Every challenge makes us more agile

Current geopolitical and geoeconomic events are challenging European, and thus Austrian, companies in many ways. "They have to get used to a geopolitical fragmentation, where the blocs, namely the EU and some G7 countries, the US and China, are not entirely distinct. At the same time, there are many neutral countries, which increases the complexity of trade and investment," says Valerie Brunner, member of the Managing Board of Raiffeisen Bank International (RBI) and responsible for Customer Coverage in Corporate and Investment Banking. Companies have to give up the idea that all goods and raw materials are freely available on the world market at any time. "Our customers have been dealing with the impact of the new geopolitical conditions on their business for months. With our range of export and trade finance, hedging and tailored working capital solutions, we are helping them to thrive in the current volatile environment," says the banker, who believes that the key to success in an ever-changing world is a combination of strategic clarity and adaptability. However, she also believes that Europe is under pressure as an industrial location: "We have to acknowledge that it has fallen behind in global competition. It is therefore essential to strengthen Europe and Austria as a business location," says Brunner.

The current global conditions are also quite challenging for the implementation of climate protection measures. According to Brunner, global warming is a fact and dealing with it is a race against time. "The EU remains committed to climate protection and has created a legal ESG framework, which should be simplified and made more practical through the omnibus package."  Other countries such as China, Brazil, Turkey and Japan have also introduced legal ESG disclosure requirements. "The US, on the other hand, has withdrawn from the Paris Climate Agreement, sending a clear signal," notes Brunner. Nevertheless, the global realignment also provides an opportunity to position sustainability as a key component of economic recovery, resilience, and stability. "The EU Commission is pursuing both economic growth and concrete climate goals by targeting investments in green technologies and infrastructure," explains Brunner. She cites specific figures: In Central and Eastern Europe alone, it is estimated that some €740 billion will need to be invested in renewable energy infrastructure by 2050 to stay within the 1.5 degree target. "The energy transition will also require improvements in energy efficiency and widespread electrification. This will also require high levels of investment, for example in European industry," says Brunner, who sees a "significant role" for banks in this context. They would not only provide financing to support innovative projects and technologies. For example, RBI's financing volume for investment projects in the renewable energy sector for corporate and institutional customers amounted to around EUR 1.1 billion by the end of 2024. "Banks can also bring investors and Corporates together on the capital market, structure alternative financing products such as green promissory note loans or green bonds, and advise on available EU subsidies," she explains.

As complex as the current situation is, Brunner remains optimistic: "I am convinced that every crisis will provide us with valuable insights that will enable us to provide even better support in our dialog with our customers. Ultimately, every challenge strengthens us and makes us more agile for the future.