Workshop presentation - Opening Meeting (Speakers: Gwenaëlle Terras - Eric May)

1. CITIZEN ACT Opening Meeting
Workshop: All about CSR!
2nd February 2011
Gwenaëlle Terras

2. CITIZEN ACT QUIZZ
I : How much money is allocated to the market linked to
the environment in the world?
Definition : The market linked to the environment include all
goods and services linked with this sector :
renewable energies, improvement energetic housing
conditions efficiency, recycling and management of wastes
1/ 590 billions of dollars
2/ 35 billions of dollars
3/ 1370 billions of dollars
Answer 3 : 1370 billions of dollars.
.
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3. CITIZEN ACT QUIZZ
II : How much will this sum represent in 2020 :
1/ It will remain the same
2/ It will double
3/ It will decrease
Answer 2 : It will double
The market linked to environment may double by 2020 and reach a
sum of 2740 billions of dollars. It will generate millions of jobs
according to the report of UNEP (United Nations Environmental
Programme).
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4. CITIZEN ACT QUIZZ
III : What are the Equator Principles ?
1/ Crossing the Equator line
2/ A law implemented in Equator
3/ 10 principles established by financial institutions to evaluate and
manage environmental and social issues linked to the financing of
project
Answer 3 : 10 principles established by financial institutions to
evaluate and manage environmental and social issues linked
to the financing of project
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5. CITIZEN ACT QUIZZ
IV: What is the average percentage of disable people in a country?
1/ 10%
2/ 15%
3/ 8%
Answer 1 : 10%
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6. CITIZEN ACT QUIZZ
V: How much money is allocated to Socially Responsible Investing
in the world in 2010?
1/ 2,8 billion euros
2/ 15,6 billion euros
3/ 39,2 billion euros
Answer : 15,6 billion euros allocated against 7,4 billion euros in 2008
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7. Table of contents
1. A day in my life of CSR expert
2. Definition
3. CSR and business
4. CSR and banking industry
5. What are the Equator principles
6. Société Générale and CSR
7. Examples of implemented actions
8. Case study
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8. About me…
A day in my life of CSR
Expert!
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9. Definition
Corporate Responsibility is a concept whereby companies integrate social
and environmental concerns in their business operations and in their
interaction with their stakeholders on a voluntary basis
SOCIAL Equitable ECONOMIC
SUSTAINABLE
Liveable Viable
ENVIRONMENTAL
"Sustainable development is development that meets the needs of the present
without compromising the ability of future generations to meet their own needs."
(Brundtland report, « Our common Future »)
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10. CSR and banking industry
What are the specific challenges facing the bank?
Maintaining consumer confidence, ensuring the sound functioning of
financial and economic systems, contributing towards lasting economic
and social development
Transparency of the activity
Clear, accessible, exhaustive information: rates, clauses, etc.
Transparency Better understanding of the banking sector and its activities (e.g. tax havens, etc.)
Use of funds: what exactly do banks do with their customers' money?
Standards with Bâle II and Bâle III
The human capital factor: HRM and CSR
Ethics and CSR: the aftermath of the financial crisis
Clients’ Clients’ management
management Tailored, ‘personalized’ advice
Fair treatment
Ensuring the delicate balance that ensures a win-win situation for both bank and customer:
is the bank acting in my best interests?
Access to and exclusion from banking services
Over-indebtedness versus over-cautiousness…
Responsibility Responsibility in the investments and financing activities
Does the bank offer "green" and/or charity products (that have a positive impact on
society) and does it contribute towards the creation of a "green" economy?
Does the bank finance (and invest in) activities, projects or businesses that have a negative
impact (dirty money, cluster bombs, etc.)?
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11. Société Générale and CSR
5 core priorities
1. a quality approach focused on the customer and a constant
concern for their satisfaction;
2. a robust system of corporate governance, which is continually being
adapted to the requirements of society;
3. increasingly robust internal control processes and risk management;
4. a comprehensive compliance policy and the application of ethical
values, helping to ensure our long-term performance;
5. a culture of innovation and a collective innovation programme
designed to encourage employees to contribute to the Group’s
development.
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12. Société Générale and CSR
How does Société Générale implement CSR:
1. Equator Principles’ implementation (GLFI/EME)
2. Sustainable banking (Green Finance/ fair trade financing / E&S
criterias…)
3. Carbon market (ORBEO)
4. SRI
5. Supportive products and solidarity-based products
6. Facilitate the access to banking services (BDDF)
7. Support to the creation of a company
8. Micro-finance
9. A responsible management: our HR policy
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13. Société Générale and CSR
• Signature of the Global Compact in 2003
A joint commitment by a group of companies, UN institutions and civil
society focused around universal principles : human rights, labour
standards, environment
• OECD guidelines for enterprises
Voluntary principles and standards for responsible business
practices: publication of information, anti-corruption measures,
taxation, social relationships, consumer protection…
• Signatory of the statement by financial institutions on the environment
and sustainable development (UNEP-FI) (2001)
Unique international partnership between the United Nations
Programme for the Environment and the private banking sector.
• Signatory of the Carbon Disclosure Project (CDP) since 2006
A Rockefeller Philanthropy Advisors initiative supported by the United
Nations Programme for the Environment.
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14. Société Générale and CSR
• Adoption of Equator Principles in 2007
Principles relating to project finance based on the policies and
directives of the World Bank and IFC (International Finance
Corporation).
• Diversity Charter in France
Signed in November 2004 alongside 40 major enterprises
March 2007: Société Générale received the Professional Equality Label
• SGAM Paris signatory of Principles for Responsible Investment (PRI)
in 2006
Integration of environmental, social and corporate governance
issues in the investment decision-making process
• Founding member of the Wolfsberg group in 2000
Global anti-money laundering guidelines
• Participation in market working groups (Orse, EpE, Medef, Afep…)
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15. What are the Equator Principles?
•Equator Principles are : “a financial industry benchmark for determining, assessing
and managing social & environmental risk in project financing”
• Launched in 2003 by ten international banks, EPs have now become a global
standard for project finance
•EPs provide a framework for the environmental and social evaluation of projects:
compliance with IFC social & environmental policies and quantitative environmental
guidelines (outside High Income OECD countries)
• A voluntary agreement, but “Equator has teeth”: Adopters agree that they “will not
provide loans directly to projects where the borrower will not or is unable to comply with
our environmental and social policies and procedures”.
• November 2010, EP has been adopted by around 70 banks
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16. What are the EPs requirements ? (1/3)
 Project financing (non recourse) with project costs > 10MUSD
 Project financings covering new, expansion or upgrade of existing
Scope projects which significantly change the nature or degree of existing
impact
 Screen the level of social & environmental risk associated with all
applicable project financings and assign a risk category:
 Category A – Projects with potential significant adverse social or
environmental impacts that are diverse, irreversible or
unprecedented
How ?  Category B – Projects with potential limited adverse social or
environmental impacts that are few in number, generally site-
specific, largely reversible and readily addressed through mitigation
measures
 Category C – Projects with minimal or no social or environmental
impacts
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17. What are the EPs requirements ? (2/3)
 For projects in high-income OECD Countries:
Comply with assessment processes, requirements and standards
of local regulations
How ?  For projects in non-OECD, and those in OECD but not high-
income countries:
and
• In addition to compliance with local regulations (or as required
Where ?
by local regulations), complete a Environmental and Social
Impact Assessment (ESIA)
• ESIA has to reflect IFC Performance Standards and IFC
Environmental Health and Safety Guidelines (IE review and gap
analysis)
• Measures to be implemented to ensure compliance will be
structured in an Environmental and Social Action Plan (ESAP)
• The ESAP will be covenanted to the loan documentation
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18. What are the EPs requirements ? (3/3)
• Environment & Social issues covered by the standards :
-Community: Health, Safety, Resettlement, Indigenous people,
Cultural property…
-Environment: Ecology, Biodiversity and Natural habitats, Efficient
What ? use of natural resources, Hydrology, Air, Water, Soil pollution…
-Labour: Occupational Health & Safety, Child labour, Forced labour…
• Consultation / Disclosure
-At the project level: consultation of local communities ; for the
most sensitive projects, establishment of a grievance mechanism
-For each EPFI, reporting requirement: report publicly the EP
implementation process and the number of projects reviewed at
least annually
• Independent review and monitoring for the most sensitive projects
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19. Implemented action
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20. Case study : LNG Project in Middle East
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21. Case study : LNG Project in Middle East
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22. Case study : LNG Project in Middle East
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23. Case study : LNG Project in Middle East
 Caractéristiques :
•LNG pipeline of 320 km – 1m diameter
•LNG Plant 7mt/year
•Harbour
•12 000 workers for construction; 1100 for operation
Documentation E&S :
•ESIA
•ESMP + Contractor Control Management Plan
•Lender’s Independent Review
Follow up:
•Quaterly monitoring during construction
•Annualy during operation
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24. Case study : LNG Project in Middle East
 Construction impacts:
•On terrestrial environment
•On marine environment
•On local population and cultural heritage
Exploitation :
•Air & noise emission
•Wastewater effluents & Waste
•Emergency Response Plan
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25. Case study : LNG Project in Middle East
- Coral reef transplantation
 Marine ecosystem: coral reefs and a diverse fish
population.
Main potential construction impacts: potential
increase in seawater turbidity
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26. Case study : LNG Project in Middle East
- Coral reef transplantation
Mitigation measures:
- Use of Silt Curtains
- Corals transplantation to preserve corals in areas where
construction impact cannot be avoided.
Monitoring Process:
•Daily site monitoring by marine contractors (water quality,
qualitative coral conditions, etc).
•Regular water quality sampling
•In depth bi-monthly missions to check coral health and diversity
against internationally accepted statistical criteria.
•Regular monitoring missions by the Local Authorities Monitoring
Team
Results: overall, survival of corals one year after transplantation
was 91%.
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27. Contact
Gwénaëlle TERRAS
Société Générale
Corporate Investment Banking
GLFI/EME/ENV
+33 (0)1 58 98 52 63
gwenaelle.terras@sgcib.com
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