Private equity eyes indie films in the age of streaming

Posted on July 31, 2025July 31, 2025 by itsupport

PRIVATE EQUITY EYES

indie films

in the age of

streaming

By Jamin Liu

Once considered too niche and risky for serious money, indie film is now luring top-tier investors with scalable platforms, breakout hits, and box office upside. As studios like A24 and Mubi reshape the business model, private equity is betting big on a cinematic future beyond Hollywood blockbusters

Indie films, long viewed as too risky and niche for private equity, have attracted a wave of equity investments from prestigious funds traditionally drawn to predictability and scalability.

Founded in 2012, New York-based indie film production and distribution company A24 raised $225m equity investment led by Stripes in 2022, valuing it at $2.5bn. Two years later, it secured an undisclosed amount of equity led by Thrive Capital, with backing from investors participating its previous round such as Neuberger Berman, at a $3.5bn valuation, a 40 percent increase.

London-based Mubi, a global streaming platform, film producer, and distributor specialising on arthouse films, just raised $100m growth capital led by Sequoia Capital in June 2025 at a valuation of $1bn, according to Variety. Prior to this, it raised an undisclosed amount of minority growth investment from Summit Partners in 2021.

Indie films are emerging as a compelling alternative in today’s ever-changing entertainment landscape

In 2024, Fortress Investment Group acquired Curzon, a UK-based arthouse film company, for an undisclosed amount of capital. Curzon operates across three business units: Curzon Cinemas, which operates 16 cinemas and 46 screens across the UK, its film distribution business Curzon Film, and streaming platform Curzon Home Cinema.

Box office hit

There is significant growth potential in the indie film market. Once seen as marginal, indie films are delivering both box office results and critical acclaim. According to Efe Cakarel, founder of Mubi, one third of the biggest 200 films over the past three years in the box office were specialty films. At the 97th Oscars Awards in 2025, six of ten Best Picture nominees were indie films, up from four in both 2024 and 2023. Moreover, the market is far from saturated. A recent study conducted by Keri Putnam, fromer CEO of the Sundance Institute, estimates that 77 million Americans are open to pay for a streaming platform focused on indie films and documentaries, compared to only 36.7 million Americans who currently engage with such content. As she told IndieWire, “people are looking for alternatives.”

Anime has already emerged as a major alternative to mainstream Hollywood blockbusters. Netflix reported that more than half of its 150 million household subscribers watched anime on the platform, tripling over the last five years, and the number of anime titles featured in the platform’s rotating Global Top 10 (Non-English) list in 2024 rose to 33, more than double the number from 2021. Dentsu, a Japanese advertising company, claimed that nearly one third of US anime fans watch them due to “fatigue with Hollywood sequels and remakes”.

Netflix reported that more than half of its 150 million household subscribers watched anime on the platform

Indie films are emerging as a compelling alternative in today’s ever-changing entertainment landscape when traditional big-budget model turns increasingly risky. Anecdotally, a manager of a major Hollywood film studio once said that their business could go on if they have at least three profitable movies each year but if they don’t have one single profitable movie for three consecutive years, they will go bankrupt.

When Disney grossed $2.8bn from Avengers: Endgame at a production cost of $356m and a marketing cost of $200m, it also only earned $205m from Snow White, barely enough to cover the production cost of $270m. In contrast, indie film economics offer greater resilience and the freedom to take creative risks. As the poster child of indie films, A24 have redefined the playbook by leveraging creative and cost- efficient distribution strategies. One example is the pop-up shop they launched in Manhattan in 2017 called A Ghost Store to promote A Ghost Story. They eventually grossed nearly $2m at the box office from this film with only a $100,000 production cost, a 20x return. As Cakarel said to Financial Times, the indie film industry are not competing with Netflix as they are completely different businesses.

We’re going to need a bigger boat

That said, the exit paths for investors in indie films remain uncertain. In the post-Covid M&A boom, Hello Sunshine, a studio that puts women in the centre of every story and is founded by actress Reese Witherspoon in Los Angeles in 2016, raised an undisclosed amount of majority investment from Blackstone-backed Candle Media. The deal reportedly evaluated Hello Sunshine at $900m, signalling strong investor interest in this sector.

Reese Witherspoon, founder of the Hello Sunshine studio, Source: Eva Rinaldi

However, as central banks hiked interest rates and geopolitical risks escalated, this path became less viable. Founded in 2017, another New York-based arthouse film studio Neon, often viewed as the strongest rival of A24, has distributed every Palm D’or winner since 2019’s Parasite, which has earned both box office success and critical acclaim. Despite its strong track record, a sale to the owner of Criterion Collection, Steven Rales, rumoured at over $100m, collapsed in 2023 amid the tightening M&A market.

The more systematic challenge for the industry lies in carving out audience engagement in a landscape dominated by major film studios and streaming platforms. Putman observes that one key obstacle for indie content to is the lack of a centralised platform. When audience browse different streaming platforms, the front pages are full of blockbusters, while niche titles are difficult to discover.

Two door cinema club

A24 and Mubi exemplify the potential paths for content-rich but capital hungry indie film studios. By tapping external capital, they are expanding beyond traditional production and distribution to build a direct-to-consumer platform. A24, for example, offers $9.90 monthly membership that includes a ticket to each new release, among other perks such as a quarterly magazine. Similarly, Mubi’s $19.99 premium membership delivers one cinema ticket per week across the US, the UK, and Germany.

Indie film economics offer greater resilience and the freedom to take creative risks

According to Variety, Cakarel sees this strategy as a way to bring people back to cinemas. A24 also bought the Cherry Lane theatre in New York for $10 million in 2023, in the hopes of building an integrated and omni-channel network.

If the platform narrative proves successful and replicable, we may witness a structural shift in the media and entertainment landscape, which could catalyse a new wave of indie film studios and more strategic M&A activity in the foreseeable future.

For more information

Jamin Liu

yiming.ykln@gmail.com

The looming global debt disaster

Posted on July 31, 2025July 30, 2025 by itsupport

Despite a succession of shocks since 2020, the global economy has held up remarkably well – so far. But the margin for error is dwindling. Total global debt is now nearly 25 percent higher than it was on the eve of the Covid-19 pandemic, when it already was at an all-time high. This overhang could undercut all economies’ ability to shield themselves against the latest shock: higher trade tariffs.

Although debt is crucial for driving economic growth, it should be understood as a form of deferred taxation. By borrowing rather than taxing, governments can make long-term investments that will benefit future taxpayers without burdening the current generation; or they can prop up national growth and incomes during an economic emergency, when hiking taxes would only deepen the downturn. Eventually, however, the piper must be paid, and if national income does not grow faster than the cost of borrowing, taxes must be raised to repay the debt. Persistently high debt thus becomes a barrier to economic progress. That barrier has seldom been higher. Over the last 15 years, developing countries got hooked on debt, which they amassed at a record-setting clip: six percentage points of GDP per year, on average. Such rapid debt buildups often end in tears. Indeed, the odds that they will trigger a financial crisis are roughly 50-50.

Moreover, this particular surge has been punctuated by the fastest increase in interest rates in four decades. Borrowing costs doubled for half of all developing economies, with net interest costs as a share of government revenues rising from less than nine percent in 2007 to about 20 percent in 2024. That alone constitutes a crisis. Although the world has so far managed to dodge a ‘systemic’ financial meltdown of the 2008–09 variety, too many developing economies are now in a doom loop. To service their debts, many are cutting the investments in education, health care and infrastructure that they need to assure future growth.

Future global workforce
This is especially true of the 78 poor countries that are eligible to borrow from the World Bank’s International Development Association. These countries are home to one-quarter of humanity, representing a large slice of the 1.2 billion young people who will enter the global workforce in the next 10–15 years. Yet policymakers around the world have opted to tempt fate. In another triumph of hope over experience, they are betting that global growth will accelerate – and that interest rates will fall – by just enough to defuse the debt bomb.

The world cannot afford yet another decade of drift and denial where debt is concerned

Such passivity is understandable. It has been extremely difficult to devise a 21st-century system capable of ensuring global debt sustainability and swift debt restructuring for countries that need it. In the absence of such a system, the progress that has occurred has been too slow to avoid rising debt dangers. But the world cannot afford yet another decade of drift and denial where debt is concerned.

Under current policies, global growth will not speed up anytime soon, which means that sovereign debt-to-GDP ratios are likely to climb for the remainder of this decade (see Fig 1).

Gloomy forecast predicted
Today’s trade wars and record-breaking levels of policy uncertainty have only made the outlook worse. At the start of 2025, the consensus forecast among economists was predicted 2.6 percent global growth this year. That number is now down to 2.2 percent – nearly a third lower than the average that prevailed in the 2010s. Nor will interest rates fall. In advanced economies, interest rates set by central banks are expected to average 3.4 percent this year and next, more than five times the annual average between 2010 and 2019. This will compound developing economies’ difficulties. In an era of scarce public resources, it will take an all-out mobilisation of private capital to boost growth and development over the next five years. But foreign private capital is unlikely to flow into highly indebted economies with weak growth prospects.

Private investors will correctly assume that any gains from economic growth will simply be taxed to pay off the debt. Thus, reducing debt should be the top priority for developing economies with persistently high debt-to-GDP ratios. But we also need a clear-eyed view of the broader problem: the global apparatus for assessing the sustainability of a country’s debt urgently needs to be upgraded. The current system is too quick to decide that countries merely need loans to tide them over, when most low-income countries today are in fact insolvent and will need debt write-offs. Governments also will need to ditch the habit of borrowing from domestic creditors; the rise in domestic debt is strangling domestic private-sector initiative.

The tariffs issue
After reducing debt, the next priority is to accelerate growth. It is foolish to pretend that growth will magically return. Policies that impede trade and investment – like tariffs and non-tariff barriers – should be rolled back as soon and as much as possible. For many developing economies, cutting tariffs equally with respect to all trading partners could be the fastest way to restore growth. Developing economies also have much to gain by fostering a more investment-friendly regulatory environment. And those gains can be used to shift the national focus back to development, particularly by ratcheting up investments in health, education, and infrastructure.

The current system is too quick to decide that countries merely need loans to tide them over

As the saying goes, when you are in a hole, it is wise to stop digging. An era of extraordinarily low interest rates encouraged too many countries to spend far beyond their means. A string of catastrophes – both natural and man-made – made it impossible for them to do anything else in the last five years. But prudence is now essential. Governments should revert to previous norms on what constitutes excessive sovereign debt. Call it the 40-60 maximum: 40 percent of GDP for low-income economies, 60 percent for high-income economies, with everyone else in between.

From profit to planet: how big-name brands are redefining responsibility

Posted on July 30, 2025July 31, 2025 by itsupport

From profit to

planet:

how big-name

brands

are redefining

responsibility

As global temperatures continue to rise and consumers become ever-more conscious of their footprint, companies across the board are upping their sustainability measures

2024 was the first calendar year to see global temperatures average more than 1.5°C higher than pre-industrial levels, according to data by the Copernicus Climate Change Service – leading experts to fear we are one step closer to reaching the longer-term 1.5°C rise the 2015 Paris agreement has long attempted to prevent. “We must exit this road to ruin – and we have no time to lose,” UN Secretary-General António Guterres said in his 2025 New Year message, describing the last decade – which marked the 10 warmest years on record – as “climate breakdown.”

While the spate of record-breaking highs doesn’t necessarily mean we are doomed, it is certainly a wake-up call to countries and corporations to take action (and fast). Many businesses are doing their bit – for the sake of their bottom line as much as the planet. Consumers are demanding sustainability and accountability from corporations in ever-increasing numbers, and as Gen Z and Millennials continue to take on an ever-increasing slice of the pie, organisations that don’t take genuine action are likely to get left behind.

According to a recent report by AI platform First Insight, 62 percent of Gen Z shoppers prefer to buy from sustainable brands, and 73 percent would pay more for sustainable products. A recent Morgan Stanley survey meanwhile found that 99 percent of Millennials and 73 percent of Gen Z are interested in sustainable investing.

“Both Gen Z and Millennials expect sustainability to be part of the baseline – not just a brand add-on,” says Philippa Cross, Founder and CEO of sustainability collective Marshall Sustainability. “Research also shows the vast majority of Millennials and Gen Z want to work for companies with strong environmental values,” she says. With these two groups set to make up 74 percent of the global workforce by 2030, according to research firm Forrester, it is crucial for businesses to adapt if they are to attract top talent.

“In response, we are seeing more businesses set net-zero goals, create greener workplaces and support employees with education, incentives and Employee Resource Groups focused on sustainability,” she says. Adriel Lubarsky, Founder of Beehive Climate, believes ESG in business is about managing risk. “Companies excel at handling cyber, geopolitical and operational risks – sustainability should be no different,” he told Forbes. “To win with Gen Z, companies need to understand the risk of inaction or inauthentic action, weigh that against the risk of lost market share, and lean into ESG and sustainable values hard, all underpinned by transparency.”

Because if doing the basics or simply waxing lyrical once cut it, it doesn’t now. “Thanks to frameworks like EU CSRD and growing scrutiny, brands are being held to account for where they truly impact and influence,” says Cross. “As sustainability matures, the focus is shifting from glossy commitments to real delivery – especially at the product and service level.”

Cross continues: “The key is honest, proportional storytelling. Recycled packaging is a start, but real credibility comes from tackling the biggest impacts – like raw material sourcing in the core product.” So how are companies across the globe meeting the challenge? From IKEA to Apple, we have profiled a handful of businesses taking steps in the right direction to reduce their carbon footprint, embrace a circular economy and support communities across the world.

Patagonia

Adventure clothing brand and B-Corp, Patagonia, has been a sustainability pioneer since its California beginnings in 1973. Under Founder Yvon Chouinard – a pioneering rock climber and long-time environmental champion – the company began donating one percent of its sales to environmental preservation in 1985. Chouinard then encouraged other businesses to do the same by co-launching ‘one percent for the planet,’ a global network that now has around 5,000 members following suit.

Under the scheme, Patagonia has pledged more than $140m to grassroots environmental groups in the US and beyond, adding to a whole raft of other initiatives. These include carbon-cutting measures such as using only ‘preferred materials’ – namely organic cotton and recycled polyester and nylon – and using 100 percent renewable energy for its owned-and-operated stores and offices. The company has also partnered with organisations to fund residential solar units, and with local communities to protect natural spaces.

It launched a ‘Worn Wear’ programme, enabling customers to trade in and buy second-hand clothes, established Patagonia Action Works to connect individuals to organisations targeting environmental issues, and regularly petitions; in 2017, Patagonia even attempted to sue President Trump in coalition with other groups to protect Native American land. But the most drastic measure of them all came in 2022, when Chouinard donated ownership of the entire $3bn company to trust and non-profit organisation Holdfast Collective – meaning all profits would be used to fight climate change and protect the planet.

“We are going to give away the maximum amount of money to people who are actively working on saving this planet,” Chouinard told The New York Times. “I didn’t know what to do with the company because I didn’t ever want a company,” he said. “I didn’t want to be a businessman. Now I could die tomorrow and the company is going to continue doing the right thing for the next 50 years, and I don’t have to be around.”

Patagonia is a winning example of sustainability and philanthropy at its best. And if the numbers are to go by – revenue reportedly exceeded $1bn in 2024 – it has certainly paid off from a business standpoint, too.

IKEA

It might sound like a paradox for a company long centred on fast, disposable furniture to be truly sustainable, but the Swedish furniture brand has taken significant strides in going green.

Circularity is at the heart of many of its initiatives, including a buy-back and resell programme which means customers can return used furniture in exchange for store credit. The company is also transitioning to clean energy (75 percent of its production was already running on renewable electricity in 2024), and is investing more than €7.5bn in renewable energy projects, including wind and solar farms.

Electric vehicles have also been introduced to its delivery fleet to help meet its environmental goals – which include cutting greenhouse gas emissions from its value chain by 50 percent by 2030 compared to 2016, and reaching net-zero emissions by 2050.

Working with local communities is also a key focus for the brand. “In 2024, IKEA supported over 81,000 people through community programmes, and expanded efforts in refugee employment and biodiversity,” Karen Pflug, Chief Sustainability Officer, told World Finance. Last year in the US, the firm even constructed and donated a sustainably built home to a small village in Texas that would house vulnerable residents, using “trauma-informed design” to support wellbeing.

Experts agree IKEA is doing things the right way. “I often point to IKEA as a sustainability leader,” says Marshall Sustainability’s Cross. “They don’t shy away from the tough conversations – including the role that affordable goods can play in driving overconsumption,” she says.

“Instead, they have tackled it head-on with initiatives like sourcing FSC-certified wood, improving product durability and experimenting with circular models. I also appreciate their transparency; they openly share the challenges they face and invite feedback, which is key to building trust and real progress.”

Pflug, meanwhile, says making sustainability more accessible is a key focus for the company. “We know that people want to take more climate action, but often face barriers like cost and convenience,” she says. “We are focused on making sustainable living more affordable and accessible – through services like buyback and resell, and by continuing to improve how we bring products and solutions that help people live more sustainably every day.”

Where things go from here remains to be seen, but the furniture company certainly looks set to be trailblazing a promising path.

New Belgium Brewing Company

As the first wind-powered brewery in the US and the producer of the country’s first certified carbon neutral beer (Fat Tire), Fort Collins-based New Belgium Brewing Company is something of a pioneer in the beer field. It uses a number of innovations – from ‘sun tubes’ for natural lighting to methane produced from wastewater to generate energy – and has a goal for all production facilities to be powered solely by renewable energy by 2030.

The company also advocates for climate action as a member of the ‘We Are Still In’ movement – where it sits on the leadership circle alongside Microsoft and other giants – and co-founded the Glass Recycling Coalition to boost recycling rates. To encourage sustainable commutes, employees are even given an ‘anniversary bike’ when they have been with the company for a year. Wider sustainability efforts range from regenerative agriculture and water stewardship to responsible sourcing and land use.

The self-proclaimed ‘Human Powered Business’ also works heavily with local communities; in 2024, it invested in more than 360 non-profit organisations (and last September its distribution centre in Asheville became a drop-in for those affected by Hurricane Helene).

It was also the first brewery to join ‘one percent for the planet’ back in 2008. “This means that for every barrel of beer sold, we donate $1 to non-profits across the US,” says Meghan Oleson, Social Impact Senior Manager. “That amounts to a total of more than $34.4m put towards helping solve some of the world’s most pressing social and environmental challenges.”

But Walker Modic, Senior Director of Environmental Programs, recognises there are still obstacles to overcome. “There are many challenges to meeting sustainability goals. One such challenge is that much of our impact happens outside our operational control,” he says. “For example, our packaging materials are recyclable, but that doesn’t mean they always get recycled due to regional recycling infrastructure challenges or consumer behaviour, which are both difficult to change.

“However, by using less energy, switching to cleaner sources and collaborating across our value chain, we can do our bit to reduce costs and minimise environmental harm,” he says. “If we can be the proof point that business can be a force for good and that doing so makes it a stronger business, we believe it will be that little bit easier for other businesses to do the same.”

Workday

Workday – which provides businesses with financial, IT and human capital management solutions through an AI platform – reached net-zero carbon emissions in 2020 and has been operating entirely on renewable energy since then. The organisation is one of the first in the world to have achieved a lifetime net-zero carbon footprint, and in 2023 joined Frontier, donating new funds to help the $1bn advance market commitment targeted at supporting carbon removal technologies.

In 2024, the company also committed to a multi-year carbon credit offtake agreement to support projects in partnership with climate tech firm Patch. These range from protecting forest in the Amazon using remote sensing to carbon removal using biochar in Namibia, and plugging orphaned oil and gas wells to target methane emissions. Other efforts include donating $1m to support mangrove reforestation projects in Mexico and Kenya to sequester carbon.

Under a Green Team Leadership Programme, employees are meanwhile encouraged to lead sustainability initiatives in their local offices – from waste reduction campaigns to Earth Day activities and community projects – with budget and promotional material provided by the company.

The goal of the Green Teams is to enable employees to become “stewards of the Earth,” according to Erik Hansen, Chief Sustainability Officer. Workday Green Teams have helped a school district go green by implementing a composting, recycling and landfill system; cleaned up the coast of Bull Island in Dublin by recycling and composting hundreds of pounds of waste; and planted young trees in Auckland, New Zealand.

“We put some bold commitments in place several years ago at Workday to keep moving in a positive direction to protect our planet, and we are certainly not slowing down,” Hansen says.

According to Hansen, an internal survey found 96 percent of employees felt Workday was doing its fair share to reduce its environmental impact. DitchCarbon, a platform that analyses business’ emissions, meanwhile gives it a score higher than 99 percent of others in the industry – proof in the pudding that this is another company taking genuine steps to address some of the planet’s most pressing issues.

Renault

Sustainability and cars might not always go hand in hand, but electrification and other efforts are helping to go some way in mitigating impact – and Renault is among those leading the charge. It launched the Refactory – ‘Europe’s first circular economy factory dedicated to mobility’ – in the French commune of Flins in 2021, aimed at extending vehicle life through a ‘retrofit, re-energy, recycle and restart’ programme, in the words of the company.

Services range from repairing and reconditioning EV batteries to retrofitting combustion-engine cars into electric vehicles.

It is not the only step being taken. The group has set a goal to achieve carbon neutrality in Europe 2040 and worldwide by 2050 through a number of other measures, not least EVs; 90 percent of its vehicles in Europe are due to be battery-electric by 2030. Some progress has already been made toward the targets – Renault saw its carbon footprint fall by 28 percent from 2010 to 2023 – and the company is aiming to create positive impact in the wider industry, too. In 2022, it launched ‘The Future is NEUTRAL,’ offering recycled materials and reused parts to “support industry players in moving towards resource neutrality,” in the words of Chief Executive Jean-Philippe Bahuaud.

Renault says it is also aiming to up its use of recycled materials in production. The Scenic E-Tech, an electric family SUV launched in 2024, uses recycled materials for a quarter of its parts, with 90 percent of the car’s mass also recyclable. Innovations include floor mats made from recycled plastic bottles, recycled seat upholstery, a steering wheel coated in bio-sourced materials and cotton weft, and a cockpit that uses 26 percent recycled plastic.

The electric Renault 5 E-Tech – the ‘city car’ being rolled out this year – will meanwhile feature a slew of sustainability features, with its modules designed to have a 35 percent lower carbon footprint than those of its predecessor, ZOE, by 2030.

The automobile firm is also attempting to help mitigate impact on wildlife through various initiatives – including a project in Thailand to train local farmers in agroforestry and help reduce the impact of rubber cultivation on biodiversity (in partnership with Michelin). While there is still some way to go before the car industry could be considered the height of sustainability, Renault is among those forging a positive path.

Apple

From resource extraction to energy-guzzling production lines, mobile phone and tech manufacturers might not be the poster child for eco-friendliness, either; but many, including both Samsung and Apple, are taking notable strides to reduce their impact.In April, Apple announced it had cut its global greenhouse gas emissions by more than 60 percent compared to 2015 levels, marking significant progress towards its 2030 goal of becoming carbon neutral.

The brand introduced its first fully carbon neutral products in 2023 in the form of various Apple Watches, achieving a 75 percent reduction in emissions (with the remaining emissions offset via carbon credits invested in nature-based projects). Last October, a carbon neutral Mac mini was rolled out, made with over 50 percent recycled content, while the new MacBook Air, introduced in early 2025, uses over 55 percent recycled content.

All Apple-designed batteries are now made from 99 percent recycled cobalt – and for those looking to get rid of their old devices, Apple Trade In allows customers to bring in old Apple products to be recycled in exchange for credit. The recent Environment Progress Report outlined a series of other milestones – not least having powered every Apple facility with renewable energy since 2018. “That progress is quickly making its way across our global supply chain, and today, our suppliers now support more than 17.8 gigawatts of clean energy around the world,” wrote Lisa Jackson, Vice President of Environment, Policy and Social Initiatives, in the report.

“We are also investing in clean energy projects to match the energy our customers use to charge their devices,” she said, pointing to the company’s Power for Impact programme, which includes renewable energy projects in the Philippines, Thailand, South Africa and beyond. “By expanding access to safe, reliable electricity, we can protect the planet and support the communities most significantly impacted by climate change.”

Apple is also investing in carbon removal projects through its Restore Fund, whose projects include reforesting the Atlantic Forest in Brazil, now “filled with native tree species that could have been lost forever,” in Jackson’s words.

Waste issues are meanwhile being addressed under a Zero Waste programme; in 2024, participating suppliers redirected around 600,000 metric tons of waste from landfills. The company’s Supplier Clean Water Programme has also seen more than 90 billion gallons of fresh water saved since it was introduced in 2013, promoting water reuse at facilities around the world.

There is still more to be done – not least around flying; Apple’s corporate travel emissions were down 31 percent in 2023 compared to 2019, but this lags behind the average reduction seen by other major tech companies, according to a Travel Smart campaign by Transport and Environment.

Nonetheless, the tech giant is certainly a promising example, using innovation to drive sustainability in characteristically Apple fashion, all while benefitting the bottom line.

Revenue grew by more than 65 percent in the same period that emissions fell by 60 percent, showing that profitability and sustainability can go hand in hand if done in the right way – and as we move into the future, and watch as Gen Z takes to the stage, the first might just well become the key to achieving the second.

Shaping sustainable finance and ethical investing

Posted on July 29, 2025 by itsupport

Leading bank-insurance group KBC Asset Management (KBC AM) – the investment arm of KBC – specialises in the sale of investment funds, advisory support and the development of innovative financial products. It has more than 41,000 employees, offering a fine-tuned menu of services to millions of clients across Europe, including Belgium, the Czech Republic, Slovakia, Bulgaria and Hungary. Serving 13 million clients – including 2.92 million retail and institutional investors – across Europe, KBC AM understands the importance of tailored investment solutions. With this in mind, we have developed a diverse range of services, catering to retail investors, high-net-worth individuals and institutional clients. Our expertise in discretionary portfolio management and investment funds ensures a professional, client-centric approach – and one that is carefully customised to suit individual financial needs.

So what makes KBC AM stand out? We distinguish ourselves from our peers through continuous innovation and we strive to set industry standards rather than merely following them. By staying ahead of market trends, we help clients simplify the transition from saving to investing, making it a seamless and reassuring process.

Our well-developed digital-first approach is evident in the approximately two million active investment plans, with 59 percent of all plans sold digitally. Our focus on accessibility, meanwhile, has resulted in an impressive 92 percent customer satisfaction rate – an encouraging figure underscoring KBC AM’s commitment to service excellence.

Digital innovation with a personal touch
Our digital-first approach is key; but crucially, we are embracing the digital transformation without compromising the human aspect. Our mobile-first strategy is exemplified by KBC Mobile, an advanced app featuring the virtual assistant ‘Kate,’ who is on hand to provide personalised investment insights. Kate’s AI-driven capabilities ensure that precise recommendations are provided, making the investment journey intuitive and efficient.

As for products and services, our digital offerings include the ‘spare change investing’ feature, where daily transactions are rounded up to the nearest euro and the difference automatically invested when it reaches a certain amount. This innovative approach allows clients to invest effortlessly, reinforcing the company’s goal of making investing a natural financial habit.

KBC AM’s expertise also extends to AI-powered advisory services, and our smart advisory engine conducts daily portfolio screenings for private wealth clients. A tool designed to inspire confidence, this system analyses risk and return factors, ensuring tailored, data-driven investment strategies.

Sustainability front and centre
Sustainability has become an undeniable global priority, driven by ethical concerns, financial imperatives and environmental responsibilities. At KBC AM, sustainability is seamlessly integrated into our corporate strategy. We fully recognise that financial resilience and sustainable development go hand in hand. Responsible Investing (RI) allows clients to align their financial ambitions with environmental, social, and governance (ESG) principles. KBC AM employs a stringent RI methodology to offer investment solutions that contribute to three key missions: reducing greenhouse gas intensity (CO2), meeting the United Nations Sustainable Development Goals (SDGs), and enhancing corporate governance and social responsibility.

To reinforce KBC AM’s commitment to ethical investing, we exclude companies involved in controversial sectors such as tobacco, gambling and weapons. As a major financial institution, we actively support the transition to a low-carbon economy and a more sustainable society by collaborating with stakeholders across various sectors.

KBC AM has been a pioneer in sustainability since as far back as 1992, when it launched Belgium’s first RI fund. Over the years, the firm has continuously refined its methodology, introducing new sustainable solutions to meet ever-changing market demands.

Leading the way in responsible investing
Our dedication to sustainability is reflected in our policy on fossil fuel-free RI funds, introduced in November 2017. In May 2018, we launched Pricos SRI, Belgium’s first SRI pension savings fund, and by 2019, all our RI funds in Belgium had been certified with the ‘towards sustainability’ label, the quality standard of Febelfin, the Belgian financial sector federation.

As we are all aware, staying at the forefront of RI requires continuous adaptation. KBC AM recently updated its RI approach to place a stronger emphasis on biodiversity. The company now excludes businesses that engage in controversial land use practices or activities that negatively impact biodiversity without sufficient mitigation measures being put in place.

KBC AM remains dedicated to being a market leader in investment innovation and RI. We continuously develop strategies to reflect market trends and client preferences, ensuring that our services remain relevant and forward-thinking. By combining cutting-edge digital solutions with a firm commitment to sustainability and customer satisfaction, KBC AM is poised to remain a key player in the financial sector, shaping the future of investing.

How PPLI is helping to unlock global wealth

Posted on July 29, 2025 by itsupport

Private Placement Life Insurance (PPLI) is a form of variable universal life insurance offered privately to qualified investors. Unlike traditional retail life insurance products, PPLI can be fully tailored to address global or country-specific planning needs. Whether the goal is wealth protection or enabling strategic access to investments and currencies otherwise restricted or costly, PPLI offers a versatile, legally recognised framework for high-net-worth individuals (HNWIs) and families.

In an era marked by growing regulation, political instability and capital constraints, PPLI has become especially relevant. Countries with foreign exchange controls, limitations on outbound investment, or underdeveloped capital markets, present real challenges for globally mobile families seeking diversification and long-term preservation. Offshore PPLI, when structured correctly, can offer a compliant and efficient bridge between onshore limitations and global opportunities.

Within this context, the Geneva entities – comprising Geneva International Insurance, a Barbados-based 953(d) electing carrier, and Clarity Life Insurance, a non-953(d) PPLI provider – offer clients a dual-pathway approach to cross-border planning. While Geneva International focuses on US-connected clients seeking compliant offshore structures, Clarity specialises in addressing the needs of non-US clients, including families from regions such as Africa and Latin America. Both carriers deliver solutions grounded in regulatory integrity and built to solve real-world financial challenges such as capital mobility, investment access and long-term succession planning.

Clients no longer ask only how to protect wealth – they ask how to grow it, use it and pass it on

Traditionally, PPLI has been associated with tax deferral, estate planning and asset protection – particularly in jurisdictions like the US (under IRC 7702) and Canada (under Exempt Testing). These functions remain vital. However, today’s market has evolved. Families are now seeking more than protection; they want participation – access to and protection of private equity, venture capital, real estate, intellectual property, ESG-aligned investments and even alternative assets like art.

Imagine a successful family business in a country with outbound investment restrictions – seeking to diversify not just its corporate assets but its generational wealth. Through Geneva entities’ PPLI offering, the family may pay premiums into a Barbados-domiciled policy, appoint a globally recognised investment advisor and custodian, and structure the policy to reflect their risk appetite. The result is a globally diversified investment portfolio that complies with international standards while preserving capital, ensuring continuity and enabling intergenerational transfer. This is the core of what we refer to as participatory wealth planning – a philosophy where protection and access are not mutually exclusive but work together to serve broader family and financial goals.

Capital constraints and access barriers
Access to global assets is not guaranteed for many investors. Families in countries which often face challenges with hard currency access, repatriation of funds and institutional barriers to investing internationally. Geneva entities have supported clients from such jurisdictions by creating compliant, robust policy structures that offer both protection and participation. These policies become a gateway to managed investment portfolios denominated in USD or EUR, administered by professional asset managers outside the constraints of the client’s local financial system. This capability transforms PPLI from a passive holding structure into a dynamic financial tool – one that enables liquidity, flexibility and global reach while retaining the traditional benefits of insurance and wealth transfer.

Why Barbados?
Barbados has steadily built a reputation as a co-operative, compliant and capable jurisdiction for wealth structuring. It maintains economic substance requirements, has a strong bilateral treaty network and offers regulatory transparency aligned with OECD and FATF standards. The country also provides a mature legal and financial services environment supported by experienced professionals. For Geneva entities, Barbados is more than a base – it is a strategic platform. The jurisdiction enables us to meet the complex needs of globally mobile clients while adhering to international regulatory expectations. In a world where compliance and substance are as critical as innovation, Barbados offers the right blend of both.

Technology and customisation
Geneva entities are actively advancing its digital transformation to deliver a more seamless and transparent PPLI experience. From streamlined onboarding to improved policy access and compliance workflows, our goal is a responsive, tech-enabled platform. As part of this evolution, investment profiling – including ESG alignment and risk scoring – will ensure each policy reflects the client’s unique objectives and values.

The future of wealth planning
As wealth planning shifts away from secrecy toward strategy, clients no longer ask only how to protect wealth – they ask how to grow it, use it and pass it on. PPLI, especially when structured from a forward-looking jurisdiction like Barbados, offers a clear path toward that vision.

Geneva entities are proud to stand at the intersection of access and protection, helping clients around the world unlock new possibilities through a reimagined approach to private wealth.

The global trade war has just started

Posted on July 28, 2025July 29, 2025 by itsupport

When US President Donald Trump announced an unprecedented increase in tariffs against foes and allies on April 2nd, the so-called ‘Liberation Day,’ Goodfellow, a UK advanced materials and metals supplier, suffered a setback overnight. An initial review estimated that the cost base for its American sales rose by approximately 10 percent, a blow for a firm that derives 35 percent of its business from the US. “From prior experience of the Trump administration, we always knew there would be some significant measures introduced and the President didn’t disappoint,” says Andrew Watson, Goodfellow’s chief finance officer. Although Goodfellow sources a small amount of its purchases from China, 150 percent cost hikes can cause major disruption. “While we can try to re-source this, it is not always possible, particularly with some materials that can only reliably be sourced from China,” says Watson, adding: “We also have incidents of US origin products – bound for China – that cannot now be sold economically.” The company exports to over 60 countries and potential EU retaliatory tariffs would raise costs for its Baltimore-based subsidiary. “We can deal with the consequences of the ‘new normal,’ but we cannot plan for constant changes,” Watson warns. “There is no way of getting around the simple fact that even the best scenario results in higher prices for customers and changes to supply chains.”

Free but alone
Few people were surprised by the Trump administration’s embrace of tariffs as a means of reshoring manufacturing jobs. During his campaign, Trump expressed his support for an aggressive trade policy. Yet, such a massive spike in tariffs, pushing average rates back to mid-20th-century levels, surprised even the staunchest protectionists, as even traditional US allies such as Australia and Japan were affected. The method used to calculate new rates also raised questions. When Trump presented a cardboard chart with the new rates, it was assumed that they incorporated a combination of existing tariffs and other trade barriers. It later emerged that for each country the US administration had divided the trade deficit in goods by total imports and then halved the result. Even net importers like the UK were hit with minimum tariffs of 10 percent. Less surprisingly, services, an area where the US excels, were excluded.

Even the best scenario results in higher prices for customers and changes to supply chains

The US has run a trade deficit for several decades. American consumers and businesses spend and invest more than they earn, meaning that it may persist despite increasing tariffs. With many trade partners, the deficit stems from geography, for example fruit being easier to grow in warmer climates. These practicalities seem of little interest to an administration determined to overturn the status quo. “Trump wants to end up with low and balanced tariffs,” says George Calhoun, who teaches quantitative finance at the Stevens Institute of Technology, pointing to a 2018 G7 summit where Trump called for the elimination of all tariffs. “He wants to equalise or ‘reciprocalise’ the trade landscape among major trading partners. The era where the US ran a parallel Marshall plan for trade by allowing highly asymmetric trade arrangements to continue is coming to an end.”

Supporters of the US President argue that the tariffs are merely the first step in a longer-term strategy. If true, a 90-day pause on tariffs higher than 10 percent announced in late April was a strategic move to provide time for concessions from trading partners. For opponents, the climb-down signalled a major policy failure, partly imposed by turmoil in financial markets, with a recession looming as an unintended consequence. According to the survey firm Consensus Economics, economists expect the US economy to grow nearly a percentage point less than previously projected in 2025. JPMorgan Chase CEO Jamie Dimon expressed concerns that a recession was imminent, which reportedly pushed Trump to scale back the tariffs. Undoing the damage that tariffs have done to business confidence will be difficult, says Nick Rakovsky, CEO of DataDocks, a logistics software company processing US warehouse appointments. “The pause removed an immediate cost spike and helped with cash‑flow forecasts, but it hasn’t repaired confidence. Without a clear timeline, scope and escalation path, companies prefer the flexibility of short bookings and higher safety stock to committing long term.” However, revenue from tariffs could help fill government coffers ahead of any stimulus required to prevent a recession, and could also be used to pay down government debt, says Nick Baker, an expert on trade at Kroll.

Political considerations also come into play. A recession could lead to a Republican loss in the mid-term elections in November 2026. Trump’s own electorate will feel the pinch, with inflation expected to rise up to four percent if the initial tariff rates are maintained. A survey by the Cato Institute and YouGov found that 40 percent of Americans were concerned about inflation and just one percent about trade. Unravelling long-established supply chains will be difficult, given that producers will take time to switch to domestic suppliers and imports won’t drop immediately. “Many sectors rely on complex supply chains that have been forged over many years. You can’t simply rip this up, wave a magic wand and have a US supply chain that does everything,” says Goodfellow’s Watson, adding: “Rare materials often come from a limited number of global sources and any disruption caused by tariffs or trade restrictions could create bottlenecks for research and industry.” Most trade between developed economies is intra-industry, notably trade in machinery used in manufacturing, meaning that the tariffs would indirectly hit US producers too, notes Stephen Buzdugan, who teaches international business at Manchester Metropolitan University: “Tariffs of 20 percent or higher on imports from Japan, Korea, China and the EU will have knock-on effects on production costs across the US and other industrialised countries.”

Europe’s dilemma
For the EU, a key US trade partner, ‘Liberation Day’ wasn’t a surprise, given Trump’s aggressive trade policy during his first term and his accusations that the EU is “ripping off” the US. The Trump administration has claimed that the EU imposes a 39 percent tariff on US products, despite a World Trade Organisation (WTO) estimate of just five percent. For their part, European policymakers perceive the tariffs as an existential threat, given the EU’s role as a defender of a rules-based trade order. The US has imposed a 25 percent tariff on European steel, aluminium and cars, as well as a blanket 10 percent tariff on all EU imports. A doubling of the latter has been paused until July, as the two sides have exchanged negotiating documents. Although the EU suspended its initial retaliatory tariffs to leave room for negotiation, if this fails it plans to respond with a €100bn tariff package targeting imports that include Boeing aircraft, medical devices, cars and bourbon whiskey.

You can’t simply rip this up, wave a magic wand and have a US supply chain that does everything

The bloc’s response will be shaped by political calculations regarding its relationship with the US and internal divisions. Member states with strong US exports, such as Ireland and Italy, have called for a more conciliatory approach, while others are urging the bloc to stand firm against Trump’s bullying tactics. A decision will be reached through qualified majority voting, but the US has little chance of dividing its European trade partners, says Niclas Poitiers, a research fellow at the Brussels-based think tank Bruegel, pointing to Brexit and recent EU levies on Chinese electric vehicles as examples of member state alignment despite disagreements: “You want to have a broad support for your measures, otherwise they might not be credible as a threat towards the US, but there is no need for unanimity.” Some member states are cautious about antagonising the US due to security concerns, with a recent Nato summit set to discuss European defence spending amid the Ukraine war. Trump has demanded that European allies increase their defence spending to five percent of GDP and assume more responsibility for the continent’s defence.

Some observers think a scenario similar to last May’s UK-US trade deal is the most likely outcome. The UK managed to secure cuts to the 25 percent tariffs on car and steel exports but failed to reverse the flat 10 percent levy, which has left Britain facing a tougher trading relationship with the US. One ace up the EU’s sleeve is targeting digital services, an area where the US maintains a net surplus. “If you want to include services, you have to think outside of the box,” says Poitiers, adding that the EU has a new tool, the Anti-Coercion Instrument, that allows it to employ the entire toolbox of regulation available to hit US tech giants. Ireland, which hosts many of them, may face pressure to revise its favourable tax regime. “That is member competence and Ireland does not want to kill the golden goose. They will probably be opposed to any measures that will undermine their business model,” Poitiers notes, adding that the Commission could still take a creative approach. “There is a lot of retaliation potential that could escalate this beyond a traditional trade conflict.”

A side effect of strained EU-US relations might be closer ties with other major trade partners. Brussels is reviving a plan to form a strategic partnership with a 12-country Indo-Pacific trade bloc that includes Canada, Japan, Mexico and the UK. Trade relations with China may also improve, despite tariff tensions over electric vehicles. However, the trade imbalance between the two has only grown worse, despite the EU’s efforts to curb it. “The European and Chinese economic models are not compatible, and the spillover effect of China’s economic model exporting into Europe has a level of a deindustrialisation risk,” says Jacob Gunter, lead economist at the Berlin-based think tank Mercator Institute for China Studies (MERICS), adding: “There is no agreement that the EU and China could come up with that would prevent that from happening.”

China on a path to war
If the European Union hopes to meet Trump halfway, China finds itself in a different position. As the country with the world’s largest trade surplus, the Asian country is the primary target of US protectionism, which threatens to undermine its export-driven economic model. For now, the two countries have agreed to a temporary pause, reducing US tariffs from 145 to 30 percent, while China slashed its retaliatory tariffs from 125 to 10 percent. “This ceasefire is functionally a recognition that the escalation ladder was scaled too high and too quickly, and that the pace of US-China decoupling needs to be adjusted to avoid a crisis undesired by both sides – like a complete breakdown in global value chains or a recession,” says Gunter from MERICS, adding: “The fundamentals in the economic and technological relationship, to say nothing of the security and geopolitical situation, remain deeply imbalanced and increasingly irreconcilable.”

China has signalled its intention to resist unilateralism by restricting rare earth exports and agricultural and energy imports, while also issuing travel advisories discouraging Chinese tourists from visiting the US. Its strongest weapon remains its dominance of rare earths, with further export restrictions to rare earth elements and magnets potentially threatening US production of robots, fighter jets, wind turbines and cars. “China has done a lot more to prepare for a shootout like this with the US. That has been the central pillar of their economic policymaking for the last 10–15 years, especially since the first Trump administration,” says Gunter. Trump has imposed port fees of $1.5m on China-built vessels, a measure the World Shipping Council estimates could double the cost of shipping US exports. If the US wanted to escalate, it could further restrict China’s access to critical technologies. “What keeps Xi Jinping up at night is getting technologically cut off. The US could simply ban the sale of chips and specific equipment to China,” Gunter says. “That choking-off has happened in semiconductors, semiconductor manufacturing equipment and lithography machines. But it has been relatively limited and less effective than hawks in Washington would prefer.”

China has done a lot more to prepare for a shootout like this with the US

The domestic front is equally important. US tariffs will hit Chinese exports, depreciating the yuan and indirectly leading to capital flight, a serious risk to the Chinese regime, Calhoun estimates. China has more to lose since it is more committed to a global economy, says Shameen Prashantham, who teaches at the China Europe International Business School, given that its “export-oriented companies will face strong headwinds and some of them will fail to survive, leading to job losses and a drag on growth.” On the other side of the Pacific, if enough Republicans side with Democrats in Congress, they could strip the president of his unilateral tariff powers. “China might wait to see how their negotiating position improves as small companies have to fire workers and truckers and port workers have less demand because of fewer goods coming into the US,” Gunter says. “These are important constituencies that will be extremely angry the longer this goes on.”

One way for China to resist pressure is by forging ties with other trade partners, defying the Trump administration’s plan to disrupt its supply chains. The Chinese government has called for a joint response to tariffs with traditional US allies such as Japan, South Korea and India. President Xi Jinping has launched a charm offensive targeting Vietnam, Malaysia and Cambodia – countries through which China diverted exports to the US during Trump’s first term – but has also warned them against striking bilateral deals with the US.

Many experts have pointed as a desired endgame for the Trump administration a China-US agreement similar to the Plaza Accord in 1985, when the Reagan administration effectively forced its trade partners, notably a surging Japan, to appreciate their currencies against the dollar to reduce the US trade deficit. Economists believe this marked the beginning of Japan’s economic stagnation. “Chinese leadership is afraid of the Plaza Accord and will absolutely resist anything like that,” Gunter says. Another scenario is a temporary truce with a deal that makes Trump believe he won by committing China to purchases of LNG, soybeans and Boeing jets. “That would be a victory for China, because what Xi wants to do is to buy time for his agenda, which is achieving technological self-reliance from the US and becoming less dependent on exports to the US and its allies,” Gunter says.

The end of an era
The trade war rekindles a debate that started during Trump’s first term: is this the end of globalisation? Optimists argue that such forecasts are premature, given that global trade growth is expected to be driven by emerging economies. Recent trade deals, such as the EU-Mercosur agreement, demonstrate continued appetite for market liberalisation. Even if the US chooses isolation, it accounts for just 13 percent of goods imports. Booming trade in services is expected to offset a decline in goods exchanges. International supply chains remain robust, argues Poitiers from Bruegel, pointing to the pandemic as proof of their resilience: “This was an incredible shock, much larger than the trade shock we experience now. Despite all the talk about the end of global value chains, it didn’t happen.”

At the centre of the global trade war lies a surprising US grievance: the dollar’s position as the global reserve currency. In a controversial paper published last November, Stephen Miran, chief economic adviser to President Trump, claimed that the dollar’s status as the reserve currency is a ‘burden’ contributing to chronic trade deficits.

Dollar and treasuries: Still safe havens?

The paper, which is believed to have influenced US policy, concluded that the US should deliberately weaken the dollar and compel holders of US sovereign bonds (known as treasuries) to fund its defence spending. Financial market turbulence since ‘Liberation Day’ suggests that foreign investors are not convinced, effectively questioning the role of treasuries as the global reserve asset and driving up US debt refinancing costs.

The head of Congress’ fiscal watchdog has warned that this crisis could mark a tipping point in investor willingness to hold US assets, potentially sparking a capital flight crisis. China’s recorded treasury holdings have dropped below those of the UK for the first time since 2000, a sign the country is diversifying away from US assets.

Last May, Moody’s stripped the US of its final triple-A credit rating, citing rising government debt and a growing budget deficit. For the first time in history, the US no longer holds a top rating from any of the three major credit rating agencies. “Rising protectionism and economic nationalism may lead to a gradual fragmentation of financial markets, where capital becomes more regionally concentrated rather than flowing freely across borders,” says Supriya Kapoor, who teaches finance at Trinity Business School.

“Financial institutions may face increased regulatory divergence, higher compliance costs, and restrictions on cross-border mergers, acquisitions and operations, all of which could dampen the efficiency and profitability of global financial services.

It is no surprise that in such a precarious geopolitical landscape, international organisations like the WTO have come under fire as outdated pillars of multilateralism and a rules-based trading regime in an increasingly unilateral world. Pessimists warn that the trade war could be the final nail in its coffin. “It may well be the end of the WTO as we know it. The WTO has failed to manage a fair trade regime, despite its high aspirations,” says Calhoun, adding: “The proliferation of non-tariff trade barriers has raged on, with the level of complaints surging from many countries, and mostly aimed at China.” The Trump administration has hinted at a possible withdrawal from the organisation, a radical shift from traditional policy, given that the US has historically been the main promoter of open markets. Such a move would be far from shocking though, since unilateral US tariffs violated the WTO’s core principle of the most-favoured nation (MFN) treatment, which some experts interpret as de facto US withdrawal.

“Their idea of a trade deal is not to create opportunities, but to dictate outcomes,” says Craig VanGrasstek, a trade policy expert who has written a history of the organisation, adding that current US policy undermines the MFN rule. “The US leaving would be bad for the organisation, but the US staying as a spoiler would be worse,” VanGrasstek argues, adding that there is a possibility that other members may try to expel the US. Optimists, however, believe that the tumult caused by the trade war could reinvigorate the WTO by accelerating long-awaited reforms, notably of its dispute settlement mechanism. A US withdrawal would also push other countries to work together, with BRICS members and the EU taking the lead. “China sees a lot of value in the WTO. It’s the framework through which it trades with the world,” Poitiers says. “If countries representing 85 percent of global GDP still want to use the system in its current form, it can chug along for quite a while.”

The WTO has failed to manage a fair trade regime, despite its high aspirations

The role of trade has fluctuated over time, with protectionism making an ugly comeback every few decades. Many historians draw parallels to the 1930s, when the infamous Smoot-Hawley Tariff Act raised US tariffs, prolonging the Great Depression and fuelling populist forces that led to the Second World War. However, unravelling decades of global economic integration would be much more difficult today. A decoupling of the Chinese and US economies in particular would have major consequences for the global economy, from higher inflation rates to lower growth. “Smoot-Hawley was very destructive, but didn’t increase tariffs to unprecedented heights because average tariff rates were very high back then. Current US tariffs are enacted in a period of unprecedented economic interdependence. The effects are in a league of their own,” Poitiers says, adding: “The US is withdrawing as a leading force of globalisation, but it will likely pay a high price for that.”

The real threat is not the end of globalisation, but a fragmentation of the current system into competing trading blocs, warns VanGrasstek. What is worse, we might be at an unprecedented junction of history where no superpower has an incentive to maintain an open trading system, VanGrasstek argues, given that even China’s economy is becoming less exports-driven. “Both the US and China have very strong incentives to move towards bloc formation, and that is where we may be headed. That means that we are moving into a 1930s style system, and that is very dangerous.”

Leading innovation in rare disease treatment with plant-based drug crofelemer

Posted on July 28, 2025 by itsupport

Massimo Radaelli, PhD, is a European pharmaceutical industry leader and entrepreneur who has devoted more than 30 years to the innovation of therapies to treat rare diseases. He is President and CEO of Napo Therapeutics, a pharmaceutical company established in Milan, Italy, in 2021 by California-based Jaguar Health to develop and commercialise the plant-based drug crofelemer in Europe, with a particular focus on rare gastroenterological diseases. Radaelli explained to World Finance why a drug sustainably derived from an Amazon Rainforest tree may provide a novel therapeutic option for patients with intestinal failure due to microvillus inclusion disease and short bowel syndrome.

First of all, congratulations on your recent awards. What pleases you most about the recognition?
I am extremely honoured to have been recognised by European CEO as ‘2024 CEO of the Year in the Pharmaceutical Industry,’ and also to have been named ‘Best European Bio-pharmaceutical Innovator CEO of the Year 2024’ by The European. I believe this latest award – from European CEO (sister brand of World Finance) – recognises once more, at an international level, my lifelong commitment to the research and development of orphan medicines for the care and therapy of patients with rare diseases. I am grateful both for the recognition and to have been able to spend decades focused on helping patients suffering from rare diseases around the world.

Can you tell us about intestinal failure?
Intestinal failure is a condition where the intestines cannot adequately absorb the necessary water, macronutrients – carbohydrates, protein and fat – micronutrients, and electrolytes sufficient to sustain life. Patients with intestinal failure due to the rare diseases microvillus inclusion disease (MVID) and short bowel syndrome (SBS-IF) suffer from devastating diarrhea and dehydration caused by these debilitating, lifelong conditions and often require total parenteral nutrition (TPN) up to seven days a week for more than 12 hours a day.

The Croton lechleri sap…has a long history of medicinal use by indigenous peoples

TPN is a medical feeding method where nutrients are delivered directly into a vein through an IV line, bypassing the digestive system, and chronic TPN use carries the risk of morbidity, infections, metabolic complications, liver and kidney problems and neurodevelopmental delay. Limited therapeutic options exist for SBS-IF beyond TPN, and there are no approved drug treatments for MVID.

MVID and SBS-IF are devastating, lifelong conditions. The biggest impact one can have on a patient with intestinal failure is reduction in the quantity and time of TPN. We are always concerned about the quality of life of patients with MVID and SBS-IF, most of whom are children. They are not able to eat or drink and spend most of their waking hours hooked up to an IV.

Can you explain what type of product crofelemer is, and why it may provide a novel therapeutic option for patients with intestinal failure due to MVID and SBS-IF?
Crofelemer is a plant-based drug sustainably derived from the red bark sap of the Croton lechleri tree – a rapidly growing tree species common in tropical forests of Colombia, Ecuador, Peru and Bolivia. The Croton lechleri sap, commonly known as sangre de drago – which translates to ‘dragon’s blood’ in Spanish – has a long history of medicinal use by indigenous peoples. Crofelemer works by reducing chloride ion secretion into the gut lumen and normalising the electrolyte and fluid balance. It is the active ingredient in Jaguar Health’s FDA-approved prescription drug for the symptomatic relief of noninfectious diarrhea in adults with HIV/AIDS on antiretroviral therapy, and in Jaguar Health’s FDA conditionally approved prescription drug for treatment of chemotherapy-induced diarrhea in dogs. As announced in April, the initial results of an ongoing investigator-initiated proof-of-concept trial of a novel liquid formulation of crofelemer in the UAE show that crofelemer reduced the required TPN and/or supplementary intravenous fluids – collectively referred to as parenteral support – in pediatric patients with intestinal failure due to MVID and short bowel syndrome by up to 27 percent and 12.5 percent respectively. This data also showed crofelemer reduced stool volume output and/or frequency of watery stools, and increased urine output – an indicator of improved nutrient oral absorption.

We are very excited about these initial results. While short bowel syndrome affects approximately 10,000 to 20,000 people in Europe and roughly the same number in the US, MVID is an ultra-rare condition – with an estimated prevalence of just a couple of hundred patients globally. Given this situation, initial results in a very small number of MVID patients showing benefit with crofelemer may allow us to explore pathways for expedited regulatory approval for this indication, including the European Medicines Agency’s PRIME programme and the FDA’s Breakthrough Therapy programme.

Crofelemer is currently the subject of five clinical efforts for MVID and SBS-IF in the US, EU and Middle East regions – two placebo-controlled Phase two studies that Napo Therapeutics is managing, and three investigator-initiated trials. Additional proof-of-concept results from investigator-initiated trials are expected throughout 2025.

Financial volatility and pensions: beyond market noise

Posted on July 25, 2025 by itsupport

The volatility of financial markets has ceased to be a concern exclusive to sophisticated investors. In today’s context of global interdependence, any stock market fluctuation reverberates directly through the lives of millions. One of the most sensitive and least visible links in this chain of volatility is its impact on pension funds. Indeed, the fate of future retirees is increasingly tied to the compass of global markets.

Falls, recoveries and uncertainty
On April 2, a surprise announcement of a broad package of reciprocal tariffs affecting nearly all major trading partners was unveiled in the US. The market reaction was immediate. The S&P 500 fell by 4.8 percent, the Nasdaq plunged by six percent and major European and Asian markets followed the same downward trajectory. Shares of technology giants such as Apple, Nvidia and Tesla recorded losses between five percent and nine percent. These declines reflected investor concerns over the potential for a broad-based trade conflict.

The fate of future retirees is increasingly tied to the compass of global markets

A week later, on April 9, President Trump introduced a tactical adjustment: a 90-day pause on these trade measures and a reduction to 10 percent of the initially announced tariffs, triggering a significant market rebound. However, the truce was only partial: China was excluded and subject to a 125 percent tariff, highlighting a strategy of selective negotiation that introduced both flexibility and uncertainty.
Around the same time, the President’s criticism of Federal Reserve Chair Jerome Powell intensified, particularly over the pace of interest rate adjustments. These public statements had noticeable effects on the markets, at times contributing to volatility. The Fed’s traditionally independent role – long seen as a foundation of US economic stability – faced heightened scrutiny.

Yet, the most consequential episode to date occurred on May 12, when the US and China negotiated a 90-day commercial truce. The agreement dramatically reduced bilateral tariffs and triggered another equity rally. In a single session, the Nasdaq jumped 4.3 percent, and the S&P 500 gained 3.2 percent. The dollar strengthened, the yuan appreciated and global markets rejoiced.

Is this the end of volatility? Hardly. Rather than isolated events, these developments point to the broader uncertainty introduced by a new, more assertive US approach to trade policy – one marked by bold negotiation strategies aimed at achieving more favourable outcomes for the American economy.

Investments with vulnerabilities
In this context, it is important to recall that pension funds allocate a significant portion of their assets to equities, even when regulations limit those investments. In Mexico, pension fund administrators (Afores) have 19.2 percent of their assets invested in equities, of which 70 percent is in foreign markets. For the funds targeting younger workers, that share rises to 23.7 percent.

This means that although pensions are inherently long-term instruments, short-term market shocks can cause considerable impacts. In April, for example, the Afores recorded a monthly effective return of –0.6 percent, equivalent to an annualised –6.9 percent. However, the outlook is not entirely negative. Year-to-date (YTD) returns as of April, even before the rally triggered by the US-China agreement, stood at a positive effective return of 3.7 percent, or nearly 12 percent annualised. In fact, since the inception of the Mexican Afore system in 1997, the real annual return has averaged 4.8 percent (or 10.5 percent in nominal terms), despite various financial crises over the decades: the 1997–98 Asian episode, the 1995–2002 tech bubble, the 2008 real estate global financial crisis driven by subprime mortgages in the US, the 2010–13 European sovereign debt crisis, the 2020 pandemic-induced market collapse, and now, the turbulence caused by President Trump’s trade policies.

Moreover, even in the short term, not all funds experience the same level of exposure. The Target Date Fund, managed by the Afores and designed for workers born after 2000, posted a monthly return of –0.5 percent in April, but a YTD effective return of 4.2 percent, equivalent to an annualised return of over 13 percent. In contrast, the Target Date Fund targeting individuals aged 60 and above was barely affected, recording a –0.05 percent monthly return and a 5.1 percent YTD return, equivalent to over 16 percent annualised. These differences reflect the generational structure of the Mexican system: those closer to retirement are better shielded from volatility through a higher allocation to safer assets, such as government bonds.

The good news is that Mexico’s change in scheme of Target Date Funds has proven itself effective. The bad news is that despite the recent market recoveries, the international context remains complex and uncertain, potentially hindering long-term strategies as trade tensions become structural.

Markets to the global economic model
What is at stake is not merely the health of quarterly earnings or stock performance. It is the very model of economic globalisation that has underpinned global growth for decades. The protectionist policies adopted by the US, while nuanced in their implementation, challenge core principles of free trade.

Pensions rely on sustained economic growth and positive real long-term returns

Even after the truce with China, average US tariffs remain at levels not seen since the 1930s. According to estimates from the Budget Lab at Yale, the average US tariff now stands at 16.4 percent following recent adjustments. Trading partners, including Europe, have responded by hardening their own trade barriers. The result: an international climate of mounting tension and reduced cooperation.

For now, the International Monetary Fund (IMF) has revised down its forecast for global trade growth in 2025 to just 1.7 percent. It is estimated that this year global GDP growth will outpace trade growth, implying that trade as a share of world output will decline. In this environment, global economic growth is at risk. GDP is projected to grow by just 2.8 percent in 2025, down from 3.3 percent in 2024. The US has already reported a real GDP contraction of 0.3 percent in the first quarter. Trade, historically a key engine of expansion, is now being undermined by the closing of economic borders.

The monetary policy dilemma
Moreover, the Federal Reserve has faced pressure from President Trump to lower interest rates. The objective is clear: to support economic growth and bolster stock market performance. However, Jerome Powell has resisted these calls, stressing the importance of carefully monitoring inflation, especially in the face of cost increases driven by tariffs.

This dilemma between orthodox monetary policy and short-term political considerations is becoming more common in advanced democracies. What is at stake is not merely the interest rate level but the institutional autonomy of central banks. This tug-of-war also affects markets, contributing to heightened uncertainty.

Pensions and productivity
Amid this scenario, it is worth returning to basics: pensions rely on sustained economic growth and positive real long-term returns. Achieving this requires more than short-term stock rallies: it requires investment in human, physical and technological capital.

Productivity – not protectionism – is the key to securing dignified retirements. If the world falls into a cycle of diminished cooperation, reduced trade, and heightened uncertainty, the effects will be more lasting than any temporary Nasdaq recovery. At the end of the day, international trade, by expanding markets, promoting specialisation and increasing competition, foster economic growth by creating jobs, also lowering production costs, increasing innovation and technology transfer, and therefore, improving living standards.

There is no doubt that the performance of the stock markets depends on the growth of global consumption and investment in world economic development. And the recent decades showed that the widespread surge of consumption in all regions came hand-in-hand with the expansion of international trade.

Mexico’s pension system has demonstrated resilience, achieving a 32 percent increase in assets over just two years, reaching $344.5bn as of March 2025. This is a good sign, but complacency is not an option. Global economic policy is shaping the structural conditions that will determine the viability of future pensions.

A long-term perspective
Recent market volatility is not accidental. It reflects a deeper transition in the rules of the global economic order. In this context, the Afores and pension funds worldwide face the challenge of navigating uncertainty with a long-term perspective, recognising that institutional stability, international trade, and productive investment remain the cornerstones of any viable retirement system, because they are the foundation of sustained economic growth.

It is the responsibility of long-term actors, such as pension systems, to remain anchored in the long term, because ultimately, this is not just about markets – it is about the people who, after a lifetime of work, expect to retire with dignity.

Redefining the banking experience in Latin America

Posted on July 25, 2025 by itsupport

In a global landscape where digital transformation is no longer a competitive advantage but a necessity, Banco Popular Dominicano has cemented its leadership as the most digitally advanced financial institution in the Dominican Republic. With more than six decades of experience serving generations of Dominicans, Banco Popular blends tradition with bold innovation, standing out as the institution that best understands the times, earning the trust of both traditional and forward-thinking customers alike.

With a clear and strategic vision, Banco Popular has achieved a milestone: 88 percent of its transactions are now conducted digitally, supported by a robust ecosystem of mobile applications and digital platforms designed to make users’ lives easier. In the past year alone, its flagship mobile application, App Popular, registered over 100 million transactions – evidence of the bank’s rapid digital adoption.

Backed by the ambitious personal banking initiative; ‘A more innovative, more human, and closer banking experience,’ Banco Popular has undertaken a comprehensive transformation of its branch network, positioning itself at the forefront of modern banking in Latin America. This bold redesign has transformed its branches into more spacious, efficient, and technologically advanced environments that offer customers a more agile and personalised experience, promoting self-service alongside tailored attention. The bank’s aim is to ensure high-quality customer interactions by dedicating more time to strengthening relationships, allowing clients to see each banker as a trusted financial advisor.

Delivering greater value to the customer
As a result of this transformation, wait times in branches have consistently improved by 50 percent, offering a faster experience without compromising service quality. Additionally, routine services have been redirected to the teller area, streamlining internal office flows and allowing staff to focus on more value-added consultations for customers.

The efficiency gains are reflected in the bank’s performance, as it now boasts the highest Net Promoter Score (NPS) in the Dominican banking sector. By the end of 2024, it reached a historic general NPS of 70 points, and an outstanding 90 points specifically for branch service. Customers now rate their experience immediately after receiving service via QR codes available at every branch, resulting in an impressive 98 percent satisfaction rate. Banco Popular has also solidified its leadership in payment solutions, being the first in the country to integrate Google Pay, Apple Pay, and Garmin Pay with its credit and debit cards. Standout products include the Visa ISI and Mastercard Infinia cards, and the BIZ portfolio for business clients. The Mastercard United MileagePlus card was also relaunched with an enhanced value proposition.

A more human and strategic model
Unlike other digital transformation models that reduce human interaction, Banco Popular has embraced a unique approach: ‘More digital, more human.’ This philosophy is embodied in a customer service model that prioritises relationships, guidance, and closeness – even in digital settings. Today, more than 100 financial officers provide remote assistance, doubling the number of customers served by personal advisors.

The bank has also migrated non-face-to-face services to a highly efficient internal service centre, further reducing wait times and enhancing the customer experience. This strategy enables higher-quality in-branch interactions, turning each meeting into an opportunity to deepen the client relationship. In this model, each officer is not merely a manager, but a true financial advisor.

Banco Popular has also demonstrated an ability to understand and meet evolving customer needs – from young people purchasing their first home to entrepreneurs seeking capital. Accordingly, the bank has expanded its presence beyond traditional branches by deploying business units directly within real estate agencies, car dealerships and retail stores. This proximity allows them to be present at critical moments in customers’ financial lives. The success of this transformation is not measured solely by efficiency or digitalisation metrics. It is also reflected in the strength of the bank’s organisational culture, driven by professionals committed to the economic and social development of the country. At Banco Popular, we embrace the challenge of constantly evolving for the benefit of our customers and the country’s development.

Recognised financial excellence
In the ‘Digital and Multichannel 2024’ study conducted by Finalta (a McKinsey & Company subsidiary) – which evaluates and compares the performance of over 200 banks across 50 countries – Banco Popular Dominicano ranked above the Latin American average and even outperformed global digital leaders in customer activity at ATMs and branches, product sales, officer productivity and new customer acquisition.

Additionally, having been recognised for four consecutive years as the ‘Most Digital Bank in the Dominican Republic’ by the Superintendency of Banks’ Digital Banking Ranking, and having received numerous international accolades from institutions such as World Finance, The Banker, Latin Finance and Euromoney, Banco Popular demonstrates that the future of banking lies not only in technology, but in its thoughtful integration with empathy, strategic insight, and long-term vision.

Unlocking Nigeria’s potential

Posted on July 24, 2025 by itsupport

There is good reason why Nigeria is known as ‘the giant of Africa.’ Boasting vast land, rich resources and a vibrant economy, the West African nation has established itself as a rising global power. Despite its size and resilience, however, Nigeria is certainly not immune from economic shocks. 2024 was a challenging year on many fronts. The global economy was rocked by trade tensions and geopolitical uncertainty, while tight monetary conditions constrained developed markets. Internally, Nigeria also had to contend with persistent inflationary pressures, currency volatility, high interest rates and the socio-economic consequences of bold governmental reforms. Yet, amid these challenges, resilience has emerged as a defining theme for the Nigerian economy.

In fact, Nigeria’s economy grew by 3.4 percent in 2024, marking the country’s fastest rate of economic growth in a decade, excluding the 2021–22 Covid-19 rebound. While inflation remains stubbornly high, this recent acceleration in economic activities may give some hope that the nation may now be on a path towards sustainable growth.

At Zenith Bank, we understand that challenges often create the impetus for innovation and positive change. Just as the nation’s economy has demonstrated adaptability and strength in the face of significant macroeconomic headwinds, Zenith Bank is proud to see opportunity where others see challenge. In this fast-paced economic environment, we do not merely react to the shifting landscape – we anticipate, adapt and act with agility. This proactive approach helps Zenith Bank to stay at the forefront of emerging trends, and to best serve our customers as their needs and requirements change. In a year when many financial institutions have been grappling with rising costs and constrained liquidity, Zenith Bank has shown unmatched financial discipline, robust asset quality and investor confidence, and has met and exceeded the ₦500bn ($315m) recapitalisation target set by the Central Bank of Nigeria (CBN). By accelerating our digital transformation, sharpening our strategic priorities and enhancing the customer experience, we are proud to be driving positive change in Nigeria’s ever-evolving financial landscape.

Digital evolution
One of the most profound changes of the last few years has been the rapid development and uptake of Artificial Intelligence (AI) technologies. Indeed, 2024 was a landmark year for AI, marked by new breakthroughs and widespread adoption across industries. AI is already reshaping the financial services sector, with banks using the technology to enhance customer services, prevent fraud and better manage risk. According to the McKinsey Global Institute, generative AI could add between $200bn and $340bn to the global banking sector each year, largely through increased productivity. Given the efficiency gains that AI can enable, it is no surprise that financial institutions are racing to implement this new technology – but this is an important transformation that banks need to take care to get right.

Resilience has emerged as a defining theme for the Nigerian economy

At Zenith Bank, we are committed to delivering innovative, customer-centric solutions that meet the evolving needs of our customers in the digital age. With this in mind, we have successfully integrated AI into our Customer Relationship Management (CRM) system to enhance response times and improve customer service delivery. We have also embedded AI capabilities into our anti-fraud system, which is strengthening the protection of our customers’ funds and enhancing fraud detection.

To deepen customer engagement, Zenith Bank is also deploying advanced tools that track customer journeys across different digital touchpoints, helping to refine the design and delivery of hyper-personalised solutions. The bank also has its own AI-powered chatbot, named ZIVA (Zenith Bank Intelligent Virtual Assistant), which can offer banking services on WhatsApp and other social media platforms. This allows customers to access services in a way that best suits their needs, making bill payments, fund transfers and account management simpler and more accessible than ever before.

One of Zenith Bank’s most significant milestones in 2024 was the successful completion of its digital transformation journey. This transformation was not merely about technology upgrades – it represented a holistic revamp of the bank’s customer engagement channels, internal processes and operational backbone. By leveraging AI, data analytics and cloud-based platforms, we enhanced the speed, reliability and personalisation of our services.

These new and improved capabilities help us to provide seamless, hyper-personalised banking experiences for all of our customers, and place us at the very forefront of digital banking in Nigeria and across our African markets.

Small business boom
Nigeria boasts a thriving entrepreneurial culture, with small-to-medium businesses contributing 48 percent of the national GDP. SMEs are the growth engine behind Nigeria’s developing economy, employing over 80 percent of the country’s total workforce and keeping day-to-day business activity moving. However, despite the size of the SME sector, small-business owners continue to face a myriad of challenges, including regulatory hurdles, high operating costs and limited access to finance.

The financial services sector has a significant role to play in improving inclusivity

At Zenith Bank, we understand the challenges faced by SMEs, and are passionate about empowering small businesses to thrive, especially in testing times. In 2021, the bank launched a trailblazing new product, called SME Grow My Business (SME-GMB). Specifically designed for small businesses, SME-GMB is an innovative platform that offers a range of benefits, including access to free digital tools and services that can help business owners and entrepreneurs to take the next step in their business journey. Outside of the SME-GMB platform, Zenith Bank offers a range of digital products – such as online payment gateway GlobalPay and e-commerce solution ZiVA Stores – which can help SMEs to carry out transactions quickly, efficiently and on the go.

Beyond access to finance, one of the most significant issues facing small businesses is the need to increase visibility in what is becoming an increasingly competitive and demand-driven market. To help our business customers combat this issue, Zenith Bank has partnered with Google to offer Google Business Profile (GBP), which creates a free business profile for users, allowing them to easily connect with potential new customers across Google Search and Maps.

The platform allows businesses to effortlessly share information, receive reviews, provide location directions and contact details, enhancing their visibility and accessibility for new and existing customers. It also provides subscribers with a range of enhanced data and analytics, giving SME owners useful insights into how their businesses are performing.

What’s more, GBP subscribers can also enjoy access to regular training sessions on adopting and optimising digital marketing strategies. By equipping SMEs with both the knowledge and tools that they need to thrive, Zenith Bank is playing its part in helping to create a healthy business ecosystem in Nigeria.

Driving financial inclusion
Along with its efforts to support the nation’s flourishing network of SMEs, Zenith Bank is equally committed to driving financial inclusion in Nigeria. Despite significant progress over the past decade, access to financial services remains a pressing challenge, particularly for women and those living in rural communities. According to Women’s World Banking, only 47 percent of Nigerian women accessed formal financial services in 2023, compared to 58 percent of men, highlighting a clear gender gap when it comes to financial inclusion.

Zenith Bank recognises the critical role that financial inclusion plays in driving economic growth, reducing poverty and improving living standards. With this in mind, we have launched a range of products and services specifically designed to cater to the unbanked and underbanked population, with a view to driving further financial inclusion across Nigeria.

Our agency banking programme, ZMONEY, was launched to cater to the financially excluded population, and supports wider government efforts to reduce levels of poverty in Nigeria through financial education and inclusion. The programme brings banking services closer to customers in harder-to-reach communities, through a network of agents who can deliver basic financial services such as account opening, cash deposits, withdrawals, bill payments and more. Since launching five years ago, the agency programme is now in operation across 774 local government areas, with over 120,000 individual agents bringing vital banking services to Nigerians living in traditionally underserved and excluded areas. Through partnering with third parties, our agents are able to operate out of a range of accessible locations, including convenience stores and petrol stations. Over five million accounts have been opened through our agents since the launch of the programme, and they have enabled over 165 million transactions. For those without access to a physical bank branch, our agency business offers a practical way to access a range of vital financial services.

New technologies are another useful tool in breaking down barriers to financial inclusion. Zenith Bank has recently introduced its digital wallet, eaZybyZenith, which caters to those who have traditionally been excluded from accessing financial services. Designed with accessibility in mind, the wallet offers a seamless onboarding process, and a range of convenient remote banking services. With eaZybyZenith, customers can use their mobile phones to make deposits and withdrawals, transfer funds and pay bills, and even request physical or virtual payment cards. The app is designed to be simple and easy to use, ideal for day-to-day transactions. By reducing barriers to entry for new customers and previously unbanked individuals, eaZybyZenith is helping to unlock financial freedom and drive financial inclusion in more isolated communities.

At Zenith Bank, we are also acutely aware of the financial inclusion gender gap in Nigeria, and are committed to improving access to banking services for women. We understand that female entrepreneurs still face significant barriers, and the financial services sector has a significant role to play in improving inclusivity and supporting women-led businesses. Zenith Bank is committed to female empowerment, and seeks to provide women with better opportunities to manage their finances, build assets and secure their economic future. In 2019, the bank launched Z-Woman, a unique loan product exclusively for women-led businesses. Available only to businesses where a woman is the major shareholder, Z-Woman offers competitive interest rates for businesses across all sectors. We are proud to offer this product, which demonstrates our ongoing commitment to female empowerment and supporting women entrepreneurs.

Making a difference
In today’s world, customers are increasingly looking to make financial choices that align with their own values and principles. According to research commissioned by CRIF, over half of US and European consumers want their banks and insurers to offer greener products and services, and a significant portion would switch providers if they discovered that their existing provider was not aligned with their values. This growing consumer interest in ethical, value-led businesses cannot be ignored by the financial services sector – an industry which has a significant role to play in supporting the transition to a more inclusive, sustainable world.

We continually invest in talent development, diversity and employee wellbeing

At Zenith Bank, we recognise that ethical conduct and responsible banking are fundamental to building trust and long-term relationships with our customers, stakeholders, and the communities we serve. In line with this, we have strategically embedded sustainability and social values at the heart of our business philosophy, and are committed to boosting prosperity across Nigeria.

This community-centred approach is reflected in the bank’s investments in social projects across the country, including investments in educational initiatives, health outreach programmes and vocational training, reaching thousands of beneficiaries every year. The bank has also renovated and upgraded the Iga Idunganran Primary Healthcare Centre on Lagos Island, which provides crucial care to the community. The upgrade introduced modern amenities and state-of-the-art medical equipment, as well as expanding capacity at the centre in order to cater to the growing healthcare needs of Lagos Island citizens. With the addition of new, specialised dental, eye and ENT clinics and tuberculosis screening centres, the centre is now better equipped to meet the needs of the community.

Along with our investments in communities, at Zenith Bank we are also conscious of our environmental impact. Our financing strategy has increasingly focused on green and environmentally responsible investments, as we have made sustainability a core tenet of our company. We support clean energy, sustainable agriculture, waste recycling and climate-smart infrastructure, and are always looking for ways to implement these principles. Our restoration of the Iga Idunganran Primary Healthcare Centre included the installation of a 34 Kilowatt-capacity solar energy supply, to assist the hospital in reducing its diesel usage. By promoting the use of sustainable energy in our external investments, Zenith Bank is leading by example when it comes to CSR practices.

Core values
For businesses of all sizes, principles need to come from within. Internally, our values are at the heart of what we do, and environmental and social principles guide our day-to-day operations at Zenith Bank. We understand that long-term success must go beyond profitability to include positive outcomes for the communities we serve and the environment around us. In line with these values, we have committed ourselves to the United Nations Sustainable Development Goals (SDGs), and fully comply with internationally established standards and guidelines such as those set by the World Bank, United Nations Global Compact and IFC Performance Standards.

Operationally, we have taken concrete steps to reduce our carbon footprint. We are expanding the deployment of solar-powered branches and ATMs, optimising energy use, and incorporating resource-efficient technologies across our facilities. These efforts have not only reduced our carbon emissions, but have also positioned Zenith Bank as a key player in Nigeria’s low-carbon transition.

As well as being conscious of our environmental impact, at Zenith Bank, the wellbeing of our employees is another core priority. We continually invest in talent development, diversity and employee wellbeing, recognising that a motivated, inclusive workforce is essential to our success. Staff from all departments are trained on environmental, social and governance (ESG) principles and sustainable finance, while our inclusive policies ensure gender balance and equitable opportunity across our business. Our robust whistleblower framework fosters accountability, while regular ethics training reinforces an expectation of integrity within the organisation. From fair and open recruitment practices, to structured leadership development programmes, we are proud to cultivate a culture that mirrors our commitment to responsible, people-centric banking. This comprehensive approach ensures that Zenith Bank is not only a financial services provider, but a values-driven organisation that leads by example when it comes to ethical banking and sustainability. Across every level of our organisation, we are proud to have an empowered workforce that is capable of championing sustainability in everything that they do.

Navigating uncertainty
Zenith Bank’s core principles and clear strategic focus have set solid foundations for success. But these are turbulent times for the global economy, and many financial institutions are feeling exposed to a vast array of risks. Across the globe, banks are having to contend with a challenging set of macroeconomic conditions, with geopolitical tensions creating a highly unpredictable business environment. Nigeria also faces a myriad of challenges on the home front, with high inflation, currency volatility and supply chain disruption all putting pressure on the nation’s economy. In this volatile and unpredictable climate, banks will need to adopt prudent risk management strategies to identify and mitigate emerging risks, both at home and abroad.

The bank is emerging as a leading financial institution across West Africa

In the face of this heightened economic uncertainty, Zenith Bank has introduced a proactive and localised risk management approach, tailored to its unique business model and strategy. To navigate the challenges posed by high volatility, inflation, oil price dependency and regulatory shifts, the bank has implemented a combination of carefully considered strategies. These include a high-yield asset focus, effective liability cost management, active asset and liability management, and data-driven decision-making. Our risk management strategies are fully compliant with regulatory requirements, and incorporate the ESG principles that are at the heart of our business. By optimising assets and income while controlling liability costs, the bank has been able to maintain substantial net interest margins and profitability, demonstrating Zenith Bank’s resilience in the face of economic challenges.

To stay ahead of the curve, the bank continuously monitors geopolitical and economic developments, and proactively adapts its strategies depending on emerging data and trends. Zenith Bank has incorporated a number of digital innovations into its risk management approach, allowing it to improve efficiency and ensure value for money, ultimately giving the bank a competitive advantage when it comes to mitigating emerging risks. By employing these proactive risk management strategies, the bank is well-equipped to navigate Nigeria’s economic and regulatory landscape, ensuring strong oversight of its core risk areas and compliance with global standards.

Looking ahead
Despite the challenges posed by the current macroeconomic environment, the future looks bright for Zenith Bank. The firm has established itself as one of Nigeria’s most profitable banks, and has made banking more accessible and convenient for customers across its home market. Beyond these borders, the bank is emerging as a leading financial institution across West Africa, with a growing presence in Ghana, Sierra Leone and the Gambia. Further expansion is already underway, and is not only limited to the African market. The bank already boasts a presence in the UK, France and the UAE, and has a representation office in China. These foreign subsidiaries contribute an impressive 18 percent of the bank’s total gross revenue, and scaling these subsidiaries is a key area of focus over the medium term. In fact, with ₦140.4bn ($88.5m) specifically earmarked for global market expansion, Zenith Bank is set to pursue a bold plan for international growth over the coming years.

The bank’s current expansion strategy focuses primarily on Francophone Africa, with a two-pronged approach targeting the West African Economic Monetary Union (WAEMU) and Central African Economic and Monetary Community (CEMAC) regions. In the WAEMU region, Zenith Bank plans to start with Cote d’Ivoire, leveraging its significant economy, before expanding to Senegal and other high-growth markets. Similarly, in the CEMAC region, the bank will use Cameroon as a gateway, utilising the unique single licence approach to enter other countries in the region.

With the opening of Zenith Bank Paris in November 2024, the bank has already taken a significant step towards realising its global expansion plans. Over the next few years, Zenith Bank aims to establish a significant presence across major cities on the continent and beyond, solidifying its position as a leading financial institution in West Africa and a major player in the global banking industry.

Iberdrola: a benchmark for shareholder engagement

Posted on July 24, 2025 by itsupport

Being the largest electricity company in Europe and one of the two largest worldwide, Iberdrola is the holding company of a multinational group present in Spain, the US, the UK, Australia, Mexico, Brazil, Germany, France and other member states of the European Union, among other countries.

The company firmly believes that electrification is a great opportunity to increase energy autonomy and security, competitiveness, industrialisation and the generation of employment, at the same time as protecting the environment and human health.

In March 2024, Iberdrola announced an investment of €41bn by 2026 to help create a secure and sustainable energy future for all. Net profit reached €5.6bn and EBITDA reached €16.8bn in 2024, driven by record investments of €17bn. The next Capital Markets Day, where the company will update its investment outlook, will take place in September 2025.

Its business model is focused on the sustainable creation of value, in accordance with the provisions of the ‘By-Laws’ and with the corporate policies approved by the Board of Directors, including one of the first engagement policies on the international scene.

Tenth anniversary of a reference policy
The company’s ‘Ongoing Shareholder Engagement Policy’ was initially approved in 2015, upon a proposal from a committee made up of professionals with special qualifications and experience in corporate governance and shareholder movements. According to that policy, shareholder engagement occurs not only during the general meeting but throughout the year via a continuous and inclusive dialogue to understand the interests of shareholders.

Shareholder engagement occurs not only during the general meeting but throughout the year

To this end, the company maintains permanent communication channels and instruments, which enable it to identify and respond to the opinions and concerns of shareholders, developing reciprocal and continuous feedback that contributes to decision-making that is more informed and aligned with the corporate interest.

In this continuous relationship with the shareholders, the company attends to the entire shareholder base, resulting in meetings held with around 1,600 investors and thousands of contacts with retail shareholders in 2024. From the viewpoint of the shareholders, engagement extends and strengthens their rights to information and participation recognised in applicable law, as shown by the following measures that the company has developed.

Engagement principles
The ‘Ongoing Shareholder Engagement Policy’ fosters ongoing interaction that is not limited to the holding of the general meeting, with the aspiration of maintaining an effective and constructive relationship throughout the year, based on the following principles.

>Transparency: Endeavour to ensure transparency through clear, continuous and responsible communication, sharing truthful, appropriate, relevant, correct, complete, reliable and useful information.
>Participation: Promote shareholder participation in activities organised throughout the year and actively foster their participation in the general meeting.
>Interaction: Proactively and constantly maintain interaction with the shareholders to forge a sense of belonging through direct, fluid, constructive, ongoing, effective and inclusive dialogue that allows for reciprocal understanding.
>Active listening: Know the decisions, opinions, concerns and proposals of the shareholders in order to understand, assess and respond to them and foster a long-term relationship, contributing to more informed decision-making, a better understanding of the community and the implementation of sustainable conduct.
>Respect: Respect equal treatment in the acknowledgement and exercise of the rights of the shareholders in the same situation and who are not affected by any conflict of interest or competition, and protect the legitimate rights and interests of the shareholders.
>Innovation: Use new technologies to engage shareholders, in order to achieve interaction with as many shareholders as possible and to facilitate access to information, with the commitment to use such technologies responsibly and to continue offering alternatives for shareholders who need or prefer to use non-digital mediums.
>Continuous improvement: Be receptive to and take into account generally recognised good governance recommendations and the accumulated experience and opinions of the shareholders, shareholder associations, institutional investors, proxy advisors and other stakeholders.

Engagement channels
For this 10th anniversary of its ‘Ongoing Shareholder Engagement Policy,’ Iberdrola has launched a new engagement space on the corporate website, as a hub that sets out the company’s main communication and contact channels to inform and listen to the shareholders, fostering their participation in the general meeting as well as in other events and meetings throughout the year.

The company’s corporate reporting is ahead of good governance recommendations

The company makes a commitment to continuously respond to shareholders’ queries and suggestions. Specifically, all shareholders who are registered with the ‘OLS shareholder’s club’ channel may, confidentially or openly vis-à-vis other shareholders and at any time, request such information or clarifications as they deem appropriate, or submit such questions as they consider relevant.

Promotion of participation
The main milestone for this ongoing interaction is the general shareholders’ meeting, which reached a quorum of 75.55 percent of share capital in 2025, the highest level among Spanish peers with a similar shareholding structure, and a support of over 99 percent the total votes in favour and against, further endorsed by the assurance provided by an independent external firm.

These results consolidate an extraordinary average level of participation in excess of 75 percent over the last 10 years, a very high percentage for a company whose shares are 100 percent freely transferable, except for directors and officers subject to shareholding policies. For this purpose, the company allows all shareholders to participate in the general meeting without requiring a minimum number of shares and fosters their participation, so that they can all exercise their rights in an informed and responsible manner, regardless of their place of residence.

Best practices in corporate governance and example of corporate reporting

• Permanent access to information through the engagement channels and specific attention to resolve any questions regarding participation in the general meeting, in addition to the mandatory documentation.
• Extended participation period to facilitate the maximum dissemination of the documents and favour the participation of the highest possible number of shareholders, publishing the announcement of the call to meeting well in advance of the one-month notice period established in applicable law.
• Participation channels which combine innovative electronic systems implemented for real-time authentication via any device with internet access, the telephone and instant messaging channel, and traditional systems based on personalised attention.
• Accessibility measures to allow the participation of shareholders with hearing or visual impairments, such as simultaneous interpreting into Spanish sign language, electronic subtitling and audio description, and it attends to any need raised in this regard via the shareholder’s office.
• Participation incentives such as the innovative engagement dividend which is payable to all shareholders if the quorum reaches at least 70 percent of the share capital.
• Sustainable management of the general meeting with external certification since 2016, pioneering sustainable management practices at corporate events.

All the aforementioned measures have been implemented taking into account the interests of shareholders, internationally recognised best corporate governance practices and the recommendations made in the guidelines of the leading proxy advisors. In turn, in accordance with the ‘By-Laws,’ the shareholders undertake to exercise their rights vis-à-vis the Company and the other shareholders, and to comply with their duties, acting with loyalty, in good faith and transparently, within the framework of the corporate interest as the paramount interest ahead of the private interest of each shareholder and in accordance with law and with the governance and sustainability system.

Thanks to direct knowledge of shareholder and investor expectations as a result of engagement, the company’s corporate reporting is ahead of good governance recommendations and even of legal requirements, as shown by the voluntary publication of the sustainability report 15 years before the statement of non-financial information became mandatory in Spain.

In order to offer a fuller and more transparent view of its governance model, the company has produced its Annual Corporate Governance Report 2024 broadening the legally required content with other material, such as the vision of the corporate purpose and values, the corporate and governance structure of the group, the review of the main milestones and outlook for the previous financial year, the keys to the internal control system for sustainability reporting, and the compliance system of the group’s companies.

This innovation makes it possible to simplify, streamline and facilitate access to all reports on corporate governance that the company voluntarily publishes by compiling here, among other documents, the activities report of the board of directors and of the committees thereof, as well as the report on the application of the ‘Ongoing Shareholder Engagement Policy.’

Cork with a conscience

Posted on July 23, 2025 by itsupport

Cork has been part of winemaking history for centuries, but today it is helping to shape a more sustainable future. At the heart of this transformation is Corticeira Amorim, the world’s largest producer and exporter of cork products, recognised for its commitment to natural solutions with a positive environmental impact. Founded in Portugal in 1870, Corticeira Amorim has grown from a family business to a global leader with operations in more than 100 countries. While its product range now extends from flooring to aerospace-grade composites, it remains best known for its high-performance cork stoppers, producing over 5.3 billion a year.

Yet this is far from an old-world industry. With heavy investment in R&D, technical innovation and sustainability, Corticeira Amorim is redefining the role of the humble cork stopper. New data verified by APCER (the Portuguese Association for Certification) confirms that Corticeira Amorim is capable of producing cork stoppers with a negative carbon footprint – making them not only one of the most natural ways to seal a bottle of wine, but also among the most climate-friendly.

A tree that gives back more than it takes
To understand cork’s environmental superpower, you have to start at the source: the cork oak tree. Native to the Mediterranean and central to Portugal’s unique Montado (cork oak forest), the cork oak is the only tree whose bark can regenerate after harvesting. Far from harming the tree, regular stripping every nine years keeps it healthy and allows it to capture even more carbon.

In fact, cork oak forests not only sequester carbon, but also retain it over long periods of time, as the trees live on average for 200 years. According to an investigation cited by Corticeira Amorim, cork oak forests sequester up to 73 tonnes of CO₂ for every tonne of cork harvested. This makes cork a highly effective natural carbon sink, while also helping to preserve rich biodiversity and prevent desertification. Because the carbon is stored in the bark itself, and not just the tree, harvesting and using cork products doesn’t deplete that storage, it extends it. That is a large part of what makes cork-based products like Corticeira Amorim’s stoppers environmentally positive across their life cycle.

The cork industry produces no cork waste in the traditional sense

Stretching across southern Portugal and parts of Spain, the cork oak forest is a unique agroforestry system dominated by cork oaks. It is a delicate balance of economy, ecology and culture that has been sustained for centuries. But cork is only part of the cork oak forest’s story. This system supports a remarkable level of biodiversity, including endangered species like the Iberian lynx and the Spanish imperial eagle. The cork oak itself is vital in preventing desertification, storing carbon and supporting soil health. Unlike monoculture plantations, the cork oak forest offers a model of sustainable land use, where economic productivity and environmental stewardship go hand-in-hand.

Because of its unique environmental, economic, and cultural importance, there is growing support for the cork oak forest to be recognised as a UNESCO World Heritage Site. This would acknowledge not only its ecological value but also the deep-rooted human traditions that have helped preserve it over generations.

Negative carbon footprints
Corticeira Amorim’s recent carbon footprint studies, based on ISO 14067 standards (a standard that provides guidelines for quantifying and reporting the carbon footprint of a product) and verified by APCER, analysed around 60 percent of its stopper portfolio. The results were striking. From natural corks to advanced technical solutions like Spark Top II, all tested stoppers showed a negative carbon footprint, ranging from –28.7g CO₂ eq per stopper to as much as –56.4g CO₂ eq.

That means that each cork not only requires little energy to produce, but also actively removes more carbon than it emits throughout its production cycle – from bark to bottling. For winemakers, the implications are significant. More than half of the greenhouse gas emissions in the wine industry are attributed to the manufacture and shipping of glass bottles. By using cork stoppers, the overall carbon footprint of the wine packaging can be reduced. Switching to cork becomes one effective way to decarbonise operations, without compromising quality or sensory performance. “Cork stoppers continue to be a strong ally for producers of still, sparkling and fortified wines,” says António Rios de Amorim, Chairman and CEO. “In addition to their unique technical characteristics, they make a significant contribution to reducing the overall carbon footprint of wine packaging.”

Sustainability backed by science
Corticeira Amorim’s footprint assessments cover the entire cradle-to-gate journey of the product, from raw material extraction through to the factory gate. This includes all greenhouse gases, not just CO₂, but also methane, nitrous oxide and others, across each life cycle phase.

This method ensures consistency and comparability across different products and manufacturing models, regardless of regional differences in energy sources, transport or recycling infrastructure. It also allows wine-makers, regulators, and environmentally-conscious consumers to make informed decisions based on reliable, third-party verified data.

António Rios de Amorim adds: “At Corticeira Amorim we work daily to develop more sustainable solutions, in line with a continuous strategy to reduce the environmental impact of our processes, while preserving the unique ecosystem that is the cork oak forest.”

Innovation at scale
Every day, Corticeira Amorim produces around 21 million cork stoppers. With three core market segments, still wine, sparkling wine and spirits, the company’s reach spans both the traditional heartlands of Europe (France, Italy, Spain, Germany and Portugal) and major New World wine regions, such as the US and Chile. To support this vast production while ensuring quality and performance, Corticeira Amorim invests heavily in R&D, particularly in the areas of sensory neutrality and trichloroanisole (TCA) detection. Its cutting-edge screening techniques ensure that cork taint (caused by TCA compounds) is effectively eliminated, allowing producers to benefit from cork’s sustainability without sacrificing consistency. This combination of scale, science and sustainability is why so many leading global wineries now view Corticeira Amorim as an integral part of their climate strategy, not just a supplier.

A circular economy
One of Corticeira Amorim’s defining strengths is its commitment to circularity. The cork industry produces no cork waste in the traditional sense. Every off-cut or by-product is transformed into valuable raw material from stopper-grade granules to insulation, flooring and even aerospace applications.

This model ensures that every gram of cork serves a purpose, often in multiple sectors. Corticeira Amorim’s ‘zero waste’ philosophy from cork means that stoppers don’t just close bottles, they open doors to maximise the potential of the Corticeira Amorim cork solutions business across multiple industries from aerospace to automotive. It is a system built not only on innovation, but also on respect for a natural material that has been serving human needs for generations.

Recycling cork: closing the loop
In addition to repurposing manufacturing by-products, Corticeira Amorim leads and supports extensive cork recycling initiatives across Europe and North America. These programmes invite consumers to return used cork stoppers via wine retailers, restaurants and collection points, giving cork a valuable second life.

While recycled cork can’t be used to make new stoppers, it can be transformed into everything from acoustic panels and sports flooring to shoe soles, designer furniture, and car components. This reuse supports Corticeira Amorim’s circular economy principles, extending cork’s lifecycle, reducing waste and preserving its environmental benefits, including carbon retention.

Corticeira Amorim backs several high-impact recycling projects. In Portugal, ‘Green Cork’ supports native reforestation through cork collection. In France, ‘ÉcoBouchon’ combines recycling with charitable giving and now leads globally in cork collection. Italy’s ETICO programme involves thousands of volunteers and supports social causes through stopper donations. A partnership with NH Hotel Group has placed hundreds of collection bins in hotels across Europe, while a South African initiative adds job creation to the recycling effort.

In the US, the ‘Cork Collective’ continues this global commitment to sustainability. Launched in 2024, the initiative is a collaboration between Corticeira Amorim, Rockwell Group, BlueWell, and Southern Glazer’s Wine & Spirits, focused on collecting and recycling cork stoppers from leading hotels and restaurants across New York. Using electric vehicles, the stoppers are gathered from venues including Gramercy Tavern, Nobu and the Marriott hotel chain, then transported to a specialist facility in Wisconsin where they are cleaned, crushed, and repurposed into products ranging from flooring to aerospace materials.

These programmes not only reduce waste but also help inform consumers about the importance of material recovery and sustainable product choices. By extending the value chain beyond the bottle, they make cork a catalyst for environmental engagement, not just in wineries, but in homes and communities around the world.

Tackling barriers to pension planning in Jamaica

Posted on July 23, 2025 by itsupport

Jamaica, a vibrant and culturally diverse Caribbean country, is known for its reggae music, stunning white sand beaches and warm hospitality. However, beneath the surface of this paradise exists a significant issue that is seemingly going unnoticed: low economic protection for people over 65 years old.

Research in 2022 by the International Labour Organisation (ILO) Regional Office for Latin America and the Caribbean uncovered that more than a third of retirees face a grim reality. The ILO report, Overview of Social Protection in Latin America and the Caribbean states, “The proportion of older people without labour income or pension increased from 31.9 percent in 2019 to 34.6 percent in 2020 and 34.5 percent in 2021. This coverage gap is the highest since 2012.”

This alarming statistic represents a disturbing trend and is further exacerbated by the economic challenges Jamaicans currently face coupled with the traditionally limited access to socio-economic protection nets over the years.

According to the Private Pension Industry Quarterly Statistics published by the Financial Services Commission (FSC) in 2014, Jamaicans enrolled in a private pension arrangement totalled 101,066. Ten years later, the total enrolments stood at 163,958 – a 62 percent increase in enrolments over the period. When one considers that the total working population in Jamaica is approximately 1.3 million, it means that only 12.4 percent of adult Jamaicans have a pension plan. This low adoption is an ominous indicator of Jamaica’s socio-economic well-being.

This reality begs the question, what are the systemic barriers to the broader adoption of pension saving in Jamaica? How can institutions with the ability and capacity work to shift this deep-seated and concerning reality so that there can be more involvement in retirement planning? As part of NCB Financial Group, Jamaica’s largest financial institution (by asset base), NCB Insurance Agency and Fund Managers (NCBIA) plays a vital role in the nation’s financial landscape. This position gives NCBIA unique insight into the economic challenges Jamaicans face. The company is cognisant of some of the nuances that shape the financial behaviour of Jamaicans across savings, investments, insurance, payments, and pensions. From our vantage point in the industry, many of the barriers have been cultural and economic in nature and are at the heart of the slow adoption of pension schemes. Institutions must therefore work intentionally to change this reality as quickly as possible.

Cultural significance of family structure
Jamaicans place a high value on the extended family, where children often provide financial support to their parents in their old age. This cultural norm has been deeply ingrained for generations and has played a significant role in the deprioritising of investments in formal pension schemes. Many Jamaicans believe their children will care for them in their old age, making them less inclined to save for retirement.

While that reality might have held true in times past, many millennials and younger generations now face significant financial obligations of their own such as student loan debt, the cost of housing (either rent or mortgage), and the cost of their own living expenses. This situation creates a conundrum for the older parent and the young adult. In most cases, both prioritise immediate needs over future savings, leaving pension planning as another ‘nice-to-do’ activity.

Reliance on informal economy
Jamaica’s economy has a substantial segment of workers in roles like hairdressing, barbering, vending, carpentry, masonry, plumbing, small-scale agriculture and other independent or casual labour. Participants in this informal economy oftentimes do not participate in formal pension schemes. The reality is that, traditionally, access to such schemes was non-existent outside of being formally employed, leaving individuals to fend for themselves when saving for retirement. This is seen in the behaviour of the Jamaican populace, who rely on less formal financial structures such as ‘throwing a partner’ – a collective non-interest-bearing saving activity.

The reliance on informal ways to save for one’s retirement is further magnified by the fact that, historically, access to a pension scheme was limited to those Jamaicans who were employed by an institution that positioned pensions as an employment benefit. Given this positioning, and despite the advent of approved private retirement schemes, where people in the informal section can set up and benefit from a formal pension arrangement, individuals have still viewed formal pension plans as an option that is either too complicated to understand or something meant for blue-collar employed people or wealthier individuals.

Mistrust of financial institutions
A general mistrust of financial institutions is another cultural barrier to pensions in Jamaica. This distrust is fuelled by various historical and socio-economic factors. The infamous financial meltdown in the 1990s, which resulted in significant losses for investors, left a lasting impression on many Jamaicans. The mistrust has been further magnified by recent and repeated incidents of fraud in the financial sector. Unfortunately, this mistrust has carried over to formal pension planning, as people harbour scepticism about entrusting their hard-earned retirement savings to these institutions. With the deep-seated barriers to wider adoption of pension planning in Jamaica, institutions such as NCB Insurance Agency and Fund Managers have had to implement strategies aimed at making it easier to access pension funds and serve as advocates for the average Jamaican as they seek wider participation in this aspect of financial planning.

Education and awareness
The first step in overcoming cultural barriers is to continue to educate the population about the importance of pensions and long-term financial planning. Public awareness campaigns, workshops, and seminars can help dispel myths and misconceptions about pensions and build trust in the formal financial sector. NCBIA has recently launched a robust public education campaign to help position pension planning as a critical component of one wealth preservation plan. The ‘Retire like a Boss’ initiative seeks to go to the hearts and minds of members of the informal economy, by tapping into their inherent nature to survive in their current lives and using that appeal to encourage them to also thrive after retirement.

This low adoption is an ominous indicator of Jamaica’s socio-economic well-being

Similarly, increased awareness needs to be had around the performance of pension funds and how this augurs well for investors and recipients of pensions. Oftentimes, news of financial and economic challenges highlights the negative performance of invested pension funds.

As the players in the industry advocate for increased participation among Jamaicans, more should be said to highlight the positive performances of said funds. In this vein, NCBIA is proud to boast an enviable performance of its pension funds, delivering a 10-year average composite yield of 11.4 percent as of the end of 2023.

Cultural sensitivity
Policymakers and financial institutions should be culturally sensitive in their approach to promoting pensions. By understanding the strong family bonds in Jamaica, they can emphasise how pension savings can complement, rather than replace, family support in retirement. Similarly, understanding and engaging the new workforce will require financial institutions to rethink how pension planning is positioned. The imagery of the ‘rich old person’ on a beach somewhere, while the desired reality, has not been the experienced reality of many millennials and Gen Zs and their retired parents. As such, creating a vision of the ‘real’ future has to be reimagined by players in the industry and reflected in their efforts to increase the take up of private pension plans.

Ease of access
Pension providers must provide online platforms to allow tech-savvy millennials and Gen Z access to these services without needing to visit a physical location. In addition, customers who engage with financial institutions at physical locations should be introduced to pension planning at all points of onboarding or servicing, given the positive impact a pension arrangement will have on their financial futures. NCBIA is proud to be one of the forerunners in Jamaica in providing a fully digital application process for its clients. Our NCB pensions portal allows clients to select the funds they want their savings to be invested in and select how their savings should be allocated across different funds. Once enrolled, clients can also track their pension fund performance via the portal. Solutions such as this should see a shift in the number of active pension plans in the society sooner rather than later.

The government
Finally, the role of government in creating an enabling environment for pension planning is imperative. In Jamaica, significant work has to be done to make the industry more amenable to modern realities. However, given the threat to the socio-economic fabric of society brought on by a financially unstable and ageing society, it is imperative that the government seriously considers making pension participation mandatory for all persons earning an income in Jamaica. This is a necessary step in rapidly improving the retirement fortunes of hundreds of thousands of Jamaicans. Organisations such as the Pensions Industry Association of Jamaica, of which NCBIA is a part, continue to lobby for the adoption of automatic pension enrolments, and this forms a key pillar in our advocacy strategy for the well-being of Jamaicans. In fact, the Jamaican government has already taken positive steps through the creation of the Tourism Workers Pension Scheme, which is a positive step in the right direction. NCBIA is of the view that this approach, applied nationally, will usher in a better day for so many hard-working Jamaicans.

In conclusion, Jamaica’s cultural and economic barriers to pension planning adoption are deeply rooted and multifaceted, making them challenging to address. However, with the right mix of education, innovation, and government support, these barriers are gradually being overcome. Pensions are not just for the office worker, the well-to-do, or the sophisticated investor. Living one’s best life after retirement should be an expectation for all Jamaicans, and this is the mantra that continues to drive us at NCBIA as we play our part in building a better Jamaica.

Race to the bottom: The reckless rush to mine the deep sea

Posted on July 22, 2025 by itsupport

Imagine diving into the deep blue waters of the open ocean, approximately 500 miles southeast of Hawaii. At first, there would be some sunlight, but this would soon fade as you begin your descent. By about 650 feet, there is no longer enough light for photosynthesis to occur, and by 3,000 feet, light no longer penetrates at all. You have entered a strange new world, one where remarkable creatures have adapted to the crushing pressure and constant darkness.

Once you hit 12,000 feet, you have reached your deepwater destination. This is the Clarion-Clipperton Zone, a vast abyssal plain as wide as the continental US. Little is known about the creatures that live at these depths, with over 88 percent of the region’s species thought to be entirely new to science. But as well as being rich in marine life, the zone is also home to another source of extraordinary value – untapped stores of critical minerals.

Seabed mining represents a step into a fragile and vulnerable unknown

According to some studies, the Clarion-Clipperton Zone could contain more cobalt, nickel and manganese than all terrestrial reserves combined, making it an area of extreme interest for mining companies and governments alike. Back on dry land, the global race for critical minerals is heating up. Considered to be the ‘new oil’ powering the international economy, rare earth elements and critical minerals are needed for much of our modern technology, and will be crucial to fuelling the green energy transition in the years to come. As a result, demand for critical raw materials is soaring – and so is competition. In a bid to get ahead in the race to the seafloor, US president Donald Trump recently signed an executive order aimed at fast-tracking deep-sea mining activities in both American seas and international waters. The controversial move has been widely condemned by scientists and environmental campaigners, who are concerned about the impact of commercial seabed mining on some of our world’s most ecologically important habitats. Yet despite alarm bells ringing on all sides, the Trump administration looks set to forge ahead with activities on the seafloor, in an effort to “counter China’s growing influence over seabed mineral resources.” But as the US looks to the deep sea as its next geopolitical battleground, it risks sailing into uncharted waters.

Treasures of the deep
For decades, miners and traders have theorised about the mineral treasure trove of the world’s seabeds. Now, for the first time, mining technology might be ready to make their vision a reality. Commercial deep-sea exploration is gaining momentum, with nations including China and India carrying out mining tests in both territorial and international waters. And while commercial-scale seabed mining is yet to begin in earnest, 2025 could be a defining year for the controversial practice.

Amid the great rush for critical minerals, private companies and politicians are turning their attention to the deep sea, where significant reserves of precious metals can be found in potato-sized ‘polymetallic nodules’ on the ocean floor. First discovered in Siberia’s Kara Sea at the end of the 19th century, these slow-forming nodules contain rich concentrations of metals, including nickel, cobalt, copper and manganese.

Deep ocean polymetallic nodules rich in manganese, copper and cobalt

The scientific expeditions of the HMS Challenger in the 1870s found evidence of polymetallic nodules in most of the world’s oceans, with clusters covering more than 70 percent of the sea floor in some locations. Now, over a century on from the Challenger expeditions, economic interest in these mineral-rich nodules is gaining traction.

Exploratory deep-sea mining began in the 1970s, and in 1994, the International Seabed Authority (ISA) was established to regulate mineral-related operations on the international seabed. As of 2025, the ISA has granted 31 contracts for ocean-floor exploration, with China, Russia and South Korea leading the pack. Taken together, these contracts cover over 1.5 million square kilometres of the seabed – representing an area four times the size of Germany. With companies working up further plans for full-scale commercial operations, it seems that the race to the bottom of the sea may now be underway, despite concerns that the risks of deep-sea mining are not yet fully understood.

Mining at the earth’s surface is an extremely destructive process. The extraction of minerals from the earth involves extensive clearing of land, and can result in habitat destruction and biodiversity loss, as well as the contamination of soil and groundwater. Once extracted, minerals must then be processed before use – a water-intensive operation that releases carbon dioxide and other greenhouse gases into the atmosphere. If surface-level mining is any indication, the mining process for the deep sea will be both intensive and invasive. Deploying heavy mining equipment on the seabed would disturb delicate ecosystems that have – until now – been largely untouched by human activity. And, with the deep sea holding many mysteries, seabed mining represents a step into a fragile and vulnerable unknown.

Life finds a way
The deep sea is the largest ecosystem on the planet, accounting for around 90 percent of our oceans. But its high pressure, constant darkness and perpetual cold conditions make it a challenging environment for us land-based mammals to access, as very few research vessels are capable of surviving the journey into the deep, dark abyss. Despite decades of study, the deep sea remains poorly understood, with 80 percent of our oceans entirely unexplored. What scientists are certain of, however, is the abundance of life in the deep.

It was once thought that life without sunlight was impossible, but the 19th century brought a host of breakthrough discoveries that challenged this long-held belief. Then in 1977, a team of marine geologists made a discovery that would completely redefine our understanding of requirements for life in the deep sea: hydrothermal vents. Found on the ocean floor in more volcanically active areas of the globe, hydrothermal vents can be thought of as underwater geysers, releasing a steady flow of heat and chemicals into the water around them. Here, large clams, human-sized tube worms and other unique organisms are able to thrive by converting chemicals from the vents into energy, in a process known as chemosynthesis. Thanks to these underwater hot springs, rich ecosystems are flourishing in even the most extreme conditions. With new organisms regularly being discovered in the deep, scientists now believe that as many as 10 million different species may live in waters deeper than 200 metres. And while life at these depths is plentiful, it is also fragile.

The economic merits of deep-sea mining are still far from clear

The extraordinary creatures of the deep are delicate organisms, and are more sensitive to change than those living in the shallows. Slight shifts in temperature, oxygen levels or pH can have a significant impact on organisms that have adapted to the stable environment of the deep ocean. Life also moves at a slower pace in the deep, with organisms taking a long time to grow, and recovering slowly from any disturbances. Polymetallic nodules are thought to take tens of millions of years to reach the size of a small potato, with some scientists estimating a growth rate of between one and three millimetres per million years. These nodules are an important habitat for many deep-sea fauna, and their removal or disruption could drastically unbalance this delicate ecosystem.

Above the seafloor, deep-sea mining may have other unintended consequences for marine life. The light pollution from mining vessels could be disruptive and disorientating to organisms that have adapted to minimal sunlight. Ocean noise pollution already impacts how marine mammals communicate and navigate, and increased noise from heavy machinery could further threaten whale and dolphin populations that rely on sound to feed, migrate and reproduce. Discharge and waste products from intensive mining activities could spread over vast distances, posing a threat to open ocean fish. Plumes of fine sediments are already known to damage respiratory and feeding structures in fish, and could easily be stirred up by collector vehicles working on the seabed. While the full impact of mining this vast and mysterious environment is still uncertain, it is clear that it would have significant and long-lasting consequences that stretch far beyond the seafloor.

Crossing the rubicon
Even as scientists and campaigners sound the alarm bells on deep-sea mining, interest in the controversial practice continues to grow. In April, President Trump signed an executive order to increase seabed mining activities in US and international waters, marking his latest bid to increase America’s access to critical minerals.

President Trump signs executive order on energy production

The order, which is unprecedented in its support for the practice, directs federal agencies to expedite the process for reviewing and issuing permits for mining the seafloor, both in US waters and in “areas beyond national jurisdiction.” Once implemented, the order will make it easier for private companies to begin commercial mining operations in earnest – essentially allowing them to proceed outside of any international frameworks.

While the ISA has set regulations on seabed mining, the US is the only major global economy that is not a member of the organisation, and does not recognise its authority. For years, the ISA has been working on a mining code, which would set further international standards for deep-sea mining operations. This long-delayed code would require all seabed mining activity to adhere to rules on waste products, discharge depths and environmental mitigations when occurring in international waters. The organisation is set to meet in July of this year, with a view to finalising its code, but Trump’s executive order gives little heed to these ongoing negotiations.

In fact, the order appears to bypass any burgeoning multilateral agreements on deep-sea mining, in a move that China says violates international law. “The US authorisation violates international law and harms the overall interests of the international community,” Chinese foreign ministry spokesman Gu Jiakun said after the order was signed.

The race to the ocean floor is as much about political power as economic necessity

And China is not alone in its criticism of Trump’s push into international waters. The executive order puts the US at odds with the rest of the world on this issue, as mounting environmental concerns have started to curb initial enthusiasm for the controversial practice. In December, the Norwegian government announced a one-year pause on its plans to start mining its seabed, after previously voting overwhelmingly in favour of launching seabed operations. Elsewhere, more than 30 countries – including Germany, Spain, Canada and the UK – have called for a 10-year moratorium on the practice, while French president Emmanuel Macron has backed a complete ban on deep-sea mining. A growing number of private companies also support a pause on seabed mining activity, with car manufacturers such as BMW, Renault, Volvo and Volkswagen all pledging not to use deep-sea minerals in their vehicles. Tech giants Google and Samsung have also announced their support for the global moratorium, promising not to use seabed minerals in their supply chains until the environmental risks are “comprehensively understood.”

Amid these growing calls for caution, the US is set to take a very different path. But even as the Trump administration gears up to fast-track permits, the economic merits of deep-sea mining are still far from clear.

Need or greed?
Supporters of deep-sea mining argue that they are motivated by economic necessity. It is true that the global demand for minerals is growing, and access to raw materials is becoming increasingly politicised in this new era of heightened US protectionism. By some estimates, demand for minerals could increase by nearly 500 percent by 2040, as countries race to scale up their decarbonisation efforts. Yet it is important to remember that demand forecasting is not an exact science. Projections are subject to highly changeable factors, including economic shocks and shifting consumer demand. The future needs of the rapidly evolving technology sector are particularly difficult to predict, given the current pace of change. Advances in artificial intelligence, machine learning and robotics have increased the pace of change tenfold, making long-term demand forecasting ever more challenging for analysts.

Indeed, despite warnings of a global scramble for lithium, nickel, copper and cobalt, supply has largely outstripped demand in recent years. Global production of lithium hit a new high in 2024, but weaker-than-expected demand for electric vehicles contributed to a surplus of almost 154,000 tonnes of the mineral last year alone. Similarly, a boom in the Indonesian nickel industry has seen three consecutive years of oversupply, and nickel prices have almost halved since 2022 as a result. Production of cobalt continues to exceed demand, with prices plummeting to their lowest level since 2016, while the copper market is facing its largest glut in four years.

Along with overproduction, shifting trends in the tech sector have impacted the global minerals market of late. Cobalt has traditionally been a key component in many electric vehicle batteries, but some manufacturers are now moving towards battery designs that use more sustainable elements. Tesla, the world’s second-largest manufacturer of electric vehicles, already uses cobalt-free batteries in half of its fleet, while other leading firms are pioneering their own new battery chemistries. Recycling technologies are also becoming ever more efficient, helping to relieve pressure on future demand for critical minerals. According to the International Energy Agency (IEA), a successful scale-up of mineral recycling could reduce the need for new mining activity by 25 to 40 percent by 2050.

In EV production and beyond, these shifts are having a significant impact on mineral supplies, prompting analysis to question whether deep-sea mining is really necessary to meet demand. Studies indicate that there is no real shortage of mineral resources on land, but for some proponents of seabed mining, the economic lure of the deep sea is hard to resist. The Trump administration estimates that deep-sea mining could boost US GDP by $300bn over a 10-year period, and create approximately 100,000 jobs. Even if this vision is realised, however, any economic benefits will surely come at a great environmental cost.

Troubled waters
As mining companies ready themselves for their first deep-sea operations, it is becoming increasingly clear that the race to the ocean floor is as much about political power as economic necessity. On dry land, Beijing dominates global supply chains of critical minerals and rare earths. According to the IEA, China accounts for 61 percent of rare earth mineral production and 92 percent of their processing, giving it a near monopoly over the supply of some of the world’s most valuable raw materials.

China’s Deep Sea No.1 Gas Field Phase II Platform Jacket

“While the Middle East has oil, China has rare earths,” the former Chinese leader Deng Xiaoping famously declared on a visit to one of Inner Mongolia’s largest mineral mines. Since the 1980s, China has been ramping up its rare earth mining activities. Decades of state-backed investment in its domestic processing industry have established China as the global leader in critical minerals, able to effectively decide which countries and companies receive supplies of these crucial resources.

Amid the ever-escalating US-China trade war, Beijing has dramatically curbed its mineral exports to the US, revealing just how dependent America is on these vital imports. Across the Atlantic, meanwhile, the EU is similarly reliant on China for many critical minerals, including 100 percent of its heavy rare earth metals. In an era of heightened geopolitical tension, this high level of dependency leaves the bloc vulnerable and exposed to global economic shocks.

While the EU and the US are both looking to become more self-sufficient in mineral extraction and processing, it will be difficult for any major power to challenge China’s dominant position in the critical mineral sector – at least at sea level. By setting its sights on the ocean floor, the Trump administration may be seeking to reshape the balance of power on the global stage.

“We want the US to get ahead of China in this resource space under the ocean, on the ocean bottom,” a US official told the BBC upon the signing of the controversial order.

Potential exploitation
In the ongoing Sino-American trade war, the international seabed could become the next geopolitical arena. Until now, deep-sea mining tests have followed the ISA framework, but Trump’s executive order may set a new precedent. If implemented, the order could allow commercial companies to effectively bypass the multilateral regulations imposed by the ISA, opening up the international seafloor to potential exploitation.

Greenpeace protests outside the annual Deep Sea Mining Summit

The 1982 United Nations Convention on the Law of the Sea recognises that the ocean floor is ‘the common heritage of mankind,’ and that it is ‘beyond the limits of national jurisdiction.’ Significantly, the US stands alone as the only major economy that has not ratified the treaty, and now appears to be creating its own rules on exploiting seabed resources. If other nations follow suit and break with the Law of the Sea treaty, then a scramble for the international seafloor could commence.

Our oceans make all life on Earth possible, and are home to delicate ecosystems that we are just beginning to comprehend. The exploitation of these resources is not just an economic question – it is an existential one. As companies ready themselves to take the plunge, we risk causing irreversible damage to the very heart of our planet. Whether we are willing to further endanger the health of our oceans for the sake of winning the minerals race is something all nations ought to carefully consider. The fate of entire ecosystems depends on the decisions we make today – and there is no going back.

Cooperative banking and insurance: a proven resilient model

Posted on July 22, 2025 by itsupport

In a year of ongoing economic uncertainty and global challenges, Crédit Mutuel has emerged with strong financial results and a clear strategic direction, which is a testament to the strength of its diversified banking and insurance model. With a focus on long-term value creation, operational efficiency, and a mutualist ethos, Crédit Mutuel continues to distinguish itself.

In this interview, Crédit Mutuel reflects on the drivers of its 2024 performance, its priorities for 2025, and its growing role in supporting the energy transition and addressing climate risks. The conversation also reinforces the group’s deep commitment to its founding values of solidarity, responsibility, and service to the common good.

What is your analysis of Crédit Mutuel’s performance in 2024?
Crédit Mutuel group, France’s third-largest banking group, is demonstrating the strength of its diversified banking and insurance model with net income of more than €4.5bn in 2024. Crédit Mutuel group’s excellent operating efficiency continued to drive its net revenue, which reached €19.3bn, confirming the vigour of its business growth. Net income, up 50 percent over the last 10 years, bears witness to the relevance of Crédit Mutuel group’s business model. Founded on the principles of freedom, responsibility, solidarity and subsidiarity, it enables us to make long-term strategic choices and ensure long-term profitability to meet the needs of our members and customers. The mutualist group continues to demonstrate that diversification, innovation and commitment to the common good, notably through value sharing, are key factors for navigating this period of political and economic turbulence with resilience. Backed by the commitment of its 87,000 employees and nearly 20,000 elected representatives, serving its 37.8 million retail, professional and corporate customers and members in France and Europe, Crédit Mutuel group once again demonstrated its efficiency, with a cost/income ratio that improved significantly by 1.5 points to 57.7 percent. Crédit Mutuel group’s financial solidity was fully confirmed with a CET1 ratio of 19.4 percent.

What are the drivers of this financial performance?
This result is based on three key pillars: strong commercial momentum, leading financial strength, and continued improvements in operational efficiency. We remain the leader in France in this area, with the best cost-to-income ratio.

What are the group’s current priorities?
We will work to strengthen our resilience and to advocate for the cooperative and mutual banking model at both European and international levels. We firmly believe that the cooperative model is a true asset in today’s world, and the values it embodies resonate strongly with the aspirations of younger generations.

What is the Crédit Mutuel group doing to address the environmental challenge?
In view of the issues of global warming, loss of biodiversity and damage caused by exposure to climate hazards, Crédit Mutuel group stepped up its eco-responsible initiatives and offerings to support its customers in their ecological and energy transition projects. In addition to strong strategic ambitions, in 2024 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. This methodology is an invaluable tool for assessing environmental and climate risks by sector, as well as providing a framework for internal stress testing of climate risks. Through these commitments, Crédit Mutuel group is committed to reducing its negative impacts, in particular on climate and the environment, for the benefit of all its stakeholders, and in particular its members and customers. Driven by a shared determination, all the group’s networks are taking increased steps to help transform our economy in environmental terms and create a trajectory in line with the Paris Agreement.

What would be the ideal for a bank like Crédit Mutuel?
It would be – and in fact, it is – to remain deeply mutualist, useful, and supportive, in the service of clients, members, and society as a whole. Mutualism remains our founding principle and at the heart of our movement. Our goal is to be both supportive and efficient – to become ever more efficient in order to be even more supportive.