Looking back on APEC CEO Summit 2021

In a discussion moderated by Brad Smith, President of Microsoft, German Chancellor Angela Merkel and New Zealand Prime Minister Jacinda Ardern discussed the state of the world post COVID-19.

Their conversation focused on the importance of socialising public health information, building transparency between leaders and citizens, driving pragmatic solutions for a carbon neutral future and fostering ethical interconnectivity, and multilateralism across economies.

What was said:

Merkel

• “Year after year, the distance between scientific knowledge and our actions became bigger.”
• “The hierarchies we have come to know in our societies before the explosion of digitisation no longer exist.”
• “This is a contribution towards allowing our world to grow a bit closer together.”

Ardern

• “Socialise the problem and then you’ll see the solutions generated.”
• “Each of us have something to share and impart or to learn from someone else.”
• “You will never hear [New Zealand] say that our contribution should be less than anyone else’s… No one can fall back [on] excuses.”

Why it matters: Economies and their leaders must act quickly to make public health data widely available to the public, and continue to reiterate the vital role that each person can play in solutions.

This principle should apply beyond health issues to matters like climate change, to shape the public’s understanding of the sense of urgency and immediate action required.

The bottom line: As global economies continue to confront current and emerging challenges, the conversation between Merkel and Ardern shows how economies can adapt, collaborate, and learn from one another.

2. Edelman explores the evolving trust landscape

Edelman President and CEO Richard Edelman provided valuable insights drawn from the 2021 Edelman Trust Barometer, revealing how the spread of misinformation, and general mistrust of societal institutions and leaders, have affected APEC economies.

What was said:

• “Belief-driven buying is a new phenomenon — brand democracy. In other words, we find that 62% say, ‘I will switch, choose, boycott a brand’ — based on its stance on societal issues.”
• “Employees are the most important stakeholders for the first time. Historically, this has been investors, clients, and customers. Now, it’s employees.”
• “Silence is not an option. CEOs, you have to speak up. You have to represent the best of the world.”

Why it matters: As trust in government and the media erodes, the public is turning to businesses and executives to guide their decision-making.

The bottom line: Global businesses and leaders face more pressure to act ethically and take a stand on societal issues. They must now be stewards of social progress and trust. Edelman encouraged other CEOs and business leaders to let go of a top-down leadership style; solve for sustainability; take an active, out-front leadership role; and foster positive employee and employer relationships.

3. AirAsia CEO: ‘All of us have to play a part’

Entrepreneur and AirAsia founder and CEO Tony Fernandes spoke with CGTN’s Tian Wei, and addressed the major challenges facing the airline industry as companies grapple with the need to balance profit, sustainability, and the COVID-19 recovery.

What was said:

• “One of the most important things we can do, certainly in Asia, and certainly for the people flying with us, is [climate change] education.”
• “It is not one person, it’s all of us that has to play a part. Private industry can’t do it by itself.”
• “Sustainability is not just about climate. It’s about sustainability of business, sustainability of [the] environment — on the ground — and, you know, sustainability of towns.”

Why it matters: The competitive landscape for airlines has drastically changed due to the pandemic. Governments and private enterprises need to work together to help the region’s “aviation ecosystem” recover in a much more sustainable way, and tackle broader environmental and social challenges.

The bottom line: As Fernandes said, “climate change is real and we all have to play a part.”

4. Widodo: ‘We need to narrow the digital divide’

President Joko Widodo of Indonesia highlighted the acceleration of digital transformation amid the pandemic. He specifically called out its key role in accelerating the current economic recovery, including growth in the health tech sector and the increasing user base for Indonesia’s telehealth platform.

What was said:

• “The digital economy and MSMEs must become a new source of growth for an inclusive, resilient, and sustainable economy.”
• “We need to narrow the digital divide, both among APEC economies and domestically.”
• “Digital transformation comes with challenges, risks, [and] disruptions that are new and developing.”

Why it matters: According to Widodo, the pace of Indonesia’s digital acceleration during the COVID-19 crisis approximately equated to “a 10-year pace under non-pandemic circumstances.” The goal is to expand and improve on this momentum and continue to foster digital progress in the region.

The bottom line: Indonesia is eager to cooperate with APEC economies and the global community to drive increased capacity building, develop quality infrastructure, and improve accessibility and affordability.

5. Haidt makes the case for ethical capitalism

Social psychologist Jonathan Haidt outlined stakeholder theory and explained how businesses’ relationships with their employees, customers, and shareholders have shifted over the past few decades.

What was said:

• “Every society has needs for dynamism and decency.”
• “Pressure has ramped up on leaders of all organisations.”

Why it matters: Haidt said stakeholders often feel like they are “walking on eggshells,” due to rising pressures driven by a more vocal Gen Z, coupled with the reach and impact of social media.

The bottom line: Haidt sees “ethical capitalism” as the ultimate solution — one that will tackle market failures by building trusting relationships that balance societal good and economic profit.

6. White House advisor, age 19, reiterates importance of youth voices

American climate justice advocate Jerome Foster II spoke about youth involvement and engagement in policymaking decisions and climate activism.

What was said:

• “Fighting for my future is going to have a long-term positive impact.”
• “When we talk about free markets, we have to make it fair for sustainable energy to compete with fossil fuels.”
• “When we get to the heart of the climate crisis, it really isn’t just a crisis in itself. … It also sets a fire under other crises — like racism, sexism, migration, and immigration — and makes them into catastrophic failures.”

Why it matters: Certain populations and geographies — particularly communities of colour and indigenous communities — are already disproportionately impacted and overexploited by the climate crisis.

Foster, the youngest White House advisor in U.S. history, is part of a growing youth movement determined to limit the damage from climate change by pressing government and business to take immediate action.

The bottom line: Foster advocated for including and mobilising young people in leadership. He believes the diverse perspectives the next generation offers will lead to innovative solutions with respect to the climate crisis and other urgent issues.

7. Thailand looks ahead to role as APEC host for 2022

Prime Minister Gen. Prayut Chan-o-cha of Thailand formally accepted the role of host for APEC 2022; he acknowledged the progress the region has made and the challenges it still faces.

What was said:

• “Now, more than ever, we need to shift our mindset toward pursuing a more balanced and sustainable post-pandemic world for our people and for our planet.”
• “We have the opportunity to change our actions now for a better future.”

Why it matters: The transition to the next APEC host economy brings a new focus, with Thailand outlining three regional priorities:

1. Facilitate trade and investment
2. Restore connectivity
3. Promote inclusive and sustainable growth

The bottom line: A holistic and balanced approach to advance economic, environmental, and social goals will help APEC economies rebound from the pandemic and build back better.