29
INTERNAL 18 September 2017 Environmental Social and Governance (ESG) Mukhtar Hussain Group General Manager CEO HSBC Bank Malaysia Berhad
INTERNAL
18 September 2017
Environmental Social and Governance (ESG)
Mukhtar Hussain
Group General Manager
CEO HSBC Bank Malaysia Berhad
2
Mukhtar HussainGroup General ManagerCEO, HSBC Bank Malaysia Berhad
INTERNAL
� Mukhtar is also a Non-Independent Director of HSBC Amanah Malaysia Berhad, a HSBC Group
General Manager and member of the Executive Committee of HSBC Asia Pacific
� Mukhtar was appointed as HSBC Malaysia’s Non-Independent Executive Director and Chief
Executive Officer on 15 December 2009
� First joined the HSBC Group in 1982 as a graduate trainee in Midland Bank International
� Appointed Assistant Director in Samuel Montagu in 1991. After more than 10 years of working in the
HSBC Group’s London offices, held numerous posts in Dubai, including Chief Executive Officer of
HSBC Financial Services (Middle East) Limited from 1995 to 2003
� Established the initiative to create the first foreign investment bank in Saudi Arabia for HSBC
� In 2003, Mukhtar assumed the position of Chief Executive Officer, Corporate and Investment Banking
� Appointed Co-Head of Global Banking in 2006, based in London and Global Head of Principal
Investments in London from 2006 to 2008
� From 2008 to 2009, he was the Deputy Chairman HSBC Bank Middle East Limited and Global Chief
Executive Officer of HSBC Amanah
3INTERNAL
THE HSBC ESG STORY
4
Environmental
• We strive to manage sustainability risk, principally via the
implementation of our policies put in place to protect the
environment, society and supporting customers through the
transition to the low-carbon economy
• Our sustainability risk policies cover sensitive sectors with
2016/7 Forestry and Metals & Mining policy updates
Social
• This covers our customers, employees and areas of operations
which could impact people, such as human rights
• Products are designed with customers in mind, with regular
feedback monitored
• Our approach to approach to diversity and inclusion looks to
increase and leverage diversity of thought to drive greater
innovation, better identify and manage risks, enhance
collaboration, and improve workforce agility
• As part of HSBC’s ongoing focus on improving gender balance
in senior leadership, by the end of 2017 we are aiming for
26.3+% of our senior leadership to be female
Governance
• Full details of Corporate Governance may be found in our
Annual Report
• Financial crime risk management is important to protect our
customers, our communities and the integrity of the financial
system
• We continue to strengthen and significantly invest in our
ability to prevent, detect and respond to the ever-increasing
threat of cyber attacks
Environmental, Social and Governance (ESG) at HSBC
Further information
Further information on HBSC’s approach, policies and ESG Update
can be found on hsbc.com. To see our employees sharing their
stories around Diversity and Inclusion and Sustainability visit our
HSBC Now channel on YouTube. To stay up to date on what we’re
doing, follow us on social media.
More than 240 of our largest suppliers have accepted our
Ethical and Environmental Code of Conduct.
HSBC is a signatory to or has expressed public support for:
• The Global Sullivan Principles
• The OECD Guidelines for Multinational Enterprises
• The UN Global Compact
• The UN Principles for Responsible Investment
• The UN Principles for Sustainable Insurance
INTERNAL
22.0% 22.7% 23.6% 24.5% 25.4%
0%
20%
40%
60%
80%
100%
2012 2013 2014 2015 2016
Female share of senior leadership headcount at HSBC
2012-2016
Areas of activity and topical issues
5
Community investment programmes at HSBC
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Sustainable Communities
� We make financial contributions to community projects, and our employees get involved by volunteering
� In 2016, we contributed USD137m to charitable programmes, and our employees volunteered 255,000 hours in
community activities during the working day
� Our flagship environmental partnership, the HSBC Water Programme, exceeded its five-year targets at the end of
2016. Building on this success, we are extending the programme for a further three years
� In 2016, we renewed our commitments to our two flagship global education programmes, the HSBC Youth
Opportunities Programme and Junior Achievement More than Money, for another three years. These
programmes help young people access education and realise their potential
Being a force for good
Number 1for Climate Change
Research, according to
Thomson Reuters Extel
40%of our energy to
be sourced from
renewables, under
plans agreed in 2016
255,000hours spent by employees who
volunteered during the working day
More than
USD137 milliondonated to community investment programmes
around the world
1.6 millionpeople provided with sanitation as
part of the HSBC Water Programme
26%reduction in overall
energy consumption
since 2011
94%of all paper used came from certified
sustainable sources, by the end of 2016
6INTERNAL
HSBC’s
7
Climate change represents an urgent and irreversible threat to
human society in all its forms. The financial sector has a pivotal
role to play in combatting that threat.
HSBC Commissioned Survey:
Surveying corporate issuer and investor attitudes to
sustainable finance
PUBLIC INTERNAL
8
HSBC Commissioned Survey by East & Partners
Purpose
� To gain an independent snapshot of how corporates and investors across Europe, the Americas,
Asia and the Middle East are positioned by East & Partners
� Surveyed corporate issuers and institutional investors globally on their attitudes to sustainable
finance.
� Surveyed the Group Treasurers and CFO’s of 507 corporates globally on key themes
�Environmental impact
�Sustainable financing strategies and disclosure.
� Surveyed Chief Investment Officers, Heads of Portfolio, and Heads of Investment Strategy of 497
investment houses globally on key themes:
�Environmental, Social and Governance (ESG),
� Integration into investments,
�Plans for scaling up low-carbon investment,
�Green bond ownership and
�Disclosure
PUBLIC
N
T
E
R
N
A
L
9
Institutional investors are looking to increase climate-related investments but face barriers
Investors setting the pace of change
Source: East & Partners research; HSBC, 2017
Plan to increase Climate-related and Social Impact investment Barriers to increasing Climate-related/ Low Carbon investment
30%
19%
79%
68%
88%85%
94%97%
73%
68%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Middle
East
AsiaAmericasEuropeTotal
Climate Related/Low Carbon
Social Impact
3%1%
16%14%
45%
38%
45%42%
64%
71%
82%84%
74%79%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
OtherLack of
internal
understanding
Poorer
yields
Lack of
definitions
Poor
research/
analysis
Lack of
Credible
Investment
Total
20162017
� 56% of investors describe current disclosure levels as ‘highly
inadequate’
� This trend is most pronounced in Europe (76%), followed by
the Americas (66%) and Asia (50%)
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10
Europe is leading the charge to integrate ESG criteria into investment products
Investors setting the pace of change
Source: East & Partners research; HSBC, 2017
Integrate ESG as an investment factor in portfolios Percentage of FuM that integrate ESG factors
12
8
17
6
99
16
9
7
11
5
7
8
11
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
Middle
East
AsiaAmericasEurope TotalOver
USD10bn
Up to
USD10bn
64
52
35
17
5042 45
36
48
65
83
5158 55
373441
9
2735
74
636659
91
7365
26
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Over
USD10bn
Up to
USD10bnMiddle
East
AsiaEurope TotalAmericas
Yes - 2017 Yes - 2016 No - 2017 No - 2016 2017 2016
% of ESG Engaged Investors Average % reported
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11
Corporates see investors and international policy makers as primary drivers of Green Financing and disclosures
Investors setting the pace of change
Source: East & Partners research; HSBC, 2017
Drivers of increasing disclosure levels
0
10
20
30
40
50
60
70
80
90
100
Risk of
negative
publicity
Stakeholder
Pressure -
Investors
Best
Practice
OtherStakeholder
Pressure -
Industry
Peers
Stakeholder
Pressure -
NGOs
Regulation
International
Regulation
National
Americas
Asia
Total
Europe
Middle East
Factors that encourage Green Financing activities
Investor pressure
Premium provided by
the market on project
value
Tax breaks or other
incentives
Peer group
actions/behaviours
Lower costs of
funding
Stakeholder
pressure/other
influences
Very encouraging
Encouraging
Somewhat encouraging
% of total market
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12
Only 53% of companies now having an environmental strategy in place and not many of them actively disclose it
Investors setting the pace of change
Source: East & Partners research; HSBC, 2017
Strategy for reducing environmental impact, % Disclosure of environmental strategy by corporates, %
49
75
53
3627
51
25
47
6473
28
43
54
84
53
72
58
46
16
48
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Total Asia Middle
East
AmericasEurope
38
55
34
1911
62
45
66
8189
12
2836
64
43
88
7264
36
58
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Middle
East
AsiaAmericasTotal Europe
Yes - 2017 No - 2017 Yes - 2016 No - 2016 Yes - 2017 No - 2017 Yes - 2016 No - 2016
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13
Over USD100 trillion investment in infrastructure in next 15 years is required globally under 2°C scenario
Opportunities and risks
1. OECD, IEA, Investing in Climate, Investment in Growth, July 2017
Global infrastructure investment needs in next 15 years for a 66% chance of 2°C1
USD trillion, 2016-2030
40.5
15.0
16.5
103.5
9.0
9.0
13.5
Telecoms Power and
electricity T&D
TotalPrimary energy
supply chain
Energy
demand
/efficiency
Water &
sanitation
Transport
39% 13% 8% 14% 9% 16%
PUBLIC INTERNAL
14
“Smart cities” are becoming a driving force
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Opportunities and risks
1. Source: UN-HABITAT, Global report on human settlements 2011 Source: UN-HABITAT, Global report on human settlements 20112. UN Population division3. TechNavio, Global Smart City Market 2016-2020
70% from
Urban
Greenhouse Gas emission1
Smart Energy
� Energy efficiency in buildings
� Smart grids and smart
meters
Smart Infrastructure
� Water treatment
� Waste management
Smart Mobility
� Electric Vehicles
� Traffic management
Smart Security
� Smart street light
� Emergency response
54% lives in
cities today
Global Urbanisation Rate2 Global smart cities market 2016-20203
+22%
0.9
2020F2016
1.4
2018F
0.7
USD trillions
15
Asia-Pacific will be the centre of this transition considering the demand, activities and investment
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Opportunities and risks
1. Wikipedia, List of cities proper by population; HSBC estimation2. Bloomberg New Energy Finance, 2017, META includes Middle East, Turkey and Africa
1.6
1.3
8.4
0.2
2.5
Changes in electricity demand2
PWh, 2016-40
1.1
1.4
4.4
0.8
0.9
Gross capacity additions2
TW, 2016-40
1.2
1.5
1.5
4.8
1.3
Total investment Projected2
USD trillion, 2016-40
60%
9%
18%
2%
11%
51%
16%
13%
11%
9%
47%
15%
15%
12%
13%
5
10
APAC
META
RoW
30
AMER
55
Europe
Top 100 most populous cities1
2016
55%
10%
30%
5%
0%
16
However, with the change of energy sources, various industries will be disrupted
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Opportunities and risks
1. U.S. Energy Information Administration
0
10
20
30
40
50
192519001850 1875 2050F1950 20001975 2025F
Nuclear
Coal
Natural Gas
Petrol
Renewable
Energy consumptions in US by major sources1 (1850-2050) and transformation of transport industry
Wood Coal Oil and Gas Renewables
Horse-carriage Cars (Petrol/ Diesel) Cars (Electric)
NA Locomotives (steam) Locomotives (diesel) Locomotives (Electric)
Ships (wind) Ships (steam) Ships (petrol) Ships (battery)
NA NA Airplanes Airplanes (bio-fuels and
battery)
Wooden roads
Canals
Rail tracks (steel) and stations
Coal-fired power plants
High ways; Cement/pavement
Airports / Seaports
Oil sands/shale oil/arctic drilling
EV Chargers
Battery storage
(in Quadrillion Btu)
17
Case study: Automotive Industry
INTERNAL
Opportunities and risks
1. IEA, Global EV Outlook 20172. Bloomberg New Energy Finance 2017
+
� Battery
� Charger
� Electric Motor
� Controller
� DC/DC Converter
� DC/AC Converter
G
–
� Gasoline Tank
� Gasoline Pump
� Gasoline Engine
� Carburettor
� Alternator
� Smog Controls
G
70% of
component
parts are
different
2,014
1,263
715388
+73%
2016201520142013
Global Electric car stock1
‘000, 2013-16
Battery Prices2
USD/kWh of storage, 2013-16
411 367234 199
188173
116
2015
350
2014
540
2013
599
74
273
-23%
2016
Cells
Pack
Shift from a traditional car to an electric one
18
Energy reserves face risks of being unused from 2010 to 2050 in order to meet the target of 2 °C
INTERNAL
Opportunities and risks
1. Christophe McGlade & Paul Ekins, 2015 – “The geographical distribution of fossil fuels unused when limiting global warming to 2 °C”, scenario without carbon capture and storage
35% of oil
reserves
52% of
natural gas
reserves
Distribution of reserves unburnable by region before 2050 for the 2 °C scenario1 (% of unburnable)
88% of coal
reserves
9%
Central and
South America42%
US
12%
China and India 25%
Africa 26%
38%
Europe 21%
Other developing
Asian Countries
Middle East
6%
53%
73%
22%
59%
34%
61%
77%
73%
99%
95%
90%
60%
89%
Global
19
Financial services have an important role to play in matching investor appetite and global financing needs in what is still an immature market
INTERNAL
Role of the financial services
Create liquid
markets
� Improve definitions of green and sustainable finance
� Increase standardisation of ESG and Sustainable Finance products
� Support the creation of a liquid “green” market
The role of financial services
Reduce
transition
risks
Improve
transparency
� Actively engage transition clients in defining their low carbon strategies
� Create appropriate incentives for transition clients to issue “green”
� Introduce new products and solutions to address specific transition challenges
� Advance the standardisation and roll out of environment/ ESG disclosure
� Improve the link between risk pricing and carbon disclosure/ environment
strategies
20INTERNAL
OUR APPROACH
21
Sustainability at HSBC
INTERNAL
What we do and why we do it
� We anticipate and manage
potential social or
environmental risks that may
arise through our lending and
investment activities
� We support our customers in
making the shift to a lower
carbon economy
� We have committed to cutting
our annual carbon emissions
from 3.5 tonnes per employee
in 2011 to 2.0 tonnes by 2020
� We work with leading charities
to support projects with a
focus on education, the
environment, and health
� For us Sustainability means building our business for the long term by balancing social, environmental and
economic considerations in the decisions we make
� Sustainability underpins our strategic priorities. It enables us to fulfil our purpose as an international bank, help
businesses thrive, and contribute to the health and growth of communities
� Historically, we have three areas of focus:
At HSBC, how we do business is as important as what we do
Sustainable Finance Sustainable Operations Sustainable Communities
Strong relationships with customers, employees and wider communities are key to sustainable success,
and any business that overlooks its wider impact on people and the planet is unlikely to succeed over the
long term.
22
“Supporting Sustainable Economic Growth”
Corporate Sustainability
Future Skills Sustainable Finance
Sustainable Network and
Entrepreneurship
Educate young people about the world of business and managing money
Reach [1] million young people
Help future generations develop skills and capabilities to succeed in a global economy
Support the creation of new companies
Support customers to go abroad and build sustainable supply chains
Support [ ]k young businesses with training and financial support
Help [ ]k customers establish international trade and business activities and improve the quality of their supply chains
Reduce HSBC’s direct impact on the environment
Reduce our annual carbon emissions per employee by more than 40%
Invest in sustain-able economic growth and help our clients manage the transition risk
Provide and facilitate USD100bn of sustainable finance
Financial literacy EmployabilityEntrepreneur-
shipsSustainable
supply chainsHSBC carbon
footprintSustainable
Finance
Provide young people with the
skills to succeed in a global
economy
Facilitate the transition to a low
carbon economy
Country-specific priorities
Global emergency relief fund
Foster new business development
and sustainable international
growth
HSBC water programme
PUBLIC INTERNAL
23
Why should HSBC be involved?
INTERNAL
Globally and locally aligned
� Agreed global agenda to 2030. Along with COP21, this is the clearest ever global framework for action on
sustainable development for business. ‘We recognise the opportunity this new framework presents to business’ –
HSBC Group Chairman
� We’re doing a lot already. We have work ongoing which already contributes significantly to the SDGs: on
climate, water, gender diversity, education etc.
� Respond to financing opportunity. UN agreement specifically expresses that SDGs can only be achieved with
involvement of the private sector. ‘We ask companies everywhere to assess their impact, set ambitious goals and
communicate transparently about the results’ Ban Ki-Moon, UN Secretary General; ‘Oopportunity for private sector to
create & commercialise sustainable solutions at scale’ – HSBC Group Chief Executive
� Anticipate NGO pressure. ‘Greenpeace International views the Sustainable Development Goals as an important to
do list for humanity.’ NGOs are currently mainly seeking to hold governments account (see SDG Watch) but business
may well follow
� Align to government policy direction of travel. Governments around the world will have to integrate the idea
into their own policy and planning and may have to contemplate economic, structural and fiscal
� Our peers and competitors are involved. Barclays is a partner of The Global Partnership for Sustainable
Development Data; Citi has talked about financing opportunities for the SDGs using capital markets; DB announced
partnership with USAID on SDG financing. 71% of businesses say they are already planning how they will engage with
the SDGs; 41% say they will embed the SDGs into strategy and the way they do business within 5 years (PwC, 2015)
24
Sustainability strategy design principles for HSBC
INTERNAL
Strategic context and Sustainable Finance
The Group should support a limited number of priorities and
organise its activities around them
Our sustainability priorities should be aligned with the Group’s
purpose and strategy, respond to global megatrends and address the
interests of our stakeholders
The Group should publish its aspiration for each priority and report
progress against them
Each priority should be supported by a mix of commercial activity,
employee engagement, risk management, and community
investment
Global Business should own and support the Group’s
sustainability priorities and make them part of doing business
Design principlesGuiding thought
The activities should (better) align with the Group’s priority
markets and benefit the communities in which we operate
The Group’s Corporate
Sustainability strategy
should create an explicit
link between our
purpose, our
commercial activities,
and the impact we have
on the communities we
operate in.
Our activities in
Corporate Sustainability
should support those
parts of society that are
most impacted of some
of the fundamental
shifts impacting the
global social, economic,
and environmental
balance
A
B
C
D
F
E
25
Sustainability risk: We must ensure our business anticipates and prepares for shifts in
environmental and social priorities and expectations
INTERNAL
Sustainable Finance
Defence
Forestry
Project Finance
(Equator Principles)
Energy
Chemicals
World Heritage & Wetlands
Agricultural Commodities
Mining & Metals
Freshwater
� Sustainability is embedded in our risk systems
� Framework: policies, processes, people
Exclusion
Sector Policies
External Framework
� One of the first banks to introduce a
Forestry Sector lending policy
� 2013: Major review of the policy,
includes two independent studies on
content and effectiveness
� 2014: Issued new forestry and
agricultural commodities policies, with
emphasis on customers obtaining
independent certification
� 2015: Recognised as a leader in the
Forest 500 ranking of 150 investors’
policies on the sustainability of forest
commodity supply chains
� 2017: Further strengthened policy:
� Expanded prohibited businesses
commitment, making it consistent
with ‘No Deforestation, No Peat and
No Exploitation’ (NDPE) policies,
increasingly common in the palm oil
supply chain
� Extended policy to include refiners,
traders, growers and mills
� In the short transition period before
customers have to make a
commitment to NDPE, HSBC will not
agree new financing facilities to
customers who have not made the
appropriate commitment
26
Strengthened governance structure to facilitate Sustainable Finance (climate business) activities
INTERNAL
Strategic context and Sustainable Finance
Group Management Board
Climate Business Council (CBC)
Global Business and
Regional ExCos
Central Support
GCEO ‘Network’ review meetings
Structure
Climate Risk ManagementWorking Group
MI and ReportingWorking Group
Communication & Engagement
Business DevelopmentWorking Group
• Top-level strategic direction
• Delegate authority to Climate Business Council
• Integrate Sustainability Finance initiatives/considerations into business activities
• Support implementation against Group initiatives and KPI tracking
Key responsibilities
• Guide Sustainable Finance agenda and priorities
• Integrate ‘green’ into corridors, synergies and product development initiatives
• Senior oversight and decision-making
• Set objectives and responsibilities of Working Groups
• Coordinate activities across the Group
• Lead initiatives to protect against climate change risk and enable sustainable financing
activities
• Develop reporting processes to support business development, risk management and
engagement
• Provide programme management support for CBC
• Facilitate coordination and information sharing among key stakeholders
• Develop strategic communication, marketing and engagement campaigns across
stakeholder groups
• Lead initiatives to define and develop business growth opportunities related to sustainable
finance
• Lead initiatives to participate in and respond to public policy developmentsPublic Policy
Working Group
27
Initiatives to deliver our strategic aspirations
INTERNAL
Strategic context and Sustainable Finance
1. Aspirations
and targets
2. Business
opportunities
3. Risk
management
4. External
engagement
5. Alignment
with Sustain-
ability/ Group
6. Reporting and
disclosure
1.1 Define and publish external aspirations
1.2 Translate external approach into objectives, KPIs, and scorecards by Global Business and region
2.1 Identify leads in each major business / geography (in particular London, Paris, New York, Hong Kong)
2.2 Develop sustainable finance strategy for key sectors e.g. renewables, electric vehicles, smart cities; identify target clients
2.3 Develop sustainable finance strategy for major hubs
2.4 Identify opportunities for product innovation and collaboration across the bank
2.5 Prepare targeted material for client engagement
2.6 Increase internal communication/ best practice sharing
2.7 Deliver trainings programme to businesses and functions
4.1 Leverage industry leading research for external engagement
4.2 Step up engagement with key governments and regulators
4.3 Develop and implement roadmap to increase media presence
4.4 Pitch for and win the important awards
4.5 Play a driving role in the development of ecosystems in Hong Kong, London, and Paris
5.1 Align priorities of Group Corporate Sustainability with HSBC’s purpose and strategic aspirations
5.2 Issue first SDG bond and further incorporate SDG/Green principles into Group Treasury and BSM
3.1 Map out portfolio along high / low carbon exposure and identify risks
3.2 Develop policies and approach for highest risk sectors and new opportunity sectors
3.3 Proactively engage with clients, regulators and NGOs
6.1 Improve external disclosure reg. activities and impact in sustainable finance and align reporting on ESG, Sustainability, and Sustainable Finance
Initiatives
� External aspiration with internally aligned targets by business and region
� Clear ownership and milestones for each major geography and business
� Increased client engagement (wider and more relevant)
� Improve knowledge and capabilities
� Perceived as thought leader in sustainable finance
� Portfolio map with identified exposure to high risk sectors
� Policies for future treatment of highest risk sectors and new opportunities
Outcome
� Sustainable Finance as a joint priority of Global Businesses, Corporate Sustainability, and other Group functions
� Improved ESG rating
28
Top-3 Green, Social, Sustainable
Bond underwriter 2016-171
Integrated approach to climate business and sustainability leveraging HSBC’s unique global presence and capabilities
INTERNAL
Sustainable Finance
1. Dealogic 2. Extel survey
Diverse activities to lead client and industry transformation
� Award-winning climate change research team to project thought
leadership on climate change and sustainability
� Promotion of climate change awareness and understanding through
varied client engagement and events
� Policy notes directed to G20 and Multilateral Development Banks to
develop thinking on blended finance
� Active engagement across industry and business forums to advance
climate change discourse
Advancing
thought
leadership and
engagement
� Global Climate Business Council to drive cross-business collaboration
and supporting initiatives; executive level regional forums in Asia,
North America and Europe
� Appointed a Global Head of Sustainable Finance in June 2017
� Dedicated Sustainable Finance Unit established in business (DEC16);
three high-profile recruits to sustainable investments team in 2Q 2017
� Sharing knowledge and experience gained from own carbon reduction
initiatives with clients and suppliers; extending internal sustainability
leadership training to clients
� HSBC’s Corporate Sustainability activities aligned with sustainable
finance priority
Strengthening
organisational
resources
� Global advisory and financing activities enabling development of
renewable energy sources and client activity
� Leading green bond underwriter helping to shape and develop a
global asset class
� Expanding integration into financing and investment products and
business collaboration to progress climate change initiatives
Financing
transition to a
low-carbon
economy
1
2
3
Accredited by UN Green
Climate Fund
(one of only 3 banks)
Ranked #1 Climate Change Research
for fourth consecutive year in 20172
11.4% carbon reduction
per employee since 2015
More than 2,000 employees trained
in Sustainability Leadership
Leadership role in FSB taskforce
on climate-related financial
disclosure (TCFD)
29
Sustaining sustainability: ESG investment key to moving forward
� Major injections of capital are needed to pay for more efficient and less carbon-intensive
technologies and infrastructure, to reduce the carbon footprint of established companies and
industries, and to cover the costs of climate adaptation
� While this represents an enormous challenge, it also presents big opportunities for investors,
businesses, and financial institutions around the globe
� Turning a symbolic commitment to ESG into daily practice will not be easy. But faced with rising
stakeholder demand for meaningful action, there is little choice
� Institutions that get out in front of the growing wave will be the first to reap the benefits of sound
ESG investing: better returns, lower risk, and—should these ideas be widely adopted—a more
sustainable world
Sustainable technology and infrastructure is key to fighting the urgent threat
of climate change
The challenge for policymakers and financial institutions is to develop
capital markets that use common standards to bring together capital with
sustainable financing opportunities
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