Delivering on theSustainable DevelopmentGoals: The inclusivebusiness approach

WBCSD issue brief – March 2016

The Sustainable Development Goals (SDGs)

Opportunity for businesses to engage more deeply as a strong and positive influence on society

As an engine of economic growth and employment and a source of technology and innovation, business has a critical role to play and a self-interest in contributing to delivering the SDGs

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WBCSD and the SDGs agenda

WBCSD: strongly engaged in translating the SDGs’ ambitions and words into business action underpinned by business solutions

Tangible example: inclusive business – ventures that go beyond philanthropy by integrating low-income communities into companies’ value chains as customers, suppliers, retailers, and distributors

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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

Business case – 1

US$2.3 trillion spent on food and beverages alone

1.7 billion people live in congested urban environments2.8 billion people live in vast rural areas

44% are under age 2061% are under age 30

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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. Theyenhance 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.

Business case – 2

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Inclusive business linkages to SDGs – 1

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Inclusive business linkages to SDGs – 2

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Inclusive business linkages to SDGs – 3

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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

• 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...

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WBCSD and inclusive business

Advocate business

perspectives

Illustrate best practices &

lessons learned

Develop toolkits & training

programs

Identify & broker

opportunities

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WBCSD also seeks to leverage partnerships and policies for action at scale

Download the issue brief at:

www.wbcsd.org/social-impact.aspx

www.inclusive-business.org