Author: itsupport

Forging a sustainably driven transport sector

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The creation of Canadian Pacific Kansas City Limited (CPKC) in April 2023 reshaped the North American freight rail industry. With global headquarters in Calgary, Alberta, Canada, CPKC is the only single-line transcontinental railway linking Canada, the US, and Mexico, offering shippers unparalleled rail service and access to major North American ports and global markets. Stretching approximately 20,000 route miles, and employing around 20,000 railroaders, CPKC is a major transportation service provider, employer and neighbour to communities across the continent.

CPKC’s combination of two historic railroads – Canadian Pacific (CP) and Kansas City Southern (KCS) – has steadily built momentum, bringing new competition to supply chains and creating more value for our customers, while remaining steadfast on the integration of our operations, service and safety. This strategic union also created a unique opportunity to embed responsible business practices as we continue to build our business for the future. Since CPKC’s formation, our progress has been firmly rooted in early-stage integration measures encompassing governance, workforce, and systems integration. These strategic steps have supported us in upholding our commitment to safety, supporting seamless service delivery to our customers, and fostering sustainable operations.

In a year of significant change for our company, we ended 2023 with a strong performance. CPKC led the industry with the lowest Federal Railroad Administration-reportable train accident frequency among Class I railroads, building on CP’s legacy of 17 consecutive years leading the industry in this metric. We established a new climate goal for CPKC’s combined locomotive operations and continued to invest in industry-leading low-carbon technology. We deepened our connections with local communities through impactful community investment initiatives and meaningful partnerships. We also reconstituted our Diversity & Inclusion Council to lead our efforts in this area as we integrate CPKC.

These important measures clearly demonstrate to our employees, customers, suppliers and the communities where we operate our continued commitment to being a sustainability leader. As we move through our second year as CPKC, sustainability remains front and centre of our integration journey.

A sustainably driven culture
Combining two railroads operating in three countries and a diverse team of around 20,000 railroaders is a significant undertaking. People and culture are key drivers to CPKC’s success. A primary goal of our integration has been to foster a culture united in the pursuit of safety excellence, best-in-class service for our customers and responsible business practices.

Sustainability remains front and centre of our integration journey

Safety is foundational to everything we do, and maintaining stringent safety standards is crucial amid the complex changes taking place in our business. In 2023, we rolled out Home Safe, our flagship safety programme, across our Southern US and Mexico operating regions. Through Home Safe, we work to protect our railroaders, our communities, our customers and the environment. Upholding our Home Safe commitment daily, we enhance our safety culture through quarterly safety walkabouts and celebrating safety performance through our annual Safety Awards for Excellence. Safety walkabouts bring together management, Workplace Health & Safety Committee members, frontline railroaders and various regulators to proactively identify and address workplace hazards while promoting a safe working environment.

Throughout our network, many passionate railroaders embody our Home Safe commitment and actions. Every year, we recognise these individuals at the CPKC Safety Awards for Excellence, honouring their commitment to championing our Home Safe principles and looking out for the wellbeing of their colleagues every day. While we continually work to be safer today than we were yesterday, we also recognise that safety is a journey, not a destination. We will continue reinforcing a robust safety culture in pursuit of our goal of being North America’s safest freight railroad.

With employees in three countries, fostering a culture where all perspectives are heard and valued is essential to unlocking the full potential of CPKC’s workforce. We established a Diversity & Inclusion Council led by senior leaders to champion the development of our diversity and inclusion strategy as we integrate CPKC. The council held 15 virtual Diversity Dialogue engagement sessions to tap into the wealth of CPKC employee perspectives. Over 200 employees participated in these sessions, providing insight to help inform the evolution of CPKC’s strategy.

Expanding our operational reach brings added responsibility. As a neighbour to hundreds of communities across North America, CPKC is dedicated to operating safely and making a meaningful impact in the communities in which we live, work and operate. In 2023, we expanded our emergency response training and public safety awareness engagement with personnel, community first responders and other stakeholders in communities along our right of way. CPKC organised or participated in 82 community awareness and emergency training events, attended by more than 4,000 emergency responders. In support of local food banks, our annual 2023 Holiday Train programme reached communities across our network in Canada, the US and Mexico, raising CAD$1.8m and collecting over 160,000 lbs of food.

CPKC climate strategy
The transportation sector has a vital role to play in the transition to a lower-carbon economy. Our goal is to be a leader in this transition. Freight rail is the backbone of global trade, moving goods across vast distances with greater fuel efficiency than long-haul trucking. CPKC strives to reduce operational emissions and drive change within freight rail through innovation and collaboration with industry partners, customers, governments, and suppliers on climate solutions.

Freight rail is the backbone of global trade, moving goods across vast distances

One of CPKC’s early accomplishments was to release our commitment to climate action, which sets out our commitment to develop an emissions target aligned with a 1.5°C future. At the same time, we announced a GHG emissions reduction target, which was validated by the Science Based Targets Initiative, to reduce our well-to-wheel locomotive emissions by 36.9 percent per gross ton-mile by 2030 from a 2020 base year.

As we refine our climate strategy, we continue to implement initiatives to reduce operational emissions, including exploring and investing in industry-leading low carbon solutions. This includes developing North America’s first line-haul hydrogen-powered locomotive using fuel cells and batteries to power the locomotive’s electric traction motors. Since the programme’s inception in 2020, we have continued to meet key milestones in this pioneering endeavour. In 2023, we completed two hydrogen locomotive conversions and advanced production on a third, as well as the installation of hydrogen production and fueling facilities. Together with CSX, we announced a joint venture to build and deploy hydrogen locomotive conversion kits for diesel-electric locomotives at CSX’s locomotive shop in West Virginia.

In March 2024, we marked another important milestone with the one-year anniversary of our locomotive biofuel trial project. As part of this initiative, CPKC is collaborating with our industry peers and locomotive suppliers to test the long-term operational impacts of utilising diesel blended with 20 percent biodiesel renewable fuel within our locomotive fleet. In 2023, we completed more than 500 fuelling events and utilised more than 8.2 million litres of B20 fuel in our locomotive operations. For every litre of conventional diesel fuel that is replaced with B20, we reduce total emissions by 18 percent. This pilot project is a critical step in validating the operational impacts of utilising advanced blends of renewable biofuels in CPKC’s locomotive fleet.

In addition to our investments in low carbon initiatives, CPKC continues to upgrade our locomotive fleet and rail network to improve overall efficiency and provide system reliability through our capital expenditure programme. In 2023, we invested CAD$2,468m in capital expenditures to maintain and upgrade our locomotive fleet and network to improve overall efficiency and ensure system reliability.

These accomplishments reflect CPKC’s commitment to operating sustainably and a culture of continuous improvement. As we advance through our second year as CPKC, we are keeping sustainability front and centre in our integration journey. We remain committed to promoting positive change both within CPKC and beyond.

Please see our filings with securities regulators in Canada and the US for additional information and cautionary statements relating to our sustainability efforts, including factors that could affect the forward-looking information in this article.

Breaking down barriers and achieving ambitions

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“An entrepreneurial spirit led me to start my own ventures,” says Isavella Korelidou-Evripidou, Founder and Chief Executive of Global Financial Services Consultants (GFSC Global) – an award-winning consulting group offering services across the corporate, legal, regulatory, financial and banking fields.

“I founded and managed several businesses and thrived on identifying opportunities, with the aim of making a positive impact in the business world,” she says. Today GFSC Global operates in more than 70 countries, providing advice, planning support, structural management and licensing services to clients across the world.

“We work with a broad range of corporate and private clients, including multinational corporations, small and medium-sized enterprises (SMEs), start-ups, entrepreneurs, financial organisations, banks, crypto exchangers, investment funds and high-net-worth individuals,” she says. “We specialise in worldwide licensing, AML/compliance support, legal support and company formation, providing tailored solutions with over 20 years’ experience.”

Overcoming gender bias
For Korelidou-Evripidou, founding and running the business has come with an abundance of rewards – but it hasn’t been without its challenges, especially when it comes to gender equity. “Breaking into leadership positions as a woman often requires overcoming biases and stereotypes that may exist within organisations,” she explains.

Female founders and CEOs have a chance to drive meaningful change within their organisations

She believes the under-representation of women in senior leadership roles can in turn make it harder for female founders and CEOs to find mentors, sponsors or role models who have navigated similar paths. “The other issue is around work/life balance,” she says. “Juggling demanding leadership roles with personal commitments and family responsibilities can be particularly challenging.” But for Korelidou-Evripidou, being a woman in a male-dominated industry can also offer opportunities.

“Female founders and CEOs have a chance to drive meaningful change within their organisations and the industry as a whole, shaping policies, practices and cultures, while contributing to greater gender diversity and inclusion within the industry,” she says. “Successful female leaders can inspire other women to pursue leadership positions in finance and break down barriers for future generations.”

Diverse leadership
Korelidou-Evripidou believes cultivating that diversity doesn’t just benefit women; it leads to better outcomes for everyone involved. “Companies with diverse leadership teams tend to perform better,” she says. “Female founders and CEOs can contribute to improved business outcomes through their unique perspectives and experiences.”

Learning from her own experience, she has made it her mission to encourage greater diversity in all forms. “I believe creating an environment where all team members feel comfortable sharing their perspectives and ideas is crucial for encouraging diversity,” she says. “My top tip for leaders is to encourage open communication, active listening and collaboration among team members to ensure that everyone’s voice is heard and valued.

“It’s also crucial to recognise and celebrate the unique backgrounds, experiences and perspectives that each team member brings to the table, and to ensure that leadership positions reflect diversity by actively promoting and supporting individuals from under-represented groups,” she says.

Adapting to change
That progressive leadership style isn’t just seen in Korelidou-Evripidou’s response to diversity; it is also reflected in the company’s approach to major challenges – most notably demonstrated during and since the pandemic.

Despite the challenges, GFSC Global managed to continue to grow, improving its financial results in 2023. “We did this by focusing on our strengths and building on our core competencies, putting the emphasis on strategic cost management, innovative business models and digital transformation,” she says.

The firm invested in technology to enhance its operations and improve customer experiences, and saw an opportunity to explore new markets and diversify its revenue streams. “With shifts in consumer behaviour and preferences, we sought opportunities in emerging markets and untapped demographics,” she continues. “This involved strategic market research, analysis of consumer behaviour and targeted marketing efforts to effectively engage with new customer segments.”

Future ambitions
The pandemic isn’t the only hurdle the company has faced; Korelidou-Evripidou points to regulatory challenges as one of the key issues for the industry. “As governments around the world strive to protect consumers, investors and the public interest, they have implemented stricter regulations across various sectors,” she says.

“This has led to a greater burden on corporations to ensure compliance with these regulations, resulting in increased legal and regulatory costs. The rapid pace at which regulations are changing makes it challenging for corporations to keep up with the latest requirements.”

But if the company’s past approach to challenges is anything to go by, these setbacks will only create further opportunities for innovation, adaptation and growth – and the company is already plotting its expansion plans. “We are approaching new jurisdictions for licenses in brokerage, crypto, gaming, banking, investment funds, blockchain and many other projects,” she says.

“We aim to continue the success of 2023 this year and beyond, using our experience and knowledge to deliver the best possible service to our clients,” she says. “We also want to continue cultivating a diverse, supportive team that not only benefits the bottom line, but inspires others to break down barriers and achieve their ambitions – as I am proud to have done,” Korelidou-Evripidou concludes.

Bulgarian banks are ready for the Euro adoption

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Bulgaria’s accession to the eurozone and the adoption of the world’s second most used currency is a long-anticipated process. This step will positively impact our economy and will be a driver for accelerating reforms, increasing prosperity, and reaching at least the average European living standards. It will offer numerous benefits to citizens and companies, not only by reducing transaction costs but also by improving the investment environment, activating local and foreign investments, with increased investment activity expected to support employment.

Eurozone membership will offer another benefit. Because of the expiring derogation, banks must allocate capital for purchasing Bulgarian government securities in euros and for holding euro deposits at Bulgarian National Bank (BNB), which is highly illogical given that we have been in a currency board for over 25 years.

This year, the effect is estimated at approximately BGN400m (€205m) of additional capital, and next year it is expected to double. Instead of guaranteeing risk-free loans to the state, this capital could enable us to increase loans to the real economy by several billion leva.

Adopting the euro is expected to boost Bulgaria’s international trade

The ECB will be able to act as a lender of last resort, minimising the risk of bank failures due to a liquidity crisis. Bulgaria will have the opportunity to participate in the decision-making process regarding monetary policy, instead of just being a silent bystander. Although all banks in Europe follow the same laws and regulations, being outside the eurozone, we bear the burden without the benefits.

Adopting the euro is expected to boost Bulgaria’s international trade, especially in agriculture, services, and tourism, as well as in certain manufacturing sectors where Bulgaria has already established strong positions within the EU networks.

In the Association of Banks in Bulgaria, we plan to launch an educational campaign among citizens, for which we count on the support of BNB and the government, to explain all the benefits of adopting the euro, which will significantly improve the business environment for everyone. Banks, businesses, and the state must unite to communicate clearly and help our clients, our employees, and the society navigate through the abundance of information and counteract misinformation, enabling everyone to understand the advantages of adopting the euro. The euro has already become a part of our daily lives, with a significant portion of real estate prices listed in euros, and Bulgarian citizens frequently conducting transactions in this currency.

All systems go
Together with other member banks of the Association of Banks in Bulgaria, we have even more initiatives in the field of environmental protection, social policies, and corporate governance, the so-called ESG. The role of banks is primarily to focus on the areas where we can have the most significant impact to achieve positive effects. Banks are key players in the green transformation, accelerating the path to climate neutrality not only through the decarbonisation of our operations but also through prioritised financing of our clients’ projects. Environmental protection is the most visible aspect of these initiatives, but it is far from the only one. We lead in promoting good governance practices, women’s participation in management, and the independence of our control bodies. For us banks it is important to meet all requirements and prepare our information systems accordingly. We will invest additional resources in cyber security enhancements and increase security measures, protections against cyber threats such as hacking, malware, or phishing.

Alongside that preparation, the contribution of the banking sector is extremely notable in digital banking. Habits today differ from those of yesterday because life imposes its own dynamics. The accelerated implementation of high-tech solutions enhances the user experience. Thus, we provide our customers with even higher quality, faster, and more efficient banking services because the foundation of banking is the relationship between the consumer and the financial institution. In this process, the major market players have an advantage because we possess the resources and means to implement various technological solutions and ensure even higher quality and efficiency in banking services. Digital cards, virtual wallets, and QR-code payments are all part of the new reality. However, the speed of technological transformation depends on the people in the team. We make significant investments in process re-engineering and human resources to create client-friendly applications that enhance the pleasure of interacting with us. The Phygital model is the future of banking. Hybrid forms of banking, a complex model blending digital and physical services, and consumer experience across different channels and platforms – sequentially, in real-time – are what we do at Postbank and what our clients expect. On the other hand, digital payments play a crucial role in stimulating economic growth, innovation, and consumer convenience.

Finally, the euro adoption is a historic moment, and we are well prepared for this significant step. And if there is a system in the Bulgarian economy that is already in the eurozone in terms of requirements, regulations, good business practices, and behaviour, it is the banking system.

So, I can confidently state that we, the banks, will be ready by January 1, 2025.

Lying in corporate elections

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We live in polarising times. The current political and cultural environment is arguably the most heated and controversial in decades. One of the most prominent victims of our era: the truth. As Mark Twain famously said; “A lie can travel half way around the world while the truth is putting on its shoes.” Political election campaigns, in particular, are riddled with misleading statements, half-truths and outright lies. Our fragmented media ecosystem and the pervasive influence of social media make it easier than ever to distribute falsehoods to a vast audience near-instantaneously, compromising the integrity of political elections.

While not as extreme as with political discourse, similar issues have emerged in corporate elections. In recent years, it seems there have been more half-truths and outright lies in proxy contests than perhaps ever before. During proxy season, hardly a day goes by without a press release, shareholder letter or investor presentation containing questionable statements.

Public companies, as securities issuers, face heavy scrutiny of their disclosures under areas of federal securities law beyond the proxy rules. A company simply cannot make recklessly optimistic statements about its future prospects without exposing itself to liability.

Misleading statements, half-truths and outright lies undercut the ideals of corporate democracy

Dissident shareholders like activist funds, on the other hand, generally escape similar levels of scrutiny. There are rules designed to protect the integrity of corporate elections – the federal proxy rules under the US Securities Exchange Act of 1934. Unfortunately, however, these proxy rules – many of which were adopted decades ago and long before the advent of the digital age – are increasingly under stress. In fact, many activists repeatedly violate the proxy rules, yet apparently face no repercussions.

Constraints on misstatements
Rule 14a-9 under the US Securities Exchange Act of 1934 prohibits false and misleading statements in a proxy contest. The rule also prohibits the omission of material facts when such omission would make statements false or misleading. The rule provides examples as to potentially misleading statements, including:
predicting future market values;
making disparaging claims without sufficient facts;
obfuscating who is disseminating the proxy solicitation materials in question, and;
making claims prior to a shareholder meeting regarding the results of a solicitation.

While helpful on its face, rule 14a-9 leaves substantial leeway for interpretation of a statement. The application of these rules has often failed to rein in even clearly problematic behaviour in proxy contests.

For example, the legality of statements about proxy tallies prior to the closing of the polls remains an unresolved issue. As noted above, rule 14a-9 lists ‘claims made prior to a meeting regarding the results of a solicitation’ as an example of a misleading statement. On that basis, several courts have ruled that such disclosures can spoil the fairness of the voting process by creating a ‘bandwagon effect.’ This is the phenomenon that many shareholders may vote for the purported likely winner in the belief that the outcome has become a ‘foregone conclusion.’

Yet, many courts have been reluctant to intervene even in seemingly clear cases. For instance, in one court case, an activist announced preliminary proxy voting results several weeks prior to the shareholder meeting, claiming that it was clearly leading with 80 percent of the shares voted. These numbers turned out to be false. However, the court declined to issue a preliminary injunction, and the dissident proceeded to succeed in its proxy contest. This explains why we still see leaks of alleged or actual preliminary vote tallies pre-meeting on a regular basis, including in a recent high-profile proxy fight.

SEC review
In the past, the SEC staff in the Division of Corporation Finance, through the comment letter process, strove to enhance compliance with these proxy rules. Whenever a party overstepped boundaries, the other party would send a private and confidential letter to the SEC, noting the violations. To the extent its staff agreed, the SEC would often react promptly to those letters by issuing comments to the offending party. This process ensured that the rhetoric in proxy contests remained significantly less heated and more truthful than in political elections.

We believe it is time for Congress to level the playing field

In recent years, practitioners have observed a decline in the number and breadth of SEC comments in proxy contests. This surprising trend contrasts with the SEC’s extensive focus on proxy contests prior to the adoption of the universal proxy rules in 2021. The SEC’s packed agenda and limited resources have likely shifted attention towards other pressing matters.

Moreover, the SEC’s authority under the proxy rules has always been limited. The Division of Corporation Finance can only provide comments. If proxy rule violators do not comply with those comments, their staff can only refer a matter to the SEC’s Division of Enforcement. However, we are not aware of any enforcement action prior to a shareholder meeting in recent years.

Litigation in federal court
Companies waiting for SEC action can instead bring suit against proxy rule violators in federal court. However, litigation poses significant risks for a company.

As an initial matter, lawsuits are not inexpensive. While there is often insurance when companies are the defendants in a lawsuit, there is typically no insurance available for companies to pursue litigation as plaintiffs. Moreover, proxy advisory firms and investors frequently criticise companies for initiating litigation against shareholders. This is certainly an important consideration in a proxy contest where a company needs to weigh any potential win in court against a loss at the ballot box.

More substantively, there is also the reality of condensed proxy fight timelines and the burden of proof. Proxy contests are fast-paced and shareholder meetings are typically only a few weeks away. Therefore, a litigant needs to move for expedited proceedings and file for a preliminary injunction to have any hope for a ruling prior to election day. The burden of proof for the issuance of a preliminary injunction, however, is greater than that required in regular proceedings. A preliminary injunction is an extraordinary remedy that generally will be granted only in limited circumstances.

Many activists repeatedly violate the proxy rules, yet apparently face no repercussions

This type of remedy is available generally only when the plaintiff establishes that: 1) there is a likelihood of success on the merits; 2) there is irreparable harm if the injunction is denied; 3) the balance of the equities tips in the plaintiff’s favour; and 4) the public interest favours the requested relief.
This standard requires plaintiffs to clear a high bar – a challenging proposition in the midst of a proxy contest.

A further complicating factor is that many federal judges are not familiar with the intricacies of proxy contests because such cases are relatively rare. As a result, the case law originating from the federal courts has been uneven and inconsistent.

For example, a court last year ruled that certain disclosure claims can be ‘mooted’ by the defendants by merely filing the complaint with the SEC and stating that they disagree with the lawsuit. This holding is antithetical to the purpose of the securities laws, which focus on accurate disclosure. This ruling has become yet another potential obstacle to enforcing disclosure claims in federal court.

A call for action
It is time to protect the integrity of corporate elections and the shareholder vote. Misleading statements, half-truths and outright lies undercut corporate democracy. We believe it is time for Congress to level the playing field. The SEC should receive more resources to monitor proxy contests. In addition, the proxy rules should be tightened and provide the SEC with more authority to sanction violations. For instance, the SEC should have the right to require proxy rule violators to publicly withdraw false statements. The SEC should also be authorised to enjoin proxy contests and impose severe sanctions on repeat violators (freeze-out periods, for example). Lastly, it should be clarified that the mere filing of a complaint with the SEC is insufficient to ‘moot’ a lawsuit over misstatements in a proxy contest.

These changes would correct a fundamental imbalance in our current system between companies and activist shareholders. Simply put, both companies and investors should be held to the same standard. Some may argue that in our free market system, investors should engage in their own research before voting, rather than relying on a government regulatory agency to police proxy contests.

However, in fast-moving proxy fights, even institutional investors do not have the time, resources, or manpower to fact check all statements. Proxy advisory firms like ISS and Glass Lewis, who influence significant portions of the vote, are similarly ill positioned to combat misinformation. Retail shareholders, a major focus of the SEC’s mandate, are even more vulnerable to disinformation in proxy fights. For these reasons, the investor community cannot solve this issue on its own.

Given current trends, it’s already past time for Congress to step in. The SEC takes a leading role to combat misleading or untruthful statements in other contexts – and Congress should enable it to do the same in proxy contests. Lying with impunity should not become a norm in our corporate elections.

A creative approach to consulting

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Thomas Bargetzi, Founder and CEO of THOMAS BARGETZI AG, believes that success is the goal of all works, activities, or things you try to achieve, and the result of many little pieces of performance. “I get up in the morning to be successful, otherwise I stay in bed. Success is a mindset. This means you must be a leader, concentrated and focused on the matters you do, with the people you are working with!” he declares.

Bargetzi also believes that failure is the other side of success and that you can only become successful if you are ready to accept this fact. Likening success in sports to success in life, where sometimes you win and sometimes you lose, he notes that in life, you simply need to win one more time than you lose, which means you have won!

Preparing for success
As a sports addict in his youth, Bargetzi intended to become a professional sportsperson, but his father urged him to get a basic university degree to have access to all the options he needed to perform in his business life, once his sports career was over.

Bargetzi considers this the best advice he ever got, and after he finished his sports career, he went through 13 years of further education, studying finance, management, business administration (an MBA at City University), a postgraduate in controlling, and two bachelors degrees in marketing and sales. Equally important for European operations, he speaks four languages fluently; English, French, German and Italian.

Having reached the top of a very big company, the Feldschlosschen Brewery in Switzerland, at the age of only 37, Bargetzi felt that there must be something else he could aim for, and that goal turned out to be defining a new business model.

You simply need to win one more time than you lose, which means you have won!

Bargetzi noticed that consultants often had very good ideas, plans, and strategies, but little or no idea about the best way to make them operationally successful. With this in mind, he defined the business model of ‘operational interims management,’ which involved taking charge of these ideas, defining them clearly and using one’s own talents to realise and achieve success in what others have planned.

Along with his website, www.bargetzi.com, where he describes how one can implement this newly defined business approach, Bargetzi got together with three business colleagues and founded the Swiss Association for Interims Management (DSIM), where over 500 interim managers share experiences and advice for difficult situations.

As the CEO and owner of his own restructuring/turnaround company, Bargetzi’s modus operandi when having a mandate in a company is to start with 10 days of operational analyses, going through each department, talking to many, many people, going out to visit customers to get their input, get the strategy, and understand the job. Bargetzi follows up by proposing what he would do. “If the customer accepts, I execute what I proposed. I collect as many facts, figures, and data to understand where we make and where we lose money. I then propose actions to achieve the goals,” he explains.

Dare to dream
Bargetzi’s plan for the future of THOMAS BARGETZI AG is to achieve 60 mandates, which means he has five more to go. He also plans to continue working until he turns 70 and to have as much fun as possible in business and his private life. As an avid sportsman, Bargetzi plays sports five days out of seven, mainly after work, to help digest what he has seen during his day. He also finds that movement is the best way to restore and recharge his batteries.

Bargetzi also has his eye on the new generation, hoping to inspire and guide those who will follow in his footsteps. Bargetzi hopes to convey more than ever that “everything is possible. You simply must watch out, try things, be smart, fast, and dare to fail.”

The fintech evolution is elevating the trading experience

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Over the past few decades, finance and technology have intersected, sparking a revolution in the way we manage, invest, and trade our assets. A new era of accessibility and innovation has been introduced; it has redefined traditional brokerage models and has since greatly impacted financial services and online trading and investment.

Leaders around the world are challenged to integrate technology into their strategies and plans, in order to meet the evolving needs of their clientele. Philippe Ghanem, Founder and CEO of fintech firm SquaredFinancial, stands at the forefront of this revolution, pioneering a vision to transform his online brokerage firm into a one-stop shop for investors around the world. Today, SquaredFinancial is a renowned online gateway that offers investors and traders around the world access to the world’s most popular financial markets.

Leading the fintech frontier
Ghanem’s vision for trading extends beyond traditional brokerage offerings. He founded SquaredFinancial in 2005 out of Dublin, driven by his fascination about technology and fuelled by the idea of changing people’s perception of trading. By leveraging the power of technology, SquaredFinancial aims to revolutionise the investment landscape, providing a comprehensive range of products and services in one place. From cutting-edge trading tools, market analysis and state-of-the-art trading platforms, to banking-like conveniences such as debit cards and fixed deposit accounts, the company is dedicated to simplifying and enriching investor experience and making trading the financial markets accessible to all. Whether it is trading stocks CFDs, forex CFDs, or cryptocurrencies CFDs, or accessing expert market views and analyses, SquaredFinancial aims to provide a seamless and integrated experience for its clients, as well as the proper education and knowledge of the markets and their drivers, that will help them make informed decisions.

With over two decades of experience in the trading and financial industries, Ghanem showcases a wealth of expertise and innovation. Widely regarded as an innovator and visionary in global financial markets, Ghanem has built a reputation for founding and nurturing financial services companies grounded in his deep understanding of trading systems. His strong belief in the power of innovation and technology has fostered strong customer relationships and paved the way for innovative products and services. At SquaredFinancial, Ghanem leads a team of industry experts who share his passion for trading, ensuring that education, analysis, and expert views form the cornerstone of the company’s wealth of expertise offered to their global clients and investors, a rich know-how that will help them elevate their trading experience.

Quality over quantity
We live in a fast-paced digital world submerged with information, where quality is often dimmed by quantity. However, Ghanem believes that true success lies not in the overwhelming volume of content that people encounter in their traditional and digital feeds, but rather in the originality, relevance, and impact of what is produced and how they react to it and interact with it. In every sector or industry, consumers are interested in authenticity, reliability, and value.

Whether it is in product development, content creation, or customer service, prioritising quality fosters trust, loyalty, and distinction. Ghanem is keen on investing time and resources into creating ideas and delivering exceptional experiences and quality service. Which is why, in its pursuit of excellence, SquaredFinancial is committed to quality that lasts, building long-term partnerships with its clients and stakeholders.

Ghanem is a strong believer that excellence and personalisation are the pillars to positioning his company as a leader in the financial industry. In today’s competitive investment landscape, where products and services are often similar, tailored customer service and support are key in creating trust and loyalty. SquaredFinancial offers investors innovative products with competitive pricing and conditions, alongside high security and transparency. The company understands that supporting clients goes beyond resolving issues.

The team strives to offer them an exceptional and localised support that encompasses understanding and anticipating their needs, empathising with their challenges, and providing tailored solutions with efficiency and proactivity. Each interaction becomes an opportunity to exceed expectations and build trust. This dedication to quality service not only resolves issues but also transforms customer challenges into opportunities to strengthen relationships.

Resilience of the trading industry
The financial markets are historically known for being volatile, subject to fluctuations driven by a host of factors, from geopolitical events to economic indicators. In such a dynamic environment, resilience is key to success. Ghanem understands the importance of adaptability, guiding SquaredFinancial through with determination and insight. By embracing innovation and technology, the company has emerged stronger than ever, well grounded, and led by industry experts.

SquaredFinancial aims to revolutionise the way investors access and manage their finances

The rise of fintech has brought a new era in finance, disrupting traditional models and democratising access to financial services. From mobile banking to robo-advisors, fintech innovations have reshaped the industry landscape, empowering consumers and investors alike. Ghanem recognised the transformative potential of fintech early on, laying the groundwork for SquaredFinancial to thrive in this rapidly evolving ecosystem.

Since its inception, the company has been guided by a sole vision; to revolutionise the way investors perceive the trading industry and engage with financial markets. Under Ghanem’s leadership, the company has pioneered a range of innovative solutions designed to simplify the investment process. From its intuitive mobile trading platform to advanced market analysis tools, SquaredFinancial is committed to making trading accessible to investors of all backgrounds and experience levels.

With great knowledge
Empowering investors with knowledge is crucial to SquaredFinancial’s values. Ghanem recognises the importance of education and transparency in fostering trust and confidence among clients. Through a range of educational initiatives, including podcasts, webinars, seminars, and analyses, SquaredFinancial provides clients with the tools and information they need to make informed investment decisions. By simplifying the intricacies of the financial markets, the company empowers investors to take charge of their financial futures.

By embracing innovation and technology, the company has emerged stronger than ever

In today’s interconnected world, diversification is essential to mitigate risk and try to maximise returns. Ghanem understands the importance of spreading risk across diverse markets and asset classes, helping investors navigate volatile market conditions with confidence. Through innovative investment strategies and expert market analysis, SquaredFinancial empowers clients to build diversified portfolios according to their financial profiles, tailored to their individual risk tolerance and financial objectives.

At the heart of SquaredFinancial’s innovation strategy lies the power of AI and big data analytics. Ghanem is a strong believer in the potential of these technologies to revolutionise the investment landscape. By leveraging AI algorithms and advanced data analytics, the company gains valuable information about market trends, identifying investment opportunities and risks. From in-depth analytics to algorithmic trading strategies, SquaredFinancial can stay ahead of the curve and accompany its clients on their trading journey.

EMIs and big tech
As the financial landscape evolves, the role of Electronic Money Institutions (EMIs) has become increasingly prominent. EMIs leverage technology to offer innovative financial services. Ghanem is aware of the potential of EMIs to drive innovation and efficiency within SquaredFinancial, which is why the company aspires to create a one-stop shop for investors, offering innovative financial services and breaking the lines between traditional banking and fintech. By harnessing the power of big tech and AI, SquaredFinancial aims to revolutionise the way investors access and manage their finances.

Beyond healthy trading, Ghanem is a passionate advocate for impact investing, championing the alignment of financial goals with societal benefits. Impact investing seeks to generate positive social outcomes, addressing global challenges such as social inequality and sustainable investment. By leveraging the power of data-driven decision-making, SquaredFinancial aims to identify investment opportunities for all to promote economic inclusion, help reduce inequalities, and create meaningful impact.

Sustainability is in our DNA

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KBC is an international banking and insurance group with 42,000 employees and 12 million clients across Belgium, Slovakia, Hungary, Bulgaria and the Czech Republic. KBC Asset Management NV (KBC AM) acts as the group’s investment arm, working with 2.8 million retail and institutional investors, developing products for intra-group distribution and providing investment fund sales and advisory support. At the core of our day-to-day motivation lies our motto ‘Everyone invested all the time’ and our mission remains clear: make investing a healthy financial habit for everyone, keep clients feeling comfortable when investing and so keep them invested, and do this in a personalised, though efficient way.

Sustainability is key
It is clear that the world has shifted towards sustainability. This trend can’t be stopped because it is driven by ethical concerns, financial incentives, protecting the environment, and making sure workers are healthy and happy. It has become a crucial focus for businesses and investors across the world.

At KBC Asset Management, we integrated sustainability into our overall corporate strategy. The basic condition for sustainability is financial resilience and vice versa. Only by focusing on long-term sustained financial performance and strict risk management are we able to honour all our commitments.

Our customers also want to contribute in this area. Responsible Investing (RI) is a way of allowing clients to combine their financial goals with their concerns for the environment, society and corporate governance. The impact of global warming is one of the greatest challenges the world faces and will have a significant and lasting impact on economic growth and prosperity. As a large financial institution, we want to play a leading role and be a significant lever in the process of transition to a more sustainable society and a low carbon economy, by working together with all stakeholders.

Since 1992, KBC has adapted its sustainability policies to reflect changing insights. It is also the year we launched the first Responsible Investing fund in Belgium. We regularly bring new solutions to the market and our methodology has become increasingly stringent. KBC Asset Management was also the first financial institution in Belgium to have its own Responsible Investing research unit.

Fully in line with our sustainability strategy, all Responsible Investing funds have been fossil fuel-free since November 2017. And in May 2018 KBC launched Pricos SRI, the first SRI pension savings fund on the Belgian market. In 2019, all our Responsible Investing funds in Belgium obtained the ‘Towards Sustainability’ label, an initiative of Febelfin (the Belgian Financial Sector Federation).

Remaining on top of things
We are, and remain, a pioneer regarding Responsible Investing. That said, it is a strategic choice to keep on top of the developments in our industry. That includes being future proof in a lot of areas: up-to-date methodology, investment solutions that take the current sustainable challenges into account and providing state-of-the-art reporting. In fact we recently updated our Responsible Investing methodology with a much bigger role for biodiversity due to the impact of global warming. A new biodiversity policy is being added whereby companies with serious controversies over land use and biodiversity will now be excluded, as well as companies with activities that have a negative impact on biodiversity and that do not take sufficient measures to reduce their impact.

Keep evolving
The world of Responsible Investing is evolving rapidly. Not only are our clients’ expectations changing, the regulator has also published clarifications on the various legislative initiatives and the quality standard of the Towards Sustainability label has also been tightened. This is why KBC Asset Management screens its Responsible Investment methodology annually to comply with the most recent developments.

Responsible Investing stands or falls by its credibility. Therefore the sustainability policy and criteria are monitored by the Responsible Investing Advisory Board, which is fully independent of KBC. The body consists of leading academics from several universities, who are experts in fields like human rights, business ethics, biology and ecology. We give our clients a transparent view of their investments.

For example, a Responsible Investing dashboard was set up in the clients’ mobile application, where they can track the goals of their Responsible Investing funds. This report is accessible to every investor. We want to be the reference and stay one step ahead of the competition. KBC Asset Management will continue to move alongside the markets and the preferences of its clients to keep its services up to date. We will continue to work towards a sustainable and responsible future, that keeps everyone invested, all of the time.

India’s economic ascendancy

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The world is undergoing an unparalleled evolution, unlike any witnessed in human history. Never before have we witnessed such remarkable advancements in manufacturing, renewable energy, infrastructure development and artificial intelligence, among others. What sets this apart is not just the magnitude of dynamic progress, but also the global distribution of its impacts. This needs action that is both purposeful and that facilitates nation building. With this shift comes the necessity for businesses to accelerate their approach to sustainable, inclusive, and enduring growth for all stakeholders. The United Nations defines sustainable development as development which meets the needs of the present without compromising the ability of future generations to meet the same. By ensuring sustainable and inclusive growth, India aims to leapfrog to a developed economy.

Indian corporates must actively seek to ingrain sustainability and inclusive growth principles in their organisational culture. It is also equally crucial that businesses establish partnerships with entities that share similar dedication and enthusiasm for generating a positive impact on society. Further, instilling an innovation-centric mindset capable of going beyond conventional boundaries and devising ingenious approaches to accomplish overarching goals is paramount for a country like India. While each industry contributes in its own way, the natural resources sector which provides essential raw materials for various industries and holds a significant potential for sustainable development would play a critical role. From minerals used in renewable energy to metals essential for modern infrastructure, the natural resources sector underpins the foundation of sustainable and inclusive growth.

The role of natural resources
India’s ascent as an economic powerhouse is characterised by its dynamic population and demographic dividend. Central to the country’s economic surge lies the indispensable contribution of natural resources. With the advent of transition in the area of energy and industry, the demand for minerals and raw materials is poised to skyrocket, positioning sectors like mining as fundamental blocks of the India growth story.

India’s mining sector is experiencing healthy growth, driven by the nation’s pursuit of self-reliance and economic prosperity. Today, India is the second largest steel and aluminium producer, fourth largest iron ore and zinc producer and sixth largest bauxite producer in the world. Being a leading group in this sector, Vedanta, with its diverse portfolio encompassing zinc, lead, silver, iron ore, steel, copper, aluminium, nickel, and oil and gas, is uniquely equipped to meet the escalating demand for primary materials, both domestically and internationally. Vedanta’s strategic assets across the globe amplify its capabilities, enabling it to significantly contribute to ensuring resource sufficiency. Central to Vedanta’s vision is the role it plays in supporting India’s quest for self-reliance in minerals, metals, and energy. A vision that encompasses more than just financial growth – one that aspires to uplift communities, safeguard the environment, and cultivate a culture of broad-based prosperity – is essential for businesses aiming to contribute to the broader agenda of nation-building.

Aerial view of zinc smelting plant

Vedanta’s leadership as a natural resources conglomerate transcends mere scale, embodying a commitment to sustainability and responsible business practices. Vedanta’s zinc business holds around 75 percent market share in India’s primary zinc industry while its aluminium business has about 50 percent market share.

Vedanta is the largest private sector oil and gas in India, contributing nearly 25 percent of India’s oil production. As frontrunners in various segments of the natural resources industry, Vedanta’s operations are guided by a holistic value creation process that places equal emphasis on business, social, and environmental sustainability. Vedanta’s contribution to India’s economic success extends beyond its commercial pursuits and includes efforts to empower marginalised communities through its social impact programmes. By uplifting marginalised communities and enabling inclusive growth, Vedanta is contributing towards India’s economic progress. Moreover, Vedanta’s constant efforts are visible in adapting greener mining practices to ensure environmental sustainability.

Leading the charge
Through strategic investments in technology and innovation, Vedanta is spearheading the transition towards sustainable mining while prioritising inclusive and responsible practices. By aligning every business unit with the shared vision of ‘Transforming for Good,’ Vedanta has set the stage for integrated growth and long-term sustainability. For this, Vedanta has embraced a holistic approach towards growth with industry-leading ESG practices, ensuring that economic progress goes hand in hand with social development and environmental stewardship.

The commitment to excellence with the below mentioned nine ESG aims is leading the path for Vedanta to carve its niche in leadership:

Transforming communities
Aim 1: Keeping community welfare at the core of business decisions
Aim 2: Empowering over 2.5 million families with enhanced skillsets
Aim 3: Uplifting over 100 million women and children through education, nutrition, healthcare and welfare
Transforming the planet
Aim 4: Net-carbon neutrality by 2050 or sooner
Aim 5: Achieving net water positivity by 2030
Aim 6: Innovations for a greener business model
Transforming workplaces
Aim 7: Prioritising health and safety of all employees
Aim 8: Promote gender parity, diversity and inclusivity
Aim 9: Adhere to global business standards of corporate governance

As India charts a course towards achieving net zero emissions by 2070, Vedanta has emerged as a key enabler, leveraging its diverse portfolio of metals and minerals to drive indigenous manufacturing and bolster supply chains. This contributes to India’s energy security and mineral independence. Vedanta has committed towards achieving net zero carbon by 2050 or sooner with a planned $5bn investment over the next decade and reducing absolute emissions by 25 percent by 2030 from the 2021 baseline. Over the past year, concrete measures have been undertaken in this direction to reduce GHG intensity, use renewable energy, and implement innovative technologies for minimising environmental impact. Vedanta has also invested in community development programmes to help build the resilience of communities and enhance its social license to operate.

Vedanta also places a strong emphasis on innovation and greener product portfolios. By driving innovation in products with lower carbon footprints and embracing renewable energy solutions, Vedanta is consistently aligning its business objectives with environmental imperatives. The company’s commitment to reducing its carbon footprint extends beyond operational efficiencies to encompass initiatives like renewable energy adoption and decarbonisation of vehicle fleets.

Transcending operational boundaries
Vedanta’s journey towards sustainable growth exemplifies the power of responsible corporate citizenship with its initiatives serving as a catalyst for positive changes at the community level and beyond. As the company continues to forge ahead, it remains poised to shape a future characterised by prosperity, equity, and sustainability.

By weaving sustainability into its core business processes and governance mechanisms, Vedanta has aligned with global best practices while driving value creation for its stakeholders. It has upheld accountability and transparency, setting a precedent for responsible corporate citizenship through transparent reporting and comprehensive sustainability frameworks.

Vedanta’s sustainability focus also transcends operational boundaries, empowering communities and supporting inclusive growth. Vedanta’s philanthropic initiatives positively impact over 50 million lives annually, focusing on childcare, nutrition, women’s empowerment, healthcare, skilling, sports and animal welfare.

Through programmes like Nand Ghar – an initiative for enhancing pre-primary learning, health and women’s empowerment – Vedanta is helping uplift millions by providing access to education, healthcare, and nutrition. In the last six years, Vedanta spent over Rs2,200 Crore on CSR. By focusing on the wellbeing of women and children and striving to combat hunger and malnutrition, Vedanta is consistently focused on social upliftment and inclusive growth.

The pivotal focus on inclusive growth permeates every facet of the organisation, shaping its internal processes, governance structures, and business administration mechanisms. Underpinning this vision is the commitment to upholding good governance practices, supported by rigorous policies and frameworks that drive accountability and transparency.

Driven by its focus on building a strong foundation, Vedanta’s resilience and adaptability helped the group navigate unprecedented geopolitical and operational challenges in recent years. Despite the unpredictable macroeconomic environment caused by global conflicts and supply chain disruptions, Vedanta achieved commendable operating performance while navigating external shocks and realigning supply chains.

As Vedanta charts its course for the future, the company remains committed to elevating its ESG journey. By setting a horizon for certain ESG plans at 2030, Vedanta aims to set broader targets and programmes with a greater impact. This includes plans to have 2.5GW of continuously operating renewable energy (RE RTC) capacity and completely decarbonising its fleet of light motor vehicles by 2030.

As India grapples with the intricacies of economic expansion and environmental preservation, Vedanta remains at the vanguard of driving sustainable transformation. Vedanta’s vision extends beyond mere profitability, underscored by its emphasis on shared value creation and stakeholder engagement. Championing diversity, supporting marginalised communities, and promoting equality are actions that not only enrich lives and contribute to the strengthening of societal fabric but also improve productivity and resilience of businesses.

By setting ambitious ESG targets and collaboration with stakeholders, Vedanta aims to unlock value while safeguarding the interests of all stakeholders. As the company embarks on its transformative journey, it remains committed to creating a sustainable and inclusive future for India and beyond.

Ingraining sustainability
In the case of Vedanta, its corporate strategy is devised to address and act upon the fundamental expectations of key stakeholders concerning critical issues such as climate change, human rights, occupational safety, environmental conservation, diversity, inclusion and governance. This strategy is underpinned by a three-pillar framework which serves as the driving force behind the company’s efforts to promote sustainability outcomes across our communities, workforce, and the environment. Leveraging its leadership position and innovative technologies, Vedanta is not only catalysing India’s economic resurgence but also shaping a future where economic prosperity is intrinsically linked with environmental stewardship.

In order to contribute in this direction, Vedanta continues to serve as a leading responsible business, driving sustainable development and prosperity for generations to come.

Financing the economy, the mutualist way

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What is your analysis of Crédit Mutuel’s performance in 2023?
In 2023, the Crédit Mutuel group achieved a record performance, with net revenue of €4.6bn, which was an increase of 8.4 percent, demonstrating strong sales capacity and its operational efficiency as well as financial stability.

In a complex economic environment marked by persistent inflation and changing monetary policy, these results attest to the effectiveness of Crédit Mutuel’s diversified universal banking and insurance model and the relevance of its strategic choices in serving the collective interest.

We are allocating more than 90 percent of revenue to reserves for development in order to offer the best possible quality of service to our customers and members through innovative, useful and solidarity-based offers and, more generally, through actions that benefit society as a whole.

Our group relies on the efforts of its 84,600 employees and 20,000 elected members via its local networks to serve its 37.8 million individual, professional and corporate customers in France and Europe.

We can see that the crisis is accelerating transformations, in particular awareness of the environmental and climate emergency. How does the group integrate this challenge and step up efforts in its strategy?
In view of the issues of global warming, loss of biodiversity and damages caused by exposure to climate hazards, we are stepping up our eco-responsible initiatives and offerings to support our customers with their ecological and energy transition projects.

Strongly committed to the decarbonisation of the economy and the protection of biodiversity, the group continues to implement sectoral policies with the objective of contributing to carbon neutrality in accordance with the Paris Climate Agreement. This is reflected in particular in the publication of decarbonisation targets in the context of the group’s membership of the Net-Zero Banking Alliance (NZBA).

In addition to strong strategic ambitions, in 2023 the Crédit Mutuel group continued to integrate climate and environmental risks into its overall risk management and developed a methodology for assessing its customers’ geographic exposure to climate hazards.

The group is reducing its exposure to activities with high social and environmental impacts: by moving away from unconventional fossil fuels; by ceasing to finance coal-fired power plants and mining operations; by strengthening its climate commitments and sector policies in sectors with high carbon intensity; and by continuing its commitments in key sectors given its business model, such as the agricultural and wine-growing sectors, as well as in the agri-food and residential sectors.

How is your engagement in the regions concretely reflected?
The group continues to fully play its role in financing the economy by supporting the needs and projects of all its customers and members, particularly the most vulnerable, both in bancassurance and through its many other services. The purpose of a bank, particularly a cooperative bank such as Crédit Mutuel, is to stay as close as possible to its customers and give them support at every stage in their lives.

The mutualist model enables us to respond to the expectations of the current era

Our decentralised organisation facilitates short decision times, enabling us to be highly responsive to all our customers’ needs. This regional proximity enables us to make quick decisions based on our insight into local realities. This support for economic development in the regions is part of our approach as a financial partner over the long term. It includes support also through our private equity structures (more than €4.8bn in equity in 600 innovative or high-growth companies).

The quality of our customer relationships is also a priority – in 2024, the group has again been ranked number one by BearingPoint-Kantar for customer relations in the banking sector. The commitment of our employees and elected directors and investment in new technologies are the strengths of our group in addressing the challenges of today’s world. Within the Crédit Mutuel group, we build success day by day in each of our local co-operative banks and network branches, serving everyone.

More generally, how does the mutualist approach serve as a response to the challenges ahead?
The mutualist model enables us to respond to the expectations of the current era. Our values are based on proximity, with a regionally rooted organisation serving development in general and that of economic players, enabling us to provide the best possible service to our customers.

The solidity afforded by this model gives the group the means to act in support of the economy and also to engage in social and environmental initiatives. Because the group is a co-operative bank with no shareholders, it only has its customers to satisfy. This is a guarantee of its independence and freedom of action. It is also a differentiating factor and underpins the strength of its commitment.

Our aim is to remain profoundly mutualist, useful and supportive, at the service of members, customers and society. Our founding aims were mutualist and this approach remains central to everything we do. We want to remain efficient and supportive – always enhancing our performance so that we can also enhance our support.

Building the sustainable data centre

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As walls rise in the Arizona sun, a group of buildings are quickly coming together that will provide necessary infrastructure for our modern economy to operate. Usually unknown to outsiders, the four walls of the large nondescript buildings enclose some of the most valuable resources on the planet: data. Glendale will soon be home to one of QTS Data Centers’ largest campuses that support mission-critical technology applications for our customers. Thanks to our innovative QTS Freedom standard design, QTS’ data centres will use no water for cooling, saving hundreds of millions of gallons of water per year.

As part of the company’s stewardship of local resources, QTS continues to strive for strong sustainability measures that drive efficiencies and limit environmental impact. Where our locations call home is also home to our employees, customers, and data centre users. We are passionate about environmentally preserving our operational regions and doing our part to enhance those communities.

Globally, QTS has worked diligently to maintain power efficiency standards, replanted hundreds of thousands of trees, and supported the development of new solar projects via long-term power purchase agreements. In addition to our commitment to procure 100 percent of our electricity from carbon-free sources by 2025, QTS has made water conservation a key pillar of our sustainability strategy. Areas like Glendale and Phoenix, situated in the American desert landscape, are rightfully cautious with resources like water. Data centre equipment produces intense heat that requires cooling mechanisms that keep the IT infrastructure load from overheating. This is critical to systems our community relies on, such as emergency doctors accessing hospital records, e-911 centres transmitting life-saving information, or commuters using ride-share apps. To ensure systems like these are uninterrupted, data centres must keep customers’ IT load efficiently cooled. Traditional data centres often use millions of gallons of water each year to cool their systems. But it doesn’t have to be this way.

A water strategy
The QTS Freedom standard design, which was developed to sustainably manage resources while efficiently managing energy, water, and waste, is incorporated into all new QTS builds, including developments underway. Efficiency is core to this standardised building design, allowing QTS to pinpoint power and cooling to specific spaces to increase efficiency. These closed-loop systems do not consume water. Instead they use a low-pressure pumped refrigerant system that can use outside air to remove heat without using water. The system also employs an economisation mode when outdoor temperatures are below the return air temperature to further increase efficiency. In closed-loop systems like these, the system is initially ‘charged’ with water, refrigerant or both. The system will only need more water if maintenance requires a recharge.

In one Georgia-based data centre alone, by eliminating the use of water to cool Freedom data centres, QTS’ water-free cooling system saves more than 248 million gallons of water annually – the equivalent of water used in more than 2,200 US homes per year.

Philanthropy and partnerships
As part of the success-based giving programme, QTS has partnered with World Vision, a world leader in humanitarian efforts, to sponsor programmes that provide clean water to individuals and communities in need across the globe. Since the start of this partnership, QTS has provided over 37,000 individuals clean water through 13 global water points. QTS’ commitment to sustainable practices also strengthens its water-efficiency efforts. By committing to sourcing renewable energy, QTS strengthens its water-reduction strategy as wind and solar energy sources do not utilise water to produce electricity. QTS has signed long-term contracts for solar- and wind-generated energy in multiple states, sourcing and increasing the amount of its power from renewable energy sources.

Supporting communities
When choosing locations for new facilities, QTS engages in a comprehensive due diligence process and risk analysis. Access to renewable energy and water scarcity within an area are two major considerations. Many regions that offer solar- and wind-generated power are water stressed, with water demand exceeding supply. Unlike other data centres that need to pull water resources from these already strained areas to cool their facilities, the QTS Freedom design requires no water for cooling. This can save considerable amounts of water given the scale and magnitude of its facilities. The cooling systems QTS uses in water-free systems are also more energy efficient, using close to half the amount of power that water-based systems need.

These practices are transformative in communities like Glendale. As the campus comes together, water usage on this plot will be reduced by hundreds of millions of gallons versus the prior use. QTS is creating a water-positive scenario to support this water-stressed community. QTS is continuing to innovate and lead best practices in the data centre industry. Ongoing commitment to sustainability is paramount to building a strong relationship with communities while providing critical services for customers across the world.

Zenith shows Nigeria the way forward

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Zenith Bank has always demonstrated the agility and resilience of a powerhouse financial institution with a special pedigree. Today, this tenacity and grit are being tested more than ever due to persistent macroeconomic headwinds in the home market. Despite these challenges, the bank is defying the odds and soaring to greater heights.

In 2022, Nigeria was Africa’s largest economy, boasting a gross domestic product (GDP) of $472.6bn. However, the devaluation of the Naira in 2023, prompted by the floating exchange rate policy, resulted in the country relinquishing its top spot. However, Nigeria has demonstrated astuteness in navigating through turbulent economic waters, intensifying efforts to reclaim its status as Africa’s leading economy.

The government is proactively addressing key issues such as inflation and the complexity of multiple exchange rates. Notably, these efforts have started to bear fruit, with the Naira appreciating significantly against the dollar – from NGN1,525 in early February to NGN1,136 in mid-April, marking a significant recovery.

This resurgence underscores a growing confidence among investors, buoyed by the Central Bank of Nigeria’s (CBN) adept handling of the foreign exchange market.

Recent policy changes, such as the elimination of fuel subsidies and the unification of exchange rates, complement these efforts. These measures have allowed market forces to play a more decisive role in determining the exchange rate, enhancing transparency and addressing previous market distortions. The appreciating value of the Naira is clear evidence of the positive impact of granting greater autonomy to market mechanisms within the foreign exchange sector.

Zenith Bank recognises the importance of SMEs and their significant untapped growth potential

Additionally, recognising the need for comprehensive economic recovery, the government is tackling deeply rooted challenges, particularly in revenue generation. President Bola Tinubu has established a panel to reform Nigeria’s tax laws and fiscal policies to enhance revenue generation while curbing excessive borrowing. The committee’s objective aligns with the administration’s Renewed Hope Agenda, striving to foster sustainable development and achieve a minimum tax-to-GDP ratio of 18 percent within the next three years without impeding investment or economic growth. This vision is pivotal in Nigeria’s journey towards building a trillion-dollar economy within the coming decade.

The recent recapitalisation programme of the banking sector by the CBN further complements these efforts, ensuring that the financial services sector is robust enough to support the nation’s economic ambitions. This initiative will strengthen the banking infrastructure, providing a solid foundation for Nigeria’s aspirations to become a trillion-dollar economy.

A challenging environment
Nigeria’s economic challenges in recent years have significantly impacted the banking sector. Rating agencies, including S&P Global, have raised concerns that high inflation and interest rate hikes could exert pressure on asset quality and operations. Furthermore, the depreciation of the Naira has necessitated an increase in gross loans, potentially elevating the risk of non-performing loans, especially for smaller banks.

Zenith Bank remains unshaken in its pursuit of growth

For Zenith Bank, the challenging macroeconomic environment has been a test of resilience. The bank has excelled, maintaining and strengthening its position as the most profitable bank in the Nigerian banking industry in 2023. This achievement is reflected in the bank’s 2023 financial results, which highlight Zenith Bank reaching new heights as Nigeria’s most profitable financial institution with triple-digit growth in profitability. This impressive performance came after the bank sustained its net interest margin at 7.3 percent.

Over the year, Zenith Bank achieved a 180 percent increase in pre-tax profits, reaching NGN796bn ($693m), up from NGN284.7bn ($248m) in 2022. This feat marks a record-breaking growth in profits, realised under challenging conditions. Importantly, it has solidified its leadership in Nigeria’s highly competitive banking sector, with a robust balance sheet that expanded by 66 percent to NGN20.4trn ($17.7bn).

Bucking the trend
The remarkable feat was achieved through precise implementation and execution of strategies that saw Zenith Bank post 112 percent growth in interest income and a 141 percent increase in non-interest income. During the year, interest income stood at NGN1.1trn ($957.7m) compared to NGN540bn ($470.2m) in 2022. Non-interest income, on the other hand, stood at NGN918.9bn ($800m) compared to NGN381bn ($331.7m) in the same period in 2022.

There is no doubt that Zenith Bank has thrived and achieved astronomic growth over a generation through bespoke financial products and services, superior customer service, digital transformation, innovation, and unparalleled investment in technology. The past months have proven the bank’s supremacy in strategy execution and its ability to navigate challenges and turn them into opportunities.

Two scenarios stand out. First is the bank’s exposure to the public sector. Given that Nigeria’s economy is heavily dependent on oil revenues, low crude oil production coupled with volatile crude prices in the international markets has led to a slump in earnings.

Nigeria has made tangible progress in driving financial inclusion

The impact has been a painful squeeze on state coffers. The public sector exposure, together with significant impairments from Ghana’s $13bn Eurobond restructuring, had a material negative impact on Zenith Bank’s bottom line. In 2022, the segment posted a loss of NGN11.8bn ($10.2m). Last year, however, it was the standout performer, posting an astounding 884 percent increase in pre-tax profit to NGN92.6bn ($80.5m).

Another highlight is the stellar performance and rapid growth of the retail market segment. Although individuals and households may have experienced reduced disposable income due to inflation, this has not shaken the confidence of customers in the Zenith brand. As part of its strategic objectives, Zenith Bank aims to become the leading retail bank in Nigeria. Last year, it made a significant leap, with retail customer numbers increasing to 36.4 million from 29.5 million in 2022. Retail deposits have also risen, now constituting 46 percent of total deposits compared to 44 percent in 2022, having increased by 77 percent to NGN7.04trn ($6bn) from NGN3.97trn ($3.3bn) in 2022.

Placing the retail segment at the centre of long-term growth, Zenith Bank prioritises customer engagement and value innovation. The bank understands that due to intense competition, attracting and retaining retail clients demands creative thinking. Part of Zenith Bank’s strategy includes developing customer value propositions unique to each customer sub-segment. For effective delivery, the bank has built an extensive network of over 500 branches and deployed an ever-expanding array of digital channels driven by cutting-edge technology.

Finance for all
Zenith Bank is also aware that it is imprudent to think of retail customers without considering the unbanked and underbanked. Nigeria has made tangible progress in driving financial inclusion. Nevertheless, the percentage of adults with formal financial services only stands at 65 percent, according to EFInA, a financial sector deepening organisation. Of this, only 52 percent have a bank account. This falls significantly below the CBN target of 95 percent. To integrate the 28.8 million Nigerians excluded from the formal banking system, Zenith Bank has deployed extensive agency banking services. Currently, the bank boasts over 94,000 agents spread across 36 states and 774 local government areas. This vast reach ensures that the bank has a touchpoint in every location.

Physical touchpoints characterised by human interactions remain a fundamental aspect of banking today and even into the future. However, digitalisation has brought about inevitable disruptions. Zenith Bank was the first to acknowledge the transformative power of digitalisation in the Nigerian market. This explains why technology remains one of the bank’s major pillars, alongside ‘people’ and ‘service.’

For Zenith Bank, investing in information and communication technology (ICT) infrastructure to create innovative products and solutions has been essential. Becoming a trailblazer in digital banking has been central to transforming customer experiences and building a solid brand. The bank leverages different channels, including Mobile App, Unstructured Supplementary Service Data (USSD), WhatsApp (ZIVA – Zenith Intelligent Virtual Assistant), internet banking, automated teller machines, and points of sale. Throughout its operations, the bank continually re-engineers its digital platforms to effectively meet the needs of its numerous customers in terms of ease of use, safety, and convenience, thereby making transactions more seamless.

Today, the bank is reaping the benefits of its ICT investments. Digital onboarding, robotics, and enhanced cybersecurity measures have played key roles in facilitating growth in new accounts from 1.2 million in 2018 to the current 36.4 million. Apart from facilitating increased customer acquisition and loyalty, the bank is respected as an industry leader in customer experience. Internally, processes are characterised by speed and efficiency. The bank’s uninterrupted operation during the Covid-19 lockdowns is a testament to its prevailing digital culture.

Driving digital
Embracing and embedding an unrivalled digital culture means that Zenith Bank is always ahead of its peers in terms of innovation. In an industry with about 30 banks, Zenith Bank has demonstrated a strong track record of versatility in launching new products to cater to an ever-evolving market. Z-Woman, a product specifically targeted at women-led businesses across all sectors, is a clear example. This unique loan product offers the most competitive interest rates in the market and is available to businesses that are majority-owned by women. Through this product, Zenith Bank has extended about NGN50bn ($43.5m) in loans to five million Z-Woman customers. Tabul is another innovative solution designed to transform the customer experience at restaurants with simplified ordering and payment processing.

Dr. Adaora Umeoji, Group Managing Director/CEO, Zenith Bank

While Zenith Bank is responsive to changing market needs and ready to innovate, it has not lost focus on two other key market segments – small and medium enterprises (SMEs) and corporates. SMEs, in particular, are critical. Data shows that in Nigeria, there are over 36.9 million SMEs, constituting approximately 97 percent of businesses and contributing 48 percent of the GDP. Despite their large numbers and importance to the economy, particularly in terms of job creation, SMEs have not received the desired attention. Studies show that approximately 80 percent of SMEs in Nigeria face significant challenges that hinder their survival and progress. Limited access to capital and poor business practices have been identified as key causes of mortality before reaching their fifth anniversary.

Zenith Bank recognises the importance of SMEs and their significant untapped growth potential. For this reason, the bank has been at the forefront of providing them with the necessary support. This includes bespoke offerings, access to loans, and sector-based training. A standout product specifically designed for the needs of SMEs is SME-Grow My Business.

Zenith Bank believes in shared growth with SMEs. The bank has built partnerships that enable it to provide low-interest rate loans to SMEs. These partnerships also help build capacity and deepen knowledge. A case in point is the bank’s partnership with Google, which helps expose SMEs to the digital world via free Google listings. It also helps improve their management capabilities through quarterly capacity-building training.

Restoring confidence
To restore full confidence in the economy, reforms are expedient. Policies are required to enhance forex inflows by diversifying and promoting non-oil exports. This should run concurrently with efforts to revitalise crude and refined oil production. More importantly, addressing systemic challenges and improving governance is imperative for fostering long-term stability and sustainable prosperity. By taking bold and decisive actions, Nigeria can navigate through turbulent economic times and pave the way for a brighter future.

As Nigeria’s leading bank, Zenith Bank aims to be the heartbeat of the country’s long-term sustainable development. By tradition, the bank has been a pioneer in sustainability since beginning its journey a decade and a half ago. Zenith Bank continues to show leadership in addressing society’s challenges in line with the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement. In line with these global pacts, operations and investment decisions are anchored on environmental, social, and governance (ESG) values.

The bank has been a pioneer in sustainability since beginning its journey a decade and a half ago

Last year, about 96 percent of total credit transactions valued at over $22.6bn were screened and assessed for environmental and social risks. By the end of next year, the bank envisages covering up to 100 percent of its credit transactions. Apart from sustainable-linked lending, the bank is also proactive in delivering positive impacts in the communities where it operates. Total social investments that stood at NGN5.673bn ($4.9m) last year speak to this commitment. The amount represented an increase of 240 percent from the previous year.

For Zenith Bank, becoming an acclaimed, responsible corporate entity is closely intertwined with a strong governance culture. Accountability and ethical conduct are cardinal principles of the bank. Corporate governance also extends to fostering a gender-inclusive environment. The bank stands tall among the few that have achieved gender inclusivity in its workforce. The bank’s total active force stood at 10,014 as of December 2023, of which 5,628 (56.2 percent) were female, while 4,386 (43.8 percent) were male.

Failsafe finance
Strong governance is the hallmark of Zenith Bank, which is deeply rooted in all its operations. It sets the tone for risk management and building safe systems. Evidently, the Nigerian banking industry remains vulnerable to infrastructure deficit. Early this year, banking operations were among many that were impacted by a widespread broadband internet connectivity disruption caused by damage to an undersea submarine cable. Services on electronic and digital platforms were the worst hit.

However, this cut had little to no negative impact on Zenith Bank’s services. This was because the bank has invested in robust systems and established strategic partnerships with leading internet service providers who helped reroute traffic via alternative internet circuits. This ensured that services remained available even at the peak of the disruption.

Retrospectively, the cable cut was a red alert reinforcing the bank’s approach to investing in reliable and scalable IT infrastructure that can handle a high volume of transactions and withstand technological failures. A clear example is the ongoing IT overhaul programme dubbed ‘Project Tiger,’ designed to deepen the overall digital payments suite and offerings, creating multiple channels for digital service delivery.

Zenith Bank has made risk management the bedrock of its operations. A culture of risk awareness permeates the entire organisation, underpinned by impeccable leadership and strong governance structures. This has resulted in comprehensive risk management mechanisms. These include a risk appetite statement that serves as the cornerstone tool to align overall corporate strategy, capital allocation, and risk. Part of the tool’s watchlist includes the nature of the threat, controls/mitigants, residual impact, and early warning mechanisms for each risk. Ultimately, the bank deploys a hybrid and holistic approach to protect the safety of customers’ assets and the integrity of its systems.

As a responsible corporate citizen, Zenith Bank remains committed to improving the social, economic, and environmental well-being of its stakeholders. This commitment is demonstrated through an elaborate corporate social responsibility strategy focused predominantly on healthcare, education, skill development, and other initiatives with maximum positive impacts.

A sustainable multi-generational approach to banking

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After the Covid-19 pandemic health emergency, the global balance has been deeply marked by the outbreak of conflicts in Ukraine and the Middle East and rising tensions between China and Taiwan. All this has made the overall scenario more precarious, opening a period of geopolitical instability and uncertainty. It has been referred to – several times – as a ‘polycrisis.’

Today, in order to survive global competition, radical change programmes must be implemented by adopting strategies that ensure, on the one hand, effective economies of scale to increase productivity and improve the economic performance and, on the other, a real positive impact on communities while at the same time fostering a structured energy transition.

We are experiencing a phase where significant phenomena influence our sector. In a similar scenario, knowing how to adapt quickly to change and to understand the new needs rapidly and effectively is fundamental in order to offer ‘added value’ to the customer. Here is an example (but we could make many others). We think of the accelerative effect that artificial intelligence has had and how it will continue to shake up many fields across the most varied sectors, obviously including the financial industry. This means changing production and distribution processes. This means disrupting business models that have worked so far but which risk becoming inefficient if they do not exploit new technologies, processing in real time huge amounts of data to generate useful insights to customise client needs, working deeply on people’s reskilling. It is certainly a complex scenario but at the same time intellectually very stimulating.

Within BNP Paribas, the ‘technology’ component is one of the three pillars of our business plan, together with ‘growth’ and ‘sustainability.’
And with reference to artificial intelligence, today we already have in use more than 700 use cases for applying artificial intelligence in the BNP Paribas group in various departments of the company. The main challenges in our industry are: mindset, people, skills and technology. We firmly believe that to make the difference it is necessary to invest in the continuous training and excellence of our bankers and our team of specialists. In addition to this training activity certified by the best Italian and foreign universities, it is necessary to invest in generational turnover through the inclusion of young collaborators alongside expert colleagues with greater skills.

At least four different generations of professionals operate in the private banking and wealth management industry

This allows new expertise and new skills to proliferate throughout the company, which is indispensable for easier conversations with the new generations (new generations that will also be our new customers in the very near future). The ability to observe and understand the evolving contexts within our industry is a necessary requirement to effectively manage the assets of our customers, especially in a complex and dynamic world that changes rapidly. The role of our bankers on the territory is crucial.

The bankers of BNL BNP Paribas Private Banking & Wealth Management need not only a deep understanding of the financial markets, but specific expertise on our entire range of investment services and solutions. They require above all a strong ability to listen to the needs, requirements and objectives of our customers so that they can develop a real strategic plan that integrates all the components, even the very complex, of the medium and long-term prospects of the company and of the family. This is an activity that requires skills and teamwork and this is why several specialists in various fields and geographies (including credit, real estate, wealth planning, legal and tax advice, asset management, real estate advisory, investment banking and trustee services advice) support our bankers.

We also worked to create specific meetings dedicated to understanding evolving contexts, to interpreting the main elements of changing geopolitical scenarios, to reading emerging trends and characteristics.

It is a series of meetings and debates on the territory that includes, in addition to the presence of our bankers and our clients, the participation of experts in the sector, university teachers and entrepreneurs. Their points of view and their experiences allow us to bring to the debate an effective reading of the main challenges brought about by the new context.

The distinctive elements of our model
More generally, the speed with which new behavioural and social dynamics take root, especially following the pandemic, and the rapid development of new technologies, especially those related to artificial intelligence, require an acceleration in the process of adapting the banking sector.

At BNL BNP Paribas, programmes to ensure this acceleration are structured as part of our Growth Technology Sustainability (GTS) business plan and have already made it possible to take important steps to transform the company, making it leaner, enabling faster decision-making capabilities, and allowing it to stay in step with the times. This activity certainly touches the entire area of technological infrastructure development, allowing for the digitisation of most products and services in order to simplify the customer journey of our clients. It also affects other aspects that aren’t just related to technology.

For example, we recently launched an important ‘social plan’ dedicated to generational turnover, targeting roughly 900 voluntary redundancies with incentives for over 750 hires. This plan therefore provides for a turnover rate in line with others in our industry, with roughly 85 percent of colleagues leaving us being replaced (for the network, the replacement rate will be 100 percent) and enriching the company with new skills and expertise needed to meet the new industry challenges.

The generational transition also concerns the professionals of Private Banking and Wealth Management and is one of the strategic pillars of our department, representing an important factor in our growth plan in Italy. Over the next 10 years this will become a major challenge in the country, since almost one out of every three bankers is over 50. Now, at least four different generations of professionals operate in the Private Banking and Wealth Management industry: from baby boomers to GenZ, through GenX and Millennials.

Our strength, the international reach and leadership position of BNP Paribas in Wealth Management in Europe are excellent drivers to attract the best professionals who work in this field and want to invest in the growth of their skills.

Nurturing talent
Moreover, to be recognised as a point of reference and a place at which to achieve career goals, it is necessary to continue dedicating great energy to create a stimulating and attractive working environment, able to offer a structured career path that guarantees respect for diversity and inclusion, where the work/life balance is a constituent element of a sense of belonging and pride, together with the values of our brand.

The main challenges in our industry are: mindset, people, skills and technology

If I had to summarise the essential elements that distinguish our team, I would certainly say the ability to listen to the needs of our customers, the specialisation of our bankers to build ‘tailor-made solutions’ able to handle even very complex needs, and a clear and shared vision on our development plan in private banking and wealth management in Italy. We surround ourselves with professionals who, coupled with ambition and entrepreneurship, have intellectual curiosity, are able to navigate new ideas and concepts in their field and who are open to new technologies.

The new generation of bankers must have a strong sensitivity to impact investing and sustainability-orientated investment solutions. We believe that our customers have the extraordinary power to have a positive impact on our planet and on communities and our ambition is to support them in their projects to make this happen.

We are part of an international group that provides an integrated and structured platform of transversal and vertical expertise. Globally, BNP Paribas’ Wealth Management combines excellence in wealth management with more than 6,700 professionals and €430bn of assets under management (data as of March 31, 2024).

Our ‘One Bank’ model provides our customers with cutting-edge solutions allowing the wealth management and corporate & investment banking teams to work synergistically to bring ‘the entire bank to the customer’ in a single moment. This mindset to work in a transversal and integrated way is part of the DNA of our group and is based on trust, collaboration and the sharing of knowhow and skills. The ultimate goal remains to bring our customers high value-added proposals, supporting them in all phases of the life cycle and ensuring a very deep level of customisation of financial solutions (including co-investment activities with us on exclusive deals).

The new generation of bankers must be able to move in this ecosystem using expertise, leadership and kindness.

The sustainable journey of Turkish Airlines

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Turkish Airlines’ remarkable journey began in 1933, marked by humble beginnings with five aircraft and fewer than 30 employees. Today, it stands as a global aviation powerhouse, flying to more countries than any other airline worldwide. With an average age of 9.3 years across its fleet of 400 aircraft by the end of 2023, we proudly operate one of the youngest fleets in the industry. Anchored by our flexible structure, dedicated workforce, Istanbul hub, modern fleet, and expansive network, Turkish Airlines continues to soar to new heights in the aviation industry.

2023 marked the 90-year anniversary of Turkish Airlines. As the national flag carrier, we have been growing at a rapid pace throughout, which is undoubtedly the result of successful sustainability management. Turkish Airlines announced its ‘Sustainability Vision’ back in 2009, and we further committed and highlighted our sustainability efforts with the motto ‘Tomorrow On-Board’ in order to ensure that sustainability management processes are managed with a common corporate understanding. ‘Tomorrow On-Board’ represents the path followed, the point reached, and future sustainability practices in light of our ‘Sustainability Vision.’

Commitment to climate action
Turkish Airlines’ sustainability efforts are guided by the United Nations Sustainable Development Goals (UN SDGs), ensuring a focus on environmental stewardship, social responsibility, and economic resilience. With our agility and sensitivity in an ever-evolving environment shaped by regulatory changes and emerging global and sectoral trends, the sustainability agenda and targets are constantly evaluated and developed to stay ahead of the curve.

Sustainability is not a one-time goal – it is a journey of continuous improvement, collaboration, and collective impact

At Turkish Airlines, sustainability is not a one-time goal – it is a journey of continuous improvement, collaboration, and collective impact. With Turkey’s ratification of the Paris Agreement and its commitment to net zero carbon emissions by 2053, we have reviewed our strategies, also in line with global requirements and stakeholders’ expectations. Demonstrating our support for the global fight against climate change, we have set our target to become a Carbon Neutral Airline by 2050, and we are determined in our pursuit of a more sustainable future for aviation. This long-term emission reduction target has taken its place as the cornerstone of Turkish Airlines’ growth strategy, involving a multifaceted approach that covers fleet modernisation, the continued use of sustainable aviation fuel, increasing collaborations on this issue, sourcing energy from renewable sources, and reducing and offsetting emissions.

Sustainable aviation practices
Turkish Airlines carries out its operations by adopting a comprehensive sustainability strategy aimed at reducing carbon emissions and minimising environmental impacts. Fuel efficiency studies focusing on reducing emissions are at the core of this strategy. We improve our fleet by investing in fuel-efficient aircraft, engine upgrades and utilising the latest technology. Since 2008, more than 100 operational optimisation projects and aircraft configuration projects have been successfully implemented to reduce the carbon footprint. In 2023 alone, these efforts saved 75,148 tons of fuel and prevented 236,751 tons of carbon emissions from being released into the atmosphere. The total fuel savings achieved since 2008 amount to 748,496 tons, with prevented carbon emissions reaching 2,357,764 tons.

Recognising the key role of sustainable aviation fuel (SAF) in reducing emissions, we have integrated SAF into our operations and carried out our first flight using aviation fuel obtained from sustainable sources in February 2022. Since then, use of SAF has been expanded to additional routes and frequencies.

In addition to using SAF, we are seeking collaborations to increase the production and use of SAF, which is currently produced in limited volumes globally. By signing the Global SAF Declaration, which signifies a joint commitment by stakeholders in the aviation, space, and fuel sectors to decarbonise aviation, we have reaffirmed our commitment to fighting climate change. In 2023, together with Boeing and Istanbul Technical University, we established Turkey’s first sustainable aviation platform and became a founding member of this initiative.

Moreover, we provide travellers with the opportunity to participate in the fight against climate change through its CO2mission Programme. This programme offers a platform where passengers can easily and practically offset their flight-related emissions. The projects, available in three different portfolios for passengers’ preferences, consist of globally certified, carbon credit-generating climate change combat and social development projects that serve nine separate SDGs. Within the scope of our CO2 mission, emissions resulting from all duty flights of employees are balanced by Turkish Airlines.

Beyond aircraft operations, we have introduced sustainable practices in passenger services, such as adopting digital boarding passes and providing digital reading materials to reduce paper consumption. These initiatives, coupled with the use of biodegradable packaging and eco-friendly amenities onboard, underscore our commitment to sustainability. Additionally, investments in renewable energy sources and collaborations with stakeholders highlight our holistic approach to sustainability. By harnessing the power of the sun, we aim to further reduce our carbon footprint and promote sustainable energy practices.

Turkish Airlines remains steadfast in its commitment to sustainable growth, innovation, and stakeholder value creation

In 2023, we participated in the Carbon Disclosure Project (CDP) Climate Change Programme, the world’s most respected reporting platform for climate change and environmental degradation. We achieved an ‘A-’ score in CDP evaluations, which is above the average of the air transportation industry and in the leadership band. We have been continuously increasing our score since joining the CDP. At the beginning of 2023, we became a supporting member of the Task Force on Climate-related Financial Disclosures (TCFD) and reinforced our support for the SDGs. Aware of the importance of TCFD recommendations in increasing transparency regarding climate-related risks and opportunities, we aim to publish our Climate Transition Plan in 2024.

Analysing the current situation in the industry, we participated again in the performance evaluations of national and international indices and sustainability rating agencies, meeting stakeholder expectations by providing a transparent communication network with relevant parties. We aim to increase performance by ensuring continued participation with these indices and rating agencies, which include: DJSI, FTSE4Good, MSCI, EcoVadis, Sustainalytics, TPI, and Borsa Istanbul Sustainability Index. The evaluations made by the world’s leading rating agencies and the scores obtained from all ESG performance evaluations of 2023, both on a company basis and on an industry average basis, increased compared to the scores in 2022. As a result of the evaluations made by Ecovadis, Turkish Airlines was deemed worthy of an award in the ‘Silver’ category in 2023.

Achieving competitive success
In navigating the complex interplay of market dynamics, technological advancements, and regulatory landscapes, Turkish Airlines remains steadfast in its commitment to sustainable growth, innovation, and stakeholder value creation. As we embark on this journey towards a more sustainable future, we do so with the conviction that our actions today will shape the aviation landscape of tomorrow, ensuring that Turkish Airlines remains a beacon of excellence, resilience, and foresight in the years to come.

Turkish Airlines has adeptly responded to recent market shifts, aiming to bolster its position as a leading global airline. Despite challenges like geopolitical tensions and fuel price hikes, we maintained a focus on our key values. By effectively managing cash and expenses, the airline navigated through turbulent times and emerged with robust financials, outperforming peers in the European network carrier segment.

Turkish Airlines’ wide destination network and operational flexibility have been instrumental in setting us apart from the competition. Swift adaptation to changing conditions has enabled us to maintain leadership in daily flight operations, while our air cargo brand, Turkish Cargo, has risen to become one of the top global air cargo carriers through strategic investments and expansions. Strategic investments in fuel-efficient aircraft and subsidiary companies are key to maintaining a competitive edge.

In 2024, we seek to solidify our position through operational and financial success despite pandemic-related challenges, laying the groundwork for future growth. With clear targets set for passenger revenues, fleet expansion, and international market reach, we are poised for accelerated expansion, supported by strategic investments in fuel-efficient aircraft and subsidiary companies. In an increasingly competitive landscape, we prioritise understanding customer demands, cost control, and rapid adaptation to market changes. With a clear vision outlined for the next decade, we planned out strategic goals focusing on passenger experience, digitalisation, and sustainability. Looking beyond 2033, we aim to double aircraft and passenger numbers, targeting revenues exceeding $50bn, while also demonstrating a commitment to social responsibility through various initiatives.

Leveraging our extensive flight network and modern fleet, we aim to emerge as a global airline group, delivering value to stakeholders and contributing to sustainable development goals. Our journey towards sustainable excellence exemplifies our commitment to environmental stewardship, innovation, and leadership in the aviation industry. Through strategic initiatives and partnerships, we are setting new standards for environmentally conscious aviation operations, aiming to shape a sustainable future for air travel.

A mainstay of the Dominican economy

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The international expansion of Banco de Reservas became a reality with the opening of a representative office in Madrid in January 2023, which was consolidated with the installation of two more offices, located in New York and Miami, in the last four months of that year. With the implementation of this initiative, the financial institution placed itself in a strategic position to attract better investment and business opportunities to the Dominican Republic. With capital produced by Dominicans living abroad and their offspring, in addition to boosting the country’s international trade, the opening of these branches has contributed to the economic, social, and cultural development of its communities.

Highlighting the impact of the bank’s international expansion, these new representative offices have received a large number of requests for services from the Dominican diaspora in those cities. The task of the financial institution is to manage and expedite these requests for banking procedures that are finally completed in the Dominican Republic.

In Miami, for example, the office of the Junta Central Electoral Dominicana (Dominican Central Electoral Board) has reported an increase in the number of Dominicans requesting credentials and national identity documents. The increase is related to the interest in acquiring personal or corporate banking products or services with Banreservas. The origin of 60 percent of imports to the Dominican Republic comes from the US, especially from Florida, and particularly from Miami, where Banreservas’ representative office maintains the focus on businesses with responsible companies, promoting direct transactions through Banreservas.

An attractive portfolio
With these actions, Banreservas has positioned itself in other markets to offer a broad and attractive portfolio of international solutions for its clients, such as mortgage programmes for the acquisition of homes in their country. To date, these offices have served more than 17,000 customers with requests for information on products and services, data update procedures, among others. Likewise, more than 5,000 new clients have been enrolled, more than 7,000 savings accounts have been opened, and 307 mortgage loan applications have been processed for more than DOP1.4bn ($24.3m).

Innovations, both for internal improvements and value propositions to customers, originate from digital thinking

It is evident that the products and services are related to the bank’s goal of reaching out to Dominicans and satisfying their banking needs, regardless of where in the world they reside. In March 2024, Banreservas held its first real estate fair in New York (Washington Heights) and Massachusetts (Lawrence), which generated much interest from Dominicans residing in the US to acquire homes in the Dominican Republic, managing a value of more than DOP8.5bn ($146.6m), equivalent to some 1,800 properties. Some 4,000 people were in attendance at these events, of which 3,000 went to New York, and the rest to Lawrence.

In addition to the business derived from this internationalisation, Banreservas has launched two apps to facilitate the sending of remittances from Europe and the US, as well as the constant promotion of foreign investment, especially with the recent celebration of its first mortgage fair in the US.

Importance of remittances
Remittances have a great impact on the Dominican economy. It was for this reason that Banreservas launched its remittances app in Europe in January of this year, and two months later in the US. This allows hundreds of thousands of people to send remittances to their families and relatives in their country of origin.

At the end of the first quarter of this year, data showed an increase in the bank’s share of the domestic remittance market. Already in 2023, it exceeded 38.54 percent of participation among multiple banks and held 8.91 percent of the total market.

Between 2020 and the end of February 2024, more than 8.4 million remittance transactions were received through Banreservas and its extensive network of allies, representing $2.568bn.

These achievements can be attributed to the fact that Dominicans living abroad – based on the product of their work and sacrifice – contribute to the development and balance of the Dominican economy and the welfare of their families through their remittances.

Digitalisation strategy
Banreservas is immersed in achieving one of its main strategic focuses, which is its digital transformation, creating the basis for a transversal adoption in the organisation, and generating a revolution in the organisational culture. This is a process to manage the paradigm shifts required by this type of challenge.

The bank is focused on providing people – the central character of the success of this change – with the necessary tools to shape their mindset (design thinking, digital first). To achieve this, it implements new ways of working (agile methodologies) and creates collaborative spaces so that these new formats can be exercised and refined (innovation lab, immersive innovation programmes).

Undoubtedly this organisational change is accompanied by technological implementations that allow us to support, scale the digital transformation and increase our ability to adapt, such as: robotisation, big data, cloud, DevSecOps and artificial intelligence. The bank has invested great efforts in the definition of a robust architecture, and in the modernisation of the application park, to be able to adopt emerging technologies and provide work teams with an ecosystem that enables them to implement disruptive ideas in a short time.

We have teams dedicated to the digitalisation of internal processes

With this strategy, innovations, both for internal improvements and value propositions to customers, originate from digital thinking, with an interactive roadmap that enables recurring adjustments to achieve better results and add increased value. We have teams dedicated to the digitalisation of internal processes, focused on generating operational efficiencies and improving productivity.

All this dynamism requires work teams focused on expanding the offer of 100 percent digital products and services of the largest Dominican bank in assets, which results in the constant improvement of the user experience, in all non-face-to-face channels, such as: mobile app, web, chatbot and ATMs, among others. This combination of operational efficiency and customer value creation has allowed us to evolve from a process automation strategy to a strategic innovation model.

Boosting speed
Banreservas is interested in boosting the speed of digital transformation to continue impacting financial transactions. As part of that process, since August 2020, the bank has promoted digital development, seeking agile, secure, and user-friendly services that manage self-service, and of course, offer a memorable experience for customers.

This process involves concrete initiatives such as the implementation of:
Dual branches: They provide customers with a unique service experience, combining the best of face-to-face and digital, so they can conduct their banking transactions at the speed they need. Open in Santo Domingo (2021) and Punta Cana (2023).

Banreservas MIO electronic payment account: 100 percent digital account that is requested only with the customer’s ID card from a cell phone, and through which it is possible to make transactions through a mobile application, streamlining payment channels.

Banreservas virtual assistant, Alma: Digital customer service channel, to make service inquiries, complaints, and product requests in a self-assisted manner, through automated conversations via WhatsApp.

Digital token: Digital authentication mechanism, using a code generator to authenticate transactions easily and securely.
Banreservas digital account: Savings account in Dominican pesos that can be easily requested from the Banreservas app without the need to go to a commercial office, supporting banking penetration.

Pre-approved credit card by app: Customer-centric and digital service that generates credit card pre-approvals for customers through the Banreservas app.
Sponsored data: Banreservas is the only Dominican Bank that includes free data consumption, thus promoting financial inclusion and facilitating the insertion into the financial system of all Dominicans.

Internationalisation, the development of transformational projects aimed at digitalisation, and the support to the main Dominican productive sectors, keep the oldest bank in the country as the leader of multiple banking in the Dominican Republic. Banreservas remains the main support of the economy and of foreign investments currently generated for the Caribbean nation.

Harnessing the power of AI in asset management

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AI and ML have the potential to modernise and transform the fund management industry, enabling, among other things, the processing and analysis of vast amounts of stock data and counteracting human bias. UOBAM, a Singapore-headquartered company with around $23bn of assets under management, saw the potential in these techniques at a relatively early stage and has built up five years of experience in this area. The decision to go down this path and to invest in the people and systems needed to make the vision a reality was a bold one, but the strategy has started to reap rewards. Notably, two of the company’s flagship funds that use AI and ML tools more than doubled returns versus their respective benchmarks in 2023. World Finance spoke with fund manager Paul Ho, Head of Investment Technology at UOB Asset Management, about the company’s development and adoption of AI and ML, its experiences so far, and how the application of these tools might be extended in future.

UOBAM began exploring AI and ML in 2019, before many in the Asian asset management industry were doing so. What thought processes were driving this move?
UOBAM has for some years shown a commitment to technology-driven customer services and business initiatives. In 2019, for example, the firm started development work on UOBAM Invest for Corporates and UOBAM Invest for Individuals. These are highly innovative robo-advisory platforms designed to offer new and easier ways to invest digitally. The platforms were subsequently launched in 2020 and 2021, respectively. Around the same time, UOBAM watched with much interest when big data, AI and ML started to be discussed to supplement human analyses. Consequently, a project was initiated within the company to test whether such tools could be used to help generate above-benchmark portfolio returns in a reliable way. The tests proved positive, and as a result we started to use them formally within our asset management process in 2020.

What were the key challenges associated with adopting an AI model, for example, in recruiting the right people?
Innovation naturally means change, so the key challenge to adopting any form of innovation is the ability to institute a shared objective of future-readiness and a culture of experimentation across the entire organisation. At UOBAM, one way this was achieved was to implement the T-shaped team structure as recommended by the CFA Institute.

This structure is based on the understanding that investment teams and technology teams can find it difficult to work together, given their different skill sets. By establishing an Invest Tech team that comprised both functions, UOBAM has been able to align all stakeholders and bridge the gap between traditional and modern approaches to investment management.

And what were the main risks that you perceived?
The risk is of course that the AI model and AI-Augmentation process does not deliver the desired results. But part of experimentation is the acceptance of failure and uncertainties. And the key to overcoming such risks is patience and rigour. After going live with our framework, we waited for three years to establish a consistent track record before marketing our AI capabilities. During that time, we closely tracked our performance and made refinements along the way.

How do funds managed by UOBAM benefit from application of the AI-ML model?
UOBAM’s AI-ML model helps to enhance our Asia Equity portfolio returns in four key ways: coverage, predictability, neutrality and scalability. There are over 25,000 stocks listed in Asia Pacific, and it is impossible for a team of analysts, however diligent, to adequately research even a small percentage of them. UOBAM uses AI-ML tools to ingest billions of data points and analyse thousands of variables related to the Asia equities universe. In this way, patterns are detected that can help predict a stock’s return potential.

The model also helps to offer an alternative to preconceived strategies such as style, geographic or technical investing. By offering an unbiased perspective, UOBAM’s model helps to prevent unfamiliar market events from being disregarded or overlooked. Finally, UOBAM’s AI-ML model can be adapted to fulfil different investment tasks. The reliance on empirical data means that it is possible to improve not just stock selection using these techniques, but also asset allocation, hedging and risk management.

How do you successfully combine and balance the input of people and machines when creating an investment portfolio?
UOBAM’s AI-Augmentation framework is different from other asset managers; it combines human expertise and AI-generated insights in a disciplined and structured way. All stock picks generated by either the manager or the machine are scored according to their ability to outperform the benchmark. Risk constraints are included to ensure that portfolio risks are managed at all times. Portfolio performance is then closely tracked to enable models to be refined as part of a human-and-machine learning process.

Two of UOBAM’s flagship funds – the United Asia Fund and the United Greater China Fund – use AI and ML tools to enhance investment performance. How have these funds performed in recent years and to what extent can their performance be attributed to AI?
AI-Augmentation was introduced into the Asia Equities fund management process in the third quarter of 2020. Both the United Asia Fund and the United Greater China Fund slightly underperformed their respective benchmarks in 2022, but strongly outperformed in 2021, 2023 and in the current year to date.

In both cases, our investigations found that the weaker 2022 performance was due to inconsistencies between the model and manager input. These inconsistencies have since been corrected, leading to stellar performances in 2023 and so far in 2024. Both funds are currently in the top quartile versus peers on a year-to-date, one-year and three-year basis, and are rated five stars by Morningstar. The United Greater China Fund won the Refinitiv Lipper award for Best Fund over Three Years in the Equity Greater China category in 2023.

Risk constraints are included to ensure that portfolio risks are managed at all times

What measures have you put in place to ensure strong governance of your AI-Augmentation framework?
At UOBAM, the Data and Digitalisation team looks at implementing group-wide AI and Data Analytics (AIDA) procedures. These are to be adopted by all AIDA project teams in the firm, including those from the investment technology teams. These procedures prescribe the necessary steps, gates and related documentation across all stages of the machine learning model lifecycle that the project team needs to adopt. This includes having an independent peer review step during the model development stage. The governance of our AI-Augmentation framework is undertaken by a region-wide Investment Technology Committee. This committee oversees the launch, development and ongoing performance of all AI-Augmentation funds.

What external factors, such as an evolving regulatory environment, do you need to be aware of when employing AI-ML tools?
As we operate in the regulated financial industry and embed AI in our products and processes, we need to be aware of developments in this fast-evolving technology and related tools. We closely monitor updates from our regulator, the Monetary Authority of Singapore, and adhere to its Fairness, Ethics, Accountability and Transparency (FEAT) principles in the responsible use of AIDA.

What potential do you see for extending the AI-Augmentation framework into other areas of investment management going forward?
We have started to apply the framework to asset allocation decision-making. The United Singapore Dynamic Income Fund (USDIF), launched late last year, uses AI techniques to allocate across multiple Singapore asset classes including real estate, fixed income and equities. Similar techniques can eventually help with regional and sector-based allocation decisions. AI-Augmentation is also being tested for applicability in our Asia Fixed Income portfolios.

UOBAM has been working with Google on advanced hedging models. What have you achieved from this collaboration to date?
Last year, we collaborated with Google on a proof of concept to investigate how more advanced algorithms could be used to improve hedging decisions. The results were encouraging, and we are planning further collaborations with Google and other technology firms to continue to build out UOBAM’s AI-Augmentation capabilities. Our AI journey is really still in its early days.