Financial Institutions, Corporate Stewardship, and Sustainable Development:

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• Financial Institutions, Corporate Stewardship,
  and Sustainable Development
• Financial Sector Drivers for theEvolution of
  U.S. Environmental Laws and Practice

Moderator Ann L. MacNaughton, Merrill
Lynch Panelists Kenneth P. Cohen, ExxonMobil
Gary S. Guzy, Marsh USA Inc., Washington, DC
Matthew J. Kiernan, Innovest Strategic Value
Advisors Mindy S. Lubber, CERES (Coalition for
Environmentally Responsible Economies) June 10,
2005 Baltimore, Maryland American Bar Association
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Financial Sector Drivers for theEvolution of
U.S. Environmental Laws and Practice
Shareholder Demands for Greater Transparency
Emerging Solutions
Challenges

• Investor Network on
• Climate Risk
• Boards of Directors Engage
• Stakeholders Engage

• Building consensus about climate change risks
• Governance
• Corporate Awareness

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Financial Sector Drivers for theEvolution of
U.S. Environmental Laws and Practice
Trends in Pension Fund Investment Strategy
Emerging Solutions
Challenges

• Fiduciary Duty
• Pension fund consultants as gate keepers
• Relationship between mission and investments

• Broader array of risk
• Examples
• Walking the Talk

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Financial Sector Drivers for theEvolution of
U.S. Environmental Laws and Practice
A Multinational Corporate Perspective
Emerging Solutions
Challenges

• Public Dialogue
• Energy Realities
• Gap Analysis

• Stakeholder Engagement
• Ongoing Initiatives
• Global Leadership Forum

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Financial Sector Drivers for theEvolution of
U.S. Environmental Laws and Practice
Stakeholder Risk Management Strategies
Emerging Solutions
Challenges

• Private Environmental Law
• Corporate Governance
• Disclosure Requirements
• Evolving Fractured
• Federal-State Approach

• Evolving Rules of the Road
• Quality of Disclosure
• Underlying Management
• Managing to Uncertainty