sustainability management financial institution rea consult
TRANSCRIPT
Content
• Purpose
• Sustainability Management for Financial Institutions
• About
Jul 2016 REA Consult – Sustainability Management 2
Purpose
Jul 2016 REA Consult – Sustainability Management 4
Having many years of experience with the European finance sector, I want
to personally engage into sustainable development in emerging markets. I
aim at supporting financial institutions to implement an impacting, life
changing financial system for future generations. – Rachel Andalaft, REA Consult
Introducing myself and my mission…
Sustainability Management
Jul 2016 REA Consult – Sustainability Management 6
Monitoring & Evaluation
Sustainability
Climate Change
Diversity Poverty
Social Responsi
bility
Creditworthiness
Reporting
• Rating
• Corporate governance
• Financial Reports
• References
• Standards
• Investors Relations
Financial Institutions look up to development banks as a reference for social responsibility
and sustainability. Such scrutiny requires robust Monitoring & Evaluation and Reporting
systems in place:
Monitoring and Evaluation
Jul 2016 REA Consult – Sustainability Management 7
Sustainability
Poverty Social Responsibility Climate Change
Diversity
Creditworthiness
Sustainability management requires the
structuring of a Monitoring and Evaluation
system, enabling both internal steering and
external promotion
All extracts in reference to benchmarking development banks
Reporting
Jul 2016 REA Consult – Sustainability Management 8
Reporting
Rating
Gover-nance
Fin. Reports
References
Standards
Investors Relations
Sustainability concerns a
wide range of
stakeholders and is the
most transparent
indicator which financial
institutions are held
responsible for
Examples from IDB and EIB
Implementation Process
Jul 2016 REA Consult – Sustainability Management 9
Sustainability Management
Process
Step 1
structure corporate governance
structure standards (UN PRI, Equator
Principles)
Step 2
consolidate decision making
processes
engage risk committees
engage executive leadership
Step 3
align with project selection criteria
have functional Go / No Go
process in place
lessons learned procedure for No Gos
Step 4
implement monitoring process
for ongoing projects
engage risk management
leadership during M&E
Step 5
establish steering committee for
internal reporting
define external reporting goals and
agenda
manage external reporting agency
What to expect
Jul 2016 REA Consult – Sustainability Management 10
Benefits for financial institutions
Revenue growth by developing new
products and markets and by
attracting new social-environmental
businesses
Enhanced risk management through
extended social-environmental due
diligence
Access to both public and private
capital in assisting the organization in
meeting its stock exchange listing
requirements
Cost savings and efficiency through
better-managed organizations
Key success factors
Start simple, but start!
Commitment from upper
management
Close cooperation with risk
management
Lead by example: get employees
involved
Transparency to clients
Ratings, Standards and Benchmark
Jul 2016 REA Consult – Sustainability Management 11
Ratings
Standards
Benchmark
KfW
Oekom
About
Rachel Andalaft
Founder and Consultant at REA Consult
Certified in Mergers and Acquisitions and in Climate&Renewables
Finance by the Frankfurt School of Finance and Management
Industrial Engineering and Management Logistics
(São Paulo University / Stuttgart University)
REA Consult – Sustainability Management 13Jul 2016
Nationality Education Professional experience
Overview on Competencies
REA Consult – Sustainability Management 14Jul 2016
Lenders
Investors
PC/VC
Utilities & Industries
SME (seller side)
Corporate SustainableInvestments
Renewable Energy
Mergers and Acquisitions
Contract and RiskManagement
Finance and Commercial Management
Monitoring, Evaluation & Reporting
Strategy and Rollout
ServicesSectors Clients
REA Consult – Sustainability Management 15
www.rea-consult.com
São Paulo, Brazil | Cologne, Germany
Jul 2016