2. History 2005 The Bank began a Self-Evaluation Process  Examined Headquarters’ consumption patterns and major Greenhouse Gas (GHG) emissions sources  Identified a number of actions to reduce the Bank’s carbon footprint Sustainability Review

3.  Prepared a Country Office Survey to calculate their emissions  Prepared a “Greening the Bank” Action Plan to identify and assess opportunities to make IDB’s internal operations more sustainable  Refined the methodology for calculating GHG emissions President Moreno announced an inter-departmental “Greening the Bank” Task Force 2006

4.  IDB was the First Multilateral Development Bank to successfully pilot the carbon neutral concept for Annual Meeting 2007  Carried out a pilot GHG Inventory of the headquarters’ corporate activities  Began executing “Greening the Bank” Action Plan  Partnerships with Climate Leaders, Green Power Partner and Energy Star

5. Carbon Neutral Initiative President Moreno announced that the IDB would go carbon neutral 2007 - Headquarters 2008 - Country Offices

6. 2009 Environment and Safeguards Unit (ESG) Carbon Neutral Initiative Administrative Services and Corporate Procurement Division

7. CSR Mission To Promote Environmental and Social Responsibility within the Bank Community  Aligning practices in all aspects of day-to-day operations with the Bank’s overall goals and objectives  Managing and reporting on the Bank’s institutional environmental footprint  Providing ongoing education and awareness activities

8. CSR OBJECTIVES  Reduce the environmental and social impact of activities at Bank facilities  Establish and promote environmental and social awareness in the workplace  Encourage and support IDB staff in becoming more conscious of the impact of their actions

9. CSR Awareness  Annual Report  Occupancy sensors (HQs Conference Rooms)  Mug & Water Bottle Campaign  Green Room  LEED Accreditation  LEED Certification HQs  Earth Day  Annual Meeting Booth  Bike to Work Day  World Environment Day  World Car Free Day  Mi Casa Verde  Children Christmas Party  COFs Carbon Competition

10. Recognizes three Country Offices that support the Bank’s commitment to carbon neutrality Selection Criteria innovation – short- and long-term environmental impact – potential for implementation in other COFs – period of implementation – return on investment 2011 Winners - Colombia – Suriname – Uruguay lighting analysis and upgrades - solar -feasibility study - install recycling centers - pay for the additional cost of a hybrid vehicle - install lighting occupancy sensors - install high efficiency LED lights Country Carbon Competition Award

11. Components of the Carbon Neutral Initiative  Calculating the IDB carbon footprint (HQs and COFs)  Reducing the IDB carbon footprint by implementing greening initiatives  Purchasing Renewable Energy Certificates and Carbon Offsets

12. Greenhouse Gas (GHG) Inventory Semi-Annual  Covers all facilities where the IDB has operational control (office buildings, equipment, and vehicles)  Includes emissions from HQs and COFs  Data collection into the Management Data System Credit360

13.  Calculation of Direct, Indirect, and Optional Emissions  The result is the total amount of Carbon Dioxide equivalents (CO2eq) Greenhouse Gas Inventory Diesel Generators Natural gas for heating/kitchen use Owned Vehicles Fuel use in COFs Fuel use in HQs owned or leased off-site facilities (i.e. warehouses) Refrigeration and AC equipment Electricity consumption in HQs Electricity consumption in COFs Electricity consumption in owned or leased off-site facilities (i.e. warehouses) Air travel from HQs Air travel from COFs Hotel stays by IDB staff and consultants Staff commuting Direct Emissions (Scope 1) Indirect Emissions (Scope 2) Optional Emissions (Scope 3)

14. HQs’ Greenhouse Gas (GHG) Emissions by Source in tCO2eq* (2008-2010) *Tons of carbon dioxide equivalents

15. COFs’ GHG Emissions by Source in tCO2eq (2008-2010)

16. How does the Bank achieve net-zero GHG emissions?

17. Purchasing RECs Renewable Energy Certificates (RECs)  Certificate issued when one megawatt-hour of electricity is generated and delivered to the grid from a qualifying renewable energy source (wind, solar, biomass etc.) The Bank purchases RECs for 100% of HQs energy usage

18. Purchasing Carbon Credits (VERs) Verified Emissions Reductions (VERs)  Represents the reduction, removal, or avoidance of GHG emissions used to compensate for GHG emissions that occur elsewhere The Bank purchases carbon offsets (VERs) by investing in projects in the Region to offset emissions that it cannot reduce through efficiency/greening measures

19. Social Responsibility Corporate Procurement  Green purchasing (human, health and environmental impact)  Supplier diversity (sourcing from businesses owned by women or under-represented groups)

20.  In 2007, IDB developed the Environmental and Socially Responsible Corporate Procurement Product Standards  In 2009, Corporate Procurement established the Corporate Procurement Advisory Committee for Environmental and Social Responsibility Standards (ESRCP)  23 product standards developed, 17 fully implemented, 2 partially implemented and 4 are under consideration Green Purchasing

21. Recommendation from the IDB Leadership in Diversity Conference “Setting the Tone from the Top” (November, 2009) Supplier Diversity Program in Country Office Corporate Procurement  Gathered information from all Country Offices on their current admnistrative contracts with regard to vendor status on gender and/or under-represented groups (information will serve as a base line for future tracking and reporting)  Identify under-represented groups in each Country Office  Next steps – develop Bank initiative for supplier certification process in the region

22. The CSR Team is always available to help you Marilyn Sussan – Corporate Procurement Section Chief marilynh@iadb.org Sheila Martins – CSR Program Manager sheilas@iadb.org Matt Logan – Research Fellow mattl@iadb.org

23. THANK YOU Questions