After a false start of what has been coined the Decade of Action by the UN Secretary-General,[1] and while coming to terms with the fact that we must learn to live with COVID-19, it is clear that the only way forward for humanity is to start living within environmental and social boundaries. With nationalist and populist forces destabilizing (geo)politics around the world, society is looking at the business community to show leadership.[2] There are hopeful signs that we are on the brink of an acceleration towards sustainable business reaching a critical mass in the global economy .

Judicialization of Sustainability

From a risk-perspective the judicialization of sustainability has become prominent, with new legislation being introduced in national parliaments as well as the EU, and a barrage of environmental and social court cases brought by citizens towards companies are to be expected. From 2023 onwards, the EU Corporate Sustainability Reporting Directive (CSRD) will require many corporations to report against ESG metrics, and be audited.[3] This will help stakeholders to evaluate and encourage companies to become more sustainable. Recent court cases have asserted that companies have a responsibility to protect human rights deep into their supply chains, and even if governments are not doing enough themselves. We can expect copycat legal action against companies and financial institutions with the usage of this argument for both environmental and social responsibilities in countries around the world.[4]

Purpose-oriented Young Talent

More than ever, there’s a big shift in career direction. Young generations are more purpose-driven when it comes to their career choices and this has a direct impact on attracting and retaining talent. We already see that oil and gas firms are facing a workforce shortage. According to a recent survey more than half of the workers in that sector seeks to move into the renewable energy industry, and in recruitment the applications per vacancies remain low[5]. At the same time this means that companies which embrace sustainability at their core are able to attract the best and brightest without having to pay top dollar. Generation Z is the first generation to prioritize purpose over salary.[6]

Sustainable Finance Flows

Global ESG assets are on track to exceed $53 trillion by 2025, representing more than a third of the $140,5 trillion in projected total assets under management.[7] According to the Climate Bonds Initiative (CBI) 2021 will be a record-breaking year with reaching the half trillion mark in annual green bond investment.[8] The EU’s taxonomy and Sustainable Finance Disclosure Regulation (SFDR), together with other taxonomies around the world will aim to prevent greenwashing in sustainable finance. From 2022, investors that offer funds in Europe described as “environmentally sustainable” will need to explain how, and to what extent, they have used the taxonomy in determining the sustainability of the underlying investments[9]. This way large investors will push private sector companies more to address climate change, diversity and other important societal challenges.

Sustainability is not only a moral imperative, but it’s good business. Companies that act fast will have the biggest competitive advantages. Those that don’t act, or too slow, may no longer exist in the next decade.

Resources

[1] https://www.un.org/sustainabledevelopment/decade-of-action/

[2] https://www.edelman.com/trust/2021-trust-barometer

[3]https://ec.europa.eu/info/business-economy-euro/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en

[4] https://www.ft.com/content/53dbf079-9d84-4088-926d-1325d7a2d0ef

[5] https://hiring.oilandgasjobsearch.com/energy-outlook-report-2021-22

[6] https://www.cpajournal.com/2021/10/22/using-sustainability-initiatives-to-engage-young-professionals/

[7] https://www.bloomberg.com/professional/blog/esg-assets-may-hit-53-trillion-by-2025-a-third-of-global-aum/

[8] https://www.climatebonds.net/2021/08/climate-bonds-updates-2021-green-forecast-half-trillion-latest-h1-figures-signal-new-surge

[9] https://www.unpri.org/policy/eu-sustainable-finance-taxonomy

Each year, the Netherlands Institute for Human Rights recognizes someone on the Internationale Human Rights Day. A pioneer who commits in an innovative way to human rights.

This year, the Netherlands Institute for Human Rights shines a light on pioneers that are active in the battles against racism. The winner is someone who has made a positive impact in the battles against racism. As a part of the awards, the Netherlands Insititute for Human Rights offers the winner a network and platform to fight racism together.

The prize is awarded on 10 December 2021. This year, the awards went to Mpanzu Bamenga. Get to know Mpanzu and his work.

Mpanzu, please introduce yourself

“My name is Mpanzu Bamenga, a protagonist of fundamental values and human rights. I work as coordinator and teammanager of the ‘Regiegroep Ongedocumenteerden Amsterdam.’ We work together with Governmental partners, municipal and social partners with a sustainable perspective (return to the country of origin, onward migration or residence in the Netherlands) for undocumented migrants. We do this by directing, supervising, organizing cooperation, conducting research and monitoring the progress and results of policy implementation. In the period where we work to get a sustainable perspective for undocumented care, participation and counseling. Furthermore, I am Councilor in Eindhoven, Coordinator and Co-founder of Inclusion Leaders Network (Incleaders), and am Board Member at the SDG Young Leaders Network. “

About six months ago, you sued the State together with colleagues to make ethnic profiling illegal. What is the current status of this case and what are the next steps?

“In April 2018, I was detained at Eindhoven Airport. In June 2021, I filled a complaint. In November 2018 was the hearing. In January 2019 my complaint was declared well-founded. In February 2020 the Court case started against the State. In June 2021 was the hearing. In September 2021 was the judgment. This month we will appeal this month. I expect the hearing within 9 months and hope to have a judgment before the end of 2022. Last November, the Marechaussee indicated that they want to stop with ethnic profiling. This is a good step forward. I applaud it and hope that other implementing organizations will follow. However, this will not end ethnic profiling. The judge still legitimizes it, the military police indicate that they like it, even if they want to stop, that they have the space to be able to do it, and there is still no general ban. All of these are reasons enough to continue the fight against ethnic profiling. At the end of November I appealed to Members of Parliament to put an end to ethnic profiling during the round table discussion on ethnic profiling and in 2022 we want to appeal to the Court of Appeal in The Hague to impose a general ban and in this way put an end to ethnic profiling by the Chamber.”

What does an inclusive Netherlands look like for you?

“The Netherlands that makes full use of the diversity of society and potential of all citizens. The Netherlands where everyone can be themselves, participate and decide. The Netherlands where everyone is treated fairly and equally, regardless of color, sex, sexual orientation, and religion. Everyone deserves a fair chance to build a bright future.“