1. PP4SD Financial Services Sector 1 Introducing Sustainable Development in the Financial Services Sector A PP4SD Programme

2. PP4SDFinancial Services Sector2 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

3. PP4SDFinancial Services Sector3 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

4. PP4SDFinancial Services Sector4 Introduction Course design –to be challenging –to be interactive –to stimulate discussion and debate –to be fun

5. PP4SDFinancial Services Sector5 Space Ship

6. PP4SDFinancial Services Sector6 Space Ship Congratulations! You are going away for a long weekend in space with everything provided – think ‘the Paris Ritz’ in space.

7. PP4SDFinancial Services Sector7 Space Ship Your Task –in teams, decide on the 10 items that you will take on this special weekend. Food, water and spacesuits provided

8. PP4SDFinancial Services Sector8 Space Ship Disaster Strikes!

9. PP4SDFinancial Services Sector9 Systems thinking

10. PP4SDFinancial Services Sector10 Systems thinking

11. PP4SDFinancial Services Sector11 Systems thinking

12. PP4SDFinancial Services Sector12 The Business Funnel Legislation Shareholder Pressure Increasing costs Employee expectation Customer Requirements Risk Management Protecting brand value NGO pressure

13. PP4SDFinancial Services Sector13 The reality World population actual and projections Sources: UN median projection 2025 Politics of the Real World

14. PP4SDFinancial Services Sector14 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!

15. PP4SDFinancial Services Sector15 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%

16. PP4SDFinancial Services Sector16 How has business responded? Corporate Social Responsibility (CSR) –“winning businesses of the 21 st century should not only add value to themselves but to the rest of society as well” David Irwin - Encouraging Responsible Business

17. PP4SDFinancial Services Sector17 How has business responded? 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)

18. PP4SDFinancial Services Sector18 How has business responded? 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‘)

19. PP4SDFinancial Services Sector19 How has business responded? 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

20. PP4SDFinancial Services Sector20 How has business responded? UNEP Agreement on the financial sector Financial Organisations Review and Guidance on the Environment (FORGE) ICC Business Charter for SD The London Principles

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23. PP4SDFinancial Services Sector23 Case Study Review Review good practice examples of how some organisations have responded to this agenda.

24. PP4SDFinancial Services Sector24 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%

25. PP4SDFinancial Services Sector25 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?

26. PP4SDFinancial Services Sector26 The 5 Capitals Background –Natural Capitalism (Amory Lovins, Paul Hawken, L.Hunter Lovins) –http://www.natcap.org/http://www.natcap.org/ Project Sigma –The 5 Capitals –http://www.projectsigma.com/http://www.projectsigma.com/

27. PP4SDFinancial Services Sector27 The 5 Capitals Natural Capital Human Capital Social Capital Manufactured Capital Financial Capital

28. PP4SDFinancial Services Sector28 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

29. PP4SDFinancial Services Sector29 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

30. PP4SDFinancial Services Sector30 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

31. PP4SDFinancial Services Sector31 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

32. PP4SDFinancial Services Sector32 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.

33. PP4SDFinancial Services Sector33 Mapping Exercise Draw a systems diagram for a product, mapping inputs and outputs and highlighting impacts on the capitals. See the following examples:

34. PP4SDFinancial Services Sector34 Mapping Exercise

35. PP4SDFinancial Services Sector35 Mapping Exercise

36. PP4SDFinancial Services Sector36 Situational Exercise

37. PP4SDFinancial Services Sector37 Sphere of influence Sphere of concern Sphere of influence

38. PP4SDFinancial Services Sector38 Action Planning

39. PP4SDFinancial Services Sector39 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

40. PP4SDFinancial Services Sector40 Action Planning Transfer the “smarter” targets to a postcard Complete your name and address on the postcard Give the postcard to the course facilitator

41. PP4SD Financial Services Sector 41 Evaluation and Close Many thanks