Davos and Assisi set the scene for sustainability

Our house is still on fire and time is running out. Not slogans, but warnings that were reiterated numerous times over several days, both by the financial community at the World Economic Forum in Davos and by that of Italian business and politics with the Assisi Manifesto. Both events ended on Friday 24 January. A crucial signal, after the COP25 flop in Madrid in December, when governments refused to make concrete commitments in the fight against climate change, and US President Donald Trump called Greta Thunberg one of the ‘prophets of doom’ at the Swiss meeting. World leaders debated climate issues and discussed how to deal with sustainability, both in economic and social terms, on a global scale. An issue that can’t be delayed further and which concerns everyone, but reaches beyond political factions.

Davos. If Europe, with new President Ursula von der Leyen at the helm, wants to play a leading role, it will need to break through to the financial community. In mid-January American giant BlackRock declared war "on companies that do not make sufficient progress on sustainability reporting", announcing "a significant reallocation of capital" in the coming years, in an open letter from BlackRock’s CEO, Larry Fink. At the World Economic Forum in Davos for the first time ever, the Global Risks Report, which was drawn up after interviews with 750 experts, established that all five major long-term risks, including economic risks, are entirely attributable to serious threats to our climate, as are four out of the five risks in terms of the severity of such effects.

In Switzerland, a manifesto for ethical business in the Fourth Industrial Revolution was presented on the initiative of the WEF’s founder and executive chairman, Klaus Schwab. It was a document divided into three points:

1. The purpose of a company is to create shared and sustained value. It serves not only its shareholders, but all employees, customers, suppliers, local communities and society as a whole. The best way to harmonise divergent interests is through a shared commitment to policies and decisions that strengthen the long-term prosperity of a company;

1a. A company serves its customers by providing a value proposition that best meets their needs. It accept and supports fair competition and has zero tolerance for corruption;

1b. A company treats its people with dignity and respect. It honours diversity and well-being of all and fosters continued employability through ongoing upskilling and reskilling;

1c. A company considers its suppliers as true partners in value creation;

1d. A company serves society, pays its fair share of taxes and acts as a steward of the environmental and material universe for future generations;

1e. Finally, a company provides its shareholders with a return on investment that does not sacrifice the future for the present.

2. A company is more than an economic unit generating wealth. It fulfils human and societal aspirations, with performance also measured on environmental, social and good governance objectives.

3. A company that has a multinational scope of activities not only serves all stakeholders, but acts itself as a stakeholder of our global future. Global citizenship requires a company to harness its core competencies, entrepreneurship, skills and relevant resources to improve the state of the world.

Assisi. Almost simultaneously, the Assisi Manifesto also came out in Italy: promoted by Symbola, the foundation led by Ermete Realacci, it immediately received the support of large companies such as Enel, Ferrovie dello Stato and Terna, involved in the initiative via Chairwoman Catia Bastioli, one of the first signatories. "Sustainability is the fundamental driver for all the activities envisaged in Terna's 2019-2023 Strategic Plan and the sustainability aims are set out with reference to human resources, stakeholders and the territory, integrity, responsibility, transparency and the environment", Terna's External Relations and Sustainability Manager, Luca Torchia said in an explanation of Terna’s involvement.

But a far from isolated case, as the manifesto of the city home to St. Francis recorded more than 2,000 entries from companies and institutions alike in only a few days. The Prime Minister of Italy, Giuseppe Conte and President of the European Parliament, David Sassoli were also present at the manifesto presentation on Friday 24 January.

The signatories are committed to working together towards a circular economy that will turn energy transition into a great opportunity. "A people-focused economy to combat the climate crisis" is the title of the manifesto. Its key points are:

Courage. Tackling climate crisis with courage is not only necessary, but also a great opportunity to make our economy and society more people-friendly and therefore better equipped for the future.

Involvement. The contribution of all economic and production sectors and overall involvement of citizens.

Europe. With sincere and forward-looking policies, net contribution to greenhouse gas emissions can be zero for 2050. This challenge could renew Europe's mission, giving it strength and centrality.

Italy. It’s already a main player in the circular, sustainable economy field: we are, for example, leaders in Europe in terms of percentage of recycling of waste produced.

Economy. The green economy makes our businesses more competitive and creates jobs. It makes social cohesion a productive factor and combines empathy and technology.

Inequalities. Our belief is that there is nothing wrong in Italy that cannot be balanced with what is right in Italy.

The prerequisites are however such as to ensure that principles are followed with coherent operational choices and appropriate political decisions. The impression - in Davos as well as in Assisi - is that both business and finance (with the resounding green bond boom in 2019, the recent BlackRock statement on the risks of non-sustainability and that of Goldman Sachs on gender equality) are ahead of politics at the moment. An inspiration for governments worldwide. The Assisi Manifesto closes like this: "We, in any case and within the limits of our abilities, will work in this direction, leaving no one behind, leaving no one alone. An Italy that makes Italy starts from our best traditions, it’s essential for this challenge and could make an important contribution towards a civilized, kind world".