UNEP FI’s Environmental Finance Programs Ｓｐｅｃｉａｌ Advisor to UNEP FI Ｔａｋｅｊｉｒｏ Ｓｕｅｙｏｓｈｉ CEO Forum Ⅷ December 5, 2011

What is UNEP Finance Initiative? -is the oldest partnership between the UN and the financial sector. -was born out of the 1992 Earth summit. -started as a simple project with the banking industry. -is the only finance and sustainability network embedded in the UN system. -has 205 signatories spanning banking, insurance and investment and all geographic regions. December 5, UNEP FI’s Environmental Finance Programs

FI‘s mission -to embed environmental, social and governance (ESG issues) thinking and action within financial institutions and across capital markets. -to identify and promote best environmental and sustainability practice at all levels of financial institution operations. December 5, UNEP FI’s Environmental Finance Programs

ＦＩ ` ｓ Ｏｒｇａｎｉｚａｔｉ ｏｎ 1. Global Steering Committee 2 ． Industry Commissions Banking/Investment/Insurance 3.Thematic Advisory Groups Climate Change/Resource Efficiency/ Biodiversity/Emerging issues 4. Regional Task Forces Africa/Asia Pacific/Europe North America/Latin America December 5, 2011 UNEP FI’s Environmental Finance Programs4

5 Our Mission: To identify and promote best environmental and sustainability practice at all levels of financial institution operations. December 5, 2011 UNEP FI’s Environmental Finance Programs

Global Roundtable 2009 Changing finance: -due diligence & risk management -creating value for clients via sustainability management -internal environmental management Financing Change: -green financing -developing green products and services December 5, UNEP FI’s Environmental Finance Programs

December 5, UNEP FI’s Environmental Finance Programs

Global Roundtable ① ・ financial sector can generate job creation in sectors ranging from green technology to ecosystem management. ・ financial sector must do its part in creating mechanisms that lead to a more equitable and green economy.-Mary Robinson ・ a stronger economy is a greener economy. -Lisa Jackson December 5, UNEP FI’s Environmental Finance Programs

Global Roundtable ② ー the Corporate Sustainability Reporting Coalition ~calling on all UN member states to commit to develop a Convention that mandates company boards to consider sustainability issues, and to integrate sustainability issues material to their business into their annual Report and Accounts. December 5, 2011 UNEP FI’s Environmental Finance Programs9

Ａｃｔｉｖｉｔｉｅｓ ｂｙ Ａｓｉａ Ｐａｃｉｆｉｃ the Australasia Group: ・ developed an environmental and sustainability code of conduct for the suppliers of financial institutions. the Japan Group the Korea Group ・ hold the “Financing Low-carbon growth in Asia” summit in Seoul. December 5, 2011 UNEP FI’s Environmental Finance Programs10

Principles for Responsible Investment - April 2006 : launched with 40+signatories - October 2011: over 940 with US$30 trillion １． We will incorporate ESG issues into investment analysis and decision-making process. ２． We will be active owners and incorporate ESG issues into our ownership policies and practices. December 5, UNEP FI’s Environmental Finance Programs

Fiduciary Responsibility October 2005, “Fiduciary Responsibility Ⅰ ” -it may be a breach of fiduciary duties to fail to take account of ESG consideration. July 2009, “Fiduciary Responsibility Ⅱ ” -integration of ESG issues should be a legal responsibility. ～ PRI is now the global framework for responsible investment~ December 5, UNEP FI’s Environmental Finance Programs

Principles for Financial Action for the 21 st Century -Principles for Financial Action towards a Sustainable Society, Japan The Principles 1~7: 1. We will recognize our roles and responsibility, taking into account the precautionary approach, and promote those actions that contribute towards shaping a sustainable society. 2. We will contribute to the formation of a sustainable global society through the development and provision of financial products and services leading to the development and increased competitiveness of “industries contributing to a sustainable society” as represented by the environmental technologies and services sector. December 5, UNEP FI’s Environmental Finance Programs

A green economy 1. We are using up the Earth`s “Capital”. 2. The 20 th `s economy has grown at any cost and has hit the limits. 3. We should live on the “Interest”. 4. We need a global economy that invests I real and inclusive long-term growth. December 5, UNEP FI’s Environmental Finance Programs

Ｇｒｅｅｎ ｅｃｏｎｏｍｙ ＆ ＧＮＨ the brown economy: economic growth at any cost has hit its limits already the green economy: long-termism/inclusiveness environmental protection Green financing can boost flows of finance to support the transition of a brown economy into a green economy. December 5, 2011 UNEP FI’s Environmental Finance Programs15

Ｂｅｙｏｎｄ ＧＤＰ December 5, 2011 UNEP FI’s Environmental Finance Programs16 The King and Queen of Bhutan deeply moved Japanese people. The King`s words touched their hearts. Japanese people go forth in seeking for a new value standard after the “March 11 th” incident.

Thank you very much December 5, UNEP FI’s Environmental Finance Programs