Menno Kooistra

Jeroen: Thank you very much, Menno Kooistra, partner at KPMG, for taking the time to speak to Leaders in Finance ahead of the Leaders in Sustainable Finance event later this month on January 30th. Could you start by briefly introducing yourself, sharing a bit about your background, and explaining what you currently do

Menno: My name is Menno Kooistra, and I lead the ESG advisory practice at KPMG in the Netherlands, with a particular focus on the financial sector. I provide financial services advice on risk compliance as well as general ESG advisory. This includes decarbonization, circularity, nature, climate investment, global climate change issues, and strategy. We also focus on strategizing these aspects for every company we work with. Our practice is strong, with around 100 people dedicated to various sectors, and within financial services, we have 40 professionals specializing in ESG.

Jeroen: When you mention financial services, are you referring to the entire spectrum, from banks and insurance to asset management, and possibly fintech as well? Or are you specifically focused on certain sectors of the financial services industry?

Menno: That’s a good question. It includes every entity in the financial services sector, from fintech and asset management to banking and insurance—everything.

Jeroen:  As you’re likely aware, there is major political and legal pushback at the moment. A lot is happening, for example Donald Trump being in office, but there are also many legal claims either in progress or already filed. What is your perspective on this? Do you think the speed or nature of the transitions will continue, or do you foresee them taking a different direction?

Menno: When you would have asked me this two weeks ago, I saw it as a risk. Given the differences between the Biden and Trump administrations, I knew changes were coming, but the speed at which they unfolded—especially on the first day when the U.S. withdrew from the Paris Agreement—made it clear that this was serious from an American perspective. From a legal standpoint, especially concerning European companies based in the EU with U.S. connections or subsidiaries, they are struggling and seeking advice. In the long term, I believe there will be competition between the two regions. The exact impact remains unclear, but there is already some effect, and I see a kind of domino effect. We are currently grappling with questions such as what constitutes the lighter version, what is the full version, how can we remain compliant, and how can companies navigate this situation. That is the challenge now.

Jeroen: Do you have, on a more positive note, an example of a strategy or policy from a financial institution that has inspired you or that you consider a good approach?

Menno: What I really appreciate is the impact on nature. What I observe now from pension funds and investment bankers is the balance between impact and risk management. Compared to last year, and aside from the political and legal factors in the US, most are now willing to invest in nature. It’s clear that there are costs associated with creating this positive impact on nature, and they are genuinely willing to accept these costs. Despite the many risks, I notice a growing focus on biodiversity in my agenda—understanding what it means and how we can seamlessly integrate it into our organization and assets. This is a great step forward.

Jeroen: Are these primarily Dutch-based organizations interested in this, or do you also see financial institutions from other parts of the world also showing this interest?

Menno: Yes, from a regional perspective, I see many European entities taking this step. However, I also notice that the US seems to be stepping back, which I can understand, given the confusion caused by the Trump administration’s decisions, especially their withdrawal, which has had far-reaching effects. In the EU, there’s a clear focus on how to invest both within Europe and internationally. The question is what it means to invest in countries like Argentina, nature projects in Romania, or in Indonesia. There are clear differences, and yes, from an investment perspective, it can sometimes be difficult to quantify the impact you’re making. However, the willingness I observe from European entities to grow in this area is rapidly increasing.

Jeroen: You already mentioned the broader political landscape and the shifts occurring there. What are some other issues that financial institutions are grappling with or might be concerned about in the coming years?

Menno: The first point, like I mentioned before, is that one dominant region, the US, is stepping back, which has a significant impact. But within Europe, we’re also looking to each other, wondering if we’re still aligned and on the same track. It’s natural, and I honestly think it’s healthy to ask these questions. Another challenge I notice is bringing every entity to the table from a data perspective. We’re gathering our data, but each entity struggles with how to structure and interpret the impact or risks coming from climate and nature data. We’re eager to bring this data forward, for instance, in our CSRD report, but we also need to consider: What does the impact look like next year and in the years to come? This is now the focus of the discussion—how can we improve, and what does success look like? When is “good” good enough? I see this debate intensifying, and the focus has shifted to looking three to five years ahead. We need to do this, but we’re also engaging in discussions with each other. I notice many conference calls and conferences all dedicated to this debate. Can we stay united? How can we move forward? That’s the energy I truly appreciate.

Jeroen: I can imagine. Well, to wrap up, since this is a short and sweet pre-event interview, we’ve been asking leaders in financial services hundreds of times over the last few years the following question: What tips or advice would you give to people starting their career? You can take it more broadly, but focusing on ESG would be especially interesting for starters.

Menno: What I see happening a lot is when someone enters a consulting firm and says, “Hey, I want to do what’s best for the future.”  I think it’s important to be resilient because this agenda is a bumpy road. Honestly, I like that it’s a bumpy road in a way. It’s still moving forward and still going strong. We’re seeing the latest information, we’re witnessing things shift, and we also observe the behavior of our clients. For a consultant, this combination can be very bumpy, sometimes rough, and occasionally smooth. So yes, there’s never a dull moment—be resilient.

Jeroen: One short follow-up: It sounds great to be resilient, but how do you actually achieve that? What are the practical steps you can take to build resilience?

Menno: I think you need to be spot on when regulations are changing. You need to be spot on when you see your client shifting. You need to be spot on in the sense that when clients change their behavior or strategy, you need to challenge yourself and the company. I believe that is a form of resilience.

Jeroen: Perhaps one more before we take off. You’ll be part of a panel with C-level leadership on January 30th. What are your expectations for that panel? Do you have any ideas or thoughts?

Menno: My hope is that everyone will be as honest as possible, because I assume that there is next to certainty about certain things, there is going to be a lot of uncertainty for them at the moment. Hopefully, they will be as transparent as possible so we can have a fair conversation with each other.

Jeroen: You’re on the panel with the CEO of APG and Triodos Bank, a climate activist, and a partner at KPMG, yourself! It’s an interesting mix of people, isn’t it?

Menno: Yes, it is. I’m also looking forward to it, not the least from a climate perspective. I can imagine that for APG and Triodos, it’s difficult to make predictions for the near future, but I know they have the willingness to invest and to deal with the challenges we’re facing currently. They are truly pushing forward, so I’m excited about what’s ahead.

Jeroen: So am I. Menno Kooistra, partner at KPMG. Thank you for taking the time to speak to Leaders in Finance in this pre-event interview ahead of next week’s event on January 30th.

Menno: Thank you, Jeroen.