pp4sd financial services sector 1 introducing sustainable development in the financial services...

PP4SD Financial Services Sector 1

Introducing Sustainable Development in the Financial Services Sector

A PP4SD Programme


PP4SD

• Working with professionals to integrate sustainable development learning into continuing professional development

• Partnership approach

• Managed by: the Environment Agency, the Institution of Environmental Sciences, The Natural Step and RSPB


Introduction

Course Objectives– help participants understand how social and

environmental considerations will have an increasing impact on the activities of the Financial Services Sector

– give participants an understanding of this new business reality and the associated risks and opportunities

– provide delegates with tools to respond positively to this developing agenda


Introduction

Course design– to be challenging– to be interactive– to stimulate discussion and debate– to be fun


Space Ship


Space Ship

Congratulations!

• You are going away for a long weekend in space with everything provided – think ‘the Paris Ritz’ in space.


Space Ship

Your Task– in teams, decide on the 10 items that you will

take on this special weekend.• Food, water and spacesuits provided


Space Ship

Disaster Strikes!


Systems thinking


The Business Funnel

Legislation

Shareholder Pressure

Increasing costs

Employee expectation

CustomerRequirements

Risk Management

Protecting brand value

NGO pressure


The reality

World population actual and projections

Sources: UN median projection 2025 Politics of the Real World

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2

4

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1974 1995 2025 2050

World pop'nbillions


The reality

• Global consumption of water is doubling every 20 years– 10% used by people– 65% used by industrial agriculture– 25% used by industry

• 1 billion people already suffer from a shortage of fresh water

• If everyone adopted a western lifestyle we would need five earths to support us!


The reality

• The 20% of people living in the rich countries consume 80% of the world resources

• The top 1% of households have more wealth than the entire bottom 95%


How has business responded?

Corporate Social Responsibility (CSR)– “winning businesses of the 21st century should

not only add value to themselves but to the rest of society as well”

David Irwin - Encouraging Responsible Business



• 94% of company executives believe that the development of a CSR strategy can deliver real business benefits. (Source: Ernst & Young survey)

• 1 out of 3 international sales executives think social responsibility initiatives will increase sales. (Source: Hill & Knowlton’s Corporate Reputation Watch)

• 86% of investors believe that social and environmental risk management improves a company’s market value in the long term. (Source: CSR Europe/Taylor Nelson Sofres)



• 73% of top European business leaders believe that sustained social/environmental engagement can significantly improve profitability (Source: Business in the Community's FastForward Research)

• 27% of consumers across 25 countries have punished companies for being socially irresponsible and another 21% have considered doing so (Source: Environics International's Annual CSR Monitor)

• 80% of employees would not work for an organisation with values they didn't believe in (Source: Work Foundation, 'Corporate Nirvana‘)



• 60% of banks are now publishing declarations on environment (or included as part of financial reports)

• 59% of banks have an environmental policy

• Steady growth of financial products geared to the environment

Sustainable Finance and Banking – Marcel Jeucken



• UNEP Agreement on the financial sector

• Financial Organisations Review and Guidance on the Environment (FORGE)

• ICC Business Charter for SD

• The London Principles


Case Study Review

• Review good practice examples of how some organisations have responded to this agenda.


Case Study Review

• Process– Read case study and prepare feedback

containing the following• Background on the company 10%

• What they say they have done 30%

• What can we learn from the case 60%


Case Study Review

1. What are the common positive elements?

2. What are the areas for improvement?

3. What is appropriate for your own business context?


The 5 Capitals

• Background– Natural Capitalism (Amory Lovins, Paul

Hawken, L.Hunter Lovins) – http://www.natcap.org/

• Project Sigma– The 5 Capitals – http://www.projectsigma.com/


The 5 Capitals

• Natural Capital • Human Capital• Social Capital• Manufactured Capital• Financial Capital


Natural Capital

• What does it mean?– the natural resources (energy and matter) and

processes needed by businesses to produce products and deliver services

• Why is it important?– everything will draw on or impact on the

natural environment in some way


Human Capital

• What does it mean?– the health, knowledge, skills, intellectual

outputs, motivation and capacity for relationships

• Why is it important?– businesses depend on individuals to be

motivated and skilled to be successful


Social Capital

• What does it mean?– value added to a business from human

relationships, partnerships and co-operation

• Why is it important?– economies rely on social interactions to achieve

their objectives


Manufactured Capital

• What does it mean?– material goods and infrastructure which

contribute to production or service provision (tools, technology)

• Why is it important?– important that how things are developed /

delivered is sustainable - using innovation


Financial Capital

• What does it mean?– productive value of the other capitals which

exist in a form of currency which can be owned or traded

• Why is it important?– this is the traditional and primary measure of

business performance.


Mapping Exercise

• Draw a systems diagram for a product, mapping inputs and outputs and highlighting impacts on the capitals.

• See the following examples:


Mapping Exercise


Situational Exercise


Sphere of influence

Sphere of concern

Sphere of influence


Action Planning


Action Planning

Reflect on this course and identify 3 things that you can do/start doing to contribute to this agenda

• write them down

• talk them through with a colleague to ensure they are achievable but stretching

• Have the colleague question and feedback what they have heard


Action Planning

• Transfer the “smarter” targets to a postcard • Complete your name and address on the postcard• Give the postcard to the course facilitator


Evaluation and Close

Many thanks

pp4sd financial services sector 1 introducing sustainable development in the financial services...

Documents

rspb slide

fun slide

responsible business

real world slide

corporate nirvana slide

developing agenda slide

banking marcel jeucken

business context