ESG guide for non-life insurance business

Q1

Banking: ◾ Launch of the Impact Identification Tool ◾ Launch of the Guidelines on the Voluntary Application of the EU Taxonomy for Banks

Insurance: ◾ Publication of TCFD Insurance Pilot Working Group interim results

Q2

Cross-cutting: ◾ Global Roundtable, Mexico City, 13-14 October 2020

Q3


1. Cross-cut-tingactivities

Strategy Components

Develop methodologies,

guidance & tools

Norm setting & uptake

Support leadership

action & market transformation

Sustainability diagnostic

Leverage UN network


Maximize community

building

Scale up training

programme

Strengthen communication & engagement

Emerging Concepts ◾ Financial inclusion ◾ Banking and insurance industries supporting a just transition


Banking | Insurance | Investment

1.1

Guidance on natural capital assessments in asset classes and sectors - initially agricultureCo-funded by: Swiss State Secretariat for Economic Affairs (SECO)/member

Q3 Q4 Q1 Q2

1.2Pilot projects for banks, insurers and investors to implement the FSB Task Force for Climate-Related Financial Disclosures (TCFD) recommendations

Q3 Q4 Q1 Q2

1.3Support the New Deal for Nature at CBD CoP 15Science-Based Biodiversity TargetsCo-funded by: Swiss Federal Office for the Environment (BAFU).

Q3 Q4 Q1 Q2

1.4Review of Principles for Positive Impact Finance (Phase I)Co-funded by: European Commission

Q3 Q4 Q1 Q2

1.5Global study on positioning circular economy within the financial sectorCo-funded by: UNEP

Q3 Q4 Q1 Q2

1.6Develop work in the Energy Efficiency Financial Institutions Group and build out the UNEP FI Energy Efficiency Finance PlatformCo-funded by: European Commission

Q3 Q4 Q1 Q2

1.7Positive Impact Finance Community - Finance-corporate-public dialogue for impact management and solution-buildingCo-funded by: European Commission

Q3 Q4 Q1 Q2

1.8SDG Climate Facility programme in the Middle EastCo-funded by: UNDP/Swedish International Development Cooperation Agency

Q3 Q4 Q1 Q2

1.9 Support development of sustainable finance roadmaps - initially in Canada, Australia and Panama

Q3 Q4 Q1 Q2

1.10 Support development of sustainable finance taxonomy in the European Union

Q3 Q4 Q1 Q2

1.11

Sustainable Blue Economy Finance Initiative to implement the Sustainable Blue Economy Finance Principles – Develop community of practiceCo-funded by: European Commission

Q3 Q4 Q1 Q2


1.12

Ecosystems training series - (1) natural capital assessments; (2) deforestation in commodity supply chains, (3) forest and landscape restoration financeCo-funded by: SECO/member/Global Environment Facility (GEF)

Q3 Q4 Q1 Q2

Banking | Investment

1.13Positive Impact Model Frameworks for Corporate Finance & Investments - Working group to test applicationCo-funded by: European Commission

Q3 Q4 Q1 Q2

1.14 Technical assistance for application of natural capital assessments framework (ENCORE) by banks and investors

Q3 Q4 Q1 Q2

1.15Developing financing models to remove deforestation from commodity supply chains - initially in Brazil, Paraguay Indonesia and Liberia

Q3 Q4 Q1 Q2

1.16Formulating business and investment models for REDD+ finance in Costa Rica, Colombia and PeruCo-funded by: GEF

Q3 Q4 Q1 Q2

1.17 Valuing green factors in commercial mortgage-backed securities (CMBS)

Q3 Q4 Q1 Q2

1.18Impact Management Project (https://impactmanagementproject.com/)Co-funded by: European Commission

Q3 Q4 Q1 Q2

Insurance | Investment

1.19 Understanding the physical risks & financial materiality of climate change in the property sector

Q3 Q4 Q1 Q2


2. Bank-ingactivities

Strategy Components


guidance & tools


Support leadership



Leverage UN network


Maximize community

building

Scale up training

programme



2.1Develop Principles for Responsible Banking implementation guidance - Impact identification/assessment working groupCo-funded by: European Commission (part)

Q3 Q4 Q1 Q2

2.2 TCFD banking pilot Phase 2: Adoption of methodologies to implement FSB TCFD recommendations in lending

Q3 Q4 Q1 Q2

2.3

Supporting Principles for Responsible Banking implementation: ◾ Impact identification ◾ Target setting ◾ Accountability mechanism ◾ Dashboard for self-assessment

Q3 Q4 Q1 Q2

2.4 Launch Principles for Responsible Banking Q3 Q4 Q1 Q2

2.5 Collective effort on climate Q3 Q4 Q1 Q2

2.6 Banking & European Taxonomy Initiative - Develop a Guidelines on the Voluntary Application of the EU Taxonomy for Banks

Q3 Q4 Q1 Q2

2.7

Online courses on “Climate Change & the TCFD: Risks & Opportunities for the Banking Industry” in English and Spanish (potentially in Portuguese too)Co-funded by: Course fees covered by participants institutions

Q3 Q4 Q1 Q2

2.8

Online & in-person courses on “Environmental & Social Risk Analysis (ESRA)” in English, Spanish, French and ChineseCo-funded by: Course fees covered by participants instiutionsUpgrading of the online course on ESRACo-funded by: CAF—development bank of Latin America

Q3 Q4 Q1 Q2


3. Insur-anceactivities

Strategy Components


guidance & tools


Support leadership



Leverage UN network


Maximize community

building

Scale up training

programme



3.1 Develop Principles for Sustainable Insurance global ESG guide for non-life insurance underwriting (version 1.0)

Q3 Q4 Q1 Q2

3.2 Develop PSI-WWF-UNESCO guide to protect World Heritage Sites Q3 Q4 Q1 Q2

3.3 TCFD insurance pilot: Develop methodologies to implement FSB TCFD recommendations in underwriting

Q3 Q4 Q1 Q2

3.4Develop UNEP- PSI global study on the risks of plastic pollution, marine plastic litter & microplasticsCo-funded by: UNEP

Q3 Q4 Q1 Q2

3.5Develop PSI grounding paper on environmental pollution, liability and sustainable insuranceCo-funded by: DB Insurance

Q3 Q4 Q1 Q2

3.6Support national and sub-nation sustainable insurance roadmaps, strategies and/or action plans (Australia, Brazil, Canada, Costa Rica, Egypt, Nigeria/Lagos, US/California)

Q3 Q4 Q1 Q2

3.7 Support the development of the V20 Sustainable Insurance Facility

Q3 Q4 Q1 Q2

3.8 UN Environment’s Sustainable Insurance Forum for Supervisors (SIF) engagement

Q3 Q4 Q1 Q2

3.9 Set the global sustainability agenda for the Life & Health industry Q3 Q4 Q1 Q2

3.10 Set the global sustainability agenda for the Marine insurance industry

Q3 Q4 Q1 Q2

3.11 PSI Market Events: Latin America & the Caribbean (October 2019); Oceania (November 2019); Europe (November 2019)

Q3 Q4 Q1 Q2


4. Invest-mentactivities

Strategy Components


guidance & tools


Support leadership



Leverage UN network


Maximize community

building

Scale up training

programme



4.1Fiduciary Duty in the 21st Century (Phase II) - Implementing the roadmap recommendations in China, OECD, France and USACo-funded by: Generation Foundation

Q3 Q4 Q1 Q2

4.2Investor Energy and Climate Action Toolkit (InvECAT) - Develop tools to align with science-based targetsCo-funded by: European Commission

Q3 Q4 Q1 Q2

4.3

TCFD Investors Pilot Working Group ◾ Launch the Real Estate Portfolio component of Phase I Changing Course report in Q4 2019

◾ Start the Phase II pilot in Q1 2020

Q3 Q4 Q1 Q2

4.4

A Legal Framework for Impact (Phase I) - Develop legal understanding of how investors can manage fiduciary duty and sustainability impact dutiesCo-funded by: Generation Foundation

Q3 Q4 Q1 Q2

4.5 The Investor Agenda (https://theinvestoragenda.org/) Q3 Q4 Q1 Q2

4.6 Supporting G20 2019 Japan: G20 Global Summit on Financing Energy Efficiency, Innovation and Clean Technology Q3 Q4 Q1 Q2

4.7 Global Environmental, Social and Governance (ESG) Action Real Estate Investment Survey

Q3 Q4 Q1 Q2


5. Re-gionalactivities

Strategy Components


guidance & tools


Support leadership



Leverage UN network


Maximize community

building

Scale up training

programme


Across all regions, regional co-ordination will include activities to support market leadership on sustainability, to engage policymakers on creating an enabling environment for sustainable finance, and to undertake outreach to expand the sustainable finance community.

Activities to engage members in global work plan implementation across industries and thematics include:

◾ Identifying and responding to regional priorities and needs. ◾ Relationship management with members and their subsidiaries

◾ Raising awareness of opportunities for members to participate in relevant activities

◾ Communications to engage members in project pipeline, initiation, project updates, and consultations; disseminate

and follow up on outputs for adoption and uptake ◾ Sharing knowledge and best practice –convening meetings, webinars, calls, events for regional sharing of knowledge and best practice to complement the global workplan; facilitating peer-to-peer learning for cross-industry and thematic learning and development.


5.1Peer-to-peer learning, enabling environment and baseline study on sustainable finance in the Arab region Co-funded by: League of Arab States

Q3 Q4 Q1 Q2

5.2Climate Risk Survey for banks in Latin America and Caribbean on TCFD recommendations. Co-funded by: CAF

Q3 Q4 Q1 Q2

5.3Side-events at Climate COP 25 in SpainCo-funded by: Finis Terrae University

Q3 Q4 Q1 Q2

5.4Studies and community building for Sustainable Finance in Ghana and MauritiusCo-funded by: Partnership for Action on Green Economy

Q3 Q4 Q1 Q2

5.5

Environmental & Social Risk Analysis Introductory Training Workshops in China, Dominican Republic, Honduras, Kyrgyzstan, Paraguay, etc and in other countries. Co-funded by: UNEP, PAGE, Sponsorships

Q3 Q4 Q1 Q2

5.6Peer-to-peer learning AfricaCo-funded by: Financial institutions

Q3 Q4 Q1 Q2

5.7Peer-to-peer learning Latin America & CaribbeanCo-funded by: Financial institutions

Q3 Q4 Q1 Q2

5.8 Regional & country engagements in Africa & Middle East, Asia Pacific, Europe, Latin America & the Caribbean and North America

Q3 Q4 Q1 Q2

5.9UNEP FI 2019 Regional Roundtables - N. America in NY (Sep 2019); L. America in Sao Paulo (Oct 2019); Europe in Luxembourg (Nov 2019)

Q3 Q4 Q1 Q2

5.10 Tokyo Dialogue on Sustainable Finance on the occasion of Japan’s presidency of the G20

Q3 Q4 Q1 Q2

5.11Develop a Diploma on Sustainable Finance at the Finis Terrae University, ChileCo-funded by: Finis Terrae University

Q3 Q4 Q1 Q2


Umbrella Goals Monitoring of Umbrella Goals Notes

15% of members “Sustainability leaders”

Source: UNEP FI Sustainability Dashboard*

Proxies to combine the following:

• Dow Jones Sustainability Index• Public commitments to TCFD, UNEP FI

organised Statements (eg. Investor Statement on Climate Change, Tobacco free finance pledge), FI’s own commitements, etc.

• CEO participation in UNEP FI activities• Member of UNEP FI projects• Member of UNEP FI Global Steering

Committee and Industry Committees• Signature to additional initiative/principles –

Positive Impact Principles, Natural Capital Finance Alliance, Banking Principles working group, etc

Monitoring of the 15% and 60% may not be possible in 2018–2019 as the Dashboard will be under pilot in 2018

Proxies to be used in the meantime

60% of members working towards sustainability

Source: Incremental changes in UNEP FI Sustainability Dashboard result over the years*

Proxies to combine % of members participating in:

• UNEP FI events• Dashboard• Membership survey

30% membership growth globally

Baseline: Number of UNEP FI members reported at the 2017 AGM = 215

Other KPIs to monitor:

• Retention rates and new member’s growth• Deeper assessment in key markets – Identifying key FIs and which are members and non-members

• Potential members list.

Membership retention and growth to be separately monitored

Monitoring the Implementation of the Strategy: Measures of Success

Documents

INTEGRATED WORKPLAN 2018–2019 2019–2020€¦ · WORKPLAN 2018–2019 July June 2019–2020 July June. 2 | UNEP FI Workplan 2019–2020 Helping Banks, insurers and investors embed