Harnessing Private Sector Flows

for Country Development and

SDG Achievements

AP-DEF Regional Consultation: Wed 26th Oct, Session IV

October 2016

Agenda

1. About BSR

2. Private sector approaches & case studies

3. Opportunities and enablers for private sector

financing for SDGs

About BSR

3

4

San Francisco

New YorkParis

Guangzhou

Copenhagen

Shanghai

Hong Kong

Tokyo

8OFFICES

75PROJECT

LOCATIONS

100GLOBAL

STAFF

250MEMBER

COMPANIES

+ + +

4

BSR: A Global Nonprofit Business NetworkWe are a global nonprofit organization that works with our network of

more than 250 member companies to build a just and sustainable world.

From our offices in Asia, Europe, and North America, we develop

sustainable business strategies and solutions through consulting,

research, and cross-sector collaboration.

5

We develop sustainable business strategies and solutions through

membership, advisory services, collaboration, and research with our

global network of more than 250 member companies.

How We Work

• Insights gained from our research

and collaborative partnerships

enhance our consulting work

• Our real-world experience working

closely with member companies

informs our research

• Our cross-sector efforts build on

our extensive network of members

and stakeholders

Membership Advisory

Services

ResearchCollaboration

6

Our Core Themes

Business in a Climate-

Constrained WorldOur “Business in a Climate-Constrained

World” strategy catalyzes private-sector

action on climate resilience in two ways:

by helping reduce greenhouse gas

emissions consistent with holding global

mean temperature rises to less than 2˚C

above pre-industrial levels, and by

enhancing adaptive capacity in the face of

inevitable climate impacts.

Business Leadership for an

Inclusive EconomyOur “Business Leadership for an Inclusive

Economy” strategy aims to create a world

in which all individuals and communities

participate in, benefit from, and contribute

to global and local economies. To do this,

we must leverage traditional business

resources to support three core pillars—

good jobs, access to critical goods and

services, and prosperous communities—

creating short- and long-term benefits for

business and society.

• AT&T

• AXA Group

• Bank of America

• Barrick Gold

• Bloomberg

• CVS Health

• Dow Chemical

• Duke Energy

• Facebook

• General Electric

• General Mills

• GlaxoSmithKline

• Google

• Hilton Worldwide

• Huawei

• IKEA Services

• Johnson & Johnson

• KKR & Co.

• Levi Strauss & Co.

• Li & Fung

• LVMH

• Maersk Group

• Marks & Spencer

• McDonald’s

• Merck & Co.

• Microsoft

• NIKE

• Novartis

• NRG Energy

• PepsiCo

• Rio Tinto

• Royal Dutch Shell

• SABIC

• Samsung

• SAP

• Sony

• Toshiba

• Total

• Unilever

• UPS

• Wal-Mart Stores

• Walt Disney7

Sample Member CompaniesBSR has a global network of more than 250 member companies from a

range of industries and regions.

The full BSR membership list is at www.bsr.org/members.

8

More than 100 companies engage in our industry and cross-sector

Collaborative Initiatives, which are designed to help companies

address complex sustainability issues together:

BSR Collaborative Initiatives

• Create shared purpose and support

individual interests

• Drive commitment to best practices

• Leverage strengths of different

participants

• Foster transparency and mutual

learning

• Align incentives to integrate

measureable performance and support

collective progress

Mutual

Learning

Collective

Progress

Mutual

Learning

Shared

Purpose

9

Collaboration: 22 Current Initiatives

Healthcare Working Group

Business Coalition

for Population Health

Center for

Sustainable Procurement

Center for Technology

and SustainabilityClean Cargo Working Group

Climate Science Initiative Container Ship

Safety Forum (CSSF)

Ecosystem Services

Working GroupFuture of Fuels

Future of Internet Power Future of

Stakeholder Engagement

Women in Factories

China Program

HERproject

Human Rights

Working Group

Maritime Anti-Corruption

Network

Myanmar Responsible

Sourcing

Pharmaceutical

Supply ChainRegional Adaptation

Initiative

Sustainability

Reporting Initiative

Sustainable Lifestyles

Frontier Group

Sustainable Luxury

Working Group9

Railsponsible

10

PnohmPehn

Jakarta

Guangzhou

Nairobi

Hanoi

Dhaka

Bangalore

Yangon

10

Our Work in Asia and Africa.Our Asia footprint of covers 10 countries: Bangladesh, India, Pakistan,

Myanmar, Cambodia, Thailand, Indonesia, China, Laos and Vietnam.

We also have active projects in Kenya, Ethiopia and Uganda in Africa.

Vientianne

Karachi

Bangkok

AdisAbaba

Kampala

The SDGs and the Private

Sector

11

How are companies approaching the SDGs?Many companies have taken steps to align their sustainability strategies with the

SDGs

Responses to a survey question:

How far has your company gone to align the business with the SDGs?*

*Results of an April 2016 survey of 21 Global Compact LEAD companies from around the world

67%

72%

62% 29%

Made public statements

of general support for the

SDGs

Aligned current initiatives

to contribute to priority

SDGs

Established goals and

KPIs related to priority

SDGs

Prioritized to identify

SDGs that are most

strategically aligned with

business competencies

and priorities

Joined partnerships

related to the SDGs

Launched new initiatives

to contribute to priority

SDGs

62% 33%

SDGs and the Financial Services SectorBased on a review of banks

communication on the SDGs and

interviews with selected financial

services institutions, the priority SDGs

for the financial services sector are:

Other important SDGs are:

Goal 5: Gender

Equality

Goal 8: Decent Work

& Economic Growth

Goal 13: Climate

Action

Goal 1: Zero Poverty

Goal 7: Affordable & Clean Energy

Goal 9: Industry, Innovation &

Infrastructure

Goal 11: Sustainable Cities &

Communities

Goal 16: Peace, Justice & Strong

Institutions

Goal 17: Partnerships for the Goals

14

Philanthropies as Catalyst for SDG

Financing

15

Private sector Case study: Novartis

• Healthy Family Program (India, 2007)

• Access to low cost medicines; training and creating employment opportunities;

localised marketing and distribution

IMPACT

25 fold sales 10+ millions 3 years to be profitable

Case study adapted from UNGC and BPI case study

reached

HERproject Impact

17

brands

16

NGO partners

8countries

300K

women4:1

ROI

Opportunities Ahead

18

19

The SDGs offer many business opportunitiesThe SDGs relate to most aspects of business operations. Alignment with the Goals

may contribute to new opportunities for business and society.

Business opportunities

• Develop new products and services

• Achieve greater operational efficiency

• Access/grow in new markets

• Secure supplies

Improving Business

Operations &

Revenue Generation

• Amplify the impact of sustainability efforts

• Participate in policy developments

• Contribute to stabilizing societies and markets

• Address impact of development gaps on business

Strengthening the

Enabling

Environment

Sources: BSR analysis, The Global Compass

Enhanced Reputation

& Stakeholder

Relations

• Enhance brand, trust, and reputation

• Strengthen stakeholder relations

• Increase consumer demand

• Increase employee engagement and recruitment

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Some targets have direct implications for businessExample goals and targets that offer business opportunities

• 17.16 Enhance the global

partnership for sustainable

development, complemented by

multi-stakeholder

partnerships…

All industries

• 12.3 By 2030, halve per capita

global food waste at the retail

and consumer levels and

reduce food losses along

production and supply chains…

Food, Beverage, and Agriculture

• 8.9 By 2030, devise and

implement policies to promote

sustainable tourism that

creates jobs and promotes local

culture and products

Travel and Tourism

• 9.c …Strive to provide universal

and affordable access to the

Internet in least developed

countries by 2020

Information and Communications Technology

• 3.8 Achieve universal health

coverage, including … access to

safe, effective, quality and

affordable essential medicines

and vaccines for all

Healthcare

• 7.2: By 2030, increase

substantially the share of

renewable energy in the global

energy mix

Power and Utilities

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• 2.b Correct and prevent trade restrictions and distortions in world agricultural

markets, including through the parallel elimination of all forms of agricultural

export subsidies and all export measures with equivalent effect, in accordance

with the mandate of the Doha Development Round

Some targets forecast possible changes in the

enabling environment for businessExample goals and targets that forecast policy changes

• 14.6 By 2020, prohibit certain forms of fisheries subsidies which contribute to

overcapacity and overfishing, eliminate subsidies that contribute to illegal,

unreported and unregulated fishing and refrain from introducing new such subsidies

• 12.6 Encourage companies, especially large and transnational companies, to

adopt sustainable practices and to integrate sustainability information into

their reporting cycle

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How do we learn from past failures to set

future direction?

ROI

Incentives

• Business case and ROI as drivers of investment decisions

• Investments in “socially-minded” initiatives in the past have

been coming second to those which generate economic

returns – this is changing where both are seen as mutually

achievable

• Negative pressure but no rewards for positive performance

• Coalition of the willing moving at the speed of coalition of

the least willing

Thank you!

23

Brooke Avory BSR Hong Kong

bavory@bsr.org