IADI ERC and EFDI Joint Webinar (10/15/2021)
Sustainability: green-washing or emerging issues for deposit insurers?
Understanding and discussing environmental, social and governance (ESG) implications for Financial Stability and Deposit Insurance
On 8 October, the European Regional Committee (ERC) of the International Association of Deposit Insurers (IADI) held a conference in cooperation with the European Forum of Deposit Insurers (EFDI).
The conference 'Sustainability: green-washing or emerging issues for deposit insurers? Understanding and discussing environmental, social and governance (ESG) implications for Financial Stability and Deposit Insurance' explored the issue of sustainability and its possible implications for deposit guarantee schemes. The transformation towards a more sustainable and lasting economy, in fact, must be guided by a global vision towards enhancing cooperation between all players in the financial system and introducing operational tools to promote and facilitate the transition.
Alfredo Pallini, President of the ERC and Director General of the Interbank Deposit Protection Fund (FITD) and Thierry Dissaux, President of the EFDI and the Fonds de Garantie des Dépôts et de Résolution (FGDR), opened the conference. Fernando Restoy, President of the Financial Stability Institute (FSI), delivered the keynote speech, outlining the possible effects of climate change on the global financial system.
The first panel focused on the issue of sustainability in its environmental, social and governance (ESG) dimensions and their possible implications on the activity of deposit guarantee schemes. Riccardo De Lisa, Senior Advisor at the Interbank Deposit Protection Fund & Associate Professor at the University of Cagliari, illustrated the “green value chain”, a possible organisational model for deposit guarantee schemes, which integrates ESG aspects. Bert van Roosebeke, IADI Senior Policy Research Advisor, summarised the main insights from the recently published IADI Policy Briefs on these issues.
In the second part of the panel, Thierry Dissaux presented the EFDI Charter for Sustainable Deposit Guarantee and Investor Compensation Schemes, followed by Arnaud Schangel, FGDR and Nikolay Evstratenko, Russian Deposit Insurance Agency, who gave an overview of the French and Russian DGS experiences in implementing the Charter.
The panel continued with Bernd Bretschneider, GBB-Rating, and Alexandra Oser, Auditing Association of German Banks, who discussed the main risks and opportunities of implementing ESG factors.
The second panel discussion was dedicated to the analysis of the banking sector's exposure levels to ESG risks. Speakers on the panel were: Georgios Papadopoulos, European Commission - Joint Research Centre, who outlined the Commission's new strategy on sustainable finance, published last July, and; Andrea Federico, Partner at Oliver Wyman, who highlighted the importance of developing an appropriate methodology to understand and identify ESG factors at an early stage. Marco Angheben, European Data Warehouse, closed the panel with the presentation of the project carried out in collaboration with the University of Cagliari to map potential risks related to ESG factors that could impact banks.
Alfredo Pallini and Thierry Dissaux delivered the closing remarks and thanked the participants and the speaker for the high level discussion.