1. Greenpeace East Asia Sustainable Finance Inititive
Overview, Framework and Case Studies
Philip B. Wei
Senior Sustainable Finance Advisor
Greenpeace East Asia
April 2, 2011 in Beijing

2. Agenda 1 Sustainable Finance Introduction 2 Policy Consultation Case 3
GAR Finance Campaign Case 4
The Forthcoming Climate Finance Program
Page 2

3. Agenda 1 Sustainable Finance Introduction 2 Policy Consultation Case 3
GAR Finance Campaign Case 4
The Forthcoming Climate Finance Program
Page 3

4. Strategic & Regulatory
The Framework of the Sustainable Finance Inititive
Strategic & Regulatory
Consultation
Green Solutions
Promotion
CSR, SRI , Climate Finance Standards and Principals (e.g. Carbon Disclosure, Equator Principals)
Green Finance Policies
etc.
Environmental Risk
Disclosure
Renewable Energy
Carbon Market Development
Clean Tech, Waste Management
Ecological Agriculture and Forestry
etc.
Climate Change Risks
Energy Risks
Reputational Risks
Legal and Social Risks
etc.
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5. The Foundamentals of the Finance Sector and How we work accordingly
Provide Scenarios & Outlooks
Visionary
Long Term vs. Short Term
Risk
Return
Change Risk Perception
Promote New Opportunities
Solid Research with Financial Partners
Analytical
Model and Data Based
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6. On the Risk Side: Environmental Disaster = Economic Disaster
On the Risk Side: Environmental Disaster = Economic Disaster? Stock Price of BP (NYSE) After the Oil Spill
Apr.20:Rig sinks in Gulf of Mexico, oil spill risk looms
59.48 USD
S&P 500 Index
May 24:The U.S. government piled pressure on BP Plc to clean up a "massive environmental mess" in the gulf of Mexico
May 31:BP removed from Dow Jones sustainability index
Jun 1/9:U.S. government has launched a criminal probe
Jun 18:credit rating agency cut BP’s rating
Moody’s: Aa2 —A2
S&P: AAˉ —A
Fitch: AA—BBB
26.75 USD
Apr
May
Jun
Source: Reuters
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7. Jul 12:Zijin's copper mine sewage contaminates river.
The Same in China? Stock Price of Zijin Mining Group (HKSE) After Pollution Affair
HENG SENG Index
Jul 12:Zijin's copper mine sewage contaminates river.
5.58 HKD
4.47 HKD
Jul 13
Jul 19
Source: Reuters

8. How should We Send the Risk Information to the Financial Sector?
NGO Voice
Environmental & Social
Risk Analysis (ESRA)
Financial Sector Interest
Biodiversity Issues
Climate Change Issues
Deforestation Issue
Food & Agriculture Issues
Toxic Issues
Pollution Issues
Health Issues
Community Issues
Globalization Issues
Labor Issues
Social Issues
Human Rights Issues
Poverty Issues
Development Issues
Etc.
Environmental Risks
Political Risks
Biodiversity Risks
Climate Change Risks
Social Risks
Etc.
ESRA Institutions
MSCI ESG Research
TruCost
Systainalytics
Muddy Waters Research
EIRIS
ERM
CERES
Economic Trend
Policy Trend
Market Trend
Industrial Trend
Company Profitability
Management Quality
Innovation, IP
Product Development
Supply Chain
Business Expansion
Mergers & Acquisitions
Market Entrance
Price per Share
Return on Investment
Etc. ?
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9. On the Return Side: Sustainable = Profitable
On the Return Side: Sustainable = Profitable? Performance of Dow Jones Sustainability World Index (DJSI World)
Overall Index Performance
-> Mixed Performence
In the Economic Upturn
-> Outperform
In the Economic Downturn
-> Underperform
Source: Dow Jones Sustainability World Index Factsheet, July 2010
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10. In China, the SSE Social Responsibility Index (000048) is not able to significantly outperform the Shanghai Composite Index either
Shanghai Composite Index
Social Responsibility Index
Dec 2010
Jan 2010
Feb 2010
Source: Google Finance, as of 28 February 2011
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11. WilderHill New Energy(NEX) Global Innovation Index 2010
Despite the stimulus, clean energy stocks are less favorable for investors, underperforming the S&P by over 20%, the oil sector by over 40%
WilderHill New Energy(NEX) Global Innovation Index 2010
Source: Bloomberg New Energy Finance 2010
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12. Agenda 1 Sustainable Finance Introduction 2 Policy Consultation Case 3
GAR Finance Campaign Case 4
The Forthcoming Climate Finance Program
Page 12

13. Global Sustainable Stock Exchange Development lead by Emerging Market Exchanges (S. Africa, Singapore, Malaysia, China, etc.)
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14. The Role and Influence of the Stock Exchanges
Source: BM&FBOVESPA
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15. Paticipated 2 Consultations on Environmental Information Disclosure Chinese MEP Singapore Exchange
Page 15
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16. Our Demands on Sustainability Reporting
Mandatory Reporting Regulation by Stock Exchanges
Integrated Sustainability Reporting with Financial Reporting
High Sustainability Impact Sector Classification
Sector Specific Reporting Criteria and Guideline
Supply Chain Sustainability Disclosure and Management
Financial and Regulatory Penalties for False and Misleading Disclosures
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17. Agenda 1 Sustainable Finance Introduction 2 Policy Consultation Case 3
GAR Finance Campaign Case 4
The Forthcoming Climate Finance Program
Page 17

18. GAR and APP – the Key Corporate Campaign Targets
The Worst of the Worsts: Sinar Mas Group – A WIDJAJA Family Controlled Empire
GAR and APP – the Key Corporate Campaign Targets
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19. Sinar Mas Finance Analysis Equity Finance of GAR and the potential IPO of GEP are the Tipping Points
Source: Profundo 2008
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20. Foundamental Financial Reserch from Databases such as Thomson-Reuters, Bloomberg, etc.
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21. Stakeholder Analysis – Equity Finance Regulator, Index Maker and Equity Analyst are the Tipping Points
Tipping
Points
high
Convience, Lobby Hardly
Manage, Align Closely
Index Makers
Regulators
Equity Analyst
Listed Companies
Size and Amount
- small
- median
- big
Shareholders
Financial Research Firms
Underwriter
Stock Exchange
Financial Media
Power
median
Monitor
(Minimum Effort)
Mobilize, Keep Informed
NGOs
low
negative
neutral
positive
Interest
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22. Targeted Index Maker and Equity Analyst for Golden Agri-Resources Ltd
MSCI AC Far Est ex-Japan Index
MSCI Singapore Free Index
Strait Time Index
Dow Jones Singapore Titans 30 Index
Rogers-Van Eck Index
etc.
Example Equity Research Report on GAR by OCBC:
Equity Analyst
BNP Paribas Michael Greenall
CIMB Ivy Ng Lee Fang
CLSA Wilianto Ie
Daiwa Institute of Research Chris Sanda
Deutsche Bank Niklas Olausson
JP Morgan Chang Ying Jian
Morgan Stanley Koh Miang Chuen
Nomura Securities Ken Arieff Wong
OCBC Carey Wong
OSK Alvin Tai
Phillip Securities Research Team
Standard Chartered Adrian Foulger
etc.
Source: Golden Agri-Resources Ltd Annual Report 2009
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23. Stakeholder Analysis – Debt Finance Regulator, Rating Agency and Underwriter are the Tipping Points
high
Convience, Lobby Hardly
Manage, Align Closely
Bank Lender
Tipping
Points
Regulator
Rating Agencies
Underwriter
Size and Amount
- small
- median
- big
Fixed Income Analysts
Financial Reserch Firms
Bondholder
Financial Media
Power
median
Monitor
(Minimum Effort)
Mobilize, Keep Informed
NGOs
low
negative
neutral
positive
Interest
Page 23

24. Rating Record for Golden East Paper
Report: Fitch Ratings Global Corporate Finance Transition and Default Study
Page 24

25. Campaign Leverage Points: Risks, Standards and Policies
Financial Institution Leverage Points
Financial Market L. Points
International Sustainable Finance Standard
Country Level Policies in China
United Nations Global Compact Initiative
Equator Principles
UNEP Financial Initiative
UN Principles for Responsible Investments
Climate Principles
Global Reporting Initiative
etc.
“Green Credit” Policy《关于落实环保政策法规防范信贷风险的意见》
“Credit Blacklist” by Minister of Environmental Protection (MEP)
“Green Securities” Policy《关于进一步规范重污染行业生产经营公司申请上市或再融资环境保护核查工作的通知》
“Green Insurance” Policy《关于环境污染责任保险的指导意见》
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26. Actitivies and Achivements of the GAR Finance Campaign
Financial
Institution
Transaction Cancellation
HSBC, BNP Paribas Divestment and Business Suspension
Credit Suisse, UBS Business Suspension
Policy/Standard Improvement
Consultation of World Bank / IFC Palm Oil Policy
Palm Oil Policy Establishment of HSBC, Credit Suisse, BNP Paribas
Financial
Market
Regulatory Claim
Consultation of the Sustainability Reporting of SGX on Environmental Information Disclosure of Palm Oil Sector
Market Influence
Influence on Environmental and Social Performance Rating (Responsible Research, Sustainalytics, MSCI ESG Research)
Lobbied Equity Analysts and key shareholders
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27. The Result of the GAR Corporate & Finance Campaign
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28. Agenda 1 Sustainable Finance Introduction 2 Policy Consultation Case 3
GAR Finance Campaign Case 4
The Forthcoming Climate Finance Program
Page 28

29. Market & Financial Mechanisms Set-up
The Overall Strategy on Climate Change Mitigation & Adaptation
Lobby the government to actively participate in global treaty and set promising carbon mitigation and renewable energy target and the climate change legislation
Climate
Legislation
Advise government setting up carbon tax and carbon market based on historical and international experiences, make it feasible and functional; boost the Low Carbon Investment and Banking
Market & Financial Mechanisms Set-up
Four steps to show the role Greenpeace could play in order to drive for green technology deployment and behavioral change, in order to meet the 2C target.
Lobbying the government in joining global treaty and set promising carbon reduction goal. (e.g. China had already set a goal of carbon intensity reduction by 40-45% by 2020)
With the signature of international agreement, GP shall also use its international platform to help emerging economies to build up its own cap-and-trade system, in order to meet the reduction goal for individual countries,
With the cap set up, GP can help the government to allocate the emission allowances in various sectors in a transparent and fair way. Very importantly, the number of allowances in the market shall be scrutinized, since more allowances than needed will directly lead to the crash of carbon market again. And in the meantime, try to help government to apply carbon tax, which can be one very effective way to increase the carbon price.
With the risen carbon price, it will make fossil fuel with large amount of carbon emission not economically viable at all, so people would be more willingly to turn to renewables. In the meantime, with high carbon and fuel price, people will automatically turn to behavioral change, and this will be very positive influence of overall climate change battle.
With high carbon price, advocate renewable and clean tech as better alternative, as well as reduction in carbon intensive industries e.g. coal
Green Tech Deployment &
Carbon Emission Reduction
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30. The Forthcoming GPEA Climate Finance Program 2011-2013
Research on Price on Carbon and its Mechanisms: Tax & Trade
Carbon Pricing
Policy Lobby & Advocacy on Voluntary & Internal Trading
Policy Lobby & Advocacy on Cap-and-Trade for the Energy Sector
Policy Lobby & Advocacy on Low Carbon Investment
Low Carbon
Finance
Policy Lobby, Ranking & Advisory on Low Carbon Banking
Clean Energy Technologies Promotion to PE/VC
Clean Energy
Investment
Clean Energy Projects Show-case to PE/VC
Financial and Economic Case for Clean Energy vs. Fossil Fuel
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31. Thank You!