1. Advancing Sustainable Finance: A perspective from Friends of the Earth
China Green Credit Policy Delegation Seminar
23 June 2006
Michelle Chan
Friends of the Earth - US

2. Main points About Friends of the Earth
How NGOs have engaged with banks
Raising awareness
Policy development
Implementation
Accountability
Observations on green credit policy

3. About Friends of the Earth - US
FOE International
World’s largest network of grassroots environmental organizations (69 countries)
Environmental sustainability and social justice
100,000 members and activists in US

4. Following the money Public finance Private finance
US budget and tax code
World Bank and IFIs
Export credit agencies
Private finance
US and international banks
Equator Principles
Chinese banks

5. Raising awareness Reports and analysis Finance conferences
Individual meetings
Public education

7. Policy development Work with banks to develop green financing policies
Citigroup
JPMorganChase
Goldman Sachs
Merrill Lynch
Bank of America
Equator banks
NGOs meet with Equator banks in February 2005

8. Example: HSBC stakeholder engagement

9. Implementation Providing environmental information on transactions
Monitoring transactions as a way of measuring implementation
Belene nuclear power plant, Bulgaria. Sited 14 km from a town where 200 people died in an earthquake in 1977.

10. Example: Citigroup engagement on implementation

11. Accountability Monitoring Reporting Benchmarking
Global Reporting Initiative financial services sector supplement
Benchmarking
“Time to Go Green” report on Chinese banks

12. Current observations Green credit policy In general…
International best practice
Driven largely by public policy
Driven largely by franchise risk
Compliance oriented
Credit risk management oriented
Implementation relies on MEP and government data
Implementation relies on bank due diligence and capacity
Designed for application domestically
Designed for application globally
Limited involvement of environmental stakeholders
More involvement of environmental stakeholders

13. Recommendations Engage with Chinese environmental NGOs
A follow up meeting in China?
GreenWatershed, Friends of Nature, WWF China, Greenpeace China, Global Environment Institute
Use local environmental NGOs as your eyes
Promote transparency
Reporting for banks
Transparency for clients and projects
Promote collaboration
Address the problem of international application

14. 谢谢 Michelle Chan Friends of the Earth mchan@foe.org
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