2017 Global Citizenship Report Executive Summary

Environmental and Social Risk Management There is increased attention globally on social and environmental justice issues, creating both an expectation and an opportunity for sustainable finance. The financing decisions we make, and our assessment and management of environmental and social risks, are integral to acting responsibly as we enable growth and economic progress. In 2017, we updated our Environmental and Social Risk Management (ESRM) Policy to align with international best practices for consultation with Indigenous Peoples, clarifying the need to exceed the requirements of national law, even in high-income OECD countries. We also began work with other leading global and regional banks and the United Nations Environment Programme Finance Initiative (UNEP FI) to conduct climate scenario analysis to evaluate climate risks and opportunities under three different global warming scenarios. This collaborative project will enable banks to work together toward alignment with the recommendations made by the Task Force on Climate-related Financial Disclosures (TCFD). 16