Memorandum from Business Action for Sustainable
Development
KEY BUSINESS
MESSAGES
The following comments were developed by a series
of consultative groups in Johannesburg comprising members of the
International Chamber of Commerce, World Business Council on Sustainable
Development, other business organisations, industry sector associations
and company representatives participating in the World Summit
on Sustainable Development, Johannesburg 2002.
These consultative groups, organised by "Business
Action for Sustainable Development" (BASD), coordinated the
participation of business experts on the following subjects in
the plenary sessions, roundtables, panel discussions, and other
meetings that took place during the World Summit on Sustainable
Development.
GENERAL
If we are successful in the years ahead, the
Johannesburg plan of implementation establishes the enabling framework
to address global poverty and inequity, whilst at the same time
making the world more robust to the adverse impacts of climate
change, desertification and deforestation and setting the scene
to mitigate these impacts in the long term. Historical paradigms
must be overcome to achieve this—new initiatives such as
the Community Development Carbon Fund and the mechanisms established
under the Kyoto Protocol are good examples of how we can achieve
this.
Business is disappointed that there is not a
focus on creating the enabling environment for business, especially
small and medium enterprises to grow and thrive.
It is essential that we build the energy, transport
and ICT infrastructure in developing countries in order to facilitate
delivery of development goals. NEPAD provides an excellent framework
for this to be achieved for Africa.
CORPORATE GOVERNANCE
The agreements on transparency and good governance
are strongly supported as these are the norm in the business sector.
Business needs a well-defined and consistently
enforced regulatory environment in order to thrive.
With respect to corporate accountability we
welcome the thrust to enhance mechanisms to reinforce corporate
responsibility and social contributions—especially at a
local level. In this regard we see a future of corporate social
responsibility increasingly becoming core business, along with
triple bottom line management and reporting. Eg the Global Reporting
Initiative (GRI), the UNEP sectoral reports process and OECD guidelines.
At the same time we feel that not enough companies
are reporting on a triple-bottom-line basis and we need to encourage
more to be done in this regard.
Multinationals tend to be the most advanced
in corporate reporting. In fact compliance-plus is the norm for
multinationals. We need to get this accepted as a standard practice
for all businesses.
ENERGY
The agreement relating to energy is welcomed—in
particular the recognition of the need to develop all energy sources
aimed at addressing common challenges. This enables every nation
to address their energy needs in alignment with their resource
constraints whilst creating the framework to enhance access to
clean, modern, cost effective and affordable energy for those
who are currently starved of energy.
In particular the recognition of hydro as a
renewable option creates the environment for the realisation of
NEPAD's energy aspirations through the development of Southern
Africa's massive hydro resources.
With respect to the absence of a specific renewable
target, we welcome the emphasis this gives to energy access. At
the same time the strong encouragement to increase the global
share of renewable energy sources enables national targets as
an integral component of national energy plans.
AGRICULTURE
Farmers need greater market access, but the
transport and information infrastructure in developing countries
needs to be enhanced in order to maximise this opportunity.
Farmers need access to a full range of technologies
as well as the information that allows them to determine the best
combination for local conditions.
SUBSIDIES
Subsidies should not distort open markets and
where applied should enable access to energy depleted regions
and promote sustainable development.
Subsidies are generally undesirable, but where
applied must be transparent and be used with a view to catalyse
a sustainable activity. As such they should be consistent over
time and include definitive exit strategies, which will enable
the long term commercial viability of the activity subsidised.
Tax incentives, where appropriate, should promote energy that
contributes to sustainable development.
PARTNERSHIPS
Business supports partnerships as one of the
most practical means of delivering sustainable development outcomes.
Partnerships are supplementary to strong Type
I agreements, and business is supportive of partnerships as implementation
mechanisms where business can play a meaningful role.
Over 300 partnerships have come forward to BASD.
These partnerships are illustrated on the BASD website [www.basd-action.net],
the Virtual Exhibit [www.virtualexhibit.net], or were awarded
ICC/UNEP World Summit Business Awards for Sustainable Development
[www.iccwbo.org].
These 300+ partnerships are illustrative of
the thousands of diverse partnerships that business is involved
in with NGOs and other stakeholders to deliver sustainable development
solutions around the world.
Out of this wealth of partnerships, some have
come forward and submitted their initiatives directly to the UN
as Type II Summit Outcomes.
The business contribution is measured by partnerships
that deliver solutions.
CORPORATE RESPONSIBILITY
AND ACCOUNTABILITY
The interpretive statement will refer to promoting
corporate responsibility and accountability through "development
and implementation" of intergovernmental agreements.
This refers to existing agreements and is not
a call for a new international regime.
Business is part of civil society, a major group
designated by Rio Earth Summit, participating in WSSD process
constructively.
Business is already accountable to national
law (wherever it operates), customers, investors, employees, communities—this
applies to companies of all sizes, sectors and nationalities,
not just multinational companies.
Business has worked with governments, trade
unions and interest groups to develop guidelines for responsible
business conduct (U.N. Global Compact, OECD MNE Guidelines, others
on corruption, social aspects, transparency).
Business maintains and abides by numerous voluntary
policies, codes, agreements of its own (national, sectoral, international).
Despite successes, progress, more needs to be
done. Business cannot do this alone, depends upon partnerships
and an enabling framework at national, international levels in
which business will work through networks, supply chains, employees,
investors and customers, w/technologies and financial resources
at its disposal.
There are a range of indicators and vehicles
for tracking and reporting business practices (beyond internet,
publications, consumer information, etc):
— The Global Reporting Initiative.
— Emerging ISO standards.
— UNEP/business prepared 22 sectoral
reports on industry sector sustainability practices, all of which
were subject to stakeholder review.
All above are points of departure for further
elaboration and to draw in other sectors.
Business requires a clear, equitable and predictable
decision making framework in which to make long-term investments
and dedications of capital. It is not attracted to invest in countries
where regulation is lax, which would put such investments at risk.
Building, strengthening capacity in national,
local governments to develop, implement, enforce the regulatory
frameworks is the utmost priority. This is essential to local
business entrepreneurship, good business practices and foreign
investment: predictable, clear rules, consistent enforcement,
absence of corruption, an independent judiciary system, private
property systems, and strong institutions.
TRADE/FINANCE
The challenge of globalization and sustainable
development:
— Through Doha, Monterrey and Johannesburg
follow up to make the markets work for everyone, improving quality
of life worldwide.
Doha, Monterrey and Johannesburg outcomes should
be seen as a reinforcing ensemble, much greater than the sum of
their parts. (Also regional partnerships, like NEPAD)
We support the WSSD reaffirmation of:
— Millennium Declaration targets and
goals.
— Mutual supportiveness of trade disciplines,
agreements and environmental agreements and institutions.
We do not support trade distortive subsidies.
HEALTH
Business strongly supports the notion that health
is a key enabling factor for sustainable development, and supports
the WSSD outcomes which highlight the linkages between health
and sustainable development.
The draft plan of implementation rightly re-emphasizes
the need for greater access to health care systems and services.
Industry strongly supports the three pillars of sustainable development:
good governance, financing and public/private partnerships to
achieve these outcomes.
Industry has a history of partnerships facilitating
access to health care and remains committed to long term partnerships
to address health care needs.
Industry strongly endorses the vital role of
the Global Fund for AIDS, TB and Malaria and the need for continued
funding of health care infrastructure in developing countries.
Key to sustainable development in health care is the need for
continued research and development into diseases requiring vaccines,
enhanced treatments and cures. To this extent, an environment
conducive to innovation is essential.
Industry strongly supports the need for good
governance and political commitment to address health needs. These
are essential to attract short-term aid and the long-term capital
investments that are key to economic growth. Indeed, it is only
sustainable economic growth that can forever change the status
of developing countries to that of developed.
BIODIVERSITY
Business is working positively on biodiversity
issues—eg the partnership launched between ICCM and IUCN
on biodiversity and the mining sector.
Business urges governments to resolve the issues
of indigenous rights and traditional knowledge with respect to
using the products of biodiversity sustainably whilst developing
equitable benefit and access sharing regimes.
Clear, transparent, equitable and consistent
decision making frameworks are needed.
Poverty and excessive consumption are both detrimental
to biodiversity.
Business supports delinking production and negative
environmental impacts in the context of the concept of responsible
prosperity.
BIOTECHNOLOGY
Biotechnology is one critical tool in the quest
for sustainable development, and countries need to be free to
make their own choices regarding its responsible use.
While no negative health impacts have been reported,
concerns about the safety of the technology continue to be raised.
These concerns need to be addressed by scientists, government
officials and others through the provision of accurate and understandable
information and dialogue.
Recognising the adoption and near-term implementation
of the Cartagena Protocol on Biosafety, there is need to move
forward to responsibly harness biotechnology to enable more sustainable
development through applications in health, agriculture, industrial
processes and environmental remediation.
WATER
Business supports the sanitation goal and has
played a role in promoting this.
Water issues are at the very core of poverty.
Industry has been pushing hard for sanitation goals and is delighted
with the new goal to halve the number of people without access
to sanitation by 2015.
Industry does not support privatisation of water
assets, we believe that Governments should maintain the ownership
and control of water supply.
Industry does have a critical role to play in
providing innovative and least impact collection, treatment and
distribution of drinking water, as well as sanitation.
Human impact on water supply is evident through
the different "footprints" of economic activity and
also of poverty.
The provision and maintenance of water supply
and sanitation can save communities money, while at the same time
protecting health, improving quality of life and "freeing
up time" desperately needed for other activities. But water
and sanitation provision do require cost recovery—research,
technology, appropriate infrastructure require high levels of
investment. The sustainability of this basic service to address
poverty means it must be a user pays or Government funded service.
SUSTAINABLE PRODUCTION
AND CONSUMPTION
AND TECHNOLOGY
To paraphrase Nitin Desai—overcoming poverty
by 2015 must be coupled with the long term objectives of achieving
sustainable production and consumption by 2050.
Business applauds this approach as a long term
framework of regulation, investment and procurement must be put
in place to drive innovation and the decoupling of economic activity
from negative environment and social impacts. It is important
that governments help to establish baseline markets for sustainable
production and consumption and that they also help to raise awareness
of the need for action at all levels. Again this is an area of
partnership at its most fundamental.
We do not have three planets and even with the
combined financing and intellectual power of business we will
never have the resources required—we therefore have an obligation
and responsibility to reduce the impact of economic activity.
We accept this obligation with enthusiasm and look forward to
working with governments, NGOs and civil society to make sustainable
production and consumption a reality.
By recognising the different "footprints"
of production/consumption and poverty, business is determined
to help reduce the negative externalities that drain economies,
the environment and health. We need to make markets work for all
and a holistic, compassionate, multi-sectoral and long term approach
will be fundamental to delivering practical solutions.
Markets and trading patterns are already changing
to favour sustainable production and consumption and business
encourages this transition. Investment into eco-efficiency, resource
efficiency, renewable energy and energy efficiency is a dynamic
driver. The partnership approach to sustainable prosperity at
international, national and local levels must be underpinned by
sustainable production and consumption.
Our challenge lies in demonstrating the benefits
that will encourage SMEs across all sectors to embrace sustainability.
We need clear signals to the marketplace and clear signals to
the breadth and depth of industry to achieve this.
November 2002
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