Today, at the COP21 in Paris, an unprecedented coalition of the world’s leading financial institutions have today officially signed on to five voluntary Principles to Mainstream Climate Action into their operations.
The landmark move was undertaken by 26 financial institutions, from both the public and private sectors, from developing and developed countries. By signing onto the voluntary principles the financial institutions, which together are worth a total value of more than $11 trillion, are pledging to continue to integrate climate considerations into their investments and advisory functions, in an effort to scale up their efforts to address climate change [thereby “greening” operations over time]. The Principles highlight practical, operational approaches to integrate climate into the core investments and advisory functions of a financial institution. They outline how financial institutions can:
• Commit to climate strategies
• Manage climate risks
• Promote climate smart objectives
• Improve climate performance, and
• Account for climate action.
These Principles have been developed based on practices implemented by financial institutions worldwide over the last two decades. A related publication also released today compiles emerging practices illustrating some of the many ways financial institutions currently integrate climate change considerations into their core activities. See: http://bit.ly/FImainstreaming
The five voluntary Principles to Mainstream Climate Action within Financial Institutions were initially developed by a group of multilateral development banks (MDBs) and several members of the International Development Finance Club (IDFC), a network of national, regional and international development banks. This group was soon joined by several other public and private financial institutions worldwide.
Other institutions are being invited to take part in this initiative, as part of a collective responsibility to incorporate climate change considerations throughout their operations.
About FMO
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 years. Its mission is to empower entrepreneurs to build a better world. It invests in sectors where it believes its contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, it invests in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 8 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. www.fmo.nl
Press contact:
Paul Hartogsveld
+31 (0) 70 3149928
