Can a purpose and regulations go hand in hand?

Sitting down with clients

The bank’s impact isn’t limited to sustainable choices involving its own operations – our bankers and advisers also sit down with clients in their thousands to help make their businesses or homes more sustainable and ensure that their money is invested sustainably. Here particularly the bank’s influence and impact are considerable. There are so many opportunities to help our clients as they make the transition, especially now that they’re facing so much new legislation.

Much-needed rules

Government authorities and other agencies are increasingly setting out how the energy and sustainability transition should work. EU legislation presents major challenges. Examples include reporting requirements (CSRD) and imminent due diligence obligations (CSDDD) involving transparent production chains, human rights and impact on the environment. And that’s important, since we need these rules if we intend to meet our sustainable and social aims, create a level playing field and tackle greenwashing.

Focusing on the minimum

But a danger lurks: the more time and energy businesses devote to complying with legislation and regulations, the more they may end up focusing solely on meeting minimum requirements. I, too, have noticed this pitfall all too often. If we just focus on doing the minimum, can we really take full advantage of all the opportunities out there to meet the enormous sustainability challenges facing us? How do we stay focused on the main objective, rules and regulations aside?

Tunnel vision: missing out on opportunities

Before you know it, you’re ticking off a checklist of only the most important priorities. That’s when there’s a danger that your focus is no longer on how great an impact there is to be made with a sustainable business strategy. Tunnel vision can cause us – and our clients – to miss out on opportunities for innovation and sustainability. I’m convinced that a purpose can help keep us focused on our target, no matter how far away it may seem. As far as I’m concerned, every business could use a purpose, a compass that connects people and companies, gets them moving and keeps them on their toes.

All about people

The next ten years will be crucial: the choices we make now will set the course for, and have a major impact on, the future. Speed is of the essence, since we can’t afford to miss our targets, and the urgency of the transition is great.

The longer I serve as the CSO, the more I realise that it’s all about people. Ultimately, it’s people who choose to have solar panels installed on their roofs, deploy a fleet of green vehicles or treat their employees fairly. Essentially, it’s a person-to-person connection that we’re making. And while a clear purpose gives meaning and strict regulations provide clarity, it’s people who ultimately make all the difference. Especially if they’re fighting for something bigger than themselves.

Solange Rouschop, Chief Sustainability Officer