< Previous20 CEO MIDDLE EAST NOVEMBER 2023 “THERE IS PROVEN VALUE TO MENTORSHIP THAT IS HUMAN- TO-HUMAN, AND BUSINESSES NEGLECT IT AT THEIR PERIL” Employees need the support of the business to tear down the barriers between themselves and the customer As they explain how they resolved these issues, it will become apparent if they are a fit for your business. 2. Democratise CX training It may appear logical that those working in the contact centre should be priori- tised for customer-centricity training. But while these employees may need it most – as they will use it most – neglect- ing other departments will restrict the seeping of CX-aligned thinking into the corporate DNA. We should be clear here that we are not talking just about scenarios in which a customer call is for- warded to a finance or HR professional. No. Instead, consider that everyone in the organisation serves customers; but not all of those customers are of the brand. Some are colleagues who deserve the same courtesy and centricity thinking. 3. Build your own CX Your business is unique. While ever- green concepts might take you a certain distance, they may need tweaking to ensure a positive CX. For example, “The customer is always right” may be em- blazoned on many a motivational poster but may not serve you 100 percent of and CX success is well established. The enterprise should make closer relation- ships with its employees (or “relationship quotient”) a top priority. Managers must have ongoing group and one-to-one sessions with staff. They should use customer satisfaction (CSAT) surveys and other metrics to explore the thorny issue of job performance while simultaneously soliciting employee feedback and provid- ing coaching. This continuous communi- cation is a superior system of professional development to that of fire-and-forget webinars and employee handbooks. There is proven value to mentorship that is human-to-human, and businesses neglect it at their peril. 5. Align CX with roles and functions As I touched upon earlier, the classic example of CX – selling to consumers and addressing their product queries and concerns – is not the only scenario. For instance, where a billing depart- ment has contact with customers, CX has a very different flavour. Customers’ experiences must be tailored to these domain-specific scenarios and yet ap- pear seamless to the customer. The rule of thumb – such as any can exist in the world of individualisation – should be to avoid quoting policy and platitudes to a customer. Instead, deal with them as an individual and try to understand how their particular experi- ence ties to things like sales targets or CSAT objectives. Part of the culture Once we realise that CX approaches (and hence CX training) will vary from business unit to business unit, we will conclude that a dedicated CX team is surplus to requirements. Instead, since CX should be part of the culture, “customer centricity” will appear in every job description and be implied by every role title. Great CX happens when every employee works to deliver it. Customer- centric behaviour becomes professional habit – part of the culture. the time. Digital natives are exception- ally savvy in their product research, but if a call centre agent manages to steer them to an even better purchase choice through gentle education, this will lead to a valuable mentor-style relationship that can result in a meaningful long- term loyalty. 4. Boost your relationship quotient The link between employee experience LEADERSHIP22 CEO MIDDLE EAST NOVEMBER 2023 or over two centuries, Swiss private bank Lombard Odier has discreetly yet strategically served global wealth from its Geneva headquarters. But as family fortunes and financial centres evolve, the venerable institution is making a sizable statement in the Middle East with the opening of a new hub in fast-growing Dubai. The move marks an inflection point for the 225-year-old firm and a vote of confidence in Dubai’s rise as a magnet for private capital, global enterprises, and the world’s mobilising talent. It follows Lombard Odier receiving approval in September to operate its wealth management business from the prestigious Dubai International Financial Centre (DIFC), regulated by the Dubai Financial Services Authority (DFSA). “We have been focused historically on GCC nationals, who were served out of Switzerland. We have been serving clients in the region for the past 50 years, out of which 17 years were from our local representative office,” says Arnaud Leclercq, Partner and Head of New Markets at Lombard Odier. “However, as Dubai and the DIFC have strengthened their regulatory framework, attracting growing international clientele, the demands of clients have evolved.” Engaging a new generation of wealth Today’s investors, particularly younger generations inheriting family wealth, are increasingly engaged in actively managing their assets and seek closer collaboration with trusted advisors. “They want a lot more direct contact and proximity compared to simply meeting with their banker once or twice a year as CEO MIDDLE EAST MEETS ARNAUD LECLERCQ, PRIVATE HOLDING PARTNER AND HEAD OF NEW MARKETS AT LOMBARD ODIER AND AMER MALIK, HEAD OF MIDDLE EAST INTERNATIONAL AT THE SWISS PRIVATE BANK, AS THE FIRM EXPANDS ITS MIDDLE EAST HUB BY MATTHEW AMLÔT F CENTURIES IN THE MAKING COVER STORY in the past,” notes Amer Malik, Head of Middle East International at the Swiss private bank Lombard Odier. To better serve these evolving needs, Lombard Odier has invested heavily in technology to deliver highly personalised client experiences through goal-based planning tools analysing individual cash flows, assumptions, and potential portfolios to achieve financial goals. This emphasis on bespoke solutions reflecting each client’s unique aspirations aligns well with the discerning clientele Lombard Odier attracts globally. Surprisingly, even industry disruptors from the new economy like app developers seeking guidance for profits realise the intrinsic value of Lombard Odier’s conservative heritage. “These tech entrepreneurs know we are truly independent as we control our entire tech infrastructure internally with over 200 dedicated AS DUBAI AND THE DIFC HAVE STRENGTHENED THEIR REGULATORY FRAMEWORK, ATTRACTING GROWING INTERNATIONAL CLIENTELE, THE DEMANDS OF CLIENTS HAVE EVOLVED LOMBARD ODIER | COVER STORY24 CEO MIDDLE EAST NOVEMBER 2023 Lombard Odier believes the UAE is positioned as a future economic leader bridging continents developers, offering further assurance for entrusting one’s assets long- term,” says Leclercq. Beyond reputation: Identifying emerging opportunities While sustainability has long been a personal priority for partners at Lombard Odier, the bank views it increasingly through an investment lens given the vast opportunities emerging markets presents. “We are not an NGO but an investment house, and clearly see sectors like electrification enabling 30 percent reductions in carbon impact across industries like transport, infrastructure, and more – creating exciting risk-adjusted returns,” notes Leclercq. To effectively capture these opportunities amid transitioning companies, Lombard Odier has wholly restructured its equity research division, establishing a partnership with Oxford University and Systemiq to reskill analysts in sustainability frameworks while growing teams significantly. “It is a significant undertaking but vital given the scale of change and complexity in identifying those best positioned for transition 10- 20 years out,” says Leclercq. The UAE at the forefront of growth and innovation Within this context, Lombard Odier is bullish on the evolving role and investment prospects within the UAE. “We are seeing unprecedented interest from international investors and young entrepreneurs relocating permanently due to the stability, lifestyle and economic diversification Dubai offers between East and West,” says Malik. Under initiatives like Dubai 2033, the government is increasingly focused on environmental sustainability, innovation and developing a knowledge economy less reliant on oil through initiatives attracting foreign talent. Combined with the ongoing expansion of regulatory frameworks under the DIFC, Lombard Odier believes the UAE is positioned as a future economic leader bridging continents. For Lombard Odier, establishing a regulated presence allows fully serving an evolving client base increasingly active in the Middle East. With a roster of family assets managed globally for generations with bespoke and sophisticated solutions, Lombard Odier is well- Lombard Odier’s expansion underscores Dubai’s ascent as a regional financial hub COVER STORY | LOMBARD ODIERNOVEMBER 2023 CEO MIDDLE EAST 25 Lombard Odier believes that sustainable investments will impact every industry worldwide FINMA regulation we must also abide by from our Swiss licence.” Leclercq agrees the DIFC was the obvious choice: “in the region, the regulatory framework and name has grown worldwide – we want to follow international clients now staying in the region, no longer just served from Europe.” Part of Dubai’s value proposition relates to its central location. As Malik observes, “proximity is important as clients now want constant touchpoints versus meeting bankers twice yearly. Having an on- the-ground presence ensures that.” Looking ahead, Malik remains “WE ARE FORWARD- THINKING, COMMITTED TO THE NEXT REVOLUTION WHICH IS SUSTAINABILITY” LOMBARD ODIER | COVER STORY equipped to help navigate these dynamic times of wealth expansion and transition in the Gulf. As investors worldwide prioritise sustainability, the bank remains at the forefront – a trusted partner for the long-term in this pivotal region. A focus on the next generation While Lombard Odier maintains long- standing relationships with patriarchal families, next-generation clients are playing a greater role. As Leclercq notes, “the younger generation inheriting are often more involved, with demands on aspects like sustainability and typically more investment savvy than predecessors solely focused on developing businesses.” Malik concurs, seeing growing interest from “young entrepreneurs in their 30s and 40s settling in Dubai in record numbers.” Surprisingly, even at early stages many approach Lombard Odier “asking us to advise them on asset allocation, and we find them increasingly knowledgeable about markets.” This trend is global for Lombard Odier. As Leclercq observes, “across regions not just the Middle East, we clearly see demand rising from the 40-50 age group, who inherit but have different views often focused more on emerging themes like sustainability.” To stay ahead of this curve, Lombard Odier takes a long-term view. As Malik states, “sustainability is about a company’s future ability to transform over 10-15-20 years – not just assessing their status today.” This perspective shapes the bank’s strategy. Dubai’s rise as a financial centre Lombard Odier’s expansion underscores Dubai’s ascent as a regional financial hub. As Malik notes, “the DIFC regulatory framework is now top notch, and clients want that stability along with optimistic: “Dubai will continue attracting diverse wealth as lifestyle and safety combine here. The wealth generation happening across the UAE is why we have Abu Dhabi presence as well.” Lombard Odier is well-equipped to support continued growth, thanks to flexible technological solutions. As Amer explains, “our goal-based planning tool analyses individual scenarios, running 100,000 computations to illustrate the most suitable portfolio to achieve financial objectives.” Sustainability as the future of finance In summarising Lombard Odier’s role, Leclercq underscores their focus on sustainability: “we are forward- thinking, committed to the next revolution which is sustainability – it will impact every industry and company worldwide, representing significant investment opportunities if we identify the leaders.” As Lombard Odier’s Middle East operations continue to grow under the guidance of Malik and his local team, the bank is cementing its role as a long- time partner to the region’s continued advancement. With a strategic vision formed by over two centuries of navigating global change, Lombard Odier is well-positioned to leverage its deep expertise, pioneering technologies, and commitment to sustainability to help Middle Eastern clients achieve their wealth management goals and leave a lasting positive impact for generations to come. Through its expansion in Dubai, one of the world’s foremost centres of finance, innovation and multicultural exchange, Lombard Odier signals its confidence in both the emirate’s promising future and its own ability to guide clients through whatever opportunities and challenges tomorrow may bring in this pivotal region.26 CEO MIDDLE EAST NOVEMBER 2023 limate change continues to cast a shadow over our planet. The urgency to fight it has given rise to an industry in its own right – an industry of policymakers, sustainability advocates and climate activists. This in- dustry has taken on the mission of creat- ing the political, economic, technical and financial framework for the decarbonisa- tion of our world. Despite these concerted efforts, many businesses, especially in emerging markets such as the GCC, lag in measur- ing and addressing their greenhouse gas emissions. A 2022 survey by the Boston Consulting Group (BCG) revealed that a mere 10 percent of companies in emerg- ing markets had taken significant steps to quantify their emissions. It remains unclear how many of this 10 percent are doing so voluntarily or submitting to pressure from their global partners. Obligation vs voluntary In contrast, industrialised countries like those in the European Union have adopted a mandatory approach, legally obliging companies to reduce their green- house gas emissions. This approach may not be suitable for regions where such actions clash with cultural norms, and where such measures may present com- plex enforcement challenges and a high monitoring cost. The corporate perspective To bridge this gap and incentivise com- panies to take meaningful climate action, we must first delve into the corporate psyche. Companies primarily exist to serve their shareholders’ interests, with some often viewing environmental and social responsibility as a government’s domain. While businesses do engage with society, it’s often within their geographic scope and with a focus on customers, partners, and employees, encapsulated under their Corporate Social Responsi- bility umbrella. Rethinking the approach To motivate companies towards climate To motivate companies towards climate action, appeals to ethical consciousness and warnings about global climate risks alone may not suffi ce THE ROLE OF INCENTIVES IN ENCOURAGING COMPANIES TO MEASURE THEIR EMISSIONS Nasri says companies should focus on delivering offerings that stand out for their value and inherent competitiveness SUSTAINABILITY BY YASSIN NASRI, FOUNDER AND CEO OF IMPACTGULF CNOVEMBER 2023 CEO MIDDLE EAST 27 SUSTAINABILITY Companies in the circular economy, green technology, and sustainability sectors need to reevaluate their products and services through the lens of their buyers action, appeals to ethical consciousness and warnings about global climate risks alone may not suffice. Companies in the circular economy, green technology, and sustainability sectors need to reevaluate their products and services through the lens of their buyers, understanding that today’s consumers are not merely seek- ing ethical purchases but are astute and discerning. Sustainable choices must not be perceived as sacrifices or compromises but as decent options that offer custom- ers tangible benefits. Rather than expecting consumers to make choices based on guilt or a sense of obligation, companies should focus on delivering offerings that stand out for their value and inherent competitiveness, with sustainability at their core. Holistic climate responsibility and financial incentives The shared goal of decarbonisation is only achievable through synergy. Climate responsibility is the collective duty of governments, civil society, and consum- ers. Governments may create an enabling environment by introducing tax incen- tives and subsidies for green initiatives, while businesses innovate and imple- ment sustainable practices. On the other hand, consumers hold the power to drive market demand for environmentally responsible products and services. A positive move in this direction is the recent initiative of the COP28 Presi- dency in collaboration with the SME Climate Hub and the We Mean Business Coalition, to support SMEs in the MENA region in joining the UN Race to Zero campaign by making globally recognised climate change commitments. Building on this, an entire collaborative ecosystem could be created that fosters climate ac- tion and allows climate-conscious busi- nesses to reap various benefits, including: • Lower interest rates on loans: Finan- cial institutions would offer reduced interest rates on loans to businesses committed to emissions reduction. This eases financial burdens for companies investing in sustainability and help driven insights Such initiatives must be accompanied by awareness campaigns about the econom- ic benefits of climate action. Many com- panies are unaware of the environmental footprint of their operations, nor are they aware of the benefits of measuring emissions. With the right tools and tech- nologies, they can accurately measure and analyse their emissions, providing a strong incentive to act. These insights highlight areas where emissions can be reduced and illustrate the financial benefits of doing so. When companies see the direct link between emissions reductions and cost sav- ings, they are more willing to invest in sustainable practices. Access to reliable emissions data enables companies to set meaningful targets, track progress and report transparently to stakeholders, further enhancing their reputation and competitiveness. Humanity is under extreme pressure to act in the face of climate change, and it is crucial to implement an incentive system as an alternative to the European obligatory-based approach. Adopting such a system in the UAE will position the nation as a role model in innovation and sustainability – not just for itself but for the rest of the emerging markets too. Regular assessments can help fine-tune the system, making it even more effective in motivating businesses to measure and reduce their emissions efficiently. banks green their assets. • Reduced costs: Local governments would charge lower licence fees for climate-conscious businesses, while property management companies would offer them lower rents for commercial space, promoting cost-effective sustain- able operations. • Tender priority: Climate-conscious firms would gain priority in govern- ment tenders, encouraging eco-friendly practices and ensuring environmentally beneficial public projects. • Enhanced global contracts: Interna- tional partners would recognise and favour companies dedicated to climate action, resulting in favourable supply contracts and increased global competi- tiveness. • Awards for impact: Climate-conscious businesses would receive awards and certifications for their positive envi- ronmental and societal contributions, bolstering their reputation and attracting conscientious consumers. These tailored incentives, in conjunction with govern- ment initiatives, construct a robust eco- system motivating businesses to embed sustainability into their operations. Such programmes not only prompt action but also cultivate a culture of continuous improvement, driving enduring sustain- ability efforts within the corporate sector. Fostering awareness and em- powering businesses with data-28 CEO MIDDLE EAST NOVEMBER 2023 SG (Environmental Social Governance), SDGs (Sustain- able Development Goals), GHGs (greenhouse gases), COP28 (Conference of the Parties), and CO2 (carbon dioxide) – sound familiar to you? Probably, because these abbre- viations get casually thrown around in conversations about sustainability today like the phrase “I hope this finds you well” does in a corporate email. But like a vague fortune cookie, there is a lack of clarity when it comes to understanding how they are interconnected, their importance, and why your organisation should care. With 2023 being deemed the year of Sustainability in the UAE, everyone is throwing these abbreviations around, but what on earth do they really mean? Allow me to shine some (natu- ral sun) light on you. Let’s start with GHGs: gases in the earth’s atmosphere that trap heat. Think of it like a blanket in the sky that makes our planet warm- er. To date, GHGs are at their highest level in two million years and rapidly accelerating global warming. What does this mean? According to climate scientists, every fraction of a degree of additional warming is poised to increase the severity of climate change and its consequences (deforestation). This is why the Paris Agreement came into effect. Adopted at COP21 in 2015, this international treaty seeks to strengthen the global response to the threat of climate change by keep- ing temperatures from rising below 2 degrees Celsius above pre-industrial levels (the 1950s) and ideally below 1.5 degrees Celsius. To achieve this, carbon emissions must be significantly reduced and that is why the United Nations an- nounced the SDGs at this same time. You’ve probably seen them around and your company has probably pledged to at least two or more, but what do SDGs really represent? These 17 interlinked objectives are a “shared blueprint for peace and prosperity for people and the planet, now and into Don’t let the ABCs scare you – or detract from the importance of sustainability to bolstering your business and creating a lasting impact THE ABCS OF SUSTAINABILITY: FROM SDGS TO ESG Companies that maintain a long-term outlook can benefit from opportunities to meet new rules, changing demographics, and investment trends, Tarawneh says SUSTAINABILITY BY ZAIN TARAWNEH, CO-FOUNDER AND CHIEF GROWTH OFFICER AT GREEN FUTURE PROJECT ENOVEMBER 2023 CEO MIDDLE EAST 29 SUSTAINABILITY the future.” Arguably similar to ESG, both initiatives aim to address and solve social and environmental prob- lems through achieving a sustainabil- ity framework, but SDGs encompass countries, institutions, and the general public while ESG pinpoints companies and the business community. Both promote sustainability and responsible behaviour but they operate at different levels and have different applications. With all of that said, creating and abiding by an ESG policy is imperative in today’s business landscape. COP28 is fast-approaching and discussions by gov- ernmental entities and key stakeholders will inevitably highlight the importance of this. To effectively adopt such a policy for your organisation, understanding what it entails is essential. What on earth is the “E” In ESG? Let’s break this down. While ESG comprises three elements, the “E” is often the most emphasised, as environmental issues pose the great- est threats to businesses. The World Economic Forum Risk Report saw ex- perts perceive all environmental risks as a top five concern as they directly impact everyday business operations. This is where setting up an environ- mental policy comes into play. To avoid supply shortages, asset damage, and public retaliation; busi- nesses must minimise their carbon footprint and prepare for a greener fu- ture. Companies that maintain a long- term outlook can benefit from oppor- tunities to meet new rules, changing demographics, and investment trends. By making sustainability a priority and transforming your business operations, you can be profitable and competitive – the data speaks for itself. Sustainability is profitable Unveiling McKinsey’s eye-opening re- search, businesses that dare to embrace the winds of change are proven to reap skyrocketing profits – a jaw-dropping 60 percent surge. That is a lot of reduce waste, minimise energy con- sumption during building operations, and enhance the durability of struc- tures must also be considered. On the other hand, a hospitality com- pany’s tailored framework may revolve around mitigating the environmental impact of guest travel by setting up ride- sharing services, incorporating electric vehicle charging stations at its premises, or promoting public transportation. In both scenarios, the importance of understanding industry-specific challenges and addressing them pro- actively not only benefits the company but also drives positive change within their sectors; this fosters a more resil- ient business landscape, and ultimate- ly, starts creating benchmarks for more sustainable business models. Getting to the bottom line The integration of a corporate ESG strategy transcends mere corporate so- cial responsibility. It is a forward-look- ing and broader approach that aligns your organisation with global sustaina- bility imperatives, looking beyond profit margins to nurture long-term success – the key word here is long-term. For instance, in 2022, Alphabet Inc Class A (the parent company of Google) was the top ESG company in the world as it invested an eye-pop- ping $5.75bn into sustainability bonds; but its contributions in prior years, including matching approximately 66 percent of the electricity it used across its data centres with carbon-free sources in 2021 and committing $1bn to support the construction of 20,000 affordable houses in the Bay Area in 2019, played a key role. So, don’t let the ABCs scare you. Instead, understand that sustainability is profitable and an ESG policy can bolster your business but also create a lasting impact. This will help your organisation simultaneously contrib- ute to a greener future while enhancing your competitive edge in an increas- ingly conscious market. money. But – the bottom line is that it is no longer enough for businesses to focus on the bottom line solely. While the bottom line is crucial for any company to remain profitable, today there is a stronger shift; the imperative is to evolve beyond traditional profit-fo- cused models, as environmental concerns play a starring role in today’s world. This raises the question: What are businesses’ roles and how can they move beyond the bottom line into actively spurring effec- tive environmental action? Not a “one size fits all” solution Sustainability is not a cookie-cutter model; different businesses face vary- ing challenges. For instance, a con- struction company may focus on using greener building materials, while a hotel might aim to help guests reduce CO2 emissions during travel; both ef- forts can make a significant difference. Sustainable practices for a con- struction company involve investigat- ing materials like recycled steel, re- claimed wood, or low-carbon concrete. Furthermore, assessing techniques that $1.7TR The capital that flows through deploying renewables, grids and other clean energy technologies this year, according to estimates by the International Energy Agency (IEA) Sustainable practices for a construction company involve investigating materials like recycled steel, reclaimed wood, or low-carbon concreteNext >