Workshop on Sustainability in the Financial Services Sector
14th November 2005

Speakers:

• Habiba Al Marashi, Chairperson EEG
  
• Mr Nasser Al Shaali, Chief Operating Officer, Dubai International Financial Exchange
  
• Mr. Deepak Khanna, Chief Investment Officer, International Finance Corporation
  
• Mr. Ahmed Abbas, CEO, the Liquidity Management Centre, Bahrain and Board Member of Tejoori
  
• Mr. Sulaiman Al Mazroui, Chief Manager Group Affairs, and CEO of Al Tomooh
  
• Mr. Zillay Ahmed Head of Business Excellence of National Bank of Abu Dhabi
  
• Ms. Hope Sherwin, Corporate Social Responsibility Advisor, EEG
  

Emirates Environmental Group hosted a workshop in November 2005 on sustainability and CSR in the Financial Services Sector.

The event addressed a range of issues including the increasing risks to capital markets associated with climate change and unpredictable weather patterns, which are impacting the insurance industry in particular. Chairperson Habiba Al Marashi quoted a United Nations report as saying, "worldwide economic loses due to natural disasters appear to be doubling every 10 years and, on current trends, annual losses will reach almost $150 billion in the next decade", something that we are already witnessing in the wake of hurricane Rita and Katerina.

Mrs Al Marashi also stressed the fact that financial risk and opportunity are not restricted to the areas of climate change. "CSR is no longer seen as an add on but rather as an indicator of good management and long term business success. The fiduciary duty, which is the legal duty of investment managers to secure returns for their clients, is increasingly requiring consideration of non-financial risks and opportunities that are material to a company's performance. Credit rating agencies are also taking social, environmental and governance issues into consideration."

This workshop was an important event for all those who are interested in environmental issues, and particularly financial bodies, as it addressed how environment is being factored into project finance, banking and other financial transactions - something that could really pave the way for change on the environmental stage. Around 50 delegates from government, business and academia attended the event held at the JW Marriott Hotel Dubai.

In this region issues of water and energy security are likely to start effecting the financial markets. In an increasingly globalised world companies here cannot assume that they are immune from the concerns that preoccupy those in other parts of the world. Global warming is not constrained by national borders and nor are its effects. Companies need to begin tackling them now if we are not to suffer their consequences later.

In urging financial services institutions in the UAE to act, Mrs Al Marashi emphasised the role of that industry, "the Financial Services industry is the lifeblood of all the other industries, fuelling and powering companies to operate. In this sense they have an enormous responsibility to ensure that funds are well spent, that they go to companies, which not only secure a profit but also do so in way that benefits society and the environment".

The keynote speech was given by Mr. Nasser Al Shaali, Chief Operating Officer, Dubai International Financial Exchange on behalf of the Director General of the Dubai International Financial Centre Authority (DIFCA), Dr Omar Bin Sulaiman.

Also presenting at the event was Dr. Ahmed Abbas, CEO of the Liquidity Management Center, Bahrain and Board Member of Tejoori. His presentation addressed meeting global standards in the financial services industry in the context of Sharia compliant investment.

Chief Investment Officer of the International Finance Corporation (IFC) regional office in Dubai, Mr. Deepak Khanna, presented a global perspective on sustainable finance and the role of the IFC in shaping socially and environmentally responsible practices. In particular he highlighted the development of the Equator Principles for project finance.

Emirates Bank was represented by Mr. Sulaiman Al Mazroui, Chief Manager Group Affairs, and CEO of Al Tomooh, a scheme of Emirates Bank for promoting young entrepreneurs in the UAE. Mr. Al Mazroui presented a paper on the role of Al Tomooh in addressing employment in the UAE, as part of the social responsibility of Emirates bank

Mr. Zillay Ahmed Head of Business Excellence of National Bank of Abu Dhabi presented a case study of NBAD's commitment to environmental management and sustainability.

Corporate Social Responsibility Advisor at EEG, Hope Sherwin gave an introduction to CSR and the key issues facing the financial services industry, including the rise of socially responsible investment (SRI), international regulation, and the long term performance of stocks.

Emirates Environmental Group has been committed to promoting sustainability in the financial services sector for some time. Last month Chairperson Habiba Al Marashi and CSR Advisor Hope Sherwin travelled to New York to attend a conference on this subject hosted by the United Nations. The summit attracted around 500 bankers, investors, financiers, academics and NGOs from around the world to discuss the importance of sustainability in finance.