Treasury as a Force for Good

Corporate social responsibility and diversity and inclusion are growing parts of the treasurer’s remit. TMI’s recent Treasury4Good Awards highlighted some of the innovative projects taking place in this space, stimulated debate on building a sustainable and inclusive treasury function, and paid tribute to a treasury legend.

All the images from the night can be viewed at the Treasury4Good Awards Gallery.

Kicking off with a passionate speech from Angie Pankhania, Acting Director, Finance and Governance, United Nations Association – UK, about the UN’s 17 Sustainable Development Goals (SDGs), the Treasury4Good Awards evening was a learning opportunity for corporates and banks alike. Pankhania spoke in depth about the need for greater action from the corporate sector around supporting and embodying the SDGs. She also outlined the benefits of operating sustainably, emphasising that there is no longer a need to compromise on profit or responsible business – in fact, sustainable businesses are outperforming their less forward-thinking counterparts, she explained.

Next to take to the stage was a panel of sustainability champions, comprising three Award winners: Joanna Bonnett, Group Treasurer, PageGroup; Lance Kawaguchi, Managing Director, Global Head – Corporates, Global Liquidity and Cash Management, HSBC; and Luc Vlaminck, Group Treasurer & Managing Director, Financière Rémy Cointreau SA/NV.

Starting by emphasising the treasurer’s growing role in supporting corporate social responsibility (CSR) efforts and embedding them into treasury process, Vlaminck said: “Sustainability is quickly becoming a key part of long-term business thinking and while it is not a traditional part of the treasurer’s role, treasury can play a part. At Rémy Cointreau, CSR is integrated into everything we do, under the motto ‘Terroir, people and time’. One of the main ways we promote sustainability is through our supply chain,” he explained. “We ask our suppliers to join Sedex [the 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. At Rémy Cointreau, we use the platform to manage suppliers’ ethical and social performance helping to protect people and the environment.”

Vlaminck also shared some interesting statistics around the percentage of suppliers using Sedex, with the target being 100% by 2019/2020. Full participation of suppliers is one of the group’s key goals in its 2020 CSR Plan, he noted, which also outlines how the company is embracing the SDGs.

Going green

Bonnett then talked about some of the challenges that treasurers might face when looking to be more sustainable. “While the large transaction banks are great at suggesting solutions to digitise processes and therefore remove paper from workflows, and they also offer numerous funding options such as green bonds and green loans, we would like to see more green cash management products,” she said.

“PageGroup recently revisited our banking group, but no banks spoke to us about sustainability. And when we were looking at deposits, there was no mention of green deposit products – although I am pleasantly surprised to discover that these exist,” she said. The product being referred to is Barclays Green Deposit, which won the Award for Best Green Cash & Liquidity Solution.

Talk then progressed to the ‘people’ side of CSR. When asked how organisations can establish a speak-up culture for employees, Kawaguchi shared some experiences of how HSBC is doing just that. “Last year, the Group announced its ambition to create the ‘Healthiest Human System’ in financial services. A significant part of the HSBC strategy, in addition to improving customer satisfaction and conduct, is doing better by our employees by removing barriers that prevent them from being at their best,” he explained.

Kawaguchi outlined how hosting internal roundtables to hear directly from employees about the improvements they would like to see in the organisation is an effective way of identifying barriers to having a speak-up culture. “One of the most common answers we hear in these roundtables is that sometimes employees would like to speak up, but they lack the courage to deliver the message they want. As a result, I make sure my team hears from senior stakeholders regularly who reiterate the fact that they will not be penalised for speaking up but that they’ll be protected and the right thing will come of it.”

Empowering employees and enabling them to speak up can yield numerous benefits to banks and treasury functions alike, noted Kawaguchi. “Encouraging employees to speak up when they are uncomfortable allows them to be confident that they can do their job in a safe environment. This can lead to increased productivity, motivation and talent retention, and results in decreased absences. A speak-up culture could also help to reduce instances of internal fraud,” he said.

Moving on to tackle diversity and inclusion (D&I), Bonnett then spoke about her approach to it within PageGroup’s treasury team. “It’s an interesting challenge because, as a leader, you need to recognise that individuals have different needs and career aspirations, but they should all have the same opportunities open to them. PageGroup takes D&I incredibly seriously and we have robust Group policies around this, but I also take steps within my own team to ensure everyone feels included. For example, everyone in the team has the right to flexible working – regardless of whether they have dependants of any type. So, even those people without children or an elderly parent or pets can work from home when they need to,” she said.

Embracing diversity

Vlaminck shared an inclusivity technique from Rémy Cointreau, colloquially known as the ‘slash culture’. “We encourage all employees to bring their whole selves to work by making sure people have their interests alongside their job titles, so someone might be a Treasury Analyst slash Dancer slash Dog owner. It’s a great way to ensure team members feel accepted,” he noted.

Speaking about the importance of D&I in building a fit-for-purpose treasury function, and whether treasurers should be recruiting younger generations to fill skills gaps, especially around technology, Kawaguchi said: “D&I is critical to the success of any organisation today and tomorrow. It is something I am extremely passionate about – not just diversity of ethnicity, gender or age, but diversity of mindset. With respect to treasury, D&I initiatives are essential to building a sustainable treasury function, as they help to ensure the workforce is representative of the people it serves.”
On the technology point he added: “As we head towards Industry 4.0 and Treasury 4.0, it is important for treasurers to embrace diversity and invest in motivated and flexible employees who are also technologically savvy. While one of the key demographics to look at for these skills would typically be younger generations; it is important to focus on the right behaviours and fit of the employee, regardless of demographic traits.”

Wrapping up the discussion, Bonnett also highlighted the importance of mentoring programmes in enabling employees to climb the corporate ladder and overcome hurdles. “Whilst professional mentors exist, they command expensive hourly rates aimed for the senior executive. At the other end of the spectrum, programmes offered by employers and industry bodies are run by volunteers – meaning that mentees do not always get the time they deserve. I would love to see more treasurers engaged in mentoring alongside their day job to empower those from minority backgrounds or those facing biases such as gender discrimination.” Indeed, Bonnett uses her prominence as a mentor to inspire and build confidence in junior female treasurers and she is currently working with a staggering four mentees on a volunteer basis, demonstrating her place as a truly inspirational leader.

Celebrating leaders

It was then time for the Award-giving to begin. While all winners were delighted with the recognition received, for Cheniere’s treasury team, the occasion was bittersweet – having recently lost a close colleague, Alex Parker, Treasury Director, Cheniere Marketing – London. Brook Ballard, Treasury Manager, Cheniere Energy Inc., took to the podium to elaborate on the Award win, and the team’s personal loss.

“CSR requires each team member to think how we can be better today than we were yesterday. We continue to evaluate what we can do to improve our company and create a positive change. While it is true that we cannot do this alone in treasury, collectively with the relationships we develop in our companies, with each other, with our bankers and with our customers we continue to strive to be better each day. I would like to thank HSBC, my boss Lisa Cohen, our treasury team Joshan Gungah, Kelsey Perkins, Vanessa Sanchez and Amanda Hoyt who have all contributed to this success. Additionally, I want to take this moment to remember my colleague Alex Parker who certainly was a wonderful contributor to our success along the way,” said Ballard.

“Alex Parker, our co-worker in treasury in London, passed away unexpectedly of a heart attack on March 16 while on vacation in Spain. He was 42. We can make all the advancements in operational efficiency, but the heart and soul of an organisation that allow these changes to happen are the talented people of Cheniere. He was a special talent and will be missed.”

Positive change

Following Ballard’s heartfelt speech, Mike Straney, Director of Major Giving at Sightsavers – one of TMI’s chosen charity partners for the Awards – took to the stage. He explained how corporate donations make a difference to children around the world, enabling them to see the blackboard at school and therefore learn the skills they need to succeed. The event raised £7,000 for Sightsavers and £2,650 for the Kamuli Mission Hospital in Uganda.

TMI would like to thank the corporates and banks who generously donated to these causes and to congratulate all of the Award winners. Well done!