Financing the Transition: Can We Still Make the Shift? | Panel x ChangeNOW2024

Summary

Le script vidéo aborde la transformation systémique nécessaire pour la durabilité, impliquant diverses communautés et parties prenantes. Le rôle de la responsabilité d'entreprise et de la réglementation est discuté, ainsi que la manière dont les banques, comme BNP Paribas, modifient leurs modèles de financement pour soutenir les énergies renouvelables et réduire l'impact environnemental. L'importance de l'engagement communautaire et des partenariats public-privé est soulignée pour les projets d'infrastructure climatique, en particulier dans les communautés marginalisées aux États-Unis. La discussion couvre également les défis de la mesure de l'impact social et la nécessité de réévaluation des risques par les institutions financières.

Takeaways

• 🏦 Le rôle de BNP Paribas dans la transition écologique est coordonné par le responsable du dialogue avec les entreprises, qui supervise les efforts du groupe pour soutenir les transitions environnementale et sociale.
• 🌐 BNP Paribas, en tant que plus grand banque en Europe, est confrontée à un défi majeur de transition vers des pratiques plus durables, en particulier dans le secteur de l'énergie.
• 🚀 Le groupe a entrepris de remplacer la financement des énergies fossiles par celui des énergies renouvelables, atteignant déjà 65% de crédits pour l'énergie à faible carbone dans le portefeuille existant.
• 📉 En 2023, BNP Paribas a pratiquement cessé de prêter de l'argent au secteur pétrolier et gazier et n'a plus structuré d'émissions d'obligations pour ce secteur, montrant un engagement fort dans la transition énergétique.
• 💼 Le groupe est également leader mondial pour les obligations vertes et un acteur clé dans le financement des énergies renouvelables, démontrant un changement de modèle dans ses investissements.
• 🔄 Le système financier, selon BNP Paribas, peut influencer la consommation et le consumérisme, par exemple en proposant des solutions de location avec recyclage pour les ordinateurs.
• 📈 L'introduction de produits tels que les obligations d'impact social et de développement peut séparer la rentabilité et le retour pour l'investisseur, en se concentrant sur l'impact social plutôt que sur le rendement financier.
• 🌱 L'organisation Dream.org est impliquée dans le financement de projets d'infrastructure climatique dans les communautés historiquement marginalisées aux États-Unis, en utilisant des partenariats public-privé.
• 🏗️ Dream.org utilise des fonds gouvernementaux, tels que les crédits d'impôt, pour catalyser des investissements du secteur privé dans des projets d'infrastructure durables qui répondent aux besoins des communautés.
• 🤝 L'engagement des communautés et la compréhension de leurs besoins sont essentiels pour le succès des projets de transition énergétique, nécessitant une communication transparente et la prise en compte de la culture et des préoccupations locales.
• 📊 KPMG travaille sur la création de modèles complexes pour évaluer la création de valeur à la fois environnementale et sociale, en mettant l'accent sur la nécessité d'un retour sur investissement financier pour convaincre les investisseurs de l'importance de la transition.

Q & A

Quel est le rôle d'Anan en tant que coordinateur au sein de BNP Paribas ?

Anan est le chef du dialogue avec les entreprises chez BNP Paribas. Il est chargé de coordonner les efforts de la banque pour soutenir les transitions sociales et environnementales, en s'assurant que les activités de la banque sont alignées avec les objectifs de durabilité.

Comment BNP Paribas a-t-il changé sa stratégie de financement dans le secteur de l'énergie ?

BNP Paribas a entrepris de remplacer la financement des énergies fossiles par celui des énergies renouvelables. Ils ont déjà atteint 65% de financement pour l'énergie à faible carbone et ont arrêté de prêter de nouveaux crédits au secteur pétrolier et gazier depuis février 2023.

En quoi consiste le rôle de Jackie Ulloa Holiday au sein de Dream.org ?

Jackie Ulloa Holiday est la directrice nationale des investissements climatiques chez Dream.org. Elle est responsable des projets d'infrastructure climatique dans les communautés historiquement marginalisées aux États-Unis, utilisant des partenariats public-privé pour financer ces projets.

Quels sont les défis auxquels Dream.org fait face lorsqu'il s'agit de travailler avec des communautés marginalisées ?

Dream.org doit surmonter les défis liés à la méfiance des communautés envers les grandes banques et à la compréhension des implications financières et de santé des projets d'énergie renouvelable. Ils travaillent sur la traduction culturelle et la compréhension des besoins des communautés.

Comment Dream.org utilise-t-il les fonds gouvernementaux pour financer les projets d'infrastructure climatique ?

Dream.org utilise les fonds provenant des projets de loi climatiques tels que la Loi de réduction de l'inflation et la Loi d'infrastructure bipartite, en les utilisant comme des crédits d'impôt pour catalyser des investissements du secteur privé.

Quel est le rôle de Matthew Valish de KPMG dans l'ESG et la création de valeur ?

Matthew Valish travaille avec les clients de KPMG pour fournir des services d'audit et de conseil sur les questions liées à l'ESG. Il aide les entreprises à comprendre comment la réglementation et les indicateurs ESG peuvent créer de la valeur et influencer la cotation des entreprises.

Comment la réglementation actuelle influence-t-elle la transition vers des modèles d'affaires ESG ?

La réglementation actuelle, en particulier la directive CSRD, impose aux entreprises de fournir des informations ESG transparentes, ce qui permettra de comparer et d'évaluer les performances des entreprises dans leurs secteurs respectifs.

Quels sont les principaux défis pour les entreprises lorsqu'il s'agit de mesurer l'impact social et environnemental de leurs activités ?

Les entreprises ont du mal à traduire l'impact social et environnemental en termes financiers, car ces impacts sont souvent difficiles à quantifier. KPMG travaille sur des modèles pour mettre des mesures financières à ces impacts.

Comment les entreprises peuvent-elles attirer l'intérêt des investisseurs tout en prenant en compte l'ESG ?

Les entreprises peuvent montrer aux investisseurs qu'il y a un retour financier positif sur l'investissement lié à l'ESG, en montrant comment les pratiques durables peuvent augmenter la valeur de l'entreprise à long terme.

Quel est l'impact de la réglementation sur les entreprises privées et les investisseurs en ce qui concerne l'ESG ?

La réglementation actuelle cible principalement les entreprises publiques, mais elle a un effet de bord sur les entreprises privées et les investisseurs, qui sont encouragés à adopter des pratiques ESG pour maintenir leur compétitivité et leur valeur.

Outlines

00:00

🌐 Responsabilité d'entreprise et transition écologique

Le premier paragraphe aborde la nécessité d'un changement systémique impliquant diverses communautés et parties prenantes. L'orateur, Anan, introduit son rôle en tant que responsable de l'engagement des entreprises chez BNP Paribas, où il coordonne les efforts pour soutenir les transitions environnementales et sociales. Il souligne les défis de la banque en tant que plus grand établissement financier en Europe et la nécessité de modifier son modèle de financement, en particulier dans le secteur de l'énergie, passant de l'énergie fossile à l'énergie renouvelable. Il mentionne les progrès réalisés avec 65% des crédits alloués à l'énergie à faible émission de carbone et l'arrêt des nouvelles crédits accordés au secteur pétrolier et gazier à partir de février 2023.

05:04

💼 Rôle de la finance dans la durabilité sociale

Dans le deuxième paragraphe, l'orateur discute du rôle de la finance dans la durabilité, notamment à travers les obligations d'impact social et de développement. Il explique comment BNP Paribas structure des produits financiers qui mesurent l'impact social et récompensent les investisseurs en cas de réalisation d'objectifs sociaux. Ces produits sont encore en phase de prototype mais ont le potentiel de révolutionner la façon dont la finance est vue et utilisée pour le développement social. L'orateur insiste sur l'importance de la formation et de l'engagement de tous les niveaux de la banque pour assurer une transformation réussie vers des pratiques plus durables.

10:07

🏢 Investissements climatiques et communautés marginalisées

Le troisième paragraphe présente Jackie, la directrice nationale des investissements climatiques chez Dream.org, qui travaille sur des projets d'infrastructure climatique dans des communautés historiquement marginalisées aux États-Unis. Elle explique comment l'organisation utilise des partenariats public-privé pour financer des projets axés sur les besoins et les souhaits des communautés, en se concentrant sur la réduction de la charge énergétique et l'amélioration de la santé et du développement économique. Elle mentionne également les défis de la sensibilisation et de la compréhension des risques financiers et environnementaux pour ces communautés.

15:08

🏘️ Défis de la transition énergétique dans les communautés marginalisées

Dans le quatrième paragraphe, Jackie discute des obstacles spécifiques aux communautés marginalisées lors de la transition énergétique, notamment le fait que la plupart des habitants de ces communautés sont des locataires et non des propriétaires. Elle souligne l'importance de la participation des communautés, de la compréhension des implications de la santé et de la sécurité liées à l'énergie renouvelable, et de la nécessité d'un engagement financier qui profite à la fois à l'individu et à la communauté. Elle cite des exemples de projets solaires communautaires qui peuvent apporter des revenus supplémentaires aux ménages.

20:08

📊 La réglementation et la création de valeur ESG

Le cinquième paragraphe met en avant Matthew, un membre de KPMG, qui aborde la réglementation et son impact sur la création de valeur ESG (Environnement, Social, Gouvernance). Il explique que, bien que la réglementation puisse sembler complexe, elle a pour objectif de promouvoir la transparence et la comparabilité des entreprises en termes d'impact ESG. Il prédit que l'accès à des informations précises sur les KPIs ESG permettra aux investisseurs de mieux évaluer la valeur des entreprises, pénalisant celles qui ne se sont pas transformées et récompensant celles qui le sont.

25:11

🏦 La transformation du secteur bancaire face au changement climatique

Le sixième paragraphe conclut la discussion en revenant sur le rôle spécifique des banques dans la transition écologique. L'orateur, en tant que représentant de BNP Paribas, insiste sur la différence entre le rôle des investisseurs et celui des banques, soulignant que les banques doivent servir leurs clients tout en les accompagnant dans leur transition. Il mentionne des exemples de pratiques émergentes, comme la proposition de conditions préférentielles pour les prêts immobiliers liés à l'efficacité énergétique, et appelle à une implication des régulateurs et des gouvernements pour soutenir cette transformation.

Keywords

💡Responsabilité d'entreprise

La responsabilité d'entreprise fait référence au rôle et à la manière dont les entreprises assument leurs obligations envers la société, l'environnement et les parties prenantes. Dans le script, cette notion est abordée en termes d'engagement avec les différentes parties prenantes et de la façon dont l'entreprise contribue à la transition vers des pratiques plus durables.

💡Transition écologique

La transition écologique est le passage d'une économie basée sur la consommation de ressources et l'émission de gaz à effet de serre à une économie durable et respectueuse de l'environnement. Le script discute de la nécessité d'une telle transition et des efforts déployés par différentes parties prenantes pour y parvenir, notamment dans le secteur financier.

💡Banque BNP Paribas

BNP Paribas est mentionnée en tant que l'un des plus grands banques en Europe, impliquée dans la transition écologique en changeant son modèle de financement de l'énergie fossile vers l'énergie renouvelable. L'exemple de BNP Paribas illustre le rôle des institutions financières dans le soutien des initiatives durables.

💡Énergie renouvelable

L'énergie renouvelable est une source d'énergie provenant de ressources naturelles inépuisables comme le soleil, le vent, l'eau, etc. Le script met en avant les efforts de BNP Paribas pour accroître le financement des projets d'énergie renouvelable, reflétant un engagement en faveur de la transition énergétique.

💡Engagement des parties prenantes

L'engagement des parties prenantes se réfère à la participation active et la collaboration de différentes communautés et groupes d'intérêt dans la réalisation d'objectifs communs. Dans le contexte du script, cela implique le travail avec les communautés marginalisées, les investisseurs et les régulateurs pour promouvoir la durabilité.

💡Réglementation

La réglementation est mentionnée comme un mécanisme permettant de guider et d'encourager les entreprises à adopter des pratiques durables. Le script discute de l'impact de la réglementation sur la création de valeur et la nécessité de transition pour les entreprises.

💡Impact social

L'impact social se concentre sur les effets des actions des entreprises sur les communautés et les individus. Le script parle de produits tels que les obligations d'impact social, qui visent à mesurer et à améliorer les impacts positifs sur la société.

💡Dream.org

Dream.org est une organisation mentionnée dans le script qui travaille sur des projets d'infrastructure climatique dans les communautés historiquement marginalisées aux États-Unis. L'organisation illustre l'engagement communautaire et la mise en œuvre de projets axés sur le bien-être et le développement économique.

💡Investissement climatique

L'investissement climatique est l'allocation de ressources financières pour soutenir les initiatives visant à atténuer ou à s'adapter aux changements climatiques. Le script aborde le rôle de Dream.org dans l'investissement climatique, en particulier dans les communautés marginalisées.

💡KPMG

KPMG est une firme de services professionnels mentionnée dans le script, qui aide les clients à comprendre et à naviguer dans l'environnement réglementaire et à créer de la valeur à travers les pratiques ESG (environnementales, sociales et de gouvernance).

💡Capacité de financement

La capacité de financement se réfère à l'aptitude d'une entreprise ou d'une organisation à obtenir des fonds pour soutenir ses activités. Dans le script, cela est discuté en relation avec le changement de modèle de financement de BNP Paribas et l'impact sur les secteurs de l'énergie.

Highlights

Systematic change requires engagement from various communities and stakeholders.

BNP Paribas is actively shifting its financing model from fossil fuels to renewable energy.

BNP Paribas has reached 65% of credits for low carbon energy and aims to increase this share.

The bank has ceased new lending to the oil and gas sector since February 2023.

BNP Paribas is a global leader in green bonds and financing renewable energy.

The financial system can influence consumerism and consumption patterns.

BNP Paribas is exploring social impact bonds to separate profitability from social returns.

Dream.org focuses on climate infrastructure projects in historically marginalized communities.

Public and private partnerships are crucial for driving infrastructure projects in marginalized communities.

Regulations play a significant role in driving ESG topics and value creation.

KPMG is helping clients navigate the regulatory environment for ESG integration.

Banks must serve clients while making choices that support the transition to a sustainable economy.

BNP Paribas is training its workforce extensively on sustainability issues.

Community engagement is key to understanding and addressing the needs of marginalized communities.

Cultural translation is essential for effective stakeholder management in community engagement.

Ecosystem orchestration involves bringing different stakeholders together for innovative solutions.

Regulations are complex but can drive value creation and transparency in ESG practices.

KPMG is developing models to quantify the financial impact of social and environmental initiatives.

The transition to a sustainable economy requires the engagement of communities, corporations, and regulators.

Transcripts

so let me start uh building on what enri

said this is a systematic change that

requires different communities different

stakeholders to come in so for the next

sort of 20 minutes or so I'm going to

follow a little bit what's the corporate

responsibility what's how do we engage

with different stakeholders and

communities and then we're going to talk

about the role of regulatory in this

whole uh situation so let me start uh

with Anan first uh so maybe a few

introduction of yourself what do you do

in bmba and what have the bank been

doing in thinking about different roles

Finance should play uh in making the

transition happen yes uh thank you for

inviting me so I'm I'm head of company

engagement at BNP pariba uh and uh uh

more or less I'm here to coordinate all

what the banks makes for the Social and

uh so environmental and uh and social uh

transitions so of course it's a huge

challenge because we are the largest

bank in Europe uh and uh we are the the

first bank for almost all economic

sectors uh for uh

energy

tourism uh

it any any sector we are the we are the

the largest bank except probably for

agriculture uh in uh in in in Europe and

uh yes uh we have to to to change a lot

of things and uh and We Know It uh so we

have been challenged uh over years uh

for our capacity uh to change uh our

model uh of financing the energy sector

uh and all in all uh we found it was a

very interesting and probably a feasible

challenge uh to start with uh because

energy accounts for around 3% of our

activity uh and uh 15 years ago uh our

financing to energy was almost entirely

fossil energy because there was almost

entirely fossil energy so we we took the

the the the challenge uh Within These 3%

of our activity to completely replace uh

financing of fossil energy by uh

renewable energy which is uh what we are

trying to do and honestly we are now

very well on on our way since if you

take the stock of credits which includes

credits that were given a long time ago

uh we are already at

65% of our credits for low carbon energy

but this is the stock and if you want to

make the stock move you have to be to be

much more uh steep uh in in the effort

you do uh uh to uh to move the the flow

and uh basically in

2023 uh we we

were virtually out of the market of

lending new credits to the oil and gas

sector uh and we didn't structure any uh

Bond Bond uh issuance uh for the oil and

gas sector since the 9 of February uh

2023 so it's uh we we we can really say

that we have uh changed our model since

at the same time we are Global leader

for green bonds and uh a clear leader

for financing renewable energy so this

is the first kind of shift we can do

which is channeling uh money uh to

things that we we want to have and not

challenging anymore to things that may

still be uh necessary in the economy as

it is but that we decide not to to to

finance because it it engage the the the

future uh but there are a lot of other

things uh to change uh for example uh we

we really believe that the the financial

uh system can have uh an impact uh on

the way uh we deal uh with consum

consumerism and consumption uh for for

example uh for for years uh we we are an

active player in leasing for computers

and we propose our leing uh with uh uh

Recycling and you cannot Lee a computer

at BNP paral leing without having the

recycling and probably uh we will need

uh to be able uh to uh introduce much

more leing uh in the way uh we make

Goods affordable for people because uh

the the the environmental conditions may

be much more part uh of the of the

contract and of the agreement another

element which was in the previous

presentation is uh how to uh to

separate uh to a certain extent

profitability and uh return for for the

investor let's deal into that this is

this is this is possible and and we do

it at BNP pariba through products that

are called the social impact Bond or the

development impact Bond uh which are uh

uh products uh where uh you

have a public administration which has

seen a problem for example unemployment

then an association that propos

solutions for unemployment in the area

uh and then an investor who is ready to

invest in the

association uh and finally uh a bank

that will help to structure the product

and ensure that we measure the social

impact and if the social impact is good

the administration will make savings and

they will repay the investors with the

savings and uh what the investor will

have to check is not a financial return

but only uh uh

um a social uh return so uh it works but

it works for the moment at the state of

prototype uh we have done several in

France we have done in UK in the US and

we have done uh uh uh

um in a development impact Bond on this

model in Ethiopia uh linked to uh

hygiene of of the women and allowing

women to to to afford

uh monal hygiene I don't know exactly

how to tell it in in English but you you

you see what I mean and uh and it was

very uh it was very uh daring to do that

uh for the moment these are prototypes

but probably in the future they can PVE

the way for new ways of thinking Finance

excellent so so um you

talk different areas of like shifting

out of fossil fuel getting into social

um for finance there there are two there

many but two of the very important

challenges one is the measurement right

so once we get into social impact it's

really difficult measure the second one

is who is taking the lead are you taking

the lead proactively as a bank or are

you responding to the different

investors right so partly through this

process you are risking alienating

certain type of investors and you're

probably on boarding some new type of uh

investment philosophy I'm I'm very

curious picking up on on one of the word

you said you are a coordinator so so

talk us through a little bit the

challenge you go through when you have

to deal with these different challenges

in terms of measurement in terms of

internal Dynamics in terms of getting

engaged with the the investment

investors

so of course some of the of the people

that do the research that create uh

initiatives they are directly in my team

but what we have to do is to create the

movement on on all the bank so that it

needs to have uh correspondence in all

the bank but it needs also to be very

well aligned with the senior management

and the management of all the the

businesses and I must say that the great

coordinator in our company is not me

he's the CEO because he's extremely no

but particularly on uh on uh uh um

climate and biodiversity and and social

issues uh he is very active and all the

people I am part of the executive

committee but all the members of the

executive committee are uh very uh uh

active on this on this topic maybe one

thing we have done which has been very

important is that we have been massively

training uh our people on these topics

we have created a sustainability Academy

that involves everybody uh we are one of

the the the the companies in France

where we have the largest number of

people who did what is called La fresa

the the the climate fresk of course it's

not uh sufficient at all you need to

have true trainings afterward uh we have

already 880,000 people who have been

trained to real climate stuff uh and how

they can how we can really contribute at

BNP pariba and this explains why uh uh

being at the same time a bank and

everybody suspect that we will not meet

the challenge and that it's too

complicated uh to to to play a role

suddenly we are able to to accelerate a

lot in fact we accelerate a lot because

we have been preparing for uh for for

several years so so we need SE

endorsement we need top alignment we

need awareness within the company in

order to move on so I'm going to build

on the the awareness side a little bit

um moving the needles within the

corporation is important now I'm going

to bring in Jackie um but you bring in

the community is actually many a time uh

significantly more difficult so maybe

tell us a little bit about dream door r

about you and and what's the mission and

action for your organization so good

afternoon everyone my name is Jackie ult

holiday and I am the climate Investments

National director at dream.org and in

that role what I'm responsible for are

climate infrastructure projects in

historically marginalized communities in

the US and so what does that mean it

means that we are looking at communities

that traditionally have been

marginalized so that they are Redline

communities in terms of um socioeconomic

demographics they usually have like the

lowest um energy burden communities

communities that were historically next

to like coal and also you know fossil

fuel producing energy and engaging in

conversations with them in terms of

reimagining what their communities look

like and then using both a public and a

private Partnerships to actually drive

infrastructure projects that are

centered on their wants and needs and

also their economic and health

development so what does that look like

in practice as most of you know there's

been a series of climate bills under um

the invest in America agenda under the

Abid Administration including the

inflation reduction act um the

bipartisan infrastructure law so it is

using those funds right many of which

are tax credits um in a catalytic way to

drive investment from the private sector

so what I call myself also as a

coordinator in terms of having

conversations with the communities about

reimagining what they want having

conversations with uh financial

institutions both like the big Banks but

also the Comm community development

financial institutions which do have

some histories in some of these

communities and it's also bringing

private equity and Angel Investors all

together to have conversations about

like what does it look like what does

measurement look like um and how do we

do it in a way that empowers community

and also builds Community wealth because

we talk a lot about what the projects

will actually do reduce energy burden we

talk about all the um the and and a lot

of work what I do is is in the renewable

energy space right um and bringing

communities up to par what are they

interested in what are they not um when

you get to like nuclear and hydrogen it

becomes like more problematic solar and

wind um are a little bit more digestible

for some communities um so having real

conversations about like what that look

like and what models do we need to

develop to ensure that it is a win-win

and again um a lot of it is examining

what community ownership over those

product um products look like but then

also having real conversations in terms

of with the with the big Banks about

what products need to be developed and

how they need to engage in communities

right reassessing what risk I always say

probably three fours of my life is

talking about like Risk and what risk

means in a historically marginalized

Community but also um what some

communities when I say risk I mean risk

from the side of a a private financial

institution but also from communities

who have a very um distrustful

relationship with both big big Banks but

also in taking on debt right like I mean

I grew up thinking debt was always a bad

thing and now I stack it all the time

you don't want to leave with a burden

yes yes exactly so really have having

those real transparent conversations and

doing it rapidly because if you don't

know November an an election is coming

right um and and the outcome of those

elections particularly in the United

States um could change the trajectory so

part of my goal in 2024 is getting as

many shovel ready projects in

marginalized communities that um

regardless of what happens in January

which is when our inauguration will be

um for the next president it can't the

the federal funds and federal tax

credits can't be crawled back it would

involv a lot of litigation because we

like to litigate in the US excellent so

um we'll follow up on that a little bit

and and there's actually a lot of

movement in this right for example there

is a US startup called block power done

by uh Donal B so um he actually talk

about so this is a power solution trying

to Electrify homes for marginalized

communities and and some of the Suburban

actually um different inter cities uh he

basically talk about the many folds of

challenges when you engage with the

Community for example the awareness as

you said the awareness both on the

technology side and also around Finance

side and there's then the finance

challenge right where do you get a found

and how do you actually do it and then

the utilization of these new assets so

maybe share some of the examples right

that you have when you engage with this

type of community how do you overcome

those and how do you really

contextualize your offer and help the

banks for example contextualize your

offer through this this true Community

engagement yeah so I think one of one of

the biggest barriers particularly when

you think about like renewable energies

right um and you think most marginalized

communities actually aren't homeowners

yes they are renters right so that that

puts positions people in a different way

when they think about like

weatherization of their property Etc um

and so it it's two folds it's one

depending on if it's a government um

subsidy uh residence or if it is like um

um rental properties in terms of like a

prim private owner it involves bringing

all those different folks to the table

to have like a conversation because

there are so many

Health indications that are separate

from the financial ones related to um

renewable energy even safety yes exactly

that that marginalized communities

understand right and you have to root

conversations I mean I come from an

organizing background like initially

right when you are organizing people and

I'm an attorney right so it is always

understanding what that person's

perspective is and speaking to that um

which is why a lot of this work

particularly in renewable energy

transition and engaging communties is

about being a cultural translator and

really be able to understand and speak

to what their needs are if I am a renter

and I do not have to pay my utility bill

right it it it it doesn't matter to me

whether my whether my um my heating bill

is 600 a month or like 200 a month but

if I understand some of the um Health

implications of of natural gas right in

homes and related to my child's as Etc

then it becomes different because pretty

much everybody cares about their

children maybe not the US government but

sometimes

um um and so and and so it really is

kind of looking at and that and having

those conversations but then making sure

that like the numbers work again um um

in conversations around some like

Community solar projects right so what

does that mean like if a community has

stake in some of the storage that is

stored in the batteries in terms of then

then it's a game changer because you

also bringing in an extra $200 $300 a

month for an indivual RSE it to the

great yes exactly is is a game Cher for

somebody who is living Check to Check

excellent so um we have been studying

ecosystem and stakeholder engagement for

a long time I think you've just

highlighted some of the key principles

number one is you can't have a central

mechanism and try to expand and that's

not the right way approach stakeholder

management you said the cultural

translator is to understand the context

in which you're in in order to translate

the strategy to be benefiting to the

community and the second one is there

need to be a ecosystem orchestrators

right you're playing that role to bring

different people to the table

understanding the needs and trying to

triangulate and innovate along that line

so that bring us to regulations right

regulations is great at an overall level

but many a time making it happen becomes

really difficult therefore we need the

dreams org and and many others so let me

bring in Matthew you've worked with a

lot of clients to really trying to

understand regulatory environment and

how do you make that work both within

the corporation and without outside so

talk through some of the work that KPMG

has done yeah sure and and hi everyone

so I will not I will clearly not talk

about

regulation definitely um but just a few

words I'm mat valish I'm a next member

at KPMG working for clients and and

markets as well and ESG is very much at

the hurt of what we are providing to our

clients I would say that we do provide

trust and transformation so when we talk

about regulation regulation is having a

very bad reputation it's really complex

but let me try to predict something to

predict that from regulation we will go

to Value creation yes it's probably a

tough one but I will try to do my best

um but that was at least the intent of

the regulation and policies exactly so

what we see is clearly our clients

shifting um shifting towards uh ESG

topics uh but we see a gap of transition

a gap of maturity between large

corporate public corporate M and small

or midsize companies uh in French um we

see clearly a gap of uh of shift which

we can explain by the by a gap of

Regulation because currently the

regulation is primarily towards uh

public

companies so first that's the first

benefit that helping companies to switch

in their in their own model but that's

only regulation um where I see the

regulation can drive the value creation

is that far the regulation the csrd you

all very familiar with that

50,000 companies in Europe will have to

shift to this uh to this regulation it

will imply a

transparency a transparency of hundreds

of ESG

kpis of this already next year and in a

couple of years so let me predict

something is that this whole bunch of

accurate information will come to public

in a couple of years then we will be

able to Benchmark one company to another

in a given sector and then we will

translate this gap of a company compared

to the market compared to the

average with let's say U catch up capex

or or valuation impact and then you can

be sure that in a couple of years ahead

of us investors will value and take a

value and for some companies will

discount the the the value of the

Enterprise value of a company especially

for them who did not transform their

business model so that's very much what

we see and this is also the case because

the the the content was was very much

about talking about financing this

transition and let me take as well the

example of private Equity private Equity

is having today in the world three

trillion dollars of dry powder dry

powder mean the equity you can invest on

a company so the money is

here but they are not they won't they

won't be happy me saying that they are

not transforming their business they are

very much today in the compliance side

exactly but they have the power to

transform their business so we need to

demonstrate at KPMG and we have complex

model that there is a return not only a

return on on ESG kpis but more

importantly at the same importance

a return on investment a financial

return to convince them that there is a

business case a financial business Cas

that there is value at the me to long

term that's was very

much let me ask one question really

really quick I'm basic B uh building on

on the previous question we're behind

right so we should have solved this

yesterday but many time when it comes to

measurement it's actually not that easy

right

um one line of thinking is to actually

bring all of these to financial returns

another one is to actually bring the

different assets of because it's very

difficult to translate for example

social impact where the environment

impact we're we're trying to do it with

carbon we're trying to do it we are

going to try to do it with water what

are some of the things KPMG are doing

trying to help company reduce or or or

or think through those complexity and

even for the investors and consumers as

well yeah exactly and so that this is

exactly why we have built a very complex

model to try to put a a financial metric

or several Financial metric this is what

we call Value creation to try not only

for the environmental topic but also for

the social topic to Value what does it

means in terms of impact for the society

and you can you can put dollars behind

that not because that's the right the

right way to do that but it's probably

more practical way to yeah to attract

interest uh uh from a financial

perspective excellent so let's open up a

little bit all right uh we can take one

or two if if the questions are really

short so anyone had any questions for

any of the panelists or all of

them yes

please yeah can you you can just shout

and I'll repeat the questions if you

will yeah it's okay go

ahead

yes it's an essential question and it

goes back to the fact that we are a bank

not an investor so a bank does not

invest because when you are an investor

for example you can decide to invest in

uh in things that are purely uh for the

green or purely for the transformation

but we are a bank a bank is different a

bank is here to serve the retail clients

to serve the corporate clients and and

we had we we started to make choices for

example when we choose uh not to finance

CL uh fossil it's a choice but it's

Rel before we didn't choose our clients

uh just someone was coming needed a

credit and if his business was legal and

if he was able to repay the credit he

would get a credit so it's a it's it's a

completely different situation than the

situation of investors because our

clients do the transition and in fact we

will need to accompany massively the

transition of our clients for example

today when we do a mortgage loan a

mortgage loan we don't have have

conditions uh linked uh to energy uh

efficiency we start to propose better

conditions for Energy Efficiency but

it's just the beginning in a few years

all the mortgage loans will have links

with Energy Efficiency and have an

impact on the climate but you see that

it's a it's a huge social transformation

so to do that we will need to do it with

The Regulators with the with the

governments so it's a change that is

coming for everybody at the at the same

time so you're right for example energy

we change completely the model but it's

only 3% of our business as as I

mentioned but we will have to change

everything great so so it's very clear

we need to engage the community the

corporate and The Regulators to actually

make this happen so please join me and

and thank all the panelists thank you

very

much