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So, every cent, every penny saved in energy efficiency can really
improve the quality of life of these people. We also have looked at some
other numbers. This is what we call the Europe 'Heat or Eat' dilemma.
We discover that in Europe, more than 18 million of people have to
decide between giving food to their kids or heating the house where
they are living. So nowadays, adding the right strategy to European level
and the global level, is a question of political urgency for the European
Union. We have a very old stock of housing. If you look housing stock in
European cities, more than a quarter has been built after WWII, and one
quarter has been built before WWII. So we need to improve the quality
of our houses, as soon as possible. At the end of the day, the decision to
improve a house is only on the owner of the house. There is no public
strategy that can intervene, if you don't convince a husband and a wife or
two partners to decide to make works in the house. And we all know how
difficult it is to convince a family to make works in their house.
The banks are in a special place to convince families that there is an
economical case to improve their house, as it will safeguard their wealth
and improve the quality of their life. So, the banks are the only one that
can really convince all of us to go back home, and convince your wife or
your husband and try to make the works in your house to improve the
energy efficiency of your house one notch up. What will happen if you
improve the energy efficiency of your house by one notch? Well, let's use
Danish numbers. I am an Italian so I don't want to use Italian or Greek
numbers; I need to use Danish numbers to convince the European
Commission. In Europe, we have something which is called "European
Performance of Energy Certification", which is called the EPC. This
ranks the quality of the energy consumption for your house from A to G.
In Denmark, the value of the difference between A or G for a same
house is 64 thousand of euros. It's quite an important amount. The
energy savings achieved from G to A is around 3,000 euros per year,
or 250 euros per month. There is another analysis; if you move up one
notch on average, assuming a mortgage of 30 years, you can improve
the quality of the house by 24,000 of euros. So, it's more or less an extra
room in the life of a family. So there is a strong economical case to push
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the European families towards an energy efficiency behavior, and we are
asking our institutions, the European Commission and the European
Central Bank, to take action, and when they implement Basel, they Speech Keynote
should give banks the right prudential treatment to allow weighting of
this asset. We are now in negotiation with the European Commission,
which is about to implement the Basel framework in Europe. In addition,
we will have a group of banks; we have created the pilot phase banks in a
global level with 46 banks implementing the same definition for energy
efficiency, and doing the same thing around the globe, from Canada,
Brazil, Singapore, and why not Korea.
So we really welcome you to join us as pilot banks, because we want to
build a global case to tell the Basel Committee that they cannot compare
riskiness for energy efficiency mortgages with normal mortgages. Because
the risk level is completely different, and our investors in the future will
factor this in, in a different way. We are trying to build a strong case
to produce evidence at the European level; those are the names of the
banks involved in our initiative. Those banks will be meeting at the end
of this month in September, in Venice, and we will be discussing how to
take common action at European and global level. That day in Venice,
we will have the governors of Bank of Italia and the Italian central bank,
who will explain to us how central banks are trying to digest the ESG
parameters in the repo transaction policies in market activities, in order
to give room to banks to play an important role. Because banks can help
the transition to energy efficiency, they can help growth, they can help
in change the behavior, and they are the only ones who can help every
single family in improving the quality of life of their kids.
With this I would like to conclude my intervention. I would like to
leave room for the discussion for the panel but it's a call to the Korean
community and the global community to be part of our institution, and
to join us in building a global case to fight energy transaction and to
give answers to the consumer of tomorrow, because your kids, our kids,
have different needs. We want to preserve a better future for all of them.
Thank you all for your kind attention. We look forward to serving you
close to us. Thank you.
2019 6th AFIS & ASMMA Annual Meeting 265