International
Workshop on Improved Investment Analysis Tools:
Links
to Sustainable Development
Lisbon,
Portugal >||< 19 - 21
November 2001
AGENDA:
The following agenda contains links to all
presentations that were held during the workshop. For shortcuts to
the naming modules you might also click on the links below.
TRAINING
MODULES
(Abstracts and full text)
¨
UNEP
WORKSHOP - PREVENTION IS BETTER BUSINESS
¨
UNDESA
WORKSHOP - APPRAISAL METHODOLOGIES FOR SUSTAINABILITY IN FINANCIAL
MARKETS
¨
IFC
WORKSHOP - COMPETITIVE ENVIRONMENTAL ADVANTAGE: MANAGING
ENVIRONMENTAL RISK IN THE EMERGING CAPITAL MARKETS
AGENDA
19 November 2001 - Monday
9:00
- 9:30 Opening Session
¨
Mr. Augusto
Novais – Vice President
National Institute of Industrial Engineering and Technology (INETI)
¨
Mr. Rui Gonçalves Soares – President
Institute for the Support to Small & Medium Sized Enterprises and to
Investment (IAPMEI)
¨
Mr. João Correia Neves – Director
General-Directorate for Industry (DGI), Ministry of the Economy
¨
Dr. Constança
Peneda – Director
Centre for Sustainable Business Development
9:30
- 10:45 Introduction
¨
Division for
Sustainable Development, United Nations Department of Economic and Social
Affairs (UNDESA/DSD)
¨
Division of
Technology, Industry and Economics, United Nations Environment Programme
(UNEP/DTIE)
¨
International
Finance Corporation (IFC)
11:15 - 12:00
Financial Institutions in action
¨
Mr. Maximiano
Martins – Portuguese Economic Operational Program (POE)
¨
Mr. Ian Crosby
(EBRD Consultant) – Barriers to Commercial Lending for Cleaner
Production Projects
2:00 - 8:00
Introduction to concepts
¨
Sustainability
in companies – case studies (Dr. Constança
Peneda)
¨
Cleaner
Production Concepts (UNEP/DTIE)
¨
Environmental
Management Accounting (UNDESA/DSD)
¨
Risk
Management (IFC)
20 November 2001 - Tuesday
8:30 - 12:30 Participants
are divided into 2 groups and training workshops are held on a rotating
basis.
¨
Group 1
– Prevention is Better Business: Profiting from
Funding CP Investments (UNEP/DTIE)
Training Module » ABSTRACT
» FULL
TEXT
¨
Group 2
– Appraisal Methodologies for Sustainability in
Financial Markets (UNDESA/DSD)
Training Module » ABSTRACT
» Stakeholder
Value Added
» Environmental
Shareholder Value
» Empirical
Evidence
2:00 - 8:00
Continuation
of training workshops.
¨
Group 1
– Environmental Risk Management for Financial
Institutions (IFC)
Training Module » ABSTRACT
» FULL
TEXT
¨
Group 2
– Prevention is Better Business: Profiting from
Funding CP Investments (UNEP/DTIE)
Training Module » ABSTRACT
» FULL
TEXT
¨
Signing Ceremony of the UNEP Initiative on
Financial Institutions and the Environment
|
TRAINING
MODULES
Trainers
·
Mr. Martin Bennett, Principal Lecturer, University of
Gloucestershire, UK
·
Mr. Ari Huhtala, Project Manager (Cleaner Production
Financing), UNEP/DTIE, Paris
Over
the last years the United Nations Environment Programme (UNEP) has been actively
promoting the concept of cleaner production. Demonstration projects have
highlighted that money or resources spent on cleaner production and cleaner
processes can be recovered very quickly, while also provide major
cash savings for the future. Adopting preventive strategies in
investment decision making processes can be better business than dealing with
environmental concerns at the end of the production process.
A UNEP project
‘Strategies and mechanisms for promoting cleaner production investments in
developing countries’ has formulated training programmes which have been
tested in five demonstration countries and will soon be made available for wider
adaptation and world-wide use. In these programmes, the concepts and techniques
of cleaner production will be explained, but more importantly the practical experiences
already gained will be shared.
The training modules cover
broadly the following:
·
Introduction to cleaner production concepts and
practice
·
Introduction to the capital budgeting process
·
Identification of costs of manufacturing inputs, waste
management and less tangible items
·
Profitability assessment
·
Cash flow management
·
Preparation of an investment proposal to present to a
financier
·
Sourcing of financing
·
Post-funding implementation and management
The main target groups for these courses are:
·
Industry and commerce
·
Banks and financial institutions
·
Government/state ministries and agencies (including
investment promotion)
·
Media
·
Technical assistance providers and consultants
·
Educational institutions
These
modules can be combined and adapted in various lengths to the benefit of various
target audiences, as may be required. Participants will be provided with guides
and checklists to help them apply the techniques in the own organisation
and work. Material will also be provided on the forthcoming UNEP/DTIE training
Handbook and modules which will be published in early 2002.
The purpose of the workshop in Lisbon is to
bring out the highlights of these training programmes which are particularly
relevant to experienced financiers.
The
workshop will demonstrate how by internalising preventive approaches into the
due diligence process, the financial and economic attractiveness of ecologically
sustainable investments can be clearly demonstrated.
The workshop will cover the following:
·
Basic concepts of preventive environmental approaches
·
Cleaner production versus end-of-pipe
·
Cleaner production: benefits and barriers
·
The cost of manufacturing inputs
·
The cost of waste and waste management
·
Less tangible costs
·
Classifying environmental management options
Process profitability
assessment and a related case study
UNDESA WORKSHOP - APPRAISAL
METHODOLOGIES FOR SUSTAINABILITY IN FINANCIAL MARKETS
Trainers
·
Dr. Stefan Schaltegger & Dr. Frank Figge - Center for Sustainability
Management (CSM) at the Chair for Environmental Management, University of
Lueneburg, Germany (Lead)
·
Ms. Kathrin Klaffke - The Institute of Market, Environment, Society, Germany (IMUG)
A.
Goal of this training module
The goals of this
session include:
·
Present
an overview of the market for sustainable investment products
·
Introduce
the participants to the links between environmental, social and economic
performance of companies with special consideration on environmental accounting
and financial analysis
·
Present
the participants with the necessary tools to improve current financial analysis
methods in order to take advantage of the potential benefits this link between
economic, social and environmental performance of companies.
B.
Structure of the training session
1.
Markets (IMUG)
1.1
Market Situation
The consideration of
social and ecological criteria when it comes to making financial investments has
gained momentum in recent years. This
first part of the training provides an overview of the various types of Socially
Responsible Investment (SRI) (direct co-ownership, savings books, investment
funds, life insurances) as well as the different nature and product philosophies
of SRI funds (environmental technology funds, sustainability funds etc.).
Their differences and respective market shares are highlighted and the
underlying reasons for the development of these social-ecological financial
products are pointed out. Furthermore,
information on the market volume and potential of SRI funds in several European
countries and the US are provided.
1.2
Recent surveys on private investors
What are the needs and
demands of private investors? How much do they know about SRI? These were the
key questions to be answered by outlining the results of a survey carried out by
IMUG in 2001 in Germany as part of a research project entitled “Investors’
Decisions as Determinants of Sustainable Business Management” as well as the
results of similar surveys in other countries in the European Union as well as
in North America.
2.
Tools of Sustainable Finance (CSM)
2.1
Sustainable Value Creation
The market for
environmental and sustainable investment can be an important driver for the
promotion of sustainable development. However,
transparency about criteria, methods and products is a basic precondition for
the further development of the market. If
financial intermediaries are to include environmental and social aspects in
their investment decisions they will need tools to assess environmental and
social information. These tools will have to meet three expectations.
(1)
They will need to identify companies which show simultaneously a good
environmental, social and economic performance and satisfy thus the complimentary character of sustainable
development.
(2)
The tools will have to be efficiency-oriented.
Only assessment tools which take into account eco-efficiency and social
efficiency take into account the complimentary character of sustainable
development.
(3)
They have to be based on established assessment tools and techniques to find
acceptance by mainstream financial actors.
With the concepts of
“environmental shareholder value” and “stakeholder value” the training
module presents two assessment methods which apply net present value approaches
to environmental and social efficiency.
2.2
Evidence
There are many theoretical reasons why a good
environmental and social performance should enhance the financial performance of
companies. This part of the
training module goes beyond the theory and looks at the evidence, of whether a
good environmental and social bottom line has helped companies to be financially successful and whether this in turn can improve the
bottom line of financial institutions. It
analyses the various studies that look at the correlation between environmental,
social and financial performance. The
review includes an analysis of their methodology (e.g.
event studies vs. correlation
studies; performance of “green” funds vs.
performance of traditional investment funds) and their results.
Furthermore it discuss the significance of these results and the
(methodological) problems associated with these studies (e.g.
data availability; correlation vs. causality;
appropriate indicators for sustainability performance etc.).
ifc
workshop - COMPETITIVE ENVIRONMENTAL ADVANTAGE: MANAGING ENVIRONMENTAL RISK IN THE EMERGING CAPITAL MARKETS
Trainer:
Mr.
Dan Siddy
Environment and Social Development Department
International Finance Corporation (IFC)
Abstract:
Loss
of permits. Community protest. Market collapse. Product liability. Environmental
risk has demonstrated potential to affect critically the viability of
investments in the productive sector. What is now emerging is the impact on the
financial sector – from credit risk, to liability for the clean-up of
contaminated collateral, to reduced access to international capital.
Two
responses to the risk have characterized the financial sector. The first is
underestimation – investment in projects with unaddressed liabilities
resulting form social and environmental issues. The second, more recent, is
overestimation – the rejection of potentially profitable investments.
A
third approach exists, to transform this risk into opportunity. The objective of
this workshop is to provide a set of cost-effective techniques for financial
institutions to assess and manage environmental risk; techniques that deliver
value-adding services to the client, and provide a sustainable competitive
advantage for the financial institution.
Drawing
on its experience with the senior management of over three hundred financial
institutions across more than thirty emerging markets, IFC present a training
that equips the participants to complete three tasks:
·
Assess the
strategic rationale for environmental management
·
Perform
cost-effective environmental risk management of investments
·
Implement
value-adding environmental techniques institution-wide
Key
modules for this training include:
1.
Adding value to the customer
·
Assessing
project-related social and environmental risk
·
Stakeholder
analysis
·
Identifying
eco-efficiency opportunities
·
Transferring
residual risk
2.
Capturing value for the institution
·
Environmental
marketing and positioning
·
Adjusted loan
and fees pricing
·
Environmental
investment opportunities
·
Accessing
finance
3.
Implementing change
·
Analysing
performance gaps
·
Identifying
strategic initiatives
·
Motivating
internal decision-makers
·
Identifying
system wide areas of resistance
·
Intervening to
reduce resistance
·
Adjusting
internal processes
Copyright
© United Nations Division for Sustainable Development - 16/01/2002.
