Dentons Rodyk Dialogue: Sustainability and Innovation for a More Resilient Future

The Dentons Rodyk Dialogue 2021 marked the fifth year of partnership between the firm and the Singapore Management University’s (“SMU”) Centre for Commercial Law in Asia (CCLA). This year, the Dialogue was conducted in a hybrid fashion, involving a small group of attendees at a physical venue as well as virtual attendees and speakers. The Dialogue focused on the topic of how sustainability and innovation could be a strategic response to crises, such as those posed by the current ongoing pandemic.

The Dialogue featured distinguished speakers such as the Guest of Honour Ms. Grace Fu Hai Yien, Minister for Sustainability and the Environment, Professor Dave Fernandez from SMU, Mr. Hugh Lim, Executive Director of the Centre for Liveable Cities, Mr. Bart Houlahan, Co-Founder of non-profit organisation B-Lab, and our very own Ms. Ipshita Chaturvedi, Partner at Dentons Rodyk and Co-Head of the firm’s ESG Practice Group. Mr. Gerald Singham, global vice-chair and ASEAN CEO for Dentons Rodyk, was the moderator for the panel discussion. They were joined by over 750 virtual attendees from 25 countries across 4 time zones, who engaged in the discussion on sustainability and innovation.

Innovative Solutions for Building a Sustainable Future

In their opening addresses, Professor Timothy Clark, Provost of SMU and Mr. Singham both touched on the need to collaborate for a common purpose to build a more resilient future for future generations to meet their needs. Mr. Singham pointed out that the pandemic has been a harsh test on our global systems, but that there is now an opportunity for a rise in regulations to encourage a transition to a more sustainable way of living. Further, that this transition needs to be promoted through finance, a change in culture, and crucially, law.

In their concluding remarks, Professor Clark stated that SMU will drive solutions for sustainable living and to tackle the issue of climate change, while Mr. Singham formally launched Dentons Rodyk’s ESG Practice Group – a dedicated practice group to promote sustainability and innovation in legal practice.

Producing Sustainably to Thrive in the Future

Minister Grace Fu started off by explaining that the time has come for private enterprises to embrace ESG practices or risk falling short of their stakeholders’ expectations, which have changed over time. She stated that at this crucial point in time, certain business will fade away and new ones will emerge, with the ability to produce sustainably being a key factor.

Minister Fu warned of increasing levels of warming and sea level precipitation, emphasising that now is the time to act before global temperature rises beyond a point of control. Minister Fu views these challenges as opportunities: one prime example is how Singapore has been solving issues relating to water stress by investing in water technology as well as looking into reducing energy consumption. Minister Fu stated that the public service will lead by example by helping businesses recover from the pandemic and move towards a low carbon future.

Minister Fu shared that there are various government grants that companies may tap on, such as the National Environmental Agency’s Energy Efficiency Fund, the Enterprise Sustainability Programme, and the recently-launched Green Financing Development Initiatives such as the Green and Sustainability-Linked Loans Grant Scheme which will help companies defray costs to be in line with international standards. Through these grants, the government will help businesses seize opportunities in the new green economy.

Sustainability – Measures and Standards

In his address, Professor Dave Fernandez explained that the goal of sustainability measures and standards is to bring academics and practitioners together to focus on sustainable finance. He touched on the importance of not only impact investing, which refers to investing with the proactive intention to generate and measure both social and environmental benefits and a financial return, but also the importance of balancing these out as well.

He shared that academics are searching for a way forward to find a more consistent and complete impact measurements framework in order to better measure the outcome and impact of sustainable investments on all stakeholders, and introduced the audience to potential ways forward through a proposed impact measurement methodology. He concluded by listing some challenges that lie ahead, which include ‘greenwashing’, the difficulties surrounding measuring of emissions, and the need for more transparency for a better ecosystem.

Sustainability and Resilience in a post COVID City

Mr. Hugh Lim explained that pandemic has changed habits, and consequently, the way we think about organising our cities. In an eye-opening presentation, Mr. Lim stated that key considerations when planning for liveable cities include emergency planning for better crisis preparation, innovative use of land and space, and designing buildings to better prevent the spread of disease and to automate systems for energy efficiency.

He also urged urban planners to respond to the new normal by offering more options in building development. For example, in Singapore, planners are exploring how to decentralise and redevelop commercial and residential spaces, by moving employment towards the heartlands and rejuvenating the CBD by promoting mixed-use developments. Older office developments may be considered for an increase in development intensity if they are redeveloped with a mix of uses such as housing or hospitality. Encouraging the redevelopment of old buildings also avoids the hefty carbon footprint generated from creating new developments.

The Purpose of Business in Sustainability

In his presentation, Mr. Bart Houlahan, described how business can be used for good if harnessed appropriately, and that the previous thought culture around businesses existing to provide a return for shareholders has shifted. People are demanding change due to the growing awareness of the existential threat of climate change, growing and accelerating wealth inequality, and the pandemic having marginalized certain segments of the population across the globe.

He shared that businesses need to get more involved to solve problems, and there needs to be a movement of people using business as a force for good, by harnessing the power of the private sector to benefit the public sector. He observed that people are not looking to return to normal; rather, they are looking for a new normal, in which there is an opportunity to reduce inequality, alleviate poverty, restore a healthier environment and build stronger communities.

Sustainability is Mindfulness

Ms. Ipshita Chaturvedi, in her thought-provoking address, explained that sustainability is, to put it simply, mindfulness. This being a concept that many of us have learned growing up, such as not to waste water, food, or other resources, and to reduce, reuse and recycle. The time has now come for this to be translated to companies. She hearteningly added that companies are increasingly open to implementing ESG procedures, and are no longer questioning whether such procedures are required.

As the Co-Head of Dentons Rodyk’s ESG Practice Group, Ms. Chaturvedi explained how lawyers can bring value to the table in sustainable development. Lawyers can help transmit ESG regulation into ESG norms and plans for companies. Lawyers can also help companies avoid and prevent greenwashing by building up board responsibility and reporting standards by asking the right questions. For example, lawyers can advise a shipping company to address marine pollution caused by their activities or advise a cosmetics companies on how they can reduce any negative impact to biodiversity.

In a nutshell, Ms. Chaturvedi explained that lawyers add value by advising how to best integrate ESG regulations and policies, how to report correctly, and what to explain to stakeholders. Further, lawyers will be instrumental in developing this new area of sustainability by bridging the gap between the public and the private sector, and also by bridging the gap between theory and practice.

The Road that Lies Ahead

In a robust and informative panel discussion which was moderated by Mr. Gerald Singham, the panel addressed poignant questions from the audience that were focused on regulations and the path forward.

Minister Fu explained Singapore’s plans to work with other ASEAN nations, recognising that ASEAN is diverse and that there is a need to synergise the attributes of the different ASEAN states to focus on affecting real and meaningful change. With regard to Singapore’s Green Plan, she emphasised that the government is focused on ensuring that the population has food, water and energy security, and is also looking at how to mitigate risks and secure provisions for all segments of the population.

Mr. Hugh Lim highlighted the benefits of going green, that in the last three years, green-marked buildings have saved real dollars for the owners of the buildings. He noted that the time has come for owners and developers to recognise that sustainable buildings are the way forward from both a business and environmental point of view.

Mr. Houlahan emphasised that the next generation is driving the sustainability movement and that governance and regulations will need to change in order to avoid favouring one stakeholder over all others, and to allow for objectives other than the maximization of profits. In this same vein, Professor Fernandez added that stakeholders are demanding a different way of doing things - and importantly that achieving a non-financial goal can become a financial goal if that is what stakeholders demand.

The Dentons Rodyk Dialogue 2021 demonstrated how the public, private and legal sectors can work together to emerge from the pandemic with a new normal focused on sustainable living for future generations to thrive. There is no doubt that there is a growing consensus on the impact that humans have on the climate, and the insightful thoughts and opinions from our speakers has certainly illuminated the path forward as we emerge from an unprecedented global pandemic.

Dentons Rodyk acknowledges and thanks Associates Shivam Ahuja and Nicolette Lee for their contributions to the article.