1 00:00:05,680 --> 00:00:08,000 Speaker 1: Welcome to the Fear and Greed Business Interview. I'm Sean 2 00:00:08,039 --> 00:00:11,240 Speaker 1: almum Met zero and our progress towards it might have 3 00:00:11,360 --> 00:00:14,680 Speaker 1: left the front pages, but for many businesses it's still 4 00:00:14,720 --> 00:00:17,200 Speaker 1: having an enormous impact on the way they operate and 5 00:00:17,239 --> 00:00:19,759 Speaker 1: the way they plan for the future. So are we 6 00:00:19,840 --> 00:00:22,840 Speaker 1: in line to achieve our targets? What about the broader 7 00:00:22,840 --> 00:00:26,320 Speaker 1: push towards the UN Sustainable Development goals, things like affordable 8 00:00:26,320 --> 00:00:29,480 Speaker 1: and clean energy and reduced inequality, which are supposed to 9 00:00:29,520 --> 00:00:33,360 Speaker 1: be achieved by twenty thirty. The UN Global Compact Network 10 00:00:33,400 --> 00:00:36,760 Speaker 1: Australia is the Australian chapter of a global initiative that 11 00:00:36,920 --> 00:00:41,879 Speaker 1: encourages businesses to adopt sustainable and socially responsible policies. We 12 00:00:41,960 --> 00:00:44,479 Speaker 1: wanted to check in today and see what progress we're making, 13 00:00:44,840 --> 00:00:48,640 Speaker 1: what achieving these goals will mean for Australian businesses and 14 00:00:48,680 --> 00:00:51,920 Speaker 1: the economy. Kate Dundas is the executive director of the 15 00:00:52,000 --> 00:00:56,360 Speaker 1: UN Global Compact Network Australia. Kate, Welcome to Fear and Greed. 16 00:00:56,920 --> 00:00:59,760 Speaker 2: Hello Shaan, it's wonderful to be here. Thank you for having. 17 00:00:59,560 --> 00:01:05,520 Speaker 1: We just explain the role of your organization and you've 18 00:01:05,520 --> 00:01:08,200 Speaker 1: got the UN part in the title. So how you 19 00:01:08,240 --> 00:01:09,440 Speaker 1: are connected to the UN? 20 00:01:10,400 --> 00:01:13,480 Speaker 2: Yes, we are the way in which the United Nations 21 00:01:13,640 --> 00:01:17,080 Speaker 2: talks to the private sector. So of the world's largest 22 00:01:17,120 --> 00:01:21,960 Speaker 2: corporate sustainability initiative, there is around one hundred and seventy 23 00:01:22,000 --> 00:01:26,240 Speaker 2: countries involved in the UN Global Compact Network, and I 24 00:01:26,360 --> 00:01:30,360 Speaker 2: lead to the Australian chapter of the network, So the 25 00:01:30,440 --> 00:01:32,880 Speaker 2: UN Global Compact Network Australia. It's a little bit of 26 00:01:32,920 --> 00:01:35,840 Speaker 2: a mouthful, but we call ourselves the UN GCNA. 27 00:01:36,800 --> 00:01:40,039 Speaker 1: Okay. And what are you trying to achieve? Is it communication? 28 00:01:40,440 --> 00:01:43,919 Speaker 1: That communication flow between business and the UN. 29 00:01:44,680 --> 00:01:47,720 Speaker 2: That's one thing. But our reason for being is to 30 00:01:47,840 --> 00:01:54,240 Speaker 2: align businesses, operations and strategies with the UN Global Compact 31 00:01:54,360 --> 00:01:59,320 Speaker 2: ten principles and they cover environment and climate change, anti 32 00:01:59,320 --> 00:02:03,160 Speaker 2: bribery and care eruption, labor and business and human rights. 33 00:02:03,880 --> 00:02:07,040 Speaker 2: And they all mark to the Sustainable Development Goals. So 34 00:02:07,080 --> 00:02:10,960 Speaker 2: when businesses say up to the Global Compact, they agree 35 00:02:11,240 --> 00:02:14,280 Speaker 2: to shape their businesses to achieve sustainable development. 36 00:02:15,160 --> 00:02:19,400 Speaker 1: Okay. So the Sustainable Development Goals are a big undertaking, 37 00:02:19,440 --> 00:02:21,040 Speaker 1: there's no doubt about it. So let's break it down 38 00:02:21,080 --> 00:02:23,680 Speaker 1: a bit and let's talk climate first, because we often do. 39 00:02:23,960 --> 00:02:27,520 Speaker 1: We're building up to a federal election climate change. Is 40 00:02:27,560 --> 00:02:30,639 Speaker 1: it going to be a policy battleground like it has 41 00:02:30,720 --> 00:02:34,800 Speaker 1: been in previous years? And where are we at now 42 00:02:34,880 --> 00:02:39,200 Speaker 1: with progress towards our targets and are ultimately net zero? 43 00:02:40,560 --> 00:02:42,240 Speaker 2: Will it be a battle ground? Well? I mean if 44 00:02:42,240 --> 00:02:44,600 Speaker 2: we look to the past, it's always been a battle 45 00:02:44,600 --> 00:02:49,080 Speaker 2: ground in Australia and the emerging discussions on nuclear seem 46 00:02:49,120 --> 00:02:51,880 Speaker 2: to suggest that it will continue to be a battle 47 00:02:51,880 --> 00:02:54,520 Speaker 2: ground as we had into the next election. What we 48 00:02:54,600 --> 00:02:57,000 Speaker 2: really want businesses to do is focus on the long 49 00:02:57,120 --> 00:03:01,880 Speaker 2: term and focus on the opportunities that with embedding the 50 00:03:02,000 --> 00:03:05,840 Speaker 2: STGs into business strategy and operations. And look, if you 51 00:03:05,919 --> 00:03:09,600 Speaker 2: look globally, there's so much opportunity for Australia to lead 52 00:03:09,639 --> 00:03:12,640 Speaker 2: the discussion when it comes to clean energy and reaching 53 00:03:12,680 --> 00:03:17,239 Speaker 2: that zero. If we don't get distracted by the political meandering, 54 00:03:17,680 --> 00:03:19,440 Speaker 2: we just need to keep our eye on the game. 55 00:03:20,440 --> 00:03:23,720 Speaker 1: Okay, So where are we net progress towards in it zero? 56 00:03:24,720 --> 00:03:28,200 Speaker 2: We're making some progress. If we look at the STGs overall, 57 00:03:28,240 --> 00:03:32,000 Speaker 2: we're making turbo progress. There's only about fifteen percent of 58 00:03:32,080 --> 00:03:35,920 Speaker 2: the sustainable development goals on track for twenty thirty and 59 00:03:36,240 --> 00:03:39,440 Speaker 2: Australia when we look at climate isn't doing very well 60 00:03:39,440 --> 00:03:42,720 Speaker 2: at all. They reliance on fossil fuels, and the fossil 61 00:03:42,720 --> 00:03:45,840 Speaker 2: fuel expert sector in Australia has made us one of 62 00:03:45,840 --> 00:03:50,920 Speaker 2: the wealthiest countries globally, and there's huge opportunities to align 63 00:03:50,920 --> 00:03:54,280 Speaker 2: with global best practice when it comes to transforming our 64 00:03:54,400 --> 00:03:58,480 Speaker 2: energy system and really thinking about how we protect biodiversity, 65 00:03:58,680 --> 00:04:02,280 Speaker 2: natural habitats, highness, the power of the wind waves and sun. 66 00:04:02,320 --> 00:04:05,760 Speaker 2: And we're seeing huge progress towards that in Australia, but 67 00:04:05,880 --> 00:04:11,040 Speaker 2: overall globally, tracking against the STGs is not looking good. 68 00:04:12,840 --> 00:04:16,640 Speaker 1: Okay. So in terms of I'm just trying to think 69 00:04:16,680 --> 00:04:19,599 Speaker 1: about the debate in Australia, we talk about gas needing 70 00:04:19,640 --> 00:04:24,120 Speaker 1: gas as a transition fuel. No one's arguing the need 71 00:04:24,160 --> 00:04:27,040 Speaker 1: for coal and the shelf life of coal stations is 72 00:04:27,080 --> 00:04:28,960 Speaker 1: at an end in any case, and no one's going 73 00:04:29,000 --> 00:04:31,000 Speaker 1: to put much more money into it, even though they 74 00:04:31,000 --> 00:04:34,960 Speaker 1: will delay their closure. I suppose in some cases, how 75 00:04:34,960 --> 00:04:39,279 Speaker 1: does gas fit into these sustainable development goals, particularly around 76 00:04:39,279 --> 00:04:40,560 Speaker 1: climate change? Is it? 77 00:04:40,600 --> 00:04:40,840 Speaker 2: Is it? 78 00:04:41,000 --> 00:04:45,919 Speaker 1: Okay, that's a silly question. 79 00:04:47,279 --> 00:04:49,440 Speaker 2: Gas is not mentioned when you talk about the sustainable 80 00:04:49,480 --> 00:04:52,840 Speaker 2: development goals. Gas is a fossil fuel. Obviously, we're trying 81 00:04:52,880 --> 00:04:58,680 Speaker 2: to transition away from fossil fuels. There's many discussions around 82 00:04:58,720 --> 00:05:01,160 Speaker 2: how much gas we need for the transition, but what 83 00:05:01,200 --> 00:05:03,599 Speaker 2: we really want to do is focus on the long term. 84 00:05:03,640 --> 00:05:05,840 Speaker 2: We need to transition away from gas as quickly as 85 00:05:05,839 --> 00:05:08,720 Speaker 2: we can. We need to produce our reliance on fossil 86 00:05:08,720 --> 00:05:12,000 Speaker 2: fuels as quickly as we can, and that's where the 87 00:05:12,040 --> 00:05:14,400 Speaker 2: opportunity lies for Australian businesses. 88 00:05:15,000 --> 00:05:22,440 Speaker 1: Stay with me, Kate, we'll be back in a minute. 89 00:05:23,920 --> 00:05:26,359 Speaker 1: My guest this morning is Kate Dundas from the UN 90 00:05:26,440 --> 00:05:33,160 Speaker 1: Global Compact Network Australia. Okay, so let's move away from carbon. 91 00:05:33,600 --> 00:05:37,640 Speaker 1: What about some of the other sustainability development goals anti 92 00:05:37,680 --> 00:05:41,760 Speaker 1: slavery for example, bio. I'm not even sure what the 93 00:05:41,760 --> 00:05:43,479 Speaker 1: words are, Kate, you know what I mean. Some of 94 00:05:43,480 --> 00:05:45,600 Speaker 1: the other key ones that we should be following. 95 00:05:46,480 --> 00:05:52,240 Speaker 2: Yes, So when we focus on anti grabian corruption and 96 00:05:53,000 --> 00:05:57,440 Speaker 2: environment and climate change, and business and human rights and labor. 97 00:05:58,120 --> 00:06:01,240 Speaker 2: So we're making progress when it comes to business human rights. 98 00:06:01,400 --> 00:06:04,680 Speaker 2: We've had a legislation over the past couple of years 99 00:06:04,680 --> 00:06:09,240 Speaker 2: focusing on modern slavery, so businesses now are reporting against 100 00:06:09,360 --> 00:06:14,080 Speaker 2: modern slavery, which is a very useful measure of making 101 00:06:14,080 --> 00:06:17,440 Speaker 2: sure we've got transparency in businesses, supply chains, and making 102 00:06:17,480 --> 00:06:20,559 Speaker 2: sure businesses are making the right decisions when it comes 103 00:06:20,600 --> 00:06:25,880 Speaker 2: to their workers and the services that they're procuring for 104 00:06:25,960 --> 00:06:29,080 Speaker 2: their goods and services. So we're certainly making some great 105 00:06:29,080 --> 00:06:33,400 Speaker 2: progress when it comes to modern slavery. ESG pressure is 106 00:06:33,440 --> 00:06:38,559 Speaker 2: coming really from every direction and consideration of ESG risk. 107 00:06:38,920 --> 00:06:43,839 Speaker 2: Do you know what ESG stands for? Environmental social Yes, 108 00:06:44,160 --> 00:06:47,280 Speaker 2: So businesses are you know, balancing these three elements when 109 00:06:47,320 --> 00:06:51,359 Speaker 2: it comes to decisions as investors decide which companies to 110 00:06:51,440 --> 00:06:53,960 Speaker 2: invest in, and they really want their companies to do 111 00:06:54,080 --> 00:06:57,719 Speaker 2: well on issues like climate, human rights, and nature protection. 112 00:06:58,360 --> 00:07:00,640 Speaker 2: And the other thing that we're seeing coming up is 113 00:07:00,920 --> 00:07:05,000 Speaker 2: really a new generation of socially conscious employees who were 114 00:07:05,000 --> 00:07:08,599 Speaker 2: looking for values aligned businesses. And when we talk to 115 00:07:09,000 --> 00:07:12,080 Speaker 2: our young professionals that are just entering the market, they're 116 00:07:12,080 --> 00:07:15,680 Speaker 2: really choosing which businesses to work for based on their 117 00:07:16,200 --> 00:07:21,120 Speaker 2: ethical considerations and what they're doing when it comes to ESG, climate, 118 00:07:21,280 --> 00:07:25,680 Speaker 2: non slavery, ethics, and good governance. And some research that 119 00:07:25,680 --> 00:07:28,800 Speaker 2: we've recently done is that businesses that actually invest in 120 00:07:28,960 --> 00:07:33,040 Speaker 2: positive change tend to perform better. So the League of 121 00:07:33,040 --> 00:07:37,680 Speaker 2: Scholars undertook a research project that revealed that our members, 122 00:07:37,760 --> 00:07:41,320 Speaker 2: you and GC and I participant companies experience a five 123 00:07:41,360 --> 00:07:46,000 Speaker 2: percent annual premium in returns compared to non members. And 124 00:07:46,440 --> 00:07:50,880 Speaker 2: I think that probably reflects that when you embed good governance, 125 00:07:51,360 --> 00:07:55,520 Speaker 2: good social and environmental practices within your business, you actually 126 00:07:55,560 --> 00:07:59,320 Speaker 2: have a much more resilient business all going, so that 127 00:08:00,080 --> 00:08:02,200 Speaker 2: as reflected in shareholder returns. 128 00:08:02,640 --> 00:08:05,480 Speaker 1: Okay, you mentioned labor. Is that in terms of the 129 00:08:05,520 --> 00:08:08,720 Speaker 1: employees what employees want? But how does labor fit into it? 130 00:08:08,760 --> 00:08:11,240 Speaker 1: That was one of the terms you used into the 131 00:08:11,320 --> 00:08:12,880 Speaker 1: four K priority areas. 132 00:08:13,800 --> 00:08:16,840 Speaker 2: Yeah, so it's in terms of labor rights. We align 133 00:08:16,880 --> 00:08:20,960 Speaker 2: with the International Labor Organization and in Australia that plays 134 00:08:20,960 --> 00:08:24,040 Speaker 2: out through unions, so the rights for the ability for 135 00:08:24,240 --> 00:08:27,360 Speaker 2: workers to join a union and to have labor rights. 136 00:08:28,200 --> 00:08:31,640 Speaker 1: Okay, broadly, are we heading in the right direction? Well, 137 00:08:31,640 --> 00:08:33,400 Speaker 1: I'm hoping you'll say yes to that. But are we 138 00:08:33,440 --> 00:08:34,520 Speaker 1: heading quickly enough? 139 00:08:35,360 --> 00:08:36,720 Speaker 2: We're not heading quickly enough. 140 00:08:36,840 --> 00:08:36,880 Speaker 1: No. 141 00:08:37,480 --> 00:08:41,240 Speaker 2: I getting back to the sustainable Development goals, which we 142 00:08:41,400 --> 00:08:45,920 Speaker 2: like to refer to as the Universal Call to end poverty, 143 00:08:46,000 --> 00:08:48,880 Speaker 2: protect the planet, and ensure that by twenty thirty all 144 00:08:48,960 --> 00:08:52,640 Speaker 2: people enjoy pieces prosperity. You know, big lofty goals. We're 145 00:08:52,640 --> 00:08:57,040 Speaker 2: not making quick progress on them. Was achieved fifteen percent 146 00:08:57,280 --> 00:09:00,800 Speaker 2: progress and we're supposed to have achieved the SDG's twenty thirty. 147 00:09:01,080 --> 00:09:03,480 Speaker 2: Is highly unlikely that we're going to take them by 148 00:09:03,760 --> 00:09:07,320 Speaker 2: twenty thirty. So we really need transformational change over the 149 00:09:07,360 --> 00:09:09,720 Speaker 2: next What are we in now, twenty twenty four, We've 150 00:09:09,760 --> 00:09:12,160 Speaker 2: got six years to you know, pull our stocks up 151 00:09:12,160 --> 00:09:12,800 Speaker 2: and get on with it. 152 00:09:13,679 --> 00:09:17,720 Speaker 1: What is transformational change? What's it take to get that? 153 00:09:17,840 --> 00:09:23,080 Speaker 2: There's a wonderful question when we think about businesses depends 154 00:09:23,080 --> 00:09:28,439 Speaker 2: on the business. So transformational change would look like zero emissions, 155 00:09:29,040 --> 00:09:34,800 Speaker 2: zero waste, so full circularity, protection and rehabilitation of biodiversity, 156 00:09:35,520 --> 00:09:39,400 Speaker 2: business and human rights, so respecting human rights and making 157 00:09:39,440 --> 00:09:41,880 Speaker 2: sure that if there has been harm that there is 158 00:09:41,880 --> 00:09:46,360 Speaker 2: no more harm anymore, and ending fossil fuels. 159 00:09:47,000 --> 00:09:51,000 Speaker 1: And that takes government, presumably along with business. 160 00:09:51,160 --> 00:09:56,200 Speaker 2: It takes everybody. It takes government, It takes businesses. It 161 00:09:56,280 --> 00:09:59,760 Speaker 2: takes us in our own particular habits and behaviors. As 162 00:09:59,800 --> 00:10:02,800 Speaker 2: can see, where's you know we've got we spend money 163 00:10:02,800 --> 00:10:06,000 Speaker 2: every day, It really relies on our own personal choices 164 00:10:06,040 --> 00:10:10,040 Speaker 2: as well, but government are there to set the legislation 165 00:10:10,120 --> 00:10:13,160 Speaker 2: and lead, and the legislation sets the baseline that then 166 00:10:13,280 --> 00:10:16,960 Speaker 2: businesses operate within the framework, and then businesses have the 167 00:10:17,000 --> 00:10:20,479 Speaker 2: opportunity to go above and beyond and think more transformationally. 168 00:10:20,559 --> 00:10:22,760 Speaker 2: You know, what does the future look like? Do we 169 00:10:22,800 --> 00:10:25,679 Speaker 2: really will the business still exist in ten years if 170 00:10:25,679 --> 00:10:28,720 Speaker 2: they continue to do business as usual. One of the 171 00:10:28,720 --> 00:10:33,200 Speaker 2: biggest opportunities for business is to think differently and to 172 00:10:33,559 --> 00:10:36,400 Speaker 2: not think about business as usual but to think about 173 00:10:36,440 --> 00:10:39,080 Speaker 2: transformational change, an opportunity that comes with that. 174 00:10:40,080 --> 00:10:41,720 Speaker 1: Kate, thank you for talking to Fear and Grade. 175 00:10:42,120 --> 00:10:42,880 Speaker 2: Thank you so much. 176 00:10:43,480 --> 00:10:46,760 Speaker 1: There's Kate done This, Executive director of Viewing Global Compact 177 00:10:46,880 --> 00:10:49,840 Speaker 1: Network Australia. This is the Fear and Great daily Interview. 178 00:10:49,920 --> 00:10:51,960 Speaker 1: Join us every morning for the full episode of Fear 179 00:10:52,000 --> 00:10:54,319 Speaker 1: and Grad, a daily business news for people who make 180 00:10:54,320 --> 00:11:01,120 Speaker 1: their own decisions. I'm Sean ielma Enjoy your day.