27 October 2016: UN Environment’s Finance Initiative (UNEP FI) 2016 Global Roundtable met to identify ways for the finance community to become a catalyst for sustainable, climate resilient development. The discussions resulted in the Dubai Declaration on financial institutions in the UAE on sustainable finance,’ containing a commitment from 11 UAE-based financial institutions.

The Roundtable convened in Dubai, United Arab Emirates (UAE), for the first time, from 25-26 October 2016. The gathering was the 14th UNEP FI roundtable. UNEP FI, founded in 1992, is a global partnership between UN Environment and the financial sector. It aims to identify and promote the adoption of the best environmental and sustainability practice at all levels of financial institution operations.

Participants stressed the importance of public-private partnerships (PPPs) and the role of the finance community in delivering a green global economy. They also discussed: the potential of Sharia-compliant financing to contribute to sustainable growth; decarbonization of finance; sustainable finance for developing countries’ financial disclosure; environmental assets necessary for building green infrastructure; policy, regulatory and supervisory frameworks for a sustainable financial system; how to better quantify emerging environmental and social risks; and how to upscale green Islamic finance.

Erik Solheim said realizing a green economy transformation will require “brave” politicians and private sector leaders driving change.

UN Environment’s Executive Director Erik Solheim underscored that the private sector and the finance community are critical to achieving the Sustainable Development Goals (SDGs), and that realizing a green economy transformation will require: citizen engagement; “brave” politicians and private sector leaders driving change; and innovative markets. Rachel Kyte, CEO, Sustainable Energy for All (SE4All), stressed the importance of transparency and disclosure in achieving sustainable development. Discussions also addressed a financial sector supplement being developed as part of the new Natural Capital Protocol.

Thani Ahmed Al Zeyoudi, Minister of Climate Change and Environment, UAE, introduced the Dubai Declaration, focused on stimulating change in the finance sector, and establishing strategic partnerships with local investment and financing institutions. Eleven UAE-based financial institutions have committed to the Declaration.

The Dubai Declaration underscores actions such as: identifying a “champion” for promoting corporate social responsibility (CSR) and sustainability within the financial institution; reducing the environmental footprint by implementing strategies and processes, such as digitalization, energy and water efficiency, green buildings and recycling, and improving access to and encouraging use of public transport; supporting access to financial services for all segments of society; and integrating environmental, social and governance criteria and climate change factors into the risk assessment processes for the institution’s business lines.

In order to introduce and implement such actions, signatories will strive, by 2021, to: share knowledge and experiences and support learning and capacity building with other financial institutions; help identify a public policy framework and measures that would enable financing, investment and insurance in the projects, businesses and customers in the country with sustainable purposes; and regularly compile and publish a sustainability/CSR report, among other actions.

Also during the roundtable, UNEP FI launched a report titled ‘Connecting the Financial System and Sustainable Development: Market Leadership Paper,’ examining how financial institutions are driving change. [2016 Global Roundtable Website] [UNEP FI Press Release] [Dubai Declaration] [UNEP FI Press Release on Bell-ringing Ceremony] [DRM Press Release]