mnce_enviromental principles gbc

8/2/2019 MNCE_Enviromental Principles GBC

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Understanding the Global Compact

United Nations Secretary-General Kofi Annan first proposed the Global Compact in an address to The WorldEconomic Forum on 31 January 1999. Amid a backdrop of rising concerns about the effects of globalization, the

Secretary-General called on business leaders to join an international initiative the Global Compact that wouldbring companies together with UN agencies, labour, non-governmental organizations and other civil-society actorsto foster action and partnerships in the pursuit of a challenging vision: a more sustainable and inclusive globaleconomy.

Explain that the Global Compact is not a UN agency but a network that exists to promote an initiative.

United Nations Secretary-General Kofi Annan first proposed the Global Compact in an address to The WorldEconomic Forum on 31 January 1999. Amid a backdrop of rising concerns about the effects of globalization, theSecretary-General called on business leaders to join an international initiative the Global Compact that wouldbring companies together with UN agencies, labour, non-governmental organizations and other civil-society actors

to foster action and partnerships in the pursuit of a challenging vision: a more sustainable and inclusive globaleconomy.

The Global Compact is a voluntary corporate citizenship initiative. As such, the Global Compact is not a regulatory

instrument it does not police or enforce the behavior or actions of companies. Rather, the Global Compact relies

on the enlightened self-interest of companies, labour and civil society to initiate and share substantive action in

pursuing the principles upon which the Global Compact is based.

The Global Compact seeks to provide a contextual framework to encourage innovation, creative solutions, and good

practices among participants. The Global Compact is not a substitute for regulatory structures or other codes.Indeed, the Global Compact believes that voluntary initiatives and regulatory systems complement each other and,

when combined, provide powerful impetus in encouraging the wide adoption of responsible corporate citizenship.

The emphasis has been to bring about corporate change through the use of a learning approach that facilitates

discussion between the various groups and builds new relationships for future projects. In adopting such an

approach, rather than a classical regulatory approach, the Global Compact has gone into uncharted territory, and

this has invited some criticism from those who would like it to have sharper teeth in the form of monitoring and

verification. However, as stated, these are not areas within the mandate of the Global Compact.


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global compact principles

The United Nations Global Compact asks companies to embrace, support and enact, within theirsphere of nfluence, a set of core values in the areas of human rights, labour standards, the

environment and anti-corruption.The 10 principles of the Global Compact

Human Rights

Principle 1 Businesses should support and respect the protection of international

human rights within their sphere of influence; and

Principle 2 make sure they are not complicit in human rights abuses.

Labour

Principle 3 Businesses should uphold the freedom of association and the

effective recognition of the right to collective bargaining;Principle 4 the elimination of all forms of forced and compulsory labour;

Principle 5 the effective abolition of child labour; and

Principle 6 the elimination of discrimination in respect of employment

and occupation.

Environment

Principle 7 Businesses should support a precautionary approach to environmental

challenges;Principle 8 undertake initiatives to promote greater environmental responsibility;

and

Principle 9 encourage the development and diffusion of environmentally

friendly technologies.

Anti-Corruption

Principle 10* Businesses should work against corruption in all its forms,

including extortion and bribery.


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Introduction to Environmental Principles

The environmental principle has been led by the United Nations Environment Programme (UNEP), since itsinception in 1973

UNEP has provided leadership and encouraged partnerships to care for the environment

For example , through Multilateral Environmental Agreements (MEAs) which have addressed issues such asspecies loss and the need for conservation at a global and regional leve

The three environmental principles of the Global Compact are drawn from a Declaration of Principles and anInternational Action Plan (Agenda 21) that emerged from the United Nations Conference on Environment andDevelopment (the Earth Summit) held in Rio de Janerio in 1992

Key Documents

The Rio Declaration

Agenda 21 - a 40 chapter

The 'Brundtland Report', 'Our Common Future'

Key Environmental Challenges

loss of biodiversity and long-term damage to ecosystems

pollution of the atmosphere and the consequences of climate change damage to aquatic ecosystems

land degradation

the impacts of chemicals use and disposal

waste production

depletion of non-renewable resources


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Environment

Principle 7

Principle 7 Businesses should support a precautionary approach to environmental challenges;

What is Precautionary approach?

Principle 15 of the 1992 Rio Declaration states that where there are threats of serious or irreversible damage, lackof full scientific certainty shall not be used as a reason for postponing cost-effective measures to preventenvironmental degradation.

involves the systematic application of risk assessment, risk management and risk communication.

Why is the precautionary approach important for business?

the idea of prevention rather than cure.

environmental damage entails both opportunity and implementation

Investing in production methods that are not sustainable improving environmental performance means lessfinancial risk

Research and development related to more environmentally friendly products


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steps could companies take in the application of the precautionary approach


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Environment

Principle 8

Principle 8 undertake initiatives to promote greater environmental responsibility;

In Chapter 30 of Agenda 21, the 1992 Rio Earth Summit spelled out the role of business andindustry in the sustainable development agenda as: "Business and industry should increase selfregulation, guided by appropriate codes, charters and initiatives integrated into all elements ofbusiness planning and decision-making, and fostering openness and dialogue with employeesand the public."

The relevant principle in the Rio Declaration says we have the responsibility to ensure thatactivities on our own yard should not cause harm to the environment of our neighbours. Societyalso expects business to be good neighbours. Business gains its legitimacy through meetingthe needs of society, and increasingly society is expressing a clear need for moreenvironmentally sustainable practices.

Key mechanisms or tools for the company to use assessment or audit tools management tools

communication and reporting tools


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What steps could companies take to promote environmental responsibility?


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Environment principle 9

Principle 9 encourage the development and diffusion ofenvironmentally friendly technologies.

As defined in Agenda 21, should protect the environment, areless polluting, use all resources in a more sustainable manner,recycle more of their wastes and products and handle residualwastes in a more acceptable manner than the technologies for

which they were substitutes. considered as total systems including know-how, procedures, goods andservices and equipment as well as organizational and managerialprocedures

The key benefits of environmentally friendly technologies are the following: Implementing environmentally friendly technologies helps a company reduce the

use of raw materials leading to increased efficiency. Technology innovation creates new business opportunities and helps increase

the overall competitiveness of the company. Technologies that use materials more efficiently and cleanly can be applied to

most companies with long-term economic and environmental benefits.


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How can business promote the use and diffusion of environmentally friendly

technologies?

At the basic factory site or unit level, improving technology may be achieved by (i)

changing the process or manufacturing technique, (ii) changing input materials, (iii)

changes to the product and (iv) reusing materials on site

Strategic level approaches to improving technology include the following:

Establishing a corporate or individual company policy

Making information available to stakeholders

Refocusing research and development

Use of life cycle assessment (LCA)

Employing Environmental Technology Assessments (EnTA) Examining investment criteria

Co-operating with industry partners


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The Global Compact in India

The Global Compact Society (GCS) was formed inNovember,2003 and registered in New Delhi as an allIndia forum, for organizations participating in the U.N.sGlobal Compact Programme.

Given the geographical and population size in India therewas need to add a third network to the GC India Networkand that is the India Partnership Forum that is a jointUNDP/CII initiative.

In India, 125 leading companies including Public/PrivateSectors, Institutions, NGOs & SMEs, have joined theGlobal Compact, along with a number of industryassociations, employer organizations and professionalbodies.


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Major Activities Conducted in

India. Website.

National Convention.

Participation in the UNGC leaders Summitat United Nations, New York.

G.C. Regional Conclave in South Asia.

UN GCs Meetings.


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Examples of Practices of G.C. in

India. Carbon Management Group.

Energy Centre For rearch in non-

conventional energy sources

Health Safety and Environment Group.

Mangorve Plantation in Gandhar Area

Ringal Plantation

Paper Recycling:

Drill Cutting Reuse:

Waste-to-Energy:


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Development and diffusion of environmentally

friendly technologies

Bioremediation:

CDM Project Activity

Methane to Market (M2M)

Carbon Dioxide Capture and Sequestration (CCS)

Carbon Disclosure Project (CDP)

GHG Accounting Greening Vendor chain

Sustainability Reporting

Energy Conservation