Sustainable finance flows

There is a strong need for an alignment of financial sources – public, private, national and multilateral – to get the EU to where it needs to be. In recent years, the financial sector and policymakers have therefore stepped up their efforts to help improve the finance flows towards the transition to a sustainable economy. Notably, during COP26, over 160 financial institutions with more than USD 70 trillion in assets joined forces through the ‘Glasgow Financial Alliance for Net Zero’ (GFANZ) to steer the global economy towards net zero emissions and deliver on the Paris Agreement goals by committing to set science-aligned interim and long-term goals to reach net zero no later than 2050. [2] This is an encouraging effort, showing these financial institutions’ commitment to take their much-needed role in facilitating the sustainability transition.

At the level of policymaking, in July this year the European Commission adopted an ambitious package of measures to help improve sustainable finance flows. [3] The measures aim to enable a reorientation of investments towards more sustainable technologies and businesses and should thereby help the EU reach its climate and environmental targets. Among these measures, the EU Taxonomy is an important one, as it provides for a science-based common definition of what economic activities can be considered sustainable. Next to that, disclosures of sustainability data will provide information to make informed sustainable investment decisions. Lastly, the development of investment tools including sustainability benchmarks, standards and labels should make it easier for financial institutions to align their investment strategies with the EU’s climate and environmental goals.

ESG risks

Whereas most of these measures are centred on the investment opportunities arising from the transition, the financial sector should also pay attention to the risks associated with such transition or lack thereof. Financial institutions can be affected by both physical and transition-related sustainability risks (often referred to as ESG – environmental, social and governance – risks) either directly or through their business activities. Physical risks – such as climate- and weather-related events, destruction of the environment and loss of ecosystem services – will become more prevalent and extreme in nature if the transition is slow to progress. The transition in itself, however, can also give rise to risks as policy implementation, technological developments and changing consumer preferences can lead to certain economic activities becoming uncompetitive or being phased out. ESG risks thereby have the potential to materialize into financial risks at many levels and over multiple, including long-term, time horizons. An adequate and effective management of such risks therefore increasingly becomes a prerequisite for financial institutions to remain resilient to the defining global challenges of our time.

Financial institutions should thus consider how to align their financing with the Paris Agreement and Sustainable Development Goals, while avoiding a build-up of ESG risks. When doing so, it will be able to unlock its potential to effectively finance the Decade of Action.

The Hague, 1 December 2021 — As part of the 2022 UN Global Compact SDG Pioneers programme, Global Compact Network Netherlands today launched its national search for professionals who are committed to advancing the UN Sustainable Development Goals (SDGs). On the first of March 2022, our Network will recognize an employee of a participating company as the Global Compact Network Netherlands SDG Pioneer. The selected Local Pioneer will then have the opportunity to participate in the final search of Global SDG Pioneers to be recognized during the 2022 UN Global Compact Leaders Summit.

In 2022, the UN Global Compact will recognize a new class of Global SDG Pioneers who are setting ambitious SDG targets, scale and impact across their companies through a principles-based approach.

Global Compact Network Netherlands welcomes the leadership of companies participating in the UN Global Compact to nominate their employees to the programme and later on join them during the recognition.

Employees of companies participating in the UN Global Compact are welcome to submit their own application on contributions towards sustainable development or nominate a colleague inviting them to submit an application for consideration in the programme before 31 January 2022.

About the SDG Pioneers Programme

Each year the UN Global Compact recognizes a class of SDG Pioneers — business leaders working at any level of a company, who are using business as a force for good to advance the 17 Sustainable Development Goals (SDGs). The SDG Pioneers play an important role to drum up interest in the Global Goals and in how the UN Global Compact is empowering businesses to advance them. In 2022, the UN Global Compact will again recognize professionals working at any level in a participating company of the UN Global Compact who are setting ambitious SDG targets, scale and impact across their companies through a principles-based approach.

About Global Compact Network Netherlands

Global Compact Network The Netherlands strives to mobilize a local movement of sustainable companies and stakeholders with the aim of improving the lives of future generations.

Guided by the Ten Principles and the 17 SDGs we support companies and stakeholders in understanding what responsible business means within a global and local context and provide guidance to translate sustainability commitments into action.

Contact

Global Compact Network Netherlands

Marco Swan

Program Manager

Tel: +31 6 51146829

Email: swan@unglobalcompact.nl

The United Nations is marking the 16 Days of Activism against Gender-based Violence from 25 November to 10 December 2021, under the global theme set by the UN Secretary- General’s UNiTE campaign: “Orange the World: End Violence against Women Now!”

Nearly 1 in 3 women have been abused in their lifetime. In times of crises, the numbers rise, as seen during the COVID-19 pandemic and recent humanitarian crises, conflicts and climate disasters. A new report from UN Women, based on data from 13 countries since the pandemic, shows that 2 in 3 women reported that they or a woman they know experienced some form of violence and are more likely to face food insecurity. Only 1 in 10 women said that victims would go to the police for help.

While pervasive, gender-based violence is not inevitable. It can and must be prevented. Stopping this violence starts with believing survivors, adopting comprehensive and inclusive approaches that tackle the root causes, transform harmful social norms, and empower women and girls. With survivor-centred essential services across policing, justice, health, and social sectors, and sufficient financing for the women’s rights agenda, we can end gender-based violence.

The Generation Equality Forum that concluded in Paris in July set the momentum for decisive actions and investment to advance gender equality. The UN Trust Fund to End Violence against Women, the only global grant-making mechanism dedicated to ending and preventing all forms of violence against women, has announced a special fundraising challenge, #Give25forUNTF25, marking 25 years of grant-making to support women’s organizations around the world.

Take action

You can take action during the 16 Days of Activism. Here are some ideas:

• Download the social media package and use the hashtags #orangetheworld #16days here
• Get the Orange the World logo and branding guidelines
• Sign the ‘medestander’ pledge here

Read more about the campaign »

Accelerating Gender Equality Efforts at Global Compact Network Netherlands

Extending our efforts in advancing gender equality business’ performance, the Global Compact Network Netherlands organized an online event that brought together gender equality stakeholders from the Netherlands represented by SER, Aon, PwC and Rabobank, and the United Nations represented by UN Global Compact and UN Women to explore the business case, the challenges, and the opportunities for making gender equality strategies successful in the private sector.

During the event the speakers addressed the business case for diversity and inclusion in the workplace, and why is the role of the private sector important in achieving the global goal SDG5 on gender equality. On occasion of this engaging event, Heineken N.V., one of our TGE (Target Gender Equality) Programme participants has officially committed to the UN WEPs, will publicly announce their commitment to gender equality globally on the occasion of “Orange the World: End Violence against Women Now!”,

and lighting some of their buildings globally. Heineken N.V joins as a signatory company of the UN WEPs together with other TGE companies participating in the Global Compact Network Netherlands TGE Programme together with the growing list of companies signing the WEPs globally.

Watch the recording of the event below

About the Women’s Empowerment Principles (WEPs)

The WEPs are a set of Principles offering guidance to business on how to promote gender equality and women’s empowerment in the workplace, marketplace and community. Established by UN Global Compact and UN Women, the WEPs are informed by international labour and human rights standards and grounded in the recognition that businesses have a stake in, and a responsibility for, gender equality and women’s empowerment.

Read more about the WEP’s »

About the Target Gender Equality Programme

Target Gender Equality is a gender equality accelerator programme for participating companies of the UN Global Compact. Through facilitated performance analysis, capacity building workshops, peer-to-peer learning and multi-stakeholder dialogue at the country-level, Target Gender Equality will support companies engaged with the UN Global Compact in setting and reaching ambitious corporate targets for women’s representation and leadership, starting with the Board and Executive Management levels.

Companies participating in Target Gender Equality have the opportunity to deepen implementation of the Women’s Empowerment Principles and strengthen their contribution to Sustainable Development Goal 5.5, which calls for equal women representation, participation and leadership in business globally. Companies will be equipped with the latest data and research supporting the business case for gender equality and gain insights from UN partners and experts on how to accelerate progress on gender equality.

Read more about the Target Gender Equality programme »