ESG & Sustainability Newsletter

In this edition

1. News around the world

2. News from the financial services and insurance sector

3. Best Corporate Social Responsibility Practice

4. Events

5. Insights from an Expert

6. Let's get personal - WIACON's short interview

7. Did you know...?

1. News around the world

Russia: Western banks paid €800mn in taxes in 2023 surpassing prewar levels despite promises to minimise presence in country

Western banks in Russia paid 800 million euros in taxes to the Kremlin in 2023, quadrupling pre-war levels, despite promises to reduce their activities after the invasion of Ukraine. The seven largest European banks, including Raiffeisen Bank International and Deutsche Bank, reported combined profits of more than €3 billion, three times higher than in 2021, partly due to restrictions on capital outflows. These banks have benefited from higher interest rates and the sanctions against Russian banks, increasing their attractiveness to local customers and helping the Kremlin maintain financial stability.

How cities are becoming a huge source of raw materials

In Heidelberg, the “Circular City” pilot project is building a new district for 10,000 people on a former US military site using almost completely recycled demolition material from the 1960s, with the aim of achieving a recycling rate of almost 90% and pursuing the concept of urban mining. This innovative project, which is attracting attention across Europe, aims to promote a circular economy by recycling building materials, thereby significantly reducing both resource consumption and CO2 emissions.

Almost every second supposedly sustainable fund is not

Across Europe, over EUR 525 billion is invested in ESG funds, which, despite their sustainable labeling, often invest in climate-damaging coal, oil or gas industries, with around 40 percent of funds considered clean making such investments.

IFRS, EFRAG Publish Guide for Companies Complying with Both ISSB and CSRD Sustainability Reporting Standards

The IFRS Foundation and the European Financial Reporting Advisory Group (EFRAG) have published guidance on the interoperability of the ISSB and ESRS sustainability reporting standards to help companies comply with both sets of guidelines. The objective of this guidance is to reduce complexity and increase consistency and efficiency in sustainability reporting by clarifying the similarities between these standards and providing practical guidance.

Consumers are willing to pay an average of 9.7 % more for sustainable goods

Despite rising inflation and pressure on the cost of living, consumers are willing to pay a premium for sustainability, according to PwC's Voice of the Consumer Survey 2024. The survey provides important insights into consumer behaviour in the face of economic challenges and climate concerns.

More than half of CEOs say sustainability is now a higher priority than it was 12 months ago - EY survey

According to the survey, 54% of CEOs said that sustainability is a higher priority for them and their boards than it was 12 months ago, while 23% said that sustainability has become less of a priority in their organizations, mainly due to difficult economic or financial circumstances.

EU approves 2-year delay in sustainability reporting standards for certain sectors and non-EU companies

The EU Council's announcement marks the latest step in adopting the postponement of the sector-specific and third country-specific obligation to the European Sustainability Reporting Standards (ESRS) after the European Parliament approved the directive earlier this month.

2. News from the financial services and insurance sector

A win for the future

FOCUS-MONEY reports on the ESG Innovation Award 2024, which honors outstanding initiatives in the financial industry.

Politicians promise to ease the burden of ESG regulations on the property industry

The "B?rsen-Zeitung" reports on statements by the Green Party regarding a reduction in the burden on the real estate industry with regard to the GAR reports to be provided by banks from September 30. This could lead to a shift in financing towards large-scale projects.

Wake-up call for banks on green bonds

"Die Presse" reports on how cooperation between banks is influenced by ESG rankings and how potential deals are put at risk by poor ESG ratings of the desired partners.

Bond issuers are alarmed: they are demanding more green commitment from banks, otherwise they risk losing money. More and more customers are also expecting progress in the key figures.

3. Best Corporate Social Responsibility Practice

INTERIM MANAGER QUALITY & SUSTAINABILITY

DEI Key Strategies and Best Practices

Alex von Keitz, can you share some key strategies or best practices that organizations can apply to enhance their DEI readiness?

Alex Von Keitz : "Key strategies and best practices include:

• Leadership Engagement - Leaders must actively advocate for diversity, equity, and inclusion (DEI) and promote these values throughout the organization. The key here is creating a "Safe Space".
• Training and Awareness - Raising awareness of DEI issues and reducing biases.
• Diverse Recruitment and Hiring - Organizations should actively work to diversify their recruitment and hiring practices to create a diverse talent pool.
• Promoting Diversity and Inclusion in Organizational Culture – Building and ensuring structures that foster diversity and inclusion."

Alex von Keitz is our cooperation expert for DEI?

With over four decades of personal experience in the field of inclusion and 25 years in management positions in large companies in the aerospace and automotive industries, I bring a unique combination of expertise and a global perspective.

At the core of my professional philosophy are values such as respect, trust and creativity, complemented by self-discipline, lean thinking and sustainability. My coaching style emphasizes an equitable and inclusive approach, with the objective of guiding, motivating and training teams.

Overcoming personal challenges, such as dealing with a paralyzed hand, has deepened my understanding of diversity, equity and inclusion and motivated me to share these insights as a coach and trainer.

As a coach, to embed foundations for a diverse, equitable and inclusive culture in the DNA of the organization. To create an environment where every voice is heard, valued and respected. As a trainer, to impart knowledge that promotes understanding and provides practical tools.

Insights from our interview with Alex

How would you summarize the importance of diversity, equity and inclusion in the workplace?

Diversity, equity and inclusion in the workplace means equal opportunities for all regardless of background or identity. It's about unlocking potential and recognizing different perspectives. This creates a dynamic, innovative and productive environment full of respect and collaboration.

What role does a DEI Readiness Assessment play in today's business world, especially in terms of creating a positive work environment?

A DEI Readiness Assessment is critical to a positive work environment. It allows organizations to assess their readiness in diversity, equity and inclusion and take targeted actions to improve the organizational culture. This increases employee satisfaction, engagement and team performance, which contributes to the long-term success of the organization.

What challenges do you often see when implementing DEI programs in organizations and how can they be addressed?

One of the biggest challenges in implementing DEI programs is the much-needed cultural change within the organization. Biases, power imbalances and lack of awareness of diversity, equity and inclusion need to be actively addressed. It requires not only new policies, but also ongoing commitment at all levels to create a supportive DEI culture. Employee resistance requires open communication and training to foster understanding and acceptance.

I recommend three approaches:

1. To achieve profound cultural change, organizations must consciously address biases and unequal power structures. A climate of openness and respect that actively promotes diversity, equity and inclusion can be created through training, workshops and cultural events to raise awareness and support change.
2. Leaders are critical to promoting diversity, equity and inclusion. By actively living DEI values and demonstrating them in their decisions, they can overcome reservations and create a supportive environment for DEI initiatives.
3. Open communication and training are crucial to address people's resistance and reservations. By providing a space for dialogue and training, organizations will promote understanding of DEI issues and reduce prejudice. ?

How can organizations ensure that their DEI efforts are authentic and not just perceived as a superficial PR exercise?

Organizations can ensure that their DEI efforts are authentic by

• Setting clear and measurable objectives,
• Providing transparency about their progress,
• Actively involving employees,
• promoting an inclusive culture and
• continuously evolve.

It is important that DEI is not seen as an isolated initiative, but as an integral part of the organizational culture that is lived from top management to employees at all levels.

4. Events

WIACON will be part of the Akademie3 conference in Vienna, which will take place from 16.09. to 17.09.2024.

Alicia Buss, ESG Compliance Consultant at WIACON, will give an expert lecture on "Successful integration of ESRS into corporate culture".

Alicia Buss: "The quality of a sustainability report depends on the extent to which a company has integrated environmental protection, social responsibility and exemplary corporate governance into its culture. These values should be an integral part of all corporate activities. In my presentation, I will explain how companies can create a basis for their sustainability report and economic success by consistently applying the ESRS. In particular, the focus will be on the comprehensive responsibility of the company, which requires an awareness of new sustainability standards. Careful planning, effective implementation and regular monitoring of compliance with environmental and sustainability regulations create a basis for sustainable business. I will show how companies can establish appropriate structures, including policies, processes, training and awareness-raising measures. An effective monitoring mechanism with regular audits and assessments of environmental, social and governance activities is essential.

Through increased collaboration and a corporate culture that is committed to environmental, social and governance issues, satisfactory reporting results can be achieved and corporate sustainability can be improved in innovative ways."

Further information on this exciting event can be found here:

5. Insights from an expert - Sanctions

Schedule a free meeting with Nasim Zargarinejad

An Introduction to sanctions and human rights violations

Sanctions and human rights often intersect in two distinct situations. In the first situation, countries or international organizations may impose sanctions targeting individuals or entities responsible for violating fundamental human rights. In this sense, sanctions are reactions or even solutions to the problem of human rights violations.? An example of such a sanction is the EU global human rights sanction regime established on December 7, 2020. Under this regime, listed individuals and entities would be subject to an asset freeze in the EU, a ban on traveling to the EU, and EU persons would be prohibited from making funds available to the listed persons, directly or indirectly. Based on this regime, the EU has targeted individuals believed to be responsible for the arbitrary detention and forced labor of Uyghurs in Xinjiang, China, and for torture, extrajudicial killings, and other human rights abuses in South Sudan and Eritrea. Perhaps another good example is the recent agreement between the European Parliament and Council on imposing new rules to ban products made with forced labor from the EU market.

However, these responsive measures to address human rights violations can themselves create or deteriorate the problem. This is because sanctions can lead to the violation of the human rights of those who live under heavy sanctions, including their rights to life, health, and development. Shortages of raw materials can result in unemployment, while scarcities of seeds and fertilizers can lead to food shortages. Asset freezes of delisted persons can violate the fundamental human rights of those people, such as their right to property and their right to be heard. This is the second situation where sanctions and human rights overlap. That is why voices have been raised that sanctions are a double-edged sword.

To solve this problem, those who impose sanctions and those who try not to violate these sanctions must be aware of the consequences of their actions. Their imposition must be carefully weighed to avoid inadvertently exacerbating problems for affected people. Likewise, accurate execution of sanctions is imperative to mitigate these unintended consequences.

Some solutions have been found thus far. At the level of imposing sanctions, states and organizations should consider explicitly carving out exceptions for humanitarian aid. For example, the EU sanction regime on Russia prohibits providing technical assistance to Russian persons and entities but carves out exemptions for pharmaceutical purposes. At the level of observing sanctions businesses operators must conduct thorough due diligence to ensure compliance with sanctions applicable to their business. However, compliance does not mean taking a zero-risk approach. Complete disengagement due to fear of repercussions can exacerbate the negative impact of sanctions on human rights. For example, an agricultural company should not categorically refuse trade with a sanctioned country without carefully checking for exemptions related to essential food supplies. Interestingly, UN Special Rapporteur on unilateral coercive measures has recently drafted a Guiding Principles on Sanctions, Compliance (Over-Compliance) and Human Rights that can assist businesses in the future. These guidelines can help companies navigate conducting business ethically and avoid unintended severe consequences like the ones discussed above.

6. Let’s get personal - WIACON's short interview

Schedule a free meeting with Sophie Winde

To gain an insight into how sustainability and the climate crisis affect WIACONers in their everyday lives, we asked the following question:

At which point did sustainability, ESG or even the climate crisis?or the absence of sustainability, ESG) play a role for you (privately or professionally) this month?

Sophie Winde: "For me, sustainability means future viability. So I ask myself what kind of world I want to live in in the future. The decisions we make today have an impact on the world of tomorrow. On the environment, our fellow human beings, the economy. If we want to continue to live in freedom, it makes sense to behave today in such a way that our freedom is not reduced by the circumstances of tomorrow, but at best increased. My observation is that if we keep an eye on the consequences of our actions, we make more responsible decisions.

As an entrepreneur, I therefore ask myself how I can combine my economic objectives with ecological and social objectives? For me, sustainability does not have to mean sacrificing economic success, but rather doing business successfully in the long term while taking ecological and social goals into account. Today, more than ever before, companies are required to act responsibly - towards society, their own employees and the environment.

As parents at the latest, we also feel this responsibility in our private lives. That's why we teach our children about sustainable living in a playful and practical way. We spend a lot of time in the garden and in nature, where we teach them about the importance of ecosystems and where they can observe plants and animals. When growing our own vegetables and also when shopping, we explain why it is good to give preference to local and seasonal products. Together, we separate our waste and find ways to save energy in everyday life.

And at no time does this feel like giving up anything, but rather makes us want to look to the future."

7. Did you know..?

Do it yourself: sustainability in everyday life

Sustainable consumption means consciously considering the impact of our purchasing decisions on the environment and society. It's about choosing products and services that have been produced in an environmentally friendly way and are socially acceptable. Here are some ways you can integrate sustainability into your everyday life:

1. Buy local products: By buying locally produced goods, you can reduce your carbon footprint as there are fewer emissions from transport. You also support local producers and promote the regional economy.
2. Seasonal fruit and vegetables are sustainable as they require less energy for transport and storage and help to reduce the environmental impact of agriculture. Here you can find seasonal fruit and vegetables for May: Geo: Fruit and vegetables in May
3. Choose products made from recycled materials: By buying products made from recycled materials, you are helping to reduce the consumption of raw materials and avoid waste. Recycling is an important step towards a more sustainable future.
4. Favour durable products: Invest in durable products that can be repaired and have a longer lifespan. This will help you avoid excessive consumption and contribute to conserving resources and reducing waste.

Saving energy in everyday life:

Energy consumption in households and businesses contributes significantly to environmental pollution. Germany's 41 million private households consume 29% of the country's energy, totalling around 670 terawatt hours for heat and electricity. Industry, commerce, trade and services consume around 1000 terawatt hours.

However, you can reduce your energy consumption and make a contribution to climate protection by taking simple measures:

1. Save energy when cooking: Put lids on pots and switch off the cooker early to utilise residual heat.
2. Save energy in the bathroom: Use energy-efficient lighting, water-saving taps and make sure you use hot water consciously. Regular maintenance of appliances also helps to reduce energy consumption.

You can find more tips on saving energy here: BMWK: More efficiency and savings in the home

Stay tuned for more tips on sustainable behaviour! Together, we can make a positive contribution to environmental protection and shape a more sustainable future.