In this episode of Scouting for Growth, Sabine VdL interviews Gwen Yu, an expert in sustainable finance with an understanding of transfer pricing, who helps international ventures to understand the best way to move internationally. Sabine talks to Gwen about how she made her way into sustainable finance, and how her past business and personal experiences have shaped her decision to support a better future and a better planet. During the course of the discussion, Gwen shares her vision, mission, and goals with regards to shaping a more sustainable future.   KEY TAKEAWAYS There is so much variety in everything that I’ve done in my career. It’s only looking back now that I see how all the different pieces fit together. If you take sustainability as a broader scope you’re looking at ESG in general, and transfer pricing is relevant when it comes to trying to figure out governance and how everything fits holistically within the puzzle. Everything from understanding your supply chain to trying to figure out where the demand goes.  Early in my career a manager came to me and said: “The younger you, is most of the options you will have and it’s going to be really hard to make a decision to shut certain doors offered to you. But you shouldn’t look at it that way, you should look at it as that’s the path you’re going to go down towards eventually. And maybe you’ll circle back around. But early on, you must define what’s important to you as a person. It doesn’t matter what that is, but you need to be able to look at yourself in the mirror and recognize the person you are.” That has fuelled my path. I want to have a positive impact in whatever I’m doing and I want to leave wherever I’ve touched enhanced and better than before. To get a loan from a bank you would go through a credit committee which traditionally would check if the person is risky, has defaulted before, where are they positioned, and do they have a sound business plan. To incorporate sustainability into what financial institutions are doing now, they’re looking at the sustainability rankings in terms of ESG (Environmental Social and Governance) of whoever it is they’re providing a loan to. Typically, it’s mostly for big corporations because that’s where the data is available. Do they have proper supply chain governance, are they doing something harmful/ or positive for the bio-diversity imprint, and how are they funding new projects? These are now becoming more standard practices and will be rolled out so that when you go into the credit committee to get a loan, how sustainable you are will play a role in the type of interest rate that you get. If you’re not sustainable you are likely to become a riskier client. Technology is going to be a critical part of the equation in driving change within sustainable finance. From the decision-making process, the inputs that are required in terms of data analysis will need to be pushed out, and quality controls will need to happen to make sure it’s actually sustainable. I don’t think the big guys are going to be able to do it alone. The innovation will start out with small pockets and groups that have great ideas. This will be pushed through to ensure that tech is doing well and serving a diversified community rather than a one-dimensional one.   BEST MOMENTS ‘I think transfer pricing gets a bad rap because one of the most important parts is trying to figure out the actual market price you should be paying for services as opposed to the negative connotation where you’re doing tax evasion.’