On November 4, 2022, I had the nice pleasure and honor to ship the second Piet Sanders Lecture sponsored by the Erasmus Faculty of Regulation in Rotterdam, the Netherlands. My gracious hosts had been Dean Harriët Schelhaas, Professor Maarten Verbrugh, Professor Helene Vletter-van Dort, and Mr. Ronald de Groot. The subject of my lecture (which truly turned out simply to be 4 tales as a substitute) was “Will ESG Investing Survive Its Crucible?”
It was additionally an excellent honor that Professor Jan Peter Balkenende, a former three times-elected Dutch Prime Minister, got here to my lecture. We had a short chat afterwards and agreed to remain in contact. Simply earlier than the vacation break I had a really attention-grabbing dialog with him about his background and present pursuits. I requested Mr. Balkenende if he could be keen to do an interview with me after the vacations and he kindly agreed.
Jan Peter Balkenende (2022)
Eccles: Jan Peter, good to talk with you once more. How was your vacation break? Did you do something particular?
Balkenende: It was Christmas time, so I had a good time with my household. We stayed within the Netherlands which was a bit completely different than ordinary as we used to remain in Austria through the Christmas vacation. It additionally gave me a while to learn books and to replicate on an educational mission, by which I’m concerned, about the way forward for capitalism in Europe.
Eccles: Seems like a beautiful vacation break. You definitely have an uncommon background, so let’s begin at first. Please inform me a bit about your loved ones and childhood main as much as college.
Balkenende: I used to be born in 1956 in a village in—what I name—probably the most stunning Province of the Netherlands, Zeeland. My father was a businessman, my mom a instructor, and I’ve two youthful brothers. Each my dad and mom had been energetic on the boards of nationwide and regional organizations, typically within the place of Chair. I’ve discovered quite a bit from them in regards to the artwork of decision-making, the facility of arguments, and the essence of integrity. At a younger age, I used to be taken with politics, but in addition in artwork. I even produced Artwork Nouveau-style drawings. I had a pleasant time at secondary faculty. So all in all, a cheerful youth.
Eccles: Sounds pleased certainly! The place did you go to college and what did you examine?”
Balkenende: Initially I had the concept to develop into a instructor within the German language, however my dad and mom gave me the recommendation to check historical past, as a consequence of my curiosity in society, politics, and historical past. I took their recommendation to coronary heart, and I began learning historical past on the Vrije Universiteit in Amsterdam. I had chosen this college due to its Christian id. I specialised in Financial and Social Historical past with Economics and Political Science as subsidiary topics. My thesis was in regards to the Scientific Administration idea of F.W. Taylor and reactions in Protestant circles within the Netherlands.
Once I had virtually completed my grasp’s diploma in historical past, I made a decision to begin a second examine, Regulation, with a concentrate on Public Regulation. I used to be very energetic as a pupil and have become a member of committees of the college and the Regulation College Council, was an assistant to a Public Regulation professor, energetic in sports activities, and I loved the Metropolis of Amsterdam very a lot with my mates from a pupil group. I had two grasp’s levels and completed my pupil time in 1982. Ten years later, in 1992, I defended my Ph.D. thesis Government Regulation and Civil Society Organizations on the College of Regulation of the Vrije Universiteit. One yr later, in 1993, I grew to become a part-time professor Christian-Social Thought on financial system and society at this college.
With President Barack Obama on the Nuclear Safety Summit, Washington (2010)
Eccles: As you’ve talked about, your preliminary objective was to develop into a instructor. Why did you wish to develop into an educational?
Balkenende: You’re proper, the primary thought was to develop into a instructor however, in actual fact, this concept light away. I grew to become increasingly within the educational mind-set, I believed in multidisciplinary approaches, and I used to be impressed by loads of professors. With that curiosity, I began my first job as a workers member in authorized affairs on the Netherlands’ Universities Council. I had the conviction that the tutorial world ought to lay connections with policymakers, the enterprise world, and society. As an educational you might be—or in any case, you have to be—capable of analyze in the suitable manner. Making the suitable evaluation is at all times key.
Eccles: Couldn’t agree extra in regards to the connections teachers ought to be making however some do, and a few don’t. Only a few teachers enterprise exterior the Ivy partitions to enter politics. How did that occur?
Balkenende: That’s a pleasant query. I personally by no means had a lot to do with these Ivy partitions. Once I was a pupil, I grew to become a member of my political celebration, the Christian Democratic Alliance (CDA), and its youth group. Once I virtually had completed my Regulation examine, I used to be elected member of the Metropolis Council of Amstelveen, a metropolis close to Amsterdam. After my time on the Universities’ Council I grew to become a workers member of the Analysis Institute for the CDA, the assume tank of my celebration. We had been working with examine committees—in my case, for instance, about improvement cooperation, know-how and innovation, financial development, tax coverage, poverty, Europe and NGOs, and many others. These committees had been normally chaired by a professor and with members from politics, the enterprise sector, unions, universities, and high-ranking civil servants. On the assume tank, we developed the idea of a accountable society and its implications for various coverage sectors. I had a captivating time with nice colleagues. We did educational work however at all times in cooperation with others. It additionally meant being crucial of political developments and your individual celebration. For those who would learn my Ph.D. thesis you possibly can see what I imply.
Eccles: Sounds attention-grabbing but when it’s in Dutch I’ll need to take a move! All I find out about Dutch politics is what I’ve discovered from you. Thoughts telling me a bit about your political celebration at the moment?
Balkenende: I used to be invited to develop into a candidate for the parliamentary elections in 1998. In these days we had been in opposition. My celebration belongs to the middle of the political spectrum and emphasizes the stability between the state, market, and society, engaged on the idea of political rules like public justice, duty, solidarity, and stewardship. For a really very long time, Christian Democrats had been a part of Dutch governments. That modified in 1994. We grew to become a celebration in opposition. Within the autumn of 2001, there was a disaster in my celebration and each the celebration chairman and the celebration chief in parliament needed to go away and I needed to take over. Towards all expectations, we received the elections in Could 2002 by a big margin.
Eccles: I’m impressed! However I’ve to additionally confess that being in politics has nearly zero attraction to me. I do respect individuals such as you doing this public service. I additionally need to admit I’m doubtful about a few of the characters who go into this line of labor right here within the U.S. and elsewhere, however that’s a topic for an additional day. You’re the primary Prime Minister I met and doubtless the one one I ever will. What’s that job like?
Balkenende: It is dependent upon which of the features you’re taken with. The place calls for quite a bit from you, working on a regular basis, hardly having time for your loved ones, tackling steady political incidents and on the identical time realizing your coverage targets, many worldwide contacts, assembly individuals, and having many debates. Not daily is good, in fact, however I loved my work, from the start of July 2002 until the top of October 2010. Along with others, you possibly can contribute to the way forward for your nation and that’s an excellent and honorable expertise.
Queen of The Netherlands, Máxima Zorreguieta, receiving a publication of the Dutch Sustainable … [+]
Eccles: Sounds each difficult and fulfilling. What had been your greatest successes?”
Balkenende: Realizing reforms in social safety, well being, and pre-pension amenities, a profitable presidency of the EU within the second half of 2004, strengthening innovation and competitiveness by our Innovation Platform, underlining the important position of values in society, and tackling the monetary disaster in 2008 with different ministers.
Eccles: What had been your greatest failures?
Balkenende: Many issues went properly, however within the cupboard formation in 2006/2007 we must always have made stricter agreements with particularly the Labour Social gathering. This might have prevented later difficulties.
Eccles: One final query in your time as Prime Minister. What are the most important classes you discovered about politics or life normally?
Balkenende: Assume earlier than you act, at all times make the suitable evaluation, keep on with goals and beliefs, outline your targets very clearly, know the place your political boundaries are, keep away from flawed compromises, at all times take criticisms severely however neglect nonsense, put money into teamwork, be relaxed, and always remember the facility of humor.
Eccles: I can consider a lot of politicians within the U.S. on each side of the aisle that would use this recommendation. What did you do after being Prime Minister?”
Balkenende: I obtained the invitation from the President of Erasmus University to develop into a professor of Governance, Establishments and Internationalization, beginning on December 1, 2010, which was a part-time place. The Managing Associate of Ernst & Younger (now EY) Netherlands provided me a place as Associate Company Duty and Worldwide Affairs. The main target of this job was on the best way to combine sustainability into enterprise fashions. So I used to be engaged on new duties for firms, the significance of built-in pondering and built-in reporting, and the which means of Creating Shared Worth of Michael Porter.
And I discovered from you! I nonetheless keep in mind your working paper “The Impact of a Corporate Culture of Sustainability on Corporate Behavior and Performance,” with Ioannis Ioannou and George Serafeim written in 2011. Apart from these actions, I additionally had different positions like Supervisory Board Member of ING, The Netherlands Most cancers Institute, TopsportCommunity. At the moment, I’m Exterior Senior Advisor to EY, Affiliate Associate at Hague Company Affairs, Professor Emeritus at Erasmus College, Chairman of the Noaber Basis, Member of the Membership de Madrid – a corporation of former Heads of Authorities of democratic nations – and Chairman of the Dutch Sustainable Development Coalition. My working life is a mix of academia, politics, and the enterprise sector.
Jan Peter Balkenende on the Erasmus Faculty of Regulation
Eccles: Properly, I’ve to confess we professors are at all times glad to listen to somebody has learn one thing we’ve written! After we talked earlier than the vacations, I used to be very intrigued to study in regards to the Dutch Sustainable Growth Coalition (DSGC). I do know you had a seminal position in beginning that. Please inform me how this took place. Dutch Sustainable Development Coalition
Balkenende: What occurred? After my time as PM, Paul Polman, the then CEO of Unilever, invited me for a gathering, simply to speak about my position at EY and my different actions. We spoke about Dutch firms and the phenomenon that loads of these firms are excessive on the Dow Jones Sustainability Index. Why shouldn’t we be part of forces? What can we study from one another? How can we encourage firms to behave way more sustainably?
After this assembly, we spoke with different CEOs of Dutch firms moreover Unilever: AKZO-NOBEL, DSM, Friesland Campina, Heineken, KLM, Philips, and Shell. The initiative was supported by the Dutch Employers Group VNO-NCW and facilitated by EY and since 2017 by Accenture. We launched our initiative on the World Financial Discussion board in 2012 and since then we have now written studies on Sustainable Development Enterprise Fashions, on the implementation of those orientations inside firms, and on how we as firms can contribute to the SDGs, Local weather Change, and the Round Financial system. We had initiatives on biofuels in transport, along with Moller-Maersk, on plastics, and circularity. We now have organized conferences about these studies, had annual conferences with the Dutch Authorities, and we speak with different firms. We now have been working along with Dutch Embassies in lots of international locations. All info is out there on our web site www.dsgc.nl/en.
Eccles: What’s the DSGC to date?
Balkenende: We lately had a wonderful assembly with the Dutch Authorities, we’re busy with organizing deep dives round key areas, we’re organizing knowledgeable periods of younger professionals, and we initiated a collection of podcasts. There’s nonetheless loads of work to do. We additionally printed an announcement, within the time of Corona, along with 4 different organizations and virtually 400 firms with a transparent message: if the EU and governments wish to stimulate the financial system, it’s key that there should be a detailed reference to the sustainability agenda. DSGC was first specializing in consciousness, at present it’s extra about driving the public-private dialogue and bringing current sustainability ecosystems collectively with the intention to speed up systemic change and integration.
Eccles: Sitting right here in America because the ESG tradition wars rage on, I’ve to say I discover this refreshing and should admit I’m a bit envious. However I discover that it’s primarily eight massive firms. How generalizable do you assume these concepts are?
Balkenende: You’re proper. DSGC is about eight massive firms, however in actual fact, all firms ought to be concerned in embedding sustainability into enterprise fashions. That counts for the larger ones—and lots of of them are very energetic on this regard—and the SMEs. Within the Netherlands, a number of organizations play a key position in informing smaller firms. Sustainability is about essentially altering the mindset and the mainstream.
Eccles: Given the political state of affairs within the U.S., do you assume it could be potential to kind the same group right here?
Balkenende: It is dependent upon the willingness of firms to hitch forces and to be artistic in a sustainable manner. I noticed just a few years in the past a superb “Statement on the Purpose of a Corporation” of the Enterprise Roundtable. Certainly a superb assertion, however it all is dependent upon implementation. Companies have a particularly vital position to play in tackling Local weather Change, realizing circularity, and combating inequality.
Jan Peter Balkenende receiving an honorary doctorate diploma from Hofstra College
Receiving the honorary doctorate from Hofstra College, New York (2011)
Eccles: I see this as a pure experiment. The thesis of the DSGC is that this may allow massive Dutch firms to create a sustainable long-term aggressive benefit. There are people right here within the U.S. who assume it should do precisely the alternative. What’s your view on this?
Balkenende: Let me be very clear. These firms that aren’t keen to alter in such a manner that they serve society as a substitute of solely caring for their very own pursuits would be the losers sooner or later. Society, our planet, and future generations require new orientations. The longer we wait, the upper the value will likely be.
Eccles: You already know I couldn’t agree extra. And you realize I used to be going to ask you this. What does ESG imply to you, and do you assume ESG and Sustainability are the identical factor or various things?”
Balkenende: To me, ESG is of nice significance and a part of the larger sustainability agenda. That agenda entails a shift of mindset, built-in pondering, future orientation, redefining enterprise methods and enterprise fashions, and transparency like Built-in Reporting. ESG will not be an impediment, however a chance. I can suggest the lately printed guide by Rob van Tulder and Eveline van Mil, Principles of Sustainable Business. Frameworks for Corporate Action on the SDGs, which is an attention-grabbing learn in keeping with this matter.
Eccles: I’ll get that guide and skim it. I additionally know you’re a busy man, however thoughts giving me a fast replace on what you’re doing now?
Balkenende: Getting ready numerous speeches, finalizing the publication on the way forward for capitalism in Europe, and sustaining contact with nationwide and worldwide relations, similar to our dialog. It’s a pleasure to have the ability to talk about vital issues like ESG in interviews like these with you, so thanks for having me.
Eccles: Thanks in your time, thanks for all you’ve achieved in your profession, and I look ahead to preserving in contact. Subsequent time I’m on the town how about I deal with you to dinner at NY Basement in Resort New York?
Balkenende: That might be an excellent thought! I loved your Sanders Lecture very a lot and I’m wanting ahead to persevering with our dialog.
