B4IG Newsletter #9
In this issue:
Just Transition
Financing Forum’s Request for Proposal
Debate on how to assess the quality of a company’s human rights due diligence
and more!
For those who still doubted it, the new report released by the Intergovernmental Panel on Climate Change (IPCC) of the United Nations in August 2021 made it clear: the ecological transition is not likely to be slow and smooth, but rather swift and abrupt, as the rise in global temperature is expected to attain 1,5 degrees Celsius in 7 years, and 2 degrees Celsius in less than 25 years if we remain at pre-COVID emission levels.
Accelerated decarbonization efforts are indispensable and urgent. However, if we want to move fast and alter the path forward, governments and businesses will have to ensure that the social impact of the ecological transition is not overlooked and properly integrated into climate actions. Policies to mitigate climate change will open new opportunities, but also concentrate skill issues and job losses in certain geographies and industries.
Addressing the social impact of climate policies is at the core of Just Transition, a topic that is gaining momentum in view of the COP26. It also irrigates several of B4IG’s workstreams, as we are developing indicators to assess the social impact of the transition, defining a general framework for responsible transformation, considering collective actions to support the reskilling and upskilling of workers, accompanying projects in the Incubator that are at the nexus of environmental and social issues, and exploring funding vehicles to support the ecological transition.
Building on these actions, B4IG has a role to play to promote and nurture the dialogue between companies and governments on carrying out responses related the social challenges of the transition.
The Actions
Financing Forum
In July, the Inclusive Growth Financing Forum (IGFF) launched the Request for Proposal (RFP) with the objectives to identify impactful and transformative programs which are both strategic and ambitious, and whose financing needs will design the contours of the “Inclusive Growth Fund” that we aim to launch next year.
Based on the work of the coalition, the RFP selected 7 priority inclusive growth themes: Elimination of Forced Labor & Child Labor; Responsible Transformation & Future of Work; Inclusive Sourcing; Living Wage; Access to Essential Goods & Services; Just Transition; Youth. Building on the responses from member companies, we will be able to narrow down the scope to the 2 or 3 most advanced themes.
The B4IG team will organise individual sessions with all member companies in the coming weeks to review the RFP process, and explore programs which could be submitted. For more information, please reach out to stephanie.failloux@b4ig.org
Inclusive Sourcing
Public consultation on Inclusive Sourcing methodology will be starting on October 28. WG3 members have been working on an Inclusive Sourcing methodology in the Incubator’s Innovation Studio over the past few months. As we are at the stage of finalising our work, we want to present member companies, partners, practitioners and experts the opportunity to contribute and share feedback. Therefore, the methodology will be open for public consultation from October 28 to November 10 on the B4IG website. We are looking forward to receiving your feedback, which will ensure the cross-sectorial applicability of the methodology. Thank you!
B4IG Workshop
B4IG will organize a workshop on October 5 from 3pm to 5pm CET. The overall objective is to discuss and advance the ongoing projects, in view of the upcoming Annual Board Meeting on December 2.
Sherpas, company experts, OECD participants and other B4IG partners are invited to participate in the different sessions, on:
The B4IG Framework (overview of the draft B4IG Framework and discussion on different threshold levels of action and indicators).
Inclusive Sourcing (overview of the methodology and discussion on key-topics and next steps incl. potential collective projects).
Youth (brainstorming session on a potential collective action and a common framework).
Just Transition (overview of the B4IG Statement to be published at the COP26, coordination in view of the COP26 and discussion on potential collective action).
2022 Incubator Value Proposition (discussion on the 2022 B4IG Incubator programs).
If you have not received the calendar invitation, please register here.
From the OECD
The inaugural Global Deal Social Dialogue Forum will take place from October 11 to 14, bringing together a wide range of policy makers, practitioners, and experts in social dialogue to explore how a strong process of dialogue, consultation and negotiation between or among social partners and governments can help in addressing the longer term issues brought about by the COVID-19 pandemic.
The past few months have demonstrated that social dialogue is an efficient tool to deal with the multiple challenges that have arisen because of the crisis. It has played a key role in maintaining jobs despite a sudden collapse in demand, and in contributing to safer and better protected workplaces against COVID-19.
The Forum will feature high-level panel discussions, as well as sessions led by Global Deal partners on specific topics such as skills development, decent work, social partner agreements, access to social protection, and social dialogue and Artificial Intelligence.
Register now to receive information on how to access the Forum, and explore the event’s website for more information.
From the G7
Following the G7 Summit, held at Cornwall on June 11-13, the UK Presidency established The Impact Taskforce (ITF). Chaired by Nick Hurd, the ITF is an industry-led effort to contribute to a sustainable and inclusive recovery from the COVID-19 crisis and, more broadly, to help drive a sustainable, impact-driven global economy. Emmanuel Faber, co-chair of B4IG, is a member of the Steering Committee, with Camille Putois, CEO of B4IG, as Deputy. The ITF works on (1) impact reporting, transparency, integrity and (2) instruments and policies to scale impact investment. ITF ́s findings will be reported back to G7 Foreign Affairs and Development Ministers under the UK’s G7 Presidency, in December 2021.
Around the Globe
As discussions regarding regulations on human rights due diligence (HRDD) continue in the EU, see an interesting contribution from Shift to the debate on how to assess the quality of a company’s HRDD. While HRDD is often characterized as an “obligation of means” (meaning that it is the quality of the process that matters), in contrast with an “obligation of result” (meaning that it is whether or not you achieve a particular outcome that matters), both positions require critical nuance.
When a firm does good, does the market reward such efforts? According to Aaron Yoon and George Serafeim, stock value did tend to rise after positive ESG news about a firm emerged, but only if the news was financially material, that is, related directly to the company’s sector. See Does Positive ESG News Help a Company’s Stock Price?
Save the Date(s)
Upcoming Working Group meetings (all times CET):
WG3, Inclusive Sourcing to touch base with the Innovation Studio: September 29, 4:00-5:00 pm
WG6, Youth Meeting on Providing training to all: September 29, 5:00-6:00pm
B4IG Workshop on the B4IG Framework, Inclusive Sourcing, Youth, Just Transition, and the 2022 Incubator Value Proposition : October 5, 3:00-5:00pm. If you have not received the calendar invitation, please register here.
B4IG South Africa, Collective Action session: October 6th, 9:00-10:00am
Engagement with Governments (US administration), Coordination Meeting: October 7th, 5:00-6:00pm.
Engagement with Governments (other G7 governments, G7/B7, EU, G20/B20): Coordination Meeting: October 13th, 3:00-4:00pm.
Thanks for reading, and be sure to follow B4IG on Twitter and LinkedIn!
The B4IG Team