corporate sustainability (prof. dr. aung tun thet)

CORPORATE SUSTAINABILITY

Prof. Dr.Aung Tun Thet

Based on Mr. Georg Kell Executive Director of UN Global Compact paper

Corporate Sustainability Movement• Growing in every region of the world• Companies place responsible business

practices and sustainability objectives at heart of business strategy

Corporate Sustainability Movement• Business enterprises involved in finding

solutions to low living standards and environmental degradation

Corporate Sustainability Movement• Companies tackling world’s most pressing

problems through core businesses• Realising benefits and opportunities

Historic Opportunity

• Millennium Development Goals (MDGs) expire in 2015

• New global sustainable development framework under construction

• Define priorities and approaches for next era

• UN Member States working on set of potential Sustainable Development Goals (SDGs) to be adopted in 2015

Post-2015 Development Agenda• International business community

to elevate missions and strategies to align with post-2015 vision

• Producing outcomes that benefit global society and economy – and drive business success

UN Global Compact

• Bring private sector perspectives and action

• Creating opportunity to scale up and align business contributions to UN priorities

UN Global Compact

• Overlap between public and private interest in sustainable development increasingly clear

• Development of post-2015 agenda require unprecedented level of interplay between business, governments, civil society and other key stakeholders 

Process

• Began in Rio de Janeiro in June 2012 at the UN Conference on Sustainable Development (Rio+20)

• Agreed to negotiate set of SDGs, synchronized with Post-2015 Development Agenda proposed by UN Secretary-General

Rio+20 Corporate Sustainability Forum• Organised by UN Global Compact and key

partners• 3,000 representatives from business,

investment community, UN, civil society and academia

“Innovation and Collaboration for the Future We Want”

• Business executives desire to work with governments in setting goals and targets

• SDGs - driving force to move sustainability ahead

SUSTAINABLE BUSINESS

UN Global Compact

• Input and perspectives from private sector on post-2015 agenda

• 1,000 companies committed to responsibility and sustainability

SDGs proposed by Business

Inclusive Growth

Prosperity & Equity

Human Needs & Capacities

Education Women’s Empowerment &Gender Equality

Health

Resource Triad Food & Agriculture

Water &Sanitation

Energy & Climate Change

Enabling Environment

Peace & Security

Infrastructure & Technology

Good Governance &Human Rights

Convergence

• Priorities of UN and international business community

• Range of global issues and challenges

Inclusive Growth

• Ending extreme poverty • Extending prosperity to

majority of world’s people• Achievable

Inclusive Growth

• Sustained economic growth -inclusive and equitable

• More and better jobs• Access to credit and

entrepreneurship opportunities - especially among poor

Human Needs and Capacities• Progress and unmet challenges in

core MDG areas of:• Education• Health • Advances in standing of women

and girls • All closely related to poverty

eradication

Environmental and Natural Resources

• Resource triad:1. Water and sanitation2. Energy and climate3. Agriculture and food

Environmental and Natural Resources

• Three pillars of sustainable development

• Meets basic human needs• Power sustainable economic

growth• Directly related to climate change

Enabling Environment

• Good governance • Respect for human rights• Peace and stability• Modern and green digital and

physical infrastructure

ENGAGING BUSINESSES IN SUSTAINABLE DEVELOPMENT

Post-2015 Business Engagement Architecture• Building blocks • Enhance corporate sustainability • Effective contribution to

sustainable development• Creating value for both business

and society

Corporate Sustainability

• Three dimensions1. Respecting universal principles2. Taking action to support broader

UN goals3. Engaging in partnerships and

collective action at the global and local levels

Sustainable Development Goals and Long-term Business Goals

• Businesses contribute to advancement of sustainable development goals

• Implement corporate sustainability strategies

• Advance inclusive economic growth, social equity and progress, and environmental protection

Sustainable Development Goals and Long-term Business Goals

• Contribute to:• Revenue growth• Resource productivity • Mitigation of operational, legal and

reputational risks

Transparency and Accountability

• Robust accountability measures• Make business commitments

transparent • Ensure progress real

Platforms for Action and Partnership

• Optimise and scale up corporate sustainability efforts a

• Contribute to corporate participation in broader multi-stakeholders

Platforms for Action and Partnership

• Various forums and platforms• Companies and other stakeholders

to work together – by geography, sector and/or issue

Drivers and Incentives

• “Business case” for corporate sustainability strengthened very important developments

• Strengthening of society-based drivers

• Market-based drivers

Post-2015 Business Engagement Architecture

SDGs & Long-Term Business

Goals

Transparency &

Accountability

Platforms for Action &

Partnerships

Drivers &Incentives

Corporate Sustainability

PRIVATE SUSTAINABILITY FINANCE

From managing risks to embracing new opportunities

• Financing needs of transformational post-2015 agenda require significant increases

• Address social, environmental and economic development needs

• Bulk of sustainable development finance from private sector

Private Sector

• Embedding sustainability considerations in trillions of dollars worth of investments

• Increasing impact on sustainable development

Responsible Finance

• Avoid harmful investments • “Do no harm” approach

Principle-based responsible and sustainable finance initiatives

• Examples:• UNEP Finance Initiative (UNEPFI)• UN-supported Principles for Responsible

Investment (PRI)• Principles for Sustainable Insurance• Sustainable Stock Exchanges (SSE)• Initiative and innovative approaches to

sustainable foreign direct investment

Principle-based responsible and sustainable finance initiatives

• Proactive and deliberate approach• Investment opportunities that

deliver measurable positive social or environmental results

• Development of innovative finance mechanisms

Principle-based responsible and sustainable finance initiatives

• Responsible and Impactful Private Finance critical to create long-term value for business and society

• Gaining global attention throughout investment value chain

Private Sustainability Finance

• Key driver of sustainable development

• USD trillion range in coming years

A BETTER FUTURE FOR ALL

Delivering a better future for all• Action by all• Governments• Corporations• Citizens• Consumers• Workers• Investors • Educators

Business

• Heart of improvements in living standards• Markets essential for creating and

diffusing solutions that drive needed changes

Corporate Sustainability

• Transformative force• Achieving shared, secure and

sustainable future