November 2008

Jerry Blenman Managing Director

Calidad Investment & Financial Services

Barbados Sustainable Finance Taskforce

The Management of Environmental Risk as a Sustainable Finance Practice within Barbadian Financial Institutions

Agenda

1. Survey Objectives1. Survey Objectives

2. Emerging Trends2. Emerging Trends

3. Conclusion & Next Steps3. Conclusion & Next Steps

Broad Objectives

Objective1

Objective2

Objective3

Objective 4

To formulate a national

definition of Sustainable

Finance within the Financial

Services Sector

To provide a national

framework for decision

making based on

principles of Sustainable

Finance

To promote principles

and encourage

the adoption of

Sustainable Finance by all persons

To sensitive and educate all

persons about key issues and

conflicts between

development, environment

and sustainable finance

Sectoral Groups

Develop. Banks

CommercialBanks Insurance

Companies

Finance Companies

Credit Unions

Integration of Environmental Risk

Underwriting

Integration of Environmental Risk

Underwriting

Harmonization

through agreed codes

Target Population

7 Finance

Companies

1 Development Bank

18Insurance

Companies

34 CreditUnions

6 Commercial

Banks

Target 15 Institutions

Progress Phases

�Phase 1�Phase 1 Phase 2Phase 2 Phase 3Phase 3

Encouraging the broadening of Institutional mandate through integration of Environmental Risk Analysis

Institutional Research & Analysis

Encouraging sustainable finance practice through offer of green products and services

Institutional Profile

6 Commercial Banks

3 - Global3 - Regional

Lending limits

exceeding Bds$10M

All in existence over 20 years

Primary lending

category -Corporate

Some Emerging Trends

Relevance of Sustainability Agenda

All in existence over 20 years

•Trending towards a degree of high importance

• Is likely to be a major agenda item among financial institutions within the next 5 years

Emerging Trends

Environmental Management & Reporting

?Importance of Carbon Finance & Climate Change

Asset management and socially responsible investing

Sustainable Venture Capital

Environment Credit Risk Management

?Renewable Energy Markets

HighMedLowTopic

Importance of key topics to the Banking Sector

Emerging Trend

Emerging Trends

?Water Resource Management

Bio-diversity Markets

HighMedLowTopic

Importance of key topics to the Banking Sector

Emerging Trend

Emerging Trends

Lack of Stakeholder

Demand

No Clear Business Case

Difficult to

Measure

Benefits

No Legal

Requirements

MAIN

BARRIERS

Lack of SeniorManagement

Commit

Main Barriers to Implementation

Some Emerging Trends

Conclusive Comments

All in existence over 20 years

•Creation of a sustainable plan towards achievement of set objectives is an immediate critical imperative