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A business lens on the Sustainable Development Goals
- 1. A business lens on the Sustainable Development Goals Filippo Veglio Stockholm, 27 November 2018
- 2. The World Business Council for Sustainable Development MISSION: To accelerate the transition to a sustainable world by making moresustainable business more successful VISION: Tocreate a world where more than nine billion people are all living well and within the limits of ourplanet by2050
- 3. Current model of economic development has left a legacy of global burdens Mounting business cost and a barrier to growth Source: Business & Sustainable Development Commission (2017)
- 4. But also significant socio- economic progress Dramatic reduction in the number of poor in East Asia and Pacific Source: Atlas of Sustainable Development Goals, World Bank (2017)
- 5. Turbulent Teens Business as usual is not viable – for the environment, for society, or for business How to put a fragmented world on a sustainable path?
- 6. Only 9% of total material used by society is currently recycled
- 7. 700 million in extreme poverty 20 million in forced labor 800 million people are undernourished 150 million cases of child labor Social Challenges
- 8. The Food System 60% of people in extreme poverty work in agriculture 25% of global land is highly degraded 800M people are undernourished; 2 billion are overweight 1/3 of food produced is lost or wasted
- 9. The Sustainable Development Goals Provide businesses with a framework to translate global needs and ambitions into business solutions Unlock opportunities Manage risks Consolidate license to operate
- 11. SDGs will not be delivered without business Technology & Innovation Employment Finance The role of business in achieving the SDGs
- 12. Key implications for business
- 14. ESG Facilities in 2018 New Markets Enhanced Risk Management Renewed Trust Cost of Capital Capturing opportunities 2
- 16. The need for collaboration 4 At SDG Target Level At Sector Level At Systemic Level
- 17. Demonstrating how sustainability strategies and products are aligned with and contribute to the SDGs SDGs used as a framework to identify opportunities for innovation and to better manage material risks SDG COMMUNICATIONSTRATEGIC INTEGRATION Challenges New markets Access to Capital License to Operate Risk Management Key elements of business – SDG alignment 1) Awareness & understanding 2) Strategic integration 3) Defining priorities 4) Targets & indicators 5) Reporting & disclosure
- 18. INDIVIDUAL-LEVEL COMPANY-LEVEL SECTOR-LEVEL POLICY-LEVEL • Come together • Roadmaps • Calls to action • Stay informed • Spread the word • Measure externalities • Set goals • Business solutions • Communicate • Advocate Action points for company executives
- 19. Nordic example of CEO leadership • Business: key partner for sustainable development • Collective action ambition backed by commitment to aligning business strategies with the SDGs • Call on governments to reward and support those companies who deliver • Platform for the Nordic Prime Ministers to engage directly with the CEOs
- 20. https://sdghub.com/goodlifegoals/ A tool to spread the word on personal actions
- 21. x Title with 2 lines of text Image background x Filippo Veglio veglio@wbcsd.org www.wbcsd.org www.sdghub.com
Notas do Editor
- Sweco, IKEA and Skanska to highlight
- $1.90/day baseline This interactive treemap below illustrates how the number and distribution of people living in extreme poverty has changed between 1990 and 2013. The reduction in the number of poor in East Asia and Pacific is dramatic Despite the decline in the Sub-Saharan Africa’s extreme poverty rate to 41 percent in 2013, the region’s population growth means that 389 million people lived on less than $1.90/day in 2013 - 113 million more than in 1990
- High human development and low ecological impact BAU is not possible anymore – 2.3 planet Earths needed by 2050 if we continue on this path This decade requires a major transformation in how companies are managed and the world is governed Signals of systemic crisis are there Risk of a fragmented world – unable to agree on, or manage, change A time of energy and dynamism around new visions Sense of urgency At the same time: fear, uncertainty, doubt Embedded in this: trust crisis – trust in government, in business Leadership needed
- Apart from looking at how resource groups satisfy societal needs, the metabolism also presents insights into what happens to resources after use End-of-use. Of the total material inputs of 92.8 billion tonnes, 36.0 billion tonnes were put into long-term stock in the form of capital equipment, buildings, and suchlike. From that same stock, 14.5 billion tonnes of materials were removed, leaving a net addition of 21.5 billion tonnes per year.32 Of the short-lived products that were consumed by the global economy, the majority, 51.9 billion tonnes, remains unaccounted for and is assumed dispersed into the environment as emissions and unrecoverable wastes. In total, 19.4 billion tonnes of materials are collected as waste. The majority of this waste, 13 billion tonnes, comes from short-lived products,33 combined with the 14.5 billion tonnes is waste coming out of long-term stock,34 for example as demolition material, or metal from old cars. Of the 19.4 billion tonnes of materials classified as waste, only 8.4 billion tonnes or 9.1% of total material use of society is cycled, with the remainder incinerated, landfilled, or dispersed into the environment.
- Global efforts towards the realization of this vision have been bolstered by the launch the UN sustainable development goals which set out an ambitious and universal framework of 17 goals to tackle the world’s most pressing social, economic and environmental challenges in the lead up to 2030. Business will have a critical role to play in the realization of this agenda, and can leverage the SDGs as a framework to translate global needs and ambitions into business solutions. Companies that are able to embrace this agenda and develop a clear understanding of their interactions with the SDGs will ultimately be better placed to unlock market opportunities, consolidate an enduring license to operate and manage risks on the path to 2030. “Unprecedented societal transition” laid out by the IPPC report If you don't know where you are going, any road will get you there. Lewis Carroll COP24 policy asks If we want to avoid the most devastating impacts of climate change, we have no choice: we must limit global warming to well-below 2°C, with 1.5°C as the new North Star. There’s no room for complacency. If we don’t act now, the world will surpass 3°C as early as 2100. Proven technologies and business models exist that will help us meet the Paris Agreement, but deployment is still too slow. We must accelerate implementation now. The question is no longer “can we change” the question is “how fast can we change?” It’s time to build the political will and the business drive to reduce greenhouse gas emissions fast. COP24 is a critical moment for governments to set the frameworks that can help accelerate. Business is taking action and is ready to do more. Here’s how policymakers at COP24 can help us get there: Raised ambition We need countries to raise ambition in their nationally determined contributions (NDCs). Policymakers must agree to ramp up their NDCs by 2020 and commit to doing so by the end of this year. This will help us reach net-zero emissions as early as possible. Policymakers should recognize the role of public-private partnerships in setting aggressive climate strategies in line with the Paris Agreement and Sustainable Development Goals. We need continued collaborative input from business, academia and civil society to enhance ambition and ambition, which means extending the Talanoa Dialogue beyond 2018. Clear rules We need a comprehensive set of rules and guidelines for implementing and strengthening the integrity of the Paris Agreement. This should include a global stock take for measuring collective progress and a clear process to deliver more ambitious NDCs every five years. We need clarity on the ambition and impacts of climate commitments to provide certainty and confidence to investors. Strong enablers We need effective carbon pricing policies that maintain competitiveness, create jobs, encourage innovation, deliver meaningful emissions reductions, enable investment, create value, ensure environmental integrity and minimize social costs. We need ambitious adaptation and resilience efforts that are transparent, easily accessible and comparable. We need a just transition to ensure that no one is left behind, to create jobs that are green and decent and to ensure that communities are thriving and resilient. Here’s what business brings to the table: Since COP21, over 800 companies with USD $16.9 trillion in market capital have made over 1300 commitments to bold climate action. Companies are delivering on these commitments and are ready to do more. Through the Low Carbon Technology Partnerships initiative (LCTPi), hundreds of businesses are implementing their climate commitments on the ground. Track their progress here.
- SDGs are not a business as usual agenda. SDGs are Transformational (beyond incrementalism) Ambitious Interconnected Universal
- When considering the SDGs from a business perspective first of all we need to understand the role of business in all this. Although it will be governments that will ultimately have to deliver the SDGs, this agenda simply will not be realized without proactive engagement by business. Business has a critical role to play as: an engine of employment and economic growth; a driver of technology and innovation; and a source of finance. The SDGs represent an ambitious and transformative agenda. Businesses that take an active role in leading this transformation and position the SDGs as a strategic lens at the core of their operations will ultimately be better placed to unlock market opportunities, manage emerging risks, and consolidate an enduring license to operate on the road to 2030. It is time for us all to consider what we need to do to significantly accelerate the pace and scale of action – as individuals, institutions and across sectors – to help deliver the business solutions to realize this critical global roadmap. Business case elements Driving competitive advantage through stakeholder engagement Improving risk management Fostering innovation Improving financial performance Building customer loyalty Attracting and engaging employees Adapted from The Harvard Business Review: The Comprehensive Business Case for Sustainability - https://hbr.org/2016/10/the-comprehensive-business-case-for-sustainability
- While the SDGs need business, this is also an agenda that should shape the thinking of companies. At WBCSD we have done a lot of work around helping business to understand the key implications of the SDGs, underlining why and how they should engage with this agenda. In our CEO Guide to the SDGs we have boiled this down to 4 key pillars which I’ll expand upon now.
- First of all its important for business to understand the risks of failing to engage with this agenda. This risk can be operational – the world is facing a mounting set of environmental and social burdens which pose significant barriers to long-term growth. Business cannot survive in societies that fail and so has a vested interest in addressing these challenges Failing to engage exposes companies to significant reputation and regulatory risks, as the issues at the heart of the SDGs move up government and public agendas (e.g. marine plastic). And finally those companies that ignore this agenda risk falling foul of market disruption as their competitors take the lead with inclusive and sustainable products and services.
- On the flip side however the SDGs can also be leveraged by business to help capture opportunities. The Business and Sustainable Development Commission’s Better Business Better World report highlighted at least 12 trillion dollars of market opportunities per year that could be opened up per year by 2030 if the SDGs are achieved. Additionally companies that are able to integrate this agenda strategically stand to enhance their capacity for managing risks and adaptation and will be able to address issues around public trust and secure an enduring license to operate. Finally we’re also starting to see a significant new trend of strong ESG performance enabling cheaper access to capital – with these three brands all ground-breaking ESG facilities in 2038.
- Another key component to factor in when considering the SDGs is their implications on governance and transparency: The work of the TCFD symbolizes how we are moving into a new era of disclosure with companies’ approach to ESG topics such as climate becoming increasingly material to investors. There are also mounting expectations around how companies report on their specific interactions with the SDGs. Guidelines produced by GRI and UNGC lay out best practice – what to do and what not to do. There is also mounting scrutiny of this reporting and emergence of efforts to rank company on their ESG performance. The World Benchmarking Alliance being launched on 24 September is the most ambitions undertaking of this kind to date – will be producing a series of publicly available benchmarks spanning the breath of the SDG Goals.
- Finally, it is important to understand that the ambitions of the SDGs call for business to embark upon pioneering new types of collaboration. This agenda will not be achieved by any actor in isolation. This includes: Multi-stakeholder initiatives targeting impact at SDG target level. Sector level collaboration to explore how whole sectors can maximize their potential to contribute to the SGDs. An example is the leadership effort by WBCSD’s chemical sector to establish an SDG Roadmap for the sector. But ultimately the SDGs require a multitude of sectors to come together to bring about systemic change – there is therefore also a need for initiatives such as the Food & Land Use Coalition which bring together the whole food system.
- Seeing proliferation of initiatives that either help business and guide business through these processes or look to pressure them into taking action A growing audience on the comms side.
- How to make SDGS Relevant Easily understood Accessible With citizens, customers, colleagues What are the personal actions that every one of us can take to support the SDGs? – your personal contribution 5 asks per SDGs – 1 learning, 3 behavior challenge, 1 demand for change VALUE Engage with customers They help business understand how the lives of their customers link to the SDGs. This understanding can then help brands to more effectively engage with customers around the behaviors that are linked to their products and services. Engaging with Staff They provide companies with a simple tool that they can use to enhance awareness of the SDGs among their employees. Product and Service Innovation They can be leveraged to channel new product development to support more sustainable lifestyles.
- Criticism of private sector action SDGs have not substantially changed business approach to sustainability No increase in ambition of sustainability strategies through SDG engagement No consistent approach to determining priority SDGs Few companies marrying human rights commitments to SDG ambitions SDG reporting is inconsistent and limited Opportunity for business to view sustainability challenges as strategic drivers for business resilience, innovation, and growth The race towards more inclusive, low-carbon and resource efficient companies & societies is on – there will be winners and losers Difficult trade-offs and transformations – requires a basis of trust and cooperation between governments, business and civil society to accelerate change Business will need to continue doing what it does best: adapt, innovate, collaborate, and act