Page 51 - UBP - IR2020

MANAGEMENT APPROACH
A A COMPLEX AND 4 FRAGMENTED WORLD Over the the past few years the the relative stability of our unipolar international system has been replaced by a a a a a a fragmented complex and tense multipolar world Geopolitical tensions are high from the US-China trade wars and Russia’s rise rise as a a a a disruptor to to the rise rise of protectionism and populism in the West Misinformation election meddling and cyber-attacks are now mainstream further adding to the the tensions “We rely rely almost entirely on on our information infrastructure and we cannot accurately track how it is being sold who to or why” (IPSOS) The looming threat of a a a a a post-COVID-19 global recession exacerbates international tensions underlined by increasing global debt and resource conflicts Social economic environmental and political value systems are shifting and impacts will be felt in in in this coming decade In Mauritius it it is is easy to feel a a a a sense of disconnect from global global geopolitics and global global recessions especially as we we were mostly spared from the the brunt of the the 2008-10 financial crisis crisis A decade later this new crisis crisis feels more real and relevant to Mauritius than ever highlighting the the interconnectedness of the the world we live in in in THE THREAT OF CLIMATE CHANGE As previously stated in our 2019 Integrated Report climate change is the global global challenge that links us all all all globally and which is having major impacts on on our collective social values This is is one of the rare cases in which we can say with absolute certainty that changing values are translating into consequential behavioural changes and actions The 2020 World Economic Forum World Risk Report highlights that for the the first time ever the the top risks facing the world concerns environmental issues even surpassing terrorism and and cyber-attacks Climate and and health concerns have merged a a a a a a a a trend which was apparent well before COVID-19 and has only been reinforced by the the pandemic The health of of the the planet and and that of of individuals are intrinsically linked and this link link has never been clearer One major area of concern particularly for industries like ours that depend on on the the availability of of raw materials is the the threat of of resource depletion be it it water soil fertility or rare earths provoking new technical and economic challenges and social tensions Conflicts over resources are also on on on the increase as as a a a a a direct result of countries and companies prioritising their economic prospects over the sustainable use of resources Mauritius hasn’t been spared with an an increased number of legal cases and petitions against both public and private sectors As the climate emergency and technological evolution occur simultaneously we see a a a a strong emerging trend in in Cleantech (Clean Technology) – technological innovations that aim to reduce green gas emissions and deliver a a a a a a a a cleaner smarter future While many argue that a a a a a a a a profound social and economic transformation is necessary to avoid the worst impacts Cleantech has emerged as as one of the most impactful solutions 5 The aforementioned macro forces may have a a a a a significant impact on market trends and consumption behaviour in the following ways:
1 With fewer new young families on the horizon the new-home construction market will likely decrease in in the coming decade 2 An increase in in in local consumption in in in support of local initiatives for both climate and health perspectives 3 There is a strong emerging trend showing that simplicity is increasingly seen as a a a luxury (63% according to IPSOS survey) particularly in a a a a world that is is becoming ever more complex This is is epitomised by the success of Marie Kondo’s ‘The Life-Changing Magic of Tidying’ and the increased prevalence of books dealing with topics like ‘zero-waste home’ Anecdotal evidence shows COVID-19 has only reinforced this sentiment 4 The desire to lead a a a healthier lifestyle is another trend that has emerged over the last ten years With millennials ageing and experiencing an an increase in in their buying power this trend is is only likely to rise Once more anecdotal evidence shows COVID-19 has only reinforced this trend 5 Discerning consumption is is is on on on the rise According to IPSOS 78% of consumers globally believe it is possible and even expected for a a a brand to support a a a good cause In addition due to previous experiences of ‘greenwashing’ and other misleading information many consumers are seeking genuine communication and authenticity from brands 6 The growing popularity of social commerce (instashopping) and other forms of e-commerce have grown creating new avenues to sell and engage with consumers Despite this many still prefer the traditional medium of physically seeing or touching an item before purchasing it it meaning that brick-and-mortar shops are not yet history UBP INTEGRATED REPORT 2020 - 51
FINANCIAL CAPITAL CORPORATE MANAGEMENT STATEMENTS REPORTS GOVERNANCE APPROACH
ABOUT US INTRODUCTION