On November 20^th

Intesa Sanpaolo Group & ALEXBANK hosted “The New Climate and Energy Agenda” panel at COP27 ALEXBANK and Intesa Sanpaolo Group organized a panel during the Adaptation & Agriculture Day titled “The new climate and energy agenda: the competitive dynamics for the Agribusiness and the territorial development”. The aim was to tackle the main issues facing this vital sector in Egypt and how innovation and inclusive finance solutions can play a key role contributing to a more sustainable & inclusive development of the rural areas and of the agriculture activities.  

The panel was moderated by Dr. Ziad Bahaa El-Din, Non-Executive Chairman of ALEXBANK and featured a recorded pre-panel message from Prof. Gian Maria Gros-Pietro, Chairman of Intesa Sanpaolo. The panel discussions were supported by prominent speakers such as: H.E Dr. Rania Al-Mashat - Minister of International Cooperation, Mr. Walid Ali - General Manager of Sustainability Department at the CBE, Mr. Praveen Agrawal - World Food Program (WFP) Country Director for Egypt, Mr. Tarek Tawfik - President of AmCham  and Vice-Chairman of the Federation of Egyptian Industries, Mr. Marco Elio Rottigni - Chief of International Subsidiary Banks Division at Intesa Sanpaolo, Mr. Dante Campioni, Managing Director and CEO of ALEXBANK.

In his message, Prof. Gian Maria Gros-Pietro stated that Intesa Sanpaolo (ISP) is acknowledged to be one of the most sustainable banking groups in the world, and that it aims to become the first impact bank on a global scale, having the strong ambition to actively support activities to contrast climate change issues, inequalities and poverty. To fulfill this vocation ISP Group has been on the frontline for some time, fast-tracking the transition toward a low emission economy through financing retail and corporate clients, while offering an ever-widening range of sustainable investment products. These are the founding principles at the basis of ISP Group’s Industrial Plan 2022-2025, through which the Group intends to prioritize the creation of stakeholders value by strengthening its leading position on ESG-related issues, which constitute one of the main backbones of the Plan itself”. He added that the Group started implementing impactful policies, such as the commitment in 2021 to pursue the goal of Net Zero Transition by 2050 as regards its own emissions, as well as the emissions connected with its loan and investment portfolios, its asset management and insurance activities.  The Group further supported the initiatives launched by the UNEP FI, and in October 2021 it joined the Net-Zero Banking Alliance (NZBA).

H.E Dr. Rania Al-Mashat, the Minister of International Cooperation stated: “The complementarities between climate action and development efforts need to be reflected in country-led national strategies that incorporate the green transition as a key element of economic development. The Government of Egypt is committed to supporting mitigation and adaptation efforts, accelerating the country’s just energy transition plan and attracting private sector investments. This includes strengthening Egypt’s electrical grid, optimizing opportunities in green hydrogen as well as supporting green technologies and services value chains.

H.E. also highlighted the essence of “Hayah Karima” and Egypt’s Country Platform for the NWFE Platform, which means ‘fulfilling pledges’ in Arabic. The NWFE Program was developed on the back of the announcement of 2050 Country Climate Strategy, and the Nationally Determined Contributions (NDC). Leveraging on Egypt’s partnerships with multiple stakeholders, the country has been leading efforts to mobilize finance, avail technical assistance, and catalyze private investment, through innovative financing modalities including blended finance, for NWFE projects.

Mr. Walid Ali, General Manager of Sustainability Department at CBE stated: “The Central Bank of Egypt fully recognizes its role as an enabler and regulator of all businesses, and it guides banks operating in Egypt to apply sustainable financing models for that purpose. Given that most agri-businesses in Egypt are either small and micro enterprises, CBE collaborates with Egyptian banks to direct 10% of the total banking sector MSMEs financing portfolio for agricultural enterprises. The financial inclusion strategy that CBE follows currently also prioritizes financial education and creating a working environment for micro and small enterprises, as part of its commitment towards the achievement of the sustainable development goals”.

Mr. Praveen Agrawal, WFP Country Director for Egypt stated: “Agriculture is a business model, and we need to look at small farmers as equal partners in this business model and how we can bring them to this formal economy to achieve financial inclusion. He added: “Agriculture is the base of everything we do, we should dig more on how we can use the available technologies in enabling small farmers whom we consider our partners”.

Mr. Tarek Tawfik, President of AmCham and Vice-Chairman of Federation of Egyptian Industries stated:” The most important pillar to facilitate the transformation process of the agriculture sector to be environment friendly, is the presence of a solid business model, starting from responsible demand for agricultural products, followed by proper infrastructure and supply chain to enhance the complete development of the sector and ensure commitment to environmental responsibility, food safety and waste management.”

Marco Elio Rottigni – Chief of International Subsidiary Banks Division said: “At Intesa Sanpaolo we are strongly engaged in supporting the green transition and aim to become the first impact bank in the world.  My Division is operated by 21,000 colleagues, 65% of which are women serving 7 million customers. When it comes to facts and figures we find that worldwide 4% of global GDP and 27% of the workforce come from the agriculture sector, making this as a very important sector. ISP Group is keen to support agribusiness projects specifically in Egypt in terms of both business opportunities and a sustainable development, also we are keen to share our international experience in the fields of Sustainable and Agri-business finance to accelerate the know how transfer while capitalizing on local talents in Egypt towards an eco-friendly agricultural sector.

Dr. Ziad Bahaa El-Din, Non-Executive Chairman of ALEXBANK said: “the Adaptation & Agriculture Day is a very exceptional day in the conference at COP27, tackling issues and challenges related to Agriculture and Agri-business sectors with a focus on environmental challenges.  I am very proud to be moderating this panel. He added: “We are delighted as ALEXBANK and Intesa Sanpaolo group to be a part of the Agriculture day that shows our involvement and commitment to this sector through different initiatives”.                                                                

Dante Campioni, Managing Director & CEO of ALEXBANK concluded: “The agricultural sector contributes about 11% to Egypt’s GDP formation and only to 3% of total lending, matter that makes evident the opportunity to address the needs of this sector. We have put farmers at the center of our action listening and addressing their instances with the aim to gain their trust, and we are willing to support the efforts of all stakeholders, either from the private sector, NGOs and/or Public Institutions, to contribute the sustainable development of this sector to be pushed more and more towards regenerative agriculture practices”.

It is worth mentioning that ALEXBANK and Intesa Sanpaolo Group participation to COP 27 comes as part of the Group’s ESG commitments, and its vision towards sharing experiences in the field of sustainable development and climate change mitigation & adaptation strategies.