The World Business Council for Sustainable Development (WBCSD), together with its more than 200 global leading member companies, is raising the bar of business commitment to sustainability through the set of new criteria put forward as part of WBCSD’s membership conditions. These criteria were accepted by a strong majority of the leaders of WBCSD member companies during last week’s Annual General Meeting (AGM), based on the unanimous recommendation by the Council’s Executive Committee (ExCo).

2020 marks WBCSD’s 25th year of working on accelerating the transition to a sustainable world, and the acceptance of the new criteria confirms the position of WBCSD as the leading business organization where companies turn their organizational and (cross-)sectoral and collaborative sustainability ambitions into reality.

The set of five new comprehensive criteria are:

1. Set an ambition to reach net zero greenhouse gas (GHG) emissions, no later than 2050 and have a science-informed plan to achieve it.
2. Set ambitious, science-informed, short and mid-term environmental goals that contribute to nature / biodiversity recovery by 2050.
3. Declare support for the UN Guiding Principles on Business and Human Rights by having in place a policy to respect human rights and a human rights due diligence process.
4. Declare support for inclusion, equality, diversity and the elimination of any form of discrimination.
5. Operate at the highest level of transparency by disclosing material sustainability information in line with the Task Force on Climate-related Financial Disclosures (TCFD) and align Enterprise Risk Management (ERM) with environmental, social and governance-related (ESG) risks.

The five criteria focus on the top three priority sustainability challenges that our society faces: climate emergency, nature loss and inequality. Additionally, WBCSD expects its member companies to strive to the highest standards in corporate governance and transparency, aimed at enhancing the comparability of data for investors and other stakeholders.

The adoption of the new membership criteria followed several rounds of consultations over the past year with all members and the unanimous recommendation of the WBCSD ExCo. The set up of the new criteria entails that WBCSD members are asked to prepare their companies over the next 24 months to be able to adhere to the membership criteria as of December 2022. From 2023, adherence will be monitored through the WBCSD ‘Reporting matters’ project, which assesses WBCSD member’s reports on a yearly basis.

Peter Bakker, President and CEO of WBCSD since 2012, reflected: “This marks an important moment for WBCSD. Since the start in 1995, we have been the go-to place for businesses that are serious about sustainability and demonstrate true leadership for sustainable development. Now, in our 25th year, we decided to bring our membership conditions in line with the urgent challenges facing our society by adding five new criteria to our membership conditions. The conditions will let our member companies focus on putting credible science-based action plans into motion to transform our economic systems. The fact that these were accepted by a strong majority of the leaders of our members during the 2020 AGM, shows that we are indeed the place for sustainable leadership and action, but also that our members are pushing for higher standards. Especially during this devastating pandemic, such an outcome underlines that businesses have not lost track of the greater pressing challenges looming ahead and are willing to tackle them urgently and collectively, if we are to create a world in which all 9+ billion people can live well within the boundaries of our planet.”

Bakker added: “In 2021 and going forward, our main focus will be on turning sustainability ambitions into concrete actions, to make the resulted transformations real. Getting the new membership criteria approved was a first major step, now we need to keep the momentum going and step up on the critical work needed for that. The bottom line is that if we don’t radically change in the next decade, there is no point in optimism, because we will run out of time. The work with our members is already ongoing, and coincides with the Vision 2050 refresh – to be published in early 2021 – the purpose of which is to formulate an action agenda for business for 2021-2030 to deliver the change that our planet and people desperately need.”

Sunny Verghese, WBCSD Chair, and Co-Founder and Group CEO of Olam International Ltd., stated: “When WBCSD started exploring the possibilities of updating its membership conditions, it became clear that the majority of the members had already been working towards some of the new criteria. By making them the standard for all member companies, WBCSD is further supporting the leadership position of business and making sustainability an integral part of business strategy and performance with ESG at the core, in line with WBCSD’s philosophy of open membership. A true milestone for WBCSD and its members in its 25th year of existence.”

Verghese added: “WBCSD enhances the business case for sustainability through tools, services, models and experiences. Its scalable, science-based solutions deliver measurable impact while its members engage at the highest level, influencing the agenda and demonstrating leadership. WBCSD members believe that by integrating social and environmental impacts with financial results, businesses will lower their risk profile, make better decisions and lead the solutions that are aligned with the Sustainable Development Goals.”

Also see the recent news about the WBCSD 2021 Executive Committee composition following the 2020 AGM and the latest Reporting matters results, launched last week.

BCSDH’s recommendations for sustainable food and the biodiversity have been published

“To accelerate the change, innovative collaboration is necessary among business, government, science, and education” – highlighted Mark Zwinkels in a speech at BCSDH’s Virtual Business lunch. The focus of the event’s professional program was the sustainability of food and nature. The “For a Sustainable Future” awards were presented at the event this year in an atypical way, as not only were outstanding leaders and corporate solutions recognized, but also sustainability initiatives that have been implemented during the pandemic.

Budapest, October 8, 2020 – Providing adequate food for the world’s growing population is essential. Due to the pandemic, we have experienced what it means to be dependent on food from other countries in times of crisis, and due to closed borders. What can business do? At the Virtual Business lunch of the Business Council for Sustainable Development in Hungary (BCSDH), the three-point recommendation for the business sector was presented that points the way forward regarding the implementation of sustainable food systems that take all the issues of biodiversity into consideration.

Partnership and innovation are key to accelerating sustainability processes – presentation by Mark Zwinkels

“The world’s population is growing, aging, and urbanizing, with climate change occurring much more vigorously and faster than many thought; biodiversity is declining more rapidly than at any time in human history. Immediate action is needed, and change needs to be accelerated” –pointed out Mark Zwinkels, International Director of the World Horti Center in the Netherlands in his presentation.

“Providing the growing population with adequate food is a primary goal, but we must recognize that this cannot be achieved by using more arable land, but by investing in technology and biology that can increase the yield of our farmland in a sustainable way. Due to the pandemic, governments saw what it means to be dependent on food from other countries with closed borders. As a result, many countries are now more willing to invest in sustainable, high-tech greenhouse facilities. Due to this, the level of sustainable crop production may unprecedentedly increase. The World Horti Center is a good example of how innovation will flourish by combining practical research, talented students, and experienced and successful companies” – he added.

BCSDH’s recommendations for sustainable food and the biodiversity

“Food supply chains have been put in a difficult position by coronavirus, drawing attention to the exposure of systems, the problems of global processes, and moreover to the need for increasing the protection of biodiversity. While there are many challenges related to the complexity of transforming food systems, there are also promising, innovative technological developments and consumer trends that indicate the opportunities that are available to accelerate efforts. Will there ever be a better time to change than now?” – highlighted Attila Chikán Jr., President of BCSDH, in a speech before the introduction of the three recommendations formulated by BCSDH together with the leaders of its member companies to help the business sector take the necessary steps to increase the sustainability of food:

Over 80 CEOs, civil and scientific experts took part in the preparation and wording of the recommendation. As a result, solutions have been identified for both the business sector and its stakeholders that can positively impact the sustainability of food.

On the CEO roundtable at the business lunch, Annamária Bartók, Managing Director of Silvertris and Szilas, Ágnes Kovács, Managing Director of Sió-Eckes, Zoltán Gazsi, Managing Director of Eisberg and Péter Noszek, Managing Director of Nestlé, spoke about shorter supply chains and supply chains. on the conservation of biodiversity.

BCSDH’s events are carbon neutral, and sponsored by:

On 30 September, the first meeting of the BCSDH’s newly formed ESG Working group was held, with the participation of more than 40 company leaders. The aim of the working group is to overview and introduce existing sustainability performance indicator systems, provide strategic guidance, create recommendations to company leaders and present related successful corporate practices.

The online event was opened by Mario Abela, Director of Redefining Value at WBCSD, in which he shared his thoughts on creating value in an uncertain world. Ákos Lukács, senior manager of Deloitte Zrt., talked about financing ESG transformation and the EU Taxonomy. The leader of the working group, Gréta Nagy, Managing Director of Dandelion Kft., presented the purpose of the event and the proposed measures.  Regarding financial investments, president of Bamosz, Sándor Vízkeleti and Balázs Bozsik, Advisor to CEO at Budapest Stock Exchange, presented the perspectives of the investor and the issuer side, moreover their own steps taken on the ESG criteria.

On the basis of the event, business leaders considered it important to incorporate the ESG criteria into company decision-making, agreed on the need for the working group and set the objectives together.

The next meeting of the Working group will be held on 17 November.