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Contribuyendo con lo
Negocios Inclusivos a los
Objetivos del Desarrollo
Sostenible
II CONFERENCIA INTERNACIONAL DE NEGOCIOS INCLUSIVOS 2017
Delivering on the
Sustainable
Development Goals:
An Inclusive Business
approach
Karolina Södergren, WBCSD
@karolinasodergr @wbcsd
Madrid, 22 February 2017
This morning
Understanding the SDGs
in a business context
Introducing WBCSD
Exploring linkages
between Inclusive Business
and the SDGs
Our mission
Accelerate progress to a world where more
sustainable companies are recognized and rewarded,
and therefore are more successful
200 global
member
companies
$9tn Aggregate
revenue of
members
19m Employees
in WBCSD member
companies
The World Business Council for
Sustainable Development (WBCSD)
Spanish WBCSD members &
Global Network partner
Business and the SDGs
– brief context
17 goals integrating social, environmental and
economic aspects
Developed through a multi-stakeholder process
(including business)
A comprehensive development agenda up to
2030
Agreed by 193 UN nations and launched in
September 2015
The new language of sustainability
Wh a t a r e t h e S D G s ?
Background Information
17
Goals
169 Targets
230 Indicators
Go into great detail on exactly
what needs to be achieved across
social, environmental and
economic aspects
Highlight key data sets for
governments to monitor with a
view to achieving the goals
Wh a t a r e t h e S D G s ?
Complex & Detailed
• 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 Stiftung
examines the performance of 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.
9
Wh a t a r e t h e S D G s ?
A Universal Agenda
Source: SDG Index - http://www.sdgindex.org/
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
B u s i n e s s & t h e S D G s
How CEOs See the SDGs
SDGs will not
be delivered
without
business
Technology & Innovation
Engine of Employment
Source of Finance
WB C S D ‘ s S t a n c e o n t h e S D G s
The Crucial Role of Business
Implications for Business
Risks of
inaction
Capturing
Opportunities
Reporting Collaboration
From a business
perspective it is
important to
understand the
implications of the
SDGs across four
key areas
WB C S D ‘ s S t a n c e o n t h e S D G s
• Costs of inaction: Failures in today’s economic model are adding
to a swelling list of environmental and social burdens placing
restraints on future growth prospects. These burdens represent a
mounting business cost and ultimately are turning the world into
a less viable place in which to conduct business.
• Regulatory risk: The SDGs reflect future policy direction at the
international, national and regional levels. A failure to integrate
them strategically represents long-term regulatory risk.
• Market disruption: Forward-thinking businesses are forging ahead
with disruptive new business models which threaten to radically
reshape markets.
• Reduced license to operate: The latest global report on trust in
business from Edelman shows a double-digit decline in the
credibility of CEOs in 80 percent of countries.
Implications for Business
Risks of
inaction
WB C S D ‘ s S t a n c e o n t h e S D G s
Capturing
Opportunities
• New growth markets: There is a massive market incentive for
companies who are able to offer SDG-relevant technologies and
solutions through sustainable and inclusive business models - an
economic prize worth at least US$12 trillion per year by 2030.
• SDGs as policy roadmap: Companies that align themselves with
the SDGs and are able to communicate clearly about how their
business helps governments to achieve the SDGs are likely to be
able to consolidate a strong license to operate and to
differentiate themselves from competitors.
• Regaining trust: Through aligning with the common language and
shared purpose of the Goals, companies will be able to forge a
new and improved social contract.
Implications for Business
WB C S D ‘ s S t a n c e o n t h e S D G s
Reporting
• Reporting requirements: UN Global Compact and GRI are jointly
developing a publication on SDG reporting, to be presented at
the UN Private Sector Forum, at the UN General Assembly in
September 2017.
• Rankings: Plans underway to develop corporate benchmarks
against SDG-related indicators. Will rank companies from
specific sectors and geographies on SDG performance.
• New language of sustainability: Stakeholders will expect to see
companies communicating around their contribution to the
SDGs.
Implications for Business
WB C S D ‘ s S t a n c e o n t h e S D G s
Collaboration
• Sector Approach: Business as usual will not achieve the SDGs,
nor will innovation by a few pioneers. A new course is
required for entire sectors and industries. This is beyond the
reach of any one company. Realizing the goals means
collaboration among a critical mass of companies at the
industry level.
• Public Private Partnerships: These will also be needed, in
particular to drive to drive innovative solutions to unlock the
financing required to achieve the SDGs.
Implications for Business
WB C S D ‘ s S t a n c e o n t h e S D G s
www.sdgcompass.org
WB C S D & t h e S D G s
SDG Resources
www.sdghub.com
Inclusive Business and
the SDGs
‘Delivering on the SDGs: The inclusive business
approach’
SDGs will not
be delivered
without
inclusive
business
The BoP faces a
magnitude of
challenges
The BoP is a market
with immense
growth potential
The Sustainable Development Goals (SDGs)
emphasize notion of „leaving no one behind“
Inclusive Businesses
offer solutions focussed
on integrating the BoP
20
4.5 billion people at the BOP
spend US$5 trillion in aggregate
BoP accounts for more than 50% of
all consumer spending in emerging
markets and developing economies
Base of the
economic pyramid (BoP)
3 billion people living on
<US$3/day and 1.5 billion
people on up to US$ 9/day
US$2.3 trillion spent on
food and beverages alone
1.7 billion people live in congested urban
environments; 2.8 billion people live in
vast rural areas
44% are under age 20
61% are under age 30
The business case for IB
21
It encourages innovation
From marketing to transportation to
product design, inclusive businesses find
innovative approaches to serve BoP customers. It’s a
competitive
advantage
Inclusive
businesses are early-
movers into untapped
BoP markets. They
enhance their brand
value and license to
operate by building
their reputation as a
business partner of
choice.
It’s a supply chain strategy
Sourcing materials locally from small-scale
producers, inclusive businesses build stronger
and more productive suppliers and secure
access to local resources.
It expands the
labor pool
Inclusive businesses
have higher access to
appropriately skilled
and more cost-effective
employees. Better
wages and more secure
livelihoods contribute
to local economies.
The business case for IB
SDGs & Inclusive business opportunities
23
24
WBCSD approach
Advocate
business
perspectives
Illustrate best
practices &
lessons learned
Develop
toolkits &
training
programs
Identify & broker
opportunities
26
Download the issue brief at:
www.wbcsd.org/social-impact.aspx
www.inclusive-business.org
Thank you
Karolina Södergren
sodergren@wbcsd.org
www.inclusive-business.org
www.sdghub.com
28
Internal
• Opportunity costs of investment for
venturing into new market segments
• Strategic and operational misalignment,
risk-aversion and lack
of leadership support
• Capabilities or implementation capacities
External
• Inappropriate policy and regulatory frameworks
• Lack of adequate physical infrastructure
• Scarce availability of BoP market information
• Lack of knowledge and information of BoP
consumers
• Mismatch in skills of BoP labor force
• Low access to financial services and resources for
investments and consumers
Solutions, but also barriers...
SDGs will not
be delivered
without
business
Opportunity for business
Role 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.
• 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.
29
Responsibility of business
• 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.
B u s i n e s s & t h e S D G s
WBCSD’s Stance on the Goals
Magnitude of challenges
Poverty in all its dimensions
Source: World Development Indicators
1,7 billion people lack
access to basic
healthcare
1,3 billion live
without electricity
1,1 don’t have
access to clean
water
3 billion people
live on less than 3
USD per day
Graph from „The Next 4 Billion“
BoP has a combined spending power of
5 trillion USD per year
62% of
global
spending is
from BoP
Magnitude of opportunities
Spending power
Conclusion
In a nutshell
Scaling up is...
• An attractive business strategy,
because of the magnitude of the business opportunities;
• A sustainable development imperative,
because of the magnitude of the challenges;
• Challenging,
Because business as usual won‘t work;
• Possible!
Copyright©2014porFundaciónCODESPA.Todoslosderechosreservados
www.codespa.org

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Contribuyendo con los Negocios Inclusivos a los Objetivos del Desarrollo Sostenible (Inglés)

  • 1. Copyright©2014porFundaciónCODESPA.Todoslosderechosreservados Contribuyendo con lo Negocios Inclusivos a los Objetivos del Desarrollo Sostenible II CONFERENCIA INTERNACIONAL DE NEGOCIOS INCLUSIVOS 2017
  • 2. Delivering on the Sustainable Development Goals: An Inclusive Business approach Karolina Södergren, WBCSD @karolinasodergr @wbcsd Madrid, 22 February 2017
  • 3. This morning Understanding the SDGs in a business context Introducing WBCSD Exploring linkages between Inclusive Business and the SDGs
  • 4. Our mission Accelerate progress to a world where more sustainable companies are recognized and rewarded, and therefore are more successful 200 global member companies $9tn Aggregate revenue of members 19m Employees in WBCSD member companies The World Business Council for Sustainable Development (WBCSD)
  • 5. Spanish WBCSD members & Global Network partner
  • 6. Business and the SDGs – brief context
  • 7. 17 goals integrating social, environmental and economic aspects Developed through a multi-stakeholder process (including business) A comprehensive development agenda up to 2030 Agreed by 193 UN nations and launched in September 2015 The new language of sustainability Wh a t a r e t h e S D G s ? Background Information
  • 8. 17 Goals 169 Targets 230 Indicators Go into great detail on exactly what needs to be achieved across social, environmental and economic aspects Highlight key data sets for governments to monitor with a view to achieving the goals Wh a t a r e t h e S D G s ? Complex & Detailed
  • 9. • 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 Stiftung examines the performance of 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. 9 Wh a t a r e t h e S D G s ? A Universal Agenda Source: SDG Index - http://www.sdgindex.org/
  • 10. 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 B u s i n e s s & t h e S D G s How CEOs See the SDGs
  • 11. SDGs will not be delivered without business Technology & Innovation Engine of Employment Source of Finance WB C S D ‘ s S t a n c e o n t h e S D G s The Crucial Role of Business
  • 12. Implications for Business Risks of inaction Capturing Opportunities Reporting Collaboration From a business perspective it is important to understand the implications of the SDGs across four key areas WB C S D ‘ s S t a n c e o n t h e S D G s
  • 13. • Costs of inaction: Failures in today’s economic model are adding to a swelling list of environmental and social burdens placing restraints on future growth prospects. These burdens represent a mounting business cost and ultimately are turning the world into a less viable place in which to conduct business. • Regulatory risk: The SDGs reflect future policy direction at the international, national and regional levels. A failure to integrate them strategically represents long-term regulatory risk. • Market disruption: Forward-thinking businesses are forging ahead with disruptive new business models which threaten to radically reshape markets. • Reduced license to operate: The latest global report on trust in business from Edelman shows a double-digit decline in the credibility of CEOs in 80 percent of countries. Implications for Business Risks of inaction WB C S D ‘ s S t a n c e o n t h e S D G s
  • 14. Capturing Opportunities • New growth markets: There is a massive market incentive for companies who are able to offer SDG-relevant technologies and solutions through sustainable and inclusive business models - an economic prize worth at least US$12 trillion per year by 2030. • SDGs as policy roadmap: Companies that align themselves with the SDGs and are able to communicate clearly about how their business helps governments to achieve the SDGs are likely to be able to consolidate a strong license to operate and to differentiate themselves from competitors. • Regaining trust: Through aligning with the common language and shared purpose of the Goals, companies will be able to forge a new and improved social contract. Implications for Business WB C S D ‘ s S t a n c e o n t h e S D G s
  • 15. Reporting • Reporting requirements: UN Global Compact and GRI are jointly developing a publication on SDG reporting, to be presented at the UN Private Sector Forum, at the UN General Assembly in September 2017. • Rankings: Plans underway to develop corporate benchmarks against SDG-related indicators. Will rank companies from specific sectors and geographies on SDG performance. • New language of sustainability: Stakeholders will expect to see companies communicating around their contribution to the SDGs. Implications for Business WB C S D ‘ s S t a n c e o n t h e S D G s
  • 16. Collaboration • Sector Approach: Business as usual will not achieve the SDGs, nor will innovation by a few pioneers. A new course is required for entire sectors and industries. This is beyond the reach of any one company. Realizing the goals means collaboration among a critical mass of companies at the industry level. • Public Private Partnerships: These will also be needed, in particular to drive to drive innovative solutions to unlock the financing required to achieve the SDGs. Implications for Business WB C S D ‘ s S t a n c e o n t h e S D G s
  • 17. www.sdgcompass.org WB C S D & t h e S D G s SDG Resources www.sdghub.com
  • 19. ‘Delivering on the SDGs: The inclusive business approach’ SDGs will not be delivered without inclusive business The BoP faces a magnitude of challenges The BoP is a market with immense growth potential The Sustainable Development Goals (SDGs) emphasize notion of „leaving no one behind“ Inclusive Businesses offer solutions focussed on integrating the BoP
  • 20. 20 4.5 billion people at the BOP spend US$5 trillion in aggregate BoP accounts for more than 50% of all consumer spending in emerging markets and developing economies Base of the economic pyramid (BoP) 3 billion people living on <US$3/day and 1.5 billion people on up to US$ 9/day US$2.3 trillion spent on food and beverages alone 1.7 billion people live in congested urban environments; 2.8 billion people live in vast rural areas 44% are under age 20 61% are under age 30 The business case for IB
  • 21. 21 It encourages innovation From marketing to transportation to product design, inclusive businesses find innovative approaches to serve BoP customers. It’s a competitive advantage Inclusive businesses are early- movers into untapped BoP markets. They enhance their brand value and license to operate by building their reputation as a business partner of choice. It’s a supply chain strategy Sourcing materials locally from small-scale producers, inclusive businesses build stronger and more productive suppliers and secure access to local resources. It expands the labor pool Inclusive businesses have higher access to appropriately skilled and more cost-effective employees. Better wages and more secure livelihoods contribute to local economies. The business case for IB
  • 22. SDGs & Inclusive business opportunities
  • 23. 23
  • 24. 24
  • 25. WBCSD approach Advocate business perspectives Illustrate best practices & lessons learned Develop toolkits & training programs Identify & broker opportunities
  • 26. 26 Download the issue brief at: www.wbcsd.org/social-impact.aspx www.inclusive-business.org
  • 28. 28 Internal • Opportunity costs of investment for venturing into new market segments • Strategic and operational misalignment, risk-aversion and lack of leadership support • Capabilities or implementation capacities External • Inappropriate policy and regulatory frameworks • Lack of adequate physical infrastructure • Scarce availability of BoP market information • Lack of knowledge and information of BoP consumers • Mismatch in skills of BoP labor force • Low access to financial services and resources for investments and consumers Solutions, but also barriers...
  • 29. SDGs will not be delivered without business Opportunity for business Role 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. • 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. 29 Responsibility of business • 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. B u s i n e s s & t h e S D G s WBCSD’s Stance on the Goals
  • 30. Magnitude of challenges Poverty in all its dimensions Source: World Development Indicators 1,7 billion people lack access to basic healthcare 1,3 billion live without electricity 1,1 don’t have access to clean water 3 billion people live on less than 3 USD per day
  • 31. Graph from „The Next 4 Billion“ BoP has a combined spending power of 5 trillion USD per year 62% of global spending is from BoP Magnitude of opportunities Spending power
  • 32. Conclusion In a nutshell Scaling up is... • An attractive business strategy, because of the magnitude of the business opportunities; • A sustainable development imperative, because of the magnitude of the challenges; • Challenging, Because business as usual won‘t work; • Possible!