Presentations - Inaugural Conference with Financial Institutions
Presentations Inaugural ConferenceWith Financial Institutions
Eastern Caribbean Central Bank Headquarters, St Kitts and Nevis 7 November 2019
Banking the Cannabis Sector- Considerations & Challenges
Carrie Nelson, Senior Director AML Advisory
Disclaimer
Please note that the content of this presentation and any related supporting materials are provided for informational purposes only. It is not RBC’s intention to provide you with legal or business advice, but rather to describe risks and mitigating measures as they relate to RBC.
This content is proprietary to RBC.
Legislative Landscape
The Cannabis Act was passed in June 2018 and came into force on October 17, 2018. This legislation creates a framework for legalizing and strictly regulating cannabis in Canada Federal and provincial governments have different responsibilities in terms of oversight and licensing Provincial distribution schemes vary across the country It is important for us to transact only with legitimate and properly licensed Canadian cannabis entities
Canada
Marijuana is illegal in the U.S. at the federal level (schedule 1 drug) , regardless of where and for what purpose it is used Over half of the states in the U.S. have legalized the use of marijuana to some extent despite the fact that it remains federally illegal The inconsistency between federal and state laws, and the uncertainty surrounding possible federal prosecution have resulted in the reluctance of financial institutions to bank this industry As a result of the federal illegality, transactions with U.S. marijuana-related businesses (USMRBs) can be violations of U.S. money laundering laws Preventing and detecting direct or indirect financial interactions with USMRBs is critical to our ability to mitigate U.S. AML risk
U.S.
Caribbean
Several changes are taking place within the Caribbean regions and we will continue to monitor the legislation.
Industry Participants (Canada)
Financial Institutions should set out a risk appetite in order to mitigate the money laundering and reputational risks emanating from the cannabis industry.
Canadian Producers
Canadian Distributors
Others
Licensed
Canadian ancillary businesses (see table below)
Personal clients (e.g. employee, investor, beneficial owner)
Licensed
Licensed
Licensed
Public or government- operated
Type
Public or privately-owned
Unlicensed
Privately-owned
Privately-owned
Unlicensed
Large
Small
Primary Ancillary
Secondary Ancillary
Tertiary
Business that provides products/services that are incidental to the cannabis industry, and are not directly involved in the manufacture, production, distribution and/or sale of cannabis
Business that provides products/services used directly and exclusively in the manufacture, production, distribution and/or sale of cannabis
Business that provides products/services that are not exclusively used in the cannabis industry
Definition
Accessories for consumption (e.g., rolling paper, vaporizers) Fertilizers Lighting Landlords for properties where cannabis is produced Specific cannabis consulting and professional firms
Financial services (e.g., accounting, lending) providers Consulting firms that provide IT, marketing, research services Pre-fabricated, multi-purpose building supplies Caterers Landlords for multi-use properties where cannabis is distributed or used as administrative offices of MRBs
Specific-purpose production supplies (e.g., hydroponics extraction or cultivation equipment) Payment processors exclusive to MRBs Licensors of intellectual property services to MRBs
Examples
Challenges/Risks
Ensure licensing regime implements a comprehensive seed to sale tracking system
Correspondent banks risk appetite may not align with local FI’s risk appetite and industries
Laws and legal ramifications per country-
Transparency on source of funds/activity (downstream clearing/nesting)
Understanding the corporate structure of the cannabis entities
Cost of Compliance – risks may outweighs the reward of sector
Examples of AML Program Controls for Cannabis Entities
ML program controls for cannabis entities should consist of a tailored combination of the following elements :
Enhanced due diligence review for all MRBs (i.e., producers and distributors) at onboarding and periodically thereafter, or upon trigger events, and on ancillary businesses based on a number of risk factors such as proximity to the cannabis industry; including a review of:
Licensing, independent reports and additional information available through Health Canada, which lists violations for various companies
Relevant adverse information
Account activity reviews
Ongoing screening of all client records and transactions to identify illegal cannabis-related transactions
Tailored enhanced transaction monitoring on MRBs and primary ancillary businesses for cash and other payment instruments, as well as screening wire payments involving specific jurisdictions
On a risk based approach, a targeted third-party review by external consultants on MRBs (producers and distributors) and primary ancillary businesses to assist in decision-making at onboarding and periodically thereafter
BANKING MEDICAL CANNABIS:
FARFETCHED OR FEASIBLE
PRESENTER: DERRY WILLIAMS
MANAGING DIRECTOR
BANK OF ST.VINCENT & THE GRENADINES
01 NOVEMBER 2019
MEDICAL CANNABIS GAINS TRACTION GLOBALLY UNITED NATIONS SINGLE CONVENTION ON NARCOTICS DRUG (1972) ARTICLE 4 - GENERAL OBLIGATIONS “THE PARTIES SHALL TAKE SUCH LEGISLATIVE AND ADMINISTRATIVE MEASURES AS MAY BE NECESSARY: SUBJECT TO THE PROVISIONS OF THIS CONVENTION, TO LIMIT EXCLUSIVELY TO MEDICAL AND SCIENTIFIC PURPOSES THE PRODUCTION, MANUFACTURE, EXPORT, IMPORT, DISTRIBUTION OF, TRADE IN, USE AND POSSESSION OF DRUGS.”
ARTICLE 23 ESTABLISHING A LOCAL AGENCY
ARTICLE 28 CONTROL OF CANNABIS PRODUCTION & SALE
STATISTICS
SOME 33 DEVELOPED COUNTRIES AND 15 DEVELOPING COUNTRIES HAVE LEGALISED THE USE OF MEDICAL CANNABIS, WITH MORE COUNTRIES ADVANCING LEGISLATION TO LEGALISE THE USE AND DISTRIBUTION OF SAME. WITHIN THE USA SOME 37 STATES, DISTRICTS AND TERRITORIES HAVE LEGALIZED MEDICAL CANNABIS
ACARICOM INITIATIVE REPORT OF THE CARICOM REGIONAL COMMISSION ON MARIJUANA RELEASED IN 2018
• RECOMMENDS LEGALISATION AND / OR DECRIMINALISING OF CANNABIS
• INDICATES THIS APPROACH WILL REMOVE THE STIGMA, REDUCE THE ILLICIT MARKET TRADE, & REMOVE PROBLEMS RELATING TO PROCEEDS OF CRIME
• CAN PROMOTE ECONOMIC DEVELOPMENT DUE TO THE SIGNIFICANT EARNING POTENTIAL OF MEDICAL CANNABIS
LEGISLATURE GOVERNING THE INDUSTRY MEDICINAL CANNABIS INDUSTRY ACT 2018 ESTABLISHES A MEDICINAL CANNABIS AUTHORITY TO • DEVELOP POLICIES, & GUIDELINES FOR THE INDUSTRY • REGULATE THE CULTIVATION, SUPPLY, POSSESSION & USE OF MEDICAL CANNABIS • CONDUCT REVIEWS OF MEDICAL DOCTORS CERTIFICATES • ISSUE LICENSES TO PARTICIPANTS • OUTLINE ALL PERMISSIBLE ACTIVITIES OF INDUSTRY MEMBERS
ESTABLISHES A BOARD OF DIRECTORS TO
• MONITOR THE ADMINISTRATIVE OPERATIONS OF THE AUTHORITY • ADVISE THE GOVERNMENT ON POLICY DECISIONS
ESTABLISHES A MEDICINAL CANNABIS ADVISORY COUNCIL TO • ADVISE ON THE PROPER USE OF MEDICAL CANNABIS • DIRECT THE RESEARCH OF MEDICAL CANNABIS • DECIDE THE LIST OF QUALIFYING MEDICAL CONDITIONS
BANKING CANNABIS: KEY RISK MANAGEMENT COMPONENTS THE BANKING OF MEDICAL CANNABIS BECAME LEGAL IN SVG WITH THE PASSING OF THE MEDICINAL CANNABIS INDUSTRY ACT (2018). IN THIS VEIN THE BANK DEVELOPED A POLICY ALIGNED WITH THE CONVENTIONS OF THE UN AND THE STIPULATIONS OF THE MEDICINAL CANNABIS INDUSTRY ACT (2018)
BOSVG MEDICINAL CANNABIS INDUSTRY POLICY
• LIST SPECIFIC FUNCTIONS THE BANK MUST PERFORM TO ON-BOARD, MONITOR AND MITIGATE RISKS WHEN DEALING WITH INDUSTRY PARTICIPANTS • FOLLOWS THE THREE LINES OF DEFENCE MODEL • LIST PROHIBITED AND RESTRICTED SERVICES • LISTS WHO IN THE INDUSTRY THE BANK WILL DO BUSINESS WITH • CLEARLY OUTLINES WHEN THE BANK WILL DERISK
BOSVG MEDICINAL CANNABIS INDUSTRY FRAMEWORK
• PROVIDES AN OPERATIONAL OVERVIEW OF HOW THE BANK WILL EXIST WITHIN THE MEDICAL CANNABIS SPACE • SPEAKS TO OUR INTERACTION WITH INDUSTRY MEMBERS, INTERNATIONAL AGENCIES & CORRESPONDENT BANKS • CLEARLY DEFINES THE ON-BOARDING PROCESS AND STATES AT WHAT LEVEL APPROVAL FOR TRANSACTIONS WILL BE DONE • IDENTIFIES THE RISK IN THE INDUSTRYAND HOW THE BANK PLANS TO MITIGATE THEM
CORRESPONDENT BANKING & DERISKING
• BIGGEST CHALLENGE WAS DETERMINING WHO WOULD OFFER BOSVG CORRESPONDENT BANKING TO FACILITATE THE INDUSTRY
• ONGOING RISKS ASSOCIATED WITH USA BANKS WHO MAY WANT TO DERISK BECAUSE MEDICAL CANNABIS IS ILLEGAL AT THE FEDERAL LEVEL
• SHARED OUR POLICY & FRAMEWORK WITH ALL OUR CORRESPONDENT BANKS TO PROVIDE SOME LEVEL OF COMFORT TO THEM
• CANADIAN COUNTERPART WAS PLEASED WITH OUR DIRECTION AND THE CONTENTS OF OUR POLICY AND FRAMEWORK, INDICATED THEY WOULD OFFER US BANKING SERVICE IN CANADIAN DOLLARS ONLY
• CONSTANT ENGAGEMENT OF OTHER KEY REGULATORS INCLUDING THE MEDICINAL CANNABIS AUTHORITY, GOVERNMENT OF SVG, AND OTHER GOVERNMENT REGULATORS INCLUDING THE FINANCIAL SERVICES AUTHORITY
• ENGAGED OUR REGULATOR AND RECEIVED A COMMITMENT AND AN UNDERSTANDING FROM THEM REGARDING OUR BANKING MEDICAL CANNABIS
OPERATIONAL STRUCTURE RISK MANAGEMENT METHODOLOGY
• SEPARATE UNIT WAS FORMED TO TREAT SOLELY WITH MEDICAL CANNABIS. THIS WAS DONE TO AVOID CONTAMINATION WITH THE OTHER BANKING SERVICES WE OFFER. THERE ARE 3 FULL TIME STAFF INCLUDING A SENIOR OFFICER WHO REPORTS DIRECTLY TO SENIOR MANAGEMENT
• AS A SECOND LINE OF DEFENCE ANOTHER KEY ROLE WAS CREATED IN THE COMPLIANCE DEPARTMENT TO MONITOR SPECIFICALLY THE ACTIVITIES OF THE SECTOR
• THE INFORMATION SYSTEM HAD TO BE SPECIFICALLY REDESIGNED TO FACILITATE ENHANCED MONITORING OF THE PORTFOLIO AS WELL AS TO ENSURE THAT ALL EDD MEASURES AND PROHIBITIONS WERE CAPTURED AND ENFORCED
• DUE DILIGENCE IS PERFORMED BEFORE ACCEPTING WIRE TRANSFERS
• PROHIBITIONS AND EXCEPTIONS ARE CLEARLY OUTLINED TO THE CUSTOMER IN THE FORM OF AN OFFER LETTER
• THE BANK, AT THIS TIME, HAS NOT DONE ANY ON-BOARDING OF LICENSE HOLDERS BUT PAYMENTS FOR LICENSES ARE BEING PROCESSED THROUGH OUR CANADIAN CORRESPONDENT
THE POCACONUNDRUM THE ISSUE
WILL THE BANK BE ENGAGING IN MONEY LAUNDERING IF THEY FACILITATE THE MOVEMENT OF PROFITS EARNED IN SVG TO ANOTHER JURISDICTION WHERE MEDICAL CANNABIS REMAINS ILLEGAL?
• THE BANK IS COGNIZANT OF THE VARIOUS LEGISLATURE THAT GOVERNS EACH COUNTRY AND WIL OPERATE WITHIN THE LAW
• A UNIQUE SITUATION HAS DEVELOPED WITH CITIZENS OF THE USA BECAUSE OF THE QUAGMIRE THA EXISTS BETWEEN STATE AND FEDERAL LAW
• A LEGAL OPINION ON BANKING USA CITIZENS IS BEING SOUGHT AS WE ARE NOT CERTAIN AS TO WHETHER USA CITIZEN WHO ARE OWNERS, SHAREHOLDER, DIRECTORS, & OR BENEFICIAL OWNERS CAN OPERATE IN OUR INDUSTRY WITHOUT BEING IN CONTRAVENTION OF ANY USA LEGISLATURE
• AT THIS TIME WE ARE NOT OFFERING BANKING SERVICES TO USA CITIZENS
WHAT ROLE CAN THE ECCB PLAY
• CONDUCT MORE RESEARCH REGARDING THE MEDICAL CANNABIS SECTOR IN ORDER TO PROVIDE STANDARDIZED GUIDANCE TO ECCU BANKS
• WORK WITH REGIONAL AND CORRESPONDENT BANKS, PARTICULARLY THOSE IN THE USA, IN AN EFFORT TO ENSURE THAT ALL PARTICIPANTS ARE KEPT INFORMED ABOUT CHANGES IN BANKING MEDICAL CANNABIS
• A LEGAL OPINION SHOULD BE SOUGHT FROM A USA LAWYER BY THE ECCB ON THE MATTER OF USA CITIZENS ENGAGING IN THE MEDICAL CANNABIS INDUSTRY
SAFE & STATES ACT SECURE AND FAIR ENFORCEMENT BANKING ACT
• INTRODUCED ON 7 TH MARCH 2019 TO PREVENT FEDERAL BANKING REGULATORS FROM SANCTIONING BANKS FOR WORKING WITH LEGAL CANNABIS BUSINESS, EMPLOYEES AND ANCILLARY SERVICE PROVIDERS.
• PASSED THE HOUSE OF REPRESENTATIVES
• REFERRED TO THE SENATE COMMITTEE ON BANKING, HOUSING & URBAN AFFAIRS ON 26 TH SEPTEMBER 2019
STRENGTHENING THE TENTH AMENDMENT THROUGH ENTRUSTING STATES ACT
• INTRODUCED ON 4 TH APRIL 2019 TO AMEND THE CONTROLLED SUBSTANCES ACT TO PROVIDE FOR A NEW RULE REGARDING THE APPLICATION OF THE ACT TO CANNABIS.
• A SIMILAR MEASURE S.1028 INTRODUCED IN THE SENATE
• BOTH MEASURES ARE AT COMMITTEE STAGES FOR REVIEW
FEASIBLE OR FARFETCHED
• BANKING MEDICAL CANNABIS IS LEGAL IN SVG
• AN INTERNATIONAL BANKING RELATIONSHIP EXISTS WITH CANADA
• EURO CLEARANCE WILL BE PURSUED IN 2020
• A MAJOR IMPEDIMENT IS THE POSSIBLE DERISKING BY USA CORRESPONDENT BANKS
• THE BANK HAS MULTIPLE USA CLEARINGS AND IN THE EVENT THAT ANY ONE DERISKS WE WOULD BE IN A POSITION TO SALVAGE THE RELATIONSHIP WITH THE OTHER BANKS
• THE BANK IS ALSO PAYING ATTENTION TO THE ONSITE VISITATION/ COMPLIANCE QUESTIONNAIRE BY OUR CORRESPONDENT BANKS TO MONITOR THEIR REACTIONS FOR ANY RED FLAGS THAT MAY SUGGEST THAT WE REVERSE COURSE ON BANKING MEDICAL CANNABIS
THANK YOU!!
Retail Central Bank Digital Currency Operational Considerations
NOVEMBER 7, 2019
John Kiff, Monetary & Capital Markets
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INTERNATIONAL MONETARY FUND
The views expressed herein are those of the author and should not be attributed to the IMF, its Executive Board, or its management
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INTERNATIONAL MONETARY FUND
A Money Matrix (An Alternative to the BIS “Flower”)
CBDC Retail
Cash
Central Bank issued
Legal Tender
Optional
Optional
Optional
Synthetic CBDC
Central Bank-backed
Asset- Backed Stablecoin s (e.g. USDC)
Fiat Pegged
Payment Crypto Assets (e.g. BTC)
Peer to Peer (1)
Programmable
(1) Person to person, bank to bank, merchant to merchant, etc. (2) Adrian (2019)
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INTERNATIONAL MONETARY FUND
Current Projects (as of Nov 2019)
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4
INTERNATIONAL MONETARY FUND
Central Bank CBDC Risk Landscape
Strategy & Policy Risks
Financial Integrity Monetary Policy Financial Stability Financial Inclusion Payment Systems Consumer Protection
Fraud Legal IT Infrastructure Cybersecurity Culture, Behavior
Reputational Risks
Liquidity Market Credit
Outsourcing / 3 rd party Governance, Decision- Making Process, Project Mgmt
Financial Risks
Operational Risks
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INTERNATIONAL MONETARY FUND
CBDC Operating Models - 1 From a high level, the actual work of issuing CBDC is quite like that involved in the management of physical cash
C ASH C URRENCY - T RANSFER OF P OSSESSION
CBDC - T RANSFER OF P OSSESSION
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INTERNATIONAL MONETARY FUND
Putting the Implementation Process All Together
Financial Integrity, Monetary Policy, Financial Stability, Financial Inclusion, Consumer Protection, Economic Growth, Efficiencies
Driving Elements
1. Key Principles
2. Country-Specific Design Options
2. IMPLEMENTATION
User-centered design Cybersecurity Flexibility
Degree of anonymity Identity management Availability
Process, roles, responsibilities Project management Cybersecurity
Implementation Considerations
Interest and fees Programmability
Central Bank Legal Framework (incl. Legal tender designation)
Governance, Organization, Risk Management (incl. cyber risks) Regulation and Supervision (incl. third-party service and wallet providers) Infrastructure (incl. IT backbone, electricity, internet coverage)
Foundational Elements
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INTERNATIONAL MONETARY FUND
Questions?
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INTERNATIONAL MONETARY FUND
30 th Annual Conference with Commercial Banks
7 November 2019
Banking & Finance in a Period of Climate Change
Stephen Lander Presented by :
CONFIDENTIAL | View > Header & Footer for info
View > Header & Footer for date
State of Play
‘We need banking but we don’t need banks anymore’ – Bill Gates, 1997
2
State of Play
Technology-enabled Utility through Iterative Design
Innovation
Integration
Adaptation
3
State of Play
Inflection Point:
• New Rules & Regulatory Requirements
Financial Crisis 2007/08
• Innovation in other industries
4
State of Play
Iphone
Air BnB
June 2007
Uber
August 2008
March 2009
5
Climate Change
Innovative use of technology in design and delivery of financial services
FinTech
Block Chain
P2P Lending
Crowd Funding
Big Data
AI
6
Climate Change
Yu’E Bao’s automated savings platform
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Climate Change
First Principles Design
Netflix
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Climate Change
Utility
Back-end processing
Relevance
Iterative Design
Loss of consumer- facing market
First Principles Design
9
Climate Change
End: Thank You
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Banking and Finance in a Period of Climate Change Climate Finance Advisors
Presentation prepared for the Eastern Caribbean Central Bank Inaugural Conference with Financial Institutions November 7, 2019
Climate Finance Advisors, BLLC
Boutique climate finance firm with practitioner expertise in the following:
Develop Climate Investment Strategies
Appraise & Structure Climate Smart Investments
Mobilize, Catalyze, Leverage Public & Private Capital
Incorporate Climate Risk into Financial Products, Services, & Operations
2
CLIMATE FINANCE ADVISORS, BLLC
ECONOMIC IMPACTS OF CLIMATE CHANGE
2°C
1.5°C
Global damages up to US$69 trillion by 2100
• For every 1°C of warming, GDP growth falls by 1.2% • 15%–25% reductions in per capita output by 2100 for warming above 2°C
Sources: IPCC 2014, Moody’s Analytics, 2019; Burke, Marshall, et al, Nature, 2018
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CLIMATE FINANCE ADVISORS, BLLC
CLIMATE VS. ENVIRONMENTAL RISK
Climate Risk
E&S Risk
Although there are linkages, the concept of "climate risk" is distinct from environment, social and governance (ESG) risk, insofar as: • ESG risk approaches tend to analyze the project’s impact on the environment , communities • Climate risk approaches should analyze the environment/climate impacts on the project ’s viability. Many institutions continue to see climate change as an ESG issue, which fundamentally mischaracterizes the nature of the risks it poses. Climate risk is contextual, location specific, and dependent on the time horizon considered.
Temperature Patterns
Emissions
Droughts
Water Transportation
Polution
Precipitation
envioronment
Construction
Sea level rise of Financial Activity
Impact to Operation
Impact of the Project on the
Damage to habitats
Extreme Weather
Climate Risk is a Credit Risk
CLIMATE RISK PUTS GREATER PRESSURE ON ECONOMIC AND SOCIAL STABILITY
We have locked in enough warming that impacts from climate change are being realized.
Warming = Climate Impacts (Acute and Chronic) = Financial Impacts
• Greater pressure on governments • Greater pressure on public finance/public budgets • Capital flight (human, economic, financial).
Economic, Financial Implications Security & Migration
Vulnerable Communities
Social Stability
By increasing climate risk awareness and risk management will reduces community vulnerability to climate change.
Account for and manage climate risks to ensure economic and social stability
Increased opportunities to address and invest in resilience
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CLIMATE FINANCE ADVISORS, BLLC
WHAT IS CLIMATE RISK IN THE FINANCIAL SYSTEM?
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CLIMATE FINANCE ADVISORS, LLC
SPECIFIC: CLIMATE RISK MANIFESTING ACROSS INDUSTRY
Ag, Forestry, Fishing Mining Construction Manufacturing Retail Financial Services Industries
7 CLIMATE FINANCE ADVISORS, LLC Source: Cicero, Shades of Climate Risk, 2018
PROPAGATION CHANNELS OF CLIMATE RISKS TO THE REAL ECONOMY AND THE FINANCIAL SECTOR
Source: Climate Finance Advisors adapted from CICERO (2017), “Shades of Climate Risk”
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CLIMATE FINANCE ADVISORS, BLLC
BREAKING DOWN CLIMATE RISKS
Impacts Value at Risk (VAR)
Interested Parties Financial Institutions Investors Public balance sheet Public Capital
Definitions Hazard: an event or condition that has the potential to cause harm
Data Analytics Ongoing Analysis
Vulnerability: conditions that increase susceptibility, damages or impact of hazards Exposure: the total stock of assets potentially impacted by hazards (e.g. project specific, corporate wide, supply chain, regional disruption, economy-wide)
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CLIMATE FINANCE ADVISORS, BLLC
KEY CONCLUSIONS: PROMOTING SYSTEMIC CHANGE TO EMBED CLIMATE RISK AND RESILIENCE INTO POLICY AND ACTION
Addressing Climate Risk key for both Policymakers and Institutions
Beyond Disclosure: Focus on Risk Management
Risk also means Opportunity
Financial Institutions & Insurance (regulated, unregulated, securities)
Financial System Governance (policy and regulation)
Developing approaches to manage climate risks across the economy, financial system is in the interest of public policy and financial institutions alike
Requires consistent metrics, methodologies and scenarios
Addressing climate risk in financial decision making and policy will support greater returns, sustainability
Quantifying climate risk key for risk management and investment decision making
Clear financial policy, regulation, standards, metrics and incentives can help ensure consistent approaches
Adaptation and resilience investments, products and services will generate trillions of dollars in new investments
Managing climate risk multifaceted, includes risk transfer products (e.g. insurance)
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CLIMATE FINANCE ADVISORS, LLC
EXAMPLES OF CLIMATE RELATED FINANCIAL POLICY AND REGULATIONS IN PLACE*
Fiscal and Monetary Policy
Standards and Metrics
Disclosure and Reporting
Prudential
• Securities disclosure guidelines • ESG reporting (particularly emissions, “footprinting”) • Energy usage/ benchmarking requirements (e.g. building EE benchmarking)
• Bank stress testing • Insurance stress testing • Capital adequacy/ provisioning easement linked with climate relevant investment
• Taxonomies for climate investments (definitions, standards) • Green Bond Standards • Linkages to industry
• Carbon Tax, Pricing • Clean energy incentives, tax credits • Green credit allocation/loans • Green bond incentives • Green funds, banks
standards (e.g. green buildings)
Risk Assessment/Management
Information and Market Supporting Mechanisms
Economic Stimulation
*Examples include policies and regulations which have been enacted, but variabilities exist based on country context (e.g. some are connected to larger sustainability objectives, where climate is one component).
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CLIMATE FINANCE ADVISORS, BLLC
HOW WE INVEST MATTERS
• Financial Institutions play a pivotal role in scaling up and directing finance. • Costs of climate risk may undermine performance of all assets/investments. • Adaptation and “Resilient” Investments/Investment in Resilience needed now more than ever.
Two Simultaneous Actions Needed
Seeking Out and Scaling Up Low Carbon, Climate Resilient Investment (LCR)
Addressing and Reducing Risks Posed by Climate Change
Climate Risk
LCR Investment
• Climate risk is a credit risk • Pr ice-in mal -adaptat ion • Incent ivize Resi l ience
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CLIMATE FINANCE ADVISORS, BLLC
Thank You
Stacy Swann, CEO – Climate Finance Advisors Email: sswann@climate-fa.com
Twitter: StacySwann Skype: StacySwann
Climate Finance Advisors, BLLC
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