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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 missionAccelerate progress to a world where more

sustainable companies are recognized and rewarded, and therefore are more successful

200 globalmember

companies

$9tn Aggregaterevenue ofmembers

19m Employeesin WBCSD member

companies

The World Business Council for

Sustainable Development (WB C S D )

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

W h 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

W h a t a r e t h e S D G s ?

Complex & Detai led

• 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 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.

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W h 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

W B 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

W B 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

W B C S D ‘ s S t a n c e o n t h e S D G s

CapturingOpportunities

• 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

W B 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

W B 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

W B C S D ‘ s S t a n c e o n t h e S D G s

www.sdgcompass.org

W B 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

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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 2061% are under age 30

The business case for IB

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It encourages innovationFrom marketing to transportation to

product design, inclusive businesses find innovative approaches to serve BoP customers. It’s a

competitiveadvantageInclusivebusinesses 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 strategySourcing 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

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WBCSD approach

Advocate business

perspectives

Illustrate best practices &

lessons learned

Develop toolkits & training

programs

Identify & broker opportunities

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Download the issue brief at:

www.wbcsd.org/social-impact.aspx

www.inclusive-business.org

Thank you

Karolina Södergrensodergren@wbcsd.org

www.inclusive-business.org

www.sdghub.com

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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 BoPconsumers

• 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.

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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 opportunitiesSpending power

ConclusionIn 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!

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