The recent federal election highlighted that many Australians are done with divisive politics and culture wars and simply want to see an action-oriented government that listens to its communities.
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Despite attempts to compound negative stereotypes about First Nations people and downplay the impact of climate change, Australians voted against these harmful tropes, sending a clear message to the re-elected government that both stability and progressive steps away from negative rhetoric are needed to help Australians through our simultaneous cost-of-living, housing, mental health, and gender-based violence crises.
For too long, First Nations communities have had to bear the brunt of these social challenges, lacking funding and initiatives that are led by and centre First Nations people. In recent years, various industries have been caught red-handed not only standing by as these crises unfold but also profiting from trusting customers and partners where possible.
From the big banks taking advantage of First Nations people on low incomes, to telcos signing up Indigenous customers to complex contracts they couldn’t afford. The lack of First Nations governance and rights in corporate Australia has been glaringly obvious and overlooked.
However, businesses expecting this trend to continue will be sorely mistaken. Shareholders, investors, customers, partners and community members are increasingly holding businesses to account in more structured and public ways.
ESG is being overlooked by businesses, but pushed forward by shareholders
Recently, traditional owners confronted executives at Rio Tinto’s annual general meeting in Perth about not giving investors the full story about the environmental and social impacts of its mines. This was not a one-off incident unique to this business, industry or city. This reflects a broader trend that shareholders are driving and is continuously catching businesses by surprise. While many executives and boards are still treating ESG as an afterthought or tick-box exercise, shareholders are wanting answers up-front and proactive approaches to risk mitigation.
This growing pressure is multi-pronged, driven by a range of simultaneous obligations and expectations, including new climate reporting mandates and growing expectations from Millennials and Gen Z on climate action, of whom 79 per cent listed climate change as an important factor in determining their vote at this year’s election.
Embedding First Nations governance and rights
Across corporate Australia, First Nations governance isn’t happening at a basic level, let alone being embedded in businesses in ways that shareholders and customers want. To proactively meet the expectations and demands of shareholders, businesses need to have robust business frameworks, policies, and resources in place to ensure First Nations governance is respected, prioritised and sustained.
I often hear from business leaders that this process can sometimes seem overwhelming, they struggle with determining where to start, and it can feel like they’re boiling the ocean without having the foundations in place. While First Nations governance should not be oversimplified, it should also be recognised that starting with the right intentions is a good start in itself.
Sparking discussions internally about the business goals, context and risk profile, and how they intersect with the organisation’s ESG strategies, is critical to aligning on a tangible way forward on First Nations governance. Once these conversations emerge with some clear opportunities and challenges for the business, ensure governance structures are then implemented with the support of First Nations experts, and that their expertise is compensated fairly.
It is still too common for Indigenous consultants to be unpaid for their knowledge and guidance to businesses, despite their input often having profound impacts on risk mitigation and the organisation’s bottom line.
As we move into the next three years with a re-elected government that has shown respect for the Uluru Statement from the Heart, a prime inister who acknowledged First Nations people in his victory speech, and a society continuing to proactively hold those in power to account, businesses need to be ready for the growing expectations shareholders and consumers will have of their environmental, sustainability, and governance approaches. It will no longer be enough to say that ESG is being taken seriously, unless those statements are backed by long-term, embedded, and First Nations led governance.