–> This is a pre-event interview in the run-up to the Leaders in Sustainable Finance Event on February 1, 2024.
Jeroen: Thank you, Joost Oorthuizen, for joining Leaders in Finance for this pre-event interview. This conversation sets the stage for the upcoming Leaders in Sustainable Finance event on February 1, 2024. To begin, could you please introduce yourself?
Joost: I am Joost Oorthuizen, serving as the CEO of Invest International for the past three years. Invest International is a newly established state-owned enterprise focused on financing Dutch companies globally and supporting infrastructure projects in emerging nations.
Jeroen: Your role as CEO must come with various aspects you enjoy. Could you pinpoint one aspect that stands out for you in your position at Invest International?
Joost: Hard to choose one! I will share a few, if that is ok. One aspect I find particularly rewarding is our ability to finance Dutch SMEs with innovative green solutions that might otherwise struggle to secure funding. Next year, we plan to finance around 80 SMEs with a hundred million, addressing a market gap in SME financing abroad, especially in riskier regions. Another aspect I encourage is contributing to the development of public infrastructure in developing countries, particularly in green energy. Navigating these countries’ challenges and assisting them in such endeavors is really fulfilling.
Jeroen: Given the focus of the upcoming event on sustainable financing, how do you interpret the term “sustainable finance”?
Joost: To me, sustainable finance equates to impact finance. It involves creating new business models in various fields, often challenging to finance conventionally. In my case, working in emerging countries with heightened country risks adds an extra layer of complexity. It is about finding blended finance structures to make these innovative business models possible.
Jeroen: The role of the financial industry in the sustainable finance transition is often debated. Where do you stand on this issue?
Joost: It is undeniably crucial. The relationship between the financial industry and other entities is symbiotic. Voluntary actions by commercial players alone won’t suffice. Governments play a role in setting rules and providing incentives, and the financial industry responds to both risks and opportunities. It requires collaboration and innovation from both sides to drive the necessary changes.
Jeroen: Expanding on that, what challenges do you see for financial institutions in this transition?
Joost: Financing new business models and ventures with higher risks is complex. It demands more risk-taking or the implementation of blended finance structures, which, in turn, complicates matters for institutional investors. The challenge lies in aligning financial structures, which are often newer and riskier, with institutional expectations. Additionally, compliance and regulatory requirements, such as Basel standards, pose a dilemma as the financial world becomes increasingly risk-averse.
Jeroen: That is a clear perspective. Moving to opportunities, do you see financial opportunities in the shift towards living within planetary boundaries?
Joost: Absolutely. There is significant potential for financial gain in sustainable solutions. Numerous opportunities arise in sectors like battery technology, electric cars, and, hopefully soon, the green hydrogen industry. Lord Adair Turner, Chair of the Energy Transitions Commission (ETC), expressed optimism about technological developments, suggesting that solutions are on the horizon. So, yes, there are substantial financial opportunities.
Jeroen: Finally, considering your participation in the Leaders in Sustainable Finance event, what are you hoping to gain or learn from the experience?
Joost: I am looking to be inspired by financial leaders sharing practical implementations rather than abstract discussions. Best practices, hearing about what others are doing and successfully implementing, are what I find valuable. Learning from real-world examples, like a conversation with a senior from Rabobank, provides insights that go beyond theoretical discussions. That is what I am looking forward to.
Jeroen: That is a really good point. Thank you, Joost Oorthuizen, CEO of Invest International, for your time. We are very much looking forward to having you at the event. Thank you!
–> This is a pre-event interview in the run-up to the Leaders in Sustainable Finance Event on February 1, 2024.