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The investment community has by and large started to embrace the risks and opportunities presented by climate change. This section provides some example of specific climate change policies and/or initiatives adopted by investors. If you have any relevant research or initiatives you wish to be highlighted in this section, please email webmaster@asria.org

ABN AMRO
http://www.abnamro.com/com/about/sd/sd.jsp

ABN AMRO addresses climate change according to three themes:

1. Business propositions

  • Trading and clearing of climate derivatives and carbon credits on the European exchanges
  • Development of new lending products backed by emissions allowances
  • Launch of a private equity fund for investments in renewable energy and clean technology in 2006.

2. Contributions to the public debate

3. Minimising its impact on the environment

  • All Dutch offices and head office locations use 100% green energy
  • The Managing Board has approved the implementation of a global energy efficiency programme, targeting a reduction of 10% in group-wide energy consumption by 2008 (compared with 2004), and with a proportionate reduction in CO2 emissions

AIG
http://phx.corporate-ir.net/phoenix.zhtml?c=76115&p=irol-govresponsenviron

American International Group, Inc. (AIG) is a leader in insurance and financial services with operations in more than 130 countries and jurisdictions. It has undertaken several initiatives geared towards preserving the quality of the environment. These projects focus on energy conservation, remediation, sustainability, environmental risk management, recycling, healthy work environments, and climate change.

http://media.corporateir.net/media_files/irol/76/76115/aig_climate_change_updated.pdf.

Allianz
http://www.allianz.com/azcom/dp/cda/0,,1256332-44,00.html

Allianz has undertaken numerous initiatives concerning climate change and; In 2005, the Group set up the Climate Core Group to develop a climate change strategy with the aim of exploiting opportunities concerning renewable energy strategically across the Group.
http://www.allianz.com/Az_Cnt/az/_any/cma/contents/1227000/saObj_1227923_Climate_Change_Strategy.pdf

Association of British Insurers
http://www.abi.org.uk/climatechange

This webpage provides an overview of ABI's work on climate change. It sets out how the insurance industry is addressing the risks and opportunities of climate change, and working with the Government and other stakeholders to ensure that climate risks are effectively managed. The webpage includes key ABI research and policy papers on climate change.

Citigroup
http://www.citigroup.com/citigroup/environment/climatechange.htm

Citigroup is addressing climate change by:

  • Tracking its energy use and indirect CO2 emissions;
  • Purchasing renewable energy for its operations;
  • Reporting on CO2 emissions from power projects it finances; and
  • Business initiatives that include new investment and product solutions.

Through its Sustainable Development Investment Program (SDIP), Citigroup targets investments to a number of sectors that have clear climate benefits. The SDIP program is run through Citigroup's private equity business and includes a focus on growth capital opportunities in renewable energy, sustainable forestry, and clean technology.

Citigroup offers a climate friendly mortgage product, the MyCommunityMortgageTM Energy Efficient Mortgage (EEM), targeted at low- and middle-income consumers. The EEM product recognizes that energy-efficient homes cost homeowners less to operate than a standard home. The energy related savings are counted as income for the borrower's qualifying ratio.

Credit Suisse Group
http://www.credit-suisse.com/responsibility/en/strategies.html

In 2004 CSG Sustainability Affairs developed a new Sustainability Strategy for the Group which was presented to the Board of Directors and the Group Executive Board Committee. It defines the targets for the development of sustainability management within CSG as well as the governance structure for the implementation of the sustainability strategy.

It is intended that a group-wide greenhouse gas neutrality can be achieved incrementally by 2012. The first substantial step was the launch of a pilot project by Real Estate and Provider Management in order to achieve greenhouse gas neutrality of all operations in Switzerland, including air travel for the year 2006.

Daiwa Securities
http://www.daiwa.jp/ir/english/corporate/corporate_08.cfm

In March 2005, Daiwa Securities SMBC Principal Investments Co. Ltd., added US$5 million to its investment in the Community Development Carbon Fund, one of the World Bank's carbon funds (US$2.5 million investment in July 2003, for a total investment of US$7.5 million). In July 2005, the Community Development Carbon Fund's La speranza Hydroelectric Project was approved as a clean development mechanism (CDM) by the CDM Executive Board at a meeting in Bonn, Germany.

Domini Social Investments
http://www.domini.com/Social-Screening/Environment/Special-Cases/case_climate_change.doc_cvt.htm

In considering this issue with relation to the Domini 400 Social Index,SM KLD is currently taking a conservative approach. Since the issue directly or indirectly affects virtually all companies, and since international and national public policy decisions will play a predominant role in how the world grapples with these challenges, to date, KLD has opted not to exclude specific companies from the Index solely on the basis of the relevance of this issue to their operations.

KLD also recognizes that those energy production, energy generation, and transportation firms that are at the heart of the problem will also be those that can most reasonably be expected to be part of the solution. Therefore, moving forward, KLD will seek to do two things:

  • Avoid companies that are the worst contributors to global warming.
  • Seek out companies that are doing the most to promote solutions.

FE Clean Energy Group
http://www.fecleanenergy.com

FE Clean Energy Group, Inc. is a private equity investment firm that manages funds with investments in companies and projects that  are expected to deliver energy efficiency and renewable energy services.

Hong Kong and Shanghai Bank (HSBC)
http://www.hsbc.com/hsbc/csr/environment/hsbc-and-climate-change

In December 2004, HSBC made a commitment to become the world’s first major bank to achieve carbon neutrality by 2006. It achieved carbon neutrality in September 2005 through its carbon neutral pilot project.

Henderson Global Investors
http://www.henderson.com/home/sri/critical_issues/#climate

In 2006 Henderson has produced research reports looking at the issue of carbon emissions and two of its funds. 'The Future is Low Carbon' presents the findings of the carbon audit of the Henderson Industries of the Future Fund and 'Is My Portfolio Still Green' presents the findings of the second carbon audit of the Henderson Global Care Income Fund. Previously Henderson has also researched the carbon footprint of the UK FTSE100 as presented in 'The Carbon 100'. The research was undertaken by Trucost.

Marsh
http://solutions.marsh.com/climates/

Marsh is a leading risk and insurance services firm that provides advice and transactional capabilities to clients in over 100 countries. Its main business activities include: global risk management, risk consulting, insurance broking, financial solutions, and insurance program management services for businesses, public entities, associations, professional services organizations, and private clients. As part of its risk management services, Marsh has reviewed the climate change risk to business through its risk alert: Climate Change: Business Risks and Solutions.

Swiss Re
http://www.swissre.com/

Swiss Re supports effective measures to reduce greenhouse gas emissions and provides new (re)insurance and financing solutions in this field. The company shares its know-how through its publications and engages in discussion on emerging issues with stakeholders. It is also implementing a ten-year programme to become fully greenhouse neutral through a combination of reducing in-house emissions and cooperating with the World Bank. The webpage provides an overview of Swiss Re policy and approach to climate change as well as key research and papers on climate change.

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