Convergence of Sustainability and

Finance
Felipe Calderon, MSc, CPA, CMA, PhD
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 Session date/ Topic/Exercise/Case Readings/Video Student/Teach back
time
Leadership of Global Teams : The
W Source of Sustainable Passion
Harmonizing Global Teams in
6 11 Oct Women Make the CHoice Afghanistan Maria Africa Beebe,
Ph.D. Director, Global Networks
Insight Piece
Prof. Maria Beebe
11:00-12:20

Co-creating Sustainable Finance

M Case: Triodos Bank: Measuring Sustainability Performance Dilemma of Sustainable Lending
Insight Piece on Sustainable Finance/Impact

7 23 Oct Prof. Felipe CALDERON Climate Change in 2017: Implications for Business
Investing
Due 25 October

11:00-12:20
W Beyond Excellent Business: Goodness! Its
Human Nature Insight Piece
8 25Oct Case of Human Nature (case bank)
Due Nov 3
11:00-12:20 Resource Person: Anna Meloto-Wilk

9/
TBA Learning Team Presentations Presentation Materials
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NRC*LWI2017 2
Leading with IMPACT
creating an
Organizations/Societys
Compelling Future
Goodness... Its

NRC*LWI2017 3
NRC*LWI2017 4
 Agenda
Part 1
Introduction
Definition of sustainable finance and banking
Triple bottom line: people, planet, & profit
Business case for sustainability
Sustainability and Climate Change
Part 2
Case analysis: Triodos Bank
Part 3
Mainstreaming sustainability
Sustainability: The Leadership Challenge
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BSc in Agribusiness Management
University of the Philippines at Los Banos
Philippine National Bank: research and commercial lending
Master of Science in International Banking & Financial Studies
Heriot-Watt University, Edinburgh, Scotland

Business Development Bank of Canada

PhD in Management with specialization in International

Business
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University of St Gallen, Switzerland
PhD in Management with specialization
in International Business
University of St. Gallen, Switzerland

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 What Keeps me Awake at Night
Convergence of sustainability and finance
Institute of Social Banking, Summer School,
Filzbach, Switzerland
Judge: Business Plan competition with a social
impact
Delivered presentations & workshops on
Sustainability and Finance:
Whistler Sustainability Centre
British Columbia Small Business Roundtable
SFU MBA Net Impact Club
UBC MBA Net Impact Conference on Sustainability 13
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 Defining Sustainable Banking
> Sustainable banking can be defined as a decision by banks
to provide products and services to customers who take
into consideration the environmental and social impacts
of their activities.
> While mainstream banks are in most cases focused solely
on the principle of profit maximization, sustainable
banking implements the triple principle of people-planet-
profit.
> Sustainable banks care about making a profit, but equally
for promoting human and environmental well-being.

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 Four Stages Toward Sustainable Banking
1. Defensive stage: Bank takes no action in adopting
any initiative to support environmental legislation.
2. Preventative stage: Bank implements internal
measures such as incorporating due diligence in
credit risk assessment.
3. Offensive stage: Bank implements both internal
and external measures such as offering financing
products that promote the environment.
4. Sustainable banking: Banks provide products and
services to clients who take into consideration the
environment and social impact of their actions.
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Source: International Finance Corporation

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Sustainability has become an important factor in
business strategies. Large multinationals and mid-sized
companies are increasingly taking a long-term view
toward managing environmental and social risks.

Many companies recognize that by addressing

environmental and social issues they can achieve better
growth and cost savings, improve their brand and
reputation, strengthen stakeholder relations, and boost
their bottom line.

Strategic integration of sustainability prepares

companies to better anticipate and understand long-term
trends and the effect of resource use, and to address
stakeholder expectations. 22
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Sustainability plays a key role in slowing down
the drastic effects of climate change.

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 Triodos Bank: Measuring Sustainability
Performance

1. What framework(s) would you propose to

effectively measure and communicate Triodos
Banks sustainability performance?

2. How do you ensure that the framework(s) is/are

both relevant and meaningful to other
stakeholders?

3. What did Triodos Bank do? 28

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Triodos Bank Annual Report 2016
Key figures

Amounts in millions of EUR 2016 2015 2014 2013 2012

Financial

Loans 5,708 5,216 4,266 3,545 3,285

Number of loans 50,765 44,418 36,320 29,620 24,082

Balance sheet total 9,081 8,211 7,152 6,447 5,291

Total income 217.6 211.6 189.6 163.7 151.6

Operating expenses 171.7 150.2 138.4 112.6 100.1
Impairments loan portfolio 5.7 7.6 11.1 17.1 20.9

Operating result before taxation 38.7 54.0 40.3 34.2 30.8

Taxation on operating result 9.4 13.3 10.2 8.5 8.2

Net profit 29.3 40.7 30.1 25.7 22.6

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Source: Sustainability Accounting Standards Board 48
Many more business leaders must get actively engaged in the
sustainability agenda to ensure that private enterprise and capitalism
are seen as part of the solution rather than being vilified as causing
the problem.

What can we learn from the pioneers about sustainability leadership?

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And how can we scale and replicate such leadership?
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Source: United Nations Global Compact 58
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Sustainability Challenges

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Sustainability Hypocrisy

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The crisis is too urgent to wait for consensus.

We need to start out on the path towards

sustainability by generating new models of
organizational action that support social relationships
and the natural world.

The time to debate abstract theories is past.

What we need is to embed our theories in action and

to engage in dialogue around working models.

Source: Organizational Change for Corporate 64

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