On this edition of “Ask an Expert”, we sat down with Jack Rrapo, Head of Compliance and Global Accounts and Laetitia Tardieu in charge of ESG solutions at Hyundai GBFMS.
Interviewer
Good morning to you two. Today, we would like to discuss with you about ESG. ESG is a concerning issue that requires a lot of adjustment from companies. How are you approaching this new challenge?
Jack Rrapo
Yes, ESG has for quite some time been a learning and working process for all of us. And our ESG team led by Laetitia, has done a fantastic work on implementing an ESG Solutioning Program to support our clients navigating these new requirements.
Hopefully, we will see some fruitful results in the coming month or so.
Interviewer
And what struck you the most during this process?
Jack Rrapo
Everything struck me equally. Every content per se is a single piece of art to say the least. It is an art of defining the world of tomorrow. It is a fine combination of various pieces put together to come up with this very specific puzzle called “ESG”.
Interviewer
And what progress has been made so far?
Laetitia Tardieu
In terms of ESG framework itself, progress has been made in terms of responding to the needs for meeting global standards and local legislation. We have always supported our clients in terms of environmental solutions such as energy efficiency, air quality solutions, and so on. But this time, we understand that our clients require tremendous support to fit specific requirements that affect the whole business environment.
Various industries and business are adopting the ESG framework and regardless of the field or industry, at one point or another every business will need to comply with the ESG framework so the sooner, the better.
Jack Rrappo
Yes, as Laetitia said, it is worth to bear in mind that the ESG will be mandatory for all of us in the coming years.
However, in absence of clear global or local standards and guidelines right now, there will of course be various interpretation of ESG and scoring.
But this does not mean that we can stand still until then. We must start preparing and acting now before it is too late and that’s where Hyundai GBFMS ESG experts can support.
Interviewer
To what extent you think that ESG will affect the companies?
Laetitia Tardieu
ESG will touch every single area of the business as we know it. It means that no one will be immune no matter the location, size, products, services, etc.
And why is that? Various factors are to be considered starting with clients or consumers conscience towards the products or services in offerings, various mandatory legislations and regulations related to environmental, social or governance matters, and so on.
Stakeholders alike are becoming very sophisticated in sense that they would rather accept goods or services or do business with ESG certified enterprises. And it is even more true with my generation of millennials and future generations as well. We are more aware of environmental, social, and governance issues. And simply put, we want a better world. And we expect businesses, as main actors of society, to greatly participate in creating a brighter future for all.
Jack Rrapo
Yes, I agree. Young generations as stakeholders are becoming more conscious and rightly so. From the Environmental point of view, stakeholders are focusing on compliance with global standards on let us say emission, energy consumption, water consumption, waste, biodiversity, compliance with all the rules and regulations, etc.
From the Social point of view, stakeholders will look at various factors like human rights, diversity and inclusion in the workplace, training, supplier assessment and so on.
And from the Governance point of view, a decisive factor will be based on transparency, fair practices, board gender and diversity equality, CSR, risk management, and so on.
But as mentioned before, all the above factors cannot be achieved without proper standardization of legislation, rules, and regulations across the world.
Interviewer
And do you think time is on our side?
Laetitia Tardieu
That is an interesting question indeed and to answer it simply “It is better late than never”.
And to prepare ourselves for this gravity shift, let us start by asking ourselves of what we have done before, what are we doing now and what are we going to do for tomorrow’s world.
If we are committed to a better world, we must be prepared to adapt to change.
Interviewer
And what are some of your thoughts for all our colleagues out there regardless of industry and field?
Jack Rrapo
Well, changes are a matter of survival these days. And given the world we are currently living in, these changes happen with a lighting speed and everywhere.
Given the interconnectivity, any slight changes or disruption in one part of the world will be almost certainly felt on the other side of the world as well.
And to think that we are somehow immune to these changes, is somehow not acceptable to the stakeholders from the environmental, social and governance point of view.
ESG is a truly seismic shift and wake up call for all of us since it will define and write our success in tomorrow’s world.
Interviewer
I would like to thank you again Jack and Laetitia for your time.
Jack Rrapo
It is my pleasure.
Laetitia Tardieu
Thank you very much.
For more information on how Hyundai GBFMS can support your ESG strategy, please visit https://hyundaigb.com/en/consulting-advisory/
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