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New Global Commission to Put Business at the Centre of Sustainable Development

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Commission of business, labour and civil society leaders, established by Unilever CEO Paul Polman and former United Nations Deputy Secretary General Mark Malloch-Brown, will highlight the massive rewards to businesses who take a lead in poverty reduction and sustainable development. Businesses which join global efforts to end extreme poverty and protect the planet’s finite natural resources can reap great rewards and protect their long-term performance, a proposition that will be tested by a new commission launched today at the World Economic Forum.

Created by the former United Nations Deputy Secretary General Mark Malloch-Brown and Unilever CEO Paul Polman, The Global Commission on Business and Sustainable Development will work over the next year to articulate and quantify the compelling economic case for businesses to engage in achieving the Sustainable Development Goals (SDGs), including:

·         Significant economic rewards – through new markets, investment opportunities and innovations – if the world tackles challenges including poverty, inequality and environmental stress

·         Risks to business performance and stability, and increased fragmentation, resource competition and fragility, if the world fails to address these risks

·         The necessity to work with governments, international organisations and civil society in order to build a future where businesses can perform – with inclusive, sustainable growth and widespread job creation

 

The Global Commission brings together international leaders from business, labour, financial institutions and civil society. They will present a comprehensive report in one year’s time, outlining new business and financial models, as well as market opportunities for companies who are invested in sustainable approaches.

Since 2000, the world has seen extreme poverty more than halved.  Business – which provides 60% of GDP, 80% of inward capital flows and 90% of jobs in developing countries – has been central to this success story, but can play a greater and more constructive role in realising growth and development opportunities.

“A massive prize awaits business if it successfully ushers in an era of shared prosperity and increased sustainability,” said Commission Co-Chair Mark Malloch-Brown. “Governments and international organizations alone cannot build the future we need. Business is the key to accelerating the transition.”

“There is no business case for enduring poverty. We have an opportunity to unlock trillions of dollars through new markets, investments and innovation – but to do so, we must challenge our current practices and address poverty, inequality and environmental challenges. Every business will benefit from operating in a more equitable, resilient world if we achieve the Sustainable Development Goals,” said Unilever CEO Paul Polman.

“There is a case to be made that vast economic incentives exist for changing business as usual,” said Sharan Burrow, General Secretary of the International Trade Union Confederation. “Business can create the fair wage jobs to propel societal development that leaves no one behind.  Business innovation can deliver the technological advancements needed to achieve an efficient, net zero emissions economy.  And business and society could both win, if more businesses recognize this and act upon it.”

Commission members:

In addition to co-founders Mark Malloch-Brown and Paul Polman, members of the Commission include:  Laura Alfaro, Professor, Harvard Business School, Peter Bakker, President, World Business Council on Sustainable Development (WBCSD); Sharan Burrow, General Secretary of the International Trade Union Confederation (ITUC); Bob Collymore, CEO of Safaricom; John Danilovich, Secretary General of the International Chamber of Commerce (ICC); Hendrik du Toit, CEO, Investec Asset Management; John Fallon, CEO of Pearson PLC; Ken Frazier, CEO of Merck & Co.; Mo Ibrahim, Founder of Celtel and the Mo Ibrahim Foundation; Donald Kaberuka, President, African Development Bank; Sam Mostyn,President of the Australian Council for International Development (ACFID);  Roberto Oliveira de Lima, CEO of Natura; Dr. Amy Jadesimi, Managing Director and CEO of Lagos Deep Offshore Logistics Base (LADOL); Lise Kingo, Executive Director of the United Nations Global Compact; Arif Naqvi, Founder and Group Chief Executive of The Abraaj Group; Vineet Rai, Co-Founder and Chairman, Intellecap and Gavin Wilson, CEO of IFC Asset Management Company LLC.

Mark Malloch-Brown will act as the Co-Chair of the Commission, while Jeremy Oppenheim – who led the development of the influential New Climate Economy report – will act as Program Director.

The Global Commission on Business and Sustainable Development:

The Global Commission has been created to do five things:

 

·         First, to decode the SDGs and show why it makes sense for business to engage on sustainable development at a far more strategic level than it has to date.

·         Second, to show how new business models can align profitability with social purpose.

·         Third, to map out how new financial tools can crowd in private capital and align economic and social returns.

·         Fourth, to show how business, government, and society can work effectively together to build the partnerships needed for SDG delivery.

·         Fifth, to quantify the efficiency gains in achieving sustainable development if business is fully aligned with the SDGs.

 

The Commission will conduct foundational research, and engage in fact-finding dialogue with a diverse cross-section of key stakeholders, including business leaders, investors, civil society representatives, social entrepreneurs and academic experts. 

The initiative aims to explore current and future disruptive business models, understanding what they mean for sustainable development; and to map out new financing mechanisms the world will need to reach the SDGs. It will investigate changes in core business operations and behaviors that go far beyond traditional corporate social responsibility and voluntary partnerships.

The UN Foundation, the World Business Council for Sustainable Development, the Overseas Development Institute and The B Team are supporting the effort, to help mobilize the business community and the next generation of entrepreneurs, to support achievement of the global goals by 2030.

The Commission receives funding support from the Rockefeller Foundation, the Bill and Melinda Gates Foundation, and the governments of Australia, Denmark, the Netherlands, Sweden and the United Kingdom.

Environment

These 5 Green Office Mistakes Are Costing You Money

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eco-friendly green offices
Shutterstock Licensed Photo - By Stokkete | https://www.shutterstock.com/g/cyano

The sudden interest in green business is very encouraging. According to recent reports, 42% of all companies have rated sustainability as an important element of their business. Unfortunately, the focus on sustainability will only last if companies can find ways to use it to boost their ROI.

Many businesses get so caught up in being socially conscious that they hope the financial aspect of it takes care of itself. The good news is that there are plenty of ways to go green and boost your net income at the same time.

Here are some important mistakes that you will want to avoid.

Only implementing sustainability on micro-scale

The biggest reason that brands are going green is to improve their optics with their customers. Too many businesses are making very minor changes, such as processing paperwork online and calling themselves green.

Customers have become wary of these types of companies. If you want to earn their business, you are going to need to go all the way. Bring in a green business consultant and make every feasible change to demonstrate that you are a green organization from top to bottom.

Not prioritizing investments by long-term ROI

It isn’t realistic to build an entirely green organization overnight. You will need to allocate your capital wisely.

Before investing in any green assets or services, you should always conduct a long-term cost benefit analysis. The initial investment for some green services may be over $20,000. If they don’t shave your cost by at least $3,000 a year, they probably aren’t worth the investment.

Determine which green investments will have the best pay off over the next 10 years. Make these investments before anything else. Then compare your options within each of those categories.

Implementing green changes without a plan

Effective, long-term planning is the key to business success. This principle needs to be applied to green organizations as well.

Before implementing a green strategy, you must answer the following questions:

  • How will I communicate my green business philosophy to my customers?
  • How will running a green business affect my revenue stream?
  • How will adopting green business strategies change my monthly expenses? Will they increase or decrease them?
  • How will my company finance green upgrades and other investments?

The biggest mistake that too many green businesses make is being overly optimistic with these forecasts. Take the time to collect objective data and make your decisions accordingly. This will help you run a much more profitable green business.

Not considering the benefits of green printing

Too many companies believe that going paperless is the only way to run a green organization. Unfortunately, going 100% paperless it’s not feasible for most companies.

Rather than aim for an unrealistic goal, consider the option of using a more environmentally friendly printer. It won’t be perfect, but it will be better than the alternative.

According to experts from Doranix, environmental printers have several benefits:

  • They can process paper that has been completely recycled.
  • They consume less energy than traditional printers.
  • They use ink that is more environmentally friendly.

You want to take a look at different green printers and compare them. You’ll find that some will meet your needs as a green business.

Poorly communicating your green business strategy to customers

Brand positioning doesn’t happen on its own. If you want to run a successful green business, you must communicate your message to customers as clearly as possible. You must also avoid the appearance that you are patronizing them.

The best approach is to be clear when you were first making the change. I’ll make an announcement about your company‘s commitment to sustainability.

You also want to reinforce this message overtime by using green labels on all of your products. You don’t have to be blatant with your messaging at this stage. Simply provide a small, daily reminder on your products and invoices.

Finally, it is a good idea to participate in green business seminars and other events. If your community has a local Green Chamber of Commerce, you should consider joining as well.

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2017 Was the Most Expensive Year Ever for U.S. Natural Disaster Damage

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Natural Disaster Damage
Shutterstock / By Droidworker | https://www.shutterstock.com/g/droidworker

Devastating natural disasters dominated last year’s headlines and made many wonder how the affected areas could ever recover. According to data from the U.S. National Oceanic and Atmospheric Administration (NOAA), the storms and other weather events that caused the destruction were extremely costly.

Specifically, the natural disasters recorded last year caused so much damage that the associated losses made 2017 the most expensive year on record in the 38-year history of keeping such data. The following are several reasons that 2017 made headlines for this notorious distinction.

Over a Dozen Events With Losses Totalling More Than $1 Billion Each

The NOAA reports that in total, the recorded losses equaled $306 billion, which is $90 billion more than the amount associated with 2005, the previous record holder. One of the primary reasons the dollar amount climbed so high last year is that 16 individual events cost more than $1 billion each.

Global Warming Contributed to Hurricane Harvey

Hurricane Harvey, one of two Category-4 hurricanes that made landfall in 2017, was a particularly expensive natural disaster. Nearly 800,000 people needed assistance after the storm. Hurricane Harvey alone cost $125 billion, with some estimates even higher than that. So far, the only hurricane more expensive than Harvey was Katrina.

Before Hurricane Harvey hit, scientists speculated climate change could make it worse. They discussed how rising ocean temperatures make hurricanes more intense, and warmer atmospheres have higher amounts of water vapor, causing larger rainfall totals.

Since then, a new study published in “Environmental Research Letters” confirmed climate change was indeed a factor that gave Hurricane Harvey more power. It found environmental conditions associated with global warming made the storm more severe and increase the likelihood of similar events.

That same study also compared today’s storms with ones from 1900. It found that compared to those earlier weather phenomena, Hurricane Harvey’s rainfall was 15 percent more intense and three times as likely to happen now versus in 1900.

Warming oceans are one of the contributing factors. Specifically, the ocean’s surface temperature associated with the region where Hurricane Harvey quickly transformed from a tropical storm into a Category 4 hurricane has become about 1 degree Fahrenheit warmer over the past few decades.

Michael Mann, a climatologist from Penn State University, believes that due to a relationship known as the Clausius-Clapeyron equation, there was about 3-5 percent more moisture in the air, which caused more rain. To complicate matters even more, global warming made sea levels rise by more than 6 inches in the Houston area over the past few decades. Mann also believes global warming caused the stationery summer weather patterns that made Hurricane Harvey stop moving and saturate the area with rain. Mann clarifies although global warming didn’t cause Hurricane Harvey as a whole, it exacerbated several factors of the storm.

Also, statistics collected by the Environmental Protection Agency (EPA) from 1901-2015 found the precipitation levels in the contiguous 48 states had gone up by 0.17 inches per decade. The EPA notes the increase is expected because rainfall totals tend to go up as the Earth’s surface temperatures rise and additional evaporation occurs.

The EPA’s measurements about surface temperature indicate for the same timespan mentioned above for precipitation, the temperatures have gotten 0.14 Fahrenheit hotter per decade. Also, although the global surface temperature went up by 0.15 Fahrenheit during the same period, the temperature rise has been faster in the United States compared to the rest of the world since the 1970s.

Severe Storms Cause a Loss of Productivity

Many people don’t immediately think of one important factor when discussing the aftermath of natural disasters: the adverse impact on productivity. Businesses and members of the workforce in Houston, Miami and other cities hit by Hurricanes Harvey and Irma suffered losses that may total between $150-200 billion when both damage and sacrificed productivity are accounted for, according to estimates from Moody’s Analytics.

Some workers who decide to leave their homes before storms arrive delay returning after the immediate danger has passed. As a result of their absences, a labor-force shortage may occur. News sources posted stories highlighting that the Houston area might not have enough construction workers to handle necessary rebuilding efforts after Hurricane Harvey.

It’s not hard to imagine the impact heavy storms could have on business operations. However, companies that offer goods to help people prepare for hurricanes and similar disasters often find the market wants what they provide. While watching the paths of current storms, people tend to recall storms that took place years ago and see them as reminders to get prepared for what could happen.

Longer and More Disastrous Wildfires Require More Resources to Fight

The wildfires that ripped through millions of acres in the western region of the United States this year also made substantial contributions to the 2017 disaster-related expenses. The U.S. Forest Service, which is within the U.S. Department of Agriculture, reported 2017 as its costliest year ever and saw total expenditures exceeding $2 billion.

The agency anticipates the costs will grow, especially when they take past data into account. In 1995, the U.S. Forest Service spent 16 percent of its annual budget for wildfire-fighting costs, but in 2015, the amount ballooned to 52 percent. The sheer number of wildfires last year didn’t help matters either. Between January 1 and November 24 last year, 54,858 fires broke out.

2017: Among the Three Hottest Years Recorded

People cause the majority of wildfires, but climate change acts as another notable contributor. In addition to affecting hurricane intensity, rising temperatures help fires spread and make them harder to extinguish.

Data collected by the National Interagency Fire Center and published by the EPA highlighted a correlation between the largest wildfires and the warmest years on record. The extent of damage caused by wildfires has gotten worse since the 1980s, but became particularly severe starting in 2000 during a period characterized by some of the warmest years the U.S. ever recorded.

Things haven’t changed for the better, either. In mid-December of 2017, the World Meteorological Organization released a statement announcing the year would likely end as one of the three warmest years ever recorded. A notable finding since the group looks at global land and ocean temperature, not just statistics associated with the United States.

Not all the most financially impactful weather events in 2017 were hurricanes and wildfires. Some of the other issues that cost over $1 billion included a hailstorm in Colorado, tornados in several regions of the U.S. and substantial flooding throughout Missouri and Arkansas.

Although numerous factors gave these natural disasters momentum, scientists know climate change was a defining force — a reality that should worry just about everyone.

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