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