3 October 2024
“Voluntary commitments are more efficient in propelling sustainability and prosperity than regulatory frameworks”.
That was the motion put to panellists in a fun and lively debate at this year’s UN Global Compact Annual Summit. On the team arguing for the motion was twentyfifty Director Hazel Culley.
The summit took place at the London Guildhall on 1 October 2024 and was live streamed. Closing the day of discussion, workshops and networking, the debate offered plenty of fresh and interesting perspectives on the global sustainability legislation conversation.
Lord Jack Wilson McConnell (Chair of the All-Party Parliamentary Group on the UN Global Goals) moderated the debate and introduced the speakers – noting that the views they expressed as opposing teams didn’t necessarily reflect their genuine views or those of their organisations!
From snowballs to seismic shifts, here are some of the highlights.
Arguing for the motion
Arguing for voluntary commitments were:
- Catherine David (Director, Behaviour Change and Business Programmes, WRAP)
- Matt Sparkes (Sustainability Director, Linklaters)
Members of the team criticised regulations for being cumbersome and focusing too much on retrospective reporting, and questioned the power of regulations, pointing out that there are often no significant penalties for organisations that fail to comply.
They noted the costs of compliance and bureaucracy – money that could be spent on impact – and warned that legislation might encourage companies to only do enough to be legally compliant, rather than strive for true impact.
In contrast, the team praised voluntary initiatives for their speed, flexibility, and capacity to inspire action. They highlighted the success of movements like the Living Wage, where businesses voluntarily came together, creating a “snowball” effect that led to real change.
They also referred to the success of Fair Trade, emphasising how voluntary actions by supermarkets in the UK, and then globally, has led to significant economic and social benefits for banana farmers, and how voluntary business action has fed into the creation of human rights due diligence legislation.
Culley said: “I was lucky enough to join Marks and Spencer in 2007, just after Plan A had launched. That initiative spawned so many more voluntary initiatives ... Businesses are competitive. They will do it things voluntarily for the right reasons. And [Plan A] wasn't done because of legislation, that was done because pioneering, innovative people got in a room and they were visionaries and they wanted to change the world.”
Arguing against the motion
Arguing for regulatory frameworks, were:
- Inder Poonaji (Director ESG and Sustainability, Modulaire Group)
- Professor Natascha Radclyffe-Thomas (Chair of the UN Principles for Responsible Management Education, UK and Ireland Chapter)
- Kelly Sporn (Special Counsel & Head of Strategic Delivery - Sustainability & ESG, DLA Piper)
Members of the team emphasised that we are in a “firestorm” regarding lack of global progress on environmental and social sustainability, and as an example, pointed to businesses still being “over 150 years away” from closing the gender pay gap.
The team emphasised the necessity of laws in creating lasting societal change, questioning whether historical advancements like the abolition of slavery or gender equality could have been achieved through voluntary measures.
They argued that regulations go far beyond just reporting, explaining how policy and law shape societal thinking and hold businesses accountable for their environmental impacts. The recent European Union Corporate Sustainability Due Diligence Directive (CSDDD) was cited as a "seismic" shift, influencing even businesses outside of Europe to adapt their practices.
The team passionately urged businesses and governments to: “deliver what young people need to live sustainable and prosperous lives by returning faith in our legislators and regulators.”
Creating impact
While the debate was fun and thought-provoking, many panellists noted that regulations and voluntary commitments can work in tandem to help organisations to create lasting impact.
If you’d like to find out more about how twentyfifty supports companies to deliver on their commitments to human rights and address legislation like the EU CSDDD, get in touch!
Image credit: UN Global Compact