The Position Paper on Transformative Governance undersigned by 54 Italian companies was presented at the High-Level Political Forum in New York.
July 24, 2024, Milan – On the occasion of the High-Level Political Forum in New York, the UN Global Compact Network Italy (UNGCN Italy) presented its Position Paper on the topic of Transformative Governance. The document, created with the broad support of 54 companies belonging to UNGCN Italy, highlights the innovative strategies implemented by companies to integrate sustainability into their operations.
Italian companies increasingly consider sustainability a priority and recognize its crucial role in terms of competitiveness and guidance towards social, economic and environmental change, in line with the United Nations 2030 Agenda. The Position Paper, titled “Transformative Governance as a Driver of Responsible Conduct for a More Ethical, Prosperous and Sustainable Business,” outlines several key strategies adopted by these companies.
The Position Paper presents 20 case histories that demonstrate the strong transformative potential of sustainable governance. Among the most innovative actions implemented by Italian companies, the creation of internal and external committees to support the Board of Directors in the development of sustainability strategies, in particular in climate actions, should be highlighted; the implementation of training programs aimed at employees, suppliers and future generations, also through collaboration with schools; the involvement of stakeholders with the creation of listening, consultation and activation mechanisms also at the local level; the launch of partnership projects with the Third Sector, aimed at encouraging action to combat climate change, the expansion of the accessibility and quality of primary services for citizens and the nurturing a mindset conducive to sustainable development inside and outside the organizations.
The document was launched yesterday during an event promoted in collaboration with the Permanent Mission of Italy to the United Nations, demonstrating Italy’s commitment to promoting sustainable business practices on the global stage. The Position Paper was presented to the public by Marco Frey and Daniela Bernacchi, respectively President and Executive Director of the UN Global Compact Network Italy.
Marco Frey, President of UNGCN Italy, stated: “Companies are increasingly recognizing sustainability as a central element of competitiveness, integrating it into their governance to guide their business”. Frey also underlined that the UN Global Compact proposes an approach called “Transformative Governance”, according to which sustainability acts as an accelerator, guiding strategic planning and the alignment of business processes, as well as opening up to an approach that foster synergies and collaborations with key players, such as suppliers, the world of finance, consumers and customers, but also institutions and the third sector.
The meeting focused on the impact that the “Transformative Governance” approach can have in combating the climate emergency. Among others, Claudio Barbaro, Undersecretary of State at the Ministry of the Environment and Energy Security, Sanda Ojiambo, Assistant Secretary-General and CEO of the United Nations Global Compact, and Alexandra Bolton, Director of the Climate Governance Initiative, spoke about it.
“The Italian companies belonging to the UN Global Compact network have presented an important Position Document, focused on this theme and on transformative business models, with the aim of enabling a more effective dialogue between them, the institutions and other key stakeholders, in order to rethink the social contract to address the most urgent global challenges more effectively and coherently”, commented the Undersecretary of State at the Ministry of the Environment and Energy Security, Claudio Barbaro, on the presentation of the Paper.
“In the current context in which we are called to find urgent solutions to the climate emergency, Governments and businesses have the responsibility to accelerate the transition towards more sustainable economic models that limit global warming to 1.5°C. Climate change brings with it risks but also opportunities for businesses, in a scenario that sees their stakeholders increasingly demanding of strategic and integrated approaches to sustainability issues from the private sector. The concept of “Transformative Governance”, promoted by the UN Global Compact, integrates sustainability into the corporate governance system, thus generating an impact both on the internal dimension (corporate purpose, Board structure, internal policies) and on the external one (stakeholder involvement, partnerships, collective actions). My applause goes to the Italian Country Network and to the over 50 member companies who took part in the drafting of a Position Paper on this topic, which highlights some valuable business cases, as well as the work of the UN Global Compact Think Lab”, remarked Sanda Ojiambo, Assistant Secretary-General and CEO, UN Global Compact.
“To face the decisive challenge for our generation, every company is called upon to set climate objectives and outline a plan to achieve them. As part of this path, three requirements are fundamental: the right mix of skills and experience at Board level; top management’s awareness that climate commitments are a priority; finally, a mindset that recognizes the business opportunities connected to the sustainable approach”, said Alexandra Bolton, Director of the Climate Governance Initiative.
“Climate change is an urgent challenge for businesses and boards of directors are called to integrate climate governance into corporate strategies through a holistic approach” declared Daniela Bernacchi, Executive Director of UNGCN Italy. “It is essential to involve all internal levels, but also the external dimension. Companies that work with a transformative logic are able to involve traditional stakeholders, such as supply chains, institutions and consumers, and to create new partnerships with the third sector to increase the impact on the territory or strategic alliances with trade associations to share best practices”.
The Position Paper was created by a working group of 54 companies members of the UN Global Compact, listed in alphabetical order: A2A; ACEA; Aeroporti di Roma; Andriani; Automobili Lamborghini; Benetton; CAP Holding; Carbonsink; Cassa Depositi e Prestiti; Edison; Enav; Enel; Eni; Erg; Esselunga; Feralpi Siderurgica; Ferrovie dello Stato Italiane, Ferrari; Fincantieri; FNM Group; Gruppo De Cecco; Gruppo Hera; Gruppo Sofidel; Gruppo Unipol; ICAM Cioccolato; illycaffè; INWIT; Iren; Italmobiliare; Italyum; Legance – Avvocati Associati; Leonardo; Leroy Merlin Italia; Lundbeck Italia; Maire; Marcegaglia Steel; Mindoor (Boyden Italy); Moncler; Nestlé Italy; Pirelli & C; Poste Italiane; Prada; Prometeon Tyre; Prysmian, RCS Mediagroup; RINA; Saipem; Save The Duck; SEA – Società Esercizi Aeroportuali; SNAM; Terna; Tod’s; TPER; Volvo Trucks Italia.
