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4/30/2010   EBA 2009 www.envirobank.org   1
Definition of a Banker?


• According to famous American author, Mark Twain, a
  banker is a fellow who lends you his umbr...
Who is the EBA?


• Non-profit trade association of

• 105 financial institutions and

• Affiliates, who are consulting fi...
EBA Members

   •    Bank of America           • CIBC Bank
   •    JP Morgan Chase           • Bank of New York
   •    HS...
EBA Mission Statement


         Our mission is to protect and preserve bank net
         income and assets from environme...
EBA Vision Statement



   Enhance visibility and awareness of environmental risk
   management’s global role in promoting...
How it all started ...

• Lender Liability (CERCLA)
• Real Estate and S&L Crisis
• Environmental regulations
• Banking reg...
Banking Issues

•   Credit & Trust Risk
•   Cash Flow Impairment
•   Collateral Devaluation
•   Direct Liability, Loan ori...
Sustainable Finance in Banking
            Monetizing Opportunities and Risks
 •    Carbon Disclosure Project
 •    Carbon...
Environmental Risk Management Stages for
           Financial Institutions


   • Risk Identification           • Risk Tra...
Environmental Risk Management Issues


   •    Bank Risk Tolerance
   •    Business Environmental Risk
   •    Distressed ...
Committees

•   Risk Management
•   Technical
•   ASTM and Legal issues
•   Trust Activities
•   Global Issues
•   Members...
Accomplishments and Work Products
•    Benchmarking
•    Participation in Conferences
•    Training
•    Technical Support...
Tip Sheets


• Environmental Risks to Lending
• Lender’s Checklist for Maintaining Security Interest
  Exemption
• Default...
Benefits


•   Networking/Social Media
•   Local and Global Forums
•   Resources- repository for reports, policies
•   Tra...
2008 Survey Results Environmental Staff
• 93% reported that your institution has a designated
  full-time Environmental Ri...
Does your Policy Require Environmental Due
                 Diligence on

• New Loans, Extensions & Renewal Transactions?
...
Emerging ERM Policy Issue-
                    Vapor Intrusion

            Is vapor Intrusion an issue with your bank on
...
Collaboration


• Bank Regulators & Trade Associations
• Export credit agencies
• EPA and other Federal/State Agencies
• R...
Training

• Environmental credit risk management program
• Technical issues – Tip Sheets
• Sustainable Financing ,(green b...
EBA San Diego Conference
              January 17,18 & 19, 2010
• Topics
   – Environmental credit risk management for dis...
EBA San Diego Conference

• Land Development Perspective on REO Management and
  Disposition Program, Understanding the As...
EBA San Diego Conference

• Evolution of Green Building Due Diligence & Disclosure,
  Panel Discussion
• Releasing Due Dil...
EBA Web Site

•   Directory
•   Registration and payment
•   E-mail
•   Articles & Tip sheets
•   News & Articles
•   Memb...
“BankNotes”
•   Cover Story-Philosophical Message
•   Legislation / Regulations
•   Case Law – International, National, Re...
What Next ?


•   How to join
•   Dues
•   Attend a meeting
•   Attend a Committee conference call or webinar
•   Membersh...
Environmental Bankers Association
               510 King Street, Suite 410
             Alexandria, VA 22314 USA
       1...
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Presentation: The USA - EBA Experience

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Transcript of "Presentation: The USA - EBA Experience"

  1. 1. 4/30/2010 EBA 2009 www.envirobank.org 1
  2. 2. Definition of a Banker? • According to famous American author, Mark Twain, a banker is a fellow who lends you his umbrella when the clouds first appear and wants it back the minute it begins to rain. • In reality, bankers only want to be repaid, on time and with interest, plus fees. 4/30/2010 EBA 2009 www.envirobank.org 2
  3. 3. Who is the EBA? • Non-profit trade association of • 105 financial institutions and • Affiliates, who are consulting firms, insurance companies, brokerages, law firms, appraisers, industrial companies, commercial real estate service companies 4/30/2010 EBA 2009 www.envirobank.org 3
  4. 4. EBA Members • Bank of America • CIBC Bank • JP Morgan Chase • Bank of New York • HSBC Mellon • Deutsche Bank • Bank of the West • CitiGroup • US Bank Corp • TD Financial • Comerica Bank • RBC Financial • Wells Fargo/Wachovia • Royal Bank of • Sun Trust Bank Scotland 4/30/2010 EBA 2009 www.envirobank.org 4
  5. 5. EBA Mission Statement Our mission is to protect and preserve bank net income and assets from environmental exposure and liability resulting from lending and trust activities through the employment of environmental risk management (ERM) in the US and worldwide 4/30/2010 EBA 2009 www.envirobank.org 5
  6. 6. EBA Vision Statement Enhance visibility and awareness of environmental risk management’s global role in promoting environmentally sound lending and fiduciary activities, sustainable development, and new concepts of social responsibility for the financial services industry. 4/30/2010 EBA 2009 www.envirobank.org 6
  7. 7. How it all started ... • Lender Liability (CERCLA) • Real Estate and S&L Crisis • Environmental regulations • Banking regulator guidance (FDIC, OTS, Federal Reserve, OCC, Fannie Mae and Freddie Mac, SBA) • Formed the EBA in 1994 4/30/2010 EBA 2009 www.envirobank.org 7
  8. 8. Banking Issues • Credit & Trust Risk • Cash Flow Impairment • Collateral Devaluation • Direct Liability, Loan origination to foreclosure • Reputational Risk (Brand and Image) • Operational & Enterprise Risk • Market & Interest Rate Risk • Restructurings and Foreclosures • Sustainable Development & Finance 4/30/2010 EBA 2009 www.envirobank.org 8
  9. 9. Sustainable Finance in Banking Monetizing Opportunities and Risks • Carbon Disclosure Project • Carbon and Climate Principles • Infrastructure development (utility) • Green building developments • Renewable energy technologies • Green businesses/community dev • Sustainable Design/Remediation • Brownfield redevelopments 4/30/2010 EBA 2009 www.envirobank.org 9
  10. 10. Environmental Risk Management Stages for Financial Institutions • Risk Identification • Risk Transfer/ Financing • Risk Appraisal/ Evaluation • Risk Monitoring – Life Cycle of Loan • Risk Control 4/30/2010 EBA 2009 www.envirobank.org 10
  11. 11. Environmental Risk Management Issues • Bank Risk Tolerance • Business Environmental Risk • Distressed Assets& Restructurings • Loan modifications/renewals • Workouts, Foreclosure/Bankruptcy • Climate Change Risk • Bank Failures 4/30/2010 EBA 2009 www.envirobank.org 11
  12. 12. Committees • Risk Management • Technical • ASTM and Legal issues • Trust Activities • Global Issues • Membership & Business Development • Programs and Communications • Policy • Finance 4/30/2010 EBA 2009 www.envirobank.org 12
  13. 13. Accomplishments and Work Products • Benchmarking • Participation in Conferences • Training • Technical Support/Tip Sheets • Publications • Industry Leader – CMP – AAI – Surveys 4/30/2010 EBA 2009 www.envirobank.org 13
  14. 14. Tip Sheets • Environmental Risks to Lending • Lender’s Checklist for Maintaining Security Interest Exemption • Default & Workout Checklist for Environmentally Impacted Real Estate • Streamlined Due Diligence • Risks by Industry • Carbon Risk and Loan Portfolio Profiles 4/30/2010 EBA 2009 www.envirobank.org 14
  15. 15. Benefits • Networking/Social Media • Local and Global Forums • Resources- repository for reports, policies • Training/Education • Conferences/Meetings • Publications • Surveys • Webinars 4/30/2010 EBA 2009 www.envirobank.org 15
  16. 16. 2008 Survey Results Environmental Staff • 93% reported that your institution has a designated full-time Environmental Risk Manager or Environmental Policy Manager – 44% Credit Policy – 26% Real Estate – 19% Appraisal – 7% Legal – 19% Facilities/Properties Management – 41% Risk Management – 7% Asset Management – 4% Trust – 15% Corporate Gov. Affairs/Env. Affairs 4/30/2010 EBA 2009 www.envirobank.org 16
  17. 17. Does your Policy Require Environmental Due Diligence on • New Loans, Extensions & Renewal Transactions? – Prior to closing a loan- 89% Yes, 11% Sometimes – Prior to closing an existing Loan Extensions/Renewals- 48% Yes, 44% Sometimes – Monitoring during the life of the loan- 15% Yes, 37% Sometimes, 48% No • Majority of those who do monitor say it is performed upon renewal 4/30/2010 EBA 2009 www.envirobank.org 17
  18. 18. Emerging ERM Policy Issue- Vapor Intrusion Is vapor Intrusion an issue with your bank on real estate lending or trust transactions? 8% 11% Yes No 81% Depends 4/30/2010 EBA 2009 www.envirobank.org 18
  19. 19. Collaboration • Bank Regulators & Trade Associations • Export credit agencies • EPA and other Federal/State Agencies • Rating agencies • Standard Setting Organizations (ASTM, CMP & Others) • UNEPFI 4/30/2010 EBA 2009 www.envirobank.org 19
  20. 20. Training • Environmental credit risk management program • Technical issues – Tip Sheets • Sustainable Financing ,(green buildings) Redevelopment of brownfields, • Sustainable development/carbon risk underwriting • Management issues 4/30/2010 EBA 2009 www.envirobank.org 20
  21. 21. EBA San Diego Conference January 17,18 & 19, 2010 • Topics – Environmental credit risk management for distressed assets in workout, foreclosure and bankruptcy – Storm water management issues associated with foreclosed vacant real property – Carbon Risk Matrix & Assessment of High Carbon Emission Industries – Green building underwriting standards 4/30/2010 EBA 2009 www.envirobank.org 21
  22. 22. EBA San Diego Conference • Land Development Perspective on REO Management and Disposition Program, Understanding the Asset Complexities and Value Drivers, the Steps Beyond the Physical Due Diligence • Monetizing the Value of Sustainable Development and Certifications for Commercial Real Estate End Users • Guidance and Legal Strategies for Performing Comprehensive Environmental Audits of Commercial Bank Buildings, 4/30/2010 EBA 2009 www.envirobank.org 22
  23. 23. EBA San Diego Conference • Evolution of Green Building Due Diligence & Disclosure, Panel Discussion • Releasing Due Diligence Reports to Prospective Purchasers at Foreclosures, • Sustainability Management Maturity Model, (SM3), Enhancing Business Performance, • New Appraiser Requirements and the Revaluation of Commercial Real Estate 4/30/2010 EBA 2009 www.envirobank.org 23
  24. 24. EBA Web Site • Directory • Registration and payment • E-mail • Articles & Tip sheets • News & Articles • Members Only Section • BankNotes & Alerts • Resource list & Career Center 4/30/2010 EBA 2009 www.envirobank.org 24
  25. 25. “BankNotes” • Cover Story-Philosophical Message • Legislation / Regulations • Case Law – International, National, Regional • Banking Buzz, Commercial Real Estate and Insurance and Risk Management • International Activities • Articles of Interest / Member News • Committee Presentations • Members in the News 4/30/2010 EBA 2009 www.envirobank.org 25
  26. 26. What Next ? • How to join • Dues • Attend a meeting • Attend a Committee conference call or webinar • Membership ERM and Sustainability Survey • Global Expansion 4/30/2010 EBA 2009 www.envirobank.org 26
  27. 27. Environmental Bankers Association 510 King Street, Suite 410 Alexandria, VA 22314 USA 1-703-549-0977 jefftelego@envirobank.org 4/30/2010 EBA 2009 www.envirobank.org 27
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