Federal Realty Keeps the Faith in Traditional Industry Wisdom — but Adds Emphasis to Eco Issues

US property firm Federal Realty applies strategy and smarts in environmental oversight.

In an industry known for “location, location, location”, investment trust Federal Realty has added a new mantra: “resilience, resilience, resilience.”

Founded in 1962, Federal is recognised for the ownership, operation, and redevelopment of retail-based properties, primarily in major US coastal markets. With a diverse portfolio ranging from small neighbourhood shopping centres to urban and mixed-use properties, Federal’s enduring success is testament to a sound business strategy.

“As a long-term owner of real estate, we have always had an intense focus on protecting and enhancing the value of our assets,” said Federal Realty CEO Don Wood. “That means aggressive management and continual reinvestment to ensure our properties can withstand climate-related disruption, while supporting a transition to a low-carbon economy.”

Aggressive management starts with strategic investment. Federal maintains a competitive advantage with properties in markets where public and private sectors are investing in infrastructure to improve resilience and manage greenhouse gas emissions. More resilient communities mean less financial loss, and reduced human impact from climate events. Recovery is quicker with restoration of utility services, and the availability of transit and other critical services and infrastructure.

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Federal’s strategic expertise is accompanied by sound diligence and effective mitigation strategies. It conducts climate-risk analysis as part of due diligence on all acquisitions. Asset-level operating plans address the physical risks particular to each asset, and emergency response plans are in place.

Resilience strategies are incorporated in design and construction to maximise efficiency and minimise emissions over the lifetime of an asset. Greenfield development gives way to urban revitalisation, using existing structures and onsite materials wherever possible, and relying on Federal’s proprietary Green Box™ standard for the build-out of tenant spaces.

The company continually improves energy efficiency to preserve natural resources and protect the environment. Efforts include portfolio-wide LED lighting, white and green roofs to reflect heat, on-site renewable energy, and EV charging stations. Of the 4.6 million-square-feet of buildings constructed and delivered over the past decade by Federal, some 80 percent have earned LEED certification.

Federal Realty has implemented water-management techniques to conserve the vital resource, particularly in areas at risk of water stress. Tools include real-time data-monitoring via automatic meter-readers, which have been installed at almost half of Federal properties. Other conservation methods include smart fixtures and irrigation controls, while drought-tolerant native plants are used in landscaping.

The driving force behind Federal’s investment and reinvestment actions is the mission to deliver long-term, sustainable growth — a mission that can’t be achieved without that emphasis on resiliency.

"Building resilience is not just about withstanding,” said Wood. “It’s about having the capacity to thrive and create further value. By investing in decarbonisation and our communities, we're securing our future, and creating a cycle of prosperity for stakeholders."


Moody’s Investors Service Provides Thought-Leadership in Latin America

Rating agency’s trusted insights can help decision-makers navigate turmoil and market volatility.

With over a century of experience in evaluating creditworthiness and an expanding product suite, Moody’s Investors Service (MIS) is a leading global provider of credit ratings, research, and risk analysis.

A rating from Moody’s enables issuers to create timely, go-to-market debt strategies — with the ability to capture wider investor focus. It provides investors with a comprehensive view of global debt markets through the firm’s credit ratings and research.

Established in Latin America in 1997, Moody’s Investors Service currently serves capital-market needs in Argentina, Brazil and Mexico with +900 rated organisations, with more than $1.6tn rated debt, some 900 publications, and 160+ employees, as at January 1st, 2023.

Moody’s public credit ratings are publicly available and cover a wide range of markets, industries, and geographies.

“Latin America’s dynamic financial markets are a priority for Moody’s as we expand our regional footprint as one of the leading international credit rating agencies in the region,” said Marina Rosemberg, Managing Director and Regional Head for Latin America. “Our knowledgeable teams strive to provide customers with the highest quality of analysis, expertise, professionalism and service.”

The company offers unique tools and best practice for measuring risk via LatAm credit analyses, offering a series of valuable assets for issuers, investors and intermediaries, including in-depth research and infographics, timely podcasts and key events across the region.

Our team of experienced analysts produces the most up-to-date publications and data updates using processes refined through over 26 years in the region.

In line with the increasing demand for independent analyses of sustainable financing frameworks, Moody’s Investors Service also offers Second Party Opinions (SPOs) of green, social, sustainability and sustainability-linked bonds and loans. These bring clarity to the sustainability impact of issuers' financing frameworks and instruments and aligns them with market standards.
SPOs, available in all regions, help issuers communicate their sustainability objectives with key stakeholders, and may facilitate customers’ access to capital.

Moody’s has been recognised consistenctly as the best ratings agency in North America, Latin America, and the MENA region (Middle East and North Africa) by many award panels. Then, this year, the CFI.co judging panel announced Moody’s Investors Service as a repeat winner of the 2023 award for Best Credit Risk Analysis (LatAm).

[caption id="attachment_26401" align="alignright" width="500"] Managing Director and Regional Head for Latin America: Marina Rosemberg[/caption]

“This is a clear testament to the depth of our experience, our strong leadership and our commitment to Latin America’s financial markets,” said Rosemberg. “It also recognises Moody’s Investors Service as the agency of choice for our expertise, credibility and engagement. It’s also a demonstration of our continuous collaborative effort and customer-centricity around the globe.”

The Digital Journey
Moody’s cloud-based IssuerFocus platform serves as a customisable, one-stop-shop for corporate ratings, research, and peer assessment by issuers. The user-friendly platform enables around-the-clock access, real-time updates, and tailored alert preferences. IssuerFocus is available throughout Europe, the Asia Pacific region, and the Americas.

IssuerFocus was launched in Latin America in October 2022, and is available to corporate issuers across the region. “We’re thrilled to be part of the digital transformation journey,” Rosemberg said, “and we welcome IssuerFocus in Latin America to serve our customers with this interactive digital platform.”

IssuerFocus connects issuers with the information they want — when they want it. Moody's innovative platform presents a customised, single point-of-access — complimentary to rated corporate customers.

Since the IssuerFocus launch, Moody’s has continued to improve, upgrade and introduce features that benefit issuers. The expansion of IssuerFocus into Latin America completes the rollout to corporate issuers. It is now available across all regions.

Continued Expansion
As Latin American economies slow down after a post-pandemic rebound, global supply and demand imbalances linger, and external demand decelerates. That has been a weight on 2023’s growth prospects.

The effects of persistent inflation and higher borrowing costs will compound existing social tensions. Which sectors will fare better? Which are most at risk? What are the credit implications for the region’s sovereigns, companies, banks, and projects this year and beyond?

Running from April to November, the Inside LatAm Series 2023 provides an in-depth analysis of key credit risks facing eight local markets across Latin America: Argentina, Bolivia, Brazil, Chile, Colombia, Mexico, Panama, and Peru. Through a combination of in-person and virtual events, the series offers market participants an opportunity to understand the major drivers impacting credit in key sectors. It connects participants with Moody's analyses and the views of top “market minds” on global and local credit dynamics.

Every year, more than 1,000 participants attend these events, with some 100 journalists covering the series. They generated hundreds of news stories in print and broadcast all over the region. Topics tackled in the series vary from individual sovereign prospects to industries of individual importance to each country.

More information about Moody’s Inside LatAm Series 2023: live.moodys.io/inside-latam


Keeping Pace With Client Needs, Staying Ahead of the Market, and Driving Custodian Bank Evolution

The role of custodian banks has evolved to include the proactive anticipation of market and client needs — while driving positive change.

Institutions in African markets have stepped up to the fast-moving, multi-jurisdictional and multi-currency landscape. They put in place network and compliance cultures that define custody function in the developed world.

Bank One has taken a leadership role in driving the forces that spur market change. Capital-market infrastructure is being developed to keep pace with the increasing size and complexity of the markets themselves.

Breadth and Depth
At Bank One, we’re proud of the cross-section of clients that our custody services cover, from high-net worth individuals (HNWIs) to asset managers, pension and investment funds, bankers and brokers. We address the needs of all those in need of investment solutions.

With a firm footing in Mauritius, we have access to a large clientele in the local and expat segments. In the latter category, South Africa emerges as a significant area of focus with its large and mobile population of HNWIs. Having the I&M Group as a key shareholder gives us access to market data and know-how in East African markets, key differentiator for us.

Bank One’s coverage of sub-Saharan Africa benefits from its shareholders’ regional footprint. I&M’s extensive network allows us to offer securities services tailored to suit the investment potential of a market that straddles regions, languages, cultures, and currencies.

With a range of offerings including equities trading, fixed-income, mutual funds and structured products, the Bank One team leverages expertise and insights to guide clients towards decisions that align with the region’s opportunities.

[caption id="attachment_26406" align="alignright" width="500"] Khalid Mahamodally: Head of Securities Services and Deputy Head Private Banking[/caption]

Strong Foundations
While our custodial services span the usual range of settlement, safekeeping, and reporting functions, our sophisticated systems and personalised relationships allow us to go further still. Our custody platform ensures that the client portfolio is updated in real time.

Transparency is the cornerstone of our custodial services. We take pride in empowering our clients with complete information based on a clear, comprehensive online reporting. This ensures that they have full visibility of their assets’ performance and movements, empowering them to make informed decisions, and boosting their financial confidence. Our custody reporting is integrated with Bloomberg to update market prices and FX rates in real-time. The custody platform is readily accessible at any hour, any day, and from any device. In terms of record-keeping, we offer SFTP (secure file transfer protocol) in CSV format to eliminate duplication.

When it comes to client-centricity, our services are characterised by personalised relationships tailored to individual objectives and sophistication levels. Our team composition has remained consistent, thanks to high staff retention and low attrition. This allows us to know our clients better, and provide services customised to their needs. We have a sizeable team in Mauritius and a relationship manager based in Kenya. Our strategy for sub-Saharan Africa is a long-term one, with a clearly defined framework and a commitment to achieving our goal: becoming the preferred gateway to Africa.

Open Architecture
Our open architecture strategy gives our clients the widest possible exposure to global markets. Unlike other banks, we don’t rely on in-house products. We choose to work with external asset managers and fund managers based in Europe, Africa, and Mauritius.

By embracing this strategy, we respond to today’s challenges with bespoke securities services designed to cover the entire banking value chain. Through our securities solutions and use of global sub-custodians such as Euroclear, we provide access to markets around the world.

Euroclear acts as Bank One’s main depositary and clearing agent. We hold ourselves to the highest standards for our clients’ safety, and ensure their securities and assets are recorded off-balance sheet. This adds yet another layer of safety when investing through Bank One: the risk is predicated on Euroclear. This also places us in a unique position vis-à-vis banks in sub-Saharan Africa seeking access to global markets.

Ask the Right Questions
A good custodian bank must constantly be on the lookout, asking the right questions on how the market can be pushed to evolve. Those questions could be regulatory, tactical, or strategic — and we will pose them on behalf of our clients.

You can pose one yourself: ask what Bank One can offer you as an individual, a corporate, or a financial institution.

Khalid Mahamodally is Bank One’s head of securities services and deputy head private banking.


Scottish Institution Leads with Gusto, by Example

Colleague-friendly, compassionate, and with wholesome social goals in mind, Scottish Friendly is going strong...

Scottish Friendly is an institution dedicated to helping people achieve financial wellbeing.

The Glasgow-based mutual life group, one of the largest in the UK, was born over 160 years ago with the more cumbersome title of The City of Glasgow Friendly Society. The goal, then as now, was to provide financial security and peace-of-mind to individuals and their families, and to become the UK’s leading mutual insurer.

These ambitions are centred on the workplace, and the provision of effective products and services.

The knock-on effects are evident: more than 80 percent of Scottish Friendly employees rate their workplace as top-notch. As a mutual, it is owned by its members, and run for their benefit, not in the interests of shareholders.

[caption id="attachment_26413" align="alignleft" width="500"] Book Tour: Nick Sheridan[/caption]

This “we’re in it together” approach shapes daily life at Scottish Friendly, its raison d'être still that of helping individuals and their families achieve financial wellbeing through friendly products and customer care. Scottish Friendly prides itself on providing products and services that cater to those needs, without exception, regardless of age, income, previous financial guidance or experience.

The mutual structure means that its team of some 250 employees doesn’t receive regular bonuses. But there are plenty of other benefits that make it a great place to work.

2021 brought with it positive change with the appointment of a new CEO, as well as other senior personnel, to strengthen the leadership team. A series of initiatives to support wellbeing was put in place, including continued access to free private health insurance and employee assistance. It includes a dedicated Health Week, providing one-on-one and group support on nutrition, alternative therapies, and flu vaccines.

Colleagues were given a £1,000 payment to help offset cost-of-living spikes. Along with that come a generous pension scheme, discounted gym memberships, and season rail ticket loans. Great workplaces listen to what is being said, and implement change based on feedback.

Since establishing an HR team in 2020, the group has prioritised heeding that “employee voice”. The organisation recently launched a “people’s ambassador” forum where colleagues can share concerns or queries on anything from wellbeing to health and safety.

Scottish Friendly encourages colleagues to “give back”, especially through its charity partners, Action for Children, Developing the Young Workforce, and the Scottish Friendly Children’s Book Tour with Scottish Book Trust.

For 25 years, the children's book tour has supported the Scottish Book Trust on its mission to improve youth literacy. Touring the UK, physically and virtually, it visits communities — even those in remote areas — with authors and illustrators to nurture a love for reading, writing, and illustration.

During the pandemic, schools were forced to shut. The book tour evolved as a result of that, going from classrooms to living rooms, providing children with engaging and educational content. This gave a boost to parents, carers, and teachers when they most needed it.

In the first year of the virtual tour, the online content reached over 100,000 families. And although now back in a classroom situation, seeing children face-to-face, Scottish Friendly continues to provide a hybrid model, ensuring that as many children as possible benefit.

Colleagues are encouraged to fund-raise for Action for Children. A group of colleagues took on the National Three Peaks Challenge, raising over £14,000 and more recently. They are also encouraged to volunteer via Scottish Friendly’s partnership with Developing the Young Workforce.

Scottish Friendly is dedicated to continuous learning as a route to greater strength. This starts with listening to colleagues, taking on feedback, and implementing innovations that will bring improvements.

These achievements have brought recognition and some prestigious industry awards, including Best UK Mutual Insurer in the CFI.co awards programme.

[caption id="attachment_26412" align="aligncenter" width="1000"] 3 peaks group[/caption]

"In October, a team of 14 people from Scottish Friendly braved the elements and slept out on Blythswood Square to raise vital funds for Action for Children. This is a true example of how important and dedicated as a company we are to community involvements and fund raising. Their experience was not an easy one, with weather warnings and flooding across most of Scotland but the team came together to successfully complete the challenge ahead.

The team raised an incredible amount of £5,853 and Scottish Friendly agreed to match the amount making a grand total of £11,706 which will be go towards supporting vulnerable children across the UK.

Scottish friendly have had a fantastic year of fundraising with two highlights being the Three Peaks and Boycott your Bed.

We have recently announced our latest accreditation of 1 star ‘very good’ company to work for from the Best Companies. This is a great achievement which shows just how serious Scottish Friendly feel about the wellbeing of our colleagues and something we are extremely proud of."

‘Our Company Rocks!’ Workers at Scottish Friendly Sing its Praises
Scottish Friendly is a great place to work. Who says so? More than eight in 10 of its employees...

Scottish Friendly is dedicated to creating a culture of continuous learning — and to be recognised as the UK’s leading mutual insurer. These ambitions centre around how it feels to work at Scottish Friendly.


Power to the People — But Let’s Make it Clean and Renewable...

CFI.co meets the high-powered management team of Germany’s RENAIO Assets, experts in sustainability

Oliver Platsch and Andreas Grassl had “had it up to here” with large capital companies, slow decision-making processes, and never-ending co-ordination loops.

Platsch and Grassl are, respectively, managing director and managing partner of RENAIO Assets, headquartered in Augsburg, Germany — but they met while working for separate firms.

RENAIO mediates renewable electrical energy. It oversees infrastructure projects and administrates investment funds, with a focus on renewable energy that goes back to 2016.

Agility is vital in a fast-moving field. "Once a large company is finally ready to invest in an interesting asset, after countless checks and frequently many months, it is often no longer on the market,” notes Platsch. “Really exciting assets are highly desirable and don’t wait for large organisations with poor decision-making skills."

[caption id="attachment_26420" align="aligncenter" width="1000"] Oliver Platsch, Managing Director; Karl Jung, Head of Hydropower Operations; Andreas Grassl, Managing Director[/caption]

The two managers were of a shared mindset when they met in 2014, co-operating on a hydropower project — for own, separate companies. They quickly recognised the perfect fit of their CVs. The final impulse to found a company arose from an investment class created in Luxembourg in July 2016: Reserved Alternative Investment Funds, or RAIFs.

The RAIF law provided an ideal framework for the advances the founders had in mind for RENAIO Assets — as did their talents, drive, and expertise. Grassl was at the time in charge of acquisition; Platsch was responsible for sales and financing.

Grassl has more than 20 years of experience in the global asset management of multi-asset portfolios. He has built an outstanding reputation in the industry over the decades. With deep knowledge of managing and running regulated asset-management companies, he understands the sector’s complexities. Since 2016, the graduate in business administration has focused on renewable energy projects, developing and implementing innovative strategies.

Mechanical engineer Platsch holds qualifications in business administration and engineering; he, too, boasts two decades of experience in his field. He developed an in-depth understanding of the technical aspects of project- and business management, working as a technical project manager and managing director of SMEs. His own company, founded in 2014, started exploring renewable energy and infrastructure projects — with a particular focus on hydropower. He has the experience to cover the entire lifecycle of hydropower plants, from planning and construction to operation and maintenance.

Their shared expertise, and Platsch’s extensive international network of contacts in the field, provided an unmissable opportunity for a merger.

Foundation of a Fund
By 2019, that time had finally come, and RENAIO Infrastrukturfonds Wasser (Water Infrastructure Fund) was born.

In addition to aiming for attractive returns for investors, Grassl and Platsch focus on the sustainable transformation of Europe’s energy supply. "A great deal of money needs to be allocated towards that,” says Grassl, “otherwise we won't get a grip on climate change.

"Of course, we need to make money — yet for us, this could only be done by addressing sustainability."

Sustainable Investment
RENAIO Infrastrukturfonds Wasser is one of the few Article 9 Funds (SFDR) in Europe. To qualify, a fund must comply with strict sustainability criteria. Just 3.6 percent of all funds in Europe make the cut.

Infrastructure Fund Water consists of 100 percent sustainable investments, according to the SFDR definition, and at least 85 percent of the invested capital is classified as sustainable according to EU taxonomy.

By 2021, the leadership duo had expanded their management team to include a technical expert: Karl Jung. His expertise in the maintenance, modernisation and servicing of engines and machines is global. He serves as RENAIO Group's technical operations manager. Jung came to Grassl's attention via his own network, and was another perfect fit. He, too, has significant experience in the control of hydropower plants, and has worked in mechanical engineering for 15 years.

RENAIO Assets GmbH is today one of the leading investment managers of hydropower plants. “We manage open, alternative investments and support sustainable projects across Europe in a solution-oriented manner,” says Platsch, “from strategy development and implementation through the investment process to the operational management of the power plants.

“Our focus is on proven, environmentally friendly technologies.”


Belarusian Entrepreneur Denis Primakov Is Developing an Efficient System for Transporting Perishable Products

Despite the fact that the transportation of goods by car in the United States has always been and still is a leader among other modes of logistics, there are a lot of problems in this sphere, especially related to the logistics of perishable products. Entrepreneur Denis Primakov decided to share his experience in transporting goods by refrigerated vehicles in the USA, which he has been accumulating during more than 15 years of practice in Belarus. Denis’s professional management in the Belarusian company Prima Logistics made it possible to increase the company’s profit from 16 to 25%, and increase the cargo capacity of vehicles by 68%, approximately from 33, which is considered the average to 54 pallets.

What Is the Essence of the Problem?

Logistics is one of the largest economic industries in the United States. Numerous logistics companies transport approximately 12 billion tons of cargo per year, generating more than $700 billion in annual revenue. More than a half (68%) of domestic transportation in the United States is carried out by trucks, and the number of trucking companies in the country is about 1.2 million.

[caption id="attachment_26427" align="aligncenter" width="900"] Denis Primakov[/caption]

Despite such impressive performance, companies face a lot of different challenges. For example, 91% of companies have fewer than six trucks. There is also an insufficient number of truck drivers. According to ATA (The American Trucking Associations), by 2028 the driver shortage will reach 160 thousand people.

A number of other difficulties are associated with the transportation of perishable products. For example, the US Food and Drug Administration (FDA) is concerned about potential risks of food contamination during such transportations and disease outbreaks as a result of it. Several episodes have occurred already. There is a well-known case, which happened in the late 1980s, when trucks hauling trash from New York and New Jersey to Midwestern landfills were subsequently used to transport meat, poultry, and other food products.

There is more current incident, which happened in 2007, when Michigan State Police received reports of 22 food violations, including the following:

Lack of a refrigeration unit in the refrigerator;

The temperature in the refrigeration unit is not set to the desired mode;

Raw poultry hung from the roof of the cargo bay, juice dripping onto open food crates.

In 2005, Congress passed the 2005 SFTA (Sanitary Food Transportation Act), which required the Secretary of Health to establish sanitary transportation standards that must be followed by shippers, carriers, and recipients. Despite this, various problematic situations may occur during cargo transportation till present days.

Owners of logistics and trucking companies around the world face such issues. Therefore, it is important to adopt their best practices to strengthen the US transportation industry. This is how Denis Primakov, who is the entrepreneur from Belarus, developed and successfully implemented a number of measures in the Prima Logistics company, which help avoid spoilage of perishable products and reduce the cost of their transportation. These methods and solutions have stood the test of time and helped Denis’s company achieve a leading position in his country. Today, the entrepreneur has developed a project based on the similar system for the United States and intends to implement it.

We had a conversation with Denis Primakov about how he managed to overcome industry challenges and find optimal solutions that satisfy both the client’s requirements and the objectives of the logistics company, regardless of its geography, be it Belarus or the USA.

Efficient System of Cargo Transportation

Denis Primakov is an entrepreneur with more than 10 years of experience. After graduating from the university, where he studied "Traffic Organization and Transport Management", he got qualified as a control engineer. From 2008 to 2013 he worked as a logistics specialist at the transport company Prima Logistics. Subsequently, he became the director of this enterprise in 2013, which is one of the leaders in the field of cargo transportation in Belarus.

Achievements as Director of Prima Logistics

Prima Logistic is a Belarusian automobile transport company that specializes in the fast delivery of perishable products. The company was founded in 2007. To deliver perishable products all across the territory of the Republic of Belarus, Prima Logistic widely uses a fleet of both road trains and single trucks with refrigeration units.

During his management, Denis Primakov was able to bring the company to a leading position, improve the transportation system, and increase the company's revenue by 8 times. To achieve all this, he set a new direction for the company's activities, so instead of general transportation, he decided to concentrate on the transportation of perishable products, which allowed him to acquire special equipment and provide greater opportunities to customers.

Denis also conducted a deep research on the base of potential clients, identified their needs and was able to provide such commercial proposals that made it possible to conclude contracts with the largest manufacturers in Belarus. Among them are the following: LLC Santa Impex, OJSC Savushkin Product, LLC Santa Retail. These are leading Belarusian manufacturers and retailers of food products with a wide geography of supplies.

One of Denis Primakov’s signature innovations as director of Prima Logistics is the introduction of an innovative double-tier loading system in trucks.

Double-Tier Loading System Development by Denis Primakov, Innovative Results, Problems in the USA

One of the main achievements of Denis Primakov is the development and implementation of a double-tier trailer loading system. Pallets with products are loaded into two tiers and secured using guides in the walls of the van and movable crossbars. This is especially practical in cases where the load cannot be stacked on top of each other.

The solution helped optimize transportation, reduce client costs, and avoid damage to the cargo. Over time, this approach helped Denis bring the company to a leading position in the industry in Belarus and sign contracts with the country's largest suppliers.

In the US, there is a problem with inefficient loading, and taking in consideration the long delivery distances within the country, it is easy to understand that with the standard approach of loading a truck body in one tier, the delivery cost is almost twice as high when compared to the two-tier loading, which Denis Primakov developed, implemented, and effectively tested.

The implementation of a similar project in the USA will help reduce the cost of transporting products in refrigerated trucks, increase their reliability, and optimize delivery time. All this is extremely important due to the wide geography of automotive logistics in North America.

Other Solutions at Prima Logistics, Implemented by Denis Primakov

It goes without saying that modernizing truck bodies alone is not enough to comprehensively improve the freight transportation industry. Transportation of perishable products requires compliance with many nuances. Starting from transportation conditions, temperature characteristics, and ending with the state of transport and even the weather conditions. On the one hand, there are strict regulations of the state, sanitary and epidemiological requirements, traffic rules and labor law. On the other hand, there are several tons of perishable products, such as milk, that must be delivered on time.

With the shortage of drivers and the problems some companies have with the installation and proper operation of refrigeration units, Denis's experience is extremely important in the realities of the United States, and that is why he decided to create a transport business in North America.

To increase the efficiency of a logistics company and minimize the occurrence of unforeseen situations, Denis identified several main tasks of transporting perishable products, associated problems and their solutions. Denis successfully applied all these methods in the Belarusian company Prima Logistics and will also use them in his American project, which he is currently working on.

Documents, Selection of Transport, and Technical Equipment

Before sending a food truck to the point of destination, special attention should be paid to documentation. Detailed preparation at this stage will help to avoid inconsistencies, downtime, and violations. The logistician must take into account sanitary requirements for transportation, legislative acts, and also have high communication skills.

Also at this stage it is important to choose the right means of transportation for the needs of the cargo. For one category it is necessary to observe the temperature regime, for another one to think of careful handling, and sometimes all together.

Such an approach requires certain technological equipment. Standard refrigerator specifications and a van's U-value may not be sufficient. Therefore, it is necessary to invest in more powerful equipment.

All the described measures, which Denis Primakov intends to implement in the USA, will improve the quality of delivery and help avoid a lot of problems that the industry still faces. The introduction of an integrated approach at the level of drivers, logistics, and transport technology is a reliable way to increase the efficiency of cargo transportation.

Route Planning, Regular Technical Inspection and Driver Work

A critically important indicator is the speed of transportation. In this case, it is necessary to take into account and comply with all applicable legal provisions. For example, one driver cannot be behind the wheel for more than the allotted time, in the USA this is 11 hours. And to avoid downtime, a team of two drivers must be used for transportation. Then transportation will be carried out practically without stopping, and drivers will have the opportunity to rest.

Despite the fact that while transporting perishable products, the delivery time is shorter compared to other types of cargo transportation, it is important to comply with all speed limits and road rules. Despite the fact that this will help to avoid emergency incidents, in the long run it will reduce the likelihood of vehicle breakdowns.

This can be achieved by training your drivers to drive economically and safely, as well as by introducing special monitoring systems that will transmit information about violations to the operator.

Essential Details To Consider:

It is important to inspect your vehicle on a daily basis. Some companies may neglect this rule by contacting services when a breakdown has already occurred. And if an accident occurs during transportation, this will lead at minimum to missed deadlines, and at maximum, a traffic accident.

An equally important point is route planning. Even if everything is in order with the documents, the transport is in good working condition, the drivers are rested and well-trained, there is a possibility of getting caught in bad weather or on a blocked road due to a traffic accident or repairs. To avoid this, you should regularly analyze the weather and follow the news regarding the roads along the route.

Logistics is all about careful planning and the willingness to flexibly rearrange your plans to suit emerging circumstances. According to Denis Primakov, in order to create a successful logistics company, it is essential not only to develop yourself, but also to train your team, introduce modern monitoring systems, and get a reliable fleet of vehicles.

Therefore, when developing a project to create a transport company in the USA, Denis pays considerable attention to the driver training system and modern telemetric transport monitoring systems, since telemetry and professionalism of drivers, especially on long-distance routes, are one of the most important aspects of competent logistics not only in the USA, but all around the world.

Conclusion

US trucking requires solutions that will modernize the industry. There are still companies that have problems complying with prescribed sanitation standards, a lack of experience while working with refrigerated equipment, and work conditions that force drivers to leave the profession. However, thanks to specialists from other countries who have successfully overcome these challenges in their companies, there is a chance for a new round of industry development in the United States.

So, one of the main achievements of Denis Primakov is the organization and installation of refrigeration units from scratch throughout the company, as well as the transition from standard refrigerated trailers to refrigerated trailers with a double-tier loading system, which will help to significantly increase the cargo capacity of transport, which, taking into account long distances in North America will reduce shipping costs.

His vision, as well as his ability to provide job opportunities to people, can significantly improve the perishable cargo logistics industry in the United States. The main thing is to competently project successful solutions onto North America, with its vast geography and one of the most developed transport systems in the world.

By Alexander Monroe


World Bank: The Digitalisation of Capital Markets Can Boost Bond Market Efficiencies

Since its creation in 1944, the World Bank has issued bonds to raise funds from private investors that have mobilised close to $1tn for sustainable development projects and programmes in middle-income countries.

But while both the World Bank and the banking industry have changed over the past several decades — a period that has included a technology boom our founders could never have imagined — the process for issuing, settling, and servicing bonds has stubbornly remained the same.

Two separate but interconnected developments that have emerged over the past decade have the potential to change that. Distributed ledger technology (DLT) and central bank digital currencies (CBDCs) could mean a huge improvement in access to finance for our member countries through increased efficiency, lower costs, and reduced operational and credit risks — and bring the bond industry squarely into the 21st Century.

[caption id="attachment_20349" align="aligncenter" width="900"] By Anshula Kant Managing Director and Chief Financial Officer, World Bank Group[/caption]

At the World Bank, we have been researching and experimenting in this space for several years. DLT is already in use in several projects to better record, track, and maintain data in fields ranging from health to education and agriculture supply chain. CBDCs are in various stages of research, development, pilot, and launch in more than 100 countries.

These technologies hold great promise, for many reasons. The processing of bond payments today is complex and can take several hours, especially in the case of cross-border payments. Consider the case of a bond investor who does not see their account credited with the expected interest amount. Even if the issuer has taken the necessary steps in a timely manner, problems at any of the intermediary parties — the issuer’s correspondent bank, the paying agent, the clearing system, the custodian, or the correspondent bank of the investor — could create a bottleneck in the entire payment process.

It can be difficult for any single party to know which step in the payment chain is causing delays, and resolution requires continuous follow-up with each of the many stakeholders. The use of CBDCs can potentially cut down processing times for domestic and cross-border payments, leading to faster settlement and reducing credit risk in the markets.

All of this has applications for the World Bank’s middle- and low-income member countries. Very few developing countries have well-functioning debt capital markets because of the market infrastructure required: the establishment of central clearing systems, securities custodians, calculation agents, rating agencies, and the development of a securities-trading and risk-taking culture at local banks.

Digitalisation could enable developing countries to leapfrog some of this and make strong debt capital markets a reality. The use of CBDCs can enable faster payments at lower cost with tangible benefits in cross-border remittances and can facilitate payments in conflict situations.

As with any new technology, digitalisation in the capital markets and payments space carries risks that require detailed analysis and mitigation. As many of these centre around technological and legal issues, any solutions must comply with domestic and cross-border legal and regulatory standards. Several governments and central banks are currently researching, reviewing, and piloting projects to develop relevant laws and policies.

Digitalisation in the bond markets appears inevitable — and there are signs of increased momentum. The World Bank’s successful issuance, servicing, and redemption of a 2018-2020 blockchain-backed Australian-dollar bond spurred many other issuers to experiment with the technology to demonstrate proof of concept. A common challenge identified across many of these issuances has been that they required significant investment of time, money, and effort to create one-off platforms. At the World Bank, we have long believed that it is important for these efforts to be replicable and scalable. Our latest inaugural issuance of a €100m fixed-rate digital bond on Euroclear’s Digital Financial Market Infrastructure (DFMI) is an important and innovative first step in that direction. A pre-eminent International Central Securities Depository (ICSD) system, Euroclear provides critical financial market infrastructure for issuers and investors across the globe. This first issuance paves the way for other capital markets participants to reap the rewards of digitalisation.

The World Bank has long been at the forefront of innovation in capital markets — as the first issuer of a global bond and a green bond, and through our issuance of outcome bonds. Through this first issuance of a digital bond on Euroclear’s DFMI, we are excited about the prospect of digitalisation in capital markets and the many benefits it offers for our member countries.


Dollar Strains — Our Currency, Your Problem: Specialised Investment Research and  Analysis from PGM Global Inc.

Unlike their DM counterparts, EM central banks have started to cut rates, in some cases aggressively, to offset weakening growth amid high inflation. The rate cuts and the weaker global growth outlook have hurt EM equities and local currency bonds. We think that things might get a whole lot worse for EMs. In particular, dollar strains are beginning to emerge, which may require liquidity lines from the Fed or rapid hikes by EM central banks.

The prospects of most EMs are heavily tied to the global growth cycle, of which there are two drivers: the U.S. and China. Strong U.S. goods demand results in strong global industrial activity and large current account surpluses for global exporters. In periods where U.S. industrial activity is weak, Chinese credit usually picks up the baton. In the past, this has resulted in large investment projects and commodity demand, which support global reflation. At the moment, both of these global growth drivers are strained.

The lacklustre state of global growth is laid bare in a variety of metrics. An important one is global trade volumes. World trade volumes are contracting, and China, which accounts for about 50% of base metal consumption, is leading the decline. This means weaker current account surpluses, weaker EM currencies, and weaker FX reserve growth.

At the same time, global growth appears tired, real-rate differentials between Emerging Markets and the Federal Reserve are no longer as supportive of EM carry trades and plentiful dollar liquidity. Inflation is broadly cooling in the U.S., while the Fed articulates a higher for longer outlook. Some EMs have embarked on an aggressive pace of cuts to support growth, even when inflation remains high. Poland is a case in point; the central bank cut rates by 75bps with inflation at 10%, partly to help offset contracting PMIs.

Weak global trade, economic growth, and less supportive interest rate differentials portend weaker EM currencies and less FX reserve accumulation. If EM currencies continue weakening, central banks will be forced to sell FX reserves (U.S. Treasuries) to support their currencies, mitigate balance of payments risks, and stem inflationary pressure.

Indeed, these strains look like they are about to intensify. Oil prices are rising in EM currency terms, implying inflationary and balance of payment pressures will increase. This will mean that EM central banks will come under pressure to tighten monetary policy and shore up their currencies. That might not be difficult when global growth is strong, but it is very challenging when U.S. manufacturing activity is in contraction, when China is deflating a credit bubble, and when Europe is mired in stagflation.

[gallery columns="2" link="file" size="medium" ids="26434,26435,26436,26437,26438,26439,26440,26441,26442,26443"]

To make matters worse, dollar strength usually goes part and parcel with EM deleveraging of hard-currency debt. This also puts pressure on EM central banks to provide USD liquidity and shore up their local currencies.

For over a year, we have argued that slowing global growth is part of the Fed’s plan. The Fed needs to get commodity prices down in USD-terms. Failure to do so would have two consequences. First, inflation would rise, making the Fed appear behind the curve again. Second, sharply higher commodity prices in USD terms would erode, at the margin, demand for Treasuries from large FX-reserve managers, just as the deficit is blowing out.

The clearest way to see the Fed’s conundrum is to look at the term premium vs. commodity prices. Higher commodity prices mean higher term premia, and the higher the yield investors demand for them to buy duration.

The upshot is that EM risk assets will likely underperform significantly in the months ahead. We think that this will create an opportunity for investors. Local currency yields have risen due to higher local policy rates, while dollar-denominated bonds have re-priced higher in line with U.S. Treasuries. At face value, EM bonds look attractive, but we don’t think they reflect the tighter USD liquidity coming over the transom. EM bond investors should remain patient.

Bottom Line
Dollar liquidity is beginning to tighten in the periphery (EMs). As this ramps, EMs will need to shore up their currencies and stem inflationary pressure. Expect EM sovereign bond yields to rise. The Fed will likely respond with liquidity swap lines. That will serve as a signal for investors to search for opportunities.

About PGM Global Inc.
PGM Global Inc. is an established player in international capital markets, offering securities trading, global macro research and transition management services to institutional investors. For over half a century, PGM Global Inc. has provided expertise in execution and advice to institutional clients worldwide. We bring industry-recognised capabilities to the table – including specialised investment research and analysis, a top-ranking global trading desk and state-of-the-art technology – to help our institutional clients worldwide excel in the capital markets.

PGM Global Inc. is Winner of Best Global Portfolio Strategy Team North America for a third year in a row and Winner of Best Transition Management Team North America for a fourth year in a row.

Find out more at www.pgmglobal.com.

Disclaimer
This report was prepared for circulation to institutional and sophisticated investors only and without regard to any individual's circumstances. This report is not to be construed as a solicitation, an offer, or an investment recommendation to buy, sell or hold any securities. Any returns discussed represent past performance and are not necessarily representative of future returns, which will vary. The opinions, information, estimates and projections, and any other material presented in this report are provided as of this date and are subject to change without notice. Some of the opinions, information, estimates and projections, and other material presented in this report may have been obtained from numerous sources and while we have made reasonable efforts to ensure that the content is reliable, accurate and complete, we have not independently verified the content nor do we make any representation or warranty, express or implied, in respect thereof. We accept no liability for any errors or omissions which may be contained herein and accept no liability whatsoever for any loss arising from any use of or reliance on this report or its contents.


Otaviano Canuto: Rising Use of Local Currencies for Cross-Border Payments

At the recent BRICS summit in Johannesburg, the leaders of Brazil, Russia, India, China and South Africa said they wanted to use more of their national currencies for cross-border payments.

Those payments are currently dominated by the US dollar and other global convertible currencies. Like China and the other BRICS members, several countries have sought to develop alternative external payment mechanisms. Pairs of countries have agreed to settle commercial and financial transactions with one another in local currencies, usually facilitated via bilateral agreements between central banks.

Currencies across national borders serve as units of account, a measure of value for trade invoices and financial asset pricing. They also comprise a medium of exchange, settling payments as part of cross-border commercial and financial transactions. They store value abroad, as public- and private-sector foreign reserves, in the form of financial or monetary assets.

From an individual-agent perspective, those functions may be interlinked; payment in a portion of transactions can be required to be made according to national public authority rules.

[caption id="attachment_26451" align="aligncenter" width="900"] Figure 1: Evolution of PoBC Swap Lines (RMB trillions). Source: Perez-Saiz and Zhang (2023)[/caption]

There is an obvious reason why governments might want to use local currencies for cross-border payments. A country subject to geopolitically motivated sanctions issuing the dominant international currencies may constitute destinations of external reserves. This is true for Russia, Iran, and Venezuela, but China and others want to reduce their vulnerability to sanctions.

One can point to an eventual gain in lower stocks of reserves in fully convertible currencies — dollar, euro, yen, sterling — necessary to ensure stability in central bank cross-border payments. A possible cost of bilateral cross-payment using local currencies: if a country has a systematic surplus, it tends to accumulate foreign reserves in the currency of the country on the deficit side, instead of doing so in a currency that is fully convertible and generally accepted.

It is enough for one side to impose the use of local currency in payments to ensure that private agents of the other accept it to make a transaction possible. Brazilian exporters no longer face mandatory convertibility of their foreign revenues into Brazilian currency, and can dispose of their revenues in dollars — or however they wish. But if the Chinese demand to pay in their currency, Brazilians will have no other option if they want to sell there.

The Chinese renminbi (RMB) has seen the greatest expansion in use through bilateral external payment agreements. By the end of March 2023, the People’s Bank of China (PoBC) had signed bilateral agreements for the creation of currency swaps with central banks of 41 countries, amounting to $480bn — with the balance of funds activated via such lines reaching $15.6bn (Figure 1). In addition to such credit swap lines, China has expanded offshore clearing banks.

[caption id="attachment_26452" align="aligncenter" width="900"] Figure 2: RMB Share of China’s Total Cross-Border Settlements. Source: Hung Tran (2023)[/caption]

China has been able to use RMB to settle half its foreign trade and investment transactions (Figure 2). According to an International Monetary Fund working paper by Hector Perez-Saiz and Longmei Zhang (2023), the median use of the RMB went from zero in 2014 to 20 percent in 2021, based on a sample of external payments between China and 125 other countries.

RMB has occasionally been used in bilateral transactions between third parties. Some refineries in India used it to buy oil from Russia. Argentina resorted in August to its bilateral line with China to pay its debt service with the IMF.

An ongoing project to develop a digital multi-currency platform is being implemented by the central banks of China, Hong Kong, Thailand, and the United Arab Emirates, with support from the Bank for International Settlements (BIS). Digital currencies from China (and others) may become viable for external payments in a plurilateral framework.

Russia and India have also been looking to extend the use of their currencies. At a of the Association of South East Asian Nations (ASEAN) in May in Indonesia, members agreed to develop a framework for the settlement of external transactions in local currencies.

BRICS installed, in 2010, an interbank co-operation mechanism to facilitate payments in local currencies. In 2018, it launched BRICS Pay, a public-private partnership project for a digital payment platform in local currencies.

[caption id="attachment_26453" align="aligncenter" width="900"] Figure 3: Core BRICS Countries Have Gained Weight in New Members’ Trade. Source: ING Economic and Financial Analysis 2023)[/caption]

The BRICS summit in August included an invitation to six countries: Argentina, Ethiopia, Egypt, Iran, Saudi Arabia, and United Arab Emirates. Given that the original BRICS have increased their share of new members’ exports and imports (Figure 3), the use of local currencies will rise if they go down that path.

The growing use of local currencies in external payments will be part of a slow and bounded de-dollarisation. If a local currency is not fully convertible, remaining subject to regulations restricting liquidity and asset availability — as with the RMB — it will not fulfil the function of an external store of value for the bulk of agents in the global economy. Nonetheless, a partial fragmentation of the global payments system is under way.

A previous version was published by the Policy Center for the New South

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 visiting public policy fellow at ILAS-Columbia, and principal of the 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. Otaviano has been a regular columnist for CFI.co for the past 11 years.

Follow him on Twitter: @ocanuto


From Beeb ‘Rescue’ to Champion of a Break-out Platform for Content Creators

Ben Lavender, the man once credited with ‘saving the BBC’, is now backing a disruptive online platform.

The former founder of BBC iPlayer is helping to formulate a platform to help content creators get their work noticed — and financially rewarded.

[caption id="attachment_26458" align="aligncenter" width="900"] The main entrance to Broadcasting House in 2019[/caption]

Ben Lavender, from Letchworth Garden City, recalls the moment he presented the iPlayer idea to the BBC’s executive committee. “They gave me a round of applause and the director-general [Greg Dyke] said ‘you saved the BBC’.”

Lavender, now fully behind the Lounges.tv, went on to lead the design and development of the LOVEFiLM video-streaming service in the UK and Germany. That project led to its acquisition by Amazon — laying the groundwork for what would become Prime Video.

He served as the principal product manager for Amazon Instant Video before moving to DAZN, where he took on the chief product officer’s role. Lavender led the product from start-up to launch in nine countries. A key early player in the streaming service dubbed “the Netflix of sport”, Lavender was the sixth staff member to join — enabling him to hand-pick his team.

After six years in that role, Lavender joined Lounges.tv, initially to help shape the concept in its formative stages. He stayed on, and alongside Lounges.tv’s co-founder and CEO, Scott Green, became a key member of the team that pitched the idea to music mogul and TV personality Simon Cowell.

Looking to address long-standing issues in the industry, the platform provides what it calls “a fairer and faster way for content creators to monetise their content online”. It ensures that they keep 80 percent of all their streaming income — and are paid within 24 hours of their on-demand content or livestream.

Catering to creators from musicians and comedians to fitness trainers, Lounges.tv offers a space to share exclusive content through live interactive and video-on-demand streaming. It also offers a free streaming space in North London for creators to produce content, with professional quality cameras and audio, with sound and stream engineers on-hand.

Thousands have signed up to the ad-free platform, and joining Cowell and Lavender in cheerleading is the former manager of Prince, Kiran Sharma.

Ben Lavender said it was a platform that resonated with him. “Now that Lounges.tv has Cowell’s backing, the platform can really kick on and continue to make inroads,” he said.

He views Lounges.tv as a democratising force for people who could not otherwise get involved. “My wife was a professional dancer,” he said, “and her friends still in the business invested in Lounges.tv before they even found out I was involved — so it ticked two boxes for them.

“There are a lot of people in the industry who are excited about this and sense that the future is bright for content creators.”

Lounges.tv Co-Founder and CEO Scott Green says Lavender will play a key role in forming and driving strategy “as we optimise our mobile service”.

The platform would allow content creators “to shine amidst the noise” and garner deserved recognition. “By eliminating the reliance on ads and introducing diverse fan-funding options, our platform departs from the conventional ad-centric model,” he said.


SegurCaixa Adeslas Emphasises Value Creation as a Way to Endure Its Sustainable Growth Strategy

The Spanish insurance company stands out for the digitalization of its proceses that allows it to offer more accesible, personalised and convenient services.

Throughout the world, the insurance industry responds to today’s major societal challenges, providing a tool to counteract uncertainty.

SegurCaixa Adeslas is a leading player in Spain, thanks to its ability to take the best advantage of tailwinds and, at the same time, adapt to meet an emerging environment.

The company, belonging to Group Mutua Madrileña and in which CaixaBank has an ownership interest, achieved last year a turnover of €4,370m in premiums — 5.15 percent up on the previous financial year, thanks largely to good results in the health, multi-risk, and auto fields.

These results derive from a strategy focused on profitable, sustainable growth, as well as the ability to anticipate clients' needs. The firm’s expertise and depth of experience is reflected in the MyBox range of three-year policies with fixed premiums. Its popularity has led to its extension to the business and company segments.

The value proposition of SegurCaixa Adeslas is based on designing solutions that provide access to quality services, on reasonable economic terms. This has cemented the company's position in the health field, with consistent, impressive growth. SegurCaixa Adeslas currently has a market share of 28.5 percent, and meets the care needs of 5.9 million people.

To maintain the level of care quality, the company works with a network of 48,000 healthcare professionals, 217 hospitals, and 1,367 medical centres. There are also 25 Adeslas medical centres with a network 185 dental clinics.

The company stands out for the digitalisation of its processes, offering its clients an expanding range of accessible, personalised, and convenient services. The Adeslas Salud y Bienestar (Health and Wellbeing) digital hub has passed the milestone of a million registered users, offering self-care and prevention features and services.

The platform is a key component in health promotion. The tool is designed to anticipate pathologies and cope with acute episodes. The insurer boosts the efficiency of care resources in a context marked by the rise in the average age of the population. Extended longevity brings with it an increasing need to cope with chronic illness, comorbidity, and the care needs of society.

SegurCaixa Adeslas is the number one insurer in Spain’s accident segment, with a 9.6 percent market share; it is also a major player in the multi-risk segment. In home insurance, the company grew by 10.9 percent in 2022 — posting the highest growth in the top 10 of the segment.


Nordea Asset Management: Uniting Investors to Confront Rising Menace of Methane

By Eric Pedersen, Head of Responsible Investments at Nordea Asset Management

If the world has any chance of slowing the rate of global warming, methane emissions must be cut.

[caption id="attachment_26475" align="alignright" width="366"] Eric Pedersen, Head of Responsible Investments[/caption]

This greenhouse gas is estimated to account for as much as 25 percent of the climate change the planet is experiencing. It’s a short-lived but powerful pollutant — 86 times as potent as carbon dioxide over a 20-year period. It doesn’t stay in the atmosphere for as long, but methane has already had a huge impact on global warming.

The silver lining is that reductions offer a critical near-term opportunity. The effect of cuts achieved today will be felt in less than a decade. The oil and gas sectors are the largest industrial villains, contributing to 25 percent of global anthropogenic methane emissions.

Reducing methane emissions is critical for companies to adhere to the 1.5-degree limit to global temperatures. Cutting its presence in the oil and gas sectors is one of the most cost-effective forms of climate risk-mitigation, the International Energy Agency has said.

For all these reasons, methane is one of the most critical engagement issues facing Nordea’s responsible investments team.

Collaborative Endeavours
In July 2022, Nordea initiated the first phase of a collaboration with selected partners and clients to engage with 15 oil and gas companies on the disclosure and mitigation of methane emissions. Primary engagement efforts focused on encouraging investee companies with methane emissions to join the Oil and Gas Methane Partnership (OGMP) 2.0 framework. Part of the United Nations Environment Programme, OGMP 2.0 is the gold standard in methane measurement, reporting, and target setting.

Helsinki-based Nordea Asset Management asked the invested companies to identify what they were doing to reduce methane emissions, and to share the cost/benefit analysis of these actions in engagement meetings. During the second half of 2022, phase one of the engagement was expanded to additional companies — and Nordea’s group-wide efforts have continued unabated.

Although gaps in the maturity of emissions efforts have been noted by the financial services group, it has noted that progress can be achieved via engagement. Many companies are taking action to reduce emissions, and are in dialogue with the OGMP 2.0 on membership.

In recent positive moves, the Brazilian state-owned oil and gas giant Petrobras and US group EOG Resources have joined the OGMP 2.0.

Power of Engagement
During 2022, Nordea — as lead for the Climate Action 100+ investor cohort — engaged with Petrobras as part of the collaborative dialogue on methane and other climate topics, such as net-zero reporting and targets. It put the focus on Petrobras’s methane emission volumes, its suitability as a candidate for the OGMP 2.0, and the urgent need to cut emissions to align with the Paris Agreement.

[caption id="attachment_26476" align="aligncenter" width="1000"] Methane gas flare. Photo: effective stock photos/Shutterstock.com[/caption]

International Energy Agency data have clearly identified high levels of abatable emissions at offshore oil and gas assets, where Petrobras is a dominant player. The firm is in a production growth phase, so it should be prioritising engineering solutions to minimise methane emissions in new fields and production units. Nordea saw a range of abatement opportunities at Petrobras, and expects additional, asset-level data on methane emissions, such as those reported to the OGMP 2.0.

The Nordic company sent a letter to the CEO of Petrobras, encouraging membership of OGMP 2.0, and met with company representatives in the second half of last year. It stated its expectation: that Petrobras would follow the example set by its peers and business partners, and improve emissions measurement and management.

And it worked. Petrobras acknowledged the importance of the issue and conducted an extensive technical review on the feasibility of reporting to OGMP 2.0 standards. Petrobras joined the OGMP 2.0 fold in January.

Engagement is a powerful tool for investors; the improved management of sustainability risks and opportunities is vital to creating returns with responsibility. Nordea Asset Management sees engagement as a competitive advantage, increasing the likelihood of long-term success — which benefits companies, investors, and society.


A Merger that Sparked a Revolution in India’s Modern Banking Universe

Despite its twists and turns, the harmonious merger between a fintech NBFC and an Infrastructure Bank turned into a massive success and an enduring example for future such mergers.

India’s IDFC FIRST Bank started out with a vision: to build a world-class financial institution guided by ethics, powered by technology, and for larger social good.

[caption id="attachment_26482" align="alignright" width="350"] MD & CEO: V. Vaidyanathan[/caption]

Ethical Banking is one of the key tenets of the Bank’s vision statement. But saying it one thing, living it is another. So, the Bank followed it up with concrete action. The bank’s survey revealed that most customers are unaware of the large amount of fees they pay in small bits and pieces, don’t understand the complicated descriptions, and the complicated calculations behind them. So, in one stroke, the bank simply waived off fees on savings accounts and made it simple.

Thus, IDFC FIRST Bank became the first and only bank to offer its customers Zero Fee Banking for savings accounts. “We won’t touch your bank account for this fees or that” says the Bank.

Similarly, IDFC FIRST Bank became the first bank to offer monthly credit on savings account. When the bank launched its credit cards business, it came with features such as rewards points that never expire and dynamic APR linked to credit scores, not the flat 36-42% APR charged by most banks to all customers.

This hinges on the conviction that income earned in unethical ways is “not worth earning”.

IDFC FIRST Bank has transformed from infrastructure to retail banking in the four years since its merger with Capital First in 2018. The current-to-savings or CASA ratio has risen most rapidly for any bank in India’s Banking history, from 8.6 percent to 46.4 (as on September 30, 2023).

After reporting losses for six quarters after merger due to infrastructure and corporate loans, the bank turned around in FY 21. The Bank recorded profit after tax of Rs 7.51 billion ($91m) in Q2-FY24, a growth of 35% YoY, with capital adequacy of 18.06 percent. It also boasts high asset quality, with the retail, rural, and SME book showing gross NPA (non-performing assets) of only 1.53 percent and net NPA of 0.52 percent as of September 30, 2023.

IDFC FIRST Bank has taken up ESG as a core endeavour and pressing hard on its goals. Its governance scores are high, the business lines support social goals, and there are ongoing efforts to achieve environmental goals. It financed over 2,00,000 toilets and sanitary fittings under its first-of-its kind WASH Loans with loans of less than $500 as part of this initiative, and more importantly, reported collection rates of 99.7%.

MD & CEO V. Vaidyanathan previously worked with Citibank and ICICI Group. Chasing an entrepreneurial opportunity, he acquired a small NBFC with a retail loan book of $14m, renamed it Capital First, built it to scale of $4b in loans, grew market cap 10X in eight years, and then to acquire a commercial Banking license, merged it with IDFC Bank in 2019. The retail loan book has since grown to $15b, growing at 25% per year. It has confounded analysts who were once sceptical of its ability to grow retail deposits in a fiercely competitive market dominated incrementally by private banks. It is one of the unique banks in India growing deposits consistently by over 40% for five years, in a banking system where deposits are growing by 12-13%.


James Caan CBE, an Ambassador for the Transformational Power of AI Development, Welcomes the £500m Boost for AI Development in the Autumn Statement

AI has the power to be a game changer for the UK economy, and so I was incredibly relieved to see the Chancellor pledge £500 million into AI development in his Autumn Statement. It’s investment at a level that matches the huge significance of AI and the UK’s urgent need to embrace it.

Since the mid-2000s, the UK has been one of the worst performers when it comes to productivity growth among advanced economies. From 2010 to 2015, productivity grew at only 0.2 percent a year. If the UK embraces the AI opportunity, the economic gains available from AI could mean an uplift of up to 22 percent of current GDP by 2030.

Investing in AI development is an opportunity that we can’t afford to miss.

The AI skills gap is huge and getting bigger - demand for AI roles is increasing but the number of workers with the right digital skills lags behind.

Now it’s time to focus on how the UK can address its huge AI skills gap going forward.

We need to focus on short, medium and long-term impact, and I think any strategy needs to weave together three key strands:

COLLABORATION: Initiatives, partnerships and joint efforts between government, private-sector businesses, and research leaders is key.

TALENT PIPELINES: Improving diversity in AI roles is important, and in the short and medium term, companies need to establish connections with academic institutions (including through sponsorship) to improve their incoming talent funnel. Ideally, they can be incentivised to run training schemes and apprenticeships, and to offer re-skilling opportunities for people who studied data-relevant subjects in the past.

EDUCATION: For medium to long-term change, teaching and training relevant to AI careers needs to be embedded within the education system.


Political Upset in The Netherlands: Voters Turn to Firebrand Leader

In an election upset without precedent, Dutch voters on Wednesday chastised the ruling coalition of longtime prime minister Mark Rutte and handed the levers of power to political provocateur Geert Wilders whose Party for Freedom (PVV) unexpectedly secured 37 seats (+20) in the 150-strong Lower House and became the largest bloc in parliament.

Marginalised and ostracised for over 17 years by the mainstream political establishment, Wilders saw and seized his chance after Rutte’s successor as leader of the centre-right VVD (Popular Party for Freedom and Democracy), Dilan Yeşilgöz-Zegerius, broke with tradition and refused to rule out the anti-immigrant PVV as a possible coalition partner.

[caption id="attachment_26489" align="aligncenter" width="783"] Geert Wilders[/caption]

Today, Wilders was invited to name an “explorer”, Gom van Strien, to map the preferences of the fifteen political parties represented in the new parliament, a first step in a coalition-building process that is expected to take months.

The massive PVV gains took most political pundits by surprise and threw the left into disarray. Whilst the Green/Labour electoral alliance gained eight seats, it did so at the expense of smaller progressive parties. The overall representation of the left was reduced to just 50 seats.

The outcome of the vote was a great disappointment to Green/Labour leader Frans Timmermans, the former climate tsar of the European Commission who gave up his Brussels job with the express intention to succeed prime minister Rutte.

However, Timmermans alienated voters with his refusal to blame immigrants for the country’s ills and his insistence on meeting the climate targets set by the EU. His statesman-like appearance and demeanour were no match for Wilders, an experienced political street fighter, who doggedly stayed on message and promised to prioritise the interests of native-born Dutch. Whilst no climate change denier, Wilders opposes vast outlays of cash on the energy transition.

Tsunami

In a country that saw immigrant arrivals increase tenfold over the past decade to more than 220,000 annually, it proved easy for Geert Wilders to blame the acute housing crisis on this “tsunami” of newcomers. Wilders found an unlikely ally in Pieter Omtzigt, the country’s most celebrated member of parliament.

Long a thorn in the flesh of the ruling Christian-Democrat Party (CDA), Mr Omtzigt left that party to eventually form his own. In its first election run, Mr Omtzigt’s New Social Contract (NSC) secured twenty seats in parliament.

Whilst not as radical as Wilders’ PVV, the NSC seeks to limit immigration to around 50,000 per year. Amongst others, it aims to reduce the number of foreign students by reinstating Dutch as the primary language of instruction at Dutch universities.

Omtzigt rose to near stardom after taking the government to task over several scandals and failures involving an overzealous tax service and the inadequate compensation offered to thousands of homeowners whose properties were damaged or became uninhabitable due to severe subsidence in Groningen province caused by seven decades of natural gas extraction.

Toning Down the Rhetoric

The NSC leader expressed a willingness to open coalition talks with Wilders as long as the PVV refrains from its pursuit of the unconstitutional policy proposals contained in its programme such as the closure of mosques and the banning of the Koran. Wilders, meanwhile, has indicated his readiness, if not eagerness, to tone down the rhetoric and let go of his signature obsession with Islam: “We now have bigger issues to address,” he said.

Whilst the NSC seems a probable coalition partner, the leadership of the liberal VVD may not be ready to serve in a cabinet led by Wilders. Although opinion polls detected a strong preference amongst VVD voters for a “deliciously” right wing government, the party just lost ten of the 34 seats it secured in the 2021 general election.

Earlier today, VVD lead candidate Dilan Yeşilgöz-Zegerius reiterated that she would not serve under Wilders. She also said that the party may, at most, be counted upon to provide incidental support to a PVV-NSC minority government. That unusual scenario would imply both instability and a lack of experience in government. Whilst the NSC has attracted several experienced administrators, the PVV faction includes a host of blue-collar workers who have never held public office.

However, Mrs Yeşilgöz-Zegerius’ own position in the VVD is far from secure after running a ramshackle election campaign in which she miserably failed to impress and had to rely on post-it notes to recite one-liners. The oft-repeated assurances that she was ready to serve as prime minister sounded hollow and prompted one pundit to remark, “if you feel the need to say that repeatedly, you’re probably not ready for the job.”

Mrs Yeşilgöz-Zegerius is blamed for the party’s dismal performance at the polls - and for flip-flopping on Wilders’ suitability as a possible coalition partner. Whilst Mrs Yeşilgöz-Zegerius ran on a moderately anti-immigration platform, her party was held responsible for failing to respond decisively to the crisis, even denying its existence. Voters turned to the “real deal” instead, hoping that Wilders can succeed where prime minister Rutte failed.

However, it is far from certain that Wilders will become The Netherlands’ next prime minister. His extremist views on Islam and past reluctance to condemn Russia for its invasion of Ukraine make the PVV frontman a nightmare for the foreign service. In Brussels, news of his electoral triumph caused consternation. His anti-EU stance is well known as is his admiration for Brexiter-in-Chief Nigel Farage. The hope is that Wilders will prove more accommodating once in power, following the example set by eurosceptic prime minister Giorgia Meloni of Italy.

Geert Wilders is, however, not expected to find anywhere close to a majority in parliament for a binding referendum on a ‘Nexit’. The EU did not feature during the election campaign, not even as a footnote. The PVV, wisely it would seem, did not table its objections to Europe and said it would try and negotiate with Brussels for opt-outs on a case-by-case basis.


Asian Development Bank: Optimising Capital Management to Meet Challenges of Asia-Pacific Development

Multilateral development banks are turning their attention to the bolder action needed to help those who suffer most in crises.

Capital management is a strategic priority for multilateral development banks (MDBs) — it underpins their lending capacity and development mandates.

In a world roiled by crisis, MDBs have a crucial role to play. As extreme climate events, war and food insecurity engulf countries and continents, MDBs have been called on to take bolder actions to provide the trillions of dollars needed to help the poor and vulnerable who are often the hardest hit.

[caption id="attachment_26496" align="aligncenter" width="900"] By Roberta Casali Vice-President for Finance and Risk Management[/caption]

Last year, an expert panel convened by the Group of Twenty (G20) called for reforms to boost lending capacity through capital management optimisation. A G20 report, The Triple Agenda: Strengthening MDBs, estimates that they should deliver $260bn of the $3tn needed annually for climate action and to help meet the UN’s Sustainable Development Goals (SDGs).

The Asian Development Bank (ADB) has heeded the call. After months of hard work and consultations, it approved a review of its Capital Adequacy Framework (CAF) in late September. The review unlocks $100bn in new funding over the next decade, increasing the bank’s annual new-commitments capacity by $10bn — an increase of about 40 percent to more than $36bn annually. The reforms are designed to maintain the AAA credit rating essential to the provision of low-cost funding, with long maturities to developing member countries.

ADB has enhanced its CAF, adjusting the prudential level of capitalisation to allow for greater risk, in aggregate, while strengthening other aspects of the framework. Under the new CAF, the same level of capital can support a larger balance sheet. This, in turn, will increase ADB's lending capacity for developing member countries — at a time when resources are much needed.

To mitigate risk, the new CAF introduces a more granular risk-appetite statement, and enhances key pillars of its financial planning approach. The goal is to ensure that — as ADB increases its lending activity and fulfils its countercyclical role — the bank maintains its triple-A rating.

Capital Management Reforms

So: what, precisely, has changed?

ADB has enhanced aspects of risk appetite, risk measurement, and financial planning.

On risk appetite, in light of global circumstances and development challenges, ADB has adjusted its minimum level of capitalisation to boost lending capacity. At the same time, it is strengthening aspects of its risk-management framework to keep hold of its AAA rating. These aspects include an appetite for credit exposure to sovereign borrowers, and the introduction of a pre-agreed capital-management and recovery plan.

When it comes to risk measurement, the bank adopted a more transparent framework — while increasing the confidence level to align it with the AAA rating. The review updated the methodologies for measuring the capital required for credit risk in the operations portfolio, equity investments and currency risk, and the diversification benefit. The changing measurement will, in aggregate, lower the estimate of capital required for the material risks faced by ADB.

On financial planning, the new CAF creates an explicit countercyclical buffer to provide certainty on ADB’s capacity to increase lending in response to crises. It outlines a capital-management and recovery plan should the capital utilisation ratio reach certain trigger levels.

This will ensure that ADB takes early action to remain adequately capitalised, even in the face of severe financial stress.

Multiplier Effect

But MDB financing alone is not enough to meet global development challenges. It can generate billions of dollars — but trillions are needed for climate adaptation and mitigation, disaster resilience, and to attain the SDGs. Private capital mobilisation will play a critical role, through the expansion of the private sector’s involvement in development agenda.

It’s vital that ADB and other MDBs catalyse the move by leveraging their balance sheets to generate private investment at all stages of the project cycle. Policy development should be promoted upstream to create an enabling environment for private investment, bankable projects created midstream through advisory support, and private capital crowded-in downstream through appropriate structuring of development projects.

Not Yet Done

The new CAF lays the foundations to boost ADB’s lending capacity. There is a growing shareholder focus on ensuring that MDB capital is efficiently used to respond to the development challenges facing the world.

Co-ordination will be stepped-up with peer banks and credit rating agencies to maximise capital management efficiency. MDBs must continue to find ways to unlock more financing. The challenges are many, but they can be overcome by unity.


UAE’s COP28 Gathering Scores Some Initial Successes

White hydrogen and AI to the rescue...? Wim Romeijn reports.

Beneath our feet, the Earth manufactures — and hides — a trove of clean energy.

In Lorraine, a former coalmining region hugging the French-German border, a reservoir containing up to 260-million metric tonnes of natural hydrogen has been discovered. That’s almost four times the annual volume of commercially produced hydrogen.

The discovery of white (natural) hydrogen in France gives a boost to small independent energy companies scouring the world for such reserves. According to Geoffrey Ellis, a geochemist at the US Geological Survey, white hydrogen may be more prevalent than previously thought. Drilling for natural gas and oil will often tap into natural hydrogen reserves — though in the past, such discoveries have been largely ignored. Earth produces around 23 million tonnes of hydrogen each year, with reserves accumulating in underground traps.

While everybody was focused on drilling for oil and gas, white hydrogen finds were routinely dismissed. That dynamic is changing, says Julian Moulin, president of Française De l’Energie, a clean-energy firm capturing methane gas from coal seams in Lorraine.

Moulin is intensifying the company’s efforts to explore and extract white hydrogen. “However,” he cautions, “it will take several years to develop the tools and technology necessary for the commercial exploitation of the hydrogen reserves.”

Grey, Green, and White

Hydrogen, a potential substitute for fossil fuels, is classified according to its provenance and manufacture. Commercial hydrogen, made by splitting water into hydrogen and oxygen, requires energy. When the process is powered by renewable energy, the resulting hydrogen is “green” but when fossil fuels are used, it is classified “grey”.

In Nature, hydrogen is continuously generated when hot water interacts with iron-rich rocks at high pressure. The US Geological Survey suspects that just a few Lorraine-sized finds could provide enough energy to power the world for centuries — even millennia.

The nascent understanding that the Earth is its own hydrogen factory has sparked a gold rush of sorts, with even Bill Gates getting in on the action. Gates provided $91m in funding from his Breakthrough Energy Ventures to Colorado start-up Koloma, which developed a process to break down iron- and magnesium-based minerals deep in the Earth’s crust to release hydrogen-rich fluids.

Scientists long believed that natural hydrogen did not accumulate in large underground reserves, but percolated through the crust in small quantities. That theory was disproved in Bourakébougou, a village some 70km north of Bamako, the capital of Mali.

Smoking Causes Harm

There, in 1987, an unproductive 108-metre-deep well caught fire after a lit cigarette was dropped into the hole. Worker Mamadou Konaré was badly burned, but survived. The fire, smokeless and blue, took weeks to snuff out. The well was capped and all but forgotten until Aliou Diallo, chair of local oil and gas company Petroma, in 2007 acquired the right to prospect the region for oil and gas.

Almost immediately, the capped well sparked the interest of Petroma.

The company brought in Canadian engineering firm Chapman Petroleum to establish what was coming out of Bourakébougou. It was 98 percent hydrogen gas. The discovery has since been hailed no less significant than the one made 164 years ago in Titusville, Pennsylvania — the world’s first commercially viable oilfield.

Today, Bourakébougou is powered almost entirely by the same hydrogen that burned the unfortunate Konaré.

Researchers at investment bank Goldman Sachs predict that the global hydrogen market will breach the $1tn barrier by 2050 as it becomes an increasingly important piece of the net-zero target.

Subsidies started pouring in, with the 2021 US Bipartisan Infrastructure Law that includes $8bn for the development of regional hubs for clean hydrogen production. The more recent Inflation Reduction Act provides a tax credit of $3 per kilo of zero-carbon fuel. But current subsidies exclude the drilling for white hydrogen.

Funding Loss and Damage

Engineers’ optimism is not shared by the 70,000 scientists, politicians, business leaders and others gathered in Dubai for the 28th Conference of Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). Much-maligned, and the source of much scepticism, COP28 got off to an unexpectedly rousing start. On the first day, delegates unanimously agreed to set up a loss-and-damage fund — and pledged up to $385m to help poorer nations.

The United Arab Emirates, COP28 host, agreed to provide $100m, as did the EU and Germany (a joint $245m). The US earmarked just $17.5m for the fund, while Japan committed $10m. The fund is a victory after years of wrangling over the question who should pay for the impact of climate change.

In a decision hailed as “pivotal” by the World Health Organisation (WHO), delegates from 124 countries endorsed the Declaration of Climate and Health, the first-ever political statement on the health impact of climate change. COP28 president Sultan Ahmed al-Jaber also announced an “initial tranche” of $1bn in “aggregated financing commitments”.

Former Bank of England governor — and current UN special envoy on climate action and finance — Mark Carney reminded the UAE that its ability to confront the fossil fuel industry would ultimately determine the achievements of the conference. Carney agreed that the UAE had been a leading producer of renewable energy — but noted that it sits atop some of the world’s largest oil reserves.

Sultan Al Jaber has invited criticism with unfortunate slips of the tongue which detract from his accomplishments in building consensus. Carney asked the COP28 president to openly challenge the fossil fuel industry. Sultan Al Jaber answered the call by garnering the support of 118 countries for a pledge to triple renewable energy capacity to 11,000 gigawatts by 2030.

In September, the International Energy Agency (IEA) had argued for the tripling of renewable energy to meet the goals of the 2015 Paris Agreement. Its report also stressed the need to phase-out fossil fuels not offset by carbon sequestering.

AI Debut

In Dubai, researchers and business leaders have sung the praises of AI for mapping and fighting climate change. It can analyse vast volumes of data, better than humans and computers can, leading to more accurate models and predictions. On the opening day of COP28, the UN revealed that it had struck a partnership with Microsoft for the development of an AI-powered tool to track compliance with pledges to reduce carbon emissions made by countries. Delegates from Google said that by 2030, AI may help reduce by a tenth the harmful emissions, via improved efficiencies in farming and industrial production.

Microsoft president Brad Smith admitted that the increased use of AI is causing a spike in the demand for energy, but said that his company was working on the new sources of renewable energy and improved sustainability of its data centres.

Smouldering Embers

At COP28, the call for climate action is unanimous, and loud. Promises, pledges, declarations, and commitments are made by the dozen. Creative minds are in overdrive to make a square peg fit a round hole. Political minds are also busy calculating the economic impact of promises made, and how to skirt compliance without being seen to break to agreements. Others are working out how best to monetise the sentiment.

For all its unanimity, the world remains ambiguous, if not divided, over climate change.

Since 1990, about the time when concerns about climate change started rising along with global temperatures, the world has more than doubled emissions from coal-fired power plants. The burning of coal remains the single largest source of carbon emissions: each year, 10 billion tonnes are pumped into the atmosphere via the smokestacks of some 6,500 coal-fired power plants.

Since 2014, the 38 members of the Organisation for Economic Cooperation and Development (OECD) have reduced their emissions from coal by an average of six percent annually. That reduction has been overshadowed by emissions growth in emerging economies, which account for some 80 percent of global carbon emissions.

And, for all the apparent urgency in Dubai, over 1,000 new coal-fired plants are being built. Japan, turning its back on nuclear after the Fukushima disaster, is building 22 new coal-burning plants. Once operational, they will emit almost as much CO2 as all new passenger cars sold in the US.

Politics versus Engineering

Coal is far from dead. Perhaps, then, it’s time to name and shame the “Dirty Dozen” — from Australia and India to China and South Africa, and the other coal miners and users. Otherwise, what’s the point of bringing together some 70,000 participants concerned about the climate?

Look to Lorraine for a possible solution, but don’t expect deliverance from politicians. The fault lies with the world’s diversity of interests. Human-induced climate change was caused by technology, and will be addressed by technology. Engineers and scientists hold the key.


Precision Medicine and Gender Disparities: Research Promotes Major Advances in Brain Health

In the ever-evolving world of healthcare, precision medicine has taken centre stage — and for good reason...

Precision medicine can tailor strategies to suit individuals, leveraging unique genetic, environmental, and lifestyle factors. It reduces the burden of chronic diseases, enhances the effectiveness of treatments, and has cost-saving potential.

But gender disparities persist in the healthcare field, particularly in neuroscience. Research has shed light on crucial distinctions between male and female brains, impacting cognition, behaviour, and disease responses. These disparities extend to the prevalence and symptoms of various brain disorders, influenced by biological and environmental factors. Recognising and addressing these differences is a healthcare imperative, and an opportunity to enhance outcomes and equity.

[caption id="attachment_26502" align="aligncenter" width="900"] 78th United Nations General Assembly in New York: Science Summit[/caption]

In some specific diseases, sex and gender play a significant role.

Alzheimer's

Women make up nearly two-thirds of all Alzheimer's patients.

Women tend to experience more severe symptoms and faster disease progression.

Multiple Sclerosis (MS)

MS is more common in women: a ratio of 3:1.

Women with MS face extra complications due to hormonal changes.

Migraines

Again, more prevalent in women, and the frequency and severity vary with hormonal fluctuations.

Depression and Anxiety

Women are more likely than men to experience depression and anxiety disorders.

Gender disparities are notable in these conditions, as well as the nature and duration of symptoms.

The Women's Brain Project (WBP), a Swiss-based non-profit, investigates sex and gender determinants on health, with a focus on brain and mental health. WBP champions the inclusion of biological (sex) and socio-cultural (gender) aspects across all healthcare levels.
The overriding mission is to leverage sex and gender disparities as gateways to precision medicine, identifying biomarkers, risk factors, symptoms, disease progression, and treatment responses.

At the Science Summit of the 78th United Nations General Assembly in New York, global leaders rallied to the brain health cause. Policymakers, researchers, clinicians, industry leaders, patient representatives, and non-profit organisations united to raise the issue’s profile on the UN agenda. Doctor Antonella Santuccione Chandha, CEO of WBP, spoke at the event and stressed the significance of comprehending the brain's intricacies on the route to discovering effective treatments.

Santuccione Chandha announced there the establishment of the Women's Brain Project Foundation, dedicated to operating the world's first sex- and gender-precision research institute.

It will rely on cross-functional expertise, engaging experts from various domains to collaborate on innovation and research. The goal is to ensure that sex and gender are considered in advances in precision medicine.

The summit was also used to launch the Global Brain Capital dashboard by Rym Ayadi. The tool quantifies and tracks brain capital across dimensions, including cognitive skills, mental and physical health. Social capital is tracked at individual, community, country, and global levels — and it incorporates sex and gender as crucial variables.

The dashboard can help policymakers, researchers, industry leaders and civil society to gauge global brain health and develop beneficial interventions. It fosters a deeper understanding of sex- and gender-specific needs and challenges, paving the way for medical solutions that can lead to financial opportunities.

The Women's Brain Project Foundation, in collaboration with partners in the Brain Capital Alliance, is leading this journey. Initiatives extend to the 2024 World Economic Forum in Davos, where the foundation will showcase the economic potential. Together, the various groups are poised to drive positive change, financial opportunities, and brain health worldwide. “The time for action in brain and mental health,” says the WBP, “is now.”

By Laura Castro-Aldrete and Antonella Santuccione Chadha