ICMIF has welcomed the recent launch of an EU base for Coop Exchange in Malta which, the fintech platform says, marks another significant milestone in the world of cooperative/mutual investment. With its headquarters in London, Coop Exchange is an international platform for raising capital and trading financial instruments directly aimed at supporting the cooperative and mutual sector.

Coop Exchange says the platform aims to revolutionise the economic landscape by connecting the immense amounts of patient capital that exists in the pensions markets – predicted to hit USD 40 trillion of ESG assets by 2030 – with businesses that deliver long-term sustainable growth through purpose-driven and people-centred approaches: that is to say, mutuals and cooperatives.

The launch event was attended by various leaders from the cooperative, mutual, and sustainability sectors, including members from local cooperative bodies, representatives from the Malta Financial Services Authority (MFSA), and the Minister for Finance, Clyde Caruana.

In a video address, Maltese Prime Minister, Robert Abela, highlighted his country’s ambition to be a leader in sustainable finance and digital transformation. He expressed pride in Coop Exchange’s decision to establish its EU base in Malta, noting that it aligns with the country’s efforts to drive funds towards activities that support climate neutrality and societal welfare. Abela assured attendees that his administration will fully support Coop Exchange in becoming an integral part of Malta’s dynamic and progressive financial sector.

Stephen Gill, Founder and CEO of Coop Exchange, painted a vision of an economic landscape dominated by businesses prioritising social good and governance. “Imagine a world where public ownership is characterised by community-driven investments that shape the future for the benefit of those communities. Investments supported by purpose-oriented investors and institutions who appreciate that sustainable financial investment and socially conscious impact investing are not mutually exclusive but can be a force for good. This transformative shift in our economic paradigm is what Coop Exchange is at the forefront of.”

Gill also emphasised the importance of aligning investments with cooperative/mutual values: “Younger generations are demanding a new way of doing business, pushing those in power to address wealth inequality and driving investment towards community-owned, purpose-oriented organisations. Cooperatives, with their inherent values of equity, solidarity, and mutual support, align closely with the principles of ESG investing.”

Speaking about the launch of Coop Exchange earlier this year, Shaun Tarbuck (pictured in Malta), Non-Executive Director of Coop Exchange and CEO of the International Cooperative and Mutual Insurance Federation (ICMIF) said: “I believe that the ground-breaking approach of Coop Exchange will champion the global growth of cooperatives and mutuals, perfectly aligning with the aspirations of ICMIF members that are looking for fresh avenues for impact investment and truly sustainable funds. The needs and values of our members align perfectly with the goals and values of Coop Exchange.”

At the launch event in Malta in July 2024, Tarbuck, spoke about the long-term perspective of the cooperative (and mutual) movement: “The cooperative movement is now necessary because we are long-term thinkers. The UK government’s pledge to double the size of the cooperative economy over the next five years is inspiring. Imagine if 25 governments made similar commitments by 2025, it would change inequality and create a fairer society and jobs.”

Barry O’Dwyer, Non-Executive Director of Coop Exchange and Group CEO of ICMIF member Royal London, underscored the importance of ESG considerations: “Recent research shows that ESG considerations are in the top three priorities for millennials, and the only priority for Gen Z. Coop Exchange offers the opportunity to connect the immense amounts of patient capital in the pensions markets with businesses that deliver long-term sustainable growth based on doing the right thing: being purpose-driven and having people at their core.”

Dr Ariel Guarco, President of the International Cooperative Alliance (ICA), focused on the global impact: “Coop Exchange is a fundamental instrument for the fulfilment of our cooperative principles and for increasing the economic power of the cooperative movement on a global scale. By directing resources towards a triple impact: economic, social, and environmental, Coop Exchange demonstrates that cooperative principles can and should be put into action through concrete tools that generate visible fruits for cooperatives and strengthen the cooperative ecosystem globally.”

Jeroen Douglas, recently appointed ICA Director General, addressed the issue of growing inequality: “Prosperity for all cannot be achieved without inclusive finance. Coop Exchange will offer a unique opportunity to close the income gap and provide finance for those who need it most.”

Dame Pauline Green, Non-Executive Director of Coop Exchange and former ICA President, emphasised the need for innovative solutions for cooperative capital: “Coop Exchange is a creative, new way of doing business for cooperatives, and it has the potential to help double the size of cooperatives in the UK and hopefully worldwide. This launch marks our progress towards resolving the challenges of cooperative capital acquisition.”

Jane Zammit, a Masters student in Sustainability, Climate Change and Transition to Net Zero Economy, was due to address the event to speak about the importance of cooperatives in addressing the climate crisis but was unable to attend due to illness. However, her twin sister, Trisca, did attend and shared Jane’s words with the audience: “Our generation is acutely aware of the climate crisis. Cooperatives play a crucial role in the transition to a net zero economy by aligning economic activities with social and environmental goals.”

Martin Chrisney, One Americas ESG Chief Operating Officer, concluded with a vision for the future: “The business principles of cooperatives align 100% with the SDGs and the Paris climate goals. Coop Exchange is the platform where cooperatives and investors can define new products, services, and structures to meet the requirements of the cooperative movement, solving some of the most pressing global problems.”

Photo: Matthew Green