Mobilizing the support of business in achieving the sustainable development goals – the ESCAP Sustainable Business Network

Marc Proksch Chief, Investment and Enterprise Development; Trade, Investment and Innovation Division, ESCAP

Context

• At the current pace of progress, Asia-Pacific will miss all the SDGs by 2030

• We need to change course now

• More information on SDG Gateway: http://data.unescap.org/

Snapshot of SDG Progress: Asia and the Pacific

Source: ESCAP (2017)

Decent progress:

• Poverty eradication

• Quality education

• Affordable & clean energy

Deteriorated situation:

• Clean water and sanitation

• Decent work

• Responsible consumption and production

Very little improvement:

• Climate action

• Reduced inequalities

• Life on land

Snapshot of SDG Progress: Asia and the Pacific

Snapshot of selected issues

Regional trade and investment have expanded and intraregional trade and investment account for over 50% of the total

Reduced extreme poverty, but increased income inequality

At a cost to the environment

• CO₂ emissions• Asia is the dominant source of emissions globally

• Pollution• Asian megacities are now among the worlds worst most polluted

• Water and wastewater• Increasing groundwater stress, unsustainable withdrawals of

freshwater, and very low levels of wastewater treatment

CO₂ emissions

• Asia dominant source of CO₂ emissions from fossil fuel consumption

• Industry biggest source, followed by buildings and transport

Air pollution

• High-levels of pollution from small particulate matter (PM 2.5)

Water and wastewater

• 80-90% of wastewater in Asia is discharged without treatment

• Increasing groundwater stress with unsustainable withdrawals of freshwater.

• Gap between water supply and demand expected to be 40% in Asia in 2030

Role of ESCAP: Mainstreaming the 2030 Agenda into regional and subregional cooperation

Convening and

consensus building

Technical support and

capacity building

Policy-oriented

research & analysis

CommissionAPFSDCommittees

Implementing norms and agreements (e.g. disability, paperless trade)

Projects to build capacity Advisory services Online platforms / resource centres / toolsAdvocacy

Statistics (SDG gateway)Policy studiesResearch networksFlagship publications, e.g.: - Economic and Social Survey- Energy transition pathways- Asia-Pacific Trade and

Investment Report- Social Outlook- Asia-Pacific Disaster Report - Harnessing STI for Sustainable

Development

Action: Partnerships and role of business

SDGs cannot be achieved through public financing alone

• Achieving the SDGs will require additional resources (finance, knowledge, innovations) <=> Goal 17

• Annual investment gap has estimated at $2.5 trillion*, mainly for:

• basic infrastructure (roads, rail, ports, power, water and sanitation)

• food security

• climate change mitigation and adaptation

• health

• education

*Source: UNCTAD

How can business contribute to SDGs? (1)• Adhere to global principles for responsible business conduct:

• Global Compact, OECD MNE Guidelines, ISO 26000, ILO MNE Declaration, UN Guiding Principles on Business and Human Rights, GRI

• In core business operations

• In supply chains

• Sustainability reporting

• Invest:

• Align investment, procurement and R&D decisions with SDGs.

• Implement an internal price on carbon/GHG.

• Invest in/procure renewable energy, energy efficiency, etc.

• Produce products and services that are “green”, add social value and sustainable

How can business contribute to SDGs? (2)

• Innovate: • Seek to do new business models, products or services,

including financial instruments, that help advance sustainability / the SDGs.

• Advocate for change: • Advocate for sustainability with other business leaders (in

country and sector)

• Rally business to push for more ambitious policies.

Role of business in disaster risk reduction

• Responsible business conduct: e,g, reduce emissions to mitigate climate change, but also build resilient infrastructure, adopt appropriate building codes, help in data collection, and develop new technologies

• Adopt business contingency and continuity plans and disaster insurance throughout the supply chain

• Advocate for implementation of Sendai Framework for DRR (2016)

• Partner with government in reducing disaster risk and help out in rendering post-disaster assistance

• Tsunami monitoring by private sector shipping and platforms is a good example

Role of the shipping industry in keeping oceans clean

• Adhere to international RBC standards and principles

• Engage in tsunami monitoring

• Pursue green shipping and green ports and be a strong advocate with governments on this issue

• Limit greenhouse gas emissions and ocean water pollution, including plastics

• Implement relevant IMO conventions, such as• International Convention for the Safety of Life at Sea (SOLAS), 1974, as amended• International Convention for the Prevention of Pollution from Ships, 1973, as modified

by the Protocol of 1978 relating thereto and by the Protocol of 1997 (MARPOL)• Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other

Matter (LC), 1972 (and the 1996 London Protocol)• International Convention for the Control and Management of Ships' Ballast Water and

Sediments, 2004

What is it in for business?

• The new normal: sustainable business is good business driven by changing consumer awareness and demand.

• Without corporate sustainability there will be no future business.

• Goal of profits (for prosperity) will not be compromised but they are balanced with the goals of people (social inclusion) and planet (environmental sustainability).

• Business will not be asked to perform government roles but they can and must be strong partners in ensuring sustainability for their own survival

The United Nations engages with business as a partner in sustainable development

• At the global level: United Nations Global Compact –https://www.unglobalcompact.org

• At the Asia-Pacific level: ESCAP Sustainable Business Network (ESBN) – https:\\esbn.unescap.org

What is ESBN?• A successor of the ESCAP Business Advisory Council (EBAC) to move from talk to action

• ESBN consists of representatives of businesses in a wide range of industries and sectors from across

the Asia-Pacific region and was set up to work with ESCAP and its member governments in working

towards the 2030 Sustainable Agenda and associated Sustainable Development Goals (SDGs).

• Members of the ESBN consist of business leaders, CEOs, representatives, and experts from or

operating in regional and associate member countries/economies of ESCAP. All members conform to

and promote ethical and responsible business practices, and fully subscribe to the United Nations

principles and norms.

• The ESBN actively engages in promoting inclusive, resilient, and sustainable development through

public-private partnerships, launching, and implementing activities/projects to enable the adoption,

practice, and implementation of SDGs, particularly those in relation to their Task Forces.

• ESBN has an Executive Council (15 members) with a President (Mr. George Lam) and Vice President (Mr.

David Morris).

• Members attend ESBN meetings at own cost and costs of all ESBN activities are borne by ESBN

members but there is no membership fee. ESCAP secretariat provides secretarial support

ESBN has six task forces

- Banking and Finance Chair: Lee George Lam

- Digital Economy Chair: Phang Yew Kiat

- Disaster and Climate Risk Reduction Chair: Asif Ibrahim

- Green Business Chair: Carson Wen

- Innovation and Competitiveness Chair: Akash Bhavsar

- Youth and Women Entrepreneurship Chair: Pedro Eloy

Terms of reference of ESBN

• Act as a force of change for businesses in the Asia-Pacific region through highlighting the need for businesses to be responsible and sustainable

• Launch and implement concrete activities in the identified core areas of each ESBN Task Force through modalities such as research and publications, policy advocacy, and capacity building.

• Be a dialogue partner with governments and voice the perspectives of the business sector on inclusive and sustainable development issues.

• Contribute to ESCAP organized or sponsored conferences, meetings and events related to sustainability.

• Provide feedback and advice to the ESCAP secretariat on the business perspectives of its activities and projects upon request.

Value-added by joining forces through ESBN• What?

• Identify ways to mobilize more financing for SDG related purposes.

• Identify innovations that can advance the SDGs, and how to increase their uptake

• Advocate for ambitious policies by governments

• How?• Set up task-teams to identify SDG beneficial innovations

• Including what is preventing the uptake of such innovations, and needs for policy and industry-wide reforms (e.g. in finance, water, wastewater, energy, AI)

• Collaborate on papers and policy guides

• contribute expertise, case studies, peer-reviewing or funding

• Contribute to ESCAP projects and events to build capacity of governments

• contribute expertise, speakers, or co-funding.

Some ESBN achievements• Co-organization of annual Asia-Pacific Business Forum:

• Port Moresby, Papua New Guinea, June 2019

• Hong Kong, China, April 2018, with Cyberport.

• Dhaka, Bangladesh, February 2017, with International Chamber of Commerce Bangladesh.

• Created internet based platform for business matchmaking and disseminating marketing information among SMEs in Myanmar and Kazakhstan (Myanmar SME link > SME hive).

• "Lighting a Bright and Sustainable Future - for Timor Leste and Beyond" under the Lighting Lives project: Donated over 1000 solar lights through the UN representative office to the Prime Minister of Timor Leste, Dili, Timor Leste.

• Organized round tables and undertook policy advocacy on disaster risk reduction in Bangladesh (2013 Rana Plaza) and Nepal (2015 earthquake)

• Issued or collaborated in publications on issues such as green business, resilient business, responsible banking, benefits of TIR

Next stepsUse ESBN platform to push the sustainability agenda in the region:

• within companies

• to drive investment and innovation towards SDG needs

• to push for policy reforms to quicken the pace of change

• actively participate in key international meetings such as the Asia-Pacific Forum on Sustainable Development

Key deliverables:

• contribution to ESCAP policy papers and projects to build capacity with possible co-funding

• issuing ESBN papers or statements / commentaries

• Align task forces with SDGs and ESCAP work in key areas such as frontier technologies (5G, AI, blockchain etc.), renewable energy, water conservation, smart cities etc.

Expand membership while ensuring wider geographical and gender membership and seek synergies with other regional business platforms

• Engage Central Asia and Pacific

• More women representatives as members

• Establish linkages with ASEAN and APEC Business Advisory Councils and regional business forums such as the WEF and Boao Forum

Next steps - discussion

➢How can we best leverage ESBN knowledge, skills, networks and resources to make this happen?

• Companies designating experts and linking up to networks to contribute to task teams, publications, tools, databases, etc.

• Leveraging business membership organizations to advocate for SDGs among members and drive common SDG related statements.

• Peer inspiration for sustainability reporting.

➢What kind of membership does the ESBN need to make it happen?• Senior executives (personal membership).• Company based, rather than individual, to rally big companies.• Admission criteria? Commitment? Recognition?

➢How should ESBN link to or draw on other regional business networks or platforms?

• E.g. ICC, WBCSD, Global Compact networks, etc.

➢How to recognize and grow success?

• Performance indicators?

Thank you