EIB Board of Directors approves €10.8 billion of new financing for energy, business, health, housing and c
€5 billion for clean energy, water and forestry
€2.6 billion for corporate innovation and business financing
€3.1 billion for health, housing and education
€137 million for sustainable transport and better communications
The Board of Directors of the European Investment Bank (EIB) backed €10.8 billion of new financing to support renewable energy, restore degraded forests, build affordable homes, new hospitals and better schools, upgrade water, transport and communications networks, and enable businesses to innovate and create jobs.
EIB President Nadia Calviño said “Today´s Board had a strong focus on reinforcing Europe´s strategic autonomy, energy efficiency and security. We approved new financing for energy projects, including solar, wind and energy storage and the construction of a pioneering clean energy island off the Belgian coast. Outside Europe we are supporting countries, including small island states, to better protect their environments and communities.”
Supporting clean energy and improving resilience
The August Board of Directors had a strong focus on projects related to the green transition, strategic autonomy, energy efficiency and security. All EU projects discussed were financed under the RepowerEU programme to drive the energy transition in the EU.
Financing of €5 billion was approved for new energy, water and forestry investment.
This includes backing construction of a pioneering island 45 kilometres off the Belgian coast to channel clean energy from the North Sea to the mainland, connecting several European countries.
Investments were approved to support new solar power schemes in Italy, Poland, Romania and Spain, climate action investments in France, upgrade of district heating networks in Lithuania, onshore and offshore wind projects in the Netherlands and better integration of renewables into the electricity distribution network in Poland and Spain.
Furthermore, the Board approved an important project to support sustainable forestry in Moldova.
Enabling business to create jobs and innovate
In addition, new business financing totalling €2.6 billion will help smaller companies to grow and unlock corporate research and development.
This includes support for innovation projects in Austria, France, Germany, Italy, the Netherlands, Romania and Sweden, digitalisation schemes in Italy, targeted financing for healthcare companies in France and sustainable business investment in Belgium and Germany.
The Board also welcomed two equity participations in investment funds to support the private sector in Vietnam and microfinancing in India.
Building new homes, hospitals and schools
The Board backed €3.1 billion for constructing affordable homes, building new hospitals and healthcare facilities and upgrading schools.
This includes thousands of new energy-efficient homes in Austria, Germany, Italy and Spain, medical research investment in Spain, new hospital and medical facilities in Finland and a new secondary school in Germany.
Backing for a new initiative to expand medicine and vaccine manufacturing and improve medical diagnostic services across Africa was also agreed.
Upgrading transport and communications
The Board also approved €137 million new financing to upgrade railway rolling stock in France and submarine internet connections to West Africa.
Launching the Wind Initiative and helping small island states to survive the climate crisis
Today´s Board meeting follows from the strong activity of the EIB over the past weeks.
The first operation of cross-guarantees under the Wind Initiative was launched in Germany, and two flagship projects were approved to support Small Island States at the frontline of climate change: the debt for climate conversion in Barbados and the technical assistance project to assess the feasibility of a port in Kiribati, Christmas Islands, to provide a refuge for people living on islands expected to disappear under rising sea levels.
In the past weeks, investment have also been approved for cutting-edge heart surgery technology, student loans, lithium mining in Finland, the modernisation of Poland’s railway system, and the world’s first zero-emissions tyre factory in Romania.
Health and wellness offer hard hit hospitality sector £21bn boost
Following Covid-19, improving health and wellbeing offerings could offer hospitality and leisure businesses £21.1bn in additional revenue by 2023
An additional 4.8 million Brits, or 9% of the UK population, now say health & wellness is ‘extremely important’ to them after Covid-19
61% of businesses plan to invest more on health and wellbeing offerings in three years’ time
New research from Barclays Corporate Banking reveals that Covid-19 could lead to £21.1bn in additional wellness-related business revenue across the UK hospitality and leisure sector by 2023. Beyond increased hospitality and leisure revenues, these changes could have a knock-on effect for the wider economy, adding a potential £11.1bn in gross value add to the UK.
The virus has accelerated consumer demand for health and wellness offerings, driving the additional potential revenue boost by £2bn. Before the lockdown, additional health and wellness options would have led to an estimated £19.3bn in sector revenue by 2023.
New demand for health and wellbeing
Before Covid-19, under a quarter (23%) of UK consumers felt health and wellbeing was extremely important to their day-to-day lives. Following the pandemic, this has soared to 1 in 3, representing an additional 4.8 million people, or 9% of the UK population. On average, respondents ranked the importance of health & wellness as 8.1 out of 10, with the average score post-pandemic around 7% higher than before the onset of Covid-19.
With nearly half (49%) of respondents saying Covid-19 negatively impacted their mental health, consumers are craving breaks. The most popular types of post-lockdown leisure activities to improve mood and mental health were reported to be short breaks (44%), long holidays (33%) and restaurant visits (30%).
Crucially for UK businesses, nearly a quarter of people (22%) reported plans to take more UK-based holidays over the next 12 months, with the top reasons being consumers do not feel comfortable travelling abroad (42%) or worry about travel advice changing while they’re away (35%).
The top priorities for post-Covid holidays are resting and recharging (54%), spending time with loved ones (42%) and experiencing nature (33%). When visiting restaurants after Covid-19, consumers are hoping for healthier options, the most popular of which are low sugar (16%), low fat (12%) and low calorie (12%) options.
Almost a third of UK adults believe that health and wellness offerings should be included as standard by hospitality and leisure sector establishments. Wellness is a permeating culture, that includes commodities like spa treatments and vegan haute cuisine, but also fresh air, a relaxing environment or walks in the countryside.
Mike Saul, Head of Hospitality and Leisure, Barclays Corporate Banking, said: “Hospitality and leisure businesses face uncertainty following the shut-down in March and continuing change as we adjust to a new normal but this is not a time for companies to delay investment or ignore consumer trends. While difficult in the short-term, firms making the right investments now, such as in health and wellness offerings, have the potential to bounce back stronger.
“Understanding the need for rest, mental health and healthier food options for a public still adjusting to the lifestyle changes forced by Covid-19 will allow businesses to better serve their customers and help to make up for lost revenue post-pandemic.”
Business investment in health & wellbeing
When asked why they invest in health and wellbeing, businesses were most likely to say to keep customers returning (46%), make customers happier (45%) and for profitability (40%). These were closely followed by the idea that investment in wellbeing was “the right thing to do” (40%). On average, businesses are putting around £52,723 of money into providing healthier options.
Even before Covid-19, businesses rated the importance of health and wellbeing on average as eight out of 10. Consequently, 57% said they expect to spend more on health and wellbeing in 12 months’ time, while 61% say they plan to invest more in three years’ time.
Potential health and wellbeing heroes
Looking at the hospitality and leisure industry as a whole, Covid-19 has had the most significant impact on accommodation providers. Pre-Covid, health and wellness offerings could have added £4bn to the sector’s revenue, which jumped to almost £4.4bn after lockdown.
Overall, regardless of Covid-19, food and drink is the sector with the most to gain for boosting health and wellbeing offerings, at £10.8bn in additional annual revenue by 2023. As healthy eating becomes a key differentiator for consumers, Brits would pay a premium of 12.1% for healthier food and drink options in health clubs, compared to 4.5% in a pub or restaurant.
The full report can be found at https://www.barclayscorporate.com/insights/industry-expertise/the-wellness-imperative/
Zurich accelerates focus on health and wellbeing under the leadership of Helene Westerlind
Zurich Insurance Group (Zurich) has created a WellCare business to accelerate the Group’s existing health and wellbeing initiatives in markets around the world and apply a global approach to their development. The new business aims to provide retail, SME and commercial insurance customers with unique health and wellness solutions tailored specifically to their needs.
Zurich has appointed Helene Westerlind as Chief Executive Officer of Zurich WellCare to develop and execute the global WellCare strategy and deploy the offering across markets in close alignment with Zurich’s country offices. In addition, she will establish a distribution network by leveraging internal channels and collaborating with external parties.
The flexible and modular WellCare offering will give customers the freedom to choose among core and optional elements, so they can personalize their approach to improving their physical and mental health. The aim is to include features enabling customers to track and assess their activities, ideas on how to get healthier, and, depending on the location, coaching and diagnostics tools, facilitating clinical services to assist in managing chronic conditions, as well as insurance solutions.
“The WellCare business is a perfect example of how Zurich is bringing to life its customer-focused strategy, shifting toward prevention and providing innovative services beyond traditional insurance protection,” Ms. Westerlind said. “Our goal is to empower customers to improve their health and wellbeing, using technology and data in a responsible manner.”
Ms. Westerlind brings a deep understanding of the insurance industry and Zurich’s global businesses to the role. She joined Zurich in Stockholm in 2003 and most recently was Global Head of International Programs within Zurich’s Commercial Insurance business. Ms. Westerlind’s long-standing relationships with brokers and customers position her well to drive the development and growth of this new business.
The Zurich WellCare strategy is based on four pillars:
Prevention: Empowering customers to achieve their health and wellbeing goals by offering customized content, analytics and incentives
Care: Enabling customers to stay healthy and manage certain chronic conditions by providing personalized health and wellbeing services
Protection: Making insurance more relevant by providing improved and new insurance products
Data: Using data in a responsible, secure and transparent manner – in line with Zurich’s data protection commitment – to provide each customer with a unique and personalized experience.
Zurich WellCare will start with a proposition for retail customers and plans to introduce solutions for SME and corporate customers later this year. The retail offerings will be introduced in selected markets in Asia, Latin America and Europe in the coming months.