APEC 2021: The Kiwi women moving the world forward at Apec 2021 (NZ Herald)
APEC 2021: The Kiwi women moving the world forward at Apec 2021 (NZ Herald)
Women’s economic empowerment has been a key pillar of Apec’s work, and since New Zealand last hosted Apec two decades ago, has made significant gains.
Economies across Apec have worked together to promote those with “untapped economic potential” — people who have faced barriers to full economic participation — to provide the energy and vision for future growth.
A key focus of this work has been addressing the structures that hold back women’s full economic participation. While there is still significant progress to be made, as this year’s host New Zealand is leading the way with three women — Andrea Smith, Barbara Chapman, and Rachel Taulelei — holding pivotal roles to deliver the year’s event.
Andrea Smith
One of the key diplomats leading New Zealand’s year as Apec host is Andrea Smith, Apec deputy secretary at the Ministry of Foreign Affairs and Trade.
She has been in the role since 2017, and in that time has seen events that have put New Zealand’s hosting of Apec at risk — including the fire at the Sky City International Convention Centre fire where the CEO Summit was originally to be held, and the Covid-19 pandemic, which ground travel to a halt and forced Apec to go fully virtual.
Smith says that as host, New Zealand is at the leading edge of shaping the agenda for the Asia-Pacific and has “skin in the game”.
“Fourteen of our top 20 export markets are Apec members, including the three largest economies in the world — the United States, China and Japan — and 18 of our 19 free trade agreements are with Apec partners.” says Smith.
“Trade between Apec economies is now eight times greater than it was in 1989; average incomes in the region have more than doubled.”
Smith says she will have done her job if the virtual host year of Apec runs well, with the delegates able to focus not on the technology or the virtual aspects but “if they are able to focus on the business of Apec and the issues they have to address, like Covid-19, where Apec has a considerable role to play”.
Barbara Chapman
Chair of the Apec CEO Summit, Barbara Chapman is also chair of Genesis Energy and NZME, publisher of the New Zealand Herald, an independent director of Fletcher Building, a member of the independent expert advisory panel for the New Zealand Reserve Bank Act review and a previous member of the Prime Minister’s Business Advisory Council. She was previously CEO and managing director of ASB Bank, before retiring from her executive career.
Chapman says the summit is a great opportunity for New Zealand to showcase how adaptable it is, and for businesses to connect with each other.
“Given the many challenges that businesses in New Zealand and around the Apec economies are facing, it would be easy to dismiss this opportunity and focus on the day-to-day issues.
“But given the critical need for international connections, trade pathways, and digital technology to revive and repair some of the Covid-damaged parts of our economies and our trading networks, this is a once-in-a-generation opportunity for New Zealand businesses, organisations and individuals to hear from the world’s leading thinkers and be part of these important conversations.”
Rachel Taulelei
Co-founder of business design and brand strategy firm Oho, Rachel Taulelei is New Zealand’s lead representative and 2021 chair of the Apec business advisory council (Abac).
A prominent business leader, Taulelei is a strong advocate for the Māori economy and sustainability in the food and beverage sector.
Taulelei says if there was ever a time for the conversations that New Zealand’s host year allows, it is surely now, when the continuing challenge of the pandemic requires a co-ordinated, collective response.
“When it comes to finding the solutions for overcoming the health crisis, getting back into growth mode and addressing long term structural issues like sustainability, digitalisation and inclusion, Abac ensures the voice of business is heard,” she says.
For Taulelei, this means putting people at the centre of everything we do.
“We need to do so in a way that respects and preserves the environment in which we live. And we have to continue to have regard for continuing to advance economic well-being,” she says.
At this week’s CEO Summit, Taulelei will be speaking on a panel about sustainability, and the areas the Apec region should be thinking about and working together on to tackle the environmental crisis, address climate change, and foster green, resilient and inclusive growth.
Women and the economy
Covid-19 has disproportionately impacted women’s employment. At the same time, a significant amount of the essential work and caring responsibilities during the pandemic have been carried out by women.
Advancing women’s empowerment is an important part of Apec’s goal to achieve inclusive and sustainable growth across the Asia Pacific region. Earlier this year, Apec held a Women and the Economy Forum, to address outstanding issues for women and girls across the region as it recovers from the pandemic.
The forum brought together Ministers and representatives from 21 economies. They issued a statement to prioritise implementation of the La Serena Roadmap (Apec’s action plan on women’s economic empowerment agreed in 2019), gender responsive policies for recovery from the pandemic and ensuring a sustainable, resilient recovery for women and girls.
Following the forum, Minister for Women Jan Tinetti said:
“Some key issues we’ve identified include women’s representation in trade, changes to address gender pay gaps and occupational segregation, the disproportionate share of care work undertaken by women and girls, equal access to digital skill training and financial literacy and gender-based violence…
“We are committed to further improving the lives of women and girls in Aotearoa NZ. Our focus includes developing a Women’s Employment Action Plan to support women to build back better after the pandemic, women in leadership, closing the gender pay gap, safety from family and sexual violence and improving outcomes for wāhine Māori.
• In the Apec region, 77 women are working for every 100 men. In the rest of the world it is 67 women for every 100 men. No economy has top female managers in more than 30 per cent of firms
APEC 2021: Think Apec on Zoom is wild? Try Russia in 2012 (NZ Herald)
APEC 2021: Think Apec on Zoom is wild? Try Russia in 2012 (NZ Herald)
I was a participant in Apec’s Voices of the Future in 2012, held in Vladivostok, in Russia’s far east. The world looked considerably different back then.
Hu Jintao addressed the CEO Summit as President of China, Hillary Clinton gave a speech as US Secretary of State, on behalf of then-President Obama who was campaigning for the upcoming election, and Australian Prime Minister Julia Gillard was part of an education panel discussion, before having to depart early after of the death of her father.
As a New Zealand Voices of the Future delegate, I spent time with Prime Minister Sir John Key just ahead of his bilateral with Russian President Vladimir Putin, where the two were set to discuss the free trade agreement between New Zealand and Russia (negotiations were suspended in 2014).
Key spoke candidly about what it was like to represent New Zealand, a small economy, as an equal at the Apec table and engage with the world’s most powerful leaders.
Of course, one of the highlights of travelling to Apec was the cultural immersion and the people I met.
Russia went all out hosting Apec — US$21 billion was spent getting the city ready for the summit, vodka and caviar were prominent features at networking events, and a US$9 million firework display at the closing ceremony was one of the most extraordinary things I’ve ever seen.
At the summit’s gala dinner, I was introduced to the father of one of the Russian Voices of the Future participants. He was surrounded by bodyguards, and, unbeknown to me, was the Russian Energy minister.
I gave him my last remaining gift from NZ — an Ecoya candle. In exchange, he reached into his jacket pocket and handed me a large gold coin, minted to commemorate the new 1800km-long gas pipeline to Vladivostok.
Fast-forward nine years and it is NZ’s turn to host Apec. Things look so different now, with the pandemic requiring the summit to be delivered live over a virtual platform.
This year, I am the content producer for the Apec CEO Summit, as well as MC for the Voices of the Future programme. While the pandemic has meant attendees miss out on a visit to New Zealand, technological developments allow them to still experience NZ’s characteristic values of manaakitanga and whanaungatanga — a shared sense of humanity and connectedness — and work together on the issues that matter to them.
In 2012, when I helped write a declaration to Apec leaders on the issues we were most concerned about as future leaders, I was nominated by my peers to present our work, which was broadcast live on Russian TV. I spoke about the opportunity for SMEs to transform the economy of the Apec region, and encouraged leaders to support smaller organisations to grow. While the process of writing the declaration was a good one, I doubt Putin ever saw it.
This year feels like the dawn of a new era, in many ways, in digital diplomacy. As Apec chair, Prime Minister Jacinda Ardern will spend time next week with Voices of the Future delegates, receiving their declaration and hearing what matters to them, ahead of her meeting with leaders of the 21 Apec economies.
It is the next generation, after all, who are the biggest stakeholders in the work that Apec is doing.
New shifts in sustainability trends continue at pace
New shifts in sustainability trends continue at pace
The final leaders’ communique from the G7 states: “2021 should be a turning point for our planet as we commit to a green transition”.
Many of the sustainability trends in business that were on the rise last year are continuing at pace.
The pandemic highlighted the interconnectedness between social, environmental and economic challenges. It reinforced that an approach, centred around strong environmental, social and governance (ESG) principles is important for a sustainable future and that companies with strong track records in these areas tend to do well in the long-term.
But there are distinct new shifts in sustainability that have emerged over the past year that will shape the agenda and have a major impact on business in the months and years ahead.
Increased data and disclosure to counter greenwashing
The demand from consumers for sustainable business practices brings with it a growing concern that greenwashing is being used to obfuscate environmental credentials.
Recent audits have shown this concern has substance. A study of 12 of the biggest British and European fashion brands found 60 per cent of environmental claims could be classed as “unsubstantiated” and “misleading”. In another study, a sweep of company websites across a range of sectors by the European Commission found that green claims in 42 per cent of cases were exaggerated, false or deceptive under EU rules.
There is a growing expectation that companies will substantiate claims made.
Going a step further, some consumers and investors are expecting companies to disclose a plan for how their business model will be compatible with a net-zero economy — including detail on how that plan is incorporated into a long-term strategy that it is reviewed by the board of directors.
Earlier this month, former US Vice-President Al Gore told the Bloomberg Green Summit: “we must be vigilant about the rising threat of greenwashing or risk derailing the hard-won progress” that has been made in recognising the climate crisis.
He also noted that sustainable investing has “entered the mainstream,” providing even more openings for potential greenwashing.
Gore is right — sustainable investment opportunities have begun flooding the market to meet demand from investors looking to make decisions aligned with their ESG values. Of the S&P 500, about 90 per cent of companies publish sustainability reports, yet only 16 per cent have any reference to ESG factors in their filings — clearly demonstrating the gap between what companies voluntarily publish and regulatory disclosure.
To counter this, a broad range of requirements are being swept in to standardise the current patchwork of regulations and disclosure frameworks.
In March, Wall Street’s top regulator the Securities and Exchange Commission (SEC), announced the creation of a Climate and ESG task force to develop initiatives that will “proactively identify ESG-related misconduct”.
“Climate risks and sustainability are critical issues for the investing public and our capital markets,” said SEC acting Chair Allison Lee.
The task force will use sophisticated data analysis to identify potential violations, and evaluate and pursue tips, referrals and whistle-blower complaints on ESG-related issues.
The CFA Institute, a global association of investment professionals, is developing ESG standards for investment funds and other products, aiming to “provide greater product transparency and comparability for investors by enabling asset managers to clearly communicate the ESG-related features of their investment products”. Draft guidance was released earlier this year that the CFA Institute hopes will be adopted by fund companies around the world.
Global action to build back better and provide a green alternative to Belt and Road
One of the most dramatic turnarounds from the Trump administration has been the pace at which President Biden has thrown the weight of the United States behind global efforts to address global ESG issues.
Many of the Biden administration’s key people have been brought in with a strong environmental focus. Alongside this, the US quickly re-joined the Paris Climate Agreement, a new White House office of climate policy was established, and former Secretary of State John Kerry was appointed as international envoy on climate change.
In May, the White House issued an Executive Order that lays out a whole-of-government approach to addressing climate risks.
The recent Group of Seven (G7) meeting in Cornwall, United Kingdom, saw leaders announce the “Build Back Better World” (B3W) partnership. B3W is a “climate-friendly” initiative to mobilise private capital to help narrow the US$40+ trillion infrastructure need in the developing world which has been exacerbated by the Covid-19 pandemic — and has been described by some as a green counter to China’s Belt and Road Initiative.
Alongside this, the G7 leaders put forward ambitious targets for climate action. One of these targets saw a commitment to long-term strategies to net-zero greenhouse emissions by 2050 as soon as possible, “making utmost efforts to do so by COP26 (the UN Climate Change Conference COP26 in Glasgow in November).”
They also committed to set net-zero targets for energy generation in the 2030s and end direct government support for new thermal coal generation capacity without co-located carbon capture and storage technologies by the end of this year.
All other inefficient fossil fuel subsidies will be phased out by 2025. There was also a commitment made to stop direct funding for coal-fired power stations in OECD nations by the end of this year.
Other commitments made during the G7 that will impact the sustainable finance sector include the mandating of climate disclosures; a commitment to “intensify efforts in enhancing the offer of more sustainable transport modes” including encouraging the phase-out of traditional passenger vehicles in favour of electric vehicles by 2040; and a goal to jointly mobilise US$100 billion per year from public and private sources through to 2025 for developing countries.
These sweeping changes will have wide-ranging implications for governments, business, innovation, and financing.
The final leaders’ communiqué from the G7 states:
“2021 should be a turning point for our planet as we commit to a green transition” and accelerate efforts to cut greenhouse gas emissions, and “we acknowledge our duty to safeguard the planet for future generations” — although some have criticised the G7 for not being more ambitious in financial commitments to developing countries and for not being detailed in the plans to promote a green industrial revolution.
Threats to nature and biodiversity taking centre stage
In 2019, the UK was the first major government to commission a review into the economics of declining biodiversity.
The final report, the 600-page Dasgupta review, was released this year, and clearly links economic success to biodiversity.
It notes that our economies, livelihoods and wellbeing all depend on nature, and considers nature as an asset in the same way as produced capital (roads, buildings and factories) and human health (health, knowledge and skills) are assets:
“We rely on nature to provide us with food, water and shelter; regulate our climate and disease; maintain nutrient cycles and oxygen production; and provide us with spiritual fulfilment and opportunities for recreation and recuperation, which can enhance our health and wellbeing.
“We also use the planet as a sink for our waste products, such as carbon dioxide, plastics and other forms of waste, including pollution.”
The World Economic Forum estimates that $US44 trillion of economic value generation representing more than half of world GDP is moderately or highly dependent on nature. Yet the world’s biodiversity is declining faster than it has at any other time in human history, with the current rate of extinction tens to hundreds of times higher than the average over the past 10 million years — and accelerating.
We can expect to hear more about this and see it impact business decision making. The UK government has published an amendment to its Environmental Bill, requiring new “nationally significant” infrastructure projects — including for transport and energy — to provide a net gain in biodiversity and habitats for wildlife.
Protecting and enhancing nature will need concerted, coordinated action and will be major topics at this year’s upcoming COP15 (UN convention on biological diversity) in China and COP26 (UN climate change conference) in Glasgow.
“This year is critical in determining whether we can stop and reverse the concerning trend of fast-declining biodiversity,” says UK Prime Minister Boris Johnson.
“As co-host of COP26 and president of this year’s G7, we are going to make sure the natural world stays right at the top of the global agenda,” he said. “And we will be leading by example here at home as we build back greener from the pandemic.”
New Zealand Institute of International Affairs 2021: Prime Minister Jacinda Ardern interview (video)
New Zealand Institute of International Affairs 2021 conference opening (video)
Opening of the New Zealand Institute of International Affairs 2021 conference, ‘Standing in the Future: New Zealand and the Indo-Pacific region’. Co-hosts Tim McCready and Ziena Jalil.
Agribusiness Report: Accelerating agri trends providing opportunities for NZ
Agribusiness was the shining star for the New Zealand economy last year. Its status as an essential industry meant it was able to continue during lockdowns and provide food to an uncertain world.
But a year on, the world remains turbulent. While we can expect to see markets slowly return to a resemblance of normality as the vaccine rollout continues and lockdown restrictions are reduced, global megatrends impacting the agriculture industry will continue to shape the future of agribusiness.
Need for a cohesive national strategy on sustainability
Covid-19 brought a discussion around sustainable and safe food systems to the fore, with the boosted emphasis on climate change, carbon offsetting and ESG (environmental, social, and governance) credentials all having an impact on the behaviour of consumers.
They are looking for sustainable business models that consider all aspects of the production process — including the impact on natural resources.
Some developments on this were made last month, with the Climate Change Commission releasing its final report: Ināia tonu nei: a low emissions future for Aotearoa. It lays out a roadmap for New Zealand to meet its greenhouse gas reduction obligations by 2050, and calls for immediate action by government, local government, individuals and businesses.
For agriculture, the Commission says New Zealand needs to reduce its livestock numbers by 13.6 per cent by 2030. It predicts that while New Zealand will still produce roughly the same amount of milk and meat, it will do so with fewer animals, and expects some farms to convert from livestock agriculture to horticulture.
It says low-methane sheep will play an important role (and help cut methane 10 per cent by 2030), along with a reduction in the use of fertiliser, and new technologies will need to come on board, such as vaccines that can help reduce emissions from livestock.
Transparency into provenance and supply chains
As part of making more conscious sustainable choices, consumers in some of our major trading markets are demanding detail and transparency on provenance and supply chains of food, to make informed decisions about what they eat. In some cases, this detail is sought down to individual farms and farmers.
A discussion paper on the future of food and the primary sector by University of Auckland thinktank Koi Tū: The Centre for Informed Futures, headed by Sir Peter Gluckman, notes that this trend is one New Zealand can approach with some confidence. We have high social and environmental values, and our primary sector produces quality, safe animal protein with a low carbon footprint relative to our competitors.
But while we have a favourable global profile, Koi Tū says that in order to sustain it for our high-value agricultural exports we must develop a cohesive national strategy that is connected to quality assurance:
“Our national product branding needs to be refreshed and not just seen as a slogan. It needs to be linked to measurable progress on key indicators of value to consumers. These are likely to be origin and environmentally linked.”
The new coal?
Although it may seem extreme, the growing awareness from consumers of the environmental impact of the food they eat means that some are predicting beef to become “the new coal”.
Alternative protein has reached a tipping point where it is becoming mainstream, with plant-based options such as Beyond Meat and the Impossible Burger increasingly common on restaurant menus and in supermarkets. Last year around 13 million metric tonnes of alternative proteins were consumed globally — including those from plant-based ingredients, cultured meat products, and alternative sources such as insects. This represents around 2 per cent of the animal protein market.
Boston Consulting Group (BCG) believes by 2035 — when alternative proteins reach full parity in taste, texture, and price with conventional animal proteins — 11 per cent of all the meat, seafood, eggs, and dairy eaten around the globe is very likely to be alternative.
This could save as much carbon dioxide equivalent as Japan emits in a year, conserve enough water to supply London for 40 years, and promote biodiversity and food security.
In late 2020, Singapore gave the world’s first regulatory approval for meat that doesn’t come from slaughtered animals. Eat Just’s chicken meat is grown from animal muscle cells in a lab, and the company says this “breakthrough for the global food industry” is one it expects other countries to follow.
New Zealand innovators are working to meet this growing demand for alternative protein. Auckland-based Sunfed Meats recently launched its Bull Free Beef product made from vegetables and cocoa butter, alongside its range of other plant protein “meat analogues” including Chicken Free Chicken and Boar Free Bacon.
FoodHQ, which represents NZ’s food innovation organisations, said in a recent report that emerging proteins are a diversification opportunity that could complement New Zealand’s traditional animal-based protein sectors.
“While our dairy products, meat, wine, apples and kiwifruit will underpin NZ’s food exports for many years to come, we must explore the opportunities to continue adding diversity to our food product offering in order to meet global demand,” says FoodHQ chief executive Abby Thompson.
Tech to boost productivity and reduce emissions
Sensors, robotics, big data and artificial intelligence are other technologies shaping the future of food production and farming.
They all contribute to what is known as precision agriculture, which was already becoming mainstream before the pandemic, but has in the past year demonstrated its importance in creating resilient farming systems.
A local example that integrates several of the above-mentioned technologies is Halter — a company developing a smart collar for fence-free animal management. Last month, Halter secured $32 million in a Series B round led by Australian VC firm Blackbird Ventures (supported by current shareholders including Rocket Lab’s Peter Beck).
The collars, loaded with Bluetooth, GPS and solar panels, allows farmers to virtually herd their stock from anywhere by using an app on their smartphone. Sound and vibration help direct cows, and the collar can also monitor the wellbeing of the animals by detecting unusual movement which might indicate if it is lame or on heat.
The technology works well with NZ’s farming system, as well as other regions that put an emphasis on free-range, pasture-based farming such as Europe and South America.
As new technologies like Halter emerge and farms become better connected to digital infrastructure, the use of precision agriculture and other technologies in agriculture will dramatically accelerate.
These technologies will play a critical role in helping the industry operate with more resilience, increase food security, boost productivity and reduce emissions in farming systems. All of these are integral aspects of the megatrends shaping a sector that is so important to New Zealand’s economy now and into the future.
As New Zealand starts its journey to open to the rest of the world world, it was interesting to reflect on technologies being implemented globally that could play a part in NZ’s response:
🎤 The increased use of micro-influencers, particularly in the United States, to reach out to small pockets of communities that are vaccine-hesitant and allay concerns.
📌Wristbands (Singapore, South Korea, Hong Kong) and geotagged facial recognition (Western Australia) for ensuring home quarantine.
📱 Linking the Covid tracer app to vaccine status so that entry requirements can be varied based on risk and are validated when you scan into a venue (such as in Singapore, which requires double vaccination to enter restaurants, but a lesser requirement for office spaces).