Great Britain’s[1] and
Ireland’s[2]
parliaments decided to stick to climate change commitment. In May, MPs passed
the largely symbolic motion to declare
a climate emergency. The step followed a series of street protests by
the Extinction Rebellion environmental campaign group. This notable novelty reflects a change in
mind-sets. We stand away from pursuing only our self-interest in terms of
comfort, safety and wellbeing. We have gradually shaped our ability to think
ahead, about the world our children and grandchildren will inherit tomorrow and
the quality of their life. Businesses, including those in Latvia, transformed
their mind-sets to see and do things differently.
What are
the main environmental and sustainability issues included on the agenda of
Latvian society? According to Baltic
International Bank Latvian Barometer[3]
(a monthly survey of public opinions and attitudes in Latvia), the key
priorities include waste sorting (75% respondents), refusal to use plastic bags
(46%), recycling and reuse of package and other materials (43%), and choices to walk or cycle more / to favour collective or public transport
rather than use of personal cars (42%). The survey shows that people
regularly and daily practise those activities. However, the number of the
respondents is well lower because awareness of environmental and sustainability
has grown while practical measures are insufficient overall.
This
statistics is indicative of that people actually need an extra boost or spur.
Employers could undertake such roles and become setters of the good example. It
sounds so reasonable, doesn’t it? Responsible action of a business gives a
fillip to the employees, then to its clients, and thereafter to the families of
the employees and to the people related to the clients. I strongly believe that
businesses can achieve a better scale effect that normally is required to get a
new idea to take root in the society or to catalyse action.
In 2017, we
decided to base our further development on an internationally proven ESG
approach (ESG is an approach that aims to incorporate environmental, social and governance factors). It was immediately
clear that the transition would considerably change Bank’s day-to-day business.
Be it making strategic decisions on Management Board-level or holding talks
with our client on potential involvement of Bank in an investment project, we
now view all of those aspects through the prism of environmental
sustainability, social responsibility and good governance. The three main
pillars on which our organisational business model rests gradually change the
worldview of our employees, clients and partners. For this reason, involvement
of businesses in raising awareness on sustainability issues is so important
because businesses exert impact on the public agenda and pinpoint issues of
concern.
One year
and a half after Bank has embarked on incorporating ESG considerations in its
daily activities, I can say that we have set quite an ambitious goal, far from
being confined to a mere formulation of messages and strategies, as it may seem
to an outside watcher. For organisation, this implies implementation of
specific steps and actions, including
employee training, raising awareness of clients on ESG approach,
defining measurable goals and objectives of environmental protection (CO2
emissions, energy and water consumption, waste management, and others),
promoting and upholding the principles of good governance, and everyday
organisation-level integration of social issues. Further, we analyse those
aspects with respect to our partners and potential clients. To what extent do they adhere to the values
to which we are committed on a daily basis? From this point, we start talking
with our colleagues and peers from other organisations. The new mind-set
already manifests itself explicitly, rather than ‘’I’m not interested in his
viewpoints, they pay, that’s good... “. I intend to cooperate with you,
therefore let me tell you why sustainable attitudes and behaviours are of
paramount importance for me.
The bottom
line therefore is as follows: “Make today decisions that will not make you feel
ashamed tomorrow.” I am not a convinced supporter of drastic initiatives
proposed by some British politicians who weigh up delisting of firms from the
London Stock Exchange if they fail to tackle climate change. However, it is
imperative to raise awareness on sustainable attitudes and behaviours,
including in business environment where people make long-term investment
decisions. In the light of the fact that our ability to assume responsibility
affects the future of ourselves and of our children, I firmly believe that a
“component of responsibility” will become one of the building blocks for
competitiveness among businesses.
Getting prepared timely is worth the effort.