Navigating Macro Drivers in Times of Geo-Political Uncertainty: ESG, Innovation and Beyond

It is no secret that the last few years have been very challenging for heads of trading. However, with challenge comes innovation and opportunity. TradeTech EU 2023, with extensive research and over 150 expert speakers, is off to a flying start and showcasing what it means to be an enlightened leader in today’s market.

We live in world of talent. Without inclusion and diversity, however, the full potential of talent cannot be achieved. Our first session here in Paris at TradeTech highlights the pace of change that is stimulating leaders now more than ever before and retaining talent becomes the largest monster on the horizon.

In an insightful buy side CEO keynote interview this morning, Guillaume Lesage, Co-CEO and COO of Amundi Asset Management, broke down the best approaches to navigating macro drivers and how to build a sustainable business that will not just survive but thrive in times of geo-political turbulence.

When asked his thoughts on the current environment, he explained: “We live in very interesting times. Tough and indeed challenging. But challenge creates opportunity.”

The key opportunities for the next year can be broken down into three. Rates of speed, the impact of inflation on investment and ESG. To reap the benefits of these, it is crucial that heads of trading increase transparency in terms of technology and data. Without transparency, there is a higher concentration of risks.

From his 20-plus years of experience in the market, Lesage reacted to the growing concerns surrounding regulations. He explained that “the minimum is adapting. To go above and beyond, you need to provide new opportunities. ESG is the top priority for investment. To build a future, both buy side and sell side need to be innovative.”

In terms of large investments, organisations used to have five people maximum working with ESG. However, those numbers have grown to at least 30 team members and millions in investment. It is a complex issue and is seeing the market take massive steps forward in terms of climate change and diversity which is essential for firms to increase performance.

To be successful with regards to such a large growth of scale, companies will be looking towards new and specialised technology which will help more accurately align with regulations. This fits hand in hand with customising operation models to adapt to these issues. It is essential that organisations have the right data providers to handle these changes and innovate the future rather than simply cope with the past.

In his closing remarks, Lesage was questioned about the positives on the horizon for the industry. He explained “We are in the centre between the US and Asian markets. We invented banking. We are here and we always will be. Each of our countries are small but we are so strong and resilient. To grow, we need to develop the market as a whole. ESG is the opportunity to do so and Europe is at the centre of that movement. The European financial sector is pushing this further than anywhere else in the world.”

We have the right values, talent and technology to take the lead and reach stability in times of turbulence. In the words of Lesage, there is a wonderful future ahead for Europe.

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