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The SDGs: a corporate framework for strategic risks and growth opportunities. Alejandro Litovsky Chief Executive Earth Security Group © Earth Security Group 2018

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Page 1: The SDGs: a corporate framework for strategic risks and growth opportunities. ·  · 2018-02-09framework for strategic risks and growth opportunities. Alejandro Litovsky ... Supply

The SDGs: a corporate framework for strategic risks and growth opportunities.

Alejandro Litovsky Chief Executive

Earth Security Group

© Earth Security Group 2018

Page 2: The SDGs: a corporate framework for strategic risks and growth opportunities. ·  · 2018-02-09framework for strategic risks and growth opportunities. Alejandro Litovsky ... Supply

Who we are working with:

Earth Security Group

About us

We are a strategic consultancy helping companies, investors and governments to transition to sustainable development, using the SDGs as a business impact framework.

© Earth Security Group 2018

Page 3: The SDGs: a corporate framework for strategic risks and growth opportunities. ·  · 2018-02-09framework for strategic risks and growth opportunities. Alejandro Litovsky ... Supply

The UN Sustainable Development Goals (SDGs)

© Earth Security Group 2018

Page 4: The SDGs: a corporate framework for strategic risks and growth opportunities. ·  · 2018-02-09framework for strategic risks and growth opportunities. Alejandro Litovsky ... Supply

Negative: Material Risks

Positive: Products & Services

SDGs affecting companies’ operations and reputation.

SDGs as opportunities for innovation & growth.

Business value

1. Reputation & brand value

2. Customer value

3. Product/service innovation

4. Supply chain resilience

5. Talent development

Business value SDGs

© Earth Security Group 2018

Page 5: The SDGs: a corporate framework for strategic risks and growth opportunities. ·  · 2018-02-09framework for strategic risks and growth opportunities. Alejandro Litovsky ... Supply

Case study:

Electronics manufacturing

in South East Asia

© Earth Security Group 2018

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Global companies investing in ASEAN

What do they need to know?

1. Which SDG pressures in ASEAN are most

material to their business?

2. What positive impacts and opportunities should

the businesses prioritise?

3. How to communicate the impact and build trust

of stakeholders?

© Earth Security Group 2018

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Material SDGs for the sector ASEAN

© Earth Security Group 2018

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Aligning to SDG corporate opportunities

SDG 6: Water pollution

E&E industrial pollutants not fully regulated and pollution is increasing.

Corporate metrics: Discharge disclosure & capital investments for zero pollution.

SDG 12: E-waste

E-waste grew 63% in last 5 years - risk of extended producer responsibility.

Corporate metrics: E-waste programs & building circular supply models.

SDG 8: Decent work

ASEAN-wide decrease in worksite inspections and growth of illicit labor.

Corporate metrics: Policy for trade union freedom in supply chain.

© Earth Security Group 2018

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1. New consumer products that shape consumer values by creating an

explicit focus on decent working conditions (Fairphone).

2. Supply chain management: Global supply chain framework ensuring

worker rights to organize (IndustriALL union)

3. Business diplomacy: Industry-level collaboration with ASEAN on policy

implementation (SEZs).

Decent work

Levels of innovation

© Earth Security Group 2018

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© Earth Security Group 2018

Japan’s SDG priorities

Japan’s fish stocks are being depleted.

Half of all species overfished.

5th largest carbon emissions globally.

pledged reduction of 26% by 2030.

Japan produces the 3rd most e-waste globally,

only 25% was collected and processed in 2013.

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Business opportunity

Japan’s rollout of smart meters is creating a ¥1 trillion

market. TEPCO has installed over 10 million devices as part

of its grid modernization, developing the world's

largest IoT utility network. TEPCO will have 30 million

devices operating on the network by 2020.

NTT Docomo is partnering with the 2020 Tokyo Olympic committee, allowing consumers to drop off their old electronic devices in more than 2,400 stores across Japan. 8 tons of reclaimed gold, silver and copper from used electronics will be used to make over 5,000 Olympic medals.

In 2016, as part of Japan’s first Fishery Improvement Project (FIP), which is supported by Seiyu, Seiyu test marketed the “Tokyo Bay Sea Perch FIP” product in 4 stores in the Kanto area and received positive feedback from customers regarding the quality and price.

Energy

Telecom

Food & retail

© Earth Security Group 2018

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Conclusions

1. The SDGs help businesses understand critical challenges to their industry and explore new market opportunities for quality growth.

2. The SDGs help companies attract talent, young professionals seeking to work for companies that have a purpose.

3. The SDGs help companies to build confidence of investors, government and society that it pursues a sustainable growth path.

© Earth Security Group 2018

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Our annual report

© Earth Security Group 2018

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Thank you Alejandro Litovsky Chief Executive Earth Security Group

[email protected]

© Earth Security Group 2018