At the High-Level Political Forum in New York, the UN Global Compact Network Italy (UNGCN Italy) unveiled its Position Paper on Transformational Governance. This document, developed in collaboration with 54 leading Italian companies, highlights innovative strategies for embedding sustainability into business operations.
Italian companies are increasingly prioritizing sustainability, recognizing its crucial role in maintaining competitiveness and driving social, economic, and environmental change in line with the United Nations 2030 Agenda. The Position Paper, titled "Transformational Governance: A Responsible Conduct Driver for a More Ethical, Prosperous, and Sustainable Business," outlines several key strategies adopted by these companies:
- Formation of Committees: Establishing internal and external committees to assist the Board of Directors in crafting and implementing sustainability strategies, particularly in the realm of climate action.
- Comprehensive Training Programs: Educating employees, suppliers, and future generations through collaborations with educational institutions.
- Stakeholder Engagement: Developing strategies for engaging and consulting with key local stakeholders.
- Partnerships with the Third Sector: Launching projects in collaboration with non-profit organizations to tackle climate change, ensure access to essential and quality services for everyone, and build a culture of sustainable development inside and outside organizations.
The Position Paper showcases twenty case studies demonstrating these practices, illustrating the transformative potential of sustainable governance.
The document was presented by Marco Frey and Daniela Bernacchi - Chairman and Executive Director of UN Global Compact Network Italy, during a side-event co-organized with the Permanent Mission of Italy to the UN, underscoring Italy's commitment to advancing sustainable business practices on a global stage.
Marco Frey, President of UNGCN Italy, commented, "Businesses are increasingly recognizing sustainability as a crucial element of competitiveness, integrating it into their governance to guide their business operations." Frey emphasized that the UN Global Compact advocates for a "Transformational Governance" approach, where sustainability serves as an internal accelerator, by guiding the strategic planning and the alignment of business processes, as well as opening a synergistic and collaborative approach with key players, such as suppliers, the world of finance, consumers and customers, but also Institutions and the Third Sector.
The event focused on the impact that the "Transformational Governance" approach can have to tackle climate change. 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 on the issue.
“The Italian member companies of the Global Compact network presented an important position paper focused on this issue and on transformative business models, with the aim of enabling a more effective dialogue between enterprises, institutions and other key stakeholders in order to rethink the social contract to more effectively and consistently address the most pressing global challenges.” declared, in the occasion of the launch, Undersecretary of State at the Ministry of the Environment and Energy Security, Claudio Barbaro.
“The urgent need to address the climate crisis requires governments and businesses to accelerate the transition to a sustainable economic model that limits global warming to 1.5°C. Climate change creates risks and opportunities for businesses, prompting stakeholders to demand integrated, strategic approaches. The UN Global Compact's concept of transformational governance integrates sustainability into governance structures, impacting both internal (business purpose, Board shaping, policies) and external (stakeholder engagement, partnerships, Collective Action) dimensions. I commend the Italian Network and over 50 Italian UNGC participants for launching a Position Paper showcasing the business case for transformational governance and the work of the UNGC Think Lab.” said Sanda Ojiambo, Assistant Secretary-General and CEO, UN Global Compact.
“To meet the defining challenge of our generation, we need every company to adopt a climate target, and to have a plan to meet it. That will require three things: the right mix of skills and experience on “the board, a board structure that gives climate the right priority, and a mindset that sees the enormous business opportunity that will come from getting it right”, declared Alexandra Bolton, Director of the Climate Governance Initiative.
“Climate change is an urgent challenge for companies, and Boards of Directors are called to integrate climate governance into corporate strategies through a holistic approach, said Daniela Bernacchi, Executive Director of UNGCN Italy. It is crucial to involve not only all the internal business levels, but also the external dimension. Companies that adopt a transformational approach are able to involve traditional stakeholders, such as supply chains, institutions and consumers, and to create new partnerships with the Third Sector, in order to increase their impact on the territory or strategic alliances with business associations to share best practices".
The Position Paper was developed in collaboration with a working group made up of 54 UNGC business participants, listed below 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.
The document is available here.
