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Jerry VelasquezUNISDR secretariat Asia Pacific

www.unisdr.org

DRR Matters to Business:

Public Private Partnership in Disaster Risk Reduction in Asia and the Pacific

APEC Task Force for Emergency Preparedness – Public Private Partnerships and Disaster Resilience Workshop 2010

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This presentation

• UNISDR Regional Review on PPP for DRR

• Kuala Lumpur Action Plan on PPP

• UNISDR strategy on engaging with private sector on DRR

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Why DRR matters to Business?

“Unfortunately, natural hazard risks are not yet in the mind of CEOs but if we manage to bring this topic to the top-level, behaviour will change quickly because they will see how natural hazards affect their supply chains.”

Jo da Silva, Arup

Business case for Investment in DRR• Strenghten local relationships• Reinforce brand, reputation, values• Staff development• Direct business opportunites• Business development

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UNISDR strategy to engage with the Private Sector

Why?

The Private Sector is a powerful social and economic driver at the local, national and international level. National and multinational companies provide economic value to national GDP that exceeds external development assistance.

“A global programme for disaster risk reduction -- it’s not just a question for the UN, it’s a question for governments, businesses and every day people working in concert.”

Margareta Wahlström,

Special Representative of the UN Secretary-General on Disaster Risk Reduction.

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• Objective: develop an action plan that facilitates PPPs for DRR in East Asia

• Expected outputs of the review

a report of the current state of PPP for DRR in East Asia recommendations for strengthening PPPs for DRR an action plan and preliminary budget for promoting PPPs for

DRR

• Methodology: desk review, case studies, consultations with stakeholders in the region

• Geographical scope: Bangladesh, Bhutan, Cambodia, India, Japan, Korea, Malaysia, Myanmar, Nepal, Philippines, Thailand, Vietnam, Singapore, and Sri Lanka

523 March 2009 Meeting of the ISDR Asia Partnership

2009 Stocktaking reviewThe status of PPPs for DRR

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Main findings: Status of PPPs for DRR in the region

• Large number of companies seems to be involved in DRM

• Main areas of involvement: unilateral projects in disaster relief, response preparedness, business continuity planning

• Few examples of company-government partnerships

• Business champions: finance & insurance, ICT & telecom

Awareness and understanding of the concept of DRR and of the potential role business can play in this area is lacking

623 March 2009 Meeting of the ISDR Asia Partnership

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• Malaysia – Mercy Malaysia

– Corporate partners contribute to DRR and response preparedness

– Plans for strategic partnerships in disaster preparedness

– UEM Group Malaysia: volunteering program

• China – UNDP

– Corporate partners contribute to disaster relief and response preparedness

– Plans for strategic involvement in DRR

– Nokia Siemens Network: MOU for disaster rehabilitation and reduction

• Sri Lanka – Disaster Management Center

– MOU with telephone service providers to build early warning systems

– Plans to expand business involvement for micro-insurance pilot scheme and flood preparedness projects

Case studies of business involvement

723 March 2009 Meeting of the ISDR Asia Partnership

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Main findings: Legal and institutional framework

• Almost all countries in the region have progressed in setting up frameworks for multi-stakeholder cooperation in DRR

• Only few have a achieved a stage where these frameworks are used in promoting collaborative action on DRR

• Main focal points for business engagement: UN, NGOs and NPOs, corporate networks

Commitment needs to transform into action

823 March 2009 Meeting of the ISDR Asia Partnership

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• China CSR Guidelines for SOEs (State Council):

– “In the case of serious natural disasters or sudden events, state-owned enterprises shall provide financial, material, and human resource aids and supports to those suffered from such natural disasters or sudden events.”

• National Disaster Management Authority (NDMA) of the Government of India

– formulated clear vision and goals for corporate sector involvement

• Japan Central Disaster Management Council

– Business Continuity Planning guideline

– Business Continuity Advancement Organisation (BCAO) annual awards

Country best practice examples

923 March 2009 Meeting of the ISDR Asia Partnership

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• Lacking awareness and understanding of DRR

• Little understanding of PPPs for DRR

• Attitudes and perceptions

• Lacking demonstration of the business case for corporate sector involvement

• Lack of resource commitments

• Reliance on public funding

Challenges of PPPs for DRR

1123 March 2009 Meeting of the ISDR Asia Partnership

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Recommendations for strengthening PPPs

• Build understanding of the DRR concept

• Raise awareness of the importance of PPPs for DRR

• Demonstrate the business case for private sector involvement in DRR and help business understand its potential role in DRR

• Improve understanding on side of the public sector: establish realistic view of potential business contributions

• Private sector views and expertise need to be channelled into DRR processes

• Set up institutional homes for private sector engagement

1223 March 2009 Meeting of the ISDR Asia Partnership

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KL Action Plan on PPP

• Asian Ministerial Conference on Disaster Risk Reduction (3rd AMCDRR) successfully held in Kuala Lumpur from 1 – 4 December 2008 with the cooperation of Conference Partners. There was a called for the preparation of Regional Action Plan and the Kuala Lumpur Initiative on Public-Private Partnerships for Disaster Risk Reduction within the main outcome, the Kuala Lumpur Declaration on Disaster Risk Reduction. These plan shall be spearheaded by the the ISDR in collaboration with the members of IAP, the Governments of Malaysia, India and Republic of Korea as the Conference hosts of Asian Ministerial Conference on Disaster Risk Reduction. The Regional Action Plan and Kuala Lumpur Initiative on Public-Private Partnership for Disaster Risk Reduction will further enhance implementation of the Hyogo Framework for Action.

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Actions so far

• In preparing the proposal, a matrix of key actions recorded within the Kuala Lumpur Declaration on Disaster Risk Reduction, was cross-referenced against key priorities of the Hyogo Framework for Action to ensure compatibility (Appendix 1). Based on the stakeholder inputs, it is proposed that the development of guideline and good practices to promote public private partnerships within the region.

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Malaysia have reported the following

• Public-private partnerships in high technology and scientific application – Malaysia Emergency Response System (MERS) 999 for the public by Telekom

Malaysia;– Fixed-Line Alert System (FLAS) for the dissemination of tsunami alert by Telekom

Malaysia; and– Government Integrated Radio Network (GIRN) by SAPURA– Climate change adaptation by the Ministry of Natural Resources and Environmental,

Ministry of Energy, Water and Communication, etc...• Public-private partnerships in engaging the media including government’s and

private media to enhance disaster preparedness and response – Ministry of Communication-RTM and private experiences, etc...

• Public Awareness, Capacity Building and Education– SEADPRI-UKM, Malaysia Meteorological Department, Ministry of Health, other

universities and non-government organisation experiences, etc...• Mobilising Resources

– Micro-finance - Ministry of Finance, Central Bank of Malaysia, Co-operative Organisation/Society, Government Linked Company

– Corporate philantrophy, corporate social responsibility – Corporate Responsibility Institute, business council, Private sectors (Khazanah Nasional Petronas, UEM), etc...

• Involvement and Empowerment of Local Governments and Civil Society– MERCY Malaysia– Malaysian Red Crescent Society (MRCS), etc...

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UNISDR strategy to engage with the Private Sector

How?

Engage Private Sector entities in Public-Private Partnerships (PPP) to promote disaster risk reduction and mobilize resources through:

• core business arrangements for joint actions

• corporate social responsibility (CSR) and philanthropy

• knowledge transfer

• Hyogo Framework for Action (HFA) for Business

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Core Business arrangements for joint actions

Based on a model of partnership that supports partner collaboration to create employment and foster entrepreneurship, contribute to economic growth, implement social, environmental or ethical standards and provide appropriate and affordable goods and services.

In practical terms, UNISDR will link individual companies such as New Market/Small Equity Initiative to designated projects and products.

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Corporate Social Responsibility and Philanthropy

Based on a model where business provides financial support, contributes volunteers or expertise, or makes in-kind contributions, including product donations.

In practical terms, UNISDR will engage with select private sector entities and a foundation which have been approached on the basis of interest in specific UNISDR proposals for support in key impact areas.

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Knowledge Transfer

Contributes to learning about disaster risk reduction among private sector partners to encourage and support leadership in championing, advocating for, and contributing to information exchange and learning on disaster risk reduction.

In practical terms, UNISDR will seek to partner with public-private sector companies to further learning on DRR for among others international financial institutions.

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Hyogo Framework for Action (HFA) for Business

Committing private sector to self-monitored quality standards in recovery and reconstruction to help build national and local capacities in business for risk assessment and risk reduction.

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Private Sector Advisory Group

Acknowledging the critical role the private sector plays in an effective disaster risk reduction strategy, the UNISDR Private Sector Advisory Group brings together leading global private sector actors which are aware of the benefits preventive actions have to their businesses and thus demonstrate their will to cooperate closely with the UNISDR to make the world more resilient to disasters.

The UNISDR Private Sector Advisory Group members will:• Advise the UNISDR with their practical expertise in the field of disaster risk reduction• Complement UNISDR’s disaster risk reduction efforts by bringing in new ideas from the private sector• Assist the UNISDR’s efforts of capacity-building in disaster-prone areas• Review and counsel on UNISDR strategic publications such as the mid-term HFA review due in autumn 2010• Support the UNISDR to secure the necessary funds from the private sector for future projects

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Cross-industry coalition Collaborate with other key industries (such as insurance, utilities, ICT, tourism,

etc.) to build a cross-industry coalition for disaster risk management, showcasing commitment to reduce risk in a context of climate change

Safe schools and hospitals within the disaster resilient cities campaign

Provide expertise and resources in such areas as building code enforcement, land use regulations and retrofitting

International Day for Disaster Reduction, 13 October Awareness raising, involving countries and citizens from ASEAN, South Asia and

Pacific

2011 Global Platform, May 2011, Geneva Strengthens ISDR system to sustain world-wide momentum to build the resilience

of nations and communities to disasters.

2011 Global Assessment Report on Disaster Risk Reduction Support publication, translation and global launch process

Climate Change and DRR, 4AMCDRR Provide technology support to national governments on early warning, modeling, hazard,

vulnerability and risk assessments

Opportunities to engage

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http://www.safe-schools-hospitals.net/

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Safe Schools and Hospitals• Adopt a school or hospital/health clinic• Support national awareness campaigns

– Pakistan– India– Thailand– Cambodia– Philippines– Indonesia– Lao PDR– China

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http://www.amcdrrkorea.org/

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“Private Sector Activities in DRR” (2008) - a compilation of 17 good practices across countries

“The Development of a PPP Framework and Action Plan for DRR in Asia” (2009) - regional case studies and action planning in Asia

References…

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Thank youUnited Nations, secretariat of the

International Strategy for Disaster Reduction