Business and the Sustainable Development Goals SNS Seminar Stockholm, Oct 2 2015 Business and the SDGs 1. What are the SDGs and why do they matter? 2. What role can business play in supporting their achievement? 3. How can governments, investors and civil society help to scale-up business engagement and impact? Business and Sustainable Development: Key Milestones From STOCKHOLM (1972) to RIO (1992) to ADDIS (2015) EVOLVING BUSINESS ENGAGEMENT: The World Business Council for Sustainable Development (1990); the UN Global Compact (2000)… I. THE GLOBAL UN Secretary-General Kofi Annan to assembled business leaders in Davos, January 1999: “If we cannot make globalization work for everyone, in the end it will work for none. Therefore, I call on you – individually through your firms, and collectively through your business associations – to embrace, support and enact a set of core values in the areas of human rights, labor standards, and environmental practices.” Business and Sustainable Development: Key Milestones From STOCKHOLM (1972) to ADDIS (2015) via RIO (1992) EVOLVING BUSINESS ENGAGEMENT: The World Business Council for Sustainable Development (1990); the UN Global Compact (2000); the UN Guiding Principles on Business and Human Rights (2011); and the Global Business Alliance for Post-2015 CHANGING EXPECTATIONS ON THE ROLE OF BUSINESS: Two decades of privatization, deregulation globalization; technological innovation; civil society activism; investor engagement; millennial employees; and public finance constraints… The Sustainable Development Goals (SDGs) 1) The SDGs are UNIVERSAL – and donor countries will have a dual role and particularly important leadership responsibilities in their implementation 2) The SDGs are far more comprehensive and ambitious than the MDGs …the development of indicators will be essential but challenging 3) The FINANCING FOR DEVELOPMENT process was vital for success… ADDIS ABABA ACTION AGENDA 1. Domestic public resources 2. Domestic and international private business and finance 3. International development cooperation 4. International trade as an engine for development 5. Debt and debt sustainability 6. Addressing systemic issues 7. Science, technology, innovation and capacity building 4) Business and civil society have been, and will be, actively engaged in the development and implementation of the SDGs Business and the SDGs 1. What are the SDGs and why do they matter? 2. What role can business play in supporting their achievement? 3. What role can governments, investors and civil society play to scale-up business engagement and impact? Three core pillars of business action ACT RESPONSIBLY Comply with rules and standards; proactively identify and mitigate negative impacts The UN Guiding Principles on Business and Human Rights The State Duty to Protect Human Rights The Corporate Responsibility to Respect Human Rights - Policy commitment; business integration; duediligence; and communication Access to Remedy Three core pillars of business action ACT RESPONSIBLY Comply with rules and standards; proactively identify and mitigate negative impacts FIND OPPORTUNITY Create and scale-up new products, services, technologies, processes and business models Three core pillars of business action ACT RESPONSIBLY Comply with rules and standards; proactively identify and mitigate negative impacts FIND OPPORTUNITY Create and scale-up new products, services, technologies, processes and business models BE ACCOUNTABLE Set goals & targets; measure & transparently report results Leading companies are already reporting on many of the SDGs through Global Reporting Initiative; UNGC; sector-based voluntary initiatives… an SDG Industry Matrix and other tools are being developed Key components of ‘business leadership’ 1) CORE BUSINESS ACTIVITIES and SUPPLY CHAINS Implement responsible business practices and standards (human rights, safety, labour, diversity, environment, anti-corruption) – protect value Innovate to directly solve societal problems through market-based solutions (new products and services; more inclusive business models, ecoinnovation etc) - create value 2) PHILANTHROPY/ COMMUNITIES Improve impact of corporate philanthropy, social investment, employee volunteering, community engagement 3) PUBLIC POLICY and SYSTEMIC IMPACT (system-level industry-wide, national or global) Engage responsibly in policy dialogue; advocacy; institution building; jointly developing norms and setting rules Source: Adapted from Nelson, Jane. Business as Partners in Development. IBLF, World Bank and UNDP, 1996. VOLUNTARY ACTION by individual companies is necessary but not nearly sufficient Business and the SDGs 1. What are the SDGs and why do they matter? 2. What role can business play in supporting their achievement? 3. What role can governments, investors and civil society play to scale-up business engagement and impact? INVESTORS CIVIL SOCIETY INTERNAL STAKEHOLDERS - Boards of Directors Senior Executives Employees Trade unions CAPITAL MARKET INSTITUTIONS The company and its ecosystem COLLECTIVE INDUSTRY ACTION GOVERNMENTS VALUE CHAIN STAKEHOLDERS - Joint venture partners - Suppliers - Distributors - Retailers - Customers - Consumers MULTI-SECTOR PARTNERSHIP PLATFORMS Opportunities for business-government cooperation 1. Use catalytic financing, challenge funds or blended finance models to de-risk and increase the level of private investment and/or innovation for development – focused on priority sectors and locations 2. Spread responsible business standards and practices 3. Invest in better data collection, data sharing and analysis 4. Partner to build local capabilities in developing countries – in government; open media; training and research institutes; and local business and farmers associations 5. Support domestic multi-stakeholder processes to develop and monitor national action plans PERSONAL LEADERSHIP, VALUES and CORPORATE CULTURE really matter… VALUES Behaving with integrity, having a vision for good, treating all stakeholders with respect VALUE PROTECTION VALUE CREATION Improving risk management and accountability Creating shared value and opportunity
© Copyright 2024