The Greening of Fianancial Markets - Leveraging CSREnvironmental Programs

CIM Vancouver 2016
Dr Catherine Lyons (Partner - Goodmans LLP)
PNC Financial, Bank of America, Citigroup, Morgan Stanley, JP Morgan Chase, Wells Fargo, and Credit Suisse are amongst a growing list of financiers who have distanced themselves from coal companies involved in mountain top removal. President Obama’s comment on “extraordinary dirty” oil extraction in Canada and the ongoing discussion on “conflict metals” serve as reminders that coal is not the only target of the green movement. There is increasing pressure not only on producers, but on their source of funds and means of product transportation.

Corporate social responsibility programs often focus on local communities where the extraction is taking place. This continues to be an important approach to managing project risk. However, the “distancing” by financiers from a certain type of coal extraction, demonstrates that it cannot stop there. Environmental issues can serve as a lightning rod for local conflict and a pathway to broader political action.

The presentation will reference the recent comprehensive study, “Costs of Company-Community Conflict in the Extractive Sector” from the Harvard Kennedy School (Davis, Franks) which quantifies costs of delay in the billions of dollars. The presentation will explore opportunities for producers to leverage existing CSR /environmental programs to gain better access to financial markets.
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