 Hello everyone. Good morning, good afternoon, and good evening. On behalf of the World Economic Forum, I'd like to thank you all for joining us for our first-ever virtual sustainable development impacts summit. I'd also like to thank you for joining us for this session and your interest in the topic of ESG and corporate governance. My name is Mahal Toghi. I head the investors industries here at the forum. I also lead our work on the platform of shaping the future of investing, and some of you may have seen that earlier this week we launched a paper titled Measuring Stakeholder Capitalism, which represents the culmination of a year-long initiative on identifying universal ESG metrics and disclosures for all companies to report on to demonstrate how they generate value over the long term. This was a collaboration with our partners Bank of America, Deloitte, EY, KPMG, and PWC, and many of our corporate partners who some of whom are in this meeting today. We've also been leading a collaboration with Baker McKenzie on the topic of corporate governance and the future of corporation and how companies are actually taking these ESG principles and other factors and incorporating them into their strategies and operations, which is a big part of what we're talking about or is what we're talking about today. How do we actually take these principles and make them part of our business practices? I am thrilled to have Professor Klaus Schwab with us this morning to introduce this session. Before I hand over to him though, I'd like to just do a couple of points on housekeeping. This session is being divided in two parts. The first part is actually a live stream panel and then the second part is an interactive discussion. For those of you who'll be staying with us for the interactive discussion, please, we'd like to engage in the conversation in all the ways that we have learned to do over these past six months on Zoom. Then for those of you who will not be staying with us, if you'd like to learn more on the work that we're doing on ESG or governance, you can contact us at esgmetricsatweforum.org. Without further ado, I will hand over to Professor Klaus Schwab to introduce us. Thank you very much, Maha. It's a very important session today because it follows the publication, as you said, of the ESG metrics and as you have seen, those metrics were picked up by the media quite substantially. I would like to thank here and I know a number of our IBC members, international business council members have joined us. It was a great work led particularly by Brian Monian and of course for audit companies and you, Maha, you contributed substantially to it. I just want to remind you to be very short. We talk not just about metrics here and adding something to the reporting process. We are talking about the substantial shift which is taking place, which is the transition of an economy which is more based on shareholders' value to an economy which is more based on stakeholder responsibility. The metrics are walking the talk. To add, I would say, a concrete dimension to the stakeholder responsibility. I also would like to mention that this work is part of our great reset initiative. The World Economic Forum at the moment is mobilizing all its communities, also in preparation of our annual meeting in 2021 related to the definition and design of policies which we have to follow in the post-corona era. We all know we need to make the world more resilient, more inclusive and more sustainable. So the stakeholder concept and particularly the ESGs are a very important part of getting business involved. What I'm particularly proud of in the case of the development of those ESG metrics is that the initiative came from business, from our 100 plus CEOs. It was not something, let's say, imposed on business. Business itself took on the responsibility to define how could the reporting process and the measuring process and the reporting process structured in a way which gives better impression to stakeholder responsibility. Thank you and I would like now to pass on the responsibility for our discussion to you, Beatrix, those floor is yours. Thank you very much Klaus. I'm delighted to be here with all of you today and to add my welcome to all participants to the session. I'm thrilled to have four wonderful speakers with me today who have kindly agreed to share their insights with us. I'll briefly introduce then Manvinder Vindi, Singh Banga, who's a senior partner at Clayton, Dabilie and Rice, Julie Kitcher, who's executive VP at Airbus, Geraldine Matchett, whose co-CEO Royal DSM and Amy Weaver, president and chief legal officer at Salesforce. So as Klaus has said we've all been hearing the ESG drumbeat that has risen into the boardrooms across our global village. What were once minority voices then turned into market voices. What we are seeing now is that these voices have become market forces. Profit and purpose can be bedfellows, engaging with your stakeholders is good for business. Measuring and reporting the impacts of stakeholder engagement in a common language and to global standards has become an imperative. You've just heard about progress in this regard announced earlier this week. In the session we would like to discuss what good stakeholder governance might look like. How boards can ensure that they bring the voice of planet and of society that is customers, suppliers, employees, communities, right into the boardroom. How can these forces inform a company's purpose and strategy ensure effective decision making across the organization? How can shareholder and company interactions become centered on long term value creation? The need to answer all these how questions has become more urgent as a result of the pandemic. We can all sense that ESG, the importance of taking into account the voice of stakeholders, is not a one night wonder. The session is divided into three parts. A panel to discuss practical approaches to stakeholder governance. Then we will break out into zoom rooms to share and discuss the stakeholder governance journey and organizations and then we will regroup and discuss what we learned. But first we would like to conduct a quick poll to get a sense where the room feels the organization is in the stakeholder governance maturity pathway. So if I could call up the poll what we would like to ask you is how would you describe your organization's adoption of stakeholder governance and ESG metrics? Is it ad hoc? Is it functionally driven? Is it strategically driven? Or is it culturally driven? And imagine a curve going upwards on each of those. So if you could quickly submit your answers, that would be great. Let's see where we come out. Looking for the results? Maybe it was a difficult question. Very interesting. Good I guess because more than half feel it's either strategically driven or culturally driven. Obviously where we all want to end up is up in that in that half ideally in the top quadrant. So now let me turn to our panelists as there are a couple of questions we would like each of you to turn your attention to in particular from the perspectives of your organizations. The first question I would like to invite the panel to address is what do you believe are the three essential ingredients for impactful stakeholder governance and how is a maturing ESG ecosystem affected those beliefs? Amy, may I start with you? Sure. I'd be happy to address that. And good morning everyone from Utah. Delighted to be here today. So I think in terms of the three ingredients that have been most critical at Salesforce, the first is really building ESG into our DNA. So when the company was founded in 1999, along with founding a company, they immediately adopted a new way of doing business which we called 111. And it was a commitment that 1% of the equity 1% of employee time and 1% of our products would always go to good causes. Now there were only four employees there was no product at that point and the equity wasn't worth anything. But it was built into our DNA. And 21 years later, that has added up to more than $350 million in grants, five million hours of employee volunteer time. And we have over 50,000 nonprofits running on our platform for either free or discounted amounts. It all comes back to that initial decision to make it part of our DNA. I think over time, the next critical point came around 2015. When we really started using our platform for good and realizing that we could influence social policy, whether that was through standing up for our employees and our community's rights in Indiana in 2015 or taking a stand for corporate taxes to help support homelessness services in San Francisco. More recently, we started accounting, holding ourselves accountable by filing key performance indicators in our SEC filings and also publishing a stakeholder impact report. I was very excited to see the World Economic Forum endorsing new standards, which I think is going to make it easier for all companies to hold themselves accountable as well. Vindi, may I ask your perspectives from the private equity angle? Certainly. Good afternoon, everybody from London. Delighted to be here. What are the three things that are absolutely crucial? I think the first of those is focus. It's really important to realize that ESG is a long journey. The issues involved are very complex. Many, many parties involved, and they require a lot of commitment and consistent effort to drive positive change. And therefore, to make an impact, you have to focus. And the leadership will need to think about the handful of things they are going to pick, because actually everything, the long list looks great. You want to do everything, but you've got to pick the few things that are really going to drive value for your particular company. Pick them from the point of view of risk, but importantly also pick them from the point of view of opportunity. To the point Klaus just spoke about earlier, we all know that you get what you measure, and therefore it's really important to pick the few things and then have clear measures. Now measurement is hard, and I think the recent metrics that have come from the forum will be hugely beneficial to actually pick those few and then measure progress. So that's the first point. Get started. It's a long journey. Pick a few things and keep moving. The second, I would articulate, is try to make sure that ESG is a genuine part of your leadership process. It can't be run separately from the real business. It can't be sort of a separate group or a separate department within the company or organization. All the agreed ESG priorities have to be woven completely into the business plan. And if you think about it for a moment, that's obvious, except you don't see it happening in many, many organizations that I come across. If you want to take action across your supply chain, by definition your procurement people have to do it, not the ESG group. If you want to actually reduce waste and emissions, your product development people, your factories, they're the people who have to get involved and sort it out. If you want to focus on diversity, well, it's got to become part of the selection process. Everyone involved in it is got to understand how to change onboarding, etc, etc, etc. So it's got to be integrated into the way you run and lead your day to day company. It's not something you review from time to time at either ESG or board meetings. The third point I would articulate, it truly is culture. You have to believe that ESG creates value. Now if you stand back from it, it does. We know that environment, the e-part is about doing more with less. And if you're able to do that over time, that will surely create value. As far as S, the whole point of our stakeholders, we know that if your employee is actually happier, that person's got to be more productive. If the employee force is healthier, they're going to be more productive. And therefore, I think again there you can see the link between these words ESG and actual real value creation. Now how do you build that? You build that by leading from the top. The whole organization always watches the leader very carefully and watches the board extremely carefully. So small things make a huge difference around what I've been saying earlier. Is it actually on the agenda at every key leadership meeting? Are the measures we're talked about relevant to compensation? Do they matter? Are people who are actually genuine believers in ESG and the purpose of the business, do they get rewarded? So culture is built over a long period of time with lots and lots of effort. One mistake can destroy it. So those are my three points, I guess. Focus, making sure it's part of the leadership process and building a ESG culture, a governance stakeholder governance culture. No, those are great insights, Vindi. Thank you. And I'd like to turn to you, Julie, although in Toulouse, how is Airbus facing these challenges? Thank you, Beatrice. It's really a pleasure to be here with you today. So over the last six months, we at Airbus have obviously been focusing on the navigating the gravest crisis to hit our industry. And we've been doing it in collaboration with our partners, customers, suppliers, governments and others. And I think in so doing, our stakeholder governance has probably taken on a new dimension. So the three key ingredients, which I think have driven really positive outcomes. Firstly, having a shared sense of purpose. Actually, I believe we're very fortunate to have defined our company purpose ahead of the crisis. It's given us a North Star and an opportunity to pull together or towards that North Star and focus on what's really important. Focus the key priorities for us as a company. And the role that we play in society and it has ESG at the core. And I think especially in times of an industry standstill with confinements and travel restrictions, there's really been no better vector than to strengthen our ties across the board via that purpose. From customers, employees, suppliers, policymakers and indeed investors. It gives us that North Star. So we've tried to create a shared understanding of the value of our industry and indeed the value that our company can bring to society as a whole. So our purpose is to pioneer sustainable aerospace for a safe and united world. And it really reflects that value aviation and aerospace can bring to society by creating economic progress through connectivity and global trade, which in turn allows us to innovate for ambitious environmental goals and commitments. It brings social progress through connecting people, cultures. It creates lasting friendships and resolves conflicts as well. And of course, all within a growing framework of governance and transparency. The second is probably ensuring equal parts of proactivity and collaboration. What do I mean about proactivity and collaboration? Well, probably again, even more apparent of late, we need to strike the balance between the two to be impactful. As an industry leader, Ebers has the ability to play a leading role in the recovery of aviation, but of course, cannot do it alone. For example, the fear of contracting COVID-19 while flying really required us industry wide to address the specific concerns of our stakeholders, which is why we launched a multilateral cooperation between industry wide organizations, airlines, governments, stakeholders and leading manufacturers, of course, to keep trust in air travel and restore a safe and timely return to air operations. But again, you can only do that through collaboration. This week, hopefully you saw it, we clearly demonstrated our intent to fulfill our ambition to lead the decarbonization of the industry. We announced a bold intent to bring a zero-emission aircraft to market by 2035, but we know, however, we'll only do that, we'll only succeed through strong collaboration. And a testimony to that is in the strength of the recovery agreements with our European government partners, among many things, which will allow us to accelerate our research efforts in cleaner aviation technology. And probably lastly, so the third ingredient is really to build and nurture trust. And in so doing, we focus really on four pillars as a company, quality, safety, integrity and compliance at the foundation of what we stand for. And we have a code of conduct, sorry, which is deployed company-wide and widely recognized as our governance backbone. And furthermore, clear, consistent and standards-based ESG reporting remains an essential ingredient for us with building trust with our stakeholders. So we also follow GRI guidelines and regularly publish CDP reports. Thanks, Julie. Those are very interesting insights as well. Last but not least, I'd like to move to you, Geraldine, and hear your thoughts on your journey. Thank you, Beatrix, and it's a great pleasure to be part of this amazing conversation at exactly the right time. Your question was, what are the three main ingredients? And I have to say, listening to Vindi earlier, it's a nice way of linking, because at DSM, for those of you who don't know us, we are the world's leading producer of micronutrients and a specialty materials company, and about 10 billion. And just to give you an idea of the journey, we will be celebrating our 10th integrated annual report. We were actually reporting on a triple P bottom line 20 years ago. And the reason why I'm mentioning this is, for us, the main number one ingredient is leadership from the top on a long-term basis. This cannot be on and off. So my predecessor's predecessor started the journey, and we've continued to build ever since on that. Going all the way to having our remuneration being 50% linked to ESG and 50% financials. And when we introduced that in 2009, so this was not a new thing, it made the first page of the Financial Times. Now, I'm glad that today things have moved on. But I think my message is, as Vindi was saying, get started, but you have to be consistent, and it does take time. So that would be the first ingredient. The second one is actually trust and transparency. So we've been a listed company for 30 years. We have more than 100 year history as a company. But being listed, of course, you learn to earn the trust of your shareholders, but you also need to earn the trust of your stakeholders. Now, we are a Dutch listed company. So our articles of incorporation actually requires to take care of all stakeholders. And that is now reflected in the way that we run the business. And it is absolutely true. You need to embed it in everything that you do. Partly, what I mean, trust. It does mean reporting in a consistent, coherent way, and if possible, get reasonable assurance on the quality of your ESG reporting, and the same way as you would have the quality of your financial reporting being validated. So that's the other big component. And if I link to that, the third one, unfortunately, isn't in place yet. Although I do believe, thanks to the World Economic Forum amongst others, we're making progress. And that is about having an agreed framework of reporting. Now, we've been very involved with the IBC and others to try and help a convergence around the right reporting matrices. Our work has made us identify over 650 ESG matrix that are out there. And we are actually ranked one in pretty much all of the ESG rankings that are around. But to get there is currently a very complicated thing. And it's not helping to be fair, the readers and neither the investors, nor society, no community at large, because it is very eclectic. And therefore, it's difficult to follow. And it's difficult to really hold companies accountable because there's this still very scattered way. So we highly support the work that's been done here and how critical it is to bring a convergence and to bring much more systematic approach to ESG reporting going forward. Thank you so much, Geraldine. Also some great insights. I've heard comments like in DNA, integrated culture, belief that ESG creates value, prioritise, create a shared understanding, industry wide cooperation, that was great. Trust, transparency, a leadership for the long term also tied with remuneration and appropriate incentives. A lot of good pointers there. We're strapped for time, but I would like each of you, if you would be willing to just look at what's happening today and how is that impacting your future? What steps are you looking now to take in the future given what we've been living over the past few months? Amy, could we kick off with you again? Sure. I think because it's focused on stakeholder governance has been so built into our DNA from day one. The recent pandemic and different changes now haven't really shifted our course, but I think what this year has done is really reinforced stakeholder theory. It's shown that our communities and our companies, there's a blurred line. Companies don't operate in a vacuum. I think back to two years ago when Salesforce was very instrumental in supporting a tax that was going to raise taxes on large companies, and as I mentioned, to support homelessness. Now at that time, we were constantly asked, what does a software company, why do we care about homelessness in our city? I think the answer is even more clear today. We're not in a vacuum. Strong cities, strong communities, strong public education, that benefits all of us and it leads to a strong company and particularly one that is going to be sustainable and ethical over the long term. All of this comes back to us and that leads to a stronger company. Thanks so much, Amy. I've got a minute for each of you. You're all doing great keeping to your time. So Vindi, what are you thinking you'll be changing or doing looking into the future? I'd say this. All of us, whether we're in the public markets or my side, for example, private markets, we're all owners of assets and companies. And this is not something that's only relevant for the public markets. There's often a misconception in private equity firms that we are transient owners and therefore how can we really have an effect on ESG? And I would just like to use this moment to say that I certainly don't believe in that. Our firm doesn't believe in that. We believe that even if we are transient owners, we pick up companies and we make material changes to them in their growth, in their cost structure, in their margin, and we can do exactly the same with their ESG metrics. We can inherit companies at a particular stage of ESG governance and when we leave them, leave them at a much better place. And I think that's the opportunity for private capital. Incidentally, the private capital in the world today is over five trillion and it turns over every five years. So you can imagine the rolling impact that private capital can have on multiple companies as an engine for change. Thanks so much, Vindi. Julie, some concluding thoughts looking into the future. Yeah, thanks. I think it's about harmonization and integration. So I think all stakeholder groups, employees, customers, governments, NGOs, investors, they have much more common and harmonized expectations with regards to ESG matters. And so that also helps with them being really embedded in metrics rather than an overlay on top. And I think it helps to really align with respect to decision making, integrating sustainability into the overall company strategy and management of the company. And so that helps with the acceleration. I mean, on our side, we've now created a dedicated sustainability committee at the board of directors level. Like I said, I think we see the convergence now of financial and ESG performance. And to give a concrete example, we've also embedded sustainability targets and objectives within our top company performance objectives now. And that really helps to focus the mind and energy and create a culture of ESG throughout the company and a better understanding of our external stakeholders as to who we represent as a company. So market force is clearly at play from every direction. Geraldine, we've got literally 30, 40 seconds left, but I don't want to leave you out. No, no, no. I will make it short. What the crisis has shown for us and for the whole world is that basically we need nature to survive all companies, no matter what our activities. And therefore, embedding what we do around sustainability into everything is the key. Now, the truth is we can only do it across a whole value chain. And what I would really like to see is a convergence on the matrices, not for the sake of it, not because it's a better way of looking at a company, but it is also a much better way at connecting all of the different players across a value chain. And in our case, the food systems is in crisis. It's only through an ESG coordinated approach that we will truly be able to improve an end-to-end system like the food systems. Excellent. Supply chains, we needed to make sure they were also included. So thank you so much for that. Thank you, Amy, Bindi, Julian, Geraldine, for a very insightful number of comments you've shared with us.