- UN Global Compact Network Poland (UN GCNP) and the Warsaw Stock Exchange (GPW) have opened a new edition of activities with the financial and banking industry as a part of the Green Finance Group appointed by UN GCNP at the request of the Minister of Finance and the Minister of Economic Development
- The meeting follows a master agreement concerning co-operation in support of sustainable finance tools
This year’s edition of meetings of the UN Global Compact Network Poland Green Finance Group opened with a debate featuring European Commission Vice-President Frans Timmermans held on 24 March 2021. The next meeting held on the GPW Trading Floor on 30 June 2021 focused on measures taken in Poland and an outline of the perspective of the Ministry of Finance represented by Katarzyna Szwarc, Capital Market Development Strategy Representative of the Finance Minister. The meeting was dedicated to the role and importance of ESG and the Capital Market Development Strategy in Poland.
UN Global Compact Network Poland and the Warsaw Stock Exchange signed a Memorandum of Understanding concerning support for sustainable financing tools in December 2020 in the presence of the Deputy Prime Minister, Minister of Economic Development, Labour and Technology Jarosław Gowin. The Green Finance Group is supported under master agreements between UN GCNP, the Ministry of Finance, the Ministry of Climate and Environment, and the Ministry of Economic Development, Labour and Technology. The mission of the Group is to establish strong links between the financial sector, politicians, and the UN sustainable finance agenda, in particular the UN climate policy.
The road map and initiatives of the new Capital Market Development Strategy Representative of the Finance Minister, presented at the meeting, suggest that the green revolution will come to the capital market, including Polish companies and investors who should be getting ready.
“Sustainable finance is a trend which has reached a point of no return. A generational change is taking place on the financial market. According to research, new generations of investors increasingly consider climate and social factors in investment decision. International institutional investors increasingly expect portfolio companies to follow clear decarbonisation and ESG reporting strategies. Much more than a matter of corporate social responsibility, it is a condition of protecting the competitive edge of our capital market. Elaborated by the Ministry of Finance, the Capital Market Development Strategy includes several measures in favour of sustainable financing, including the development of a green bond market and the introduction of a low-carbon index. Poland was the first country to issue green sovereign bonds. We want to follow up on that success in other market segments, including corporate and municipal bonds. We hope that Poland will become the regional hub of green financing in this part of Europe,” said Katarzyna Szwarc, Capital Market Development Strategy Representative of the Finance Minister.
Green Finance Group
As a next step in the partnership between UN GCNP and GPW, the Green Finance Group is holding meetings for the banking industry, investment funds, and insurers with representatives of the Ministry of Finance and development banks represented by the World Bank, the European Bank for Reconstruction and Development (EBRD), and the European Investment Bank (EIB) with active participation of the Polish Development Fund (PFR) and its agencies: Bank Gospodarstwa Krajowego (BGK) and the Industrial Development Agency (ARP). Meetings held by the Green Finance Group focus on capital allocation under the European Green Deal, investment packages and long-term implementation strategies necessary to put in place specific green initiatives, including onshore wind farms and an additional 12.5 GW of green wind energy by 2030, conversion of Polish railways to solar and wind energy by 2027, and the implementation of the Polish hydrogen strategy.
“In line with the Memorandum of Understanding signed last year, we have met in the framework of the Green Finance Group to discuss how businesses can better implement sustainable development goals, in particular the UN climate policy. Sustainable financing and ESG have emerged as key trends on the global financial markets. The Exchange engages in many educational and business initiatives in this area to be prepared for the anticipated changes,” said Izabela Olszewska, Member of the GPW Management Board.
The mission of the Green Finance Group is to engage in active dialogue with the financial industry and the public administration at the European, national, and local government level in view of challenges posed by the climate crisis, energy transition and decarbonisation in Poland, as well as initiatives taken under the Paris Agreement and the European Green Deal.
“This is exactly why we have worked with the Warsaw Stock Exchange to focus on ESG and the Capital Market Development Strategy as the first theme of our new series of meetings. Both topics are interlinked as pillars of sustainable development of Poland’s capital market. Joint initiatives are necessary to structure the implementation of the UN climate policy and the European Green Deal,” said Kamil Wyszkowski.
The meeting brought together representatives of EBRD, EIB, GPW, BOŚ Bank, IFC, ING Bank Śląski, PKO BP, BNP Paribas, BGK, Pekao SA, HSBC, EI, and PSIK. Upcoming meetings of the Green Finance Group will be offered in partnership with GPW.
The UN GCNP Green Finance Group was established in 2018 under an agreement with the Minister of Finance and the Minister of Investments and Economic Development at the Krynica Economic Forum. Ever since, the Group has been actively working to develop ambitious sustainable finance mechanisms and goals. Such goals cannot be attained without a fundamental shift in the approach to raising funds, allocating capital, and setting the direction of development for the capital market. Those themes are discussed in the annual “Green Finance in Poland” report published in partnership with the Institute for Responsible Finance, first released at the European Financial Congress.
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United Nations Global Compact is the world’s largest corporate sustainability initiative. UNGC Network Poland is its national network with an independent secretariat. It is a project office and a local contact and information point for Polish members and signatories of the UN Global Compact, implementing national and international partnership programmes. | www.ungc.org.pl
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The Warsaw Stock Exchange Group (GPW Group) operates trading platforms for shares, Treasury and corporate bonds, derivatives, electricity and gas, and provides indices and benchmarks including WIBOR and WIBID. The index agent FTSE Russell classifies the Polish capital market as a Developed Market since 2018. The markets operated by the GPW Group are the biggest in Central and Eastern Europe. For more information, visit www.gpw.pl
