SPI symposium on demand

Bo Li is deputy managing director at the International Monetary Fund. Previously, Li was deputy governor at the People’s Bank of China. His earlier roles included heading the monetary policy, monetary policy II and legal and regulation departments at the PBoC. Li served as vice mayor of Chongqing where he oversaw the city’s financial sector development, international trade and foreign direct investment. He was also vice chairman of the All-China Federation of Returned Overseas Chinese. He started his career at the New York law firm of Davis Polk & Wardwell, where he was a practicing attorney for five years. Li holds a PhD from Stanford University and a master’s degree from Boston University, both in economics, as well as a JD from Harvard Law School.

This panel discussed the role central banks should be playing in achieving net zero and the incorporation of climate mitigation into monetary policy. A key question was whether the principle of market neutrality has been overstepped in implementing climate mitigation frameworks and developing sustainable market operations, assets and capital.

Speakers

Gabriel Makhlouf

Governor, Central Bank of Ireland

Yannis Stournaras

Governor, Bank of Greece

Mário Centeno

Governor, Banco de Portugal

Gillian Tett

Chair Editorial Board, Editor-at-large, US, The Financial Times

The Sustainable Finance Policy Tracker provides a comprehensive overview of different countries’ approaches to mitigating climate risks in the financial sector.

Covering 22 countries and jurisdictions, the tracker presents information on 14 areas that include regulatory and supervisory measures, climate stress testing activity, net zero strategies, green bond issuance and disclosure requirements.

View the tracker here: https://www.omfif.org/sfptracker/

Financial systems are more exposed than ever to climate impact. Incorporating climate scenarios into risk assessments is fundamental to any financial strategy and supervision framework. This panel examines various stress-testing and scenario analysis models, the necessary tools, implementation strategies and frameworks required and the impact of these models on the financial sector.

Speakers

Sarah Breeden

Executive Director for Financial Stability and Risk, Bank of England

Danae Kyriakopoulou

Senior Policy Fellow, Grantham Research Institute on Climate Change and the Environment, London School of Economics

Sylvie Goulard

Deputy Gouvernor, Banque de France

Gilneu Francisco Astolfi Vivan

Head of Financial System Monitoring Department, Banco Central do Brasil

Sabine Mauderer is a member of the executive board of the Deutsche Bundesbank. She is responsible for the directorates markets and human resources. She is a member of the steering committee of the Central Banks and Supervisors Network for Greening the Financial System and chairs the workstream on scaling up green finance. She is also a member of the Exchange Experts Commission. Prior to this, she held several senior positions at the KfW Group and worked as a senior adviser at the Federal Ministry of Finance and at the German Embassy in Washington. Mauderer graduated in law and holds degrees from the Osnabrück University and the University of Mannheim.

To achieve net zero, ESG must be incorporated into investors’ decision-making, portfolios and assets. This panel discussed the latest ESG investment products, the benefits and challenges of portfolio transition, the role of ratings and current socially responsible investing strategies.

Speakers

Wilhelm Mohn

Global Co-Head of Corporate Governance, Norges Bank Investment Management

Peter Zöllner

Head of Banking Department, Bank For International Settlements

Thorsten Meyer Larsen

Head of Reserve Management and Collateral, Danmarks Nationalbank

Pierre Ortlieb

Head of Policy Analysis, EMP OMFIF

Jonathan Bailey

Managing Director, Head of Environmental, Social and Governance Investing, Neuberger Berman

Sustainable capital markets and business must be scaled globally if climate mitigation is to be achieved. This panel discussed the tools and infrastructure required to achieve this, developments in green bonds and capital allocation, the role of governments and public-private partnerships, as well as opportunities, risks and solutions.

Speakers

Marcus Pratsch

Head of Sustainable Bonds and Finance, DZ BANK

John Orchard

Chief Executive Officer, OMFIF

Eila Kreivi

Director of Capital Markets, European Investment Bank

Flora Chao

Global Head of Funding, International Finance Corporation

Thierry De Longuemar

Special Advisor, Asian Infrastructure Investment Bank

Charlie Penner is head of active engagement at Engine No. 1 and focuses on enhancing value within companies through active shareholder engagement. Prior to Engine No. 1, he was a partner at JANA Partners LLC, where he most recently led the firm’s impact investing effort.

Anne Simpson is managing investment director for board governance and sustainability and a member of the Investment Management Committee at CalPERS, responsible for strategic initiatives across the fund. She leads CalPERS’ sustainable investment strategy, which focuses on long-term value creation through the effective management of three forms of capital: financial, human and natural. Simpson currently chairs the Steering Committee and Asia Advisory Group for Climate Action 100+, a global investor alliance of over $55tn which CalPERS convened and co-founded. She is a member of the California governor’s Climate Risk Disclosure Advisory Group and the advisory council of OMFIF. She was recently appointed to the board of Ceres and is a lecturer in sustainable and impact finance at the University of California, Berkeley, Haas Business School, and a visiting fellow at Oxford University.

This panel discussed the latest sustainable data frameworks and standardisation, developments on data usage and overcoming data gaps. Additional points of discussion included how to integrate data and standardisation, the role of ratings, disclosure metrics, reporting and forward-looking data.

Speakers

Corinne Neale

Managing Director, Global Head Data & Analytics Solutions Business Applications, BNY Mellon

Fabio Natalucci

Deputy Director, International Monetary Fund (IMF)

Ivan Faiella

Director, Banca d’Italia

Sherry Madera

Chief Industry and Government Affairs Officer, London Stock Exchange Group (Refinitiv)

Sri Mulyani Indrawati is Indonesia’s minister of finance, a position she has held since July 2016. Indrawati returned to this role after serving as the World Bank’s managing director and chief operating officer. In this capacity, Indrawati often represented the World Bank Group at the G20. She also chaired the International Development Association − the World Bank’s fund for the poorest countries. Indrawati also chairs the Development Committee, a ministerial-level forum of the World Bank Group and the International Monetary Fund for intergovernmental consensus-building on development issues.

APAC is the fastest developing region and the most at risk from climate catastrophe. Policies and regulation to drive mitigation are essential, and sustainable investment and capital is key if climate disaster is to be averted. Panellists discussed the latest developments in monetary policy, innovation and investment in the region to transition to a low-carbon economy.

Speakers

Adam Cotter

Senior Vice President, DZ BANK

Satoru Yamadera

Adviser, Economic Research and Regional Cooperation Department, Asian Development Bank

Chuchi Fonacier

Deputy Governor, Bangko Sentral ng Pilipinas (BSP)

Adrian Orr

Governor, Reserve Bank of New Zealand

Serey Chea

Director General, National Bank of Cambodia

John Morton is the first climate counselor at the US Treasury. He has over 25 years’ experience in emerging markets, investment finance and economic and environmental policy. As climate counselor, he leads the Climate Hub, advises the secretary on climate matters and focuses on the Treasury’s efforts to facilitate the financing for achieving a net-zero economy at home and abroad. Morton was most recently a partner at Pollination, a specialist climate change advisory and investment firm. Previously, Morton was a presidential appointee in the Barack Obama administration and served as white house senior director for energy and climate change at the National Security Council.

Europe has been hailed by some as leaders in the green and sustainability agenda, with its ambition to become the world’s first climate-neutral continent by 2050. Its green deal places emphasis on circularity and moving from the old economy as the transition and Covid-19 recovery progresses. Nevertheless, many have accused the green deal of greenwashing and maintaining the status quo, arguing that growth cannot be coupled with decarbonisation. This panel discussed the strategy, process and targets surrounding the deal, and how Europe will achieve net zero by 2050.

Speakers

Martin Spolc

Directorate-General for Financial Stability, Financial Services and Capital Markets, European Commission

Jakob von Weizsäcker

Chief Economist, Federal Ministry of Finance, Berlin

Ellie Groves

Managing Director, Economic and Monetary Policy Institute, OMFIF

Nicolas Mackel

Chief Executive Officer, Luxembourg for Finance

Delphine Dirat

Senior Manager, Industry and Gov Affairs Sustainable Finance, London Stock Exchange Group

Ignazio Visco has been governor of the Bank of Italy since November 2011 and is chairman of the joint governing board of the Insurance Supervisory Authority. He is a member of the governing council and general council of the European Central Bank, the general board of the European Systemic Risk Board, the board of directors of the Bank for International Settlements, the steering committee of the Financial Stability Board, the board of governors of the World Bank and the Asian Development Bank. He is also alternate governor for Italy at the International Monetary Fund and the Inter-American Development Bank. He takes part in the G7, G10 and G20 finance ministers and central bank governors meetings.

As focus on climate action and net-zero targets continues to rise, it is imperative that emerging economies do not fall behind as those who have already built strong economies from carbon-heavy industries transition. This panel discussed the latest developments and strategies in sustainable capital markets in emerging economies, examining the risks of transition, infrastructure developments, asset allocation and the latest developments in sustainable bonds and loans.

Speakers:

Herman Kamil

Head of Sovereign Debt Management, Ministry of Economy and Finance, Uruguay

Nneka Chike-Obi

Director, Sustainable Finance, Fitch Ratings

Patience Oniha

Director-General, Nigeria Debt Management Office

Natalia Ospina

Head of Policy Analysis, Sustainable Policy Institute, OMFIF

Bart Turtelboom

Chairman and CEO, Delphos Holdings

Jingdong Hua is vice president and treasurer of the World Bank. He also serves as the pension finance administrator of the World Bank Group. He is responsible for the capital markets operations and oversees an annual funding program of $60bn-$70bn through debt issuances from the International Bank for Reconstruction and Development and International Development Association. He leads a global team of capital markets professionals in the management of a $200bn debt portfolio, $170bn asset portfolio managed for the World Bank Group and over 70 clients. He heads the World Bank Treasury’s capacity building, advisory and capital market intermediation services in financial analytics, asset management and financial solutions for its clients. He also supervises the investment and administration of the World Bank Group pension plans, with $30bn assets under management invested in a diverse pool of asset classes including fixed income, public and private equities, real estate and alternatives.

The European Union has led the way with its taxonomy and set in motion a global movement towards taxonomy regulation. This panel discussed the latest developments in taxonomies, transition pathways and its impact on financial activities and portfolios, as well as the latest products and innovations to support this. Panellists also discussed how to develop standards, credit solutions, risks and opportunities in transitioning to sustainable finance.

Speakers

Marsha Vande Berg

Distinguished Career Fellow, Stanford University; Member, Council on Foreign Relations, Stanford University

Irene Espinosa-Cantellano

Deputy Governor, Banco de México

Gábor Gyura

Head of Sustainable Finance, Magyar Nemzeti Bank

Nicola Ranger

Deputy Director, UK Centre for Greening Finance and Investment, Head of Climate and Environmental Risk Research, Oxford Sustainable Finance Programme

Nathan Fabian

Chief Responsible Investment Officer, Principles for Responsible Investment(PRI)

This final panel will examine the latest developments within the Federal Reserve in sustainable regulation, asset allocation and progress in driving sustainable financial markets. Panellists touched upon how the bank is managing the physical risk posed by climate change across states, as well as the risk to the economy and the financial sector, and how policy and regulation will mitigate this.

Speakers

Steven Rothstein

Founding Managing Director, Ceres Accelerator for Sustainable Capital Markets

Patrick Harker

President and Chief Executive Officer, Federal Reserve Bank of Philadelphia

Danae Kyriakopoulou

Senior Policy Fellow, Grantham Research Institute on Climate Change and the Environment, London School of Economics

Kirsten Dunlop is CEO of the European Institute of Innovation and Technology’s Climate-Knowledge and Innovation Community. She joined in 2017 from Suncorp Australia, where she was executive general manager strategic innovation. At Suncorp Dunlop founded and led a bespoke division focused on managing and responding to strategic risk through innovation, transforming core business and industry models from within. She has held roles at Second Road and KPMG and worked in the UK and Italy for 15 years.