New ISSB Chair Speaks on Sustainability Within the Standards

Emmanuel Faber was appointed as the inaugural Chair of the newly created International Sustainability Standards Board (ISSB) in December 2021. He discusses his role, the work of the ISSB and the impact of sustainability with the Standards. This is the first of a two-part installment.

What attracted you to the role of ISSB Chair?

I have always been interested in sustainability. As a keen rock climber I have a strong affinity with nature and the great outdoors. And as a business leader, I placed sustainability at the core of business strategy. That’s not only good for society and the environment, but it is also good for the long-term success and resilience of the company. 

Greenwashing has become a real risk in recent years but one thing it shows is that companies recognise that acting on issues like climate or social matters is important for their stakeholders and shareholders. The problem in today’s market is that companies can make claims that nobody can verify. That makes it extremely difficult for people making capital allocation decisions. High-quality global standards for disclosing sustainability information will significantly reduce greenwashing ‘noise’ and help companies and investors have meaningful conversations about what really matters to them and the concrete steps taken to implement sustainability commitments. 

When did you see the interplay between business and sustainability?

I have always looked at economy from the angle of the word’s Greek roots—oikonomia—and consider it our way of living in a common home. I am of the view that only human capital exists. Ideas for innovation, collective action to create business solutions to meet needs are a human factor, which then attracts financial capital for implementation. For me, such human capital is naturally embedded into the fabric of companies and the economy. I became aware of the climate component of this common home back in 2005: carbon is needed in the soil as a core nutrient—not in the air. As one of the leading food and agriculture companies in the world, at Danone we had an opportunity to decarbonise our processes while building the long-term resilience of our business by taking care of what nature provided for free. 

Why does sustainability matter so much to you, as a professional and as an individual? 

I think we are at a turning point. We have built a global economic system which is now being challenged in many ways because the somewhat linear economic development that has taken place in many countries over the last several decades is coming to an end. The world has become volatile and climate is an increasingly critical factor of volatility and of increased inequalities across many dimensions. So we can’t think only with the mindset that emerged in the middle of the previous century. We have in many ways focused on short-term efficiency, and we are at a time when we absolutely need to add resilience into the mix. Already today, climate change is driving extreme weather events, water scarcity and social instability. The current decade is critical for managing and mitigating the effect of such events on our global prosperity. 

What skills and experiences from being the CEO and Chair of Danone will be most useful in your new role?

I have significant experience in leadership and in working with people all over the planet. I have lived and worked in Africa, Asia, the Americas and Europe so I am used to talking with and listening to colleagues and other stakeholders around the world. As the CFO and CEO of a large, listed company I was also exposed to the information demands and expectations of global investors.

I have been involved with, founded and chaired several business coalitions—including the G7 Business for Inclusive Growth coalition, working with both the public and private sectors, and bring the skills and relations I have built through that work too.

Source: ifrs.org

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