Corporate Social Responsibility
Achieving the missions of both the International Monetary Fund (IMF) and World Bank while supporting the UN in global peacekeeping
Increasing Financial Markets Stability
With increasing international scale we are able to offset a growing volume of contrary risk positions and hence we can set more and more long-term FX and interest rates as well as commodity prices which again stabilizes financial markets. The latter goes so far as to enable us to help central banks and governments to entirely mitigate financial crises by finding, assuming and netting falling and surging risk positions across various countries, industries and customer company stages and as a result to give our customers the aforementioned long-term and reliable rates in exchange for a small percentage (currently 1.94% and declining over time) of their revenues which is still a lot cheaper then they could hedge these market risk on their own (2.86%).
With increasing size we are also put in a position to drive a socially accepted change from old to new industries since we become the institution bearing the spread and making the market between the two different required rates. Higher rates will drive creative destruction and hence benefit younger, innovative companies while low interest rates drive asset prices and keep a lot of “zombie” companies alive. It is also a chance to end Quantitative Easing (QE) and thus bring equity funding volumes and rates together again and hence get back to normality where central banks can take effective actions again.
Fostering International Trade
Since customers with RiskPool do no longer have to worry about FX rates they can expand and trade more easily across borders which again will foster the global exchange of goods and services and hence lead to sustained growth for all. It might over time even be possible to approach real free trade with fair rates targeting hegemonistic actions since free trade increases prosperity for the citizens of all participating nations by allowing consumers to buy more, better-quality products at lower costs. It also drives economic growth, enhanced efficiency, increased innovation, and the greater fairness that accompanies a rules-based system. These benefits increase as overall trade—exports and imports—increases. Thus Mount Wish will mentioned also strive to counteract hegemonistic policies and unhealthy subsidies.
The longer-term we can set the FX and interest rates as well as commodity prices by assuming the risks from all parties the more sustainable becomes the entire economy as market risk become quasi-extinct or at least very limited. Beyond this, we can act with increasing size like an independent global central bank and thus set terms on our platform benefitting society as a whole and thus drive sustainable growth as we bear all financial risks. It will also drive a socially accepted change from old to new industries since we become the institution bearing the spread and making the market between the two different required rates as the current monetary policy and system alone can’t serve both interests.
Ending Poverty and Hunger
Poverty alleviation and fair market access happens via two aspects: First RiskPool is allowing entrepreneurs in developing and emerging markets to tap into abroad funding more easily since they do no longer have to spend insane amounts on hedging FX rates which again leads to the effect that their national interest rates adjusts to and stabilizes at a more global level as well and hence their overall economy will grow. This again contributes to the aforementioned international trading activity. Secondly, it happens via our complementary yet seamlessly in RiskPool integrated market places (FinCaT, FundMaster, BiSure, etc) allowing them to interact more easily with banking, insurance and finance partners around the world more easily and hence really receive the best solution for their needs on the market. Beyond this, we can and will use our increasing power (this includes both comprehensive in-kind giving and significant use of internal capital resources) to impact FICC prices in a way that it benefits society as a whole (fair exchange and interest rates as well as reasdonable commidity price levels) and by this we mean not only the above mentioned economic imprivements but also ensuring affordable food prices while enhancing education or driving healthcare as well as medical research around the world to name just a few.
Global Peacekeeping, Innovation and Prosperity
By assuming all financial risks and netting them across customers, regions and industries and providing open and transparent financial services marketplaces we deliver an important part of peacekeeping since global inequality and hence migration and war is a result of current financial policy and limitations acting in a hegemonistic, counter-innovative and old-industry-focused manner. Thus low interest rates are neither in the interest of creative destruction nor international trade where countries exchange goods based on their specific strengths and consequently grow their economies. Instead current politics have led to an asset bubble.
Hence RiskPool in combination with its complementary marketplaces can help to drive global trade and innovation while hedging current terms for its mature-industry customers and where necessary make a market between the needs of these different stakeholders. This said our solution will lead to economic growth in critical regions and hence help to solve migration crises and distribution wars since it will benefit younger, innovative industries in established countries as increased global trade tends to compromise older industries which are consequently moving to these emerging markets. Over the long run we will see that conditions and industrial bases harmonize globally and hence the key differentiator will be innovation only. At the same time it buys industrialized countries sufficient time to adapt (forcing them into the required change) without hurting the growth of developing countries. Beyond this, long-term global harmonization will be a driver to sustainable and modern social policies as required with increasing automation. Thus we will provide the way into an innovation-driven world with socially fair and inclusive conditions for all.
This said, our solution and thus contribution to global peacekeeping and fighting extremism will be even more important in the upcoming financial crisis as this crisis otherwise might have the potential to give rise to global security and social issues by worsening general conditions for large parts of the global population. With regards to all customers (no matter where they are or what they do) our solution will also help them to get better through the next financial crisis as major risks are born by us and netted on a macro-level which means that they do not have to worry about extreme volatility or plummeting markets. The macro-level risk pooling and netting will also help to keep financial markets a lot more stable in general and thus make it more unlikely to see extreme financial crises. . Hence we can achieve the mission of the UN, IMF and World Bank with a far higher degree of efficiency and efficacy.
Beyond this, our unique access to data at large scale paired with world-class analytics capabilities enables us to work with security and intelligence agencies to detect and fight criminal activities.
5% Initiative, Charities and Social Causes
Starting January 2019 all future customers will now per contract be required to give at least 5% of the cost savings achieved with our products to social causes. This means that by 2021 more than 250 billion USD will go to charity via this initiative alone.
Use of network effects in favor of those who need it:
Our pledge is that we will use at least 1% of our long-term sustainable EBIT until reaching 10bn EUR in profits. Thereafter the amount shall increase to 5% and upon reaching 100bn EUR to 10%. The amounts shall be granted as in-kind-giving (RiskPool credits and preferred rates) to selected social enterprises and organizations or be used to positevely benefit society on a broader macroeconomic level (with regards to the latter please also refer to our cooperation with the IMF, UN and World Bank).
Mount Wish additionally and under the same conditions donates an amount equal to at least 10% of the previously mentioned in-kind giving to various charities. The final charities in this case shall be chosen by our employees using a voting system based on a proposal list with selected charities prepared by Founders Pledge and the Mount Wish Board of Management. With regards to the preparation of the list our employees can also recommend charities and indicate causes about which they care. To the investors who are worried about CSR we ask you to note that among others socially active companies have nowadays a much easier time to recruit and retain qualified employees with a sense of sustainability (which we believe is also extremely important in business management) compared to other companies without a strong CSR programme (further strategic rationales in this context can be explained upon request).
Transformational Redundancy Program: Taking responsibility for product-related consequences
As our solution will cost many jobs due to the high degree of automation we will team up with well-known consulting and coaching firms to help every new customer or business partner in managing the difficult transition in terms of finding new and attractive career and live paths for the then in their prior role no longer needed employees.
Driving education across Finance, IT and beyond
Mount Wish is dedicated to enhancing financial literacy especially among young people since we think that it is absolutely shocking that according to a recent OECD study still a huge part (in Germany, for example, a third of the population) is insufficiently educated with regards to financial questions. Well, we are not talking about analysing the most complex financial instruments here but about the very basics such as being able to properly calculate interest rates, apply simple budgeting techniques, understand key stochastic expressions or about knowing the difference between funds, shares and bonds.
Coding and IT literacy
Beyond this we also cooperate with various well-known education providers to drive IT and coding literacy.
In addition to the two above mentioned more specific programs we also offer a limited number of scholarships to students who committ to working with us for at least two years after completing their degree.
Senior Associate, CSR and External Relations
Hannah is happy to help you with any questions or issues concerning Corporate Social Responsibility issues or External Affairs.