Page 261 - 2019 6th AFIS & ASMMA

pollution of the European Union for 40% of the entire pollution of the November, they would not have to buy any more French wine, and they
Union, and 40 percent of the energy consumption of the Union. This can be happy with their English wine, without any problem. This is a
is very important information, because the European Union is trying sign of the global warming that is impacting our economy, and is really Speech Keynote
decoupling the GDP from energy consumption. So, the consumption impacting our way of behavior.
of the housing sector is contributing enormously to the strategy of the
European Union to reduce energy consumption and increase GDP. I was also surprised on Saturday night, when we were out with friends.
There was a daughter of our friends. She's a young teenager, she's 14,
What can be done by the mortgage sectors to help the European and she told me, "I don't buy anything with plastic". And she showed me
Union to achieve this huge target? Well, we think that making every the toothbrush in bamboo. So, this young teenager is buying bamboo or
single house of every single citizen in Europe more energy efficient can wooden toothbrush. Our consumer of tomorrow, our young generation,
help two things from a Basel point of view, from a prudential point of are very sensitive to this topic. So, the next client of your banks will
view. Well first of all, we think that improving the quality of a house is be much more green-aware than all your clients of today. So it's very
important, in a way the energy consumption of the house can improve important that we have a view to the future, and improve our production
the loss, given default of every single asset in the balance sheet of the line as soon as possible, because we have to be aware that in a few years,
banks. Because the loan to value of every single house will be improved, consumers or investors will ask us something different; maybe not in a
in the next crisis, the balance sheet of our banks will be much more few years, but maybe in your next road show. And as lenders, we need
resilient. to be ready to make our case and build a prudential framework, which
will help us at the Basel Committee level, to digest this information of
Moreover, we believe that the probability of default of a family will improving LGD and probability of default in a completely new way.
be improved and the family will have better capacity to manage a And congratulation to the ESG deals that have been concluded here in
financial crisis and to avoid obliging the banks to enter default and then Korea, because I think this is an important source of development for
to intervene. Now what I'm saying is extremely obvious from our point the European investor base. The attention to these parameters is very
of view, but as you know, not everyone believes that global warming is clear in the market, and as an industry, we need to work together to
impacting our world. Let's go back to the news and let's look also what move on. The mortgage industry is a very important social lift, and we
happened in the last two to three days. I wanted to mention the hurricane are important to our politicians, as long as we continue to do our simple
hitting Bahamas and will hit very soon South Carolina. But I don't want business; provide a young family with the opportunity and resources to
to make reference of bad events. I will just make reference to something buy a house and move forward.
which struck me.
The housing costs in Europe are quite an expensive element in the life
Let's have a look at what happened in the wine production in UK, of every single citizen. We have tried to show you all different regions
in the last two to three years. Wine production in England and Wales that we have in Europe. The green line in the histogram is the poor in
increased to 15 million bottles per year. Only between 2017 and 2018, Europe, and the blue line is considered the rich of every single country.
they increased 5 million bottles. This is the result of the global warming. As you can see, in Europe, housing costs represent more than 40% on
The line of the global warming is going up very fast and they will start average of the expenses of a family with some difficulties, and less than
to grow wine in Belgium, which is a challenge for the beer industry 20% of a family without difficulties. But in some countries, for example,
in Belgium. But our UK friends will be very happy, because since in Greece, it represents almost 80% of the spending of a family.

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