WEBVTT X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:0 00:04.949 --> 00:05.949 Ok. 00:28.020 --> 00:33.639 In this episode, we will explore critical emerging sustainability concerns for boards 00:33.650 --> 00:39.479 over the next 1 to 2 years and how they can address, prepare and lead the way. 00:45.869 --> 00:51.209 Well, first of all, join a chapter um if you're not already a member of one of the, 00:51.220 --> 00:54.209 the regional chapters uh of the climate governance initiative, 00:54.220 --> 00:56.500 that is my my first recommendation. 00:57.119 --> 01:03.310 And secondly, um you know, uh stay curious about this issue. 01:03.319 --> 01:07.059 It's a fast moving one. It's something that we all need to be humble 01:07.069 --> 01:09.709 about. Uh And I think coming into the board 01:09.720 --> 01:16.489 cultivating a an open open minded um sort of culture in the 01:16.500 --> 01:21.050 boardroom. Um I think it is incredibly important uh as we 01:21.059 --> 01:25.980 think about this transition as, as just that as managing change really. 01:25.989 --> 01:29.919 Uh And so keeping a very open mind, I think is, is, is critical. 01:30.919 --> 01:37.760 And then I think it's also about um again, moving from thinking about this as a 01:37.769 --> 01:43.430 transactional question to one which could potentially have a systemic impact. 01:43.690 --> 01:48.940 So it's really thinking um bigger than just your own organization. 01:48.949 --> 01:55.279 But also what impact can our decisions have on some of the key stakeholders on our value 01:55.290 --> 02:01.419 chains. If I look to the future, I expect a continued 02:01.430 --> 02:08.389 attention for mitigation and the right, hopefully harmonized reporting of that. 02:08.630 --> 02:13.320 That's one. Secondly, I expect much more attention than 02:13.330 --> 02:19.479 today on adaptation because we are not at the Paris Treaty uh trajectory, 02:19.759 --> 02:25.539 we will not be totally below 1.5 degrees. So we will have to deal with climate change. 02:25.550 --> 02:30.419 Also, I don't throw the towel in the ring. I think we need to continue with mitigation, 02:30.529 --> 02:34.529 but in parallel working on adaptation as well. 02:35.330 --> 02:40.000 The third topic is climate finance, uh all those things need to be financed. 02:40.009 --> 02:46.149 And therefore, as I mentioned before, uh carbon pricing, both the compliance market and the 02:46.179 --> 02:52.429 voluntary carbon market could be a very uh good tool uh to 02:52.440 --> 02:58.330 finance uh the transitions because we need to think not only about the transition itself but 02:58.339 --> 03:04.009 also how to finance it and this triggers a further stronger private public uh 03:04.020 --> 03:07.919 collaboration. Yeah. And the last thing I want to, 03:07.929 --> 03:13.520 to, to mention, which I think will become high on the agenda is nature itself is 03:13.529 --> 03:20.279 biodiversity, is integrity, but also the just transition, 03:20.350 --> 03:26.759 I think um maybe 33 topics. Number one, I think they should very much make 03:26.770 --> 03:30.589 sure that they have a proper reporting in their company in place. 03:30.940 --> 03:37.750 So I think what we have now is as the biggest change you don't look into ESG 03:37.759 --> 03:44.479 relevant data once a year, it is becoming more of a continued quarterly reporting and it 03:44.490 --> 03:50.759 should be ultimately baked into your, er, p systems to just have the data availability 03:51.119 --> 03:55.399 just throughout the year and not only as said, two months after your balance sheet date. 03:56.020 --> 04:01.190 So that's a, that's a very, um, yeah, classical administrative housekeeping, 04:01.199 --> 04:05.869 but it's important because many Corporates don't have that yet for natural reasons. 04:06.550 --> 04:11.850 Number two, I think you need to really understand how does it all affect my business 04:11.860 --> 04:16.369 model and where, where are maybe especially on the customer side, 04:16.380 --> 04:21.839 whether you have corporate customers or institutional customers or maybe private 04:21.850 --> 04:26.859 customers. What and how do the the needs of customers 04:26.869 --> 04:30.019 change? What do they need in, in the next years? 04:30.209 --> 04:36.820 Maybe they need solutions for their own carbon dioxide emission reduction or maybe they have 04:36.829 --> 04:42.489 um some research and development going on which brings them into different activities. 04:42.769 --> 04:46.170 Maybe they, they need different things from our company. 04:46.179 --> 04:50.309 So I think that's a super important topic because ultimately that will drive your, 04:50.459 --> 04:54.010 your sales possibilities and your revenues dramatically. 04:54.429 --> 04:59.929 And then obviously, um also you need to understand what about your people? 05:00.149 --> 05:04.769 Um You have talent, hopefully in your cooper operation, what does change there? 05:04.779 --> 05:08.970 Do you need different talent with different capabilities, different expertise, 05:08.980 --> 05:12.149 same as you need it in the board, you probably need it also in your, 05:12.510 --> 05:17.209 in the group of your employees. And last, but definitely not least what, 05:17.220 --> 05:21.089 what changes in the life of your employees, your talent two words, 05:21.100 --> 05:27.690 catch up, catch up with the rest of the world and do it quickly and 05:27.700 --> 05:33.489 efficiently, uh waste no time whatsoever. So it is 05:35.269 --> 05:41.600 astounding to me that companies headquartered in the United States that 05:41.609 --> 05:47.649 nevertheless have products and uh physical uh 05:47.709 --> 05:54.160 facilities around the world are not looking to Europe and other 05:54.170 --> 06:01.130 places and saying, well, my goodness sakes, why are we not doing the same exact thing 06:01.140 --> 06:02.269 in the United States? 06:02.559 --> 06:08.619 Well, in terms of what's coming next, I do think there would be a lot more focus on nature, 06:08.630 --> 06:14.549 a lot more focus on biodiversity. Um And we need a lot of education on that 06:14.559 --> 06:17.869 because that is again sort of very much emerging. 06:18.049 --> 06:22.535 And um you know, I think getting up to speed and in terms of, 06:22.545 --> 06:25.475 you know, what should we be focusing on there, I think is important, 06:25.665 --> 06:30.144 you know, at the, at the more nitty gritty level, like what we already talked about in 06:30.154 --> 06:36.434 terms of regulation, like that's gonna be, that's going to be a lot of work and a lot of 06:36.445 --> 06:39.035 focus in the next little while. Um you know, 06:39.045 --> 06:44.135 we've got a couple of years, but as I said, we need systems processes, 06:44.144 --> 06:50.989 technology to make sure that we're producing timely but accurate information 06:51.000 --> 06:54.350 and there's there's work to be done on that. 06:54.660 --> 07:00.910 So like when you're making investments, you know, we have capital allocation frameworks for, 07:00.920 --> 07:07.130 for many organizations and building in sort of the the cost of, 07:07.140 --> 07:13.529 of, you know, decarbonization emissions, et cetera should be very clearly part of that 07:13.540 --> 07:16.760 capital allocation decisions. But even then, 07:16.820 --> 07:20.750 you know, we need to make investments that meet our hurdles. 07:20.760 --> 07:25.940 You know, like that's why, that's why we have uh the stewardship roles that we do. 07:26.040 --> 07:29.299 We have to meet the, the expectations of our investors. 07:29.309 --> 07:32.739 And one of the main ways of doing that is to, to make, 07:32.880 --> 07:37.790 you know, good investments that provide the right returns while thinking about, 07:37.799 --> 07:43.799 you know, the costs of um uh basically um reducing our 07:44.170 --> 07:50.309 impact on the, on the, on the earth. I think that doing really good transition 07:50.320 --> 07:56.839 planning that caters for resilience and net zero um and 07:56.850 --> 08:03.440 embraces nature and water and, you know, a just approach that we've got a great opportunity 08:03.450 --> 08:09.820 here because we're, we're in, we're looking at those different um interdependent 08:09.829 --> 08:14.100 aspects of environment and community and society. 08:14.459 --> 08:19.880 Um And we're looking at it just at the point where companies are really just beginning to 08:19.890 --> 08:22.170 start to get to grips with their transition plans. 08:22.179 --> 08:26.000 So actually a, a really important part of this is being able to share, 08:26.010 --> 08:30.920 share, good practice, learn, we produce in our network and, 08:30.929 --> 08:36.520 you know, it's all published on our website, both the Chapter 01 and the CG I one. 08:36.809 --> 08:40.549 Um lots of briefings for, for boards which are not, you know, 08:40.559 --> 08:45.130 the whole report, but they're the bits that are important that the board directors need to have, 08:45.590 --> 08:50.989 we've got these tool kits which um, which cover a lot of the things that, 08:51.309 --> 08:58.159 um, I've been discussing um today, a lot of the aspects of how committees should 08:58.169 --> 09:03.500 work, how, how you do your planning, how you assess where your board is on the journey. 09:03.750 --> 09:07.669 Um And then that leads to, well, if we're not in that, 09:07.679 --> 09:12.460 in a very good place on that particular aspect, then there are all these briefings and, 09:12.469 --> 09:18.380 and extra information we can, we can uh look at to help us.