Making Sustainability the New Normal: TMI’s Treasury4Good Awards

TMI’s Treasury4Good Awards

We are delighted to introduce the winners of our inaugural Treasury4Good Awards, which recognise the growing importance of Corporate Social Responsibility (CSR), Environmental, Social & Governance (ESG) and Diversity & Inclusion (D&I) in the treasury marketplace. Dedicated to those corporate treasury teams, banks, and vendors truly making a difference, these are the first awards of their kind in our industry.

There’s often a misconception that sustainability is just about doing the right thing for people and the planet. But smart organisations are starting to realise that it’s also about preparing for the future and ensuring the company remains ‘sustainable’ in every sense of the word.

In fact, CSR and D&I are quickly becoming vital strategic tools for business growth and success. What’s more, customers, suppliers, employees, and shareholders are increasingly looking for banks and corporates to generate a positive social impact, while improving financial performance and working towards a more sustainable business model. Creating a diverse workplace and embracing ethical practices are also critical for organisations looking to stand out from the crowd in a market where reputation is everything. 

We were overwhelmed by the number and quality of submissions for these Awards; and delighted to recognise winners from different sectors and geographies. We have made the Awards in three categories – Banks and Vendors, Corporates, and Individuals – and as the following summaries of their activities illustrate, there is some incredible work happening in our marketplace. Congratulations to all of our worthy winners!

Bank and Vendor Award Winners

The winner of the Award for Best Global Bank for CSR, BNP Paribas, has an outstanding record of CSR activities, many of them finance-linked. Projects with corporates such as Danone bear witness to the bank’s involvement in ‘positive incentive’ loans, which offer a discount when the company outperforms its sustainable goals or a premium if it underperforms. This is a neat demonstration of the fact that delivering on sustainability can have an impact on profitability and growth potential. BNP Paribas is also active in the areas of green loans and bonds and with its range of investments in renewable energy and social entrepreneurship. In addition to sustainable finance activities, the bank itself has made significant sustainability pledges. 

Axelle Vigo-Lovy Head of Sales for Large Corporates B2B, BNP Paribas Cash Management

One of the standout features of this submission, and a deciding factor for the judges, was the fact that BNP Paribas has appointed sustainability champions across its business. As an example, Axelle Vigo-Lovy, in addition to her sales activities as head of the Large Corporate B2B sales team in Paris, has been nominated Sustainable Cash Management Manager. As such, she is in charge of incorporating CSR in the Cash Management offering. She works with the HR and Communication departments to involve the Cash Management community in various CSR activities and ensures dialogue with clients on such activities. Moreover, Virginie Poulin has been appointed Head of Engagement for Transaction Banking EMEA and is tasked with building a broader roadmap for a sustainable transaction banking in EMEA, starting with working capital solutions. She has already launched several training sessions for front-office employees, covering subjects such as the UN’s 17 Sustainable Development Goals (SDGs), sustainability in M&A situations, and sustainability in specific sectors such as agriculture.

BNP Paribas also won the Community Engagement Project accolade for its School of Positive Impact initiative. The bank participated in the creation of this school in conjunction with l’Université PSL (Paris Sciences et Lettres) to launch an academic project in France based on the UN’s SDGs. It is aimed at fostering a new academically qualified generation who will be the future movers and shakers working to create solutions that will have a positive impact on the planet and on society in general. Students will undertake a multi-disciplinary course embracing natural science, engineering and the humanities, and will be equipped to continue their studies by taking Master’s degrees either at the PSL itself or at other international universities.

The judges were extremely impressed with this initiative since the School of Positive Impact will, in the bank’s own words, “Train tomorrow’s decision-makers for the great challenges of our time.”

BNP Paribas’ third Award was for Best CSR D&I Innovation, recognising both its Green Car Leasing solution and its Kintessia Project, which focuses on the circular economy. The former has seen Arval, a subsidiary of BNP Paribas and a specialist in full-service vehicle leasing, launch groundbreaking green offers for companies and their employees as well as individuals. These offers include Arval Car Sharing, a web and mobile platform through which employees can search and book a vehicle in three taps. This is a win-win solution for both companies and employees – and offers clear sustainability benefits. The Kintessia Project is also a BNP Paribas Leasing Solutions’ initiative – and isthe first B2B platform for renting or selling transport, construction and agricultural equipment. The platform is increasing the use of previously owned equipment, along with the rate at which existing equipment is put to use, thereby supporting the circular economy, which looks to move away from the current ‘take-make-waste’ way of doing business.

HSBC, meanwhile, was the hands-down winner of the Best Global Bank for Diversity and Inclusion. HSBC’s Group Chief Executive Officer, John Flint, has voiced his ambition to turn the bank into the Healthiest Human System, and a significant part of achieving this goal is building a diverse and inclusive workforce. Furthermore, HSBC is committed to improving gender balance, at all levels of seniority, with Flint having signed up to the 30% Club CEO Campaign undertaking the target to have 30% of senior leadership roles across the bank globally filled by women by 2020. 

Within HSBC’s Global Liquidity and Cash Management function, an HSBC representative is leading the discussion on the importance of diversity and inclusion – among clients and employees alike. Since undertaking his current role in July 2017, the representative has increased the number of female leaders at director level within the sales leadership team, and women in the UK sales team, significantly. And (spoiler alert), we will hear more about the representatives personal D&I efforts a little later in this article.

Highly commended in this category was Citi, whose aim for a diverse workforce representing a wide range of backgrounds, perspective and experience is a key part of the bank’s ethos. Moreover, D&I is directly related to Citi’s ambition to innovate and deliver the best result for clients. With this in mind, 45% of Citi’s US workforce are minorities, as are 27% of its US managing directors and directors. In addition, 51% of its total employees globally are female, as are 24% of the bank’s managing directors and directors globally.

The judges also appreciated the fact that Citi was the first financial institution to publicly release the results of a pay equity review comparing compensation of women to men, and US minorities to US non-minorities. This review was conducted across the US, UK, and Germany in an effort to increase the bank’s transparency in this critical area.

The Award for Best CSR Thought Leadership Campaign was also won by HSBC for a trio of outstanding productions, anchored by its Healthiest Human System drive, namely: the bank’s Sustainability Guidebookfor Treasurers, as well as compelling videos on the subjects of sustainability and D&I within treasury functions. The Guidebook was masterminded by an HSBC representative and contains authoritative articles explaining how corporate treasurers can positively influence the sustainability goals of their firms – in particular by focusing on ESG objectives.

Meanwhile, the two videos, produced in partnership with TMI, feature interviews with an HSBC representative on the importance of D&I in the workplace, the wellbeing of employees and ways that corporate treasurers can help to embed sustainability into the heart of treasury processes. The judges were particularly impressed by the practical focus of these thought leadership assets, making sustainability tangible for all treasurers and demonstrating that sustainability is about much more than green finance.

Highly Commended in this Thought Leadership Campaign Category, was ING Wholesale Banking’s online magazine, The View, which looks to help “set the world on course to sustainability” through educating people about their role in thinking creatively to overcome sustainability challenges. Throughout 2018, ING partnered with TMI to deliver articles from The View directly to treasurers’ inboxes, giving readers a great deal of food for thought on the road towards sustainable business – and their role within that journey.

The Best Green Cash & Liquidity Solution Award was arguably one of the easiest categories to judge – with Barclays’ Green Deposit scheme being a standout winner. The Green Deposit product enables corporates to earmark funds they deposit against Barclays’ investments in Green Bonds – covering a variety of thematic projects including energy efficiency, renewable energy, green transport, sustainable food, agriculture and forestry, waste management and greenhouse gas emission reduction. The green deposits are available with a 65 and 95-day notice period and in GBP and USD. 

Luke Davies Vice President, Group CEO Office, Barclays

The judges noted that cash deposit projects have typically been somewhat ‘vanilla initiatives’ that corporate treasurers see as a necessity rather than particularly innovative or interesting, and acknowledged that Barclays’ scheme, is different. As Luke Davies, Group CEO Office, and Co-Creator of the Green Deposit, told TMI: “This product is a first to market, and a tangible step in the direction of a truly green liquidity management product for corporates.” The judges also applauded the assurance provided to corporates using the product in the form of a Green Deposit Impact Report.

Meanwhile, Tradeshift’s winning entry in the Best CSR Technology Solution was equally exceptional. Together with FRDM, Tradeshift has created an app to specifically designed to help businesses detect and mitigate human trafficking, tracing and monitoring social risks at every level of their supply chain. The technology works by importing analysis of potential labour risks based on location, industry and product levels, into Tradeshift’s global network. FRDM aggregates and identifies risks and works with companies to take action on high-risk sup such as creating custom mitigation and developing action plans. 

The judges were shocked to learn that human trafficking is now a $150bn business globally, with the vast majority of victims being exploited by criminal organisations for labour, especially prevalent in emerging markets such as Southeast Asia and Africa. But were impressed by Tradeshift’s work to use modern technology to stamp out this vile trade. 

The final Bank and Vendor Award, Best Employee Engagement Initiative, was won by Citi for its Volunteer Africa (VA) project In Africa, the majority of the working population is employed in the so-called informal sector, which covers businesses usually set up by people living in poverty without access to conventional jobs or to welfare. Most of them have fewer than three employees and there is limited support available to help these microbusinesses to develop into SMEs, which are so important for economic growth. They not only provide an income to entrepreneurs but also create jobs for others. Citi realised that skills developed by their junior bankers could be useful here, and the Volunteer Africa project works in partnership with a social enterprise, Balloon Ventures, which has a strong track record of working with entrepreneurs across Africa. 

Since its creation in 2016, VA has seen 63 junior Citi bankers from across the world work in Nairobi, Kenya and Jinja and Mbale, Uganda, in a wide range of businesses. They are trained by Balloon to equip them with the tools and skills needed to support local entrepreneurs. They then set out to transfer learning and explain how microenterprises can be developed. Citi provides seed funding in the form of interest-free loans to approved cases, and the volunteers leave the nascent businesses with strategic plans for future development.

Corporate Award Winners

Renewi, winner of the Top Treasury Team for CSR Award, is a leading waste-to-product company that gives new life to used materials and has more than 8,000 employees working at 200 sites across Europe and North America. The company has sustainability running through its veins, and it is difficult to do justice to the extent of the treasury team’s involvement in supporting and promoting CSR – but treasury has a key focus on green finance. For example, Renewi has arranged a green loan and a Green Scorecard links the pricing of the group’s main banking facility to the performance of key CSR/KPI targets. In addition, a Green Framework evaluates the balance sheet to ensure that green assets are always greater than green debt. Renewi also participates in the Green EUPPmarket and takes advantage of Green Leasing to leverage trucks which reduce harmful exhaust pollutants and emissions. 

In short, Renewi’s treasury team, led by Adam Richford, lives and breathes sustainability – making them true pioneers in this space, and deserving winners of our highest corporate accolade for CSR.

Thames Tideway, won two Corporate Awards, for the Best Sustainable Finance Solution and Clean and Green Treasury. The company is the largest issuer of green bonds in sterling and holds the joint-highest Green Evaluation score awarded by S&P globally. In deciding to issue green bonds, Tideway had two objectives: firstly, to integrate CSR deeply into its daily processes, bringing departments closer together through collaborative projects, and secondly to appeal to a new investor base, namely those who are specifically looking for ESG investments. With this in mind, Tideway has issued six green bonds, totalling £775m. The issues have taken various forms: public bonds; private placements; nominal rate; CPI-linked bonds; RPI-linked bonds; cash bonds and deferred bonds. Key to these highly successful issues was having a robust Green Bond Framework (GBF) in place, aligned with the four core components of the International Capital Market Association (ICMA) Green Bond Principles (GBPs), a set of voluntary process guidelines that recommend transparency, disclosure and reporting. 

In addition, Tideway’s treasury team has been a key organiser and participant in a number of corporate environmentally friendly initiatives and practices. These include reducing the amount of paper printed by more than 35% and an equally successful drive to reduce the number of plastic cups, straws, bags and cutlery used in the office. The team has also taken part in several volunteering litter-picking events to clean the Thames’ foreshore, making the company a perfect candidate for the Clean and Green Treasury Award.

The Sustainable Finance category, won by Tideway, was one of the hardest fought. As such, the judges also recognised a Highly Commended project by the Royal Schiphol Group – for its successful issue of a €500m green bond in October 2018, the first by an airport operator in Europe. The group demonstrated to the investor community that Schiphol is serious in its sustainability ambitions and can make an impact in making the aviation industry more sustainable. The green bond issue met significant investor demand (approximately six times oversubscribed) and was one of a few issues in 2018 with no, or even a negative, new issue premium. 

The Award for the Most Innovative Sustainability Project was won by Bonduelle, a French company providing processed vegetables, for their project Finance for Growth. This was initiated as one of a series of 22 projects boosting its ambition to be the ‘world reference’ in well-living through vegetable products. Its goal is to integrate the concept of financial value creation into the firm’s day-to-day decision-making processes in the pursuit of profitable, capital-efficient growth. The initial target of Finance for Growth was a 10% improvement in net capital employed, equating to c. €100m, with an end goal of meeting a target of 12.5% ROCE by 2025. As the project has matured, the company is well on the way towards its aim of embedding financial thinking – and business sustainability – into its DNA. 

Ultimately, Finance for Growth is helping Bonduelle to continue to assist consumers to move towards a diet that is more vegetable-based, and demonstrates how treasury can play a role in helping to respond to demographic pressures, the urgent need to protect biodiversity, and the requirement to protect agricultural land.

CSR is a crucial part of Rémy Cointreau’s business strategy making the company a worthy winner of the Most Sustainable/Ethical Supply Chain Initiative. To help improve transparency and ethics in its business practices, Rémy Cointreau specifically requests its suppliers to subscribe to SEDEX (Supplier Ethical Data Exchange). This is a collaborative online platform that enables members to collect and share information and map risk in their supply chain. As such, corporates can use the platform to manage their ethical and social performance and build trust with their suppliers, helping to protect people, the environment and business.

In 2016/2017, the percentage of suppliers identified by Rémy Cointreau and subscribing to SEDEX increased from 54% to nearly 83%. The target for 2018 was to reach 90% and 100% by 2019/2020. This full participation of suppliers is one of the group’s key goals in its 2020 CSR Plan, which reflects that of the UN’s 2015 conference on climate change (COP 21) and aims to embrace the UN’s SDGs. The company has adopted 10 out of these 17 goals, helping to confirm the judges’ decision.

The judges also picked a Highly Commended entry in this category, based on the ethical considerations around a supply chain finance (SCF) project. In order to meet a working capital shortfall, roofing and solar company, PetersenDean, turned to SCF and after evaluating several SCF providers chose PrimeRevenue. Together the two companies found a solution that involved educating suppliers as to just how SCF works and how it could benefit their own working capital. The decision from PetersenDean’s side was very much driven by the need to support their suppliers, rather than simply lengthening payment terms. Although the company did not originally think SCF would be an option, it was pleasantly surprised to discover the opposite – and that it would lead to a sustainable outcome for all parties.

The ever more rapid developments in technology are a constant preoccupation for treasurers around the world. Pernod Ricard India (PRI), operating in a country that has traditionally favoured paper-based payment instruments, recently completed an impressive eight-year digital transformation, which earned the company the Best CSR Technology Solution Award. The major proportion of its receivables has been migrated from cheques to Real Time Gross Settlement (RTGS) and India’s National Electronic Funds Transfer System (NEFT). Buyers have been encouraged to move from cheques towards a virtual accounts system provided by PRI’s main banking partner HSBC, which in turn has led to greater automation in the company’s electronic receivables workflow, delivering process efficiency and enabling faster cash application. Relationships with buyers have also improved as the number of mismatches and queries have diminished, and the growing use of other electronic collection methods has meant that more than 80% of PRI’s receipts now arrive via electronic channels. 

All of these new processes have contributed to a vast reduction in the use of paper within the treasury department, leading to significant sustainability improvements. What’s more, PRI’s treasury function is constantly on the lookout for new ways to support the company’s sustainability goals, with a CSR agenda that dovetails with the needs of a modern treasury and helps to future-proof its operations.

Highly Commended in this category was Honeywell. Two of its newly created independent businesses in EMEA had more than 180 legal entities and more than 300 bank accounts between them. In order to affect the legal separation of these companies from the previous Honeywell Turbo and Homes divisions, a considerable amount of Know Your Customer (KYC), banking, compliance and legal documentation was necessary, involving multiple signatories. To reduce this number to a manageable level Honeywell decided to embrace eSignatures. The treasury team chose the DocuSign system to replace wet signatures on intercompany loan promissory notes, where country legislation permitted. Honeywell challenged its three main European banks – Barclays, BNP Paribas and Deutsche Bank – as well as J.P. Morgan in the US to pilot a DocuSign solution.

This project is a great example of how Honeywell’s treasury team is leveraging digital solutions to embrace sustainability. Rónán Clifford, Honeywell’s Treasury Manager, sums up the company’s approach to CSR: “At Honeywell, our solutions and technologies expand sustainable capacity and improve the efficiency of products and processes, fostering ‘sustainable opportunity’. When we designed our digital strategy and engaged with our stakeholders, we were driven not just by the potential efficiencies and cost savings of utilising eSignatures but also the environmental advantages of going paperless and reducing our carbon footprint by removing the need to have original documents printed, signed and then couriered to the relevant recipient.”

Houston-headquartered natural gas company Cheniere is a firm believer in the obligation to be a ‘good corporate citizen’ and its initiatives in pursuit of this goal make it a worthy winner of the Award for Best CSR Treasury Transformation. At Cheniere, each team member is charged with ‘thinking how we can be better today than we were yesterday’. With this mantra front of mind, Cheniere has transitioned towards a centralised global treasury over the last 12 months, and as part of this treasury transformation process has digitised many treasury workflows – including minimising cheque usage in favour of electronic payments. This digital journey has helped Cheniere’s treasury team to truly embed the organisation’s CSR goals throughout treasury processes, and led to numerous sustainability, transparency, and efficiency benefits. The Natural Resources & Utilities (NRU) team at HSBC Global Liquidity and Cash Management, led by David Andrada, Global Sector Head – NRU, played a vital role in this Award win, with their commitment to provide on-the-ground support for Cheniere in Houston, covering the company’s global treasury needs.

Individual Award Winners

Joanna Bonnett Group Treasurer, PageGroup

Joanna Bonnett, Group Treasurer, PageGroup was the winner of the Award for Outstanding Corporate Treasury D&I Leader. A forward-thinking treasury leader, Bonnett is passionate about equality. As well as choosing to work for a company that takes D&I extremely seriously, Bonnett regularly makes her voice her on the subject – both in private and in public. For example, she took part in a ‘Women in Treasury’ panel held at the Group Treasurers’ Exchange in London in September 2018 with an audience drawn from all over Europe.

The panel discussed a wide range of topics including the perils facing working women and parents; how to champion women in the workplace; diversity across different cultures; the need for monitoring and sponsorship; and gender equality for men – ensuring that men had equal access to flexible working hours, as well as the ability to work from home. The latter is something that Bonnett takes extremely seriously, and she ensures that all of her team have the right to flexible working – regardless of gender and whether they have dependents or not. In short, Bonnett is a breath of fresh air in an often-staid industry and thoroughly deserves this accolade.

François Masquelier Head of Corporate Finance and Treasury, RTL Group, and Honorary Chairman, EACT

Finally, François Masquelier, Head of Corporate Finance and Treasury, RTL Group, and Honorary Chairman, EACT, takes away the Award for Outstanding Corporate Treasury CSR Leader. Few treasurers talk about CSR, let alone write about it and raise awareness among their fellow practitioners. Yet Masquelier has done just that, writing at length in TMI and on LinkedIn about the treasurer’s role in supporting CSR. As Masquelier notes: “Treasurers are in a position to contribute positively to the drive towards sustainability. A treasurer who can demonstrate his/her socially responsible credentials can enhance the appeal of his/her department. Even small tweaks to behaviour at work will contribute towards making the world a better place. Good environmental practices can also boost a sense of wellbeing and belonging among staff. Furthermore, investors are increasingly looking for companies that can prove they follow good CSR practices.”

He goes on to say that: “I am not suggesting treasurers alone can implement enough environmental practices to earn their company ‘Global Compact’ status – a United Nations’ certification that involves CSR and reporting. Nor am I saying all businesses should use green indexes such as SEDEX or implement the One Report method – although that will be compulsory eventually. But what I am saying is that treasurers should at least recommend such activities.” It is this practical approach towards changing attitudes in the treasury profession that ultimately swayed the judges when making this important personal Award.

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