Innovative Mena Advances Move Insurance Company to the Head of its Sector

Qatar Insurance Company’s group management shows leadership flair with ESG initiatives and a focus on client-centricity.

[caption id="attachment_24622" align="aligncenter" width="900"] CEO: Salem Khalaf Al-Mannai[/caption]

Despite soaring inflation, geopolitical uncertainties, natural catastrophes, financial market volatility and the pandemic, the Qatar Insurance Group (QIC) turned in gross written premiums of QAR7.8bn (£1.76bn) in the first nine months of 2022.

Under the leadership of group CEO Salem Khalaf Al-Mannai, QIC embarked on a group-wide digital transformation programme to improve customer experience, maximise efficiency gains, and modernise its offerings.

The group launched Anoud Technologies, a wholly owned subsidiary, with a best-in-class insurance IT platform, Anoud+. It provides insurers with a comprehensive way to manage all aspects of their programmes. The company was selected by leading European and Caribbean insurance groups to lead a multimillion-dollar IT initiative. Anoud Tech became the first Qatari firm to export internally-developed IT solutions to the regions. The integrated insurance solution is on ACORD and Alchemy Crew’s top 10 list of companies changing the industry through insurtech.

In April 2022, QIC launched Digital Venture Partners (DVP), a unit reshaping the digital insurance landscape. It leverages existing assets and partners with major tech companies and corporations to act as a hub connecting regional and international ventures with strategic growth opportunities.

QIC, in partnership with Deloitte, Google Cloud and QIC Digital Venture Partner (QIC DVP), hosted the Insurtech MENA Summit 2022, where technology leaders, investors and insurance innovators came together to unlock improved customer experiences in the mobility and health insurance verticals. With new value propositions and solutions in big-tech analytics, Al and machine learning, it uses behavioural economics to lead the MENA insurtech ecosystem.

The summit brought together insurance and technology pioneers, investors, and six insurtech start-up finalists from InsurHack MENA, the first insurtech “hackathon” in the Mena region.

In May 2022, QIC launched the all-inclusive qic.online service, the fastest online insurance portal in Qatar which allows customers to buy and renew insurance policies in less than two minutes.

In support of Qatar’s ambition to reduce the country’s greenhouse gas emissions by 25 percent by 2030, and guided by a long-term ESG strategy, QIC created a sustainability committee. The body ensures that ESG guidelines are incorporated in its underwriting and asset-management mechanisms.

The company’s digital and ESG strategies are aligned with the Qatar National Vision 2030, which emphasises the development of a digital economy, reducing the nation’s dependence on hydrocarbon industries.


Over Half a Century of Service and Specialisation — the Years and the Successes Tell the Tale

The Qatar Insurance Company stands alone as a regional and international leader in its field.

QIC, the first domestic insurance company in the State of Qatar, was founded in 1964. Today, it is the dominant insurer for the GCC and Mena regions.

QIC is recognised as a core contributor to the development and diversification of the national economy. It has, from the very beginning, been a leader in the creation of innovative insurance solutions catering to regional needs.

QIC is one of the most highly rated insurers in the Gulf, with a rating of A (Excellent) from AM Best and an A- from Standard & Poor’s. QIC is listed on the Qatar Stock Exchange, with a market capitalisation of more than QAR7.6bn (£1.72bn).

Financial Strength

The Qatar Insurance Company has had a stable track record of profitability throughout its 58 years of operations. The group’s gross written premiums amounted to QAR7.8bn (£1.76bn), as QIC’s domestic and Mena operations continued to expand its gross written premiums by 14 percent to QAR2.3bn (£0.52bn).

QIC Global generated QAR5.5bn (£1.24bn) in premium volume, representing approximately 70 percent of the total gross written premiums. QIC Group generated an underwriting income of QAR272m (£61.5m) in the first nine months of 2022 from its continuing operations, underlining robust performance from its domestic business.

Global Footprint

QIC’s international operations operate under the umbrella of Antares Global, an insurance and reinsurance group with a geographic footprint spanning Qatar, the UAE, Oman, Kuwait, the UK, Singapore, Switzerland, Bermuda, and Gibraltar.

The Qatar Insurance Company is a publicly listed composite insurer, and part of the QIC Group. QIC’s diverse portfolio of personal insurances (car, home, travel, boat, personal accident benefit) and commercial insurances (energy, marine and aviation, property and commercial, medical and motor) are key to the company’s success. These combine excellent distribution and service-delivery with a low administrative-expense ratio for the group’s core operations, forming part of its enhanced business model.

Oman Qatar Insurance Company (OQIC), Kuwait Qatar Insurance Company (KQIC), and UAE Qatar Insurance Company (UAEQIC) are Qatar Insurance Group subsidiaries in the GCC region. They deliver innovative retail solutions for home, travel and car insurances to every segment of their customer bases. The companies serve as a conduit for insurance services across the GCC, and connect overseas insurance interests via their global network.

Antares Re is a Class-4 insurer and a global multi-line reinsurer, writing all major property, casualty and speciality lines of business. With its headquarters in Bermuda, and with offices in Zurich and London, Qatar Re is linked to the world’s major reinsurance markets — and the core operations of its clients.

[caption id="attachment_24626" align="aligncenter" width="900"] Group structure[/caption]

The company, backed by a parental guarantee from Qatar Insurance Company SAQ, benefits from QIC’s substantial capital base. The company is rated A by S&P Global Ratings and AM Best.

Antares Global, with branches in London, Shanghai, and Singapore, operates at Lloyd’s, the world’s prime global insurance and reinsurance market. This specialist insurer and reinsurer is recognised worldwide for its services.

Through its highly experienced team of underwriters, Antares provides a diversified global range of property, reinsurance, casualty and speciality underwriting services. Antares provides quality, security, and continuity, taking a consistent approach to risk-transfer. It boasts security ratings of A+ from S&P and A from AM Best, assigned to Lloyd’s.

Epicure Islamic Investment Management is a 100 percent subsidiary of QIC Group. Founded in May 2019, the Qatar Financial Centre-based entity manages more than $7bn in investment assets across equites, fixed income, and real estate.

Qatar Insurance Real Estate is another wholly owned subsidiary of QIC Group. The company’s portfolio consists of high-quality real estate assets, mostly in Qatar. QICR invests in income-generating assets with strong anchor tenants.

Qatar Life & Medical Insurance (QLM) is publicly listed company for life and medical insurance solutions, regulated by Qatar National Bank. It provides best-in-class services to its clients with unique value propositions.

The company’s mission under the leadership of CEO Salem Khalaf Al-Mannai: to continuously provide outstanding medical and life coverage as a trusted healthcare partner.


Austria’s CQ Investment Group is Winning Firm Partners in Global Corporate Circles

Not too big, not too small, recognised by all as a leader in impact investment — CQ Investment Group has proven itself time and again.

Somewhere between corporations and SMEs is a sweet spot — the medium-sized enterprise — and Austrian firm CQ Investment Group has been comfortably settled in that niche since 1991.

The group consists of several asset management companies with the emphasis on quantitative strategies, as well as ESG and impact investing. Other strengths are specialisations in private debt and alternative investments; particular expertise has also been developed in the management of international pension funds. CQ Group investment products and services are rated among the best in their respective categories. They have won multiple awards and recognition from institutional clients.

In the three decades since it was founded in Vienna, CQ Investment Group has established itself in 21 countries. Its financial products and services are distributed to institutional clients and via wholesale channels in the respective markets.

Pioneering Forays

In 2003, the group launched the first trend-tracking fund in co-operation with ARTS Asset Management. The pioneering move introduced the first quantitatively managed retail fund to the market. The CQ-ARTS trend-tracking funds are now a major fixture in the product landscape, included in many unit-linked life assurance products. It has, again, been recognised with awards for its performance.

Loans to Developing Countries

Vision Microfinance is a platform established by Impact Asset Management GmbH (previously CQUADRAT Asset Management GmbH) in 2006. It allows entrepreneurs without access to funding to take out small loans, giving them the opportunity to develop or establish their small businesses — sometimes to escape poverty.

To date, more than $2.05bn has been awarded to 309 microfinance institutions in 67 countries. This meaningful and sustainable aid helps families gain access to food, medical care, and education. Vision Microfinance was recognised by CGAP (Consultative Group to Assist the Poor) in 2010 for the transparency of its reporting. It has several times been awarded the LuxFlag label by the Luxembourg rating agency.

Leader in Green Investments

As a subsidiary of CQ Investment Group, Impact Asset Management is one of the leading non-bank asset-management companies in German-speaking territory, specialising in the selection, analysis, and management of absolute return and sustainable investments.

As far back as 2011 — years before the rest of the sector stumbled across this area — American non-profit ImpactAssets included Impact Asset Management GmbH in the top 50 impact investment firms. Not only are the products’ financial returns considered; their social and environmental impacts are decisive for selection.

Social Engagement: a Priority

The CQ Investment Group has been supporting social projects in various areas over the years. Many of these focus on young people from disadvantaged backgrounds, orphans, or children with disabilities.

The group finances projects worldwide to promote health, improve education, and combat poverty. When deciding which support, it places particular emphasis on economic understanding, making an important contribution to social co-existence.

CQ Investment Group: A Partner for Global Players

In conjunction with Talanx, the third-biggest German insurance group, the CQ Investment Group is operating a joint venture in Armenia to manage the state pension fund on behalf of the Armenian Central Bank. Co-operation with Raiffeisen Bank International AG has led to initiation of a private equity growth fund, which concentrates on SMEs in and around Austria. Pension funds and other institutional assets are being managed as part of a joint venture with the Vienna Insurance Group (VIG), based in Poland.

Over its 31-year history, the group has proved itself to be a strong and reliable partner for global players in 21 European countries.


World Economic Forum’s Meeting Agenda Takes a Tilt at ‘Dark Topics’, Ai-Da — and Mind Control...

‘It’s worse psychologically to feel that you are useless than to feel you are exploited’ — Yuval Noah Harari

In the mid-1800s, Charles Babbage, an English mathematician, mechanical engineer and inventor, devised a series of steam-powered “calculating machines” — now recognised as the world’s first computers.

He was assisted in his quest by fellow mathematician Ada Lovelace, the only legitimate child of the poet Lord Byron. In 2019, Lovelace’s part in sowing the seeds of a revolutionary technology was finally recognised when a robot was named after her: Ai-Da.

In October 2022, Ai-Da became the world’s first robotic artist, and was submitted to be “questioned” by a House of Lords inquiry into the future of AI-created art. While giving evidence, the robot had to be rebooted — but not before she warned the assembled peers that artificial intelligence was a threat to human artists.

A year earlier, Ai-Da — looking and sounding a bit like Lady Penelope from the 1960s televised puppet show Thunderbirds — delivered a Tedx talk in Oxford. She told her audience: “New technologies bring good, bad and banal, but since they are created, used, and wielded by humans, significant care needs to be taken. I like the works of the cautionary thinkers in the 20th Century — George Orwell and Aldous Huxley — who knew truth was illusive. Power could be manipulated, and human action and inertia/inaction (have) consequences.”

Ai-Da went on to say that the potential harms of new technologies in human hands should be addressed. “Technological control of minds should concern us in situations where power can be abused,” she said. “The manipulation of consciousness is to be taken seriously. These are dark topics. We need to engage with these issues and ask questions of the direction new technologies are being taken.”

These “dark topics” will be central to many of the conversations due to take place at the World Economic Forum (WEF) in Davos, Switzerland, in January.

A perfect storm of coinciding events has plunged the global economy into turmoil, and the annual alpine get-together of world leaders, political thinkers, financiers and theorists will find itself at a challenging crossroad.

While the WEF’s mission statement is to improve the world, critics regard the organisation as a gathering of elites intent on maintaining an outdated capitalist status quo for their own benefit. It focuses on obstacles to growth, and one thing is agreed: tech is leading us into the future — to recovery or ruin.

The growing disillusion with globalisation has been a recurring theme at WEF gatherings in recent years. A social backlash has been worsened by the lingering effects of the pandemic, the war in Ukraine, energy crises, inflation, and the cost-of-living squeeze.

Technology has created a digital world empire which has brought wealth to some, but left many more confused and feeling abandoned. With rising prices, falling incomes and increasing threats to security, many warn that the risk of widespread social unrest has never been greater

Ahead of the 2023 WEF meeting, managing director Saddia Zahidi reported gloomy results from the most recent survey of 50 of the world’s leading economists. “Vulnerability has increased for large parts of the global population, both in developed and developing economies,” she said. Ninety percent of respondents expected real wages to fall. Millions would be affected by the cost-of-living crisis, and for some, it would be unmanageable, she added.

The trend towards deglobalisation was likely to continue, she believes. “It is going to be one of those profound mega-trends for some time to come,” she said. While she saw were no silver bullets, there were some silver linings: “The shift towards reskilling to better prepare the labour market for the future of work has to be pushed through by governments.”

This was a theme touched upon in August 2022 by Israeli historian and writer Yuval Noah Harari, the author of Sapiens: A Brief History of Humankind, and a top advisor to the WEF. In a recent interview, he said the advance of AI meant the world “no longer needed the vast majority of its population”.

Those soon to be replaced by robots and tech were beginning to question their personal value, Harari said. This, he said, was at the root of the backlash against the liberal order. The central place in society held by “common people” was being challenged, and individuals were being deprived of traditional roles.

“Part of what might be going on is that people realise ‘the future doesn’t need me. Maybe some crumbs will come my way, like universal basic income’. But it’s much worse psychologically to feel that you are useless than to feel you are exploited.
“In the early 21st Century, we just don’t need the vast majority of the population because the future is about developing more and more sophisticated technology.”

Nevertheless, the advance of AI and hi-tech came with potential solutions attached, Harari believes. AI will open opportunities, creating more interesting roles which require high levels of skill and education. “A lot of the jobs which are being displaced are actually kind of boring,” he notes, “and don’t really tap into the core of what the human is.” A new role for humans could be making communities better places to live — a “soft skill” where humans can still outperform machines.

WEF economists are cautiously optimistic that the global economy can be reset to emerge stronger, more environmentally aware, and more equitable and sustainable. But the economic tumult of the past two years has taken a toll.

According to a survey by California-based digital intelligence firm Constella, nearly half of companies surveyed reported increased security threats and incidents related to social, economic and geopolitical unrest in 2021.

These incidents included physical threats against workers and business premises, often by disgruntled former employees and customers, or activists. There were even reports of shootings, and travel risks to executives. By far the greatest risk, the survey reported, was the threat of cyber-attack on vulnerable company computer systems.

The internet — which has enabled the development of globalisation — is being exploited by those opposed to global capitalism. Businesses are urged to invest in proactive scrutiny of the dark web to identify threats.

Charles Babbage and Ada Lovelace could never have imagined where their steam-driven analytical engines would lead. It is said that Ada’s mother, fearful that her daughter would inherit Lord Byron’s “hot blood”, pushed her towards mathematics to supress any mad, bad or dangerous tendencies.

Her robotic quasi-namesake, Ai-Da, is both level-headed and, allegedly, fond of poetry. Perhaps those attending the WEF meeting in January — seeking solutions to the crises of an increasingly hot-blooded world — will recognise that now is the time for calm, clear, logical and rational thought.

By Tony Lennox


Nordea Finance Facilitating the Sustainable Transition

Nordea Finance prides itself on being the preferred financial partner in the Nordics — and that’s something the company has worked hard to achieve.

[caption id="attachment_24652" align="aligncenter" width="900"] Nordea Finance CEO: Peter Hupfeld[/caption]

Nordea is the leading SME bank and business partner in the region, and a company with sustainability and ESG at its core. Chief Executive in Nordea Finance Peter Hupfeld recognised early on that it was vital to close the gap between good intentions and implementation.

“It’s a matter of choosing the kind of role you want to play as a finance company,” he says. “We see it as a long-term investment in society and our own business. Nordea Finance has chosen to be a proactive player in the sustainable transformation by making it easier for our partners and customers to make sustainable choices.”

The Nordics is a very mature market when it comes to sustainability, with a well-deserved reputation as a global frontrunner. “We have a long history and a strong political attitude towards sustainability and social responsibility,” says Hupfeld.

“We have a long history and a strong political attitude towards sustainability and social responsibility,” says Hupfeld.

The result is one of high regulation — taxing unsuitable behaviour and subsidising desired attitudes and applications. “We for sure face a more regulated environment in the future and we start to see high demands on sustainability in most public tenders in the Nordics,” the chief executive points out. This spills into the private sector as well. Nordea internal research shows that about half of SMEs require external ESG support in order to succeed with their sustainability ambitions.

“This creates an environment that makes the sustainable choice easier to make. And Nordea Finance partners and customers are fully on-board with that.”

Nordea Finance on Sustainable Financing

“During the last 3-5 years, we’ve built up strong competence and capacity in sustainable financing and we’re well positioned to play a leading role in supporting our customers in the transition to become more sustainable and eventually reach net zero.”

Clear targets and decisive action are required to meet the ambitious climate objectives. By channelling capital towards sustainable solutions and industries, the positive impact can be achieved.

“In general, we see a strong demand for investment in new green technologies,” Hupfeld says.

Nordea Finance has the commitment, capability, balance sheet capacity, and depth and breadth of partner relationships to make it a winner in a field of fierce competition.

“In Nordea Finance, we have feasible and well-thought-out plans to reduce emissions in climate-vulnerable sectors, based on sector-specific emissions data. Sector-specific pathways are being prepared and we want to engage to support customers in establishing credible green transition path.”

A Digital Leader is a Sustainable Leader

Digital solutions are helping to improve access and reduce cost. Paperless financing is a sustainable choice, Hupfeld believes. “In general, investing in digital customer interactions and omnichannel customer experiences is key in making financing easy and more sustainable for our partners and customers.”

“Our SME customers expect efficient services and across business banking in Nordea, we have seen a steep growth in digital engagement: the vast majority of meetings with small enterprises are held remotely, and for the same group, we have seen a 75 percent increase in digital usage (self-service, digital signing, etc.).”

Nordea Finance’s plans for business banking in the years ahead seem solid; it is well-positioned to deliver on its growth plan and has built deep and lasting relationships as an industry advisor.

Hupfeld sees this as a great opportunity. “This is a transitional time,” he says. “Sustainability plans and targets for 2030 or even 2050 may seem far away but if you don’t build the foundation now, you’re not going to make it. We know where we stand and we aim to accelerate our positive impact.”


MauBank CEO is a Lifelong Learner — with No Fear of Tough Lessons

Mauritius-based financial institution MauBank is celebrating victory in two CFI awards:

Best Digital Transformation in Banking, Mauritius

Best Growth Strategy, Mauritius

Chief executive PREMCHAND MUNGAR takes pleasure in the challenges, as well as the rewards...

[caption id="attachment_24667" align="alignright" width="400"] CEO: Premchand Mungar[/caption]

The generally unsettled economic and political situations unfolding worldwide are causing upheavals at all levels — but MauBank CEO Premchand Mungar has maintained his sang froid amidst the chaos.

And he has also found reasons to be grateful for the challenges that have presented themselves.

“The recent crises have revealed the real faces of volatility and uncertainty,” he says, “and the impact they can have on businesses, including banks. Despite the challenges these conditions presented, they also packed some good — some would say hard — lessons for us.

“One of those lessons is how quickly things can change, regardless of how well they were going previously. We learned the hard way that businesses need to be kept agile and flexible, in terms of workforce, operations, and strategy.”

Mungar is a banker with 40 years of experience and expertise across financial service sectors. As well as holding the chief executive role, he has been a director on the MauBank Board since 2018. He is also an Independent, non-executive board member of the Financial Services Commission (FSC) Mauritius, and the deputy chair of the Mauritius Bankers’ Association (MBA).

Mungar previously worked in Nairobi with the African Trade and Development Bank (TDB) Group, a Kenya-based multilateral financial institution and the financial arm of the Common Market for eastern and southern Africa.  In 2017, he stepped aside from his 16-year TDB career positions — general counsel and senior director — but continued as senior adviser to the group after his return to Mauritius.

Premchand Mungar has been played a senior role at the Corporate Governance Development Forum spearheaded by international finance institutions. He developed a framework to integrate governing principles into investment and business operations.

As a consultant, he was involved in overseeing institutional transformation, corporate strategy, and business initiatives for the various institutions.

Mungar holds a Master’s degree in Finance and Financial Law from SOAS, University of London, and an LLB from the University of Mauritius. He is a qualified attorney and has been a member of the Mauritius Law Society since 1995. He believes in ongoing education, and has attended executive education courses — including the 16th Summer School on International Financial Law organised by EuroMoney in collaboration with the University of Oxford at St Catherine’s College.

Premchand Mungar was sponsored by the Japan Bank for International Co-operation to attend the 10th Autumn Course on International Finance held jointly with Waseda University in Tokyo. He has been recognised with several commendations, including the 2016 President’s Excellence Award granted in recognition of his outstanding contributions to the affairs of the TDB Group.


Wing Bank CEO Invests in his Staff — ‘Better People = Better Organisations’

A healthy blend of leadership styles has brought personal and organisational benefits.

[caption id="attachment_24676" align="aligncenter" width="900"] CEO: Han Peng Kwang[/caption]

The CEO of Cambodia’s Wing Bank Han Peng Kwang, is still inspired by his career, and by the banking industry as a whole.

“The need to learn and adapt continuously is exciting to me,” he says. “Banking is a business that is constantly evolving, and that requires me to continue to learn and adapt to remain competitive and relevant.”

Banking has changed, Han Peng Kwang observes, from the traditional branch banking — which he terms Bank 1.0 — to branchless, digital banking — Bank 4.0. “There is also an emerging trend of decentralised finance that offers higher levels of security, faster transactions, and lower fees.”

He describes his leadership style as a mixture of “servant leadership” and “democratic leadership”. The former is a preference for power-sharing models of authority, prioritising the needs of the team and encouraging collective decision-making. The latter includes team members in the process by asking for their input before a decision is made.

Han Peng Kwang also incorporates “transformational leadership” in his leadership style: seeking to change the people he leads by inspiring them to innovate. “I always stress the importance of integrity to be successful in life,” he says.

Wing Bank, as an organisation, believes in successor planning: C-suite executives are assisted by their deputies — who are being trained to succeed them.

Peng Kwang assumed the position of CEO at Wing Bank in June 2021. At the time, the entity was new as a commercial bank, but established and well known as a payment service-provider. “I had had the privilege to start a commercial bank from scratch in 2009,” he says, “which was both challenging and exciting.

“It was a very fulfilling personal achievement to successfully launch a commercial bank then. In 2021, I was approached by Wing Bank to be CEO, and help them to establish the commercial banking business.” Wing had just been awarded a commercial banking licence by the National Bank of Cambodia.

“The opportunity was like déjà vu to me — and it got me very excited. The difference is that I now have the opportunity to build a commercial banking business to complement an existing business. It was already very successful and established, and excels in providing mobile financial services within a large digital ecosystem.

“In this era of digital banking, where it’s crucial to utilise the power of AI and machine-learning technologies to offer better financial services to customers, I see the potential of Wing Bank becoming a leading homegrown digital bank with the capability to serve the full spectrum of Cambodia customers, especially under-served and under-banked citizens. “That’s what motivated me to assume the role of chief executive.”

Han Peng Kwang plans to leverage the economic uncertainties of the current age to strengthen employee loyalty, and improve lives. “Wing Bank is an equal-opportunity employer,” he notes, “and an employee-focused organisation. The HR policy at Wing focuses on the holistic development of every employee, and helps to merge their career and life paths.

“‘Wingers’ are proud of their brand, and appreciative of the unconventional HR approaches that help them with life-coaching and career development at the same time. It carves them out as better professionals, and better people.

“Our training programmes are focused in that way because we believe better people make better organisations.”


Why are US Conservatives Against Investment in ESG?

Republicans balking at ‘woke liberal agenda’ that they claim could erode profit margins and threaten livelihoods

US politicians are treating sustainability as an ideological debate rather than a science-backed call to action.

Ron DeSantis, governor of Florida and a possible Republican presidential candidate for 2024, has introduced restrictions to prohibit state-run fund managers from considering ESG factors in investment decisions for the Sunshine State.

“Corporations across America continue to inject an ideological agenda through our economy rather than through the ballot box,” he said. “Today’s actions reinforce that ESG considerations will not be tolerated here in Florida, and I look forward to extending these protections during this legislative session.”

January’s resolution is the latest development in the governor’s crusade against what he sees as a “woke liberal agenda” threatening American consumers and livelihoods. The legislation, he claims, is meant to put people before corporate power; he has released documentation to challenging the “woke corporatist definition” of ESG.

According to the conservative translation: “ESG investors are corporate cartel elites who do not represent the will of the people, but rather base their investment strategies on social causes and virtue signalling while driving up costs for consumers in the name of diversity and side-lining hardworking Americans by threatening their livelihoods.”

The move by DeSantis expands on a resolution approved by trustees of the State Board of Administration (SBA) in August 2022, directing Florida’s fund managers to invest state funds to prioritise the highest return on investment. Investment decisions must be based only on pecuniary factors, without consideration of social, political, or ideological interests.

“Corporate power has increasingly been utilised to impose an ideological agenda on the American people through the perversion of financial investment priorities under the euphemistic banners of environmental, social and corporate governance and diversity, inclusion and equity,” DeSantis said. “With the resolution we passed today, the tax dollars and proxy votes of the people of Florida will no longer be commandeered by Wall Street financial firms and used to implement policies through the boardroom that Floridians reject at the ballot box.

“We are reasserting the authority of Republican governance over corporate dominance, and we are prioritising the financial security of the people of Florida over whimsical notions of a utopian tomorrow.”

This follows action taken in December to revoke all proxy voting authority for outside fund-managers. The anti-ESG legislation is supported by the state’s CFO Jimmy Patronis and attorney general Ashley Moody.

“As a fiduciary of the state of Florida, I and my fellow trustees have an obligation to make responsible investment decisions on behalf of the beneficiaries we represent,” Moody said, “not cater to woke corporate executives trying to force political ideology.

“Through this action ... we will continue to fight back against ESG agendas that put partisan ideology ahead of financial returns for Florida’s retirees.”

Patronis said that the Florida Cabinet has reaffirmed that it doesn’t want “a single penny of our dollars going to woke funds” and called for asset managers to be “laser-focused on returns” and nothing more.

“Florida’s not going to subsidise the actions of a bunch of leftist ideologues who hate America,” he said. “We’re not going to let a bunch of rich people in Manhattan or Europe try to circumvent our democracy.”

In December 2022, Patronis announced the state’s treasury division would be divesting from BlackRock, the world's largest asset manager, because it had “openly stated they’ve got other goals” than producing returns. “There’s no lack of companies who will invest on our behalf,” he added, “so the Florida treasury will be taking its business elsewhere.”

Florida’s divestment — $1.4bn in long-term securities and $600m in short-term funds — represents a fraction of the assets managed by BlackRock, which reported $8.6tn in AUM at the end of 2022. Other Republican states had already pulled more than $1bn from BlackRock as of October 2022.

BlackRock chairman and CEO Larry Fink hit back: “Stakeholder capitalism is not about politics. It is not a social or ideological agenda. It is not ‘woke’. It is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper. This is the power of capitalism.”

Fink stands behind his assertation that climate risk equates to investment risk. “The majority of our clients are investing to finance retirement,” Fink wrote in his 2022 letter to CEOs. “Their time horizons can span decades. Sustainable investments have now reached $4tn. Actions and ambitions towards decarbonisation have also increased. This is just the beginning — the tectonic shift towards sustainable investing is still accelerating.

“Every company and every industry will be transformed by the transition to a net-zero world. The next 1,000 unicorns won’t be search engines or social media companies, they’ll be sustainable, scalable innovators — start-ups that help the world decarbonise and make the energy transition affordable for all consumers.

“Bold incumbents can, and must, do it too. Indeed, many have an advantage in capital, market knowledge, and technical expertise on the global scale required for the disruption ahead.

“Our question to these companies is: What are you doing to disrupt your business? How are you preparing for, and participating in, the net-zero transition? (W)ill you go the way of the dodo, or will you be a phoenix?”

Across the US, Republican politicians are attempting to remove sustainability concerns from the investment process.

This January, republican attorneys-general accused Institutional Shareholder Services (ISS) and Glass Lewis — which controls about 97 percent of the US market share for voting advice — of potentially violating their legal and contractual duties by tying recommendations to climate and social goals.

“ISS and Glass Lewis must comply with federal law that applies to proxy advisors,” warned the letter, which was signed by 21 Republican attorneys-general. “It has come to our attention that you have made several commitments that may interfere with your ability to honour your legal obligations.

“It appears that both have acted contrary to the financial interests of their clients and have promoted and relied upon false or misleading statements — and in so doing, have engaged in fraudulent and misleading practices.

“Your actions may threaten the economic value of our states’ and citizens’ investments and pensions — interests that may not be subordinated to your social and environmental belief, or those of your other clients.”

The letter demands written assurance that the firms will “cease such violations and commit to following the law”.

ISS responded with a statement that the letter “reveals a fundamental misunderstanding of market forces at work”. It claimed its “sole agenda is to provide its clients with tools and policy options to enable them to make informed investment decisions and vote their shares in accordance with their distinct views and fiduciary responsibilities”.

ISS said it took its legal obligations seriously, and would respond to questions laid out in the letter. “(We) look forward to continuing to serve our investor clients with the diversity of independent and objective research offerings they demand.”

Glass Lewis declined to comment, other than to say it would soon be issuing a response.


Citigroup CEO Jane Fraser

[caption id="attachment_24686" align="alignright" width="500"] Jane Fraser, Citigroup CEO Photo: Citigroup[/caption]

Jane Fraser, the CEO of Citigroup, is no stranger to glass ceiling and glass cliffs. Fraser, the first woman tapped to head a major US bank, has proven that she has the grit and gumption to lead a business through difficult times.

The long-time banking exec was promoted to CEO in 2021 after years of leadership roles at Citigroup. She was hired to head the group’s investment and global banking unit in July 2004. She was promoted to the global head of Citigroup’s strategy, mergers and acquisitions division in 2007, a position which she held throughout the financial crisis caused by the collapse of the US housing market. During her four-year tenure as CEO of Citi Private Bank, she brought profitability back to a bank that had been running an annual deficit of around $250m. She took over CitiMortgage in 2013, the group’s US consumer and commercial banking in 2014 and Citigroup Latin America in 2015. Four years later, she was appointed president of Citigroup and headed its global consumer banking division, overseeing retail banking, wealth management, credit cards, mortgage, operations and technology in 19 markets.

As the glass cliff analogy suggests, each of those posts came with challenges. Fraser spearheaded recovery efforts during a market-wide drop in demand for mortgage refinancing in 2013, closing several offices and laying off over 1,000 employees. In 2014, she dealt with the fallout of Citigroup’s $7bn settlement in a federal investigation involving the quality of mortgage-related financial products prior to the 2008 housing crisis. She took over the Latin American division after Citigroup’s Banamex was fined $2.2m on fraud charges. She was named president the month before the Bank of England fined the group £43.9 for failing to provide accurate regulatory returns for its British operations between 2014 and 2018.

Citigroup’s former CEO, Michael Corbat, said that Fraser had helped in many ways to shape the company. Looking back on her career, Fraser said each promotion required something like a “leap of faith” as she assumed crisis control for thorny assignments.

“The most I’ve ever learned was probably in [the role at CitiMortgage] because it was a crisis and because I didn’t know anything. I didn’t know the business at all and so the leadership skills that you learn, you have to hire people who are better than you, who are more knowledgeable than you, you have to get the team to work together, and I think it taught me modern leadership skills,” she said.

Despite her humble attitude, Fraser was more than prepared for leadership. The Scottish native graduated from Cambridge’s Girton College with an economics degree. She worked in London as a Goldman Sachs analyst and in Madrid as a securities broker, before going on to earn an MBA from Harvard Business School. She spent a decade at McKinsey & Company, rising through the ranks from financial services and global strategy to partner. She maintained her career while starting a family, working part-time while raising her young children. She travelled the world and co-authored a book with three other McKinsey employees — Race for the World: Strategies to Build a Great Global Firm. She caught the eye of Citigroup execs while promoting for the book and was encouraged to join the team.

“Today [leadership] is about how do you inspire communities of innovators. You have to shape the context for them and then let them get to work and do their amazing things. In the old days, it was about telling a group of followers who would then execute,” she said.

During her Citigroup tenure, Fraser has led efforts to pare down the group’s sprawling operations, bringing it back to the basics. “For us, we went back to just being a bank,” she said. “We exited most of the businesses that had been merged together when Citibank and Travelers merged.”

She identified two tangible metrics for reframing the bank’s future: excellence and empathy.

“For me, it was informed not only by what needed to change, but also what was already strong in the bank,” she explained. “I believe that empathy is about delivering excellence. It is about competitiveness. It is about edge. I’m not sure that was a mindset that existed in the world a number of years ago. I think more and more leaders today are recognizing that that’s the case.”

Jane Fraser is embracing empathy in the way the bank deals with its workforce. As the pandemic blurred lines between home and work, she found the “relentlessness of the pandemic workday” to be unsustainable and taking a toll on employee well-being. So, she began to introduce to “reset” measures to ensure a healthier work-life balance. She implemented “Zoom-free Fridays”, instructed staff to schedule calls only during work hours and encouraged employees to take advantage of accrued vacation days. She championed the hybrid work schedules that rival banks chose to villainise. Most Citigroup roles allow employees to work from home two days a week.

“When our work regularly spills over into nights, very early mornings and weekends, it can prevent us from recharging fully, and that isn’t good for you nor, ultimately, for Citi,” Fraser wrote. “Nothing should stop us from building a bank that wins, a bank that champions excellence and a bank with a soul.”

The flexible schedules are also a strategic bid for talent in an economy with increasingly tight labour supply. “We’re not seeing people coming back who had left the workforce in anything like the numbers we expected,” she said. “We’re going to have to keep listening to our people to get that balance right.”

Fraser extols the benefits of flex time while also insisting on the power of in-person collaboration, spontaneity and apprenticeship.

“There is a lot of value that you get from being together,” she asserted. “But for me, it’s also a sense of belonging. We all felt that it was lonely on your own. And the firms you work with, if you’re proud of them, if you’re proud of the job they’re doing, it inspires a sense of belonging and a higher purpose for what you’re doing every day rather than just going through the set of tasks. But that being said, that doesn’t mean to say you’ve got to be there all the time.”

But, Fraser stressed, empathy doesn’t excuse a lack of productivity. The bank carefully measures productivity and will bring slackers back into the office to provide coaching and mentoring until their work passes muster.

The bank’s new investment banking hub, located in the seaside city of Malaga along Spain's Costa del Sol, exemplifies its commitment to a better work-life balance. Hundreds of aspiring beachside bankers applied for junior level positions that only pay half of the $100,000 starting salary offered in New York or London, but also promise eight-hour days with no weekend work. In contrast, investment bankers in London will typically work up to 70 hours a week in quiet periods or 100 hours weekly during busier times. The laid-back lifestyle and comparatively low cost of living in Malaga have proven solid selling points for prospective applicants.

The bank has nearly filled its intention of hiring 30 new junior bankers for the Malaga hub. It’s a young and multicultural group, mostly aged 22 to 26, representing 22 countries and 15 languages.

A couple of months after its Malaga hiring spree, Citigroup let go of dozens of other investment bankers within its dealmaking unit after expected revenue growth faltered.

“On the wealth side and investment banking, wallets — particularly in investment banking — are further behind [on expectations],” she said. “We’ve been repacing some of our investments there, as you’d expect.”

Jane Fraser is striving to increase diversity and to narrow the gender pay gap. The Citigroup CEO makes a third less than her male peers, with a compensation package of $22.5m, comprising a base salary of $1.3m, cash incentive of $6.4m and $14.8m in deferred incentives of stock and performance share units.

She praises the bank for its gender and diversity progress, while also acknowledging it has more work to do all fronts going forward.

“We look at recruiting, retention, development and promotion,” she said, “and manage the processes around it to try and make sure that we provide everyone with the opportunities that they deserve.

“You need to get comfortable with the uncomfortable. Transparency works and making those commitments public definitely helps as a forcing device that we all need so you don’t slip.”


Time to Talk Day - Supporting Staff with Mental Health this Winter

Time to Talk Day falls on Thursday 2nd February 2023 and is a charity led initiative that aims to break the social stigma of speaking about our own mental health – whether that is at home or in the office.

With a recent survey finding that three out of four UK employees who returned to the office post-pandemic now wish to work remotely to save money amid the cost-of-living crisis1, it’s critical that employers and line managers have the necessary tools, resources, and mental health policies in place in order to support their staff and help remove stigmas.

Adrian Matthews, Head of Employee Benefits MetLife UK says: “Against the backdrop of the ongoing cost-of-living crisis, job security concerns and the dark winter months, Time to Talk Day is a timely reminder for us all to check in on our colleagues. Employers can use this opportunity to reconnect with teams and reappraise what emotional wellbeing support they are providing.”

Adrian shares tips to help employers and line managers better support their staff’s mental health this year onwards:

Face to face touchpoints – Face to face events are increasingly important in a hybrid working environment and provide valuable touch points for both employees and employers. Open huddles, breakfast or lunch drop in events or social / volunteering events are all great ways to encourage a greater connection.

Understand the support available – Your group benefits package will provide a host of services to support employees (and their families) at their time of need, however big or small. From a virtual GP service helping to ensure an employee can see a GP, to dealing with the loss of a loved one – there are services to help. Contact your Group Risk provider to ensure you are maximising all the help that is available. Providers often enhance or add new services to their offering, so the new year is a good time to check in with them to ensure you are maximising the support available.

Communicate benefits clearly – Once you are clear on all the support available to your employees, create a simple calendar of activity for the year ahead to drip feed the information through. Leveraging digital signage used to be great when most were in the office all week. With the growth of hybrid working, ensure you have a mix of communication channels to disseminate your messages. Also, consider that in most instances, employees will need to access information outside of working hours, so an app or hard copies can be helpful as a point of reference.


Oracle CEO Safra Catz

[caption id="attachment_24691" align="alignright" width="500"] Safra Catz, Oracle CEO. Photo: Oracle[/caption]

Tech bros beware, there’s a new queen of the cloud.

Safra Catz, the head of operations and sales at Oracle, has put the tech world on notice after being announced as the Cloud Wars CEO of 2022 by the Acceleration Economy Network.

The business exec has an estimated net worth of $1.6bn and is frequently named among lists of the most influential business women in the world. She occupied the nineteenth ranking on Forbes’ 2022 lists of Power Women and America's Self-Made Women.

Catz, an Israeli immigrant, joined Oracle in 1999 after working over a decade in investment banking positions. She began her Oracle career as senior vice president and has served as a board director, president, CFO and co-CEO along with Mark Hurd, the former boss of Hewlett-Packard from 2005 to 2010. Catz and Hurd were selected to co-captain the company in 2014, when Oracle co-founder Larry Ellison stepped down to serve as executive chairman and CTO. Catz was in charge of operations, legal and finance, while Hurd oversaw sales, service and marketing. Catz became the sole CEO in 2019, when Hurd passed away from cancer, just five weeks after announcing a medical leave of absence for undisclosed reasons.

“After we lost Mark, all of a sudden, I was responsible for sales. Well, what do I know about that?” questioned Catz.

But the low-profile leader understands about being a customer — from the back office to the end-user. She has led the Oracle’s transition from selling products to partnering with clients to streamline and future-proof their businesses.

“The way we used to sell a product is that our geniuses in their ivory towers would build a product and throw it out to a customer,” Catz joked. “They’d lean out and say, ‘Give us a call if you need help, but we’re hoping you’re smart enough to know how to use it.’ And then the system integrator and the customer would implement the product — sometimes with some help from Oracle Consulting — and that was the relationship until our geniuses came out with something new and would throw it out the window again.”

But now she likens the business model to two occupants — Oracle and its customer — sharing one residence.

“We now have to basically move in with you. And live in the townhouse with you. And the customer’s on this side and Oracle’s on that side. They’re totally connected, because we basically get rid of the wall between our two enterprises: us and you.”

Oracle customers have commented that they can’t “tell where my people stop and your people start” — which Catz takes as the ultimate praise.

Catz has proven herself a formidable force in the tech world. She is credited with spearheading Oracle's aggressive acquisition strategy during her 24-year tenure, helping to close more than 130 acquisitions.

“When we do acquisitions, we decide what we want. We decide what fills a hole. And if the price is too high, our alternative is the $5bn we spend on R&D every year,” Catz told Bloomberg. “We’re not well-known for overpaying, because at Oracle we always have an alternative.”

She explained that each prospective deal is assessed from 50 different angles: “The market continues to change all the time, and we are always looking at everything in evaluating how it fits with our strategy.”

One of the Oracle’s latest acquisitions, health technology firm Cerner Corporation, has contributed to strong profit growth for the enterprise software giant. Oracle bought Cerner in a $27bn deal in June 2022. Post-acquisition, Catz reported that Cerner was performing beyond expectations.

Quarterly revenue jumped 18 percent year-over-year in the period ending November 30, or a nine percent increase if excluding Cerner. Catz explained that the bump in revenue exceeded “the high end of our guidance by more than $200 million”.

Oracle’s cloud revenue, including Cerner, was up by 48 percent, as compared to a 27 percent increase without the health tech acquisition.

Oracle is also targeting the financial service segment as a “very strategic” area that will become “key to Oracle’s future.” Catz outlined the company’s plans to lever existing bank relationships to develop B2B transactions with its cloud technologies stack.

“Our ambition here is to completely automate B2B commerce between buying and selling companies that are running Oracle Cloud ERP and manage all of the financing and insurance and logistics associated with that transaction,” Catz said. “We have very strong partners in finance, insurance and logistics, so we can completely automate the entire transaction, where B2B transactions begin to look like B2C transactions.”

Clients’ success is central to Oracle’s mission, and Safra Catz has found, particularly during the Covid pandemic, that digital connections are critical to that success.

“We have learned that being bold is the way to win and being timid will wipe you out,” she said. “We have built a platform that is secure, high-performing, sustainable and cost-efficient. On top of that, we’ve built horizontal applications that are focused on so many industries where digital technologies are critical for survival and success.”

According to the latest research, the global cloud market is expected to reach $600bn in 2023, up from $410.9bn in 2021. Oracle is ready to capitalise on that growth with 40 commercial and government cloud regions in 22 countries in five continents.

“Everyone will go to the cloud, the only question is who they will go with,” Catz forecast. “Every company has a different offer and every customer has different needs. Companies must move into the 21st century and everyone knows that.”


Securing Sustainable Water Supply Resources — Even in the Most Challenging Environments

Metito is delivering innovative water supply solutions across emerging markets with a clear commitment to the principles of circular economy and the UN sustainable development goals.

Impact, sustainability, innovation: with these founding principles, Metito has established itself as a global leader and provider of intelligent water-management solutions.

[caption id="attachment_24702" align="aligncenter" width="900"] Kigali Bulk Water Supply Plant. Kigali, Rwanda. Capacity: 40,000m3/day[/caption]

The privately held company operates across the water value chain: water treatment, desalination, wastewater treatment recycling and reuse, and advanced industrial solutions. Metito is the largest global supplier of desalination plants by capacity for 2021-22, and has pioneered the public-private partnership model in Saudi Arabia, Uzbekistan, the UAE, Egypt, Rwanda, Serbia and Qatar.

With an impressive portfolio of projects and concessions across key geographies, Metito has delivered tens of millions of cubic meters of treated water to municipal and industrial clients. The company has established itself as a key proponent of the circular economy, backed by 65 years of operational excellence. Powered by the dedication of more than 4,500 employees, it has gained invaluable experience in over 50 countries and acquired exceptional engineering capabilities, access to global resources and a synergistic shareholder structure.

Metito’s work is aligned with the UN Sustainable Development Goals (SDGs), specifically SDG 6 (Clean Water and Sanitation) and SDG 11 (Sustainable Cities and Communities). The company’s growth trajectory includes expanding operations in existing markets, opening new markets, securing job opportunities to local communities, and upskilling talent to deliver world-class projects and more industry firsts.

[caption id="attachment_24701" align="aligncenter" width="900"] Floating Desalination Barges. Kingdom of Saudi Arabia. Capacity: 3 x 50,000m3/day[/caption]

Metito has made an impressive impact in furthering access to water through enabling sustainable finance solutions to alleviate pressure on public budgets, and through integrating alternative energy solutions to optimise costs associated with operating mega scale desalination projects. Such unmatchable success is reflected in the company's body of work for 2022 and here we highlight a few of these acts of impact:

Securing Sustainable Finance

The development of truly “circular” water solutions requires sustainable financing. Metito secured the first sustainability-linked loan in the MENA region, a $120m facility by HSBC. This is the bank's first facility of its type in the region and the single largest group-level banking facility ever arranged for Metito Holding.

Pioneering Public Private Partnership (PPPs)

This business model has allowed the development of lifeline water projects through effective cooperation between the public and private sectors. Metito successfully pioneered this business model and developed/is developing the first PPP water/wastewater treatment projects in Qatar, Serbia, and Uzbekistan.

An Innovative Approach to Desalination

Metito designed, engineered, and built the world’s largest floating desalination barge (50,000 m3/d) to secure water supplies and enhance water security in Saudi Arabia. This is the first of three barges, with a combined capacity of 150,000 m3/d. It will be located four kilometres off the coast of Shuqaiq, and the end-user of this flagship project will be the Saline Water Conversion Corporation. The innovative solution allows governments to meet surging water demand in the face of pressing environmental challenges. Seasonal water requirements vary, and constantly change, in regions of rapid economic growth and through floating desalination barges, there is the flexibility of mobility which can secure additional water supplies anywhere along the coastline — with back-up supplies for contingencies and emergencies.

Optimised Energy Consumption for a More Eco-friendly Footprint and Reduced Emissions

Energy consumption for desalination was reduced from 4.5 per KW/m3 in 2015 to 2.7 in 2021 through innovative high-value engineering.

Turning Waste to Wealth and Embracing Circular Economy

Metito leads the consortium developing the world's largest agricultural drainage treatment, recycling and reuse plant, the New Delta plant - with a capacity of 7.5M m3/d.


JPMorgan Chase CEO Jamie Dimon warns of heightened economic risks

[caption id="attachment_24706" align="alignright" width="400"] Jamie Dimon, CEO. Photo: JPMorgan Chase[/caption]

Businesses and households should batten down the hatches, according to one of banking’s most prominent executives.

In mid-2022, Jamie Dimon, CEO of JPMorgan Chase, worried that a financial “hurricane” could be on the horizon.

“Right now, it’s kind of sunny, things are doing fine, everyone thinks the Fed can handle this,” Dimon said. “That hurricane is right out there, down the road, coming our way.” It could turn out to be a “a minor one or Superstorm Sandy” event.

“These are very, very serious things which I think are likely to push the US and the world — I mean, Europe is already in recession — and they’re likely to put the US in some kind of recession six to nine months from now,” Dimon said in October 2022. “It can go from very mild to quite hard and a lot will be reliant on what happens with this war. So, I think to guess is hard: be prepared.”

At the start of the year, Dimon expressed a more optimistic — albeit still cautious — outlook in an interview with Fox Business.

He spoke of heightened risks due to conflict between Russia and Ukraine, the energy crisis, food shortages, inflation and central banks’ overcorrection with quantitative tightening. These factors, along with the Fed’s rate hikes, are “having a huge effect on smaller countries, poor nations, those who are reliant on importing oil and gas”.

Dimon believes these uncertainties “may very well mitigate”, resulting in a “kind of Goldilocks mild recession”. But it could just as easily swing the other way and cause dire economic consequences.

Dimon has experience weathering strong economic headwinds. He became the JPMorgan Chase CEO in 2006, just before the fallout of the 2008 global financial crisis. When he took the helm, JPMorgan was the third-largest bank in the US. After accepting state aid and snapping up weaker firms, Dimon led JPMorgan to become the number-one bank in the nation. He’s celebrated as the “only survivor of the generation of managers who headed the big Wall Street banks when the financial crisis hit”.

So, if Dimon says to brace for economic turmoil, it would be wise to prepare for the worst — just as JPMorgan Chase has begun to do.

“With all this capital uncertainty, we’re going to have to take actions,” Dimon said. “I kind of want to shed nonoperating deposits again, which we can do in size, to protect ourselves so we can serve clients in bad times. That’s the environment we’re dealing with.”

The bank will be taking a conservative approach to its balance sheet, and Dimon said investors should do the same. But that hasn’t prevented the bank from bringing on fresh talent.

“So far we’re still in the hiring mode,” Dimon said. “We have a lot of growth plans. You know, I tend not to stop growing because you have a recession. Even in a recession, we’re opening in new countries. And we think those things are very good for shareholders over the long run.”

Jamie Dimon, who is of Greek descent, shed light on the innovation hub that JPMorgan decided to establish in his ancestral home. He calls Greece a “rational government that makes rational decisions”, but insisted his lineage didn’t factor into the decision to invest there.

The bank has had offices in Greece since 1968, but the innovation hub will be main arm of the bank’s development of digital assets, focusing on cryptography, distributed ledger technology, artificial intelligence and machine learning related to payment systems. Greece was an easy choice for the bank’s expansion plans, citing a ready talent pool specialised in the fintech sector and data sciences. The Athens-based hub expects to employ around 50 people and is still shopping for suitable real estate.

The bank has also signed a deal to acquire a 48.5 percent stake in the Greek start-up Viva Wallet for more than $800m. The payments fintech operates provides card acceptance services through its POS application, add-on Google play devices and advanced payment systems in online stores. Viva Wallet became Greece’s first unicorn start-up, with the latest valuation estimated between €1.7bn and €2bn.

“Viva has done an amazing job in 23 countries. They have managed to serve stores or groups in different countries with different systems. While we are doing a good job, they have created systems that we still don’t have,” said the JPMorgan Chase CEO.

While JPMorgan continues to shore up digital assets, Dimon still expresses caution and scepticism for cryptocurrencies proliferating the market these days.

“I think sceptical is too soft a definition. I would never invest in crypto,” Dimon stated in an interview with El Pais. “In this matter, it is necessary to separate the technology, the blockchain, from cryptocurrencies as a pure investment asset. We are one of the largest users of blockchain in the world because it allows us to process millions of data in real time. However, I have never understood the value of cryptocurrencies as investment assets. They have become fashionable, but deep down I think they hide a system that could be very similar to Ponzi schemes.

“That does not mean that I do not defend the right of people to invest in them,” he added. “I also don’t think people should smoke, but I defend their right to do so.”

In a CNBC interview in December 2022, he call the crypto market a “complete sideshow” and likened crypto tokens to collecting “pet rocks”.

He challenged the American public to consider what crypto is being used to buy and sell — billons in ransomware pay-outs, millions in exchange costs, and plenty of money laundering, terrorism financing, tax avoidance and sex trafficking. Dimon wonders how governments could have allowed this happen in the first place and what they’ll do to prevent it in the future.

The media has helped to boost the hype and hysteria surrounding cryptocurrencies, and many ordinary citizens have fallen prey to what the JPMorgan Chase CEO says is little more than “a decentralised Ponzi scheme”. Take the recent collapse of cryptocurrency exchange FTX, where its founder Sam Bankman-Fried allegedly fleeced investors out of billions.

Jamie Dimon says that the government is responsible for protecting investors, but they’ve dropped the ball. There was a lot of “smart money” tied up in FTX, but there were also lots of little people hurt in the fallout.


Banque Saudi Fransi: Unswerving Focus on Customers, and Creating a Fresh Response to Financial Needs of the Individual

Being customer-centric has become the norm for businesses and financial institutions in a world increasingly aware of the importance of how a company is run, and what it stands for.

[caption id="attachment_24726" align="aligncenter" width="900"] Head of Personal Banking Group: Mohammed Alsheikh[/caption]

As well as satisfying their immediate needs and desires, consumers and customers have been made aware of the importance of their personal and financial choices. ESG (environmental, social, and governance) and CSR (corporate social responsibility) are of primary importance. So are ethical and religious considerations.

Here, the Saudi Arabian joint stock company Banque Saudi Fransi (BSF), established in 1977, stands strong. "The challenge,” says BSF’s Head of Personal Banking Group Mohammed Alsheikh, “is to set realistic customer expectations — and then exceed them.”

BSF offers a comprehensive range of financial services for corporate and retail banking. Attention has been paid to all requirements, including the demand for Islamic banking in accordance with the Islamic Shari’ah principles. BSF also provides investment banking, asset management and investment funds.

Brokerage services are also undertaken, this time via the BSF subsidiary, Saudi Fransi Capital. A good deal of thought has gone into the complete nature of the financial services on offer. To quote Mohammed Alsheikh once more: “Building an impressive customer experience does not happen by accident, it happens by design.”

Alsheikh believes that focusing on the customer is not simply a matter of doing what is expected of any financial institution. Innovation — a long-held and widely practised value at BSF — and a firm focus on creating a client-focused workforce has allowed the bank to solidly position itself on the “winning side of competitive advantage”.

If customer experience is the new battleground for businesses in general, it has become the defining characteristic of an agile and competent one in the digital world. “Customer experience, or CX, is vital to a successful relationship.”

By combining technology and innovation to meet the ever-increasing demands and requirements of a fast-paced nation, that customer experience has taken the stage front and centre at Banque Saudi Fransi. The knock-on effects and benefits have led to sustainable innovation in products, services, and business practices.

An abundance of clients and customers — in a world approaching eight billion people — has meant to some enterprises that there is no need to focus on individual satisfaction. The sheer weight of numbers will pull us through, goes the (outdated) thinking.

Wrong, says Banque Saudi Fransi. It’s not about customer turnover, it’s about customer satisfaction — at all levels.

Retaining talent has become another focus in 2022, as employers struggle to show proper respect for their staff. Again, BSF is ahead of the game. It not only retains its staff, it forges lasting relationships with its clients and customers — boosting revenue all the while. “It costs more to obtain a new customer than it does to retain an existing one,” notes Alsheikh.

Customer advocacy is, and always will be, the highest priority for BSF. “We see it as not just serving our customers better,” he adds, “but providing such great service that they are willing to become advocates for BSF products and services.”

With awards and recognition flooding in... job done!


Stepping-up ESG Impact via Scoring and Analytics

CFI.co invited Lindsey McMurray, managing partner and co-founder of Pollen Street Capital, to outline her company’s mission and motivation...

At Pollen Street, ESG is core to our strategy, purpose, and culture.

We drive positive change through our investments, whether by funding green alternatives for homes and transport, accelerating financial inclusion, or driving regional economic growth by investing in businesses that help to reduce social and regional disparities.

At the same time, we want to promote and advance sustainable growth throughout our ecosystem. This means embedding and improving ESG performance, and making sure we and our underlying investments in private equity and credit are prepared to keep abreast of the rapid changes in regulatory requirements and disclosures. We do this through a consistent approach to ESG data-scoring and benchmarking which we’ve developed over the past few years.

"As a private capital manager, Pollen Street has access to meaningful private market data on current and prospective portfolio companies."

A concept of a “triple bottom line” has emerged in businesses around the world, based on the idea that firms should commit to measuring their social and environmental impact in addition to their financial performance. Our work to measure and improve our ESG performance helps us to ensure that the Pollen Street portfolio is continuously improving, and comprised of businesses with sustainable growth at their core.

For us this encompasses our drive for long-term, sustainable performance, and to help companies deliver impactful products and propositions. We aim to be progressive, and aligned with best practice for ESG reporting.

We’ve all heard about the advances and proliferation in data around the ESG agenda — but how does this really add any value and insights into how a business is embedding ESG?

As a private capital manager, Pollen Street has access to meaningful private market data on current and prospective portfolio companies. Those data relate to financial and sustainability performance — we don’t have to rely on what’s in the public domain. This enables us to develop an understanding of relative performance on key dimensions.

We treat our approach to ESG data and analytics with the same rigour that we approach any other strategic driver of our business, which means we are better equipped than ever to track and build on our positive impact.

[caption id="attachment_24730" align="alignright" width="300"] Managing Partner and Co-founder: Lindsey McMurray[/caption]

We collect over 50 data points for each portfolio company, on an annual basis. We’ve used internal talent and expertise to develop our proprietary scoring system based on ESG factors. The information and analytics are incorporated into our data warehouse, which we use as a track record — and single source of truth.

The scoring is based on internal indices and benchmarks, and informed by categories commonly used by ratings agencies such as MSCI, investor and industry standards (including ESG Data Convergence Initiative and SFDR). What is relevant for Pollen Street is the assessment of ESG sustainability and practice across our investments.

This means that we can easily track progress against our targets, create league tables for investments in private equity and credit, and set a base level for improvement. We use reporting dashboards to engage portfolio companies on action plans to improve their scores and overall ESG practice.

The same scoring system is used in the investment process, as part of our due diligence and to inform post investment action plans. We’re incorporating the scores into an ESG ratchet for credit investments.

We have been part of the inaugural year of the ESG Data Convergence Initiative. This is growing momentum to simplify the process of investor reporting by using standard definitions and templates, with access to benchmark-driven insights into how our portfolio companies compare to their peers.

ESG factors will shape the industry for years to come. As focus in this area grows, simple and consistent information is vital. Investors will increasingly look for transparency in reporting and the “so what” of impact as they embed ESG considerations into their strategies. As employees, consumers, and communities raise their voices in support of ESG initiatives, companies that lead on these issues will achieve clear differentiation — and create a more sustainable world.


In Conversation with Managing Partner of Worthwhile Capital Partners: Christian Andersson

[caption id="attachment_24733" align="alignright" width="300"] Managing Partner: Christian Andersson[/caption]

CFI.co: Would you please say a little about the career steps leading to your present appointment at Worthwhile Capital Partners?
CA: I have had the good luck to work with institutional investors for a couple of decades now and most of that time I spent with Goldman Sachs and Bank of America Merrill Lynch in London (where I was the Managing Director responsible for the Nordic pension- and life insurance market). It was a fascinating time, as we learned how to support the CIO’s decision-making processes, and advise on strategic asset allocation, balance sheet risk management and regulatory changes. This experience was very helpful when we set up Worthwhile Capital Partners in 2018. We wanted to bring our ambition, experience, and investment expertise into a fundraising business, which has traditionally been a sector with a different skillset.

In your view, what personal attributes contribute most to business and private life success?
In my career, I've learned that honesty and strong personal values are essential for building trust and maintaining positive relationships in both business and personal life. In the financial world, surviving one's reputation is crucial. This means standing up for your values, even in challenging or difficult situations. For a newly started company, this involves working hard to build and maintain a positive reputation, being transparent in your actions, and proactively addressing any challenges or negative feedback that may arise.

One key aspect of surviving your reputation is the ability to adapt to changing circumstances and environments. This is important not only for business success, but also for navigating the ups and downs of personal life. Maintaining a strong reputation and staying true to your values requires effort and dedication, but it will ultimately be worth it for the benefits it brings.

You refuse business because of poor sustainability impact. Does this attitude threaten or improve your bottom line?
Our business model has not been optimised to drive financial performance in the shorter run. We are contacted by 60 to 70 fund managers per year, which is astonishing since we only just got started, but 95 per cent of them do not reach our criteria and much of this relates to sustainability. Of course, we choose managers with strong pedigrees in managing risk and return, but the overall philosophy needs to be driven by sustainability and the manager must genuinely stand behind an ethos to create a better world. Our business is growing by 45 percent per year, and it could have been far greater than that, but we have chosen a clear strategy to support only a select group of fund managers who can help improve our planet, our societies, and our economies. That said, we take a long-term view with our focused fundraising strategy and remain convinced that once investor capital begins to accelerate commitments to sustainable investing, we stand to benefit against competition.

Where do you expect to see the strongest investment opportunities in 2023 and going forward?
Our team have spent a lot of time identifying and researching the key drivers for strategic asset allocation for the coming years, and we will focus our work on five secular trends. These are the large macroeconomic shifts, the demographic burden that will impact pension funds, the accelerating impact from climate change, the increased regulation, and growing geopolitical risks. From there, it is not difficult to conclude that our investors need to diversify their portfolios and invest more sustainably. Pension funds, for example, need to take the fiduciary responsibility to embed climate risks into their risk management, and invest long-term in assets that allows its policy holders to live and prosper in a healthy world once they are old enough to take out their pension. Nothing else makes sense. Policy and regulation can support this behavior, and it does. As for our work on fundraising, we will continue to support the energy transition, and we want to begin looking at investments supporting food security and water security. We are currently road showing our new Review Book to all our investors, which outlines these thematics and the investment opportunities that follow. We do a lot of work with investors between our work on fundraising.

What excites you most about the commercial world?
Dealing exclusively with sustainable alternative investments, we are particularly excited about the growing recognition of the importance of sustainability and the impact that businesses and investors can have on the world. At Worthwhile Capital Partners, we are dedicated to making a meaningful impact through our investments, and we are committed to working with our investors to create a more sustainable and equitable future. The commercial world is a dynamic and evolving landscape, and we are excited about the opportunities that lie ahead for our firm and our investors. By focusing on sustainable alternative investments, we believe we can generate strong returns and make a positive difference in the world.

What excites you most about your role at WCP?
As a Managing Partner at Worthwhile Capital Partners, I am passionate about driving business forward and working alongside my talented colleagues. I appreciate the independence of our firm, which allows us to maintain high standards and act with conviction when selecting our business partners. We take as much risk in choosing them as they do in appointing us for their fundraise. I also value the supportive culture at Worthwhile Capital Partners, which encourages collaboration and teamwork. These factors make my role at the firm fulfilling and rewarding, and I am excited about the potential for growth and success in the coming years.

How do you motivate your team? What is your preferred style of management?
My primary focus is on motivating my team and ensuring that they have the support and resources they need to succeed. I believe that the best way to motivate people is to provide clear goals and expectations, and to give them the autonomy and support they need to achieve those goals. Worthwhile Capital Partners is characterised by a positive and inclusive work environment, where team members feel valued and respected, and where their contributions are recognised and appreciated. In terms of my management style, I prefer to lead by example and to empower my team members to take ownership of their work. We also prioritise open communication and collaboration, and I make an effort to listen to and understand the perspectives and needs of my team members. Overall, my goal is to create a positive and productive work environment where everyone can thrive and achieve their best.


Obituary: Vale Pier Luigi Ferrari - The Man and his Legacy

By Alberto & Francesco Ferrari

The passing of our father, Pier Luigi Ferrari, President of First Marine Insurance, has been marked by condolences and messages from his friends and peers.

“He was a monumental person in the P&I (Protection and Indemnity) world and leaves a tremendous legacy behind in the maritime industry.” reads a typical testament. “We shall remember him with great admiration and as a significant leader and innovator.” adds another.

It’s hard for us to summarise our father’s career, but once we asked him what he considered his main driving values. We share his words with you: “Knowing how to listen, understanding owners’ needs, and creating the right services to satisfy those needs.”

He used to recount what he believed to be behind his main successes, at least at the beginning of his broker’s career.

“Everyone, especially ship-owners” he said “love telling their interesting experiences. Knowing how to listen with profound attention is certainly a key to understand their needs, and to forge our services around these needs”.

Back in the 1960s, the role of the owners’ broker, as we term it today, was not well known. At the time, the prevailing figure was the insurance agent, who was there only to safeguard the interests of the insurance company employing him, sometimes to the disadvantage of the client.

“A key to my success has been to act as owners’ broker and explain to the clients that our role is to protect their interests, without compromise”.

Our father forged strong and lasting relationships with his colleagues, and cared for their wellbeing. Another of his important values was trust.

“Mutual trust has been the key to create, together with colleagues, the right working environment, and the passion for our work,” he said. “The wellbeing of my colleagues has always been my priority, and a key to the success of my organisation”.

Our father, at the end of his career, found himself alone in embracing his original vision of sharing his affection, positiveness, and devotion to his family and his job.

This happened in his old company, after 50 years from founding it, and for this reason he left and started FIRST MARINE with his sons, a new reality, which we are now, more than ever, proud to keep growing.

Alberto and Francesco Ferrar

October 12, 2022


OECD: What Will It Take to Achieve UN’s Sustainable Development Goals?

Achieving the UN’s Sustainable Development Goals (SDGs) requires financial and non-financial investment to discover sustainable development pathways.

[caption id="attachment_24744" align="aligncenter" width="900"] Photo: © Andrew Wheeler[/caption]

One of the key elements is securing enough capital. Development finance providers are working to mobilise commercial finance. They are designing blended finance instruments and mechanisms, and supporting the issuance of debt instruments such as green, social, and sustainability linked (GSS) bonds.

The OECD DAC Blended Finance Principles guide the action of development finance providers and help to guarantee that efforts are rooted in robust, locally owned development objectives and priorities.

Mobilising finance alone is not enough. To achieve sustainable development results, development finance providers must measure and manage development impact of investments.

But how?

Investment decisions are still being taken with inadequate information about their social and environmental effects. Despite new taxonomies, reporting standards and impact principles, the market is increasingly confused. That means an increased risk of “impact washing”.

As a standards setter, the OECD is conscious of this. This is why, when we developed the United Nations Development Programme Impact Standards for Financing Sustainable Development, we decided not to go it alone, or in a silo. We opted to co-create them with the UNDP and some 300 experts from development finance institutions (DFIs), the private sector, and civil society organisations.

We knew that this was just the first step. To ensure development finance would achieve its full potential, we must work with other standard-setters and maximise coherence across our joint efforts.

"Investment decisions are still being taken with inadequate information about their social and environmental effects. Despite new taxonomies, reporting standards and impact principles, the market is increasingly confused."

What should this collaboration look like? Do we all need to agree on one set of standards? And if so, what should they cover? What do development finance practitioners ultimately need?

To try to answer these questions, on September 30, 2022, we gathered standards setters and practitioners at the OECD for an in-person conference titled Finance United: Impact Investors, Financial Service Providers and the SDGs. We co-organised the event with the Social Performance Taskforce (SPTF), and had the opportunity to hear from the UNDP SDG Impact Team, Social Value International (SVI) and the International Sustainability Standards Board (ISSB)) and practitioners (such as iDB Invest, the UN Joint SDG Fund, the US DFC, and the Global Steering Group on Impact Investing.

These groups focused on market needs, and how we can collectively deliver. We had donors, DFIs, financial service providers and CSOs around the table to discuss the alignment and implementation of standards.

Here are some of the key takeaways:

1. Address culture and mindset to bring about changes in practice. In the past 12-18 months, the conversation around impact reporting has accelerated, and there has been harmonisation and consolidation among standard setters regarding transparency and external reporting. This led to the establishment of European Financial Reporting Advisory Group (EFRAG). Despite this, the acceleration in reporting standard risks pushing “impact” to become an “add-on” unless it is coupled with changes at the organisational level. Development finance providers have to change the way they embed impact into their organisations, across all levels, to become impact-orientated and achieve real development results. Only then will impact become part of organisational culture.

2. Focus on decision-making, not metrics. Impact standards are designed to be a universal approach for how development finance providers, public and private make decisions. They focus on the internal decision-making process, the mindset shift needed to bring impact into the decision-making process.

Impact standards shift the focus from a mere metrics-led compliance to generating development results that are embedded, and therefore last. This mindset shift is what is needed to avoid SDG-washing, but also to re-orientate development finance providers from a risk-return logic to a risk-return-impact logic.

We need to develop a different starting point — “How can we create more impact? Are we creating enough positive impact?” — rather than “How much impact have we created?”

We need to collect data and build on that. It is a journey to build systems that are robust.

3. Unite in diversity. Standards setters cater to different audiences. Different groups of stakeholders use different words and ideas (such as human rights, capital, sustainable development) — yet we all use the word “impact” to describe our goal. We have to recognise this diversity of positions and accept that we will never have a single impact management standard that fits all actors.

We need to be clear about what we are referring to. Companies and investors see all these different initiatives and think there should be consolidation, but different sets of standards are focused on specific groups of actors, with management frameworks, metrics, and taxonomies for different constituencies. Our engagement with the UNDP grew out of the Impact Management Project (IMP). We saw there were gaps between various principles and frameworks, and these extended into the decision-making processes.

We decided to work on that particular gap, and develop standards for the SDGs that would bring the same language to different actors who have operated in different ways, and with different focuses. We have been mindful of each other’s work and have been increasingly converging in the various pieces of the puzzle.

While catering to different audiences, and using slightly different language, the impact management standards promoted by the OECD, UNDP, SPTF and SVI all promote the same values. They all focus on supporting organisations in embedding impact considerations into their strategy, management approach, governance, and transparency. They all push for more intentionality in impact.

4. The proof of the pudding is in the implementation. The September 30 event showed that, as standard setters, we are harmonised at a high-level, on the key messages. Although this is an excellent first step, we won’t stop here. We realise that there isn’t yet harmonisation on implementation. Organisations are not consistently implementing the standards. The standards will only make a difference if they ignite a real change in mindsets, based on intentionality and collective learning. This is why we have to move from Standard setting to implementation — and during the conference discussions in September, we focused on case studies to show how organisations are using and implementing the standards, the challenges they face, and what they have learned so far.

While harmonisation is important, it is also important to adapt to relevant contexts. Standards need to be tested and improved through the same consultative process that was used to develop them, through multiple iterations with a diverse range of stakeholders who act as a learning community. This helps us to challenge all development finance providers to do more and better, and to be ambitious on their development impact results.

5. Context matters. Not all development actors can implement standards in the same way. In developing countries, efforts must made to avoid the unintentional creation of more barriers. The standards aim to encourage investors to use ESG criteria not as a tool to exclude potential investee with low scores, but to support organisations to improve, and take them on a journey to become more ESG-savvy. Impact data which is important for development finance actors may not be available in developing countries, requiring that the data are created before investees are asked to collect and report.

The conference conclusions highlighted a number of gaps in ensuring impact in developing countries, and the need for guidance to support the OECD UNDP Impact Standards for Financing Sustainable Development.

The overarching message was that for SDG delivery, impact standards are vital in developing countries. Achieving this would help to reduce transaction costs, facilitate the aggregation of assets, and potentially mobilise greater volumes of capital.