NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, July 31, 2017

A new report analyzes how and why central banks (CBs) and development finance institutions (DFIs) incorporate environmental, societal and financial systems-level thinking into their activities. The report identifies five “on ramp” activities that these financial institutions use to address systems-level risks and rewards, and it suggests parallels to how long-term investors attempt to manage systemic risks.

Central Bank and Development Finance Institution Approaches to Investing in Global Systems analyzes six central banks (including two U.S. Federal Reserve System regional banks), seven DFIs, and one microfinance bank, all of which are known to be incorporating environmental, societal, or financial systems-level considerations into their programs. The report, commissioned by the Investor Responsibility Research Center Institute (IRRCi) and authored by William Burckart, Steve Lydenberg and Jessica Ziegler with The Investment Integration Project(TIIP), suggests that investors could learn from how the CBs and DFIs approach systemic risk issues.

A webinar is scheduled for Thursday, August 17, 2017, at 1 PM ET to review the findings and respond to questions. Register at no charge here. Download the full report here.