AGEFI Luxembourg - mai 2025

AGEFI Luxembourg 12 Mai 2025 Economie A près les réunions de prin- temps duFondsmonétaire international (FMI) et de la Banquemondiale àWashington D.C., leministre des Finances, GillesRoth, s'est rendu auBrésil du 27 avril au 1 er mai 2025 dans le cadre d'unemission financière avec Luxembourg for Finance (LFF). ÀSãoPauloet àBrasilia, leministrea ren- contré les acteurs clés du secteur financier brésilien afin de renforcer encore la coo- pération avec le Luxembourg. Il a égale- ment eu des discussions avec des repré- sentants du secteur Fintech brésilien, le pays ayant mis en place un des systèmes de paiement instantanés les plus efficaces et inclusives au monde. La mission a été complétée par une soireé «Luxembourg meets São Paulo» de Luxembourg for Finance, rassemblant quelques 90 déci- deurs du secteur financier brésilien. Le retour des entretiens a été très positif. Le Grand-Duché reste la place de premier choix pour le développement des opéra- tions brésiliennes enEurope et au-delà. Gilles Roth a commenté : «Notremission financière fut un succès. Le Brésil et l'Amériquelatinesontpournousunmar- ché d'avenir important. Il est crucial pour moiquenousentretenonsetdéveloppons davantagenos relations, notamment avec leBrésil,moteur économiquede la région etabritantlesecteurfinancierleplusdéve- loppé en Amérique latine. Le Luxembourg agit comme porte d'entrée pour l'Europe : 6 des 10 plus grandes banquesbrésiliennessontaujourd'huipré- sentes auLuxembourg. Le Brésil est pour nous un partenaire clé. Nos discussions ontétéfructueusesetchaleureuses,ciblées et pragmatiques. Nos principaux argu- ments étaient notre stabilité, notre flexibi- lité et notre cohésion sociale. » Lamissions'estconclueàBrasilia,lacapi- tale du Brésil, par un entretien de Gilles Roth avec le ministre brésilien des Finances, FernandoHaddad. À l'issue de cette entrevue amicale, Gilles Roth a dressé le bilan suivant : « Nous parta- geons lemême constat. Les tensions géo- politiques ne sont pas propices à la crois- sance économique mondiale. L'heure est à la coopération plutôt qu'à la confronta- tion.Ensemble,leBrésiletleLuxembourg ont un avenir prometteur. » Avant de conclure : « Le Brésil est un pays impres- sionnant et une économie en plein essor. Sur un continent avec un potentiel énorme. L'intérêt de l'Europe en tant que destinationdesinvestissementsbrésiliens a été confirmé lors de cette mission et les nombreusesentrevuesquej'aieues.Nous voulons approfondir nos relations et ren- forcerlespontsendirectiondel'Amérique latine. Dans l'intérêt de nos citoyens. » Le Brésil est la dixième économie mon- diale et laplus granded'Amérique latine. LeLuxembourgcompte sixbanquesbré- siliennes.Lapremièrebanquebrésilienne s'est installée auGrand-Duché en 1982. Source : ministère des Finances Gilles Roth en mission financière au Brésil : « Renforcer les ponts en direction de l'Amérique latine » ©MIFIN I n a time of shifting regulations and polarized debates, one truth stands clear: managing ESGmatters is cru- cial for long-term value, trust, and re- silience. It’s not about choosing sides in regulatory conflicts, but rec- ognizing that addressing ESG is a necessity driven by global de- mands and genuine impera- tives, not just rules. The reality check: climate and social risks are escalating ESGmatters are fundamentallymore than just a compliance exercise—they are the core pillars of the reality aroundus. The ParisAgreement, the EU Green Deal, and the Sustainable Finance Action Plan are not abstract ideas; they are grounded in scientific evidence andobservable en- vironmental and social trends. Climate change is no longer a hypothetical future; it is a lived present with compounding effects. The European Commission has detailed the mounting risks (1) . Across Europe—and in Luxem- bourg specifically—climate change is increasing the frequency and intensity of extreme weather events such as heatwaves, droughts, floods, and storms. These events disrupt economic activity, damage in- frastructure, and strain public services. Heatwaves lead tohighermortality, reducedproductivity, and infrastructure impairment. Droughts, like those in Luxembourg in2022 and2023, threatenagriculture, energy generation, and water supply, absolute an- nual losses inEurope are expected to reachEUR 40 billionby a 3°Cglobal temperature increase. Flood- ing, both river and surface, is worsening, putting infrastructure, businesses, and homes at risk. Ad- ditionally, rising temperatures are reducing water quality and exacerbating water scarcity. Beyond the environment, social risks are intensify- ing. Climate-related health risks are particularly acute for Europe’s ageing population, and changes inproductivity, labormarket dynamics, andmigra- tionpatterns are becoming evident. Entire sectors— like agriculture, tourism, and energy—face disruptions that affect profitability and viability. From pest invasions to supply chain interruptions and increased insurance premiums, the economic and social implications of environmental degrada- tion are no longer debatable. These developments are not awaiting regulatory confirmation—they are factual, and they require proactive responses. Intergenerational pressure, NextGen stakeholders Alongside environmental and social risks, genera- tional expectations are rising.Millennials andGen- eration Z, soon to dominate both consumers and investors’ bases, are demanding more from busi- nesses. Gen Z, the most diverse generation in the EU (2) , has been shapedby andactivelydrivesmove- ments against racism, inequality, and climate change, demanding action on the systemic issues defining their future. This trend is observable around the globe. Academic research constantly shows that in the EU, CorporateSocial Responsibility (CSR) andESGprac- tices are critical to their decision-making: - In the fight against climate change, more than two- thirds of young people believe the EU should take a tougher stance on the bloc’s biggest polluters. Addi- tionally,65%ofrespondentsthinktheEUshouldhalt funding tomember states that donot upholdhuman rights anddemocratic principles. (3) - For Gen Z consumers, choosing products and ser- vicesgoesbeyondenvironmentalimpact,akeyfactor isalsohowthesechoicesaffecttheirhealthandoverall well-being. (4) - Two in ten Gen Z and millennial workers have al- ready switched jobs or industries to better alignwith their environmental values, andanotherquarterplan to followsuit in the future. (5) While survey results may vary across countries and EU regions, cross-cultural analysis (6) has shown that CSR expectations vary by region but are equally strong across demographics. As the EU faces its own “Great Wealth Transfer” (7) , anestimated$3.5trillioninassets (8) isexpectedtoshift from Baby Boomers to younger generations by 2030—thepurchasingand investment power ofGen Z and Millennials will only grow. Already, many younger consumers are basing their financial deci- sions on ESGalignment. The SupplyChainDomino Effect: Fromriskmanagement tomarket demand Withclearimpactsandrisksononesideandmoreat- tentive stakeholders on the other, it becomes evident the need of clear information across the business ac- tivities value chains. First,fromariskmanagementperspective,companies needaccurate, timelydata toprotect their operations: - To manage physical risks to facilities, they must gather geospatial and climate projections to inform renovationor insurance decisions. - To retain talent, theymust offer fairworking condi- tions,upskillingopportunities,andinclusiveenviron- ments—all of which require robust HR metrics and procedures. Second, from a market-facing perspective, con- sumers and clients are demanding product-level transparency: -Whatistheenvironmentalandsocialfootprintofthis product? -Howsustainable is theusage andend-of-lifephase? -Whatassurancescanthecompanyprovideaboutthe behavior of its suppliers? The informationneededare covering the entirevalue chainwith a domino effect: for example, a company cannotcrediblyadvertisean“eco-friendly”productif its suppliers rely on forced labor or highly polluting practices.Transparencyacrossthevaluechainisapre- requisite for customer trust. Todeliverthis,companiesmustbuildsystemstoiden- tifyandtrackESG-relatedrisksandimpacts,setmea- surable objectives, and ensure that their suppliers are held to similar standards. Otherwise, the weakest link in the chain could jeop- ardizethecompany’slicensetooperate(e.g.,theRana Plaza disaster inBangladesh in 2013). Avoiding theGreenwashing backlash Withrisingexpectations,however,comesrisingskep- ticism. Many companies face what’s now termed “ESGfatigue” (9) ,meaningthatdespitehugereporting burdens, they see little short-termreward. An EY survey (10) found that 92% of investors worry that ESG-related initiatives harm short-term corpo- rate performance. Meanwhile, 27% (11) of US compa- nies are scaling back ESG communications, citing complexity and fear of being misunderstood or ac- cusedof greenwashing. It’s likely that similar trends persist through 2025. Onour EUside of theAtlantic, it’s precisely this complexity that fueled the much- debated push for simplification through the Om- nibus package. Is“doingnothing”thesolutionthen?Doneright,CSR reporting is not about ticking boxes—it’s about craft- ing a strategic narrative that: - Signals ethical leadership: Values-driven execu- tives foster trust and secure greater buy-in for ESG strategies. -Boostsinvestorconfidence:TransparentESGreport- ingstrengthenscredibility,especiallyinlong-termin- vestment sectors. - Differentiates in skeptical markets: In an environ- mentofESGfatigue,genuine,data-drivensustainabil- itycommunicationhelpscompaniesstandout.Itpro- tects them from greenwashing accusations and demonstrates authenticity. (12) Inconclusion,ESGisnolongeroptional—it’sastrate- gicimperative.Therealquestionisn’taboutover-reg- ulation, but about how companies can cut through the complexity and focus on what truly matters: managing long-term risks, meeting stakeholders’ expectations, and future-proofing their busi- nessmodels.Leadingfirmsaren’twaiting for the perfect framework; they’re al- ready acting. As Gaspard Koenig recently wrote (13) , referringtoPortalis’CivilCode,simpli- fying laws isn’t about abolishing them, butratherstrengtheningpersonalrespon- sibility. The challenge now is to balance clarity with accountability as we shape the regulations of tomorrow. While the simplificationof theCorporate Sustainable ReportingDirective (CSRD)mayplease advocates of competitiveness, it seems to leave the social, climate, and ethical urgencies unresolved for others. These very challenges, however, offer levers for differentia- tion and economic resilience. As emphasized by the The Intergovernmental Panel onClimateChange (IPCC), the costsof decarbonized technologies—solar,wind,andbatteries—continueto fall,makingsustainablesolutionsmoreaccessibleand competitive.Thisshiftmakesthecostofthetransition no longer a barrier, but a catalyst for growth. In this context, it’s time to focus on building resilient businesses. The future is being shaped today, and thosewho leadwith ESGat their corewill define the next era of sustainable success. Clarisse IVANEZ-BIESSY Manager – Consulting Services - ESG & CSR Expert Geoffrey BARRE Partners – Consulting Services Dario ZAMBOTTI Director – Consulting Services - ESG HACA Partners 1)EUCommissionwebsite:Consequencesofclimatechange 2) European Parliamentary Research Service. Next generation or lost generation? Children, young people and the pandemic. December 2020 3)BuildersofProgressEurope’sNextgen,TheFoundationforEu- ropeanProgressiveStudies(FEPS)andThinkYoung,2022. 4) European Research Studies Journal. (Volume XXVII, Issue 2, 2024). Comparative Analysis of Generation Z Consumer Behavior in PolandandGermany:Implications fortheOrganicFoodMarket. 5)Deloitte. 2024GenZandMillennialSurvey 6) InternationalBusinessReview,2022 7) Cerulli Associates. The Cerulli Report: U.S. High-Net-Worth and Ultra-High-Net-WorthMarkets2021 . 8) Vanguard. Navigating the great wealth transfer , 18 September 2024. 9)Landmark: TheimportanceofESGamidinvestorfatigueandgreen- washingconcerns,BristolLawSociety,09January2025 10)EY2024InstitutionalInvestorSurvey. EYGlobalClimateChange andSustainabilityServices(CCaSS)teamandtheCustomResearchLab atInstitutionalInvestorLLC 11)TheConferenceBoard, ESGBacklashIsRealandGrowing:What toKnow ,updatedSeptember21,2023. 12)Bloomberg, Corporate“Irritation”OverESGFueledbySignificant Costs ,January23,2025. 13) Koenig, G., Garde-à-vous la simplification , Les Echos, February 4,2025. Navigating Environment, Social and Governance (ESG) with clarity: Beyond regulation turmoil towards resilience