SDG
INDUSTRY
MATRIX
Financial Services
New Sustainable Development Goals to make our world more:
Prosperous ⢠Inclusive ⢠Sustainable ⢠Resilient
Produced jointly by:
and
In September 2015, 193 member States
of the United Nations will meet in
New York to adopt 17 new Sustainable
Development Goals (âSDGsâ) to make
our world more prosperous, inclusive,
sustainable and resilient.
NEW GLOBAL GOALS
FOR SUSTAINABLE
DEVELOPMENT
GLOBAL GOALS
2015 - 2030
The SDGs are an ambitious plan of action
for people, planet and prosperity. They are
universal, applying to all nations and people,
seeking to tackle inequality and leave nobody
behind. They are wide ranging including ending
poverty and hunger, ensuring sustainable
consumption and production, and promoting
peaceful and inclusive societies.
The agreement on a new sustainable
development agenda expresses a consensus
by all Governments that the SDGs can only
be achieved with involvement of the private
sector working alongside Governments,
Parliaments, the UN system and other
international institutions, local authorities,
civil society, the scientiďŹc and academic
community â and all people. Hence,
Governments in the Post-2015 declaration
ââŚcall on all businesses to apply their
creativity and innovation to solving
sustainable development challengesâ.
Each and every SDG provides an opportunity
for business and two are worth highlighting as
cross-cutting themes:
SDG 12 focuses on production and
consumption and includes a speciďŹc target
on âadopting sustainable business practices
and reportingâ;
SDG 17 includes two targets on multi-
stakeholder partnerships to ensure this
attracts sufďŹcient focus.
SUSTAINABLE
DEVELOPMENT
GOALS
E
L
P
O
E
P
To ensure healthy
lives, knowledge,
and the inclusion
of women and
children.
D
I
G
N
I
T
Y
To end poverty
and ďŹght
inequality.
P
R
O
S
P
E
R
I
T
Y
To grow
a strong,
inclusive, and
transformative
economy.
E
C
T
I
S
J
U
To promote safe
and peaceful
societies, and
strong institutions.
P
L
A
N
E
T
To protect our
ecosystems for
all societies and
our children.
P
A
R
T
N
E
R
S
H
I
P
To catalyze
global solidarity
for sustainable
development.
NO
POVERTY
ZERO
HUNGER
GOOD HEALTH
AND WELL-BEING
QUALITY
EDUCATION
GENDER
EQUALITY
CLEAN WATER
AND SANITATION
AFFORDABLE AND
CLEAN ENERGY
DECENT WORK AND
ECONOMIC GROWTH
INDUSTRY, INNOVATION
AND INFRASTRUCTURE
REDUCED
INEQUALITIES
SUSTAINABLE CITIES
AND COMMUNITIES
RESPONSIBLE
CONSUMPTION
AND PRODUCTION
CLIMATE
ACTION
LIFE
BELOW WATER
LIFE
ON LAND
PEACE, JUSTICE
AND STRONG
INSTITUTIONS
PARTNERSHIPS
FOR THE GOALS
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SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 4
CONTENTS
SDG INDUSTRY MATRIX................................................................................................................. 5
FINANCIAL SERVICES INDUSTRY HIGHLIGHTS
.................................................................................... 7
Opportunities for shared value ................................................................................................................ 8
The global ďŹnancial system in context .........................................................................................................10
Financial policy & regulation ................................................................................................................... 11
Good practice principles & initiatives ..........................................................................................................12
Multi-stakeholder partnerships and collaborations .............................................................................................13
SDG INDUSTRY MATRIX FOR FINANCIAL SERVICES
.............................................................................16
SDG 1 End poverty in all its forms everywhere..............................................................................................17
SDG 2 End hunger, achieve food security and improved nutrition and promote sustainable agriculture ......................................19
SDG 3 Ensure healthy lives and promote well-being for all at all ages........................................................................21
SDG 4 Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all ..................................22
SDG 5 Achieve gender equality and empower all women and girls ..........................................................................25
SDG 6 Ensure availability and sustainable management of water and sanitation for all.......................................................27
SDG 7 Ensure access to affordable, reliable, sustainable and modern energy for all .........................................................28
SDG 8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all............30
SDG 9 Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation ...............................32
SDG 10 Reduce inequality within and among countries.......................................................................................33
SDG 1 1 Make cities and human settlements inclusive, safe, resilient and sustainable ........................................................35
SDG 12 Ensure sustainable consumption and production patterns............................................................................37
SDG 13 Take urgent action to combat climate change and its impacts ........................................................................39
SDG 14 Conserve and sustainably use the oceans, seas and marine resources for sustainable development .................................42
SDG 15 Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat
desertiďŹcation, and halt and reverse land degradation and halt biodiversity loss
......................................................43
SDG 16 Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build
effective, accountable and inclusive institutions at all levels
..........................................................................45
SDG 17 Strengthen the means of implementation and revitalize the global partnership for sustainable development .........................47
KEY CONTRIBUTORS
....................................................................................................................48
SDG INDUSTRY MATRIX
A
PURPOSE
The SDG Industry Matrix
aims to inspire and inform
greater private sector
action to drive inclusive,
sustainable prosperity.
Recognising that the opportunities vary by industry, the Matrix provides
industry speciďŹc ideas for action and industry speciďŹc practical examples
for each relevant SDG. It proďŹles opportunities which companies expect to
create value for shareholders as well as for society.
The SDG Industry Matrix has been jointly conceived and led by the United
Nations Global Compact and KPMG International Cooperative (âKPMGâ)
to convert the interest stimulated by the Sustainable Development Goals
into strategic industry activities which grow in scale and impact. This could
be through sparking new innovative approaches, prompting companies
to replicate successful activities in new markets, catalysing new
collaborations and increasing participation in existing collaborations.
B
OPPORTUNITY
Through the lens of âshared
valueâ the private sector can
identify opportunity
in addressing social
and environmental
challenges.
In the context of the SDGs, âshared
valueâ represents the coming together of
market potential, societal demands and
policy action to create a more sustainable
and inclusive path to economic growth,
prosperity, and well-being
1
. The SDGs
provide an opportunity for companies to
create value for both their business and
society through:
Developing products, services,
technologies and distribution channels
to reach low-income consumers;
Investing in supply chains which are
ethical, inclusive, resource-efďŹcient
and resilient;
Improving the skills, opportunities,
well-being and hence productivity of
employees, contractors and suppliers;
Increasing investment in renewable
energy and other infrastructure projects.
Several trends are making these
opportunities more compelling:
Demographics: The population in
developing regions is projected to
increase from 5.9 billion in 2013 to 8.2
billion in 2050 whilst the population of
developed regions will remain around
1.3 billion people;
Income growth: Between 2010 and
2020, the worldâs bottom 40% will
nearly double their spending power
from US$3 trillion to US$5.8 trillion;
Technology: Rapid innovation is
catalysing improved market analysis,
knowledge sharing, product and
service design, renewable energy
sources, distribution models and
operational efďŹciencies. Technology is
also lowering market entry costs for
non-traditional actors and start-ups with
innovative âdisruptiveâ business models;
Collaborations: Governments,
businesses, international ďŹnancial
institutions, the United Nations, civil
society and academia are developing
new ways of working with each other
in pursuit of compatible objectives.
1. âUnlocking the Power of Partnership: A Framework for Effective Cross-Sector Collaborationâ, KPMG International
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 5
SDG INDUSTRY MATRIX (CONTINUED)
C
METHODOLOGY
The SDG Industry Matrix has
been compiled through
a participatory
three step process:
1.
KPMG and the United Nations Global Compact drew on their respective industry
insights to populate a preliminary draft with examples and ideas for action;
2.
The United Nations Global Compact circulated the draft to its network of private
sector participants, business associations and UN agencies requesting them to
submit further examples and ideas for action;
3.
KPMG and the United Nations Global Compact co-convened a multi-stakeholder
working roundtable (one per industry, each in a different continent) to agree the ďŹnal
SDG Industry Matrix content, including the most signiďŹcant opportunities to proďŹle
in the âIndustry Focus Highlightsâ section.
D
SYNERGIES
The SDG Industry Matrix
draws on the commitment
that companies have already
expressed to the UN Global
Compactâs ten principles.
The SDG Industry Matrix builds on the recognition that all companies,
regardless of their size, sector or geographic footprint, have a responsibility
to comply with all relevant legislation, uphold internationally recognized
minimum standards and to respect universal human rights. The UN
Global Compact website includes key tools and resources which can help
companies meet their minimum responsibilities and guide them to take
supportive actions beyond these minimum responsibilities to advance social
and environmental goals.
The SDG Industry Matrix is also complemented by the SDG Compass
(produced by the Global Reporting Initiative, the United Nations Global
Compact and the World Business Council for Sustainable Development),
which guides companies on deďŹning strategic priorities, setting goals,
assessing impacts and reporting.
Opportunities for Shared Value which are applicable to all industries are in italics
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 6
FINANCIAL SERVICES
INDUSTRY HIGHLIGHTS
This section proďŹles some of the most
signiďŹcant opportunities, principles-
based initiatives and collaborations
for the Financial Services industry. It
also presents a simpliďŹed view of the
sources of capital within the ďŹnancial
system to explain the context within
which these take place. The supporting
Matrix provides additional ideas and
examples submitted by companies
(it is not intended to be an exhaustive list).
FINANCIAL SERVICES
OPPORTUNITIES FOR SHARED VALUE
The Financial Services
industry is a vital enabler
for the real economy.
It supports improved
economic well-being which
then increases the ability of
families and Governments
to improve social
outcomes. The biggest
opportunities for shared
value â i.e. where we see
the coming together of
market potential, societal
demands and policy action
- are grouped around the
following themes:
Opportunities for shared value
ACCESS
Increasing ďŹnancial inclusion for individuals (SDGs 1, 2, 3, 4, 10),
small and medium sized enterprises (SDGs 5, 8) and Governments
(SDG 13). This includes access to secure payment and remittance
facilities, savings, credit and insurance. These core ďŹnancial
services:
Facilitate secure payment for goods and services including
regional and international trade;
Enable smoothing of cashďŹows and consumption over time;
Provide ďŹnancial protection; and
Support more efďŹcient allocation of capital.
INVESTMENT
Investing in, ďŹnancing and insuring renewable energy (SDGs 7, 13)
and other infrastructure projects (SDGs 6, 9). This includes:
Ba
nks raising capital through the debt and equity markets for
Government and private sector investments;
Asset managers investing as part of a diversiďŹed portfolio as well
as to meet demands of impact investors;
International/development ďŹnancial institutions and sovereign
wealth funds helping to de
-
risk investments for institutional
investors; and
Institutional investors and ďŹnancial institutions with a longer
-
term
investment horizon â such as pension funds and insurers â
investing in infrastructure.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 8
FINANCIAL SERVICES
OPPORTUNITIES FOR SHARED VALUE
â
The world has never
before been united by
a set of global goals on
poverty, inequality, injustice
and climate change. Not
achieving these Goals would
be the biggest market
failure of our time. Financial
markets must play a vital
role in creating a sustainable
future for us all.
Mark Wilson, Chief Ex
â
ecutive
OfďŹcer, Aviva Plc
Opportunities for shared value
(CONTINUED)
RISK
Leveraging risk expertise to directly inďŹuence customer behavior
and to create more resilient nations through:
Developing innovative pricing models which incentivize more
sustainable living and production (SDG 12); and
Sharing non -proprietary risk data, risk analysis and risk
management expertise to inform public policy and practice (SDG
11). This includes insurers collaborating to develop open source
risk models which can inform disaster risk reduction policies and
actions such as land zoning, building codes and investment in
resilient infrastructure.
CROSS-CUTTING
Adoption of good practice principles, policies and risk frameworks
to guide business transactions and investments â particularly on
sensitive sectors or issues;
Pricing which reďŹects ESG risks and opportunities; and
Active investor stewardship
Posit
ively
inďŹuencing environmental, social and governance
(ESG) practices of corporate clients and investee companies (SDGs
13, 14, 15, 16). This can be achieved through:
Multi-stakeholder partnerships and collaborations will become increasingly important in realising
these shared value opportunities. Many solutions will include blended ďŹnance (e.g. combining a
ďŹnancial institutionâs ďŹnance with third party concessional funds), innovative ďŹnancing mechanisms
such as development and climate bonds, and application of new technologies. There is critical
momentum of activity and the Sustainable Development Goals are accelerating the coming together
of market potential, societal demands and policy action.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 9
FINANCIAL SERVICES
THE GLOBAL FINANCIAL SYSTEM
IN CONTEXT
In order to provide context
for the opportunities and
examples, this depicts a
very simpliďŹed view of the
global ďŹnancial system.
Importantly it shows how
the ďŹnancial system relates
to the real economy, the
main sources of capital,
the key stakeholders and
ďŹnancial ďŹows. Policies,
rules, regulations,
structures and incentives
shape the framework
within which ďŹnancial
institutions take decisions.
The global ďŹnancial system
in context
⢠Good Governance & Rule of Law
⢠Enabling Environment
⢠Sustainable Financial Regulation
⢠Incentives & Catalytic Finance
⢠Public Private Partnership
⢠Private Finance for Public Investment
(ie. Sovereign and Municipal Debt,
Infrastructure)
⢠Taxes
Inclusive
Growth
â˘
Human Rights
â˘
Productivity & Taxes
â˘
Jobs & Labor
Standards
Natural
Resources
â˘
Food & Agriculture
â˘
Energy & Climate
â˘
Water & Sanitation
Human needs
& Capabilities
â˘
Health
â˘
Education
â˘
Women
Empowerment
Corporate
Governance
& Enabling
Environment
â˘
â˘
â˘
â˘
REAL ECONOMY FINANCIAL ECONOMY
Debt,
Insurance,
Guarantee
SDGs
Infrastructure
Technology
Human Rights
Anti-Corruption
ASSET
OWNERS
PEOPLE
GOVERNMENTS
BANKS AND INSURANCES
FOUNDATIONS
COMPANIES
INVESTMENT
MANAGERS
I
N
V
E
S
T
M
E
N
T
C
H
A
I
N
S
o
c
i
a
l
I
n
v
e
s
t
m
e
n
t
C
o
r
p
o
r
a
t
e
I
n
v
e
s
t
m
e
n
t
&
F
D
I
Portfolio Investment
Mandates
Institutional Investors
Source: âPrivate Sector Investment and Sustainable Developmentâ UN Global Compact, UNCTAD, UNEPFI, PRI (2015)
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 10
FINANCIAL SERVICES
FINANCIAL POLICY & REGULATION
Financial policy & regulation
Government policy and regulation inďŹuence the extent to which private sector capital aligns to sustainable development. There are
several global initiatives addressing this including the UN Environment Programâs Inquiry into the Design of a Sustainable Financial
System and Principles for Sustainable Insurance (PSI) Initiative, and the Access to Insurance Initiative. Whilst policy and regulation
are beyond the scope of this publication, its importance is articulated in paragraph 38 of The Addis Ababa Action Agenda of the
Third International Conference on Financing for Development agreed by 193 UN member states in July 2015:
We acknowledge the importance of robust risk-based regulatory frameworks for all
â
ďŹnancial intermediation, from microďŹnance to international banking. We acknowledge that
some risk-mitigating measures could potentially have unintended consequences, such as
making it more difďŹcult for micro, small and medium sized enterprises to access ďŹnancial
services. We will work to ensure that our policy and regulatory environment supports ďŹnancial
market stability and promote ďŹnancial inclusion in a balanced manner, and with appropriate
consumer protection. We will endeavor to design policies, including capital market regulations
where appropriate, that promote incentives along the investment chain that are aligned with
long-term performance and sustainability indicators, and that reduce excess volatility.
â
â
The Sustainable Development
Goals serve as a global compass
which the ďŹnancial community of
banks, insurers and investors can
use to guide their core business
towards achieving economic,
social and environmental
sustainability. In this context,
the insurance industry can lead
the way in placing sustainable
development at the heart of risk
management, and in placing
risk management at the heart of
sustainable development.
Butch Bacani, Program Leader, The U
â
N
Environment Program Finance Initiative âs
(UNEP FI) Principles for Sustainable
Insurance (PSI)
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 11
FINANCIAL SERVICES
GOOD PRACTICE PRINCIPLES
& INITIATIVES
Good practice
principles & initiatives
In addition to the UN
Global Compactâs ten
principles in the areas
of human rights, labor,
the environment and
anti-corruption, there
are a number of good
practice principles and
initiatives which align with
the Financial Services
industryâs contribution to
sustainable development.
These include the
following:
EQUATOR PRINCIPLES
This is a risk management framework for determining,
assessing and managing environmental and social
risks in projects. The ten principles are primarily
intended to provide a minimum standard for
due diligence to support responsible risk decision-
making. As at July 2015 there are 80 Equator
Principles Financial Institutions covering over
70% of international project înance debt in
emerging markets.
GREEN BOND PRINCIPLES
These are voluntary process guidelines that provide
guidance to issuers on the key components involved
in launching a credible Green Bond; they aid investors
by ensuring availability of information necessary to
evaluate the environmental impact of their Green
Bond investments; and they assist underwriters by
moving the market towards standard disclosures
which will facilitate transactions. In addition three
banks have published a proposed Social Bond
and Sustainability Bond Appendix to encourage
transparency, disclosure and integrity in the
development of these new markets.
UNEP FINANCE INITIATIVE & THE
PRINCIPLES FOR SUSTAINABLE
INSURANCE (PSI)
Founded in 1992, UNEP FI is a unique global
partnership between the United Nations Environment
Program (UNEP) and the global înancial sector.
UNEP FI works with over 200 banks, insurers and
investors, and a range of partner organizations, to
better understand the impacts of environmental,
social and governance issues on înancial performance
and sustainable development. Its work includes
setting global principles and standards; pioneering
research and tools; building capacity and sharing best
practices; policy and stakeholder engagement; and
national, regional and global events and activities.
Endorsed by the UN Secretary-General and developed
by UNEP FI, the Principles for Sustainable Insurance
(PSI) were launched at the 2012 UN Conference
on Sustainable Development (Rio+20). The PSI are
a framework for the insurance industry to address
ESG risks and opportunities. They represent a
global roadmap for the insurance industryâs role in
sustainable development. Aligned with an insurerâs
spheres of inîuence, the principles ask insurers to
embed in their decision-making ESG issues relevant
to their core business; to work together with clients,
business partners, Governments, regulators and other
key stakeholders; and to demonstrate transparency
and accountability. As at September 2015 there are
over 80 signatories, including insurers representing
20% of world premium volume and US$14 trillion in
assets under management, making the PSI the largest
collaborative initiative between the UN and the
insurance industry.
UN-SUPPORTED PRINCIPLES FOR
RESPONSIBLE INVESTMENT (PRI)
Investors publicly commit to adopt and implement
six principles, where consistent with their îduciary
responsibilities, believing this will improve their
ability to meet commitments to beneîciaries as
well as better align investment activities with the
broader interests of society. The principles include
incorporating environmental, social and governance
issues into investment analysis, decision-making
processes, ownership policies and processes. As
at July 2015 there are close to 1,400 signatories
representing US$59 trillion of assets under
management.
SUSTAINABLE STOCK EXCHANGES
INITIATIVE (SSE)
The SSE initiative provides an effective platform
for exchanges to engage with the UN, investors,
companies and regulators. By exploring how
exchanges can work with these actors, the SSE is
working to create more sustainable capital markets.
The SSE speciîcally focuses on working in partnership
with exchanges, in collaboration with investors,
regulators, and companies, to enhance corporate
transparency â and ultimately performance â on
environmental, social and corporate governance
issues and encourage sustainable investment. As of
July 2015, the SSE has 23 Partner Stock Exchanges,
which list over 21,000 companies globally and
represent US$41 trillion in market capitalization.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 12
FINANCIAL SERVICES
MULTI-STAKEHOLDER PARTNERSHIPS
AND COLLABORATIONS
Multi-stakeholder partnerships
and collaborations
The SDG Industry Matrix
includes several examples
of collaborations which
advance sustainable
development. In addition,
some of the largest
global multi-stakeholder
collaborations for Financial
Services include:
BANKING ENVIRONMENT INITIATIVE
The Chief Executives of some of the worldâs largest
banks created the Banking Environment Initiative (BEI)
in 2010 with the mission to lead the banking industry
in collectively directing capital towards socially and
environmentally sustainable economic development.
Convened by the University of Cambridge, the group
comprises 11 leading banks with over US$10 trillion
of assets. The BEI has developed a powerful model
of change, at the heart of which lies a simple thesis:
banks work for their clients and this group can only be
transformative if it truly aligns banksâ interests with
those of their clients. The BEIâs model is therefore to
form strategic partnerships with groups of leading
corporates, investors and even regulators that share
the BEIâs ambitions. The group then works to catalyze
mainstream change by (i) driving industry-level
standards that accelerate the emergence of new
business norms; (ii) innovating banking products and
services that address unmet needs in a sustainable
economy; and (iii) helping policy-makers and
regulators evolve a level playing îeld for sustainable
business models.
THE INVESTMENT LEADERS
GROUP (ILG)
A group of eleven inîuential investment managers
and asset owners aiming to drive the investment
chain towards responsible, long-term value creation.
Jointly conceived by the University of Cambridge and
Natixis Asset Management, the group is developing
a fresh approach for the industry based on a vision
of responsible investment and a set of actions and
tools to lead the industry there. One key focus of the
ILG is to enable investors to report to beneîciaries
and manage the contribution of their investment
towards sustainable development. Inspired by the
UN Sustainable Development Goals, the group has
developed an Impact Evaluation Framework, which
clariîes which social and environmental impacts
investors should aim to disclose. It focuses on how
investment achieves environmental and social
outcomes across various asset classes and investment
styles, and aims to enable beneîciaries and clients to
make practical choices about how they invest
their money.
THE PORTFOLIO DECARBONISATION
COALITION
A multi-stakeholder initiative that will drive
greenhouse gas emission reductions by mobilizing a
critical mass of institutional investors committed to
gradually decarbonizing their portfolios. Members of
the Coalition share a dual vision, setting themselves
two interconnected and intermediary targets to îrst
measure and disclose their carbon exposure, and then
to take action to decarbonize.
GLOBAL PARTNERSHIP FOR
FINANCIAL INCLUSION
An inclusive platform for all G20 countries, interested
non-G20 countries and relevant stakeholders to carry
forward work on înancial inclusion, including the
implementation of the Financial Inclusion Action
Plan, endorsed at the G20 Summit in Seoul. Seven
implementing Partners coordinate the implementation
of the activities. The private sector participates
through those implementing partners, in particular
the International Finance Corporation, the Better Than
Cash Alliance, and the Consultative Group to Assist
the Poor.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 13
FINANCIAL SERVICES
MULTI-STAKEHOLDER PARTNERSHIPS
AND COLLABORATIONS
Multi-stakeholder partnerships
and collaborations
(CONTINUED)
CLIMATEWISE
Over 30 leading insurers are members of ClimateWise,
a global industry leadership platform convened by
the University of Cambridge, which aims to drive an
industry response to climate change. ClimateWise
pursues its mission by combining the expertise of
the University of Cambridge with leading insurer
practice, thereby creating a platform for collaboration
with stakeholders from across the insurance value
chain, Government and clients to tackle exposure to
climate-related risk. In recent years, ClimateWise
has collaborated with the UK Prudential Regulatory
Authority to inform its inquiry into the impacts of
climate change on the insurance industry and the
customers its serves; has worked with city authorities
in North America to identify ways that insurance
can make investments in support of climate resilient
cities; partnered with energy companies to develop
risk management solutions for emerging low carbon
energy technologies; and has worked to enable
insurers to direct more of their invested assets
towards building a low carbon, climate
resilient economy.
THE 1-IN-100 INITIATIVE
This applies the climate and natural hazard risk
stress tests that have transformed the resilience of
the insurance industry into the wider înancial sector
and across the economy. It includes the development
and adoption of risk assessment standards for
companies and public entities to evaluate the 1 in
100 year, 1 in 20 and annual average loss from these
risk and the integration of these disclosures into
înancial regulation, accounting and rating. Using
these techniques excess natural hazard risk will
proportionally decrease the value of assets, while
resilience will be recognized.
CLIMATE BO N DS INITIATIVE
An international, investor-focused not-for-proît
focused on mobilizing the US$100 trillion bond market
for climate change solutions. It is encouraging issuers,
supporting investors and developing standards
to provide assurance for investors regarding the
environmental integrity of climate bonds. Several
banks are partner organizations, along with
other stakeholders.
THE MUNICH CLIMATE INSURANCE
INITIATIVE
This strives to fulîl four objectives, (i) develop
insurance-related solutions to help manage the
impacts of climate change; (ii) conduct and support
pilot projects, in partnerships and through existing
organizations and programs, sharing success
stories and lessons learned; (iii) promote insurance
approaches in cooperation with other organizations
and initiatives; (iv) Identify and promote loss reduction
measures for climate-related events.
THE ACCESS TO INSURANCE
INITIATIVE (A2II)
This aims to increase access to insurance by inspiring
and supporting supervisors to promote inclusive and
responsible insurance, thereby reducing vulnerability.
Pillar 1 supports supervisors with knowledge on înancial
inclusion topics by developing global and regional
learning tools and evidence-based synthesis of regulatory
good practices to inform globally accepted Insurance
Core Standards. Pillar 2 assists policymakers and
supervisors with the proportionate and access-oriented
implementation of the Insurance Core Principles in
national regulation and supervisory frameworks.
THE UNEP FI PRINCIPLES FOR
SUSTAINABLE INSURANCE (PSI)
INITIATIVE
The PSI is the largest collaborative initiative between
the UN and the insurance industry. The vision of the
PSI Initiative is of a risk aware world, where the insurance
industry is trusted and plays its full role in enabling a
healthy, safe, resilient and sustainable society. Its
purpose is to enable the global insurance industry to better
understand, prevent and reduce environmental, social
and governance risks, and better manage opportunities
to provide quality and reliable risk protection. A
concrete example of collaboration is the PSI Global
Resilience Project (GRP). The GRP brings together
insurers from around the world and key stakeholders to
build disaster-resilient communities and economies by
rebalancing approaches to natural disasters away from
post-disaster relief and recovery, to investing in upfront
measures that reduce disaster risk and build resilience.
The GRP is doing this by deepening understanding of
disaster risk reduction activities globally related to
natural hazards; assessing the economic and social costs
of disasters, the effectiveness of risk reduction measures,
and areas of high exposure and vulnerability; and engaging
Governments, communities, NGOs and businesses to
help them better manage and reduce disaster risk.
INSURANCE DEVELOPMENT FORUM
(IDF)
Formed in 2015 under the auspices of the Political
Champions Group for Disaster Resilience, this brings
together national and regional Governments, the
global insurance sector, UN Agencies and other
international institutions to enable the growth of
insurance related capabilities and capacity to support
disaster risk reduction and the wider objectives of the
SDGs. The IDF is co-chaired by a senior member of
the public sector and the insurance industry, with the
secretariat provided by the World Bank Global Facility
for Disaster Reduction and Recovery with support from
the International Insurance Society âand UNDP.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 14
FINANCIAL SERVICES
MULTI-STAKEHOLDER PARTNERSHIPS
AND COLLABORATIONS
Multi-stakeholder partnerships
and collaborations
(CONTINUED)
THE SMART RISK INVESTING
PROJECT
An insurance industry-wide initiative which
aims to encourage and enable all insurers to
incorporate sustainability considerations in their
asset management policies and practices. It raises
standards for insurersâ responsible investments by
harnessing their expertise in risk assessment and
applying it to asset management decisions. The Smart
Risk investing framework stimulates new ways of
thinking for insurersâ asset managers; by integrating
environmental and social risk considerations in the
selection of assets, they will have a rigorous, informed
basis for selecting assets that promote social and
environmental resilience, and for not selecting assets
that present high risk to our world.
MONTREAL CARBON PLEDGE
By signing the MontrĂŠal Carbon Pledge, investors
commit to measure and publicly disclose the carbon
footprint of their investment portfolios on an annual
basis. The Pledge was launched on 25 September
2014 at PRI in Person in MontrĂŠal, and is supported
by PRI and the UNEP FI. It aims to attract commitment
from portfolios totaling US$3 trillion in time for the
United Nations Climate Change Conference (COP 21)
in December 2015 in Paris. It allows investors (asset
owners and investment managers) to formalize their
commitment to the goals of the recently announced
Portfolio Decarbonization Coalition, which will
mobilize investors to measure, disclose and reduce
their portfolio carbon footprints at the scale of
hundreds of billions of dollars by the December 2015
UN Climate Change Conference.
GLOBAL IMPACT INVESTING
NETWORK
This Network provides a platform for like-minded
investors to meet and take part in activities that build
the impact investing industry from a practitionerâs
perspective. Network members gain access to industry
information, tools, and resources to enhance their
capacity to make and manage impact investments
and connect with one another through virtual and
in-person members-only events.
â
The Sustainable
Development Goals provide a
focus for the worldâs efforts
to meet global challenges
including climate change,
water management and
sanitation and equitable
education. The opportunity
clearly exists for the
private sector to create and
commercialise sustainable
solutions at scale.
Stuart Gulliver, Group C
â
hief
Executive, HSBC Holdings plc
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 15
SDG INDUSTRY MATRIX
FOR FINANCIAL
SERVICES
The following pages outline
opportunities â under each of the 17
SDGs â for companies to create value
for their business whilst creating a
more sustainable and inclusive path
to economic growth, prosperity, and
well-being. It also proďŹles practical
company examples submitted through
the consultation process.
Photo: Alex Baluyut/World Bank
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 1
NO
POVERT Y
SDG 1
End poverty in all its forms everywhere
Photo: Edwin Huffman/World Bank
OPPORTUNITIES FOR SHARED VALUE
⢠Innovate to develop new înancial products, credit scoring methodologies, operating models and distribution
channels (including mobile banking) to advance înancial inclusion, including banking for the 2.5 billion
adults currently without a bank account and microinsurance to increase social protection.
LEADING BY EXAMPLE
⢠MasterCard, with US$11 million of funding from a
charitable foundation, has established MasterCard
Labs which is an innovation lab in East Africa
aiming to expand digital înancial services to 100
million people globally. It will generate new ideas
with local entrepreneurs, Government and other
stakeholders across East Africa and an additional
US$8 million is reserved for ideas reaching the
incubation phase.
⢠Blue Marble Microinsurance is a microinsurance
incubator developed by a consortium of insurers
and reinsurers to drive product, distribution and
operational innovation in the launch of 10 new
microinsurance ventures over the next 10 years. The
consortium includes Zurich Insurance Group; Yes;
American International Group, Inc.; Aspen Insurance
Holdings Limited; Guy Carpenter & Company; LLC
& Marsh & McLennan Companies, Inc.; Hamilton
Insurance Group Ltd.; Old Mutual plc.; Transatlantic
Reinsurance Company; and XL Catlin. Technology is
an integral part of the project.
⢠The International Cooperative and Mutual
Insurance Federationâs (ICMIF) 5-5-5
Development Strategy aims to extend the reach of
microinsurance as a crucial tool for socio-economic
strength to an additional (ie currently uninsured) îve
million homes (20 million persons) in îve emerging
countries in the next îve years. ICMIF is using its
technical development expertise to identify the
needs in those countries, develop appropriate
strategies, and develop relationships with local,
on-the-ground partners to bring speciîc actions for
microinsurance (in particular, healthcare and life
insurance) to reach poor populations which, without
it, would struggle to survive should disaster strike.
⢠Standard Chartered has committed to provide
înancing and technical assistance for microînance
institution (MFI) clients in Asia and Africa to enhance
their capacity to extend loans to more people in its
markets. From 2005 to 2014, Standard Chartered
provided more than US$1.6 billion in lending to 85
MFIs, impacting an estimated 10.4 million people.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 17
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 1
NO
POVERT Y
⢠Aviva is one of the largest microlife insurers on
the Indian sub-continent working with several
microînance companies and a host of co-operative
banks. Due to its vast branch network, Aviva
is able to serve înancially-excluded and rural
customers quickly and at low cost. In 2014 alone,
Aviva covered over 630,000 people through its
microinsurance products and close to 500,000
policies were sold in rural India.
⢠For almost 20 years, Aviva has worked closely with
Aon Limited and other insurance brokers, local
authorities and registered social landlords in the
UK to provide tenants with accessible, affordable
home contents insurance. The cover is paid mainly
with rent, on a weekly basis, with a zero excess
feature and in many cases without the need for a
bank account. Aviva works with 100 local authority
and registered social landlord schemes throughout
the country, an approach which it says helps to
overcome fears or mistrust in the înancial sector.
⢠Banco do Brasil started providing loans for small
îrms and entrepreneurs through a nationwide
microcredit program (known locally by the acronym
MPO), helping more people to open bank accounts,
creating jobs and income, and combating poverty,
as part of the federal Governmentâs plan to end
extreme poverty (âBrasil sem misĂŠriaâ). The
microcredit program is mainly for urban areas
and has originated more than 45,000 loans
totaling around US$100 million. Around half of
entrepreneurs reached are women.
⢠YES BANK has been applying the guiding principle
of Frugal Innovations for Financial Inclusion (FI4FI)
to systematically leverage technology and frugal
business models to offer direct microcredit,
microsaving, microinsurance and remittance
services across various geographical and socio-
economic contexts for the under-banked and
unbanked population in India. For example, YES
BANK launched the YES Kisan Dairy Plus as a
comprehensive suite of înancial products for the
dairy sector through an automatic milk testing
machine installed at the partnering dairy which
can provide immediate information on the quality
and quantity of milk supplied by the small dairy
farmer. The farmer can be paid immediately through
YES Kisan Dairy Plus into his saving account. The
farmer receives a conîrmation of payment through
a mobile text message, and has two options to
either leave the amount in his account or make
withdrawals using YES SAHAJ, the Bankâs mobile
ATM solution.
⢠Scotiabank is working to advance înancial
inclusion and economic development of
communities through technology including mobile
banking, relevant products (including low/no fee
accounts), micro and consumer înancing, small
business lending, and înancial education.
⢠Nyati Sacco Society Limited is a savings and
credit co-operative serving the low income bracket
in Kenya with 90% of its membership comprising
security guards working for G4S (Kenya) and other
companies. It will soon start a savings bank service
(virtual) to enable its members to access more
affordable banking services in addition to cheaper
and more easily available credit.
Photo: Curt Carnemark/World Bank
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 18
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 2
SDG 2
End hunger, achieve food security and improved nutrition
and promote sustainable agriculture
OPPORTUNITIES FOR SHARED VALUE
⢠Collaborate with Governments and development înance institutions to increase înancing for sustainable
agriculture, including people that are often înancially excluded including women, persons with disabilities,
indigenous persons, and racial and ethnic minorities.
⢠Extend insurance protection for smallholder farmers (including parametric cover for which an index is a proxy
for assessment of actual losses), leveraging available technology such as mobile money transfer and satellite
monitoring. Explore collaborations with farm aggregators, impact investors and reinsurers to provide loan-linked
insurance, contract seed grower insurance, dairy livestock insurance and replanting guarantees.
⢠Join the Scaling Up Nutrition Business Network to collaborate with other companies, Governments and
civil society in order to identify new inclusive sustainable business opportunities (e.g. înancing seed and
micronutrient innovations).
⢠Implement responsible business policies in accordance with the Committee for World Food Securityâs
Principles for Responsible Agricultural Investment and the United Nations Global Compactâs Food and
Agriculture Business Principles, such that investments and înancial products do not violate human and land
rights, contribute to food price volatility, or encourage speculative trading in food commodities.
LEADING BY EXAMPLE
⢠Standard Chartered commits to allocate capital
to key sectors in the economy including agriculture,
trade and infrastructure. In 2014, it înanced
US$31 billion through its Commodity Traders and
Agribusiness portfolio. Standard Chartered has a
Position Statement on Agribusiness setting out
the standards it uses to assess the capability of its
clients to manage social and environmental risks;
industry best practices, guidelines and bodies which
it will also use to determine effectives responses
to risks faced by clients; and the circumstances
under which the bank will restrict înancial services
(e.g. corporate and institutional clients which are
involved in the production of soy, cocoa and coffee
beans, sugarcane, cotton or livestock standards and
which fail to adhere to IFC standards).
⢠Rabobank generates, enhances and distributes its
extensive knowledge of the many links in the food
chain through its Food & Agribusiness Research
and Advisory department. It has developed 10 big
Photo: Sebastian Szyd/World Bank
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 19
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 2
ideas which could boost global food availability
and access over the next decade. These ideas are:
adopt big data in US agriculture; close the yield
gap in Central and Eastern Europe; improve Chinaâs
food security; strengthen South-South trade; invest
in local storage; boost production in the Food &
Agribusiness engine room; develop cold chains in
China; grow aquaculture; lift dairy production in
India; and raise sugarcaneâs productivity. These
are described in further detail together with case
studies in the report âUnleashing the Potential
of Global Food & Agribusinessâ for its business
customers.
⢠The Africa Risk Capacity Insurance Company
Ltd (ARC Ltd) is a sovereign-level mutual insurance
company established by the Africa Risk Capacity,
a specialized agency of the African Union, to
provide timely and reliable funds to participating
Governments to respond to food insecure
populations. It is an index-based weather insurance
mechanism through which satellite based rainfall
datasets quantify the impact of a severe drought
event, triggering payments to participating affected
countries within 2-4 weeks of harvest. Africa
RiskView is a software package developed by the
United Nations World Food Programme and is the
technical engine of the Africa Risk Capacity. ARC
Ltd was capitalized through 20-year interest-free
loans totaling US$95 million from the UK and
German development agencies. There are currently
26 country Government members of ARC Ltd who
are each required to have pre-approved contingency
plans in place which describe how insurance pay-
outs will be used should the coverage be triggered.
In its îrst policy year US$26 million was paid out to
three participating countries in western Africa which
suffered low rainfall. Experts are working to expand
the early-warning tool to address other hazards
including îoods and cyclones.
⢠Swiss Re has been committed to the Grow Africa
Partnership since 2012, an initiative launched
by a number of organizations to promote public-
private collaboration and investment in African
agriculture. Swiss Reâs commitment to the Grow
Africa Partnership includes three elements: 1) Give
farmers in Sub-Saharan Africa access to tools such
as weather and yield index insurance products; 2)
Invest about US$2 million per year in resources to
support the development of sustainable agricultural
risk management markets; 3) Provide agricultural
insurance for up to 1.4 million smallholder farmers.
To create effective insurance solutions, it works
closely with several partners such as Oxfam
America, the World Food Programme, USAID and
the Global Index Insurance Facility. By the end of
2014, it helped to establish a total of 20 programs
that brought weather insurance to two million
smallholder farmers in 12 Sub-Saharan countries,
reaching and exceeding the target ahead of
schedule. Swiss Re microinsurance products for
small-scale farmers include:
â In Kenya, Rwanda and Tanzania, Swiss Re
engages in the the âKilimo Salamaâ (safe farming)
project, which since its launch in 2009 has grown
to be the largest weather index insurance program
in Africa providing insurance protection to 185,000
smallholder farmers (as at December 2013). It
offers înancial protection against drought, excess
rain, crop yield volatility and diseases, and it is
being used for maize, beans, wheat, sorghum,
coffee, potatoes and livestock.
â In India, Swiss Re helps bring insurance to remote
farmers by supporting local insurers through its
expertise and various reinsurance products.
â Swiss Re has also started providing new data on
agriculture hotspots in Mozambique and Kenya,
which include overviews on the economics,
production and risks to agriculture.
â In 2014 Swiss Re helped establish the îrst
weather index insurance program in Nigeria,
making automatic payments to smallholder
farmers when satellite data indicates adverse
weather patterns.
⢠Sompo Japan Nipponkoa Holdings, Inc. offers
agricultural insurance products in South East Asia
to reduce climate related risks to agriculture. It
launched weather index insurance in northeast
Thailand in 2010 to alleviate losses borne by rice
farmers when their crops are damaged by drought,
and the sales area expands every year. In 2014, it
launched Typhoon Guard Insurance in Mindanao
Island, the Philippines, which aims to alleviate the
losses borne by agricultural producers when they
are affected by typhoons. It is also developing
new insurance products, including one which will
alleviate agricultural losses in Myanmar due to
drought in the central dry zone, and similar products
for Indonesia.
⢠MasterCard and the World Food Programme
have rolled out an innovative e-voucher program
in Lebanon to deliver food assistance to Syrian
refugees. In April alone, nearly US$20 million was
injected into local markets. Today, about 715,000
refugees buy food at nearly 250 merchants who saw
a 6-12% increase in revenues. The program intends
to reach 1.1 million refugees in 2014. A similar
program in Jordan will distribute US$250 million in
food assistance and reach 710,000 Syrian refugees
this year.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 20
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 3
SDG 3
Ensure healthy lives and promote well-being
for all at all ages
OPPORTUNITIES FOR SHARED VALUE
⢠Provide and/or raise capital for investment in healthcare institutions.
⢠Share anonymized morbidity and mortality data with Governments to inform public health policies without
jeopardizing data protection and privacy, leading to improved public health and thus lower underwriting risk.
⢠Scale health, disability, critical illness, life and funeral insurance policies for people on low incomes to lessen
the înancial impact of morbidity and mortality risks. Consider providing policies which use mobile money
services to efîciently transfer funds to cover the ancillary costs associated with accessing Government-provided
health care (such as travel, medicine and child care).
⢠Collaborate with mobile phone providers and community organizations to support health promotion activities,
thereby reducing loan payment defaults and insurance claims arising from ill health.
⢠Support healthy employees, families, communities and nations by ensuring healthy and safe work
environments.
LEADING BY EXAMPLE
⢠The Standard Chartered âLiving with HIVâ program
aims to reduce the spread of HIV by encouraging
behavior change through education. Employee
volunteers (âHIV Championsâ) raise awareness of
HIV/AIDS within the bank and community. Their
work also includes the development of tailored
workplace HIV education programs with external
organizations, and the training of volunteers inside
these organizations to act as peer educators,
all free of charge. Standard Chartered has a
complementary online initiative called AntiHIVirus
which makes HIV/AIDS facts available to young
people through engaging multimedia (-including
animated âedutainmentâ modules and blogs in 10
languages) helping them make safe lifestyle choices
and reducing stigma. These group-wide initiatives
sit alongside the bankâs more local efforts to tackle
HIV/AIDS including use of ATM machines in a
number of markets (including Thailand, Malaysia
and Dubai) to communicate HIV/AIDS information.
⢠Avivaâs health insurance continues to extend
coverage and innovate to improve customer
outcomes. For example, it partners with cancer
care charities to reduce payout timescales and
improve support. Aviva publishes health and
lifestyle research and guidance via its website and
content marketing directed to its customers and
communities who could beneît (e.g. Aviva Health
Library provides the latest health and wellbeing
news and views, from day to day lifestyle tips to
feature health articles). Aviva also shares data it
has on the incidence of speciîc health issues (e.g.
prostate cancer) to inform and support NGO and
public health campaigns.
⢠Banca Popolare di Sondrio offers its customers
the option of opening a Solidarity Account. In
addition to interest paid to the account holder, the
bank pays 0.5% of the average annual balance to
the account holderâs choice of one of îve charitable
health funds including UNICEF
.
Photo: Sebastian Szyd/World Bank
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 21
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 4
SDG 4
Ensure inclusive and equitable quality education and promote
lifelong learning opportunities for all
OPPORTUNITIES FOR SHARED VALUE
⢠Collaborate with development înance institutions and Governments to raise and/or invest in innovative
înancing (e.g. education bonds) for education projects.
⢠Expand access and use of personal savings and loan products to help families plan for and înance education
costs.
⢠Expand health, life and livelihood insurance coverage in developing markets to reduce the risk that children
are absent from school due to untreated medical conditions, or that they are withdrawn from school to care for
a sick relative or to undertake livelihood activities to supplement household income.
⢠Provide small and medium sized enterprises with accounting, customer service and business management
training to progress their lifelong learning, thereby building loyalty and success of SME customers and helping
to identify and attract new ones.
⢠Increase collaboration across the industry and explore best practices for advancing înancial literacy at scale
both in schools and for men and women, including marginalized groups (such as persons with disabilities,
indigenous persons, and racial and ethnic minorities). Explore collaboration with other stakeholders including
ministries of education and civil society.
⢠Mentor disadvantaged and marginalized youth to improve their learning outcomes and provide the industry
with access to a diverse talent pipeline, which can provide insights essential for advancing înancial inclusion.
LEADING BY EXAMPLE
⢠The Inter-American Development Bank (rated issued by a Multilateral Development Bank where
Aaa/AAA) launched a US$500 million Education, proceeds are placed in a segregated sub-account
Youth and Employment Bond for Latin America and to support projects strictly related to education
the Caribbean to înance early childhood care and and youth employment. The order book received a
education, formal primary and secondary education, signiîcant level of oversubscription and included
as well as labor market placement and vocational a high percentage of investors with a particular
training. This bond is the îrst global benchmark interest in Socially Responsible Investment Bonds.
UN Photo Library
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 22
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 4
⢠In 2008 Credit Suisse launched the îrst phase
of the Global Education Initiative focusing on
Millennium Development Goal 2 (access to and
quality of education), targeting school-aged children
in selected countries. Between 2008 and 2014,
the Initiative developed strong partnerships, with
programs reaching over 100,000 students in over
400 schools in 38 countries. More than 15,000
teachers were trained in subjects ranging from
science, technology, engineering, mathematics and
information technology to child-friendly teaching
methodologies. Based on this success, in 2014
Credit Suisse launched a Signature Program within
the Initiative focusing on Financial Education for
Girls. It aims to reach 100,000 girls and young
women with interventions to prepare them for the
challenges in life. The Global Citizens Program,
an integral part of the Global Education Initiative,
increases the impact of funding by enabling suitably
qualiîed employees to share their expertise with
local partners.
⢠YES BANK is partnering with the Bombay Stock
Exchange (BSE) and the Institute of Chartered
Accountants of India (ICAI) to improve înancial
literacy in India by conducting înancial literacy
camps throughout its pan-India branches, leveraging
the content leadership and association of investor
initiatives of the BSE and ICAI. The three partners
will also conduct joint knowledge events and
provide training and online courses to improve
înancial planning and savings among citizens, while
creating engaging content for including înancial
literacy courses in higher education.
⢠Barclays, in collaboration with Action for Children,
developed the Barclays Money Toolkit to help adults
and children learn about înancial planning and saving.
The toolkit provides guidance on: identifying ways of
improving participantsâ înancial situations; learning
about înancial products and language in order to
make educated choices; and building on participantsâ
existing skills and applying them to înances.
⢠Standard Chartered has established înancial
education programs for youth and for entrepreneurs.
Commitments include providing training to 5,000
micro and small businesses, with at least 20 per
cent being women-owned or led, between 2013
and 2018. In 2013 and 2014, 1,400 micro and small
businesses, including approximately 36% women,
were trained.
⢠Citi is building partnerships with the communities
in which it operates to increase înancial literacy
and access to capital. For example, in Colombia
the Citi Foundation has supported FundaciĂłn
Capitalâs LIFT Initiative to develop an innovative
tablet-based înancial education system. This
provides low-income individuals and their families
with personalized tools that help them to build their
assets, increase their înancial capabilities, and
support them as they transition out of poverty. The
program has helped 1,000 low-income women who
receive Government assistance through conditional
cash transfers to become active banking clients with
formal savings accounts.
⢠HSBCâs global înancial education program, JA
More than Money, is targeted at 7-11 year olds,
helping them to learn about earning, spending,
saving, investing and donating money, as well as
educating them about enterprise and potential
careers. The program is run in partnership with
JA Worldwide, the largest organization dedicated
to înancial literacy, entrepreneurship and work
readiness. More than 6,000 HSBC employees have
volunteered for the program since 2008, beneîtting
more than 379,000 students in 32 countries.
⢠Caixa Geral de DepĂłsitos has a înancial
literacy program âSaldo Positivoâ comprising
two components: âSaldo Positivo Particularesâ
which helps households better manage their
money; and âSaldo Positivo Empresaâsâ which
helps entrepreneurs and managers with înancial
management. Given the difîcult economic context
in Portugal and the increase in unemployment,
more households are looking for information on
how to better manage their family budgets. Caixa
Geral de DepĂłsitos responded by setting up www.
saldopositivo.cgd.pt which provides households with
information on budget management, and managers
and entrepreneurs information on launching,
planning and managing their companies.
⢠BancoEstado in Chile offers bank accounts to
children and youth and The Council for Economic
Education provides economics education resources
to teachers & students. These teach children
about social and înancial concepts like saving and
spending which will help to develop more înancially
responsible societies.
⢠DGB Financial Group runs a înancial museum
in South Korea to provide a venue for sharing the
regional înancial history and teaching înancial
literacy and economic knowledge to students in
the region. It has developed mobile applications
for senior citizens, non-Koreans and persons with
disabilities to meet the different needs of its
customers.
⢠Piraeus Bank supports the Knowledge Society by
organizing entrepreneurship programs in îelds such
as agricultural development. It collaborates with
Greek tertiary education institutions/universities to
provide student internships, supporting education
agencies, and providing targeted educational
scholarships for low-income students. Piraeus Bank
also sponsors a savings program for 76 students in
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 23
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 4
the outlying islands of Arkoi and Leipsoi, with the
aim of supporting the students in the long-term as
well as promoting money-saving.
⢠In 2014 The Western Union Company announced
the launch of âApna Sapnaâ, a înancial literacy
program created in eight languages for migrant
workers in the United Arab Emirates (âUAEâ) to help
them develop the awareness and skills to manage
their înances and plan for the future. âApna Sapnaâ,
which in Hindi means âOur Dreamâ, is endorsed
by the UAE Labor Ministry and aims to address the
challenges of migrant workers who are often unsure
about how to achieve their long-term înancial goals.
⢠MasterCard has partnered with the Confederation
for All India Traders to promote the digitization of
payments among Indian traders, through knowledge
sharing and training sessions across the country, in
line with the Governmentâs âDigital Indiaâ vision.
⢠Daiwa provides a free of charge Daiwa Internet
TV service for the general public in Japan. This
disseminates the latest information and in depth
market and economic analysis by Daiwaâs analysts,
strategists and economists, whilst also often
allowing viewers to directly ask questions. This
means information previously available exclusively
to institutional investors is now freely accessible by
individual investors through personal computers and
smart phones.
⢠The HSBC Education Program helps young
people to access education, develop life skills and
entrepreneurship, and build their international
and cultural understanding. HSBCâs work with
Junior Achievement/Young Enterprise in France,
Malta, Japan and the UK helps to inspire young
people and give them a taste for working in an
entrepreneurial environment, helping them build
their conîdence and become literate in înancial
and business matters. HSBCâs work with the
British Council China Program promotes cultural
awareness and understanding in UK schools. An
estimated 10,000 young people a year are taught
Mandarin Chinese and Chinese culture through
the program. HSBC provides more than 6,000
scholarships globally every year to students with
strong academic potential from disadvantaged areas
or families, enabling them to attend a school or
university supported by the program. One example
is the Chevening Scholarships, the UK Governmentâs
global scholarship program, managed by the Foreign
and Commonwealth Ofîce. The program makes
awards to outstanding scholars from around the
world to study postgraduate courses at universities
in the UK. HSBC supports 30 scholars each year
from key countries, supporting the development of
talented individuals who may be future leaders.
Photo: Alex Baluyut/World Bank
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 24
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 5
SDG 5
Achieve gender equality and empower all women and girls
OPPORTUNITIES FOR SHARED VALUE
⢠View the womenâs market as a distinct value proposition supported by the Board and Executive Management,
informed by market research and delivered with a tailored brand strategy driving progress towards clear, gender
disaggregated key performance indicators.
⢠Design new savings, credit and insurance products and distribution models which enable women in high-
growth markets to establish and grow businesses in both urban and rural environments.
⢠Adapt credit processes and lending methods to expand lending to women-led SMEs, for example offering
collateral free loans or accepting household goods or jewelry as collateral (when legislation or custom preclude
women from owning land or property title).
⢠Expand insurance for maternal health, where applicable including costs incurred in accessing public
health services.
⢠Increase the share of women on company Boards and in senior roles, and invest in policies and programs
which support women in the workforce and encourage organizations in the value chain to do the same.
⢠Integrate the Womenâs Empowerment Principles into core business operations and value chain to ensure a
comprehensive approach to achieving gender equality, and encourage peers to do likewise.
LEADING BY EXAMPLE
⢠Citi Microînance, in partnership with the Overseas
Private Investment Corporation (OPIC), has provided
more than US$365 million to fund 40 microînance
institutions in 22 countries since 2006. This
investment has resulted in loans to more than
975,000 small business and individual borrowers,
nine in 10 of them women.
⢠Womenâs World Banking Capital Partners is a
women-focused and women-managed microînance
equity fund. The 27 investors represent a mix of
development înance institutions, private pension
funds, microînance investment vehicles and
individual investors. It has more than US$50
million under management which is invested in
the provision of înancial products and services to
unbanked and under-banked women.
⢠Several înancial institutions are participating in
a Leadership and Diversity for Innovation Program
with Womenâs World Banking, a not-for-proît
organization which increases the capacity of women
Photo: Shehzad Noorani/World Bank
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 25
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 5
leaders of microînance institutions to successfully
serve low-income women, together with Wharton
business school and an executive coaching
consultancy. Participation provides înancial
institutions with access to expertise in înancial
inclusion, research, product innovation, business
and leadership insights.
⢠MasterCard has launched Girls4Tech, an
educational outreach program that targets teenage
girls to encourage STEM (science technology
engineering math) careers. This program is currently
live in India, Dubai, Frankfurt, and London.
⢠YES BANK runs âYES LEAPâ (Livelihood
Enhancement Action Program), a Banking Linkage
program through which YES BANK partners
with self-help promoting institutions to provide
comprehensive înancial services to women-centric
self-help groups, thus empowering women in rural
India and strengthening their înancial security.
In 2014-15, YES LEAP reached over 1.2 million
predominantly rural households in 250 districts.
YES BANK is enhancing the program by introducing
mobile tablets that can, among other roles, track
payments and receipts and play health and
hygiene messages.
⢠Pax World Management LLC has displayed
a strong focus on womenâs empowerment.
Women make up half of Pax Worldâs mutual funds
managers, half of the vice presidents who sit on
the îrmâs senior management committee, half of
the companyâs sales representatives and half of
the companyâs sustainability research analysts. In
addition, Pax has long integrated diversity analysis
and other gender criteria into the company research
it conducts for its mutual funds, including the Global
Womenâs Equality Fund, the îrst mutual fund in
America focused on investing in companies around
the world that are leaders in advancing gender
equality and womenâs empowerment. Guided by
the Womenâs Empowerment Principles, all of Paxâs
funds favor investments in companies with diverse
boards and management teams while seeking to
avoid companies that fail to provide a safe work
environment for women.
⢠The Pax Ellevate Global Womenâs Index Fund seeks
returns that closely correspond to or exceed the
performance of the Pax Global Womenâs Leadership
Index. It is the îrst broadly diversiîed mutual fund that
invests in the highest-rated companies in the world
in advancing womenâs leadership. The Pax Global
Womenâs Leadership Index is a customized index of
the highest-rated companies in the world in advancing
women, as rated by Pax World Gender Analytics, and
that meet key environmental, social and governance
(ESG) standards, as rated by MSCI ESG Research.
⢠In 2014 Swedfund, the Swedish Development
Finance Institution, initiated Women4Growth
which is a talent program supporting women to
reach management levels. Together with Swedish
Wiminvest and two companies in Kenya â where
Swedfund is involved through direct or indirect
ownership â women from each company were
chosen to participate in workshops and seminars.
The two investee companies, a cafĂŠ chain and a
retailer, have many female customers and female
employees at the lower service levels, and both
companies understand the business case for more
equal career opportunities. The program identiîes
women who wish to climb the corporate ladder but
are held back by structures, attitudes and their own
self-image. Swedfundâs ambition is to apply the
concept to other sectors and countries.
⢠BLC, a leading Lebanese bank, is committed to
being Lebanonâs market leader in creating services
for women. To put this commitment into practice,
in 2014 BLC hosted a series of trainings for other
înancial institutions in the Middle East, North Africa
and Europe on best practices in: serving womenâs
needs in the banking sector, improving womenâs
market strategies, and implementing approaches for
women owned SMEs. This training series is part of
an ongoing capacity-building partnership with the
Global Banking Alliance for Women.
⢠CRISIL, a global analytics company majority owned
by Standard & Poorâs, a business unit of McGraw
Hill Financial, runs an Indian national înancial
awareness initiative: âPragati â Progress through
Financial Awarenessâ. The Pragati workshops offer
training in basic savings and investment concepts,
to an audience primarily comprising rural women
and female students across some of Indiaâs most
înancially excluded states.
⢠Standard Chartered has made diversity and
inclusion commitments. These include reaching
600,000 girls through âGoalâ by the end of 2018. Goal
is a global project designed and funded by Standard
Chartered; empowering and motivating girls aged
12-18 who live in low-income communities by
providing them with critical life skills. From 2006 to
2014, Goal empowered nearly 146,000 girls across
24 markets.
⢠Goldman Sachs Group founded the â10,000
Womenâ program in 2008 which aims to provide
educational opportunities in business and
management to women, mostly from developing
countries, through the creation of partnerships
with womenâs development organizations. Courses
include marketing, accounting and strategic
planning. The company has set up partnerships to
help women in 14 countries. An independent report
of the program in 2014 found that within 18 months
of graduating 69% of participants had increased
their revenues, 58% had been able to create new
jobs at their businesses, and 90% of participants
were involved in mentoring other women.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 26
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 6
SDG 6
Ensure availability and sustainable management of water
and sanitation for all
Photo: Edwin Huffman/World Bank
OPPORTUNITIES FOR SHARED VALUE
⢠Invest in, and raise capital for, water and sanitation infrastructure, both through public private partnerships and
via off-grid enterprise solutions.
⢠Apply modeling expertise to help develop înancially sustainable models for water projects, using fees and
tariff structures which reîect future costs and manage usage while subsidizing connections and consumption
for the poor.
⢠Consider water risks as part of investment evaluation criteria and stimulate the adoption of priced-in
externalities in înancial statements to show environmental and social impacts and societal value creation.
⢠Consider endorsing the CEO Water Mandate which mobilizes business leaders to advance water stewardship,
sanitation, and the SDGs â in partnership with the United Nations, Governments, peers, civil society and others.
LEADING BY EXAMPLE
⢠Zurich Insurance Group recently announced
a new collaboration with the Global Resilience
Partnership to create a three-phased grant
competition called the âWater Windowâ which will
work as an incubator to help develop water related
innovations in the Sahel, the Horn of Africa and
Asia. The Global Resilience Partnership is convened
by the Rockefeller Foundation, USAID and Sida
to help millions of people in Africa and Asia build
more resilient futures. The Water Window builds on
the îrst round of the Global Resilience Challenge
which focused on broader resilience solutions
attracting almost 500 innovative ideas developed
by cross-sectoral teams from 55 countries. The
Water Window will seek to support new solutions
or to scale up those that are already working that
fall within one or more of the following focus
areas: technology, înancing including risk transfer
mechanisms; measurement & diagnostics; policy;
and learning and innovation. Zurich will look
speciîcally for innovations aimed at enhancing îood
resilience in line with its global îood resilience
program. Zurich is the îrst private sector member
of the Water Window and is now calling for other
companies with water-related programs to join this
collaboration by contributing their funds, skills
and expertise.
⢠McGraw Hill Financialâs company Standard &
Poors Ratings Services is assisting the work being
undertaken by the UN Environment Programâs Natural
Capital Declaration and the German Government that
analyzes water risk in îxed income analysis.
⢠Standard Chartered has a position statement on
water which encourages clients with high water
consumption to reduce their own and their suppliersâ
water usage and to avoid releasing efîuent.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 27
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 7
SDG 7
Ensure access to affordable, reliable, sustainable
and modern energy for all
Photo: Dominic Sansoni/World Bank
OPPORTUNITIES FOR SHARED VALUE
⢠Facilitate the raising of the US$1 trillion that the International Energy Agency estimates is needed each year
to 2050 to transition to a low-carbon economy by developing a broad portfolio of investment options including
carbon markets.
⢠Apply înancial expertise to energy pricing models which meet the three objectives of înancial viability,
energy efîciency and universal access, including special consideration of the energy needs of low-income
communities.
⢠Underwrite renewable energy developments such as wind farms and solar power arrays to accelerate the
transition to an inclusive low-carbon economy.
⢠Build on the responsible investment work of the Caring for Climate partners â the UN Global Compact, UNEP
and the UNFCCC - to leverage sphere of inîuence to encourage other companies, people and Governments to
disclose their environmental impacts, reduce their environmental footprint and decouple growth from energy
use (e.g. by accurately pricing environmental risk into asset allocation and underwriting decisions).
LEADING BY EXAMPLE
⢠Citi has pledged to source US$2.5 billion in
incremental capital towards Power Africa, a multi-
stakeholder partnership that aims to double the
number of people who have access to electricity
throughout sub-Saharan Africa, thereby adding
more than 30,000 megawatts of clean and efîcient
electricity generation to the grid, increasing access
to 60 million new homes and businesses.
⢠Globally Rabobank is among the top 10 providers
of înance for renewable energy, particularly
înancing large-scale offshore wind farms (currently
in the Netherlands, Germany, the United Kingdom,
Ireland, Scandinavia, France, Belgium, the United
States, India, Brazil and Chile). The bank works
closely with local initiators, construction companies
and înancial partners such as pension funds and
insurers, regularly leading consortiums in which
various banks participate. Rabobank structures and
builds înancial solutions that enable the parties
involved to înance projects and to subsequently
sell on the projects to institutional investors, such
as pension funds. These institutional investors seek
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 28
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 7
SDG INDUSTRY MATRIX â
SDG 6
acceptable returns with limited risks and often want
to participate when the projects are operational.
⢠Piraeus Bank has funded over 850 Megawatts
(MW) of renewable energy systems, holding 18%
of the total market in Greece. This includes over
500 MW from 7,600 photovoltaic systems, over
300 MW from wind parks, as well as investments
in small hydro-electric parks and biomass
projects. In addition, in 2014 following changes
in the legislative framework regarding electricity
production from renewable energy systems, Piraeus
Bank and the Green Banking unit reassessed the
investment plans of individuals and particularly
farmers with photovoltaic stations, at their request.
This resulted in a series of measures to protect
farmer loan-holders who were mostly affected by
legislative changes, thus supporting the investment
market in general as well as contributing to the
enhancement of the income of the farmers.
⢠Aviva is one of the largest investors in residential
solar in the UK. It has invested in portfolios of
24,000 domestic solar installations across England
and Wales with 75MW generating capacity. This
approach provides free renewable electricity to
the homeowner. Aviva is also working with the
UK Green Investment Bank to help fund an energy-
efîcient National Health Service.
⢠KLP, Norwayâs largest mutual life insurer, has an
impact investment strategy through which it has set
up an investment company together with Nordfund,
the Norwegian development înance institution. This
investment company is investing in new capacity
for renewable energy production in developing
countries, several of which have reached production
stage. Also, KLP has divested from companies
deriving the majority of their revenues from coal
based activities. KLP is planning to use the SDGs
as a framework in the further development of its
impact investment.
⢠Grupo Financiero Banamex has partnered
with the Inter-American Development Bank to
design an innovative credit to help small and
medium sized enterprises replace or install energy-
efîcient equipment, contributing to a reduction
in their carbon footprint and an increase in their
competitiveness nationwide. The product has a
strong capacity building component sponsored by
the Inter-American Development Bank.
â˘
Č
ekerbank developed EKOkredi in 2009; a loan
înancing energy efîciency investments and
expenditures in Turkey.
Č
ekerbank is also raising
awareness of energy efîciency to help household
budgets and itâs branch marketing staff are certiîed
building insulation consultants. EKOkredi has
provided over TL 600 million (US$200 million) in
înancing support. It has introduced over 60,000
retail customers and 7,000 SMEs, craftsmen and
farmers to energy saving. Four million tons of CO2
emissions have been prevented, loans have funded
the insulation of more than 95 thousand houses, 177
million cubic-meters of natural gas has been saved
and 18.7 billion kilowatt-hour energy has
been saved.
⢠Swiss Re recently intensiîed its renewable
energy research to help its clients and the global
community to develop and establish secure energy
supplies for the future. Together with the World
Energy Council, Swiss Re launched the three-year
research project âFinancing resilient energy
infrastructureâ to identify and characterize the
nature, frequency and severity of emerging risks in
renewable energy installations. Its results will help
to make energy infrastructure more reliable and thus
encourage investment in the sector.
⢠As a founding member, Swiss Re launched the
RE100 initiative with several partner companies,
setting itself the goal of obtaining 100% of its
energy from renewable sources. By increasing
demand, this initiative will make it more viable for
power companies to build renewable energy plants.
Last year, it was involved in two offshore windfarms
and covered the whole construction period of both
wind farms. This is particularly challenging as there
is no historical information regarding the losses in
this industry and highlights Swiss Reâs commitment
to sustainable green energy.
⢠Zurich has pledged to invest up to US$2 billion
into green bonds and has already invested US$750
million. Zurich is looking at renewable energy as
the main focus for green bond proceeds. It has
also invested in green bonds focused on water,
as well as green bonds that fall into a category of
protecting, restoring and promoting sustainable
use of ecosystems, managing forests, combating
desertiîcation and reversing land degradation.
⢠In 2014 Swedfund increased its înancial
commitment to Interact Climate Change Facility
(ICCF) by investing a further
âŹ
5 million in climate
change projects in growth markets. ICCF înances
projects in renewable energy and energy
efîciency in existing power generation plants. By
demonstrating the economic viability of projects,
ICCF also aims to act as a catalyst and attract
additional înancing for the development of
sustainable energy in emerging markets. Examples
of projects înanced by ICCF include solar energy in
India, energy efîciency in existing power generation
in Ivory Coast and wind power in India and Kenya.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 29
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 8
SDG 8
Promote sustained, inclusive and sustainable economic growth,
full and productive employment and decent work for all
Photo: Edwin Huffman/World Bank
OPPORTUNITIES FOR SHARED VALUE
⢠Strengthen insurance and investment guarantees for political and non-commercial risks to increase foreign
direct investment in emerging and low income economies.
⢠Work with key stakeholders to develop practical solutions which will reverse the trend of international banks
withdrawing correspondent banking services due to the legal and regulatory frameworks.
⢠Expand microînance (savings, credit and insurance) for small business owners.
⢠Expand înance for âthe missing middleâ i.e. small enterprises graduating from microînance which are not
yet able to access credit from the formal banking system.
⢠Leverage new business models and technologies to raise diversiîed sources of capital including impact
investment, crowd funding (>US$1 billion raised), peer-to-peer lending and catastrophe bonds
(>US$20 billion raised).
⢠Provide targeted internships for young people from disadvantaged backgrounds in order to promote social
mobility whilst also enhancing company performance through increased workforce diversity.
⢠Create opportunities for lower paid workers to develop their skills and gain access to improved professional
opportunities, both within and outside of the înancial services sector.
LEADING BY EXAMPLE
⢠In 2014 UBS launched âUBS and Societyâ to harness
the powerful combination of its global capabilities
and its activities in sustainable investing and
philanthropy, its environmental and human rights
policies, and its community interaction. UBS sees
an ever stronger interest among its clients in
societal issues, together with a growing desire to
use their wealth to help address these issues. UBS
guides its clients who want to use their resources
to make a positive impact with the individuals,
organizations and communities that need the most
without sacriîcing returns. One important innovative
strategy is impact investing which focuses on
investment choices which generate a positive
measurable social and environmental impact whilst
achieving înancial returns in parallel. One example
in which UBS is growing its engagement is the
Loans for Growth fund which provides debt capital
to specialized SMEs Financing Institutions in frontier
& emerging markets thereby fostering economic
development, creating jobs and contributing to
poverty alleviation.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 30
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 8
⢠Credit Suisse has been committed to microînance
since 2002, managing over US$2 billion of
assets that are used to fund MFIs. By generating
both a social and înancial return for investors,
microînance is a typical example of an impact
investment. Since co-founding responsAbility
Investments AG and starting to offer its îagship
microînance fund to clients, Credit Suisse, in
close collaboration with partners, has steadily
expanded its services for the people at the base of
the pyramid. It now offers additional impact funds
(e.g. a fair trade fund providing working capital to
agricultural cooperatives that support low-income
farmers in developing countries), Microînance
Notes that provide capital to MFIs and protect them
against currency îuctuations, and Microînance
IPOs that provide MFIs access to capital markets.
These commercial activities are conducted in
close collaboration with the Microînance Capacity
Building Initiative (MCBI), established in 2008. The
current thematic focus of the MCBI is on developing
înancial products and services in areas such as
agriculture and small-holder înance, housing and
education înance, as well as extending înancial
services to women and people with disabilities.
⢠Swedfund, the Swedish Development Finance
Institution, contributes to poverty eradication
through sustainable investments standing on
three pillars â Impact on Society, Sustainability
and Financial Viability. Swedfund înances and
establishes sustainable SMEs through partnerships
with private companies and investors who share its
values. The companies it înances have a positive
impact on society in the countries where they
operate by providing decent work, tax payments
as well as knowledge and technology transfer. At
the end of 2014, Swedfundâs portfolio companies
supported over 100,000 jobs. Fulîlment of the
International Labor Organizationâs core conventions
and basic terms and conditions of employment is a
requirement in all portfolio companies within three
years of the start of înancing.
â˘
Č
ekerbank continues to develop its founding
community banking mission, seeking to address the
challenge of approximately 15 million unbanked
people in Turkey (35% of the population). Since
2006,
Č
ekerbank has been continuously working
on a microînance project mainly to offer credit to
individuals who have just established their own
business and do not have sufîcient funds, or to
small business owners that have not yet become
accustomed to banking services. Within this project,
it has introduced over 26,000 craftsmen and farmers
to banking services, 42% of which are females.
Č
ekerbank is extending its microînance project to
reach more unbanked people.
⢠Piraeus Bank, in its capacity as a Regional
Development Fund, manages âŹ40 million of JESSICA
funds for the înancing of urban development
projects in the regions of Central Macedonia and
Thessaly. Moreover, Piraeus Bank co-înances the
projects with âŹ16.8 million of its own resources. The
projects being evaluated include the power upgrade
of road lighting systems, a solid waste management
plant, and electric and thermal power generation
from biogas. In addition, the Piraeus Bank Group
created the ETVA Fund, a closed-end mutual fund
investing in equity capital of commercially viable
Circular Economy projects. The ETVA Fund mainly
invests in green energy, agriculture and livestock,
integrated waste management and eco industrial
business parks. Over the îrst îve years the Fund
will invest up to ⏠50 million in projects with a total
estimated budget of ⏠500 million.
⢠The McGraw Hill Financial Global Institute
leverages essential intelligence from the worldâs
leading data and analytics company to guide and
inform public policy debates. Through its expansive
research, the Institute equips global leaders with
insights to promote sustainable economic growth.
The McGraw Hill Financial Global Institute aims to
enrich public policy debates through market-driven
insights in four core areas: Economy & Growth,
Infrastructure & Capital Markets, Energy &
Sustainability, and Demographics & Workforce.
⢠Native American Resource Partners (NARP)
provides Indigenous Nations with access to the
capital, expertise, and initial capacity necessary
to build the economy required to satisfy the socio-
economic needs of their community. Through an
equal equity business co-partnership structure,
Indigenous Nations take an active role (as opposed
to the traditional passive role) in the management,
development, and optimization of their lands,
resources, and rights. The value created through
the NARP business model is shared equally by the
partners and provides opportunity for the Nation
to create jobs, improve environmental protection
and enhancement, and attain a high degree of
transparency regarding governance issues. NARP
does not charge a fee and there is no recourse to
the Nation should the enterprise fail. Ultimately
through the NARP partnership, Indigenous
Communities have the option to purchase and
wholly-own the partnership-generated enterprise
and create a sustainable economic endowment
that will serve future generations of the Nationâs
membership. NARP also offers a proven înancial
plan to the partnering Nation.
⢠Citi, Visa Inc, Bill & Melinda Gates Foundation,
Ford Foundation, Omidyar Network and USAID
co-founded the Better Than Cash Alliance, which
is a coalition of public, private and NGO partners
working to accelerate the transition to e-payment
systems globally to empower people and grow
emerging economies.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 31
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 9
SDG 9
Build resilient infrastructure, promote inclusive and sustainable
industrialization and foster innovation
Photo: Yosef Hadar/ World Bank
OPPORTUNITIES FOR SHARED VALUE
⢠Increase long-term înance for public-private partnerships in transportation, renewable energy and
communications infrastructure to contribute to the development of resilient cities and trade.
⢠Ensure infrastructure investments within sphere of inîuence are environmentally sensitive and respond to
the needs of low-income users, women and other marginalized groups (including persons with disabilities,
indigenous persons, racial and ethnic minorities and older persons).
LEADING BY EXAMPLE
⢠Swedfund, the Swedish development înance
institution, has entered into a unique cooperation
with H&M to create a domestic textile industry in
Ethiopia which is both sustainable and responsible.
It aims to create jobs with good working conditions
that lift people out of poverty, especially women.
Swedfund will provide local market expertise
and expansion investments in suppliers to H&M,
whilst H&M will contribute its textile market and
sustainability expertise. The cooperation will
also involve both parties setting standards for
sustainable production and following up indicators
such as water use and wages. By investing in
production, the added value from the textile industry
will to a larger extent remain in the country.
⢠Munich Re, in partnership with other insurance
members of the UNEP FI Principles for Sustainable
Insurance Initiative, the International Finance
Corporation of the World Bank Group, and
academics, is conducting a global survey to
understand whether and how ESG risks are
integrated into surety bond underwriting for
infrastructure projects. The overall aim is to develop
internationally-recognized guiding principles for
surety bond underwriters when assessing ESG
risks associated with infrastructure projects,
such as environmental pollution, natural resource
degradation, forced resettlement, poor working
conditions, and corruption, as well as exposure to
climate and natural disaster risks. The
project could set the foundation for developing ESG
guiding principles for other lines of
insurance business.
⢠Aviva is targeting a £500 million annual investment
in low-carbon infrastructure for the next îve years.
It will also target âcarbon returnsâ alongside înancial
returns on its investment and it is setting an
associated carbon savings target for this investment
of 100,000 tonnes of CO2 annually.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 32
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 10
SDG 10
Reduce inequality within and among countries
Photo: Tran Thi Hoa/World Bank
OPPORTUNITIES FOR SHARED VALUE
⢠Advise High Net Worth clients, through banksâ family ofîces, on investments and strategic philanthropy to
advance sustainable development.
⢠Leverage new technologies such as mobile money payment services to create more efîcient and effective
operating and distribution models for new markets which extend înancial inclusion.
⢠Expand use of new technologies such as big data and cloud computing to gain new insights which enhance
risk and opportunity analyses.
⢠Pay staff a living wage and encourage other companies within sphere of inîuence to also pay living wages.
LEADING BY EXAMPLE
⢠The UBS Optimus Foundation has a unique
relationship with UBS, seeking to use the bankâs
access to the worldâs wealthiest individuals to
unlock and optimize înancial support for the
needs of the most vulnerable children, helping the
bankâs clients achieve the highest social return
on their philanthropic investments. (All donations
go directly to beneîciaries, with UBS covering all
administrative costs of the projects.) Over the past
10 years, this has funded more than 300 programs
in over 75 countries. The foundation applies an
evidence-based approach towards philanthropy,
prioritizing programs that focus on the well-being of
children under the age of eight (because evidence
indicates the critical importance of interventions
during early childhood). The combination of UBSâs
core capabilities and its Foundationâs development
expertise results in a number of highly innovative
projects, such as the development of innovative
înancing models for philanthropic investments
including the îrst Development Impact Bond in
Education with âEducate Girlsâ in India.
⢠Zurich Insurance Group, together with PSI which
is a global non-Government organization dedicated
to improving the health of people in the developing
world, launched and funded a project to determine
what role private capital could play in helping NGOs
to achieve more impact, and what opportunities
this could present for impact investors. Zurich is
currently exploring the structuring of a Development
Impact Bond.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 33
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 10
Photo: Masaru Goto/World Bank
⢠Bradesco Seguros is committed to reducing
inequality of access to înancial services. It is
present in every municipality of Brazil (including
several favelas) via normal branches, very small
branches and banking correspondents. In order to
reach people who live along the SolimĂľes River in
the Amazon region, since 2009 Bradesco has utilized
a îoating branch inside a ship called Voyager III
which travels along 1,600km the river. This has
enabled 35,000 bank accounts to be opened and
4.5 million banking operations to be executed. In
June 2014 Bradesco opened an additional branch
on board of the ship Voyager V enabling each
community to be visited every 3 to 4 days. During
the visits Bradesco staff hold meetings with the
communities to increase înancial education.
⢠YES BANKâs award winning, custom built,
multi-channel domestic remittance platform, YES
MONEY, offers low cost, safe and highly accessible
remittance services to Indiaâs millions of migrant
workers who need to transfer funds to their native
villages and towns. The platform leverages existing
cash remittance technologies in India, its vast
spread of local family owned retail stores and the
pan-India network of bank branches, to meet the
remittance needs of Indiaâs migrant, unbanked and
under-banked population. In 2014-15, YES MONEY
achieved a major milestone by crossing over $1.3
billion in remittances since its launch in 2013, with
over 1.3 million unique users.
⢠Several înancial institutions have become
accredited Living Wage Employers for paying their
UK employees a minimum of the Living Wage, an
hourly rate which is set independently by the Living
Wage Foundation according to the cost of living in
the UK, shown to improve employee productivity and
retention and reduce absenteeism. These include
â A viva which îrst adopted the Living Wage in
London in 2005. Now everyone who works for
Aviva in the UK, whether they are employed
directly or subcontracted through a third party
or supplier earns at least the UK Living Wage.
Aviva is also supporting the campaign to get other
employers on board.
â Barclays Bank which in 2007 made the
commitment to exceed the London Living Wage
for both employees and contracted staff, reducing
absenteeism and employee turnover from 30%
to 4%, whilst increasing performance and
satisfaction levels.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 34
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 11
SDG 11
Make cities and human settlements inclusive, safe, resilient
and sustainable
Photo: Julio Etchart/World Bank
OPPORTUNITIES FOR SHARED VALUE
⢠Expand the scope and type of insurance data and models which are shared with the public sector and other
stakeholders to improve risk reduction and resilience.
⢠Collaborate with city stakeholders to analyze and increase the resilience of interdependent systems, such
as transport infrastructure and utilities, which underpin resilience of individual assets.
⢠Share risk and claims trend data with the police to inform public safety campaigns and policing strategies to
keep communities and property safe.
⢠Collaborate with key stakeholders to reduce road trafîc accidents, for example by sharing data and risk
management expertise and using inîuence.
⢠Educate homeowners and businesses about weather-resilient building materials and techniques, and offer
incentives for implementation.
⢠Share understanding of risk to inform Government legislation on land zoning and building codes of practice.
LEADING BY EXAMPLE
⢠Citi partners with the C40 Cities Climate Leadership
Group (a network of the worldâs megacities
committed to addressing climate change) to provide
expert pro bono climate înance research and
support to help C40 cities address the sustainable
infrastructure înancing and implementation needs.
⢠Swiss Re continues to share its data on the
potential impact of major natural catastrophic
events on cities. Its publication âMind the risk: a
global ranking of cities under threat from natural
disastersâ, formed a basis for local decision-makers,
the insurance industry and the broader public to
promote dialogue on both protecting lives and
improving disaster preparedness as well as planning
for the înancial consequences of a disaster.
Following up on this publication, Swiss Re also
launched âRisky citiesâ publication series in 2014,
which provided more detailed data for Los Angeles,
Tokyo, Mexico City and Rome.
⢠MasterCard is a Lead Partner of the Smart Cities
Council, an industry coalition to advance smart city
development and innovation. This initiative will
equip city leaders with the tools and resources to
better plan, înance, and deploy cutting-edge smart
city technologies.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 35
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 11
⢠AXA, in partnership with the PSI Initiative, is
conducting pioneering international surveys on
the climate resilience of cities and SMEs. For this
project, more than 40 urban leaders in developed
and developing countries were interviewed, and
more than 1,000 SMEs in Europe, Asia and the
Americas were surveyed. The project will convene
urban and business leaders, including mayors, chief
resilience ofîcers, experts in urban planning and
city and business resilience, to provide a platform
for dialogue and new ideas and approaches to drive
greater action, scale and impact.
⢠In 2012 Insurance Australia Group (IAG) initiated
the formation of the Australian Business Roundtable
for Disaster Resilience & Safer Communities. This
followed an unprecedented number of natural
hazard events (îoods, cyclones, hailstorms, and
bushîres) in 2011 with total losses of around A$12
billion. The roundtable is a private-public coalition
covering diverse industries: insurance (IAG); banking
(Westpac); telecommunications (Optus); property
development (Investa); reinsurance (Munich
Re); and not-for-proît (Australian Red Cross). The
Roundtableâs vision is to work collaboratively with
the Australian Government to effect change in
public policy and increase investment aimed at
building safer and more resilient communities;
and to actively improve the capacity of people
and businesses to better withstand future natural
disasters. After the Roundtableâs work garnered
signiîcant attention, IAG turned its efforts into
global thinking and action by sponsoring the Global
Resilience Project (described on page 14).
⢠In 2015 Aviva Canada was the îrst-to-market in the
provision of an Overland Water Coverage Option for
home insurance, to provide water damage coverage
for certain categories of claims not previously
covered by the Canadian Insurance industry. Aviva
estimates that the coverage will be available to
94% of its customers. According to Environment
Canada, severe weather events that used to happen
every 40 years can now be expected to happen
every six years.
⢠Finance Norway, an industry association
representing over 200 înancial companies,
undertook a study to assess the impact of using
disaster loss insurance data from Norwegian
insurance companies to strengthen municipalitiesâ
capacities to prevent future climate-related
natural hazards and urban îooding. Funded by
Finance Norway and structured as a public-
private-partnership, this project gathered and
transferred company data to universities and several
municipalities which then applied the geo-coded
data to spatial planning, especially planning of
land-use and water and sanitation. Initial îndings
suggest that sharing this data can signiîcantly
improve land-use planning for disaster resilience.
⢠Partners For Action: Beginning in 2013/14, The
Co-operators Group initiated a multi-stakeholder
research and engagement effort to determine means
to de-risk the Canadian residential property market
from the increasingly negative impacts of overland
îooding. A central component of this work was the
convening of a core group of stakeholders included
property & casualty insurers, policymakers, îood risk
experts, professional associations, businesses and
the legal community to identify winning conditions
to de-risk îood potential. Research efforts have
so far included studies on the viability of îood risk
insurance, analysis of 15 citiesâ preparedness for
îoods, and key policy options across municipal
services, utilities, telecommunications, emergency
response, and other issues. In 2015, The Co-
operators and Farm Mutual Reinsurance Plan
announced the creation of the Partners for Action
Network, hosted at the University of Waterlooâs
Faculty of Environment, which will continue to
advance îood resiliency in Canada.
⢠In 2012, Credit Suisse conducted a joint analysis
with the World Wildlife Fund of the energy and
carbon efîciency of its real estate investment
portfolio in Switzerland. As a result of this analysis,
Credit Suisse Real Estate Investment Management
(CSREIM) initiated a îve-year program in
cooperation with Siemens Switzerland and Wincasa
to systematically record and enhance the energy
and carbon efîciency of the global real estate
portfolio. Through greenproperty, CSREIM initiated
and implemented the îrst Swiss quality seal for
sustainable real estate, and launched its CS Real
Estate Fund Green Property for clients to invest in
real estate that meets strictly deîned criteria. The
greenproperty label assesses and annually certiîes
projects and existing buildings using 35 criteria
which consider utilization, infrastructure, energy,
materials and life cycle.
⢠Rabobank organizes a Smart Refurbishment
event in Holland, bringing together businesses
and consumers to showcase home energy-saving
measures. As a mortgage provider, Rabobank has a
commercial interest because it likes people to invest
in the properties it holds as collateral. Consumers
can often înance large energy efîcient renovations
through their existing mortgage and Rabobank
also offers a range of special înancing schemes
including an Energy Saving Loan.
⢠Grupo Financiero Banamex developed the
Sustainable and Competitive Cities Index in
collaboration with several key stakeholders
including Government departments responsible for
housing, public works and energy and academia. It
is a yearly award for Mexican cities that meet the
Indexâs criteria.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 36
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 12
SDG 12
Ensure sustainable consumption and production patterns
Photo: Curt Carnemark/World Bank
OPPORTUNITIES FOR SHARED VALUE
⢠Develop new pricing models which incentivize more sustainable living.
⢠Develop innovative products, such as âpay as you driveâ auto insurance and discounted premiums for energy-
efîcient buildings, to incentivize reduced energy use and thereby greenhouse gas emissions.
LEADING BY EXAMPLE
⢠Eight Rabobank wholesale clients active in the
food & agribusiness and automotive sectors took up
Rabobankâs one year Circular Economy Challenge.
The aim for these international companies is
to utilize ideas from the circular economy to
create new business opportunities. Rabobank
sees circular enterprise as the leading business
concept for the future, enabling companies to
use less raw materials, produce less waste and
operate more cost-effectively through recycling. It
is convinced that by helping portfolio companies
to operate sustainably, it is helping itself because
these companies hold the future. Through the
CE Challenge, Rabobank provides access to
its knowledge, network and resources through
workshops, company visits and a range of tools.
The ambition is for each participating company to
have drawn up a business case in the îeld of the
circular economy by the end of the program. These
business cases are tested and translated into new
circular products or services and presented to a
judging panel.
⢠Rabobank has a partnership with the World
Wide Fund for Nature to set up projects together
with customers creating business models for
sustainable food production. Rabobank considers
this partnership good for biodiversity, entrepreneurs
and the bank. The two partners are focusing on
developing six projects further, and sharing the
insights and knowledge acquired in the process
so that many more farmers, îshermen and
horticulturists will be able to reap the rewards. The
six projects include: increasing the sustainability of
soy production in Brazil, in tandem with livestock
farming and the preservation of the tropical
rainforest; increasing the sustainability of salmon
farming (aquaculture), mindful of the ecology and
needs of local communities; and the sustainable
production of sugar cane in India, resulting in a
reduction in the business and ecological risks
associated with water usage and carbon
dioxide emissions.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 37
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 12
⢠The âAviva Driveâ smartphone app rates driver
behavior and provides discounts to safer, more fuel
efîcient drivers, increasing access to insurance and
encouraging responsible driving.
⢠Aviva has rolled out a new claims management
process so that all property claims are dealt with in
a more sustainable way, with no change of policy
wording or new policy. By working collaboratively
with its three main claims damage management
suppliers, dramatic improvements have been made
in carpet restoration, waste recycling, and claims
settlement times. In respect of the waste from its
own business operations, Aviva has a UK zero to
landîll target by the end of 2015, and zero to landîll
on a group wide basis by 2020.
⢠In 2010 Daegu Bank, DGB Financial Groupâs
main subsidiary, opened an internet-based,
environmentally-friendly branch in Korea. Its branch
only offers green înancial products covering
deposits, loans, funds and credit card products,
and donates a certain percentage of the proîts
to support regional environmental
preservation activities.
⢠Swedfund (the Swedish development înance
institution) published âSustainable Business -
Swedfundâs Integrated Report 2014â which is a
totally integrated report in which sustainability
related information in the directorâs report is
fully integrated with înancial data, and vice
versa. The Board signed the integrated report
and publishes it in its entirety and the report is
subject to external audit. Swedfund has worked
to implement integrated thinking in all its
processes including measurement and reporting
on results. It has implemented a number of results
indicators measuring its portfolio companies on
its three pillars, including country-by-country tax
reporting, fulîllment of ILO core conventions, and
implementation of ESG management systems.
⢠DKVâs Ecofuneral is a funeral expenses insurance
policy that beyond having its beneîts, coverages
and services has an ecological side that promotes
sustainable practices and reduces the carbon
footprint usually produced from passing. Ecofuneral
is the îrst funeral expenses insurance policy with
the ecological certiîcate SFE 07:02 by Terra, a
recognized environmental organization. Ecofuneralâs
sustainable practices include: proximity-wood-made
cofîns, with sustainable forestry certiîcations
and without varnishes, trims or pigments; urns
without synthetic, metallic or plastic components
and mortuaries and crematoriums with ISO 14001
certiîcation. It includes collaboration on projects to
improve the environment through conservation
and reforestation.
⢠Standard Chartered has committed to reduce
energy use intensity in its operations by 35% in
tropical locations and 20% in temperate locations
between 2008 and 2019; reduce water use intensity
in its operations by 71% between 2008 and 2019;
and continue to embed its Supplier Charter which
sets out the environmental and social standards it
expects of its suppliers. Between 2008 and 2014,
Standard Chartered reduced its energy use intensity
by 9% in tropical and 22% temperate locations and
reduced its water use intensity by 9%.
⢠HSBC set a goal in 2011 to cut its annual per
employee carbon dioxide emissions by one tonne
â from 3.5 to 2.5 tonnes â by 2020. By the end of
2014, emissions had fallen to 2.9 tonnes â thanks
to the support of employees and suppliers (including
JLL, HSBCâs Global Facilities Management provider,
which is contractually committed to reduce HSBCâs
energy consumption each year). HSBC UK has
started generating its own renewable, zero-carbon
electricity, through an innovative agreement with
two UK wind farms that will reduce its carbon
footprint from electricity by 40%. By signing
long-term power purchase agreements, HSBC is
supporting the construction of wind farms in the UK
and the decarbonisation of its own energy supply
by directly bringing new additional renewable
energy capacity online. HSBC also signed a power
purchase agreement with a 10-megawatt solar
power plant in Hyderabad, India, which came online
to provide the Group with clean energy in August
2014, to power three Global Service Centers and a
Technology Centre in India. HSBC played a key role
in facilitating the project by agreeing to purchase
the plantâs energy at a Government backed îxed
price for the next ten years.
⢠Borsa
Ä°
stanbul started to calculate the BIST
Sustainability Index in November 2014, providing
companies with the opportunity to compare their
sustainability performance locally and globally.
It provides a platform for institutional investors
to demonstrate their commitment to companies
performing strongly on ESG issues and it increases
sustainability awareness, knowledge and practices
in Turkey. The Index provides companies with an
instrument for evaluating their performance and
consequently adopting new targets or furthering
their performance while allowing them to develop
their risk management abilities for corporate
transparency, accountability and sustainability. This,
in turn, allows companies to gain a competitive
edge. Borsa Istanbul also published a âHandbook
for Sustainability Guidanceâ to help companies
integrate ESG factors in their decision making and
business processes and launched a Sustainability
Platform to increase knowledge sharing.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 38
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 13
SDG 13
Take urgent action to combat climate change and
its impacts
UN Photo Library
OPPORTUNITIES FOR SHARED VALUE
⢠Invest in â and/or raise înance for - climate risk mitigation, climate resilience and climate adaptation including
climate and green bonds, and other debt and equity instruments.
⢠Increase coverage of national and regional natural catastrophe insurance schemes.
⢠Integrate climate risks into underwriting practices, investment analysis and decision making.
⢠Evaluate the risk of âstranded assetsâ and consider global exposure limits or divestment across industry
segments such as fossil fuel energy generation, coal mining, coal transportation infrastructure and
unconventional oil extraction.
⢠Be an active steward of investments in portfolio companies, engaging with management and exercising
shareholder voting rotes to inîuence more climate-sensitive and climate-resilient business strategies that are
inclusive of men, women and children.
⢠Measure and publicly disclose the carbon footprint of investment portfolios on an annual basis in
accordance with The MontrĂŠal Carbon Pledge (including listed equities, îxed income, private equity, property
and infrastructure).
⢠Take steps to measure, reduce and report climate exposure and progress on actions to confront climate
change, continuing to increase the level of transparency and consistency of reporting across the industry sector.
⢠Consider supporting âCaring for Climateâ which is the UN Global Compact, UNEP and the secretariat of the
UNFCCâs initiative aimed at advancing the role of business in addressing climate change (endorsed by nearly
400 companies from 60 countries).
LEADING BY EXAMPLE
⢠In 2014 the insurance sector, represented by
the International Cooperative and Mutual
Insurance Federation and the International
Insurance Society, pledged to double its planet-
smart investments to US$84 billion by December
2015 and to increase planet-smart investments
tenfold to US$420 billion by 2020.
⢠Swiss Re announced that by 2020 it will have
advised 50 sovereigns and sub-sovereigns on
climate risk resilience and offered capacity of US$10
billion against climate risks.
⢠Citi has made a 10-year US$100 billion commitment
to înance activities that reduce carbon emissions,
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 39
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 13
help communities adapt to climate change and
directly înance sustainable infrastructure such as
green housing.
⢠AXA has committed to divest âfrom companies
most exposed to coal-related activitiesâ, totalling
âŹ
500 million. AXA has also committed to triple its
green investment to over
âŹ
3 billion by 2020, coming
principally from investments in clean technology
private equity, green infrastructure, impact
investment and green bonds.
⢠HSBC is one of a number of înancial institutions
that is playing an important role in shaping the fast-
developing green bond market. Also, for more than
10 years, HSBC has been working with its business
customers to help them understand and manage
their environmental and social impact with a focus
on certain sectors and themes. HSBC assesses
and supports customers using its policies which it
regularly reviews and reînes. HSBCâs Energy Sector
Policy severely restricts the bankâs support for coal-
îred power plants, while recognizing that the shift
to a low carbon economy will take time and that
fossil fuels will be an important part of the global
energy mix for the foreseeable future.
⢠In 2011 Storebrand/SPP made its îrst investment
in a Green Bond, and by the end of 2014 Storebrand/
SPP had invested over NOK 4.5 billion (US$545
million) in green bonds. In 2015 Storebrand/
SPP launched a Green Bond Fund âSPP GrĂśn
Obligationsfondâ which is an actively managed
bond fund focusing on sustainability. The bonds
invest in projects such as renewable energy,
waste management and drinking water supply and
water treatment facilities. The fund is managed
in accordance with Storebrandâs sustainable
investments policy which covers human rights,
corruption, climate and environmental damage,
controversial weapons, tobacco and companies
with a low sustainability rating. Approximately
170 companies are excluded from its investment
universe. Further the fund does not invest in
companies involved in the extraction of fossil fuels,
coal intensive power producers and companies
where more than 5% of turnover from weapons,
alcohol, casino and gaming and pornography.
⢠YES BANK issued Indiaâs îrst Green Infrastructure
Bonds to raise INR 10,000 million (US$160
million) to exclusively fund its renewable energy
commitments, thus opening the door for this
instrument in India. The INR 5,000 million issue,
with a greenshoe option, was oversubscribed
demonstrating strong demand for these instruments
in India. In August 2015, YES BANK raised
another INR 3,150 million (US$50 million) from
the International Finance Corporation (IFC) through
its Masala Bonds launched on the London Stock
Exchange, which were the IFCâs îrst investments in
an emerging marketâs green bonds.
⢠In July 2015, Aviva released its Carbon Strategy
that includes commitments to: Continue to
explore ways to integrate carbon risk, alongside
other material ESG issues, and actively seek to
collaborate to publish new research and insights;
Target a ÂŁ500 million annual investment in low-
carbon infrastructure for the next îve years - also
targeting âcarbon returnsâ alongside înancial returns
on its investment and setting an associated carbon
savings target for this investment of 100,000 tonnes
of CO2 annually; Support strong policy action
on climate change âsupporting policymakers in
negotiating a credible long-term greenhouse gas
reduction goal at the UN Framework Convention on
Climate Change negotiations in Paris in December
2015 and beyond that at a national and regional
level; Active stewardship on climate risk â actively
engage with companies to achieve climate-resilient
business strategies; Divesting where necessary
where it considers insufîcient progress is
being made.
⢠In 2013, Zurich Insurance Group launched
a global îood resilience program to improve
community resilience to îoods by bringing
together leading humanitarian organizations (the
International Federation of the Red Cross and
Red Crescent Societies and Practical Action),
academia (IIASA & Wharton School) and the private
sector (Zurich). By using complementary skills
and expertise the program is înding new ways
to enhance resilience in both the developed and
developing world. Some of the key achievements
to date are:
â Research has proven the potential saving from
investing in pre-event risk reduction instead of
post-event relief and Zurich is using these îndings
in its public policy work across the globe.
â Community programs beneît 275,000 people in
Indonesia, Mexico, Nepal, Peru and the United
States. After the îrst two years of work, the
implemented solutions have made them more
resilient to îoods and this work is now being
scaled to reach more communities.
â Through the cross-sector partnership, a îood
resilience measurement framework has been
produced to help prove impact and identify
resilience gaps. The framework, which is being
adapted by other humanitarian organizations as
the general standard, is based on the sustainable
livelihoods framework and Zurichâs methodology
for rating customersâ exposure to various risks.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 40
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 13
⢠Insurers, reinsurers and brokers have
collaborated with Governments and other
stakeholders to provide regional catastrophe index-
based risk insurance which provides short term
liquidity to Governments when certain rain and/or
wind measurements exceed a contractual threshold.
Notable facilities include the Caribbean Catastrophe
Risk Insurance Facility, the Paciîc Catastrophe Risk
Assessment and Financing Initiative, the Central
America Natural Disaster Insurance Facility and the
Turkish Catastrophe Insurance Pool.
⢠Sompo Japan Nipponkoa Insurance Inc. joined
the Paciîc Catastrophe Risk Insurance Pilot Program
established by the World Bank and the Japanese
Government in 2013, following the insurerâs
proactive involvement in the study project since it
was proposed in 2009 at the PALM (Paciîc Islands
Leaders Meeting held in Hokkaido). Meanwhile, to
promote climate change adaptation, Sompo Japan
Nipponkoa has underwritten derivative contracts
in Japan and overseas and strived to accumulate
advanced înancial technologies and know-how.
⢠Sompo Japan Nipponkoa Asset Management
Co.,Ltd. sells âSompo Japan Green Openâ which is
an investment trust (fund). It invests in companies
that are highly evaluated both in terms of their
environmental initiatives as well as on their value
of investment. It was launched in September 1999
and has grown into one of the largest Socially
Responsible Investment funds in Japan with a net
asset value of approximately 23 billion yen (US$195
million) as of June 30, 2015.
⢠NRW.BANK, a state owned development bank,
actively supports the of the State of North Rhine-
Westphalia (NRW)âs climate protection policy. It
aims to increase environmental driven standards
of living, reduce NRWâs global carbon footprint,
mitigate the impacts of climate change, improve
ecological water management and contribute to
the protection and promotion of biodiversity. It
established the NRW.BANK Green Bond Program
in 2013 to increase visibility of its sustainable
loan book and issued a second Green Bond in
2014. NRW.BANK Green Bonds will be issued
regularly to highlight its activities to capital markets
participants, support further development of the
Green Capital Market and trigger more investments
in green assets. NRW.BANK aligned the program to
the Green Bond Principles and obtained third party
assurance and an impact report for the NRW.BANK
Green Bond 2014.
⢠Piraeus Bank, during the European Union co-
funded LIFE climabiz project, created an innovative
software tool âthe Climate Risk Management Model
(CRM)â to quantify înancial impacts and business
opportunities that arise from climate change.
A scientiîc paper was published in the Journal
of Environmental Planning and Management,
titled âA methodological framework and tool for
assessing the climate change related risks in the
banking sectorâ. The CRM Model estimates: costs
of physical and regulatory climate risk at a sector,
subsector and company level; costs and beneîts of
the practices that a company can apply to reduce
climate risk; environmental footprint at subsector
and company level; and the opportunities arising
of climate change. The model raises awareness
and educates shareholders, suppliers, employees
and the broader public about tackling climate
change and adapting to the new conditions, whilst
also guiding and supporting companies towards a
smoother adaptation to climate change.
⢠Piraeus Bank supports and provides funding for
investments aimed at environmentally and socially
responsible actions. It has created a series of green
banking products and advisory services, supporting
both businesses and consumers, allowing for
economic development that preserves natural
capital and enhances quality of life. All Piraeus Bank
Group green products promote projects in renewable
energy, energy efîciency, green transport,
alternative waste and water management, organic
and responsible farming, green chemistry and eco-
tourism / agrotourism. By the end of 2014, Piraeus
Bank had approved green loans totaling ⏠1.6 billion,
înancing over 20,000 individual and businesses and
preventing the annual emission of 1,500 thousand
tonnes of carbon dioxide. Renewable Energy
Systems projects reached 860MW of
installed capacity.
⢠Aviva commissioned and sponsored (together with
KPMG) an Economist Intelligence Unit report âThe
cost of inaction: recognizing the value at risk from
climate changeâ in order to highlight the importance
of climate change to the asset management
industry and beyond. The report estimated US$4.2
trillion value at risk. At Rio+20 Aviva helped the
inclusion of corporate disclosure in the outcome
document and it is now calling for a consistent and
comparable international approach to corporate
disclosure of sustainability performance to enable
sustainable capital markets. Also Aviva, along
with other insurance companies, participated
in a survey and series of roundtables convened
by the UKâs insurance regulator (the Prudential
Regulatory Authority) on the safety and soundness
of insurers with respect to climate risk. Aviva was
at the forefront of calling for and supporting the
development of the Sustainable Stock Exchange
Initiative. Aviva continues to lobby for more inclusive
forms of capitalism based on long term investment
decisions that support the implementation of
the SDGs.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 41
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 14
SDG 14
Conserve and sustainably use the oceans, seas and marine
resources for sustainable development
Photo: Edwin Huffman/World Bank
OPPORTUNITIES FOR SHARED VALUE
⢠Adopt position statements, guidelines and policies which drive sustainability within client and
investee companies.
⢠Share marine risk expertise with Governments and companies to better mitigate and manage risks arising
from îshing and aquaculture, shipping, and deep-sea oil, gas and mineral extraction.
⢠Further research and quantify the value of ecosystem services to send an economic signal for increased
investment in the protection and restoration of natural habitats such as mangroves which will in turn reduce
insurable risk.
LEADING BY EXAMPLE
⢠Standard Chartered has developed a position
statement on îsheries, which it applies to all its
debt, equity and advisory services referencing the
good practice principles and standards it will use to
assess clientsâ capacity to manage potential adverse
environment and social impacts, and practices
which would preclude a company from being a
client such as drift net îshing and deep sea
bottom trawling.
⢠Standard Chartered has a position statement on
ship breaking which encourages clients to work
towards adhering to recognized good practice
guidelines and precludes înancing operations under
certain conditions for example ships which do not
have a Green Passport or which would signiîcantly
affect wetlands of international importance.
⢠Swiss Re is collaborating with The Nature
Conservancy to incorporate nature-based coastal
adaptation measures into open source risk models
and maps, informed by assessment of the cost
effectiveness of green (e.g. mangroves) and grey
(e.g. seawalls) infrastructure solutions.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 42
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 15
SDG 15
Protect, restore and promote sustainable use of terrestrial
ecosystems, sustainably manage forests, combat desertiďŹcation,
and halt and reverse land degradation and halt biodiversity loss
Photo: Curt Carnemark/World Bank
OPPORTUNITIES FOR SHARED VALUE
⢠Use innovative înancial tools (such as green bonds and impact funds) to raise înance to preserve forests
and ecosystems.
⢠Apply the Sustainable Forestry Policy Sector Standard and Roundtable on Sustainable Palm Oil Principles and
Criteria to business relationships and investments in the forestry and palm oil sectors.
⢠For transactions in emerging markets, apply the issue-based International Finance Corporation (âIFCâ)
Performance Standards and the 63 sector-speciîc IFC Environmental Health and Safety Guidelines.
⢠Share data, research and tools to increase understanding of the dynamics and value of ecosystem services
to send an economic signal for increased investment in the protection and restoration of natural habitats which
will in turn reduce insurable and investment risk.
LEADING BY EXAMPLE
⢠Eleven banks representing 50% of global
trade înance have formally adopted the Banking
Environment Initiativeâs âSoft Commoditiesâ
Compact, which aligns the banking industry with
The Consumer Goods Forumâs resolution to help
achieve zero net deforestation in their supply chains
by 2020. As a result of this industry-to-industry
collaboration, a new trade înance product has
been developed, the Sustainable Shipment Letter
of Credit, which enables banks to reduce the
cost of importing sustainably certiîed palm oil
into emerging markets â a key source of global
demand that is not currently prioritizing sustainable
production methods, in part due to price sensitivity.
⢠In 2004, HSBC was one of the îrst banks to
introduce a Forest Land and Forest Products Sector
Policy covering environmental, community and
climate issues. In 2014, HSBC issued revised
Forestry and Agricultural Commodities policies,
and started to engage its customers in these
sectors, offering advice on how they might achieve
the new deadlines set by the bank to achieve
independent certiîcation of their operations. As a
result, HSBCâs customers in Malaysia, Indonesia,
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 43
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 15
mainland China, Taiwan, South Korea, Thailand,
Turkey and Mexico decided to have their operations
certiîed. One example is an Indonesian palm oil
processing, reîning and export company, where
the management sought expert advice from third
parties to understand more about certiîcation from
the Roundtable on Sustainable Palm Oil (RSPO),
which they found was less complex than they
had imagined. Two units of the company obtained
RSPO certiîcation in June 2014. In February
2015, HSBC was recognized as the leader in the
Forest500 ranking of 150 investorsâ policies on
the sustainability of forest commodity supply
chains. HSBC also offers a discounted prepayment
export înance product for trade îows of certiîed
sustainable palm oil. The product launched in
Singapore and Indonesia in 2014 and in Malaysia
in early 2015. The îrst deal completed on this
structured, bespoke înancing was for a major palm
oil exporter in 2014.
⢠Standard Chartered has a position statement on
forestry which outlines the standards it encourages
or expects its clients to align to. It applies to
all debt, equity and advisory services provided
by the Bank for new and existing corporate and
institutional clients, and lending provided to
commercial clients, and business clients in its
retail segment.
⢠Credit Suisse published a study in 2014 co-
authored with the World Wildlife Fund and a
management consultant that analyzed innovative
private sector înancing structures in conservation
and identiîed the barriers and enablers to scaling
up such approaches. It then launched its îrst
conservation investment product, the Nature
Conservation Notes, which invests in sustainable
agroforestry and ecosystem conservation, as
well as in a portfolio of sustainable bonds. These
Notes supports conservation activities in around
20 countries as well as the economic development
of local communities through Althelia Climate
Fund înance. Financial returns for investors are
generated through the sale of sustainably certiîed
commodities as well as from payments for
ecosystem services.
⢠MS&AD Insurance Group has provided an initial
biodiversity risk assessment service developed by
its group company, InterRisk Research Institute &
Consulting, Inc. With this service, various existing
information sources and databases such as the
Integrated Biodiversity Assessment Tool are
utilized to conduct a simpliîed assessment of risks
on planned development sites and raw material
suppliers around the world (without actually
visiting these sites). The target risk areas include
biodiversity, water, indigenous peoplesâ rights, and
other environmental / social issues. By providing
this service to business organizations, they can
assess biodiversity risk at the site selection stage
and take necessary measures (e.g. avoid sites that
need to be conserved).
⢠Piraeus Bank, with co-funding from the European
Union, aspires to create a sustainable management
and înancing system for the important degraded
wetland ecosystem of Stymphalia in Greece,
designated under the EUâs Natura 2000 natura and
biodiversity policy as one of Europeâs most valuable
and threated habitats. The aim of the project,
which is expected to end by 2017, is to improve the
conservation status of wetland habitats and species
and to ensure a sustainable business scheme
which will generate revenues by utilizing reed
biomass removed from the wetland and the areaâs
unexploited biomass from agriculture residues.
Thereby, it will be feasible to create viable schemes
for the continuation of the wetlandâs protection
after the end of the project, by ensuring that the
necessary înancial resources will be generated by
the wetlandâs management.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 44
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 16
SDG 16
Promote peaceful and inclusive societies for sustainable
development, provide access to justice for all and build effective,
accountable and inclusive institutions at all levels
UN Photo Library
OPPORTUNITIES FOR SHARED VALUE
⢠Collaborate with the World Bank, the Financial Stability Board and other stakeholders to reduce illicit
înancial îows by ensuring that cross-border înancial îows use formal înancial systems and scaling technical
solutions such as the global Legal Entity Identiîer system (which standardizes identiîcation) and Know Your
Customer platforms that help avoid duplicating due diligence work.
⢠Collaborate with other institutional investors on emerging or controversial issues to promote responsible
business in high-risk areas, ensuring investee companies see a clear correlation between responsible business
and availability and pricing of capital.
⢠Engage with a range of local stakeholders, including civil society, to better understand the local context in high-
risk areas including risks and perceptions of prospective and existing investee companies.
⢠Consider opportunities for social enterprise and impact investment ventures particularly in post conîict
countries where SMEs and micro-enterprises play a critical role in providing jobs. Ensure these opportunities
are inclusive and support the development of marginalized groups including women, persons with disabilities,
indigenous persons, and racial and ethnic minorities.
⢠Pool insurance claims, underwriting and risk data, making it available to organizations involved in crime
prevention to help inform their activities.
⢠Develop systems and processes to tackle human trafîcking (e.g. due diligence mechanisms that better track
cash îows) and provide înancial services products which support victims of violence (e.g. insurance services
that meet their needs).
⢠Avoid înancing transactions which would displace indigenous people unless they have provided free, prior,
informed consent.
⢠Consider joining Business For Peace which is a platform of over 130 leading companies from 37 countries
dedicated to catalyzing collaborative action to advance peace.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 45
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 16
LEADING BY EXAMPLE
⢠MasterCard, in partnership with the Government of
Nigeria, has rolled out a biometric National eID Card
to more than 13 million Nigerians with electronic
payment functionality. This program will reach more
than 100 million Nigerians, making it the broadest
înancial inclusion initiative of its kind on the
African continent.
⢠Aviva and the NGO Plan have partnered with the
Indonesian Government to improve legislation
and provision of birth registration for street
children in Indonesia. Accurate personal data is
key to insurance provision but basic legal identity,
founded on birth registration, is also vital to
accessing education, healthcare and justice. Further,
Governments can only plan services for people who
ofîcially exist.
⢠In 2014 Standard Chartered more than doubled
the staff working in Financial Crime Compliance.
It has internal înancial crime prevention policies
and every year more than 80,000 of its employees
complete training to prevent bribery, corruption and
money laundering. It also has a human rights policy.
⢠Calvert Investments has supported âpublic
policy initiatives and direct engagement effortsâ
to promote transparency within supply chains
and ensure companies are not fuelling conîict in
the Democratic Republic of Congo (âDR Congoâ).
This includes, for example, helping draft an
investor response to the Securities and Exchange
Commissionâs proposed implementing rules for those
provisions of the Dodd-Frank Act relating to conîict
minerals. This emphasizes the need for âinvestors to
be provided with valuable and consistent disclosure
that is necessary to make informed investment
decisionsâ. Calvert has also stated its support for
Californian legislation prohibiting state contracts
with companies that fail to comply with federal
reporting requirements on conîict minerals. In
addition, Calvert has worked with other ethical
investors, NGOs and companies to âleverage our
collective inîuenceâ in addressing human rights
and labor abuses in the DR Congo. This includes
research and development of relevant best practices
policies and procedures. Calvertâs initial efforts
were focused on the electronic industry and then
expanded to include the medical device, aerospace
and defense, and automotive sectors.
⢠Ace Group, a global insurance company,
established a âRule of Law Fundâ which provides
grants to organizations and initiatives that support
rule of law worldwide. The fund targets speciîc rule
of law initiatives such as sponsoring conferences
that focus on building frameworks for legal
institutions in conîict zones and building pro bono
efforts in developing countries.
⢠Norwegian Government Pension Fundâs
internal Council on Ethics has published 10
recommendations to guide the Government of
a Scandinavian country on excluding unethical
investors from the Fundâs portfolio (majority
Government owned). Recommendations related to
the production of weapons in that country, working
conditions and environmental damage. All of these
recommendations were adopted by the Government.
⢠MN Services (a îduciary manager), the lead
investor in the engagement group of an African
country, has led high level meetings with the
Minister of Finance and the Secretary General of
the Ministry of Mining of that country to address
the implementation of the Comprehensive Peace
Agreement, fair revenue sharing and other human
rights related issues.
⢠An asset manager commissioned independent
research into an investee companyâs operational
risks and benchmarking practices against other
companies operating in high-risk areas, resulting in
the investee company improving its public reporting.
⢠Collective action was instrumental in enabling a
group of institutional investors to establish an
open dialogue with a group of extractive investee
companies, including state owned enterprises,
operating in a conîict-affected nation, thereby
providing better insight into risk.
⢠A private US bank has committed to invest in
physical infrastructure in post-conîict countries
to enable necessary înancial transactions to take
place whilst reducing corruption and increasing
transparency.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 46
FINANCIAL SERVICES
SDG INDUSTRY MATRIX â SDG 17
SDG 17
Strengthen the means of implementation and revitalize
the global partnership for sustainable development
UN Photo Library
OPPORTUNITIES FOR SHARED VALUE
⢠Strengthen the link between corporate and societal value creation and align the organizationâs value creation
strategy to the Sustainable Development Goals.
⢠Adopt good practice principles and guidelines which better align business practices with the SDGs.
⢠Engage in multi-stakeholder initiatives advancing sustainable development.
⢠Develop a set of Financial Services (or banking, investment management and insurance) industry goals aligned to
the SDGs and align corporate strategy to those goals to optimize contribution to sustainable development.
⢠Establish a robust impact measurement framework for corporate, multi-stakeholder partnership and industry
level contributions to sustainable development including regular monitoring and transparent evaluation
and reporting.
⢠Collaborate with other înancial services companies and stakeholders to provide industry perspectives to
Governments, policymakers, legislators and regulators on the sustainable development impact of legislative,
regulatory and tax frameworks including recommendations for improvement.
LEADING BY EXAMPLE
⢠Several înancial institutions are constructively
engaging in international led processes including
the four intergovernmental negotiations taking place
in 2015 (i.e. the World Conference on Disaster Risk
Reduction, the World Financing for Development
Conference, the Summit to Adopt the Sustainable
Development Goals, and the United Nations Climate
Change Conference) as well as the preparations for
the 2016 World Humanitarian Summit.
⢠Insurance sector initiatives and membership
organizations (including the UNEP FI Principles
PSI Initiative, the International Insurance Society,
the Geneva Association and the International
Cooperative and Mutual Insurance Federation)
are demonstrating leadership in researching,
debating and promoting the role of insurers in
sustainable development. This includes an explicit
recommendation to create a set of Insurance
Development Goals, based on a pioneering global
consultation by the PSI Initiative and the UNEP
Inquiry on how insurance companies and insurance
regulators could better support development through
to 2030.
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 47
KEY CONTRIBUTORS
The UN Global Compact and KPMG International would like to thank
the many individuals, companies and organizations that contributed
to this publication with inspiration, ideas, company examples and
feedback through both the call for company submissions and the
multi-stakeholder roundtable consultation (see list to the right).
The SDG Industry Matrix for Financial Services is the result of a
collective effort involving many colleagues from the UN Global
Compact and KPMG International including:
UN Global Compact
Project Team:
Lise Kingo
Executive Director
Ole Lund Hansen
Head, Leadership Programmes
Parham Gerami
Manager, Global Compact LEAD
Project Lead: [email protected]
KPMG International
Project Team:
Lord Dr Hastings of Scarisbrick CBE
Global Head of Corporate Citizenship
Jeremy Anderson
Global Head of Financial Services
Serena Brown
Senior Manager, Global Development Initiative
Project Lead: [email protected]
The UN Global Compact and KPMG International would like to convey their special
appreciation to the multi-stakeholder roundtable participants which included the KPMG
International Project Team and the UN Global Compact Local Network representative
(Steve Kenzie), as well as the following individuals:
Dr Steve Waygood, Chief Responsible Investment OfďŹcer, Aviva
Paulette Cohen, Vice President, Head of Global Programs, Global Community Investment,
Barclays Plc
Bob Annibale, Global Director of Citi Community Development and Citi Inclusive Finance, Citi
Sir Sherard Cowper-Coles, Group Head of Government Affairs, HSBC Holdings plc
Olivia Darby, Chief Operating OfďŹcer, Capital, Science & Policy Practice, Willis Group
Faye Lageu, Vice President, Business Intelligence, International Cooperative and Mutual
Insurance Federation
James Cameron, Chair of Board and Council, Overseas Development Institute
Kaori Shigiya, Sustainable Finance, Responsible Investment, Oxfam
Gordon Glick, Director of Global Partnerships, Plan International
Peter Harlock, Global Director of Strategy, VisionFund
Butch Bacani, Program Leader, UNEP FI Principles for Sustainable Insurance Initiative
Tom Brown, Global Head of Investment Management, KPMG International
Wei Ng, Financial Services High Growth Markets Lead, KPMG International
SDG INDUSTRY MATRIX â FINANCIAL SERVICES | 48
Produced jointly by: and
DISCLAIMER: The views expressed in the publication do not necessarily represent the views of the United Nations Global Compact and KPMG International. The United Nations Global Compact and KPMG International make no representation
concerning, and do not guarantee, the source, originality, accuracy, completeness or reliability of any statement, information, data, ďŹnding, interpretation, advice or opinion contained within the publication.
The examples have been developed strictly as learning resources. The inclusion of examples in this publication does not in any way constitute an endorsement of the individual companies or their sustainable development policies by the United
Nations Global Compact and/or KPMG International Cooperative.
COPYRIGHT: This document is copyright-protected by the United Nations. The reproduction and distribution of this document for information purposes is permitted without prior permission from the Global Compact OfďŹce. However, neither this
document nor any extract from it may be reproduced, stored, translated, or transferred in any form or by any means (electronic, mechanical, photocopied, recorded, or otherwise) for any other purpose without prior written permission from the
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