25.09.2024

Antonio Hautle: It is imperative that we start seeing ESG not as a burden but as an opportunity

The Executive Director of the UN Global Compact in Switzerland and Liechtenstein, Antonio Hautle, was a special guest at the first awards ceremony of ESGnews.bg "ESG AWARDS".

"It is a pleasure and a privilege to be in Bulgaria for the first time," said Hautle, who presented the award in "Sustainable Investor" category.

Antonio Hautle is the Executive Director of the UN Global Compact in Switzerland and Liechtenstein, one of the leading Networks in Europe, covering over 350 companies from over 30 industries. He is known for his long experience in the field of corporate social responsibility and sustainable development. It works hard to promote socially responsible business practices. His career is marked by numerous initiatives aimed at creating a more just and sustainable future, and he actively participates in international forums and conferences related to these topics.

ESG – the beginning

At the beginning of his presentation, Antonio Hautle talked about another beginning - that of ESG.

"The term ESG emerged during the global financial crisis of 2007 and 2008. Then the investment bank Lehman Brothers totally turned its back on all the rules that existed in the banking system and with a series of corrupt practices and criminal actions threw the world economy into a catastrophic abyss. Then we all had to pay billions of dollars because one company allowed itself to break literally every single rule. Then regulators, especially in the US, began to apply pressure and increase regulations. This is how environmental, social and governance (ESG) requirements emerged, which were now also aimed at financial institutions,” Hautle explained.

Antonio Hautle
Photo: Borislav Danchov

The power of transformation

The special guest of "ESG AWARDS" shared how important success has been achieved over the years with positive transformations in the business sphere:

"As a student, my thesis was on the responsibilities of a manager. One digression - back then the management world was all about men, women just weren't present in it. It's very, very changed now, and it's a positive transformation. In my thesis, the main focus was on ethics in business. Many of my colleagues were literally horrified. According to them, business and ethics had nothing to do. Well, that has changed too, and it's another positive transformation.”

The idea of ​​triple sustainability

Antonio Hautle
Photo: Borislav Danchov

Antonio Hautle emphasized the idea of ​​triple sustainability in business.

"At the core of ESG is the idea of ​​triple sustainability as an integral part of their products and services. This idea was born at the end of the 80s of the last century. In short, every company is expected to comply with the three dimensions of sustainability. The first dimension is economic. A company must be successful in order to pay taxes, wages, etc. However, it is equally important to respect human rights within the company's operations. This means ensuring good working conditions for the employees, as well as that they receive the necessary respect.

Here it is absolutely imperative that companies are aware that these policies should not stop at the boundaries of the company itself, but should also be enforced throughout the supply chains. Things should be done so that at the end of each working day, the owners of the companies can go to bed with a clear conscience and be proud of what they have done. There is a working recipe for this to happen – business must follow the Ten Principles of the UN Global Compact, the OECD guidelines and finally the Sustainable Development Goals. And not only to follow them, but also to shape their supply chains through these principles and guidelines.

Yes, it is true that regulations are becoming more and more demanding. This is especially felt by small and medium-sized enterprises. They consider the additional costs of ESG prohibitive. But is it really so? If environmental or social value is added to a product or service, don't they become more expensive and more valuable? It is very important that we start to see ESG not as a burden but as an opportunity,” Hautle said.

How important is the 'G' component in ESG?

Usually the weight in ESG falls on the first two components – environment and social responsibility. But according to Antonio Hautle, in fact, the last "G" aspect - the management one - carries a lot of weight:

"Imagine a good environmental solution or a good social solution. And then imagine a governance environment where there is corruption accompanied by dysfunctional or weak institutions. This is a difficult topic - not only for Bulgaria, but also for the whole of Europe. That's why we have to work together - business with universities, with public organizations, with politicians and organizations, so that we can fight back until the environment is cleaned up."

We need a planet, not the other way around

Houtle continued his point by insisting that businesses now need to think beyond ESG.

“We should not stop at just the three dimensions of ESG. We need to think much bigger. Let's see what we - as companies, as communities, as individuals - can do together to create a local, European and global economy in which our great-grandchildren will still be able to live with human dignity. This planet doesn't need us! However, we need it. Because if we destroy it, our children will have nowhere to live. We cannot continue in the same way as we have been doing since the end of the 18th century. Since then, humanity has not stopped polluting the planet and using its natural resources. We have to change. And let me say again – this challenge is actually a great opportunity," Hautle concluded.

"ESG AWARDS" – an impartial competition with a serious methodology

Darinka Georgieva
Photo: Borislav Danchov

Honored to introduce Antonio Hautle to the guests at the awards ceremony "ESG AWARDS" fell to Darinka Georgieva, executive director of the Bulgarian Network of the UN Global Compact and member of the jury of "ESG AWARDS".

She also shared her opinion about the first competition of ESGnews.bg, of which the Bulgarian Network of the UN Global Compact was a strategic partner.

"I am extremely pleased that the ceremony is attended by many companies that have applied for the awards, as well as others who are working in this positive direction. The Bulgarian Network of the UN Global Compact agreed to be a partner of "ESG AWARDS" because the competition is impartial and relies on a serious methodology that can distinguish the truly best. The purpose of such contests is to find motivation so that we can then show our best and work together", said the executive director of the Bulgarian Network of the UN Global Compact.