Decarbonization: when economists think of fraternity as a solution

The economist Koen De Leus of BNP Paribas is well known for his concept of the “K-shaped recovery”. This concept enables us to rethink our approach by discarding outdated beliefs and investing in new ideas that hold promise for the future. We believe that this shift in perspective will help us avoid the anticipated failures we fear.

Success, in this context, is as rewarding as successfully climbing the north face of a renowned peak. The results can be astonishing, and a new light is ahead of us. What once seemed inconceivable becomes achievable, turning “no ways!” into “why nots?”

One of the “inconceivable” ideas is that fraternity could decarbonize our humanity. The concept of fraternity — the notion that we can love, help, and cooperate with strangers as if they were our own family — is often viewed as idealistic rather than pragmatic. The homo economicus, driven by self-interest, stands in contrast to the homo fraternus, motivated by the collective good. Let’s take decarbonisation as an example. Nothing is more collective. Carbon dioxide (CO2) knows no borders; we will either succeed or fail together.

was there in my thoughts when Mia called me. This former client, an independent woman and CFO of an international group, informed me that she was retiring and wanted to invite me to the reception organized for the occasion. "I hope to make my departure a meaningful moment," she said. Mia came out of two esteemed French elite institutions. She debated what concept would better honor them in her speech: Liberty, Equality, or Fraternity.

She cherished freedom, with a near-libertarian perspective. She confessed to me that as a child, she used to say “I have no master and no teacher !” She also valued equality and advocated for a 50/50 split between distribution and capitalization for the pensions of her followers. Furthermore, she was interested in observing the societal impact of ESG (Environmental, Social, and Governance) pension funds and expressed doubts that baby boomer retirees would use their life annuities to contribute to saving the planet.

Ultimately, it was Éric Le Boucher, a former student of the same schools she attended, who inspired her to pursue the idea of fraternity. Éric is like a professional boyfriend to her; she tends to believe everything he says. She confessed that his writing as an economist gave her chills. In one of his columns, he discussed the concept of fraternity. He argued that reducing CO2 emissions requires a global approach, as this gas knows no borders. He suggests that cooperation with India and Africa is more beneficial than imposing taxes on their exports. While some might view this as rather obvious, even a bit crazy, it has inspired Mia, who envisions gender-neutral brotherhood as the guiding principle of her retirement.

She felt a tangible sense of fraternity with the New Financial Rules (NFRs). These intragroup financial guidelines were designed to promote cooperation among, encouraging collaboration rather than destructive competition. It was a concerned salesperson who brought this issue to her attention, expressing worries about the declining number of contracts. He told her, “Your financial rules are harming our deals. Everyone is focused on their own interests, and, as a result, we become too expensive. Your transfer pricing rules are stifling the potential for collaboration in a group where we all share the same goals.”

With the help of consultants (myself included), she encouraged cooperation, discouraged personal agendas, and shared the risks and rewards of each project. She nurtured a sense of community by encouraging expressing gratitude, offering encouragement, and practicing forgiveness. True to her belief in leading by example, she would ask for forgiveness for the unintentional betrayals she had committed throughout her career, such as being late for every meeting. She would congratulate with a "Never give up" spirit, and thank every guest for even the smallest gestures that positively impacted her.

At the end of our conversation, she asked me: “What do you think? Isn’t it too sentimental for a farewell drink?

It’s never too sentimental for me, Mia.

Crédit photo : © Unsplash - Nick Fewings