Last year, our theme was disruption. I don't think anyone anticipated what the world has gone through in the last 15 months. So far, it seems that we have adapted, particularly in the commodity industry where our trade channels have continued to operate with few problems in terms of supply or logistics. It is surprising that despite the various lockdowns, there is a resilience of demand in some sectors of our economies.
There were maybe two major disruptions to our industry and these were only remotely COVID-related. I would mention the new trade barriers certain countries have put in place to protect their weakened economies with most often a detrimental effect on their consumers. Then there are the major losses incurred by the financial sector in Asia. Large trading houses seem to be weathering this storm but it has not always been smooth sailing for the smaller market participants. It is ironic that even though regulators fear institutions that “are too big to fail”, their actions often lead to further consolidation creating precisely that risk. I doubt losses of such magnitude could happen in the Swiss trading hub. We are privileged to be in a micro-cosmos with well-established trading houses and shipping companies, experienced auditors, seasoned bankers and underwriters, knowledgeable sector consultants and of course, controlling companies; information circulates freely and problems are usually rapidly anticipated and mitigated.
Climate change and environmental concerns are clearly on our agendas. The world needs to decarbonize and today's consumer seems to be putting increasing pressure on financial institutions and what they finance. These are very valid concerns that will accelerate change. Several brands have made bold environmental commitments and traders, as part of their supply chains, will make them a reality. Sustainability has gradually made its way into the purpose definition and mission statements of most trading companies, not to mention the credit analysis of most banks. Trading companies are doing their share to protect the planet but the campaign for the Responsible Business Initiative reminded us that our actions are not yet recognized, our industry has to multiply efforts in communication.
Among the adaptations brought about by COVID-19 is working from home. This was made possible by today's technology, which, even ten years ago, might have been proven difficult. The situation has also greatly pushed forward the dream of the “paperless office”. The pandemic will have a long-lasting impact on the way we work. There are many technology-related initiatives in which our industry participates that are aimed at streamlining trade flows, such as Blockchain and cryptocurrencies. We hope to shed some light on these developments in this edition. I also take this opportunity to congratulate our teaching staff and our students for completing our courses on-line. I have always wanted an on-line offering so companies abroad can benefit from the Swiss excellence in education; COVID has forced it upon us. I hope that we can continue with an on-line selection after things get back to normal.
