Containers Printers: Sustainability is Non-Negotiable for a Packaging Firm with a Conscience

After a challenging 2020, this year has continued to present problems for businesses, individuals, countries and economies. Despite increasing difficulties in material availability, shipping routes, and pricing, says Container Printers CEO Amy Chung, the company has accelerated its transformation efforts.

Covid-19 brought workforce shortages, reduced visitor access to the Containers Printers (CP) site, and inevitable disruption to the supply chain. CP has risen to meet and overcome those challenges, says Chung, and it has remained operational throughout the pandemic.

Initiatives such as remote audits, combined with safe distancing, have prompted CP to embrace a new way of working. “Adopting the changes makes us more prepared to work this way,” she says, “and has accelerated some trends and projects, including the digitalisation of our factories.”

"The firm’s portfolio has diversified to include metal and flexible laminate packaging solutions for a global market, and sustainability is now front and centre."

Containers Printers was founded in Singapore back in 1981 with a humble, everyday product: the square cooking oil tin omnipresent in Southeast Asia.

The firm’s portfolio has diversified to include metal and flexible laminate packaging solutions for a global market, and sustainability is now front and centre.

That momentum has created a buzz throughout the CP hive. “We’re supporting customers to meet new packaging legislation, and sustainability targets,” Amy Chung says. Singapore’s new Mandatory Packaging Reporting (MPR) legislation requires companies to provide packaging data to the government.

The island state has announced its 2030 Green Plan, laying out national agenda on sustainability. This includes a path to carbon-neutrality and a circular economy, areas to which CP is committed.

Customers continue to request recyclable packaging, as well as packaging with recycled content — and the pace of change is accelerating. In the UK, the Plastics Packaging Tax targets packaging with less than 30 percent recycled content, starting in 2022.

CP is continuing research work with partners looking into advanced technologies, such as chemical recycling and digital solutions to support Lifecycle Assessments.


Elaine Yan Ling Ng: Designer Egged-on by Nature’s Potential for Unique Beauty

[caption id="attachment_20938" align="alignright" width="300"] Founder of The Fabrick Lab and Chief Material Innovator at Nature Squared: Elaine Yan Ling Ng[/caption]

The design world often looks to nature for inspiration, and Elaine Yan Ling Ng, a traditional weaver and innovative designer, finds magic in that marriage.

“I am always inspired by nature and its cleverness such as its innate engineered structure,” she shared with The Luxury Conversation. “Take an eggshell for example — it appears to be fragile, but it has a very strong chemical bonding, calcium carbonate, just like seashells.”

The British-Chinese artist is exploring this theme in collaboration with Nature Squared, a Swiss company that combines heritage artisan craftsmanship and sustainably sourced natural materials to create luxury surfaces. Before joining forces with Yan Ling Ng, Nature Squared specialised in bespoke projects, using feathers, bones and shells to deliver one-of-a-kind elegance.

“Bespoke work doesn’t usually involve repeat processes, nor does it maximise an existing supply chain or natural materials’ potential, which limits the amount of natural waste that can be used,” she says. “With eggshells, for example, most people see them as waste, but I see an endless playground and limitless resource.”

Some 250,000 tonnes of eggshell waste end up in landfill — and Yan Ling Ng is determined to harness this untapped resource in circular economies that create local employment and contribute to social sustainability.

Together, Yan Ling Ng and Nature Squared have launched CArrelé, a brand name derived from the periodic symbol for calcium (CA) and the French word carreler, which means to tile or pave. Handmade eggshell tiles are the first product in this ongoing commercial project, which aims to create an ecosystem that addresses issues of sustainability and waste.

“The inspiration came from the use of chicken eggshells as agricultural waste in medical and dental therapies,” she told Home and Decor. “I thought that if solid biological waste is good enough for the medical industry, that’s proof that it has great strength and stability. With a change of formula, these properties could potentially be used in other industries such as architecture.”

The Hong Kong-based designer makes regular visits to Nature Squared's factories in the Philippines and works with the R&D team to develop the eggshell tiles. The tiles are created using locally sourced white eggshells that are coloured using natural dyes and cured at room temperature.

“Eggshell is a renewable bio-ceramic that can serve as a de-carbonating filter because it has the preference to absorb and carbonate CO2 over other gases. This is a stark contrast to the traditional production of ceramic and porcelain wall tiles,” she explains. “The CO2 emission from ceramic tiles reaches an average of 180,000 metric tonnes a year. About 80 percent of the total CO2 output is emitted during the firing and drying process. We are committed to creating a zero-CO2-emission tile, which could absorb CO2 throughout the production process.”

Yan Ling Ng is an award-winning artist and Ted fellow. She graduated with a master’s in Design for Textiles Futures from Central Saint Martins College of Art and Design, London, and studied Business Sustainability Management at the University of Cambridge’s Institute for Sustainability Leadership. She founded The Fabrick Lab in 2013, where she serves as design director.

“Throughout my career I’ve always worked to bring technology and textiles together, with sustainability hovering at the back of my mind. But now it’s great because with the pandemic I’ve seen sustainability grow into a more popular and important topic for brands and consumers alike. I’m so glad, because in the last 10 years I haven’t really been able to make that the main focus of our studio as it wasn’t the hot ticket topic that would bring in the bread and butter. Now our studio can put that in the forefront and work on implementing sustainable approaches as part of our core services, which is exciting.”

For those interested in decorating with CArrelé’s eco-friendly multihued eggshell tiles, prices start at €595 per square metre.


Why Even the Most Profit Centered Businesses Should Care About ESG Issues

Investors and corporations that do not have an explicit mandate to manage social or environmental issues still have an implicit interest in such issues

The strongest way to manage risk is to consider the broadest number of issues material to all stakeholders

Financial performance and expected regulatory changes

By T. Robert Zochowski, Program Director Multi-Faculty Impact Investing and Sustainability Special Projects at Harvard Business School

[caption id="attachment_18314" align="alignright" width="280"] Author: Robert Zochowski[/caption]

Over the past decade, the proliferation of companies providing ESG metrics has increased substantially by a number of measures. In its 2020 Survey of Sustainability Reporting, KPMG noted that 96% of the G250 companies and 80% of the N100 provided sustainability reports, up from 35% and 24% in 1999 respectively.[1] However, reporting, often provided by a reporting, investor relations, or CSR team does not always equate to action for majority of the organisations. However, I would argue that both corporate executives and investors that do not have an explicit interest in social or environmental issues have a substantial implicit interest in understanding potential impacts and in managing risks related to catalyst events.

Materiality is a concept that is well rooted in financial reporting. In that context, it requires disclosure of all information that is could be reasonably expected to influence the decisions made by the primary users of financial statements on the basis of those statements. The Sustainability Accounting Standards Board, now named the Value Reporting Foundation, has advanced the idea that sustainability information can be material to investors if it is likely to pose a financial risk, and they have provided a number of tools to companies and investors in identifying likely material issues for a given industry. This view of materiality aligns closely with the traditional definition in that the primary stakeholder perspective considered is that of the equity or debt investors. A number of other organisations have advanced the idea of ‘double materiality,’ which is the idea that issues that are material to the aforementioned group as well as issues which are material to other stakeholders, such as employees, customers, communities, or the environment, among others, should be disclosed and managed. This greatly expands the constituent base to those whose needs may not have been historically considered under traditional financial reporting or investor and management attention.

However, I argue that paying attention to issues that fall under double materiality goes well beyond corporate beneficence; indeed, it is a critical component of risk management to the business. A recent paper by Jean Rogers, George Serafeim, and David Freiberg[2] documents the dynamic nature of issues considered to be financially material and hypothesises a pathway by which issues can rise, often extremely quickly, to the level of financially material from material to stakeholders. This can happen slowly over time, as climate change and emissions have, or rapidly, as with the #MeToo movement that advanced examination of corporate culture and harassment. The massive networks of Facebook, Instagram, Twitter, Google, and others have significantly increased the speed at which issues are disseminated and escalated globally, making significant catalyst events that turn issues affecting stakeholders, perhaps historically deemed remote, unimportant, or tangential, much more likely to become known and financially material.

Critically, the authors discuss how important proper organisational and industry response to the elevated demands of stakeholders is to preserving shareholder value. Proper risk management dictates that corporations should be anticipating and managing material issues to stakeholders; a business cannot operate at odds with stakeholders for long without these issues impacting the business itself and therefore investors. Anecdotally, it is easy to recall the number of corporate scandals that have emerged in recent years which seemingly took shareholders and managers by surprise but which would likely have been known if they were paying attention to a broader definition of materiality.

Indeed, information on broader materiality issues is already being digested by the markets. Research by the Impact-Weighted Accounts Initiative shows that environmental intensity[3] is correlated with lower equity valuations for several measures; specifically greater environmental intensity is negatively correlated with both Tobin’s Q[4] and the price to book value of equity ratios. This is after controlling for other determinants of valuation ratios, such as return on assets, leverage, firm size, capital expenditures, R&D expenditures, and dividends divided by sales. All models include industry, country, and year fixed effects. The estimates suggest that a firm with twice the environmental intensity has 2.4% lower Tobin’s Q and 5.2% lower price to book value of equity.[5] They also find that the negative association between environmental intensity and market valuation has become more sizable in more recent years since 2010. The same conclusion holds true for environmental intensity scaled by operating income.

Regulatory authorities also are recognising the importance of these issues. In the United States, the SEC requested feedback on climate risk disclosures in June 2021, with a rule proposal expected by the end of the year. In the European Union, progress is progressing rapidly. An proposed update to the Non-Financial Reporting Directive (NFRD), which lays down the rules on disclosure of non-financial and diversity information by certain large companies, debuted last year, the Sustainable Finance Disclosure Regulation (SFDR), which lays out disclosure requirements for financial market participants and financial advisors on their underlying investments debuted in March 2021, and the Corporate Sustainability Reporting Directive (CSRD) would amend the existing requirements of the NFRD to extend the scope to all large companies in European Union Member States and companies listed on regulated markets (except listed micro-enterprises), require the audit of reported information, include more detailed reporting requirements, and provide information in a machine readable format for faster incorporation into capital markets. These are just a few of the expanding reporting requirements and voluntary frameworks happening globally.

For investors and corporate executives, the clear takeaway is the following: proper discharge of one’s fiduciary duty requires understanding and management of issues which historically may have been considered out of scope or corporate charity. Protecting long term-shareholder value requires managers to look around corners and anticipate future issues that may not be immediately financially material but which could lead to catalytic stakeholder defections should the right catalyst event (as defined in Rogers et al, 2019) occur.

Footnotes
[1]The N100 refers to a worldwide sample of 5,200 companies. It comprises the top 100 companies by revenue in each of the 52 countries and jurisdictions researched in this study. These N100 statistics provide a broad-based snapshot of sustainability reporting among large and mid-cap firms around the world. The G250 refers to the world’s 250 largest companies by revenue as defined in the Fortune 500 ranking of 2019. Large global companies are typically leaders in sustainability reporting and their reporting activity often predicts trends that are subsequently adopted more widely. https://assets.kpmg/content/dam/kpmg/be/pdf/2020/12/The_Time_Has_Come_KPMG_Survey_of_Sustainability_Reporting_2020.pdf
[2]Freiberg, David, Jean Rogers, and George Serafeim. "How ESG Issues Become Financially Material to Corporations and Their Investors." Harvard Business School Working Paper, No. 20-056, November 2019. (Revised November 2020.)
[3]Environmental Intensity is calculated as total environmental impact divided by revenues
[4]Tobin’s Q is a measure of the market value over the replacement value of assets.
[5]Freiberg, David, DG Park, George Serafeim, and T. Robert Zochowski. "Corporate Environmental Impact: Measurement, Data and Information." (pdf) Harvard Business School Working Paper, No. 20-098, March 2020. (Revised February 2021.)


From the Black Plague to the Covid Crisis, Quarantine has Affected Maritime Trade

An overly familiar term in the 2020s, “quarantine”, dates from the 14th Century and is derived from quarantena — Italian for 40 — the number of days ships were held in the port of Venice, crews aboard, during the Black Plague.

The link between shipping and pandemics has been made many times: naval transport was the origin of the Austronesian expansion — and globalisation. Triangular trade routes between Europe, Africa and the Americas in the 15th, 16th and 17th Centuries were the genesis of industrial spread.

Even in the era of cargo planes, maritime trade still accounts for the movement of some 80 percent of goods movement.

Governing trade and supply — and any change to consumption and distribution — will have a direct impact on shipping.

The Covid pandemic hit the shipping industry from several angles. The understanding that ships have the potential to spread viruses, vermin and disease, developed in 14th Century Venice, is still valid. Lockdowns have brought an estimated 4.1 percent plunge in trade in the West — a scary prospect for shipping companies in South East Asia.

Even discounting economic consequences, the human element of the pandemic has hit the shipping industry. Crews were stuck at sea during lockdowns, unable to leave ships for months; some went on strike, and in Australia vessels were detained by the government for breaching labour laws. The effects of the pandemic could have crippled maritime trade, but a shift in consumer trends prevented it.

While many thought the shipping industry would crumple under the strain of the pandemic, some companies reported burgeoning profits in 2020. Market share was sacrificed in favour of stable, but increased, freight rates. This led to a bumper year for shipping companies. Maritime trade started a new path.

The cost of shipping goods from the East to Europe increased five-fold from March 2020 to March 2021, according to a report by Clarksons Research. Many analysts, including those working for Alphaliner, believe carriers should not expect any weakening in the charter market any time soon.

Freighters and container ships have historically operated at minimum profits. A battle for market share has dominated business strategy for the largest seven firms in maritime trade — and it’s paying off. The big seven, co-operating in three alliances covering 85 percent of market share, have become incredibly wealthy. And they stand to gain from new price levels.

Cost isn’t the only changes that will affect the future of sea trade. There has been a shift to smaller container ships that rely on speed and flexibility.

There are also moves to inter-regional trade among East Asian countries. As companies attempt to shift manufacture to countries other than China to avoid US tariffs, countries including Cambodia, Vietnam, Laos and Bangladesh have boosted production, and are looking to the future of outsourced labour.

Income in the region has risen — and the appetite for manufactured goods has followed suit. A new wave of intra-Asian trade could mean a move to down-sized containers — and a shift at the centre of maritime trade.


Aibek Kaiyp: Jusan Bank’s CEO Champions Change, Hits New Heights in Service Provision

[caption id="attachment_20966" align="alignright" width="300"] Jusan Bank Chairman & CEO: Aibek Kaiyp[/caption]

First Heartland Jusan Bank, one of the largest banks in Kazakhstan, is developing its ecosystem to go beyond traditional services.

At the helm in this period of transition is Aibek Kaiyp, CEO and chairman of the bank’s management board. His career with Jusan financial group began in 2018, when he headed First Heartland Capital, an investment management company in the First Heartland Group.

In 2019, First Heartland acquired 99.5 percent of Tsesnabank shares and changed its name to Jusan Bank. That same year, Aibek was appointed deputy chairman of the Jusan Bank management board, supervising non-performing debts.

The area was one of the highest priorities for Jusan; non-performing loans in the portfolio inherited from Tsesnabank JSC amounted to 850 billion tenge ($2.2bn) — more than 90 percent of the bank's assets.

"I headed the recovery of distressed assets,” Kaiyp recalls. “We singled out the companies that failed in their obligations.” Jusan played hardball with defaulters. “Each of the problem borrowers had their own reasons, problems, and claims. Each case was worked out not just individually, but literally manually," Kaiyp says.

Very soon, consistent and systematic work brought the desired results. During 2019 and 2020, the bank recovered a large amount of assets considered non-performing. “Many borrowers took the decision to repay the loans properly,” says Kaiyp. “That was a period of challenges".

By the end of 2019, Kaiyp had become the chairman of Jusan Bank’s management board. With a new team of top managers, he implemented what has become a successful development strategy.

This is evidenced by financial and business indicators based on the strategy being implemented in stages. "We focused on global trends of deep transformation of the financial market and their integration into Kazakhstan,” the CEO says. “Analysing various development scenarios, we placed a bet on creating a new ecosystem based on three business platforms: Jusan Retail, Jusan Business and Jusan Private Banking.

“This was so that each of our clients could solve their financial problems and tasks using the Jusan mobile app. In 2020, we implemented several significant projects for the bank at the same time. We relaunched the Jusan Internet banking and mobile apps for retail customers, and Jusan Business for SMEs. We also launched the Jusan Marketplace — a store with a wide range of goods and services — and Jusan Mobile, a virtual mobile operator, in partnership with one of the largest local operators."

Under Kaiyp’s leadership, Jusan Bank has completed the independent asset quality review (AQR) by the National Bank of the Republic of Kazakhstan — and confirmed the quality of its assets and compliance with all Kazakhstan and international standards. The development of the digital ecosystem was timely, and allowed the bank to transfer products online and direct customer service to remote channels.

And this was happening in troubled 2020, under the shadow of the pandemic and the challenges of quarantine. Every effort was taken to minimise risk for customers and employees.

As 2021 approaches its close, Jusan Bank and its team reflect on an eventful period. The most significant events include the completion of merger with Kazakhstan's ATFBank, which Jusan purchased at the end of last year, and the acquisition of a stake in Kazakhstan's leading mobile operator, Kcell.

Before joining Jusan, Kaiyp worked with HSBC in Almaty as an analyst of the global banking division. He later joined the Kazakhstan branch of the largest Russian bank, Sberbank.

Aibek Kaiyp is a representative of a new generation of managers trained by the international educational programme Bolashak, established 28 years ago by former Kazakh president Nursultan Nazarbayev. It has become recognised as one of the most important management training initiatives in the country.


Permanent Output Losses from the Pandemic

In the World Economic Outlook, published October 12, the International Monetary Fund (IMF) slightly lowered its forecast for global economic growth this year to 5.9%, while maintaining a forecast of 4.9% for 2022. It also emphasized the “divergence” in the pace and extent of economic recovery in different countries.

Two factors are highlighted in explaining the divergence. First, there are the different paces and extent of vaccination in different countries, that is, the ‘Great Vaccination Divide’. The WEO report shows a positive correlation between vaccination rates and upward revisions in country growth projections since April. The second factor corresponds with national differences in the fiscal space available for recovery support via public policies.

The IMF referred to “lasting imprints” left during divergent recoveries, with emerging and developing economies suffering deeper medium-term damage than advanced countries, on average. Most countries are now forecast to have lower GDP in 2024 than projected in January 2020 before the pandemic. The exceptions are the United States and emerging countries in Eastern Europe, for which higher GDP than before is forecast (Figure 1).

[caption id="attachment_20970" align="aligncenter" width="585"] Figure 1: Output losses relative to pre-pandemic trend, 2024. Note: EMs = emerging market economies; LAC = Latin America & the Caribbean; SSA = Sub-Saharan Africa; EMDEs = emerging market and developing economies; ME&CA = Middle East & Central Asia; CHN = China; AEs = advanced economies. Source: IMF (2021), World Economic Outlook, October.[/caption]

The divergence in economic recoveries is also manifested in labor markets and in the levels of utilization of productive capacity. The IMF projects higher job losses relative to pre-pandemic trends through 2024 in emerging and developing economies.

It is necessary to distinguish, on the one hand, the permanent output loss resulting from the pandemic and, on the other, any possible consequences of the pandemic for future GDP trajectories. Comparing previously predicted and actual trajectories with what happened during the pandemic shows a definite loss. Even if one hypothetically supposes an exact return of the economy to the point where it would be according to the original trajectory, with a return to the growth rate prior to the pandemic, all the GDP not generated during the crisis would be permanently lost.

This is different from crises associated with industrial or financial cycles common in history because, in those cases, in general, some period of above normal or trend growth will have occurred previously. In the pandemic there has been only the loss side.

There is also a high probability that ‘scarring’ prevents a complete return to levels of GDP that were projected before the pandemic. In the case of a recovery in the form of an ‘inverted square root’ (Figure 2 – see Canuto (2020)), the permanent loss of GDP would include the differences between GDP levels projected before and after, even assuming a return to the potential growth rate prior to the pandemic.

[caption id="attachment_20971" align="aligncenter" width="526"] Figure 2: Recovery in inverted square root form.[/caption]

As discussed previously, the pandemic is causing scarring in labor markets. Long-term unemployment leads to skills erosion. The quality and quantity of hours in human capital formation is also being negatively impacted.

The pandemic will leave other scars, as discussed by Diggle and Bartholomew (2021). Financial support from the public sector has made it possible for ‘zombie’ companies to survive—firms incapable of generating returns and meeting debt services in the ‘new normal’ conditions. Public support prevented the death of otherwise viable companies, but the side effect of maintaining zombies is, in turn, an impediment to the improved reallocation of resources.

Experiences with strong negative shocks also have persistent impacts on the beliefs and moods of companies and businesses, leading them to greater levels of risk aversion in financial and budgetary decisions. It is not by chance that, historically, savings go up during pandemics.

On the other hand, the pandemic has had a positive productivity shock in sectors where there was some business reluctance to accelerate digitization and automation, as revealed in some recent surveys of corporate managers. Certainly, the challenges in terms of the need to retrain the workforce have also increased.

The IMF WEO report included an upgrade to the medium-term scenario for the U.S. economy, which may be taken as including a favorable assessment of the effects of the Biden administration's fiscal program, for which the feasibility of political approval was certainly facilitated by the pandemic crisis. This arguably can be included among the ‘positive shocks’ from the pandemic.

The scars, with different depths in different countries, will limit the extent to which the recovery will bring economies closer to their pre-pandemic trajectories. The shorter the recovery, the greater the permanent loss of GDP arising from differences between projected GDP before and after. This is bad news in particular for emerging and developing economies that, according to the IMF report, are on the downside of the “divergence of recoveries”.

What about the growth trends after the pandemic, with scarring effects taken into account? Is there any reason to expect growth to change up or down as a lasting consequence of the pandemic?

Here, there is a danger that national economic policies will focus more on risk prevention and lead to a retreat from the productive integration across borders that marked globalization in the decades prior to the global financial crisis. This integration was already subject to pressure in the opposite direction before the pandemic. The primacy of efficiency and cost minimization could give way to security against the risk of shocks and supply chain resilience. The supply disruptions that have marked the current moment of recovery from the crisis could be used as a justification for this.

It remains to be seen how far the demarcation lines of what will be considered ‘strategic’ by different countries will be extended. But moving towards closing of markets tends to negatively affect the future evolution of productivity. And one cannot lose sight of the exuberant result that accompanied globalization in terms of global poverty reduction and less inequality between national per-capita incomes.

One must also consider as a possible positive consequence of the pandemic the strengthening—apparently the case in many countries—of domestic political support for the pursuit of sustainable and inclusive growth. For now, however, there are permanent losses of GDP.

About the Author

Otaviano Canuto, based in Washington, D.C, is a senior fellow at the Policy Center for the New South, a nonresident senior fellow at Brookings Institution, a professor affiliate at UM6P, a professorial lecturer of international affairs at the Elliott School of International Affairs - George Washington University, and principal at Center for Macroeconomics and Development. He is a former vice-president and a former executive director at the World Bank, a former executive director at the International Monetary Fund and a former vice-president at the Inter-American Development Bank. He is also a former deputy minister for international affairs at Brazil’s Ministry of Finance and a former professor of economics at University of São Paulo and University of Campinas, Brazil.


Laura Penna: Pandemic Shines a Light on Plight of Disadvantaged Communities — and Bolsters Social Impact Investment

[caption id="attachment_20980" align="alignright" width="300"] Head of Group Social Impact Banking: Laura Penna[/caption]

UniCredit continues to focus on financial inclusion and positive social impact.

The pandemic has put the spotlight on social issues, says UniCredit’s Laura Penna, head of Group Social Impact Banking. “We’re seeing much wider awareness, not only from governments and the EU, but also within corporations and the financial sector.”

UniCredit’s Social Impact Banking (SIB) programme has been active since the end of 2017. Reflecting on changes in the social-impact landscape, Penna says, "Companies want to be part of the solution and offer new products and services to support social needs".

Attention to societal support will further be empowered by the EU Recovery Fund, which will direct resources towards health, education, inclusion, and support for disadvantaged people. “It will provide the social impact sector with a completely different scale of funding,” Penna believes.

The sector is maturing, given the evolution around social taxonomy and shared standards at EU level. “That will significantly help the financial system to increasingly support societal challenges and avoid ‘impact-washing’,” Penna says. “That is particularly important considering the on-going ‘green transition’ that must be managed in a holistic way, taking into full account the related social impacts.”

Social challenges are many and varied across Europe. Issues around poverty and unemployment are pressingly relevant in many countries and regions. “There are also differences in training and education needs,” she points out. “According to the OECD / INFE 2020 international survey of adult financial literacy, around half of the EU adult population does not have a good understanding of basic financial concepts.”

Aging populations and the related pressure on the social and health system are increasing across the continent. “The pandemic revealed the urgent need of social and health system for this fine-tuning and re-assessment.

“In some countries, we are seeing our society change from welfare state to community welfare, where the role of governments in directly managing social infrastructures and essential services has been delegated to the private sector.

“This means that the role of banks as social actors must change. We need to better understand the social priorities in each of our communities and provide the right kind of support to make a concrete positive contribution in the short and long terms.”

But who, exactly, is social impact banking aimed at? Penna has a simple answer. “Our first aim is to improve accessibility to finance and related services for vulnerable groups, including women, the young, the elderly, and fragile enterprises such as start-ups, NGOs, and micro-businesses.

“We combine lending with support by improving financial skills and raising awareness.” Statistics show that the pandemic has had a particular impact on the livelihood of women. Last year, UniCredit launched a dedicated offer in Italy specifically aimed at female entrepreneurs and companies with a focus on women and families.

“In addition, we also help companies become more ESG-focused,” Penna says. “We support their transition and mobilise capital towards the UN’s Sustainable Development Goals. All projects and initiatives we support must have a concrete and measurable social mission with a wider group of indirect beneficiaries.”

UniCredit also works with various stakeholders to drive social inclusion and sustainability within communities. The Finance 4 Social Change Interreg project, in which UniCredit was a main partner, aims to build impact investing capacity and social entrepreneurship across the European Danube region.

How the social impact banking sector will evolve depends on a few factors, Laura Penna says. “I believe there will be a gradual adoption of common standards among all relevant financial actors, driven by the new EU social taxonomy. This will increase capital flows towards social causes as part of the ESG framework.”

The overall offer of sustainable finance and inclusive finance in Europe will grow, she believes. “This will likely be accompanied by more examples of multi-stakeholder projects for the benefit of local communities and increasing attention to human rights, starting with the employee, and stretching across the whole supply chain to the end client.”


Johan Thijs: Proud, Profitable and Prepared for Anything - KBC Weathers the Storm

[caption id="attachment_20978" align="alignright" width="300"] KBC Group CEO: Johan Thijs[/caption]

“In March 2020, Covid knocked on the door,” recalls KBC Group CEO Johan Thijs. “We went into crisis mode.”

Belgium — KBC has its headquarters in Brussels — was badly hit. The following months held something of a nightmare for everyone, and the KBC Bank didn’t get off lightly: the country was in complete lockdown for six months.

It took a while for the gravity of the crisis to sink in. “A lot of Belgians went skiing and returned with Covid,” says Thijs. “Belgium was one of the worst-hit in Europe. We put company in crisis mode: daily meetings with the executive committee, which was temporarily expanded with the Country Managers from our core countries.”

The primary concern at KBC was to analyse the new pandemic’s impact on the bank’s liquidity position. Operational performance continued as normal and liquidity was stabilised — not that there was much choice. “As a critical institution, we are obliged by law to always be functioning. As of day one, we shifted the staff to remote working.”

"Thijs has been nominated three times by Harvard Business Review in its hunt for the world’s Top 10 CEOs. He has been driving KBC’s performance with the aim of being best bank in Europe."

The staff, in this case, meant KBC’s entire team: 41,000 people worldwide. “We had anticipated this from day one of lockdown.”

That forward thinking paid-off. KBC was “in a position to put all the staff at home with no technical issues”. Not a single day was lost, Thijs says proudly — “and not a single day was from a position of concern.” After a week, the bank board felt that the organisation had moved to an improved situation. There were still some jitters for the second quarter. “We slashed costs by six percent, saving €160m,” says Thijs.

“I’m proud of the way we managed the crisis: cutting costs and making sure our employees and our customers were safe”. In analysts’ reports, KBC stands out for its performance under duress. Johan Thijs and the bank staff and board didn’t get overconfident.

“We immediately shifted one gear up to anticipate what would happen in 2021 and 22. The economy of Europe had taken a hit, and this could hit the portfolio. We started anticipating potential impacts, and put €800m aside as contingency fund. We were able to do this because we were well capitalised.”

KBC Group has been left with renewed confidence in its abilities and resilience. “Whatever goes wrong Covid-wise in 2022 will have no effect on us,” says Thijs. “There will be no impact we haven’t already written off. This is a huge plus for investors. Banks will again be able allowed to pay dividends.”

When others became aware of the bank’s resolute performance, KBC stock rose appreciably. And it remains one of the best-quoted financial stocks in the markets, Thijs says.

“The economic rebound will happen, and the (financial) impact of Covid will not be to the same extent as was anticipated. We are looking forward to stability in the long run, stability which will be provided to the outside world.”

Sustainability is part of that future, says Thijs. In their contacts with midcap business clients, KBC's relationship managers have noted “a growing interest in a more sustainable business model. That interest is being driven by the changing expectations in society, but also the changing regulations which are placing sustainability ever higher on the agenda.”

KBC has tightened its policy on fossil fuels. Persistent signals from society indicate that the use and exploitation of fossil fuels is highly damaging for our planet’s future. “KBC’s updated policy relates to abstaining from any direct financing, insuring, advising and investing in the coal industry” explains Thijs. Moreover, from 2030 on, KBC will abstain from all financing or insurance of and advisory services to energy companies which have any coal-fired energy production capacity.

The move recognises the fact that limiting carbon emissions from the burning of fossil fuels and the transition to alternative energy sources are key factors in bringing global warming under control.

KBC communicates this focus on sustainability to its business clients. “The new policy makes clear what is expected of them in concrete terms,” says Thijs. “KBC is actively contributing to the achievement of the objectives set out under the United Nations’ Collective Commitment to Climate Action.” KBC became a signatory in 2019.

“This stricter policy comes on the heels of the already fundamental adjustment of our coal policy that we carried out on July 1, 2020. Since then, we have not accepted any energy firms as new clients if they operate coal-fired power stations or are active in the extraction or processing of coal for energy purposes.

“We also took a considerably stricter line with existing clients in that sector, reducing the permitted limit for their dependence on coal-based energy production from 50 percent to 25.”

KBC rolled-out a new policy on diversity and inclusion and updated the socially responsible investment policy of the KBC Group Treasury and the KBC Pension Fund. A pilot project was launched to test the implementation of new measurement instruments, including PACTA and PCAF.

“These instruments provide a better picture of the climate impact and transition of KBC and of certain sectors. KBC has also introduced or revamped a number of policies that contribute to the greening of business mobility. We have formulated explicit and ambitious non-financial sustainability targets.”

There are mandatory transition plans for coal firms and coal-fired power stations, and KBC is redoubling its efforts to reduce its own ecological footprint.

Johan Thijs has been nominated three times by Harvard Business Review in its hunt for the world’s Top 10 CEOs. He has been driving KBC’s performance with the aim of being best bank in Europe. It is ranked fifth for innovation, and is rated the “most digital and operative” bank in the world.

“Keeps me sharp,” laughs Thijs. “I’m always inspired by other industries. I was looking onto why Google and Amazon are so successful — I’m a data scientist by education, intrigued by data.”

“When I saw what other industries were doing, we could bring this to the banking industry. We changed the way we approach our customers. When it comes to inspiration, we credit other industries we observe.”

KBC will fully tailor financial services to meet customer needs, in a pro-active digital first manner. “This is a game-changer,” says Thijs, “a new strategy as the ultimate goal of all financial institutions: to be data-driven.”

KBC’s AI system, dubbed Kate, is already putting in 24/7 on the AI front for customer services. “Kate will find your solution,” says Thijs. “It understands 90 percent of customer’s questions, but it is not yet able to provide always the right solution. The ambition is clear: within two years Kate will understand everything and will be able to provide the appropriate solution in the retail client segment.”

Johan Thijs and KBC Group's chief innovation officer Erik Luts say Kate's first six months have gone well. Almost half of the 1.6 million customers using KBC Mobile are “open towards Kate”. Some 781 000 unique customers have clicked on or used Kate at least once, resulting in 2.4m conversations to date — a third of which resulted in further action.

Since the end of November 2020, private customers at KBC have – as standard – been able to call upon the services of the digital assistant. Kate proactively provides personalised and relevant solutions at the right time in KBC Mobile for customers who want them.

Independent international research agency, Sia Partners, has crowned KBC Mobile the world’s best mobile banking app, explicitly referring to KBC’s digital assistant Kate and its customer-centric approach. This recognition is doubly rewarding for KBC, because the scope of its survey has expanded to include 135 banks from 17 countries.


Bon Courage: Hard Work, a Tight Team and a Bold Approach Have Taken Le Groupe La Poste Ahead

[caption id="attachment_20983" align="alignright" width="300"] Director of Strategy: Diane Abrahams[/caption]

Le Groupe La Poste’s director of strategy, Diane Abrahams, believes in challenging the status quo. “We must have the courage to surround ourselves with people who contradict us,” she says. “They help us escape our own cognitive biases.”

In 2015, Abrahams joined Le Groupe La Poste's Service-Mail-Parcels business unit; she was appointed director of the Paris Nord Gonesse Mail Industrial Platform in 2016, leading 650 workers into industrial modernisation. She became head of strategy, partnerships, and innovation at Le Groupe La Poste in 2019, the position she currently holds.

Her career path began in 2008 as sustainable development officer for a social housing company after graduating from the prestigious Ecole Polytechnique and from Ponts et Chaussées. She later joined the sub-directorate for sustainable development of the French Civil Aviation Authority as head of the emissions unit.

In 2012, Abrahams joined the French Ministry of Ecology, Sustainable Development and Energy as an advisor in charge of nuclear safety and security and technological risks. She was also in charge of moving to a circular economy and governing policies on waste and environmental health.

Diane Abrahams is involved with associations encouraging young women to take up scientific careers, and secondary school students from disadvantaged social backgrounds to pursue higher education.

“I joined the La Poste Group because it is a company that is highly innovative, a pioneer in the environmental field and capable of testing services that are intensively human, such as visits to the elderly, as well as services that are increasingly technological, such as VR-augmented mail or digital certified identity

“It has a very strong social model; 7.7 percent of our employees are recognised as disabled, and we consulted more than 140,000 people — 135,000 of them postal workers — to draw up our strategic plan,” she says. “It's exciting to work for a company with this culture: we innovate, and we do so with extra meaning. It's very strong.

“The stakes are not only enormous — €31.2bn in sales, 249,000 employees — but above all, particularly human. Le Groupe La Poste wants to retain as many postal delivery jobs as possible, even though the volume of mail has halved in 10 years.”

La Poste’s bank is the first to offer services to vulnerable people in France, and the only option for those excluded from traditional banking. “I get up in the morning for the people who need us, to find long-term solutions,” she says.

To be a strategy director at the end of one Strategic Plan (2014-2020) and about to build a new one projecting to 2030 is “special”, she says. “We put all the subjects on the table, nothing was taboo. My added value was to ensure that we didn't forget any strategic option, that we didn't let short-term habits win out over strategic ambition. We have remained coherent on the strategic big picture, and we haven’t left any central questions unanswered. It's an exciting collective challenge.”

Like all successful businesses and operations, it comes down to an effective workforce, she believes. “My team is small, and must have the particular ability to cross-functionalise projects, subjects, solutions and ideas from one business line to another within the group.

“The team members must all have a clear idea of what their colleagues are doing. We must get along with one another, otherwise we are no longer useful. Teamwork is a real strength: we did not call on any outside consultation to produce the 2030 strategic plan of the group.

“It's a team that is curious about everything, that has to be able to slip in the right contact or the right idea from outside. For that, they have total autonomy. They also need to ‘press where it hurts’ sometimes, which requires a lot of rigour and finesse.”

Diane Abrahams sees her role in La Poste as ensuring that the strategic options of a branch or subsidiary do not destroy value elsewhere in the group. “I believe that this mixture of free creativity and more austere instruction is ultimately a richness in any team.”

What are the key traits of a good corporate leader? “A leader who surrounds himself with a team of diverse profiles,” she replies. “Only diversity offers new ideas, abundant brainstorms, points-of-view that illuminate blind spots. I think that the similarity of profiles and hires in a team is deadly.

“A good leader applies the principle of subsidiarity, does only what his departments or teams cannot do. A corporate leader must be a bit stubborn on the vision, square on some objectives, exemplary and uncompromising in his or her own practices with respect to speech and values. But then they must be able to delegate. Otherwise, the leader’s own added value will be less than what it could be.

“A good leader knows the field, and hears the field. I am struck by how quickly we can forget that, behind a PowerPoint presentation or a sentence in a decree, there are people, places, working conditions... A regular reality check seems indispensable for leadership that produces positive added value.

“When I see a leader to whom no one dares to say no, I know that he or she has reached the end of their usefulness.”


Le Groupe La Poste: Committed to its Customers — and Sustainability

Since the 15th century, French postal service Le Groupe La Poste has been connecting the country, keeping pace with societal changes and continuously serving the public.

Faced with the current decline in mail volume, and the boom in digital and e-commerce, the group is reinventing itself with a strategic plan — "La Poste 2030, Committed For You" — setting-out the ambition, objectives, and priorities to be achieved by 2030. The plan is based on a participatory approach, with input from 135,000 La Poste employees and 6,500 customers and elected representatives. "Teamwork is a real strength: we did not call on any outside consultation to produce the 2030 strategic plan of the group," said Diane Abrahams, Le Groupe La Poste’s director of strategy.

Groupe La Poste has set itself the target of developing sustainable sources of growth in buoyant markets. Through profitable growth, it can continue to invest and achieve a sustainable business model.

“We are pursuing our ambition of becoming the leading European platform for links and exchanges, human and digital, green and civic-minded, at the service of our customers in their projects and of society as a whole in its transformations,” explains chairman and CEO Philippe Wahl. To achieve this and ensure profitable growth, the group's plan is based on seven strategic priorities.

The first is to serve its customers with the highest level of quality — and acquire new ones, including young professionals. The range of services is meant to be digitally accessible 24/7, and customer-centricity is assured.

La Poste intends to innovate and develop personalised services that respond to emerging customer needs and habits. At the end of this year, the La Poste mobile application will feature a real-time location tracker. It will enable customers to access all postal services in their vicinity. The same application can be used to consult the parcel-tracking service of other operators.

La Poste Ventures, a corporate venture-capital fund, has been launched to identify start-ups that generate added value for customers.

Another priority is to be ever more present by sharing the combined power of the group's physical, digital, and human networks with customers.

With close relationships with local authorities and citizens, La Poste is consolidating its regional presence. It has set itself the goal of increasing the number of access points with at least one postal service from 32,000 points to 40,000 by 2025. La Poste will be providing "l'appel facteur" (the postman’s call) service through which people can contact — online or by voicemail — their delivery person. It will be possible to arrange a home appointment within 24 hours.

To accelerate matters, the group is developing digital trust services, such as digital identity certification, and contributing to digital inclusion as a strategic priority. Digital trust will be maintained with a data-ethics policy and by taking part in the founding of a French digital sovereignty hub. To accelerate the transformation, the group deploys a digital culture among its employees.

For its customers, La Poste will build on its laposte.fr website, which is used by 25 million unique users each month. This will become a benchmark open platform for all types of dispatches for private or business customer needs.

The group aims to maintain its position as a leader in ecological transformation, and to ensure its services are accessible to all. As a pioneer in the ecological transition — it has been carbon-neutral since 2012 — the company is protecting the environment and aiming for zero emissions.

La Poste and its subsidiaries aim to meet customers' expectations by reducing the group’s carbon footprint, and sharing and transmitting the real impact of the postal products and services.

It has also set itself the target of being the first company to be SBTi-certified for resources. In terms of logistics, the group is the leader for ecologically friendly deliveries in France and Europe, helping to make city air more breathable. The transport and delivery of goods will increasingly use carbon-free solutions.

In tangible terms, the objective is to achieve 100 percent green deliveries in 225 cities across Europe, including 22 French centres, by 2025. La Poste aims for nothing less than truly responsible e-commerce.

In terms of finance, La Banque Postale aims to become Europe's No. 1 institution for positive-impact finance. It is committed to achieving zero net-carbon emissions by 2040 for all banking activities — 10 years ahead of the Paris Agreement recommendations. It is already the first general fund manager to provide 100 percent socially responsible investment, with a certified label.

Drawing on six centuries of experience and unifying public service missions, Le Groupe La Poste has defined its purpose as a mission-driven company. At everyone's service — and of use to each individual — La Poste is a people-orientated company with a local presence that develops exchanges and builds essential links by contributing to the wealth of society as a whole.

By giving itself a purpose, La Poste formalised its commitment to conducting its business in a responsible manner. This anchors its desire to accompany society in its major transitions: digital, territorial, demographic and ecological. La Poste is a bridge between history and the world of tomorrow.

La Poste is not limited to geographic boundaries. It is the number one parcel service in Europe. Through its subsidiaries, it operates in 48 countries and has 40 percent of its €31.2bn revenues abroad. It is committed to doubling its international revenue value in 2030 via profitable sources of growth and seized diversification opportunities.

By 2030, Le Groupe La Poste will be one of the world's top 10 e-commerce service operators — and the European leader in urban logistics. The strategic plan focuses on the development of cross-border flows within and without Europe, with the goal of quadrupling its market share.

For La Banque Postale, 20 percent of its NBI will come from international business by 2025 — notably through specialised financing and the development of CNP Assurances, as well as development opportunities in Africa.

The success of this ambitious strategic plan requires commitment from 249,000 postal workers. They are central to the new corporate social pact. Innovative career paths are in place to promote professional development and training in key areas such as customer culture and digital technologies.


BLKB: Sustainable by Conviction, not  Merely by Convention

BLKB is a future-orientated Swiss bank — with history.

It was founded 150 years ago to meet local financial needs and has been taking responsibility for its region ever since. Today, BLKB’s forward-looking orientation expresses its comprehensive sustainability efforts.

With a focus on people, society and the environment, BLKB's mission is to create a positive and responsible impact. Employees, customers, business partners, the region and the environment benefit from this added value.

Broad Interpretation of Sustainability

BLKB's approach is distinguished by a holistic and comprehensive understanding of sustainability. This is primarily about taking the long view, asking whether today’s actions will still be correct tomorrow. "That's why we also talk about future orientation at BLKB," explains Marilen Dürr, head of sustainability at BLKB. "Future orientation expresses our deep conviction that sustainable development is worthwhile for everyone, and that we assess issues holistically and in the long term."

Based on its mission statement, at the beginning of 2021, BLKB defined sustainability goals that it aims to achieve by 2030. These overarching objectives serve as the basis for the definition of annual targets and future strategy periods. ESG criteria are incorporated along with financial goals.

At the operational level, BLKB attaches importance to ecologically responsible banking operations and serving clients with integrity and prudence. It provides an inspiring working environment for its employees, and maintains that future-orientated attitude. The aim is for sustainability to become the standard in all areas of the bank’s operation. BLKB regularly measures its progress and publishes the results in its sustainability report.

Broad Anchoring in the Company

BLKB’s sustainability management includes work with "topic owners", a group of employees who take responsibility for, and further develop, one or more sustainability topics in sometimes cross-functional teams. They receive support from the “Champions of Future Orientation”, ambassadors of forward-thinking who provide advice and support.

Coordination is carried out by the sustainability team, in close consultation with the CEO and the executive board. "In this way, we can work consistently on anchoring future-orientation in business policy, products and services, processes, corporate culture, and internal and external communications," says Dürr.

In its multi-faceted approach to sustainability, since last year BLKB even has a Sustainability Advisory Board at its disposal. "This gives us a continuous view from the outside," says Marilen Dürr. The advisory board is independent of the bank council and the executive board. It deals with strategic and operational issues relating to sustainability in the bank's field of activity, and draws up concrete recommendations.

BLKB'S Active Commitment

BLKB is sustainable by conviction, and actively shapes social discourse on the subject. It is committed to greater sustainability in various membership and partnership projects. For several years, it has been a member of Familienfreundliche Wirtschaftsregion, a programme promoting positive work and community conditions in the Basel economic region. BLKB is also a signatory of the Work Smart Charta, a cross-company initiative advancing flexible forms of working. The bank has been working with the organisation womenmatter/s for two years, driving gender equality in the workplace.

BLKB has long been committed to an environmentally friendly financial market. It has been a signatory of the United Nations Principles for Responsible Investments (PRI) since 2014, and the Montréal Carbon Pledge since 2018. BLKB joined Swiss Sustainable Finance at the end of 2019.

The bank takes a proactive role in climate protection. It is a member of the Swiss cleantech business association, committed to a CO2-neutral economy in Switzerland. BLKB is also part of the Smart Regio Basel association, which — with members and partners from business, administration and science — is driving the Basel region towards smart city status.

BLKB recently entered into collaboration with the Association of Swiss Cantonal Banks (VSKB) in the area of sustainability consulting services. "Through our hands-on accompaniment, other organisations can benefit from our experience and our learnings", says Dürr.


EXIM Hungary: Hungary’s Export Expert has Strong Focus on Finance and Foreign Market Expansion

EXIM, the official export credit agency of Hungary, is the only domestic bank and insurer specifically focusing on international trade, foreign market expansion, and investments.

EXIM Hungary is the junction of two legal entities: the state-owned Hungarian Export-Import Bank (Eximbank Plc) and the Hungarian Export Credit Insurance (MEHIB Plc). It operates within an integrated framework for financing and insurance facilities.

It provides a stable financial background for Hungarian export companies, suppliers, and businesses planning to export with foreign trade-related credit services and risk-insurance products that promote the expansion of their activities. With EXIM’s expertise and experience — acquired over 25 years of operation — the agency has helped to get Hungarian products and services to 150 countries.

“If we only look at the past five years, we increased our total exposure by more than 50 percent,” says Gergely Jákli, CEO and chairman of the EXIM board of directors. “We almost doubled the number of clients, and we are the largest Hungarian state-owned equity investor, with 74 investments in 25 countries.”

In addition to the Budapest headquarters, EXIM operates representative offices in four other countries. It has some form of risk exposure in 62 countries, many of which have been co-financed or reinsured with other ECAs worldwide.

“We have also acted as an agent in a large transporting project within the framework of these consortia partnerships,” says Jákli. “We are constantly monitoring major development projects around the world to ensure that we promote the integration of companies, not only as a financial service provider but also as a facilitator.

“Our mission is to support Hungarian enterprises to drive the success of domestic exporters in foreign markets — and to deliver a kind of passport to businesses to promote their foreign market success.”

EXIM Hungary is one of the 84 export credit agencies of the world and — as the Hungarian player in a global institutional system — its operation is governed by the relevant provisions of the OECD and the European Union. “We faciliate the successful sale of Hungarian goods and services in foreign markets through the provision of effective and specialised financing and insurance facilites. We are functioning as a financial engine of succesful exports of Hungarian companies.”

The aim is to cover the entire sphere of export activities with EXIM banking and insurance services and products, including current assets, investments or equity financing through Hungarian and international investment funds, buyer credit, discounting, export credit insurance, loan, and commercial guarantees. That extends from supplier processes prior to export, through manufacturing and production, to entry and sales on foreign markets. Almost 90 percent of EXIM clients are active in the SME segment.

EXIM Hungary, like commercial banks, manages resources from money markets in the broader sense — in addition to the capital provided by the owner — and finances its operation from domestic and international bond issues and bilateral loans.

The Covid crisis has proven once again that, as the Hungarian stakeholder of the export credit and investment insurance industry, the agency is an indispensable player in global trade processes. “Our function in the world economy is once again in the spotlight,” says Jákli. “Every eighth Hungarian forint of the corporate loans disbursed by the Hungarian banking system was an EXIM loan in 2020.”

Environmental protection and sustainability-focused financing in business activity are key aspects of EXIM strategy. “In our offices, we are constantly taking the necessary steps to facilitate change,” Jákli says, “and as a result, we became a PET-bottle-free workplace last year. Now we are working on paperless offices, with a particular focus on e-mobility.”

Providing opportunities and supporting clients in their endeavours targeting sustainability is a “must” for EXIM. It has launched a Green Financing Programme to encourage companies to go transition towards a greener future. “Sustainable future starts with sustainable developments,” Jákli points out, “but sustainable developments need sustainable financing approach from us.”

Since 1998, EXIM has been a member of the Berne Union, a global association for the export credit and investment insurance industry. The union’s annual meeting was hosted by EXIM in Budapest this year, attended by 160 guests from some 50 industry stakeholders. The platform allowed them to cultivate future and on-going collaborations in person. In 2020, the event was twice postponed because of the pandemic.

Operating in one of the world’s most open economies – the volume of export account counts for nearly 80 percent of GDP and comprises on of the most important indicators of national performance – the industry has a key role to play. And EXIM is ready to step up to the plate.

Covid-19 and its consequences affected all members of the professional community that convened in Berne Union — as well as the mindset of all those involved in global trade and FDI projects around the world. “This situation presents us with opportunities and challenges. Co-operation is becoming increasingly important in the financial world.”


Arthur Huang: ‘We Take a lot of Risks — That’s How we Grow’

[caption id="attachment_21006" align="alignright" width="300"] Co-founder and CEO of Miniwiz: Arthur Huang[/caption]

The company Arthur Huang co-founded with Jarvis Liu in 2005, Miniwiz, has been praised by The Financial Times, The Wall Street Journal and the World Economic Forum for its pioneering efforts to incorporate post-consumer recycling applications into a closed-loop building model.

Huang, a National Geographic explorer, had his Eureka moment in Rome, where rubbish had been used in ancient times to construct beautiful buildings. “These masterpieces of architecture, cut them open and there’s trash inside,” he realised, which led him to wonder: “Why can we not do that today?”

Huang proved that we can, with the construction of Taiwan’s EcoArk Pavilion. The nine-storey exhibition centre has a ventilation system created from recycled tech waste and a core of recycled steel. The building’s façade was constructed with 1.5 million plastic bottles, which were ground, melted and blow-moulded into proprietary Miniwiz Polli-Bricks, a structural building material made from recycled polyethylene terephthalate (PET) polymer.

The bricks are translucent and naturally insulating, keeping energy costs low as sunlight enters the building. The blocks connect into a strong, interlocking, 3-D honeycomb structure. Computer simulations and field tests have shown Polli-Brick constructions to be resistant to earthquakes, fire and extreme weather.

Miniwiz began experimenting with the Polli-Brick concept in its first two years of operation but had delayed product development due to a lack of funding. It introduced a version of the bricks suited to interior use at a consumer electronics trade show in 2009. It was then approached by the Far Eastern Group to submit designs for the 2010 Taipei International Flora Expo.

Huang tossed the Polli-Brick concept in for consideration. “This was our daring endeavour,” he says. “We promised the technology was there already. In our mind it was there — but it could have been a disaster.” Miniwiz spent $200,000 in R&D before securing the contract. “We take a lot of risks,” says Huang. “That’s how we grow.”

By using upcycled materials, Huang managed to the keep the EcoArk budget to around $4m. Polli-Brick assembly costs a quarter of conventional systems. “There’s a similar sized building right across the street, constructed at the same time, under government traditional budget,” he says. “That building cost $40m.”

Apart from savings, recycling waste into building materials addresses a pressing global issue. “Our environment is being polluted by our consumption patterns,” Huang warns. “From packaging to fast-fashion to car batteries, we have to actively transform all this material that’s been collecting for the past 40 or 50 years. It’s not going away, so somebody has to deal with it.

“The best scenario is to make trash into a currency. So, the more valuable the transformation is, the more valuable the trash is.” Added value would stop consumers and conglomerates carelessly discarding trash — and stop wealthy economies shipping waste to developing countries.

Miniwiz has created portable, solar-powered, AI-driven machines to bring recycling to the streets and engage with the public. The company has expanded its product line-up to include eco-friendly shading and shelf systems, load-bearing Polli-Ber brick walls, origami-styled Ricefold ceiling and floor panels, and electronics-compatible Tetrapod modules.

The pandemic spurred Huang to turn his attention to the world’s overworked and under-supplied medical teams, building parts and components out of local trash. In partnership with the Fu Jen Catholic University Hospital, Miniwiz created the world's first hospital ward entirely built from recycled materials.

“We don't need to create new things,” Huang insists. “We just need to use our ingenuity, innovations — and our good heart and good brain — to transform these existing materials into the next generation of products and buildings to power our economy.”


Nordea Asset Management: Meet the Responsible Investments Team

Nordea Asset Management has one of the largest and most experienced responsible investment teams in Europe: 20 dedicated ESG analysts from academia, independent organisations, and investment circles.

[caption id="attachment_21009" align="aligncenter" width="900"] Nordea Asset Management[/caption]

To stay at the forefront of responsible investing (RI), the team — set up in 2009 and headed by Eric Pedersen — continuously refines its ESG approach in keeping with the increasing complexity, depth and scope of the field.

The strength of NAM’s approach is that its investment teams and RI team are fully integrated — ESG analysts sit side-by-side with equities and fixed-income teams. Fund managers are involved throughout the research process and directly tie results to their investment decisions.

Besides being fully integrated with NAM’s investment boutiques managing ESG products, the team carries out research, active ownership, and represents NAM in international RI initiatives.

Nordea Asset Management’s RI team is subdivided into five units.

• The Active Ownership team is responsible for NAM’s engagement activities, as well as for driving the Responsible Investment Committee agenda and RI Policy development. This group also works with the corporate governance team on proxy voting.

• The Climate group maintains focus on climate change factors and policies, implementation and reporting on TCFD recommendations, and the firm’s membership and obligations under the Net Zero Asset Managers Initiative.

• The ESG Private Equity team supports NAM’s private equity collaboration with Trill Impact.

• The ESG Products & Research team carries out company-specific ESG research and engagement for NAM’s ESG funds, as well as product development.

• The ESG Quant team develops and maintains NAM’s proprietary ESG scoring model, as well as advanced applications of ESG data.

The team maintains both a broad RI coverage and a particular focus on NAM’s ESG-enhanced strategies, working closely with their respective portfolio management teams. Members frequently participate in client meetings and engagements — in 2020, the team led 924 engagements and voted in 701 AGMs. In 2021, NAM ramped up its voting activity — over 90 percent of its holdings were voted on, with about 10 percent of votes going against management. Votes related to climate and social issues were prioritised.

Through the STARS funds, the team contributes to the analysis of the holdings and engages with companies and portfolio managers.

Nordea Asset Management is the functional name of the asset management business conducted by the legal entities Nordea Investment Funds S.A. and Nordea Investment Management AB (“the Legal Entities”) and their branches and subsidiaries. This document is advertising material and is intended to provide the reader with information on Nordea’s specific capabilities. This document (or any views or opinions expressed in this document) does not amount to an investment advice nor does it constitute a recommendation to invest in any financial product, investment structure or instrument, to enter into or unwind any transaction or to participate in any particular trading strategy. This document is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instruments or to participate to any such trading strategy. Any such offering may be made only by an Offering Memorandum, or any similar contractual arrangement. This document may not be reproduced or circulated without prior permission. © The Legal Entities adherent to Nordea Asset Management and any of the Legal Entities’ branches and/or subsidiaries.


Eric Pedersen on The Power of Active Ownership: Battling the Vung Ang 2 Threat

What should a responsible investor do when they see a company carrying out harmful activities? Eric Pedersen, Head of Nordea Asset Management's Responsible Investments Team explains the company’s philosophy.

Nordea Asset Management regularly ponders the “What should we do?” question.

One option is to exclude offending companies from our portfolios, but this is not our first choice. Exclusion may align a portfolio more closely with ESG criteria, but it rarely leads to meaningful real-world change.

We exclude only companies whose operations are truly incompatible with our mission to deliver returns and responsibility, or those that are not open to engagement. We prefer to use “active ownership” to encourage companies to improve their corporate behaviour, although individual funds may have tighter exclusion rules.

Active Ownership includes voting — making sure we use our rights as shareholders to voice our opinion about the way the company is managed — and engagement. This means interacting with the companies to share our expectations, and giving them support to enhance their sustainability performance.

We believe that improved management of sustainability risks and opportunities is vital to creating returns and responsibility, and that engagement can increase the likelihood of long-term success — benefitting companies, investors and society. Many of our engagements cover all our funds and take a range of forms, including company meetings and calls with management, letters to management, and visits to headquarters or production facilities.

NAM’s engagement activities are led by our 20-strong Responsible Investments team. The team carries out many engagements solo, but also collaborates with other investors as the weight of greater shareholder pressure can be more effective. We gathered a group of investors to work with us when we became aware of the damage that might result from the proposed development of the Vung Ang 2 power station in central Vietnam.

[caption id="attachment_21013" align="aligncenter" width="900"] Head Responsible Investments Team: Eric Pedersen[/caption]

Vung Ang 2 is a planned coal-fired power station that will be sited next to the controversial Vung Ang 1 plant. Vung Ang 1 has already caused major environmental pollution and has faced controversies due to the proximity of its coal ash heap to residential areas and farmland, as well as its CO2 emissions.

Global emissions standards have been tightened since the power plant was approved in 2009, and we believe Vung Ang 2 will not meet them. Independent analysis conducted by Environmental Law Alliance Worldwide (ELAW) found that key aspects of the project’s 2018 Environmental Impact Assessment (EIA) did not meet internationally accepted standards for evaluating the potential environmental impact.

Key findings of the ELAW analysis concerned the use of weaker emission standards by the EIA than those applied internationally, as well as the conclusion that the EIA — in violation of international standards — failed to consider alternatives to coal power in its assessment.

The Paris Agreement and the UN Sustainable Development Goals (SDGs) have set clear targets for addressing climate challenge and set out guidelines for responsible companies. We believe the Vung Ang 2 project is incompatible with these targets.

As a responsible investor, we expect companies to take action to meet these targets such as setting a net-zero emissions business strategy. Research such as that carried out by Climate Analytics concludes that coal power must be globally phased out by 2040 to meet the Paris objective of limiting global warming to 1.5°C.

Historically, coal plants have been retired after a lifecycle of about 46 years. Any new coal-fired power plant, including Vung Ang 2, is inconsistent with the goals and timelines of the Paris Agreement.

All these factors resulted in our decision to engage with the companies that tied to the project, urging them to withdraw and commit to exit the coal industry. We extended an invitation to our clients as well as other investor peers to join us in this. We knew that by working collectively, we could leverage the knowledge from other investors and have a greater impact by involving a larger percentage of the companies’ shareholders.
We have gathered a group that now consists of 25 investors representing €4.8tn in AUM, increasing the pressure on the companies to meet our expectations.

Media interest in this engagement has been extensive and has contributed to an increased public opinion against the construction on a company level. Thus far, the work carried out by the collaborative group has contributed to Kepco, Samsung C&T, Mitsubishi Corporation and SMFG all announcing an end to coal projects.

Challenges remain, especially in terms of geopolitical forces. China and Japan are involved through state-owned companies. But Japan, China and South Korea — where participating companies are based — have all made net zero commitments within the past year; this may spur change.

At the same time, banks remain supportive, even though the financial argument for the power station appears weak. The fall in costs of renewable energy since the power station was initially approved now makes alternative energy more financially viable than a new coal-fired station.

Following our high-profile engagement with the Vung Ang 2 power station, there is a momentum in terms of companies withdrawing from this specific project and committing to an exit from coal.

This is a clear example of the potential of active ownership — but our engagement is not over. We will continue to urge the companies involved to withdraw from the construction project and to make commitments to end involvement in new coal projects in line with the recommendation of the United Nations Secretary General.

Eric Pedersen, Head of Nordea Asset Management's Responsible Investments Team

Nordea Asset Management is the functional name of the asset management business conducted by the legal entities Nordea Investment Funds S.A. and Nordea Investment Management AB (“the Legal Entities”) and their branches and subsidiaries. This document is advertising material and is intended to provide the reader with information on Nordea’s specific capabilities. This document (or any views or opinions expressed in this document) does not amount to an investment advice nor does it constitute a recommendation to invest in any financial product, investment structure or instrument, to enter into or unwind any transaction or to participate in any particular trading strategy. This document is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instruments or to participate to any such trading strategy. Any such offering may be made only by an Offering Memorandum, or any similar contractual arrangement. This document may not be reproduced or circulated without prior permission. © The Legal Entities adherent to Nordea Asset Management and any of the Legal Entities’ branches and/or subsidiaries.


Embracing Change and the Thrill of Challenge: It's All Part of the Business

[caption id="attachment_21016" align="alignright" width="300"] CEO and Co-Founder: Marco Boldrin[/caption]

Change is the only constant — and Marco Boldrin, CEO and co-founder of Lugano-based Copernicus Wealth Management, embraces it. “One of the most thrilling things about business is the challenge of managing change,” he says.

It’s not enough to react, Boldrin adds. “It’s essential to anticipate it and be an integral part of it. Nowadays it’s not enough to just have a vision — you must execute the objectives and broaden your horizons beyond your own knowledge. But innovation does not mean abandoning one’s cultural roots and traditional values.”

Copernicus Wealth Management manages more than CHF3bn ($3.22m), has some 40 staff members, and is in the process of opening an office in Zurich.

Asked about the starting point of his career, Boldrin reports that this was on the trading floor of Caboto Holding in Milan (now Banca IMI, part of BancaIntesa Group). He began by working on the structured bond desk and later moved to interest-rate derivatives. Then came the move to Lugano, Switzerland, working for the BSI banking group as head of quantitative models in the asset management division, and later as co-ordinator of investment specialists for the Swiss private banking division.

“I worked on a project which created the wealth management arm of the BSI Group, Patrimony 1873, becoming its partner and deputy CIO. In 2016, with four other partners, we co-founded Copernicus Wealth Management, which is regulated by FINMA.”

Boldrin became its CEO and began a process of development and growth there that has led to partner with the second-largest Swiss bank and one of the leading financial players in the south of Switzerland.

Asked about lessons learnt, Boldrin says that his career has taught him many lessons — and three of them are prominent. “I’d like to highlight them because they don’t only concern the world of work.

“Firstly, fairness — not only in business and human relationships, but also in the decision-making process. Secondly, pragmatism: I’m a realist, and I keep my eye on the journey and outcome required.

“Thirdly, problem-solving: solutions are always readily available, one must analyse, and propose alternatives. To abandon is the extreme solution.”

Turning to Boldrin’s motivation in the business he leads, he explains that this comes from his entrepreneurial passion — and his responsibilities within the company. “My enthusiasm stems primarily from the fact that I’m a manager, and one of the partners. I believe in our projects, and the results we’re achieving confirm the validity of our vision and business model.”

Asked about the reasons for this success, he reveals that there is no secret sauce. “I don't have any magic ‘recipes’, but fairness is the basic ingredient to run a successful organisation,” Boldrin believes. “Entrepreneurship is one area on which we focus, and I think this sets us apart.

“There must be an equilibrium between strategy and corporate culture — it’s essential for the success of a company. Behaviours and stability make the difference. You don't need to do a thousand things — just do one or two things a thousand times.”

Like most leaders, Boldrin believes in the importance of teamwork. “I know I have the right people, in the right places, using different skillsets. Our processes and rules are clear and well-defined: easy dialogue and discussion and a streamlined, flat, and lean structure that has allowed us to build an excellent relationship of trust between the members of the executive team, along with the motivation to achieve our objectives.”

What, in Boldrin’s opinion, are the key traits of a good corporate leader? “The ability to listen and give feedback, and the ability to communicate in a transparent and simple way. A good leader must be empathetic.

“Finally, they must also possess a ‘growth mindset’, because it’s about each individual and their attitude: being able to overcome any constraint, face any challenge. That allows our growth, and the growth of the company. Growth-focused leaders make it their mission to learn new things.”

Those characteristics do not depend on industry, sector, company size or geography, Boldrin says. “In summary, a good leader must be a good psychologist in the early stages of his or her career — and then become an equally good sociologist.”


SHARE NOW - Sharing is Caring, Cool, and Convenient: a  Pioneer of Sustainable Urban Mobility

[caption id="attachment_21019" align="alignright" width="300"] CEO: Olivier Reppert[/caption]

SHARE NOW is a prime example of how collaboration can be more powerful than competition. SHARE NOW was born as a joint venture between two dominant original equipment manufacturers (OEMs) in Europe — Daimler and BMW — after almost a decade of rivalry.

Each had created its own car-sharing service, car2go and DriveNow, and both pioneered the business model. Since 2019, under one brand, SHARE NOW operates 11,000 vehicles throughout 16 cities in eight countries across Europe. More than 25 percent of the fleet is electric, making the company the continent’s largest operator of an electric, free-floating, car-sharing enterprise.

How SHARE NOW Works

Whether for three minutes or 30 days, a spontaneous trip around town or a long-awaited vacation by the seaside, SHARE NOW customers can be mobile without the cost and hassle of owning and maintaining a car.

From compact city cars to chic coupés, SHARE NOW offers vehicles for every occasion — on every street corner, and at all times. From registration to driver licence-validation and invoicing, everything — even unlocking the vehicle — can be done via smartphone. And at the end of the trip, vehicles can be dropped off anywhere within the business area.

Financial Transparency

Next to convenience, financial transparency is one of the key advantages of car-sharing with SHARE NOW. There are no annual or monthly fees. Billing is calculated by the minute, hour or day, according to the model and rate. Whether ICE or electric power, taxes and insurance are included, as is parking at public spaces in the business area.

All prices are visible in the app, which makes it easy to calculate a mobility budget.

[caption id="attachment_21020" align="alignright" width="300"] CPTO: Slavko Bevanda[/caption]

How SHARE NOW Helps

Car-sharing is not just a cost-effective and convenient mobility alternative. It plays a defining role in the urban mobility of tomorrow, and has proven to reduce parking pressure, space requirements, mileage and emissions.

One shared vehicle can replace eight to 20 private cars, according to studies, and on average is used up to six times more frequently. Fewer unused cars take up the limited space in city centres. In Berlin, SHARE NOW's hometown, this frees-up over 12,000 square metres of parking; in Munich, it’s around 5,600 square metres.

Older, inefficient and underused models are being replaced by fewer and more environmentally friendly vehicles. Car-sharing fleets boast significantly lower CO2 emissions than individually owned vehicles.

"As a practical addition to the urban mobility mix, flexible car-sharing fulfils both the desire for convenient mobility and sustainability considerations — making a significant contribution to solving traffic problems and leading to a better quality of life in the cities," says SHARE NOW CEO Olivier Reppert.

The Role of Data

Since the positive environmental effects of vehicle-sharing are strongest with cars in constant movement, intelligent fleet management and maintenance are of the utmost importance. AI and machine learning processes have been the key drivers for the recent success of SHARE NOW. Data intelligence and AI are deeply rooted in the company’s corporate culture and decision-making processes.

One of the most important use-cases is to ensure the availability of vehicles in the right place, at the right time. The AI calculates in advance when, where, and how many cars are needed. Proprietary algorithms calculate demand at street level. Particularly important are the parameters of time, place, or public holidays, as well as historical rental data.

Another crucial success factor for any fleet operator is the fleet itself. SHARE NOW operates premium vehicles from manufacturers such as BMW, Mercedes-Benz, MINI and smart.

100% In-house Tech

One of the obstacles faced by car-sharing companies is the lack of control over the duration between rentals. With a traditional company, each rental period ends with the car back to a station. It may be inconvenient for the customer, but it gives the company the opportunity to clean and fuel the vehicle.

That's a luxury a free-floating car-sharing company doesn't have.

To ensure that customers get a clean, safe car, SHARE NOW has developed software solutions that predict when cleaning and repairing will be needed. Predictive maintenance involves algorithms that use data on usage, the time of the last cleaning, the vehicle model, and — the most important component — customer feedback. The data are combined in a machine learning process, and supplemented by mileage- and vehicle-specific data.

Equally important is the software system used, from app to website to fleet management systems and service provider applications.

While competitors outsource their technology, SHARE NOW has developed its own award-winning tech stack. The company has gained unique knowledge in creating a suitable tech environment for a free-floating car-sharing service. "With our technology, we can scale globally in an instant,” says SHARE NOW CPTO Slavko Bevanda. “In the back-end, each city’s operations run as microservices, meaning we have 250 running at once. Our tech runs completely on the cloud using Amazon Web Services, which enables us to operate on a higher level of efficiency in terms of deployment and frequency of updates.

"This means that regardless of where the customer is in the world, they would experience the same speed to unlock the vehicle, despite the fact that the architecture running in the background is in Europe. There is no decreased latency or decreased speed. Our tech is set-up with international use in mind, allowing us to grow and scale to any part of the world."

And that's exactly what the company aims for.

[gallery size="large" link="file" ids="21021,21022,21023"]

In the Driving Seat

Olivier Reppert (46) has been CEO of SHARE NOW since February 2019. He is responsible for the global business of SHARE NOW, which emerged as one of five mobility services from the joint venture between the BMW Group and Daimler AG.

Mobility has been his passion throughout his professional career. In 1998, he was after-sales product manager at the DaimlerChrysler Sales Organisation Germany in Berlin. Three years later, he moved to DaimlerChrysler Overseas in Stuttgart as manager of after-sales marketing and communication.

From 2004 to 2008, Reppert was responsible for dealer network strategy and development at DaimlerChrysler Schweiz AG in Zurich, initially as project manager and subsequently as a member of the board.

He then returned to Stuttgart, where he was appointed to the Board for Global Business Management of Daimler AG, with responsibility for regional strategy in China, India and Russia.

At the end of 2010 he joined smart, and took over as head of sales for the company in Germany in 2013. From November 2014 to October 2016, he was head of brand and product management at smart as well as a member of the smart management team.

He then became CEO of what at the time was the biggest free-floating, car-sharing company worldwide, SHARE NOW predecessor car2go. Since February 2019, Olivier Reppert has been managing SHARE NOW.


ARCA Fondi SGR: Innovation, Sustainability, and Modern Technology

[caption id="attachment_21028" align="alignright" width="300"] CEO: Ugo Loeser[/caption]

ARCA Fondi SGR is a leading asset management company serving individual and institutional clients. It has deep roots in the Italian financial market. The company was founded in 1983 by 12 popular banks, and is now owned by BPER Banca (57.061 percent), Banca Popolare di Sondrio (34.715 percent) with the balance taken up by other major Italian banking institutions.

Managing a client base of more than 800,000 investors with AUM of more than €35 billion (as of September 2021) offerings include Mutual Funds, Luxembourg Sicav, Pension Fundi, and Institutional Accounts. This places ARCA Fondi firmly among the leading national asset management companies.

ARCA Fondi assets under management represent €28.0bn in mutual funds (with an Italian market share of 2.8 percent); €4.3bn in ARCA Previdenza Open Pension Fund, (market share 16.3 percent as at year-end 2020); €0.7bn is under management for institutional clients, and €2.8bn acting as Investment Manager for Sidera Funds Sicav - a set of funds dedicated to private banking clients.

Institutional assets under management are assigned to ARCA by pension funds (contractual and pre-existing), retirement funds, and foundations; by banks and large company portfolios; by insurance companies and other mutual funds, or by Sidera Funds SICAV.

Strong Governance

Customer protection is ARCA Fondi’s primary aim, and operational decision-making is in accordance with the governing bodies in continuity and autonomy. There is a guarantee both for customers and in terms of company governance via the adoption of Protocollo di Autonomia (Protocol of Autonomy) by Assogestioni (Italian association of asset managers). This is the reference point for determining best practice as regards conflict management.

Reliability as the Key to Success

With over 40 years of experience, ARCA Fondi SGR is known as a reliable partner that creates value over time and can count on an extensive network of distributors. More than 100 banks and financial institutions around the country have come to rely on ARCA. These close and successful relationships translate into hundreds of thousands of customers entrusting the company with their savings.

Innovation, Sustainability, Education, and Social Media

Thanks to flexible solutions that are within the reach of all, ARCA Fondi has been satisfying investors since their first products were launched in the Italian market. The company introduced the greatest innovation for Italian investors of the past 12 years namely, ARCA Cedola, fixed-horizon, coupon paying funds. It also gets involved in real economy, with PIR Funds (Piani Individuali di Rispamio), a product designed to allow an investment approach suitable for all Italian savers and in which ARCA has a 12 percent share of the domestic market. In 2019, to formalise its commitment to financial sustainability, ARCA Fondi signed the UN Principles for Responsible Investment (UNPRI). This led to the creation of several ESG Funds and an innovative proprietary ESG Rating model. Recently, the company has chosen to focus on creating a digital ecosystem that offers innovative services aimed at both investors and financial partners. With a significant investment in economic terms, ARCA has renewed its website, initiated a dedicated finance blog, developed an app, a chatbot for customer care, and landed on social media. Concrete projects designed to encourage greater saver interest in financial issues have received major awards.

Awards for ARCA Fondi SGR

Over recent years ARCA Fondi SGR has been recognised among Italian mutual funds and pension funds, both in Italy and elsewhere in Europe. For example, as winners of CFI.co’s Best Emerging Markets Debt Manager (Europe) award in 2015, 2016, 2017, 2018, 2020 and 2021; CFI.co’s Best Pension Fund Scheme - Italy 2020 and CFI.co’s Best SME Equity Fund – ltaly 2021.

Constant Growth and a Commitment to ESG

ARCA Fondi SGR has the goal of becoming the reference company in the Italian financial market, creating added value for its customers over the long-term. With its range of ESG funds, ARCA is ready to meet the needs of a new generation of investors increasingly concerned about sustainability and the environment. Currently, the range of sustainable investments includes two equity and two flexible funds, while new solutions are under study to address this new market segment. ESG investment funds need a particular rating in compliance with restrictive environmental, social and governance standards.

Leadership

Ugo Loeser has been CEO and general manager of ARCA Fondi SGR since 2011. He has a Degree in Economics and Social Sciences from the Bocconi University of Milan, and prior to joining ARCA had experience in investment banking and management consulting. He was director at Finlabo SIM and Banknord SIM, a partner at Bain & Company Italy (promoting the practice of asset and risk management) and a senior strategist for the European market of derivatives on fixed income at Paribas. Loeser was also the executive director of Fixed Income Research at Goldman Sachs International, and he is a member of the Executive Board of Assogestioni.