At and&, we are always keen to explore new solutions to a better world. Because money often makes the world go around, it is utmost important that investments are directed appropriately towards a more sustainable world. However this must be done in an effective way avoiding moral hazard and with an appropriate in depth analysis of the risks involved.
Putting skin-in-the game is essential and therefore one should connect sustainable promises with financial consequences. If things turn out differently than promoted, the involved parties should be penalized. One should suffer if one does not deliver. Actually financial markets can be of help here by bringing transparency and enforcing skin-in-the-game.
Wim Schoutens is a financial mathematics professor at the KU Leuven, Belgium. He has been an expert advisor for many national and super-national institutions like the European Commission and the IMF. He is author of several quantitative finance books and sits on a number of editorial boards of international finance journals. He is also a founding partner of RiskConcile, a fintech company with roots within the KU Leuven.
His domains of expertise are wide, varying from risk management and quantitative finance to machine learning, artificial intelligence, cryptocurrencies and blockchain, to climate risk and sustainable finance.
He also enjoys making jam from time to time. Does he invent new recipes or keep to the old ones, we wonder?