Financial Services Leaders

Banks and investors are jumping into the carbon reduction game, helping to finance projects to cut emissions and encourage trading of carbon credits

1 HSBC Group

> Last year, pledged to be carbon-neutral by 2006. The bank achieved its goal in October, ahead of schedule, through emission reductions, purchasing green electricity, and buying emission credits to offset its remaining CO2 discharges

2 ABN Amro

> New financial products for business range from climate risk-management services to trading emission allowances on the European Climate Exchange and through its commodity trading desk. For consumers, there are new mutual funds focused on sustainability investments

> In June, the bank brokered its first carbon-credit transaction between two private corporations

3 CalPERS and CalSTRS

> With $329 billion under management, two California pension funds -- the California Public Employees' Retirement System and the California State Teachers' Retirement System -- are vocal activists for corporate action to protect its investments

> Launched Green Wave initiative in 2004, earmarking $1.5 billion (0.6% of its two main pension funds) for clean energy and environmental investing

4 JP Morgan Chase

> Carbon disclosure and mitigation efforts are now a formal part of the loan-review process. For power plants, the cost of greenhouse gas emissions will be quantified and factored into the analysis

5 Dexia

> Formed an environmental fund in 2004 with the European Bank for Reconstruction & Development. Targets are GHG mitigation and energy-efficiency projects in Central and Eastern Europe

> Invested €10 million in the European Carbon Fund, which trades carbon credits

> Financed approximately 30 wind-energy projects in nine countries since 2002. The bank has committed $434 million to renewable energy

6 Fortis

> In November 2004, teamed with Caisse des Depots to launch the 100 million European Carbon Fund. ECF invests in carbon credits and buys government GHG allowances

> Fortis provided $299 million in renewable-energy financing in 2004

7 Citigroup

> In 2004, joined Fannie Mae in unveiling energy-efficient mortgages. The value of energy savings is recognized as income in qualifying borrowers

8

Swiss Re

> Established its Greenhouse Gas Risk Solutions unit in 2001 to search out new business opportunities related to climate change. Wind-power projects are the primary focus

9 Munich Re

> Organized the Climate Group in 2003 to help companies and governments work together to slow climate change

> Last April, to increase public awareness of global-warming threats, Munich Re and the European Climate Forum unveiled the Winds of Change board game

10 Rabobank

>In 2004, to expand beyond its then-four-year-old Robeco Sustainable Equity Fund, Rabobank launched Robeco Sustainable Private Equity, the first fund-of-funds geared to the environment and new eco-energy technologies

Data: Climate Group, Innovest, Panel of Judges, BW