1. Sustainable Finance Climate Change and Investment 15 th January 2015 Sue Charman

2. Public Finance Finance is a Key Driver Finance is a key lever to influence business strategy and supply chains to reduce their threats to the natural world and to provide financial mechanisms, which protect and encourage sustainable ecosystems Ecosystems Govs Business Private Finance Supply chains NGOs Financial mechanisms

3. Finance - Theory of Change Business and Governments are drawing on the principal of the natural world rather than the interest, funded by public and private sector finance and driven by the need for short term profits/growth. Finance serves every economic sector with major impacts on our environment, including energy production, fishing, agriculture and logging. We are therefore interested in the way money, public or private, flows and in redirecting those financial flows. Capital needs to be increasingly invested in sectors that safeguard the planet.

4. Objective 1 - Climate Credible Investing Money is being diverted from key carbon intensive companies and sectors into businesses aligning with a sustainable and green economy, bringing new opportunities for capital (through highlighting the risks and quantifying them where possible, identifying opportunities, contributing to the framework to help define 2deg investing): 4

5. Plans and Opportunities 2015 5 Mercer Report – April 2015 ShareAction insurance engagement – Q1/Q2 2015 Further climate opportunities with ShareAction Regulator Engagement Central Banks - incl. Bank of England (Discussions with ISU) WWF International BIS project on Basel III Input into GCEI Finance Strategy Ongoing opportunities to engage business in advocacy

6. Key stakeholders/partners Stakeholders Mercer and partners in project Bank of England Investment companies Partners ShareAction ISU Smith School/Ben Caldecott WWF international/WWF Switzerland/WWF US GCEI Aviva 6