View
0
Download
0
Category
Preview:
Citation preview
International Co-operative Alliance 1
2007 Global 300 Garry Cronan
FINANCING LOCAL DEVELOPMENT: UNDERSTANDING THE ROLE OF MUTUAL CREDIT AND CO-OPERATIVE BANKS
Conference, Paris 23 November 2007
International Co-operative Alliance 2
International Co-operative Alliance 3
Outline of presentation
• Why the Global 300?• 2007 list• CSR, Developing 300 and National lists!• Major issues
International Co-operative Alliance 4
Why the need for such a list? • Demonstrate co-ops work in a business sense in the marketplace
– particularly in some sectors of the market. Just because they are large does not mean that they can’t still be co-ops or mutuals!
– Showing co-op values work and don’t limit business performance – commercial success and solidarity – important to instil confidence among co-operatives themselves that this way of operating works!
• Question of visibility– Among co-operatives and mutuals themselves!– With media, particularly the business media – international and national– With business generally– To government and policy makers generally, internationally, regionally, nationally
and within industry sectors– To academic and research institutions– To business advisers, accounting/legal etc– To the broader community
• Question of being able to prove your case– Something of a “statistics crisis”– Need to give profile to the statistics issue– Move from rhetoric to evidence based
International Co-operative Alliance 5
Global 300…….
• Concept launched at General Assembly in October 2005
• First Global 300 ranking released at Forum for a Responsible Globalisation in Lyon, France in October 2006
• Second annual ranking launched at ICA General Assembly in Singapore in October 2007
• Surprised many by demonstrating the unexpectedly large size of the biggest co-operative and mutual businesses in the world
International Co-operative Alliance 6
2007 global financial methodology
• Based on turnover, although other criteria possible
• Refinement of sectoral criteria • Highest level of audited aggregation used• USD used for ranking, although for % change of
revenue • Structure as at end of FY 2005 used
International Co-operative Alliance 7
The 2008 list…
• Revenue almost 1 trillion USD• Compared to last year (11% real growth ignoring
currency fluctuations) • Largely confirms total in first ranking• Need a variety of ways of showcasing co-
operative performance and achievements
International Co-operative Alliance 8
(G10)The 10 Biggest Economies in the World
9831,124 1,106
1,7191,910
2,1132,197
4,672
2,800
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
USA Japan Germany UK France China Italy Spain Canada Global300
12,452
International Co-operative Alliance 9
South America0.4%
Asia - Pacific21%
Europe62%
North America17%
Global 300 by Region
International Co-operative Alliance 10
Insurance23% Consumer
26%
Food & Agri 30%
Banks16%
All Others5%
Global 300 by Sector
International Co-operative Alliance 11
G300 - % Of Turnover By Country
15% 15%
13%
6%
4% 4% 4%3% 3% 3% 2% 2%
2% 2%1% 1% 1% 1% 0.5%0.4%0.3%0.2%0.2%0.2%0.1%0.1%
18%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%Fr
ance
Japa
n
US
A
Ger
man
y
Net
herla
nds
Italy
UK
Sw
itzer
land
Kor
ea
Finl
and
Sw
eden
Spa
in
Can
ada
Den
mar
k
New
Zea
land
Nor
way
Bel
gium
Aus
tria
Irela
nd
Indi
a
Bra
zil
Chi
na
Aus
tralia
Sin
gapo
re
Taiw
an, C
hina
Isra
el
Por
tuga
l
International Co-operative Alliance 12
G300 - Number of Coops By Country
67
55
32
2319
141498877653333322211111
0
10
20
30
40
50
60
70
80
USA
Fran
ce
Ger
man
y
Italy
Net
herl
ands
Japa
nUK
Finl
and
Cana
da
Switz
erla
nd
Swed
en
Spai
n
New
Zea
land
Nor
way
Irela
nd
Belg
ium
Denm
ark
Indi
a
Braz
il
Aust
ralia
Kore
a
Sing
apor
e
Isra
el
Aust
ria
Chin
a
Portu
gal
Taiw
an, C
hina
International Co-operative Alliance 13
% Of Turnover : GDP14%
14%
10% 10%
8%
7% 7%6%
5% 5%
4%3% 2% 2% 2% 2% 2% 2% 2%
1% 1%
3%3%
0%
2%
4%
6%
8%
10%
12%
14%
16%
New Ze
aland
Finlan
dSwitz
erlan
dNeth
erland
sFr
ance
Sweden
Denmar
kIndia
Taiw
an, C
hina
German
yKor
eaNor
wayJa
panIre
land
Italy
Belgium
Spain
Canad
aAustr
iaSinga
pore UK
USAIsr
ael
International Co-operative Alliance 14
Banking Sector By Country
39.8%
17.6%
9.4% 8.5%5.6% 5.4% 5.3%
3.5% 1.8% 1. 0 %0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
France
Korea
Netherl
ands
Japan
Canad
a
USAGer
many
Austri
a
UK
Finland
16% of G300
International Co-operative Alliance 15
Banks Top20# Name Country Turnover % Assets Rating Inc Tax (ROE)1 Crédit Agricole Group France 30,722 19.07% 1,385,635 AA- 2,918 15,8%2 National Agricultural Cooperative Federation Korea 24,687 15.32% 199,783 A- 179 12.6%3 Groupe Caisse D'Epargne France 12,196 7.57% 703,423 AA 462 9,3%4 Confédération Nationale du Crédit Mutuel France 11,405 7.08% 516,664 AA- 1,195 13,7%5 Rabobank Group Netherland 11,085 6.88% 599,356 AAA 709 9,1%6 The Norinchukin Bank Japan 10,971 6.81% 577,945 A+ 504 n/a7 Groupe Banques Populaires France 9,758 6.06% 341,819 AA- 1,012 n/a8 Desjardins Group Canada 7,813 4.85% 101,699 AA- 134 14,5%9 RZB Austria 5,646 3.50% 111,130 A1 267 15,5%
10 DZ Bank Group Germany 5,104 3.17% 475,508 A+ 663 19,8%11 SNS REAAL Netherland 4,109 2.55% 80,613 n/a 110 14,1%12 Community Credit Cooperative (CC) Korea 3,721 2.31% 51,835 n/a 119 n/a13 WGZ Bank Germany 3,502 2.17% 87,120 A2 53 n/a14 Nationwide Building Society UK 2,916 1.81% 212,973 A+ 290 6,53%15 Shinkin Central Bank Japan 2,806 1.74% 249,895 A+ 198 n/a16 AgriBank, FCB USA 2,477 1.54% 45,912 n/a 20 8,3%17 OP Bank Group Finland 1,674 1.04% 62,513 AA- 148 11,2%18 Cobank USA 1,581 0.98% 33,835 n/a n/a n/a19 Taiwan Co-operative Bank Taiwan, Ch 1,577 0.98% 59,889 BBB+ 5 5,28%20 Swiss Union of Raiffeisen Banks Switzerlan 1,562 0.97% 82,131 Aa2 128 10,8%
Total Top 20 155,313 96% 5,979,678 9,115Total Sector 161,136 6,082,107 9,126
International Co-operative Alliance 16
CSR – methodologyfrom principles to practice…
• Development of draft measure of Corporate (Co-operative) Social Responsibility
• Reviewed existing CSR criteria• CSR and annual reports• The co-operative difference
International Co-operative Alliance 17
CSR – some reflections
• CSR is increasingly being embraced by our corporate competitors
• Co-op principles in particular the ICA’s Statement of Co-operative Identity are the basis of most co-op operation throughout the world
• Co-ops driven by their values have in many ways been pioneers of socially responsible business
• However, the movement has not done all it could in measuring the co-operative difference
• It has allowed others to claim credit for “inventing “CSR”
International Co-operative Alliance 18
ICA’s Global 300 (draft) CSR approach
We are attempting to developed a measure which incorporates the best aspects of mainstream CSR reporting while taking account of the co-op difference
International Co-operative Alliance 19
International Co-operative Alliance 20
Developing 300
Why create the list?
• Will contribute a development perspective to the Global 300 project
• Look at the role of large co-operatives in thirty economies
• Contribute to our knowledge about co-ops in the developing world where many of members operate
International Co-operative Alliance 21
Developing 300 - methodology
• Will rank co-operatives in terms of their of their relative importance in national economies
• Initially, rank by revenue• Will highlight top 5 in each country • Work with regional offices, national members
and national governments to help collect data• Provide evidence base to support co-operative
development
International Co-operative Alliance 22
Developing 300 - countries
• Americas – Argentina, Bolivia, Colombia, Costa Rica, Haiti, Honduras, Mexico, Paraguay
• Asia - Cambodia, Indonesia, Malaysia, Mongolia, Nepal, Pakistan, Phillippines, Sri Lanka, Thailand, Vietnam
• Africa – Cape Verde, Egypt, Ethiopia, Ghana, Kenya, Mozambique, Nigeria, Rwanda, Senegal, South Africa, Tanzania, Uganda
International Co-operative Alliance 23
Global 300 - National 100 • Use Global 300 methodology to help towards the creation of national lists• So far…..
– USA – The UK recently published their UK 100– Netherlands has issued a provisional NL 100– France have released their first French 100 plus wider movement report– Other countries/sectors actively moving towards similar lists:
• Canada• Singapore• Australia• South Africa• Malaysia• Nigeria• Colombia• Sri Lanka• India• New Zealand, plus sectoral organisations• ICMIF• ICBA
• Work started on mapping existing databases and methodologies to create a global co-operative database
International Co-operative Alliance 24
2008……..
• Global 300 programme part of the movement towards an evidence based approach
• With better data comes greater (self) knowledge, more relevance and ultimately more public authority and profile for the co-operative movement
Recommended