Mainstream Private Sector

Engagement in Uganda for

Corporate Sustainability

This presentation is an innovative model that looks at

mainstreaming Corporate Sustainability Actions into

National Priorities, Climate Action and SDGs.

Arindam Basu

Objective of the Presentation

UNDP aims to mainstream the positive impacts resulting from

corporate sustainability actions undertaken by the private

sector in Uganda and align the efforts to national priorities

and international efforts.

Apart from providing an overview of the proposed approach

and securing feedback, the objective of this meeting is to

secure a ‘letter of interest’ to start implementing the model

facilitated by an initial international contribution…

EconomySociety

EnvironmentClimate

Change

Sustainable

Development

Role of

Business

Our World Today!

We are all well aware of some of the “buzz words”

that impact the world around us…

2015: Year of Change

The year 2015 saw the arrival of:

• The Climate Agreement in Paris (Dec 2015)

• UN’s Sustainable Development Goals (SDGs)

The two frameworks will collectively have a

significant impact on the way businesses are

conducted in the coming years…

Overview of the 2 Frameworks

The Climate Agreement

Goal: Keep global warming “well below” 2˚C and

continue all efforts to limit temp. rise to 1.5 ˚C

Mitigation: Strategy/Action to reduce or remove GHGs

Adaptation: Enhance resilience and reduce vulnerability

Pathways for ‘Climate Action’

The ‘building block’ of the Agreement are ‘Intended Nationally Determined Contributions or INDCs submitted by 187 countries

Uganda’s INDC defines priority sectors:

• Energy Supply and Demand • Agriculture and Livestock• Forestry and Wetlands• Infrastructure (settlements, social infrastructure and transport)• Water and Health

• Disaster Risk Management

Finance

Technology

Cap. Building

Transparency

Loss & Damage

The Climate Agreement provides

pathways for converting priorities

into measureable actions

http://www4.unfccc.int/submissions/INDC/Published%20Documents/Uganda/1/INDC%20Uganda%20final%20%2014%20October%20%202015,%20minor%20correction,28.10.15.pdf

Challenge vs the Opportunity Gap

Important! There is only a limited amount of international grants and

”donor” finance available and the key to meeting INDC

”contributions” will be the participation of private sector.

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Finance remains the key roadblock to implementation, OR is it !?!

Climate Finance demanded under:

Paris Agreement: USD 100 Billion/Yr

Total investments in renewable energy and

energy efficiency alone in 2014 globally:

USD 391 Billion

The ‘opportunity gap’ for the Private Sector globally

to meet INDC commitments: USD 1 Trillion/year every year over the next 15 years!

(The estimated green business opportunity for keeping the temperature increase below the 2deg mark is USD 16.5 Trillion in the next 15 years)

The SDGs (2016-2030)

With 169 targets over 17 categories (compared to 5 in MDG),

the SDGs provides a more holistic and tangible set of quantitative

targets for countries towards sustainable development

The Sustainable Development Goals (SDGs) builds on the earlier

Millennium Development Goals (MDGs) that concluded in 2015

People

Prosperity

Peace

Partnership

Planet

1 2 3

8

7

4 5

6

1 2 3

4 5

61

2

1

3

1

4

1

5

7 8 9

1

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1

1

1

6

1

7

End poverty and fight inequalityEnsure healthy lives. Inclusion of woman and children

Protect our ecosystem for all societies and our children

Catalyze global solidaity forSustainable Development

Promote safe, strong & peacefulSocieties and Institutions

Grow a strong, inclusive andTransformative Economy

Uganda and SDGs

A report published by the Government of Uganda on the progress indicate that the country has been able to meet only 33% of its MDG targets and notes,

‘One of the reasons why MDG implementation delayed and achieved less than desired results globally was because developing nations expected external support

which didn’t materialize. Now with the realization within the country that “no one owes us a living”, the government’s open dialogue on innovative mechanisms for

sustainably financing of its development will deliver big results on our own terms.’

- MDG Summary Report, Uganda

75% of the Sustainable Development Goals are incorporated into

the NDP II and is linked to Vision 2040 aimed at transforming

Uganda to a middle income country by 2040.

Why Corporate Action?

CSR in Africa - ‘Historical Reasons’

Attract Investors

Compliance

Increased Profitability

Attract Customers

Attract Employees

Core Business Enhancement

Improve Image / Branding

Socio-Economic Engagement

0% 10 20 30 40 50 60 70

0% 10 20 30 40 50 60 70

Education and Training

Health

Environment

Sports and Welfare

Skill Development

Economic Development

Governance and Accountability

Labour Rights

Downstream Business Development

Human Rights

The reasons for businesses to undertake CSR in the past was NOT

strategic as captured by this GiZ study. The graphs capture the

rationale and focus areas for companies in Africa to undertake CSR

Impact of Post 2015 Frameworks

Lack of international finance: In the coming years the government

will focus on ‘private sector contribution’, thus see an increasing

demand on business to contribute to activities of national priority.

‘Name and Shame’ approach: With 190+ countries involved,

Uganda cannot risk being identified as the “rotten apple”

due to non-compliance. Moreover, businesses risk losing out

on accessing new markets in an increasingly globalized world.

‘Ratchet Mechanism’: This requires governments to make more

ambitious commitments every 5 years which in turn will require

companies to constantly adapt their sustainability actions to new

policies, regulations and standards.

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2015

Investments needed to

meet INDC commitments

(the opportunity gap)

2020 2025 2030

? Businesses who

fail to adapt

(Uncertain Future)

Re-active Business Strategy

(Stagnant Growth)

Pro-active Business Strategy

(Adapts and Grows)

% share of the

Total Opportunity

The ‘Ratchet Mechanism’

(New Commitments =

Tighter regulations every 5 Yrs)

The Ratchet Mechanism

Redefine Business Strategy

The Proposed Model

3 pillars of the Model

INDC SDGs

Business

Strategy

The proposed Model looks at aligning INDCs and SDGs

to have a strategic overlap on Business Strategy

Step 1: Define Sectors & Projects

Uganda’s Current INDC Priorities:

Energy Supply

Energy Demand

Agriculture and Livestock

Forestry and Wetlands

Infrastructure and Transport

Water and Health

Disaster Risk Management

Business Focus Areas:

Sugar Industry : Agriculture

Cement: Infrastructure

Banks: Risk Management

IT/Mobile: Infrastructure

Mining: Forestry

Breweries: Water

Energy common for all

Define list of Specific

Projects and Outcomes

Step 2: Define Models & Partners

Implementation Model:

Individual vs Collective

Direct vs Indirect through

3rd party Partners

There are various pathways for implementing the projects, raising

finance, identifying project partners and defining outcomes

*Models discussed are indicative

Financing Model:

Set-up a national Fund and/or

leverage international finance

Partner Organizations:

Prepare a list of technical and

non-technical organizations

who can drive implementation

Innovative Business Models

Internet of Things,

Circular Economy etc.

are new business mantras

Step 3: Visibility Strategy

Labelling system

Recognition

CEO Forum

International Platform

Ultimately outcomes need to measured,

reported and verified (MRV) –

and businesses should be provided with

avenues for translating outcomes into new

and additional business…

Business Strategy

Sustainability Strategy

Corporate

Sustainability

Strategy

Contributes to one or more

National/sectoral targets

Supports

Global Targets

=

Win-win Situation

for the World!

Green Growth and Low Carbon Development = Triple Win-Win Situation

Government, Private Sector &

Partners (NGOs, CSOs etc.)

define Action Plan

Uganda’s Current Priorities:

Energy Supply

Energy Demand

Agriculture and Livestock

Forestry and Wetlands

Infrastructure and Transport

Water and Health

Disaster Risk Management

Define Projects & Outcomes

in line with National Priorities and

linked to INDC and SDGs

Increased demand for Goods and Services

= Win-Win situation for the Industry

Partners: Existing actors in

Uganda – Contributes to overall

success of the activities

Strategic Approach = Integrated

Business & Sustainability Strategy

+

Strategy for Visibility aimed at

helping companies derive

maximum benefit

Private Sector ‘Opportunity Gap’ for Green Growth:

USD 1 trillion / year for next 15 years

= Win-Win situation

for the Country

© A.Basu

The Triple Win Model

Next Steps

Kick-starting the Process: Gaps

Establishing the Action Plan: Getting stakeholders together to

define priorities and preparing an implementing plan for a given

time horizon including expected outcomes.

Building Private Sector Awareness: CEOs, CFOs, business owners

and other senior management need to be made aware of the

impact of the Paris Agreement, SDGs, advantages of the

proposed approach and strengthening in-house capacities (e.g.

developing integrated strategy).

Expertise Mapping and Partner Directory: Mapping of existing

competencies and making the information accessible to

enhance the implementation process.

MRV of Outcomes: Tools, systems and processes should be put in

place to track progress of the expected outcomes and align with

a national focal point (e.g. Climate Change Unit)

Access International Donors

The present focus is on getting ‘Letters of Interest’* from

interested parties – which can then be presented to

international donors to initiate the process

Note: The letters of interest is NOT a commitment but an affirmation to

international donors indicating that the proposed model is of interest

and the respective entity is willing to participate in such activity should

the programme be established.

What is in it for Businesses?

CONSOLIDATED EFFORTS: There is a clear focus, alignment and

direction for undertaking strategy development

PRIVATE SECTOR LED PROCESS: The overall process will be led by

the private sector in Uganda to ensure buy-in at the highest level

STRENGTHENED CAPACITY: There is opportunity for businesses to

share experience but also learn about innovative business models

from an international perspective that can be then tailored for

country specific conditions by the respective entity.

GOVERNMENT BUY-IN AT THE HIGHEST LEVEL: As an internationally

supported effort, the overall approach will ensure agreements

from the highest Office – particularly since the Action Plans will be

aligned to INDCs and SDGs to which Uganda is committed.

WIN-WIN: Aims to be the country’s flagship effort…

Questions and Comments

Weebale nyo!