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Business & the Sustainable
Development Goals:
A perspective from WBCSD
Filippo Veglio
Tokyo, 14 July 2016
私たちの使命:持続可能性のより高い企業を評価・報奨し、それにより、一層成功を収める世界への歩みを加速化させる
メンバー企業は全世界200社
メンバー企業の総収益は9兆ドル
WBCSDのメンバー企業の従業員数は1900万人
World Business Council for
Sustainable Development (WB C S D)
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Japanese corporate members of WBCSD
• Bridgestone Corporation
• Canon
• Denso Corporation
• Fujitsu
• Hitachi Ltd.
• Honda Motor Co.
• Komatsu
• Mitsubishi Chemical Holding Corp.
• Mitsubishi Corporation
• Renault-Nissan Alliance
• Sompo Japan Nipponkoa Insurance
• Sumitomo Chemical Company Ltd.
• Sumitomo Rubber Industries, Ltd.
• Taiheiyo Cement Corp.
• Toyo Tire & Rubber Co., Ltd
• Toshiba Corp.
• Toyota Motor Corp.
• The Yokohama Rubber Company
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What are the SDGs?
How should business engage?
Agenda
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Japanese companies and the SDGs
Business & the SDGs
What are the SDGs?
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• Provide a shared narrative on sustainable development and generate understanding of challenges.
• Unite the global community and mobilize stakeholders (including business).
• Support long-term approaches towards sustainable development.
• Promote integrated thinking and move beyond siloed approaches to sustainable development.
• Define responsibilities and foster accountability.
What are the SDGsC o r e o b j e c t i v e s
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169 Targets
230 Indicators
17 Goals
What are the SDGsC o m p l e x , D e t a i l e d , I n t e r c o n n e c t e d
• The comprehensive coverage of the 17 goals is underpinned by a series of 169 detailed targets which outline what exactly each goal is aiming to achieve by 2030.
• This framework is further complemented by 230 indicators, released in March 2016 which outline the data that will need to be collected by governments to be able to assess progress against each target.
• Many of the goals are complimentary however some can pull in opposite directions. It is therefore crucial to have an integrated approach that looks at the whole spectrum.
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• Research conducted by ODI has assessed what chances selected targets for each goal have of being achieved by 2030 if current trends continue.
• Study ranked three key targets linked to poverty, growth and biodiversity with a grade ‘B’, noting that current trends will get the world close to meeting these goals.
• The majority of the targets scored ‘C’, ‘D’ and ‘E’.This group are moving in the right direction but will require radical innovation to have a chance of success by 2030.
• A final group, graded ‘F’, are assessed as needing a complete reversal of current trends.
Source: ODI - http://www.developmentprogress.org/sdgs-scorecard
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What are the SDGsA m b i t i o u s
• Unlike the MDGs, the SDGs are not a telescope through which richer countries look at the developing world – they have relevance and implications for all geographies.
• Report by Bertelsmann Stiftungexamines the performance of OECD countries across the 17 SDGs concluding that countries vary greatly in their capacity to meet the goals.
• No one country performs outstandingly in every goal; each country has lessons to learn from the others.
Source: Sustainable Development Goals: Are the Rich Countries Ready?https://www.bertelsmann-stiftung.de/en/publications/publication/did/sustainable-development-goals-are-the-rich-
countries-ready/
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What are the SDGsU n i v e r s a l
Business and the
SDGs
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SDGs will not
be delivered
without
business
Opportunity for business
WBCSD stance on the SDGs
Role of business
Responsibility of business
• Key development function as an engine of economic growth and employment.
• A vital source of finance, technology and innovation in crucial sectors such food, cities and energy.
• As a priority business should look to identify and mitigate negative social impacts.
• Negative social impacts in areas such as human rights cannot be offset.
• Embracing the transformative power of the goals will open up dynamic and lucrative new markets.
• SDGs provide a roadmap for development highlighting growth opportunities and future trends.
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Understanding the SDGsO p p o r t u n i t y : T h e B u s i n e s s C a s e
Risk Management (pre-emptive compliance)
Anticipation of consumer demands
Identify new markets &
opportunities
Differentiate from competitors
Strengthen supply chains
Access to capital
Enhance impact of CSR activities
Strengthen stakeholder
relations
Paul Polman, CEO of Unilever
“There is no business case for enduring poverty”
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Understanding the SDGsB a r r i e r s t o C o m p r e h e n s i v e U n d e r s t a n d i n g
Complexity of the SDG agenda is broad and can be difficult
for business to properly understand.
The SDGs could be perceived as a “cost on business” as
opposed to a vast economic opportunity.
Language of development may not instantly resonate with representatives form
business.
Finally, businesses may see delivering the SDGs as the
responsibility of governments and hence not within their
remit.
In order to ensure crucial
engagement of the private
sector, there may be certain
risks and barriers to overcome
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• Launched at the World Economic Forum on 21 January 2016 by Paul Polman, CEO of Unilever, and Lord Malloch Brown, former UN Deputy Secretary-General.
• Brings together multiple leaders from business and civil society.
• Will present a comprehensive report in January 2017 which will look to define a compelling economic business to engage with the SDG agenda.
• The report will clearly articulate the potential market opportunity associated with achieving the goals and present new business and financing models that will help to accelerate the transition.
Understanding the SDGsA r t i c u l a t i n g a C l e a r E c o n o m i c P r i z e
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Understanding the SDGsB a s e l i n e R e s p o n s i b i l i t i e s
Comply with all relevant national
legislation
Uphold internationally recognized frameworks, principles and guidelines
Respect human rights and prioritize action on
adverse human rights impacts or risks
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How should business
engage?
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believe that demonstrating a commitment to societal purpose is a differentiator in their industry80%
see the SDGs providing a clear framework to structure sustainability efforts70%
believe the SDGs provide an opportunity to rethink approaches to sustainable value creation87%
believe that business will be the single most important actor in delivering the SDGs49%
Source: UN Global Compact-Accenture Strategy CEO Study 2016
SDGs Perspectives from CEOs
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Identifying relevant SDGs
CSR engagement
Specifc projects engaging with the SDGs
SDGs embedded in strategy
Goal alignment with relevant SDGs
Identification and iuse of indicators for relevant…
Sustainability report written in line with SDGs
Alignment of philanthropiy with SDGs
Annual Report written in line with SDGs
WHAT ACTION CAN WE EXPECT TO SEE FROM BUSINESS BY 2020
Current activity Next 5 years
Source: Make it your business: Engaging with the Sustainable Development Goals, PwC 2015
How Should Business EngageCurrent Plans for Business Involvement
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How Should Business Engage
Businesses that are aware of the SDGs
Businesses that are planning to take action
Businesses that are setting goals aligned
with the SDGs
Businesses that have identified the tools
they need
92%
72%
29%
13%
Source: Make it your business: Engaging with the Sustainable Development Goals, PwC 2015
gap
A n A p p e t i t e f o r F u r t h e r E n g a g e m e n t
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How Should Business EngageN a v i g a t i n g & C a p i t a l i z i n g o n t h e S D G s
www.sdgcompass.org
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• Guides companies on how they can aligntheir strategies as well as measure and manage their contributions to the SDGs.
• Consists of a set of thorough guidelines as well as an online inventory of indicators and tools mapped against the SDGs.
• 2-page briefing notes for each of the 17 SDGs.
• Also available in Japanese
How Should Business EngageS D G C o m p a s s G u i d e l i n e s
• A core component of the SDG Compass is the guidelines that it puts forward in terms of how to integrate the SDGs into business.
• This guidance revolves around a 5 step iterative process.
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Japanese companies
and the SDGs
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Japan & the SDGsE x p e c t a t i o n s f o r J a p a n e s e b u s i n e s s
Japanese business ideally placed not just to achieve SDGs in the context of Japan’s development but also to leverage business opportunities and make a significant contribution
on a global scale
Dissemination of environmental and low carbon technologies
Spread expertise in sustainable urban development & creating future cities
Leverage global presence and supply chains to promote needs & rights
Promote sustainable consumption & the circular economy
Leading global hub of technology &
innovation
Truly global presence with strong governance and risk management
World leader in efficiency and sustainable urban
development
Impacts
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Consolidating the progressive voice of leading business on the SDGs, serving as a one-stop-shopsupporting companies as they seek to effectively navigate this space.
www.wbcsd.org/sdghub.aspx
Continuing the DialogueS u p p o r t i n g N a v i g a t i o n o f t h e S D G s
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Call for ContributionsBring Your Voice to the Conversation
• Details of challenges and opportunities around the SDGs for your industry and business.
• Insight on the role of business in achieving the SDGs in Japan.
• Case studies of how your business is working to strategically integrate the SDG agenda.
• Feedback and suggestions on the work of the WBCSD in this area.
Contribute to the SDG Business Hub
Let us know……
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WBCSD contacts:
www.wbcsd.org/sdghub.aspx
#SDGHub
Filippo Veglioveglio@wbcsd.org
James Gomme gomme@wbcsd.org
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