GEFI host private Path to COP28 Roundtable on the PRI in Dubai, in partnership with PwC
As part of the Path to COP28 campaign, GEFI, in partnership with PwC, organised a Principles for Responsible Investment (PRI) private roundtable which brought together banks, asset managers, sovereign wealth funds, and regulatory representatives to discuss and share global best practice.
The roundtable represented participants’ commitment to collaboration and sharing knowledge, a core element of accelerating sustainable action. The discussion focused on the barriers preventing local asset managers in the Middle East from engaging with PRI, as well as the opportunities and support that the PRI can provide to investors. Current PRI signatories also discussed their experience and the lessons learned through their journey.
Overview of PRI and Global ESG Trends
Insights of the PRI principles, its 10-year blueprint vision, and global ESG trends were presented. With half of the world’s institutional capital currently signed up to PRI, signatories’ experience with ESG varies, which is why PRI’s guidance is intentionally co-created with their signatories. The PRI has a growing presence in emerging and frontier markets, with a few signatories in the Middle East, who are expected to publish their reports this month.
Active Ownership and PRI Reporting Framework
Another participant, scoring highly on PRI reporting, emphasized that ESG sustainability is an integral part of investment. They highlighted the significance of active ownership through stewardship and engagement, placing responsibility on investors themselves. The reporting framework was recognized as a valuable tool for learning and improvement in strategy, integration, and ownership. Participants acknowledged the resource-intensive nature of reporting but also noted the evolving focus on sustainability outcomes and the increasing importance of TCFD-aligned climate questions.
Barriers to Engagement and Regional Perspectives
Various barriers to engaging with PRI were discussed, including attracting undue criticism of sustainability policies under development, governance management, and the transition from ESG integration to ESG outcomes impact. Participants emphasised the need for appropriate value provision and regional support to contextualise progress. In contrast to financial institutions based in Europe and the US, which joined the PRI as part of the process of developing their responsible investment policies, those in the Middle East – particularly asset owners – saw well-developed responsible investment policies, accountability, and leadership as a prerequisite for signing up. Participants noted that the level of engagement did not yet reflect the desired impact. The implications of early-stage sign-ups without sufficient demand from asset owners and institutional investors for ESG mandates were also explored.
Leveraging Standards and Accelerating Conversations
The evolution of PRI and its potential mismatch with asset owners’ readiness and capabilities were identified as potential barriers. Participants discussed the significance of standards, such as the ISSB, in expanding PRI’s efforts and addressing the challenge of accessing reliable data. They highlighted the importance of leveraging the collective expertise and challenges faced by the numerous signatories to establish common consensus. Additionally, the role of sovereign wealth funds in accelerating responsible investment conversations was emphasized, and the MENA region was seen as having an opportunity to leapfrog the EU through increased collaboration and incentives.
Shariah Compliance and ESG Integration
Shariah-compliant signatories discussed the integration of responsible investment and shariah-compliant investments. Negative screening, transparency, and ethical investing were determined as common denominators, and shariah financial due diligence has helped analyse ESG advantages and reduce risks. The discussion emphasized that ethical investing is not exclusive to any particular group and highlighted the benefits of financial due diligence and ESG analysis in reducing risks for compliant investors. Balancing portfolios based on quality and growth within the constraints of shariah backgrounds was acknowledged as a challenging factor.
The PRI roundtable facilitated an exchange of insights on advancing responsible investments. The discussions covered a wide range of topics, including PRI’s vision, shariah-compliant investments, active ownership, barriers to engagement, and regional perspectives. By leveraging standards, fostering collaboration, and addressing challenges, PRI aims to drive sustainable change and support investors on their responsible investment journey.
Contact chris@globalethicalfinance.org to discuss how we can help your organisation's journey towards PRI membership.
GEFI host private Path to COP28 Roundtable on the UN PRB in Dubai, in partnership with PwC
As the fourth-year anniversary of the United Nations Principles for Responsible Banking (PRB) approaches, GEFI, in partnership with PwC, hosted a private Path to COP28 round table in Dubai focused on the UN PRB.
The aim of the roundtable was to discuss the engagement of Middle East banks with the Principles. Key points of the discussion, held under Chatham House Rules, included an overview of the Principles, the engagement to date with the Principles by Middle East-based financial institutions, challenges faced by Middle East-based financial institutions, the need to balance economic development and decarbonization, leadership and training initiatives, aligning the Principles with business strategy, and transitioning to sustainable financing.
PRB Principles Overview
The PRB encompasses six principles that guide banks in aligning with international agreements, setting measurable targets, collaborating with clients and customers, engaging with stakeholders, fostering sustainability as part of the bank’s governance and structure, ensuring transparency and promoting accountability.
PRB Engagement in the Middle East
While some regional banks have become signatories, others are in the process of assessing integration challenges. Engaging ministries and central banks, addressing high emissions per capita, and tackling biodiversity challenges were discussed as priority areas.
Challenges Faced
Data challenges and varying levels of awareness were identified as key obstacles for Middle East banks. The region’s banks struggle with numerous frameworks and lack awareness among clients. Establishing robust data tracking mechanisms and increasing PRB awareness were deemed necessary.
Balancing Economic Development and Decarbonisation
Middle East banks were urged to take collective action in achieving Paris Agreement targets. Balancing economic growth with decarbonization and emphasizing a just transition were highlighted as key challenges. Banks in the region are increasingly setting climate change targets and strengthening their impact assessments.
Leadership and Training Initiatives
Middle East banks recognized the leadership opportunity in ESG practices and emphasised the need to educate businesses, viewing it as their duty. Training initiatives are prioritised to prepare banks for the future and create demand for sustainable practices.
Aligning PRB Principles with Business Strategy
The alignment of PRB principles and objectives with business strategy was deemed essential. Both top-down and bottom-up approaches were acknowledged as necessary for successful integration within organisations.
Transitioning to Sustainable Financing
Banks in the Middle East recognise the challenges in transitioning away from fossil fuel financing. A strategy of parallel investment into sustainable alternatives while on the journey of divestment was considered as an accommodating and just route for the region. This transition was viewed as a profitable opportunity through supporting long-term sustainable companies.
Collaboration and support for evolving climate targets were seen as crucial steps forward. The discussion emphasised the importance of collective sign-up to the PRB among Middle East banks. Overcoming challenges, aligning with PRB principles, and contributing to a sustainable future were highlighted as key goals. By embracing the PRB, Middle East banks can play a vital role in global efforts to combat climate change and foster a low-carbon economy.
Contact chris@globalethicalfinance.org to discuss how we can help your organisation's journey towards PRB membership.
Investing in SDG-Aligned Products
In our recently published report, Attitudes of banking customers towards the UN SDGs, an impressive 87% of respondents stated that they would be willing to pay extra for SDG-aligned products. For a product to be SDG aligned, it must be connected to one or more of the existing 169 targets under the 17 SDGs. What exactly does that mean?
An SDG-aligned banking product is similar to a sustainability or green product. It can be a loan, bond, sukuk, or any other sort of financial product. The difference from a traditional product is that these specialty products are designed with a specific goal in mind, usually an environmental or social goal that can be measured. For instance, a green loan that is tied to a particular project may have different repayment amounts for different levels of success, such as cutting emissions from a particular business by 20% or 50%. In this case, the borrower would repay less if they achieved more of an emissions cut.
The findings from Attitudes of Banking Customers Towards the UN SDGs, recently released by GEFI and the UKIFC, found that 80% of Global North respondents and 89% of Global South respondents were willing to pay more for an SDG-aligned financial product. On average, the respondents were willing to pay a premium of up to 4.4%. That’s a significant amount, a clear demonstration that this is becoming more and more important to financial product clients all over the world.
There were variations in feedback that were most evident in age, with the lowest (18-24 year olds) and highest (65+) being willing to pay the lowest premium (3.8% and 2.1%, respectively). This is likely due to differences in awareness. Younger respondents are in the process of learning about financial products and exploring what works best for them, while older respondents may have concerns that impact-oriented investing may not be as effective as traditional investing. In both cases, clear educational tools and resources would be beneficial. Luckily, more and more research is finding that investing from a sustainability-backed approach does well to mitigate risk, tends to be less volatile, and is economically profitable.
When developing these financial products, financial institutions have an opportunity to impact genuine positive change. The OECD’s Framework for SDG Aligned Finance presented this beautifully with two primary objectives:
- Equality: resources should be mobilised to leave no one behind and fill the SDG financing gaps, and
- Sustainability: resources should accelerate progress across the SDGs.
This is pivotal as it emphasises the need to make socially conscious decisions while addressing the SDGs, to ensure that investments in one area are not detrimental to another. For instance, suddenly shutting down all mining operations may be better for the environment, but it could leave the local population struggling if there is no other industry around. SDG financial products must be carefully designed to maximise positive benefit while mitigating the negative.
With a strong interest in SDG-aligned financial products from consumers and research supporting the economic benefits of such an investment, it is no wonder that impact investing has grown 63% from 2019 to 2021, surpassing $1.2 trillion according to the Global Impact Investing Network (GIIN). Demand is rising for positive investments that are good for people and good for the planet.
The findings from Attitudes of banking customers towards the UN SDGs, a joint effort by GEFI and UKIFC, found consistently strong support for financial products that are SDG aligned. These products give banking clients the opportunity to directly support causes they feel strongly about, to invest in their communities, and to see positive returns for socially and environmentally aligned investments. It is empowering for clients, creates opportunities for financial institutions to invest in risk-mitigated, strategic, long-term projects, and fosters a sense of inclusion.
To support this important work, GEFI has designed the SDG Product Platform. Financial products are carefully assessed to ensure that they meet the goals they set for themselves, and GEFI works closely with the asset manager to maintain SDG alignment and economic benefit. Learn more about GEFI’s SDG Product Platform here:
Modern Slavery and Human Trafficking in the Finance Sector: A rising tide
While significant focus in the realm of ESG has been on environmental issues, it is equally important to be aware of the S in ESG. As the third largest criminal economy in the world following drugs and arms trafficking, modern slavery and human trafficking impacts roughly 150 million people all across the globe. This issue transcends geo-political boundaries, industries, and socio-economic status.
Modern slavery, defined as ‘slavery, servitude, and forced and compulsory labour’ (Modern slavery Act, 2015), includes human trafficking. When a person experiences slavery or trafficking, their autonomy and freedom to move are restricted through coercion or abuse. Often, their government-issued identification is taken away, either to control their movements or as a means of forcing them to hand over any money they earn through work. Victims are often exploited through labour, forced marriage, and sexual or domestic servitude. In the UK, the most common forms of slavery are labour and sexual exploitation, and debt bondage.
With an estimated 10,000 to 100,000 people in the UK experiencing modern slavery and over 600 victims rescued in Scotland in 2022 alone, this is clearly a pressing and localized human rights issue. Climate change, covid, and conflicts have fueled a 220% rise over the last 5 years, leading to”high slavery risk” goods imported into the UK reaching $18bn. There are even instances of this happening on UK soil, as with concerns of sweatshop-like practices at the Boohoo factories in Leicester in 2019 wherein the demands of fast-fashion outpaced worker’s rights.
The Role of Finance
As the ILO estimates that roughly 86% of those trapped in modern slavery are in the private sector, and a wave of due diligence and human rights legislation is being implemented globally, firms of all sizes need to think about their positioning in the international economic value chain and how modern slavery may impact their work. Human rights organizations are increasingly citing the displacement and economic hardship caused by climate change as a key contributing factor to a person’s vulnerability to trafficking and slavery.
How does this impact the financial sector? As financial institutions invest in, audit, and offer banking services for businesses internationally, they must be aware of their potential impacts. The sectors most closely associated with MSHT (agriculture, construction, fishing, food, manufacturing, and hospitality) are both common investment sectors and services that financial firms can invest in directly, such as hiring catering or construction firms for direct business needs. Further, slavery may be found throughout complex global value chains and international banking organizations must be especially careful to not offer financial services for the illicit proceeds of human exploitation.
The financial sector is uniquely placed to work through all three action areas set by the Scottish Government’s Trafficking and Exploitation Strategy. Identifying and helping victims (Action Area 1) and identifying and disrupting perpetrators (Action Area 2) can both be addressed through training and empowerment of frontline staff in banks. Addressing the conditions that lead to trafficking and exploitation (Action Area 3) is vital from a risk assessment standpoint, as financial institutions are uniquely positioned to impact financial services from an international down to a local level.
Tackling Modern Slavery and Human Trafficking
The UK’s Modern Slavery Act (MSA), implemented in July of 2015, consolidated and expanded upon preexisting MSHT legislation. Section 54 requires commercial organizations that operate within the UK with a minimum goods or services turnover of £36 million, regardless of where they are incorporated, to publish an anti-MSHT statement within six months of the end of their financial year. Efforts are currently in progress to strengthen the MSA, with critics arguing that firms may take a ‘box-ticking’ approach and fail to thoroughly vet their global value chains.
Of the organizations in the UK working to eradicate MSHT, the UK Independent Anti-Slavery Commissioner and Unseen UK provide detailed research, while Finance Against Slavery and Trafficking (FAST) offers actionable resources for financial institutions. The National Referral Mechanism (NRM) is in place to report any instances of suspected slavery, trafficking, or exploitation.
GEFI is honoured to have Dame Sara Thornton speaking on this topic at our upcoming Ethical Finance Global 2023 Summit in September. This is a difficult but important topic to address, but ethical finance means making the world safer for everyone and having the difficult conversations that need to be had.
TNFD launch beta version of Framework
The global economy depends on nature to the tune of $44 trillion annually, but nature-related risks and opportunities have traditionally been overlooked in financial decision-making. However, this area of focus is developing at pace, riding in the slipstream of climate and making up for lost time.
Yesterday saw the Taskforce on Nature-Related Financial Disclosures launch its beta Framework. The full framework will launch in September 2023, with comments on the beta version open until 1 June 2023. The framework is designed to help organizations report and act on evolving nature-related risks and opportunities, and promote more sustainable business practices.
The beta framework includes a full and final draft of the framework, recommended draft disclosures, updates to the LEAP process, additional guidance for four sectors and four biomes, and cross-sector guidance on risk management, scenario analysis, target setting, and stakeholder engagement.
Framework categories & recommended disclosures
Biodiversity
The use of natural resources, the impacts of land use and infrastructure development, and the risks and opportunities associated with biodiversity conservation and restoration. Recommended disclosures include information on the company’s use of biodiversity, the potential impacts of its activities on biodiversity, and any measures it is taking to mitigate these impacts.
Land use
Recommended disclosures include information on the company’s land use practices, its impacts on land use change, and its efforts to manage these impacts, including the use of agricultural land, forestry, and other natural resources.
Water
Recommended disclosures include information on the company’s water use, its impact on water quality and availability, and its efforts to manage and reduce these impacts.
Greenhouse gas emissions
Recommended disclosures include information on the company’s greenhouse gas emissions, its efforts to reduce these emissions, and any risks and opportunities associated with the transition to a low-carbon economy.
Other disclosures
In addition to the four main categories, the Framework also includes a set of general disclosures such as the company’s governance structure and policies related to nature, as well as its engagement with stakeholders and efforts to integrate nature-related considerations into its decision-making processes.
Toolkit
The TNFD Framework is accompanied by a toolkit which provides guidance to companies and financial institutions on how to use the Framework to assess and report their nature-related dependencies and impacts.
- Guidance Document on how to use the Framework, including instructions on how to conduct a nature-related risk assessment and how to prepare a nature-related financial disclosure
- Technical Supplement on specific issues related to the Framework, such as how to measure and report on biodiversity impacts and dependencies
- Case Studies on how companies and financial institutions have used the Framework to assess and report on their nature-related dependencies and impacts
- Data and Metrics to measure and report on their nature-related dependencies and impacts.
- Implementation Support for companies and financial institutions that are using the Framework, including training and capacity building, technical assistance, and stakeholder engagement.
The release of the TNFD’s full and final beta framework is an important milestone towards developing a standardized approach to nature-related financial disclosures. To provide feedback on the draft framework, visit the TNFD website. By integrating nature-related considerations into decision-making processes, organizations can better understand the risks and opportunities associated with nature, and work towards a more sustainable future for all.
To learn more about how to integrate nature finance into your organisation, get in touch at info@globalethicalfinance.org
No more delays: What the new IPCC AR6 synthesis report means for the finance industry
"Finance, technology and international cooperation are critical enablers for accelerated climate action. If climate goals are to be achieved, both adaptation and mitigation financing would need to increase many-fold. There is sufficient global capital to close the global investment gaps but there are barriers to redirect capital to climate action."
IPCC AR6 Synthesis Report
To those of us involved in environmental action every day, the release of each IPCC report can seem somewhat anti-climactic. The report represents an impressively detailed description of the horrifying impacts of climate change, and a sobering assessment of the progress made so far by humanity to address it.
In some ways, the release of publications like the IPCC AR6 Synthesis Report tells us only what we already know: there is a serious problem which we are running out of time to solve. However, the sermon is intended not only for choir, but the congregation too.
Sadiq Khan, the Labour Mayor of London, and Chris Skidmore, a Conservative UK MP launched a cross-party initiative to tackle climate inaction this week. As they state in an excellent article in support of it, climate denialism has given way to ‘climate delayism’.
Thanks to the excellent work of the IPCC, laying out in meticulous detail the science of climate change, denial of climate change is no longer an intellectually credible position. Those who once denied now claim to accept the science, but raise all sorts of bad-faith arguments to obstruct, delay and minimise action to address the problem.
Reading the AR6 Synthesis Report makes clear that delay is just as bad as denial. We can still limit temperature rises to 1.5C, but only with swift, significant action. Doing that, as the final section of the report makes clear, relies on the finance industry.
Achieving the goals of the Paris Agreement will require massive shifts in the patterns financial flows, which require effective regulation, incentives, public-private partnerships and bold action from the finance industry.
The report also notes that the finance industry itself is at risk from the physical and transitional risks associated with climate change. To address these, the report calls for a coordinated global response that includes climate-related financial disclosures, stress tests, and scenario analysis.
As an industry, finance must not allow our delayers to get the best of us. There will always be better data tomorrow. There will always be a clearer regulatory picture next week. There will always be more lucrative subsidies in a month’s time. We must focus on what is important: immediate action.
Future generations will not judge us for choosing a marginally less efficient course of action: they will judge us for knowing what needs doing yet still delaying.
GEFI and UKIFC host Unlocking Islamic Finance Power Roundtable
Unlocking Islamic Finance Power Roundtable hosted at Simmons and Simmons
Following the Path to COP28 Sustainable Finance Summit, a select group of Islamic finance and sustainable finance practitioners gathered to discuss the alignment of Islamic finance with sustainability and the SDGs.
Regional and international financial institutions shared their experience on navigating both the conventional SDG financial market and the Islamic finance market to expedite the incorporation of the UN SDGs into Shariah products. Participants emphasized how Islamic finance is rooted in an ethical approach, but development in terms of ESG has been highly uneven.
However, the Islamic finance sector needs to act decisively on sustainability. At COP28 all eyes will be on the finance sector in the GCC, so being seen to be doing nothing is not an option, and sustainability is vital to capturing a younger generation of consumers.
Several institutions pointed to the value of “soft law” frameworks such as UN PRI and UN PRB in providing a clear action plan on sustainability. This means both to offering individual sustainability products and, perhaps more importantly, incorporating sustainability into general operations. The latter requires training at every level of an organisation, starting at the top.
There is a need to understand what consumers want, which the recent UKIFC study into Islamic banking customers and the SDGs does. Once this is established, consumers can be educated about what Islamic finance can do, and how it can do it: this can be a challenge for an acronym-heavy industry usually modest about its achievements.
This modesty is a key limitation to the global expansion of Islamic finance, hampering international awareness of the opportunities associated with it, the differentials to conventional banking (e.g. how late payment fees are handled more ethically in Islamic finance), and the pricing and commercial positioning advantages (e.g. sukuk’s resilience to price shocks in emerging markets).
COP28 presents a key moment to catalyse action in sustainable Islamic finance, drive awareness and uptake of the UN PRB and PRI, and contribute towards climate action.
Learn more about the UKIFC’s new Islamic finance and the SDGs: Retail banking customer perspectives report.
Unlocking Islamic Finance Power Roundtable hosted at Simmons and Simmons
Following the Path to COP28 Sustainable Finance Summit, a select group of Islamic finance and sustainable finance practitioners gathered to discuss the alignment of Islamic finance with sustainability and the SDGs.
Regional and international financial institutions shared their experience on navigating both the conventional SDG financial market and the Islamic finance market to expedite the incorporation of the UN SDGs into Shariah products. Participants emphasized how Islamic finance is rooted in an ethical approach, but development in terms of ESG has been highly uneven.
However, the Islamic finance sector needs to act decisively on sustainability. At COP28 all eyes will be on the finance sector in the GCC, so being seen to be doing nothing is not an option, and sustainability is vital to capturing a younger generation of consumers.
Several institutions pointed to the value of “soft law” frameworks such as UN PRI and UN PRB in providing a clear action plan on sustainability. This means both to offering individual sustainability products and, perhaps more importantly, incorporating sustainability into general operations. The latter requires training at every level of an organisation, starting at the top.
There is a need to understand what consumers want, which the recent UKIFC study into Islamic banking customers and the SDGs does. Once this is established, consumers can be educated about what Islamic finance can do, and how it can do it: this can be a challenge for an acronym-heavy industry usually modest about its achievements.
This modesty is a key limitation to the global expansion of Islamic finance, hampering international awareness of the opportunities associated with it, the differentials to conventional banking (e.g. how late payment fees are handled more ethically in Islamic finance), and the pricing and commercial positioning advantages (e.g. sukuk’s resilience to price shocks in emerging markets).
COP28 presents a key moment to catalyse action in sustainable Islamic finance, drive awareness and uptake of the UN PRB and PRI, and contribute towards climate action.
Learn more about the UKIFC’s new Islamic finance and the SDGs: Retail banking customer perspectives report.
GEFI host UN Principles for Responsible Banking Power Roundtable in Dubai
UN Principles for Responsible Banking Power Roundtable hosted at EY
At a private Power Roundtable designed to foster a collaborative – rather than competitive – atmosphere, UN Principles for Responsible Banking (PRB) signatories shared their experiences with financial institutions considering becoming signatories. The event featured 5 UAE-based banks, 4 global banks and 3 banks based in the UK and Australia.
At the event, current signatories highlighted the benefits from a comprehensive framework that aligns with science-based targets, offers engagement with credible third-party alliances, and promotes top-down engagement and education for board members and decision makers through UN-sponsored working groups.
Experience shows that this framework has helped financial institutions in setting credible climate transitions plans and in engaging their clients on this journey, where they would have otherwise struggled with setting their own measurement tools and statistics. The costs of PRB implementation were discussed to be manageable for smaller banks – as they are for largest institutions – as smaller banks are more agile in this context.
Regional challenges and views were also considered, such as the dependance of the region’s GDP on oil and gas. PRB signatories shared their approach to facing these challenges within their own jurisdiction. A solution was hiring non-banking expert teams of scientists, engineers, and academics to offer robust decisions aligned with the Paris Agreement targets.
Other key decisions included selecting projects to finance, reinvesting proceeds from oil and gas projects into ESG-focused projects instead to offset their carbon footprints and creating innovation centers for start-ups and companies to provide investable ESG solutions. Some of the key lessons learned from signatories regarding the incorporation of the Principles were that it has to be from the top down.
A key engagement and education tool offered is the PRB Academy, which focuses on sharing knowledge and skills to professionals as they develop ESG consideration in risk and asset management. The Academy is also extending its global curriculum to make it regionally relevant and to cover nature and biodiversity finance alongside its climate finance curriculum. Emphasis was also made on the significance of public scrutiny, and COP28 will be that for the region; therefore, it is essential that institutions align their operations accordingly.
Learn more about the Path to COP28 campaign, and how it is driving action from finance at this year’s summit at pathtocop28.com.
UN Principles for Responsible Banking Power Roundtable hosted at EY
At a private Power Roundtable designed to foster a collaborative – rather than competitive – atmosphere, UN Principles for Responsible Banking (PRB) signatories shared their experiences with financial institutions considering becoming signatories. The event featured 5 UAE-based banks, 4 global banks and 3 banks based in the UK and Australia.
At the event, current signatories highlighted the benefits from a comprehensive framework that aligns with science-based targets, offers engagement with credible third-party alliances, and promotes top-down engagement and education for board members and decision makers through UN-sponsored working groups.
Experience shows that this framework has helped financial institutions in setting credible climate transitions plans and in engaging their clients on this journey, where they would have otherwise struggled with setting their own measurement tools and statistics. The costs of PRB implementation were discussed to be manageable for smaller banks – as they are for largest institutions – as smaller banks are more agile in this context.
Regional challenges and views were also considered, such as the dependance of the region’s GDP on oil and gas. PRB signatories shared their approach to facing these challenges within their own jurisdiction. A solution was hiring non-banking expert teams of scientists, engineers, and academics to offer robust decisions aligned with the Paris Agreement targets.
Other key decisions included selecting projects to finance, reinvesting proceeds from oil and gas projects into ESG-focused projects instead to offset their carbon footprints and creating innovation centers for start-ups and companies to provide investable ESG solutions. Some of the key lessons learned from signatories regarding the incorporation of the Principles were that it has to be from the top down.
A key engagement and education tool offered is the PRB Academy, which focuses on sharing knowledge and skills to professionals as they develop ESG consideration in risk and asset management. The Academy is also extending its global curriculum to make it regionally relevant and to cover nature and biodiversity finance alongside its climate finance curriculum. Emphasis was also made on the significance of public scrutiny, and COP28 will be that for the region; therefore, it is essential that institutions align their operations accordingly.
Learn more about the Path to COP28 campaign, and how it is driving action from finance at this year’s summit at pathtocop28.com.
GEFI host Sustainable Finance Summit Series in Dubai
Sustainable Finance Summit Series hosted at DIFC
Our Path to COP28 Sustainable Finance Summit series began with words of welcome from Dame Heather McGregor, Omar Shaikh, and Christian Kunz of hosts DIFC.
Simon Thompson of The Chartered Banker Institute then presented a keynote address on how the industry can drive success at the Dubai summit, highlighting the Principles for Responsible Banking Academy.
Next, a panel featuring Sebastian Frederiks from ING, Nadia Boumeziout from Zurich Insurance, and Dr Maria Carvalho from NatWest Group moderated by Dame Heather McGregor, discussed the practical implementation of sustainable finance principles into strategic decision-making.
Eline Skeurink then delivered a presentation on Principles for Responsible Investment and their role in supporting signatories in the Middle East and globally in their responsible investment activity, before Sultan Choudhury OBE from Islamic Finance Council UK (UKIFC) presented the findings of the UKIFC Global Islamic Finance Retail Banking Survey (click here to download the report).
The second and final panel saw Charles Haresnape from Gatehouse Bank plc, Mohieddine (Dino) Kronfol from Franklin Templeton, and Christian Gueckel from SEDCO Capital | سدكو كابيتال join Mustafa Adil from LSEG (London Stock Exchange Group)/Refinitiv, an LSEG business. The panel built on Sultan’s presentation, discussing how to unlock Islamic finance at COP28.
Learn more about the Path to COP28 campaign, and how it is driving action from finance at this year’s summit at pathtocop28.com, or visit our event page to find out more about the second in the series.
Sustainable Finance Summit Series hosted at DIFC
Our Path to COP28 Sustainable Finance Summit series began with words of welcome from Dame Heather McGregor, Omar Shaikh, and Christian Kunz of hosts DIFC.
Simon Thompson of The Chartered Banker Institute then presented a keynote address on how the industry can drive success at the Dubai summit, highlighting the Principles for Responsible Banking Academy.
Next, a panel featuring Sebastian Frederiks from ING, Nadia Boumeziout from Zurich Insurance, and Dr Maria Carvalho from NatWest Group moderated by Dame Heather McGregor, discussed the practical implementation of sustainable finance principles into strategic decision-making.
Eline Skeurink then delivered a presentation on Principles for Responsible Investment and their role in supporting signatories in the Middle East and globally in their responsible investment activity, before Sultan Choudhury OBE from Islamic Finance Council UK (UKIFC) presented the findings of the UKIFC Global Islamic Finance Retail Banking Survey (click here to download the report).
The second and final panel saw Charles Haresnape from Gatehouse Bank plc, Mohieddine (Dino) Kronfol from Franklin Templeton, and Christian Gueckel from SEDCO Capital | سدكو كابيتال join Mustafa Adil from LSEG (London Stock Exchange Group)/Refinitiv, an LSEG business. The panel built on Sultan’s presentation, discussing how to unlock Islamic finance at COP28.
Learn more about the Path to COP28 campaign, and how it is driving action from finance at this year’s summit at pathtocop28.com, or visit our event page to find out more about the second in the series.
Lord Mayor of the City of London visits Edinburgh to meet with Nicola Sturgeon
After a series of meetings between senior Scottish Government and City of London officials, including First Minister Nicola Sturgeon and Lord Mayor Nick Lyons, GEFI convened financiers and policymakers at Phoenix Group’s Edinburgh offices last week on 24th January.
The panel featured Amanda Young, abrdn, Richard Rollison, Scottish Government, Chris Hayward, The City of London, David Pitt-Watson, Cambridge Judge Business School and Dame Susan Rice, GEFI & The Financial Services Culture Board, and came together to discuss the nature of collaboration between Scotland and London on finance, and the role that Scotland’s sustainable finance community can play.
The discussion emphasised that Scotland has power in the investment space, in particular in regards to sustainability and ethical investment where it is leading the way with a community of sustainable finance practitioners.
This is in part down to the size of the industry: people know each other in a way that is difficult in a city as large as London. Another factor is the disproportionate number of SMEs in the Scottish economy.
Scotland’s strengths are in long-term investing, and in values-led approaches such as sustainable investing, which means it complements the City of London’s global reach. Panellists emphasised that there is not a competition between London and Scotland: we all bring different things to the equation and many people in Scotland have deep ties to London.
Overall, the scale of problems like climate change can feel huge, but focusing on tangible actions in a specific place can be a fantastic start.
Watch Chris Hayward and Richard Rollison outline their view on Scotland-London collaboration.