In September of this year, the Department of Economic Affairs, in collaboration with Catalina Consulting, organized a webinar on the topic “Leveraging Disruptive Technologies to Address ESG (Environmental, Social, and Governance) Issues.” This webinar brought together five representatives from the Canton of Neuchâtel who shared their practical experience in applying ESG criteria as well as the business opportunities they have identified for their companies, namely:

A look at some of the theoretical foundations of ESG criteria, as well as the canton’s stance on the matter, with Giuseppe Saporita, Business Partner at the Department of Economic Affairs and co-organizer of the online seminar.

Could you explain in a few words what the three letters ESG stand for?

Environmental, Social, and Governance (ESG) criteria are the broad categories that encompass a company’s activities and that may have an impact on society and/or the environment. These are the three main dimensions used to measure the sustainability and ethical impact of an investment in the economy or in society. Environmental criteria take into account how a company’s operations directly or indirectly impact the environment. Social criteria examine how a company manages its relationships with employees, suppliers, customers, and the communities where it operates. Governance pertains to corporate leadership, executive compensation, and shareholder rights.

Why do we keep hearing about ESG criteria these days?

For several years now, there has been talk ofthe 2030 Agenda at the federal and cantonal levels. The issue of sustainability is gaining increasing prominence, both in Switzerland and abroad. Several European studies show that investors and companies are becoming increasingly attuned to this issue.
For the Department of Economic Affairs, it is becoming essential to raise awareness among Neuchâtel’s business community and to play its role as a facilitator in an economic transition whose exact nature is not yet fully known.

Why did you choose to hold this first webinar with the United Kingdom?

The Canton of Neuchâtel is already in close contact with this country, which has been proactive on these issues for several years. We have observed that companies in the canton are—whether intentionally or not—already very active in meeting these criteria. In collaboration with a consulting firm specializing in this field, we sought to promote the canton’s image from a new perspective to British companies that are sensitive to these issues and are considering establishing a presence in Switzerland. The goal was to demonstrate that in very distinct sectors—banking, education, new technologies, artificial intelligence, and textiles— we have companies that are already able to position themselves and succeed in business while adhering to one or more ESG criteria. In other words, innovation can go hand in hand with ESG. ESG criteria are not an obstacle to entrepreneurial success—quite the contrary.

Is the canton's goal to attract more companies that meet ESG criteria?

The Department of Economic Affairs is responsible for implementing the Economic Development Support Strategy (LADE). Its goal is topromote the canton’s sustainable economic development by strengthening the diversity of its economic base and stimulating wealth creation, job creation, and innovation. Naturally, we therefore wish to raise awareness of this issue among local businesses. They could incorporate these criteria into their long-term investment and development policies.
Today, our canton offers all the expertise a business needs to grow, whether in terms of subcontractors, suppliers, research institutes, or technology transfer.
Thanks to the geographic proximity of various economic players in automation and microtechnology (mechanical and electronic), as well as unique expertise in miniaturization and low power consumption, I believe we have a head start in positioning ourselves toward a more sustainable and circular economy.

You can watch the webinar below and read the related article.