Investment case study - Credit Suisse

Investment case study - Credit Suisse

• 1.
  Green Economy Roundtable: Challenges,Opportunities and Priorities CREDIT SUISSE AG, Public Policy – Sustainability Affairs April 19, 2012
• 2.
  Sustainability: Why Bother? Resource and cost savings – Energy – Paper, etc. Risk management – Legal and compliance requirements – Reputation Business opportunities – Product / brand differential – Increased market share Stakeholder expectations – Staff talent attraction / retention – Institutional investors – NGOs power and influence CREDIT SUISSE AG, Public Policy - Sustainability Affairs April 19, 2012 2
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  The Credit SuisseCorporate Responsibility model CREDIT SUISSE AG, Public Policy - Sustainability Affairs April 19, 2012 3
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  Demonstrating commitment… External commitments Internal commitments UNEP Finance Initiative Code of Conduct (since 2000) (since 1992) Sustainability Policy (since UN Global Compact (since 2006, replacing Environmental 2000) Policy) Equator Principles (since Sustainability Management 2003) Policy Carbon Principles (since Sector-specific policies and 2008) guidelines (forestry, mining, oil & gas, etc.) …requires capacity (human, systems, procedures) CREDIT SUISSE AG, Public Policy - Sustainability Affairs April 19, 2012 4
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  The implications ofweak sustainability issue management Sustainability Implications for Risks to clients issue banks Land use Project delays, Financial cost conversion cost increases, or (e.g., delayed Climate change business revenues) interruptions Litigation Pollution Poor business Reputational Water scarcity decisions damage Human rights Association with challenges Negative client controversy reactions (e.g., Labour issues Loss of Private Banking) social/regulatory license to operate CREDIT SUISSE AG, Public Policy - Sustainability Affairs April 19, 2012 5
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  Sustainability Policies andGuidelines for key industries Internal Sustainability Policies / Guideline exist for: Forestry & Mining Oil & Gas Hydropower Agribusiness . Loss of high conservation value Contamination of land and Contamination of land, water, air Impact on riverine and forest water surrounding terrestrial Destruction of natural habitats, environments Loss of biodiversity Impacts on biodiversity impacts on biodiversity Destruction of natural habitats Illegal logging Impacts on public health and Impacts on public health and safety, local cultures, communi- safety, local cultures, communi- Impacts on biodiversity Monoculture (palm oil, soy) ty-based livelihoods ty-based livelihoods Impacts on cultural heritage Loss of home, shelter, Decommissioning and Decommissioning and subsistence for local Displacement or resettlement of rehabilitation rehabilitation communities people Poor governance/corruption Poor governance/corruption IFC EHS Guidelines for Forest IFC EHS Guideline for Mining IFC EHS Guidelines for IFC General EHS Guidelines, Harvesting / Pulp & Paper Mills Offshore / Onshore Oil and Gas OP Safety of Dams GRI Mining Sector Supplement Development FSC World Commission on Dams Extractive Industries Extractive Industries RSPO Transparency Initiative (EITI) (WCD) guidelines Transparency Initiative (EITI) CREDIT SUISSE AG, Public Policy - Sustainability Affairs April 19, 2012 6
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  Credit Suisse managessustainability risks carefully Sustainability risk is embedded into the Transaction bank’s risk management system and sustainability decisions reach the highest levels of the bank Sensitive transactions and business relationships, including those with potential environmental or Transactions with social risks, are assessed in the bank-wide RRRP potential environmental or social reputational Industry-specific policies and guidelines outline risks environmental and social issues as well as prohibited and sensitive activities The Reputational Risk Sustainability Committee Reputation Risk (RRSC) determines the bank’s sustainability Review Process strategy, ensures group-wide implementation of commitments and oversees the RRRP The Board of Directors Risk Committee reviews bank policies and provides direction, while the Decision CEO serves as highest decision-making authority (decline / adapt / adopt) on sustainability issues CREDIT SUISSE AG, Public Policy - Sustainability Affairs April 19, 2012 7
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  Sustainability is abusiness opportunity Credit Suisse’s vision is to become the world’s most admired bank Responsibility and Excellence Professionalism ethics World-class products and Banking expertise Integrity client service Good credit risk Respect Excellent execution management Accountability Strong profits Legal and regulatory Sustainability compliance Credit Suisse sees sustainability as an opportunity – it is good for the environment, good for society, it’s good for business. Setting an example is not the main means of influencing others; it is the only means. Albert Einstein CREDIT SUISSE AG, Public Policy - Sustainability Affairs April 19, 2012 8
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  Sustainability Advisory Services Training and Awareness Fostering dialogue with civil society General issue Introductions to awareness collaborative NGO Structured training on groups / consultants on key industry issues a case-by-case basis delivered to client Enabling broad stakeholder dialogue Strategy and Policy development Communications and Reporting Support on Credit Suisse produces developing a general a number of internal sustainability policy or and external industry / issue communications on policies or guidelines sustainability / as a key component corporate responsibility of broader strategy initiatives, and is able to development share this expertise CREDIT SUISSE AG, Public Policy - Sustainability Affairs April 19, 2012 9
• 10.
  NGO engagement deliversvalue Credit Suisse currently has working relationships with WWF in all four of its regions Americas Asia Pacific EMEA Switzerland Focus on Focus on Focus on employee Focus on role of sustainable sustainable land awareness- banks in a low- agriculture: use: raising: carbon Long-term High conservation Employee- economy: collaborative value habitat focused Joint research project with WWF- mapping work engagement on project on the role US to develop new Multiple employee various topics of banks in the investment seminars and including: transition to a products for clients volunteering “2050: A World low-carbon and with an interest in activities Powered by resource- sustainable Renewable constrained agriculture Energy” economy Water Scarcity CREDIT SUISSE AG, Public Policy - Sustainability Affairs April 19, 2012 10
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  CREDIT SUISSE AG,Public Policy - Sustainability Affairs April 19, 2012 11