Ποιειν Και Πραττειν - create and do

5. Economics and Business: the financial world and corporate morality vis-a-vis sustainability

“The international, political, economic and financial order should not primarily reflect the claims of international trade but the need for adequate management of and equitable access to global public goods, with due recognition of environmental constraints.”

Groningen Manifesto “Sharing the Planet: Population – Consumption – Species”, June 14, 2002

Documents:
Press Release No. 02/0098

Wednesday 17th July 2002

Groundbreaking Report Challenges Conventional Wisdom on Role of Business in Emerging Markets


LONDON, WASHINGTON DC AND SAO PAULO, 17 July 2002

The role of business in sustainable development is a key element in the coming World Summit on Sustainable Development in Johannesburg. A report published today overturns conventional wisdom by showing that it does pay for businesses in emerging markets to pursue a wider role on environmental and social issues. A summary is available at Developing Value Report

Developing Value: The Business Case for Sustainability in Emerging Markets challenges the myth that sustainability is only for rich companies in developed nations, and does not apply to the private sector in the emerging markets. Based on more than 240 real-life examples in over 60 countries, the study analyzes the 'business case' for sustainability in emerging markets – the opportunity for businesses to achieve benefits such as higher sales, reduced costs, lower risks and enhanced reputation from better corporate governance, improved environmental practices, and investments in social and economic development.

Highlighting examples from businesses in Africa, Asia, Central & Eastern Europe, the Middle East and Latin America the report refutes the argument that the business case holds only in developed markets and pinpoints the many opportunities available to diverse businesses. The case studies cover all types of companies, ranging from a small Latvian dairy to an eco-tourism outfit in Peru to an aluminum smelter in Mozambique.

Examining information across six business success factors and seven sustainability factors, the report finds the greatest evidence for business benefits in emerging markets in the areas of cost reductions, productivity, revenue growth and market access. On the sustainability side, environmental process improvements and human resource management represent some of the most significant opportunities for creating value.

Developing Value aims to help business people in emerging markets identify these opportunities to increase profits by making progress on sustainability – particularly owners and managers who are relatively new to sustainability. The report finds that every kind of company can find benefits but the best opportunities will depend on the particular drivers, circumstances and priorities of a business. It also provides tools to help managers assess and construct their own case.

The report also calls on other stakeholders like government, NGOs, business customers and investors to strengthen the business case by putting pressure on companies with poor performance and rewarding those which make improvements in their sustainability activities.

www.sustainability.com/developing-value provides a searchable database of all the case studies analysed for the report and further information, including background details, best practice examples, sustainability tools and sources of expertise. As the business case is constantly evolving, reflecting changing societal expectations, Developing Value will continue to track these trends.

The report is the result of a unique collaboration between the International Finance Corporation (IFC), the private sector arm of the World Bank Group; the strategy consultancy SustainAbility; and the Ethos Institute in Brazil.

According to Peter Woicke, executive vice president of IFC, "The report makes clear that sustainability is not an all-or-nothing, one-size-fits-all proposition; that sustainability can increase all elements of the triple bottom line and contribute to the public goods realm rather than simply adding economic costs; and that sustainability is a pragmatic pursuit, not an ideological exercise. In short, this report makes the case that sustainability is about increasing opportunities, not limiting them."

Peter Zollinger, executive director of SustainAbility adds, "It is often said that the sustainability debate lacks substance. Developing Value fills this gap, providing practical examples of how companies have benefited from good environmental and social practices."

CONTACT INFORMATION:

Copies of the report are available for sale through SustainAbility at www.sustainability.com/store or through the World Bank at www.worldbank.org/publications

For further information on the report, or for press copies and/or an interview with an author, please contact:

Kavita Prakash-Mani
SustainAbility
11-13 Knightsbridge
London SW1X 7LY
UK
T: +44-207-245-1116
F: +44-207-245-1117
prakash-mani@sustainability.com

Corrie Shanahan
IFC
2121 Pennsylvania Av. NW
Washington DC 20433
USA
T: +1-202-473-2258
F: +1-202-974-4384
cshanahan@ifc.org

Nelmara Arbex
Ethos Institute
Rua Francisco Leitao, 469
Conj. 1407-CEP
Sao Paulo, SP 05414-020
Brazil
T/F: +55-11-3068-8539
Narbex@ethos.org.b



NOTES:

1.        SustainAbility is the longest established think tank and consultancy dedicated to developing the business case for sustainable development.  Based in London and New York, the company has pioneered in such areas as green consumerism and corporate reporting.  It coined the term 'triple bottom line' to describe the emerging challenge for 21st century business. www.sustainability.com
2.        The International Finance Corporation is the private sector arm of the World Bank Group. Its mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses. www.ifc.org
3.        The Ethos Institute of Business and Social Responsibility is an association of small and large Brazilian companies from a range of sectors that are keen on developing their activities in a socially responsible manner. This is achieved through a permanent process of evaluation and improvement. www.ethos.org.br
4.        The World Summit on Sustainable Development to held in Johannesburg in August 2002 will bring together governments, NGOs, businesses and others to focus on improving people's lives and conserving the natural resources. www.johannesburgsummit.org



IFC press releases are available on line at http://www.ifc.org/pressroom


NOTE:  TO PRINT THE FORMATTED VERSION OF THIS RELEASE, GO TO

O:/CPACR/PRESS/Developing Value-Press Release-020098.doc

 

Dear WSSD Participant,

It our pleasure to invite you to participate in the side event Knowledge Management for Technology Transfer & Sustainable Development.

The meeting is being organized by the World Federation of Engineering Organizations (WFEO), the International Federation of Consulting Engineers  (FIDIC) and UNEP-GEF Technology Transfer Networks (SANet).  The event will launch a WSSD Type II partnership and provide an overview of current knowledge management efforts and their coordination.  A registration form is attached.

The World Business Council for Sustainable Development is hosting the meeting at the Hilton Hotel in Johannesburg on Monday September 2, 2002 from 3:00 pm to 5:30 pm; a reception will follow.

The knowledge management partnership for technology transfer and sustainable development is a joint initiative of the FIDIC and WFEO supported by SANet.  Other organizations are invited to join by endorsing the attached registration.  Details concerning objectives, scope, and expected results of the effort are described in the registration form.

The meeting aims put the partnership in a broader development context.  It will highlight achievements, and opportunities to make a difference by assembling leaders that are involved in practical actions in technology transfer, financing and related knowledge networks.

We look forward to your active participation at the event.


Knowledge Management
for Technology Transfer & Sustainable Development

Overview of Initiatives and their Coordination

A Side Event at the World Summit for Sustainable Development

September 2, 2002

3:00 p.m. to 5:30 p.m.

Reception to follow

Hilton Hotel

Johannesburg, South Africa

 

Sponsored by:

UNEP-GEF Technology Transfer Networks,

World Federation of Engineering Organizations, and

The International Federation of Consulting Engineers

To announce the

WSSD Type II Knowledge Management Partnership

In affiliation with:

Inter Academy Panel and the Development Gateway

Hosted by:

World Business Council for Sustainable Development


- A G E N D A -

Knowledge Management for Technology Transfer & Sustainable Development

Overview of Initiatives and their Coordination

Welcome
Klaus Toepfer Executive Director – United Nations Environment Program (invited)

Expert Panel

Moderator: Jacqueline Aloisi de Larderel - Director UNEP DTIE

Mamphela Ramphela – President World Bank Global Development Gateway

The Development Gateway –  Sharing Information for Sustainable Development 

Eduardo Krieger – Co-Chair Inter Academy Panel of the National Academies of Science and Engineering, President Brazilian Academy of Sciences

Knowledge Needs for Poverty Alleviation

Sunday Dogonyaro – Executive Director NEPAD New Partnership for African Development

Networks to Meet Africa's Infrastructure Needs - invited

Hans Michael Hoelz, Chairman UNEP - Financial Initiative

Knowledge Management for Private Investment

Eigel Pederson – President - International Federation of Consulting Engineers:

Building on Local Know How

Jose Sanjuan Medem – President – World Federation of Engineering Organizations

Engineers: Partners in Knowledge and Technology Transfer

Guy Reinaud - President - Pro-Natura International

The International Center for  Carbon Sequestration – A Knowledge Initiative

Svein Tveitdal – Director - GRID-Arendal

Achieving Excellence in Information Management

Q & A

Michael Sanio - Senior Advisor KM Partnership

Concluding Remarks / Proposed Follow-up

 

Knowledge Management for Technology Transfer & Sustainable Development

Overview of Initiatives and their Coordination

Background:

In a recent speech, Kofi Annan, Secretary General of the UN, emphasized that: “The Johannesburg Summit aims to find practical ways for humanity to respond to both these challenges – to better the lives of all human beings, while protecting the environment.  The Summit also aims to move from commitments – of which we have had plenty, 30 years ago and 10 years ago – to action.  I see five specific areas where concrete results are both essential and achievable.  Water, energy, health, agriculture and biodiversity.  Five areas that makeup an ambitious but achievable agenda.  Five areas in which progress is possible with the resources and technologies at our disposal today.”

The Chairman's Summary from WSSD PrepCom II in New York highlighted that urgent actions are required to:

a) promote the development, transfer and diffusion of environmentally sound technologies to developing countries;

b) promote public-private partnerships through the provision of financial and technical assistance, and;

c) establish a mechanism for the development, transfer and diffusion of environmentally sound technologies to developing countries.

The Bali PrepCom III reiterated the need to focus on sharing knowledge and technology to meet the basic needs of people, in particular the poor.

Through the Technology Transfer Networks: www.SustainableAlternatives.net (SANet) UNEP, together with its partners, facilitates increased uptake of cleaner solutions in developing countries.  SANet enables sharing of replicable success cases related expert know-how and technology transfer planning resources.  SANet also helps to improve & disseminate feasibility assessment tools that help to validate replication opportunities for cleaner alternatives.  As a GEF supported program SANet can provide co-financing for incremental efforts to establish viability of clean technology investments and to secure mainstream financing for implementation.

SANet supports business managers and donor agencies in making better informed financing decisions regarding investments in clean technologies. It is currently focusing on manufacturing, utility and ecosystem management sectors, as they relate to biodiversity, land degradation, climate change and clean water.


- - - REGISTRATION FORM - - -

Knowledge Management for Technology Transfer & Sustainable Development

Overview of Initiatives and their Coordination

A Side Event at the World Summit for Sustainable Development

Hilton Hotel

Johannesburg, South Africa

Sponsored by:

SANet - UNEP-GEF Technology Transfer Networks, World Federation of Engineering Organizations, and the International Federation of Consulting Engineers

To announce the

WSSD Type II Knowledge Management Partnership

In affiliation with:

Inter Academy Panel and the Development Gateway

Hosted by:

World Business Council for Sustainable Development

Kindly complete the registration form for each person attending and return to fax: +011 (33.1) 44.37.14.74 or email: msanio@igc.org (Tel: 1-703-683-9530); Please copy Ryoko Fukuhara - Industry Officer - UNEP-GEF Technology Transfer Networks; rfukuhara@unep.fr

EXPERIENCES WITH AND PROSPECTS FOR ENVIRONMENTAL FINANCE FACILITIES - INVITATION TO A DISCUSSION

Date : Tuesday 27th August

Time : 14h30 to 16h00

Venue : DBSA Auditorium (Development Bank of Southern Africa, Midrand, South Africa)

At this event Josef Gamperl (KfW's Senior Environmental Advisor, Germany) will discuss KfW's  experiences with Environmental Finance Facilities  and what he feels about their prospects and roles in the future.

The event will also include a presentation by Ms Joanne Yawitch of Gauteng Province's (South Africa)Department of Agriculture, Conservation, Environment and Land Affairs on their initiative to develop a "Cleaner Production and Remediation Fund", which KfW is supporting in its development phase.

Announcement of webpage: World Summit on Sustainable Development - Business & human rights

A webpage about the World Summit has been added to the independent, non-profit Business & Human Rights Resource Website.  The address of that page is: http://www.business-humanrights.org/World-Summit-Sustainable-Development.htm

This webpage contains links to articles & reports about multinational corporations & the World Summit.  If you have any suggestions for additions to the webpage, please contact the site's manager, Christopher Avery: avery@business-humanrights.org

Christopher L. Avery
361 Lauderdale Tower, Barbican
London EC2Y 8NA, United Kingdom
Phone/Fax: (44-20) 7628-031

Business & Human Rights - Resource Website
www.business-humanrights.org
e-mail: avery@business-humanrights.org

---
30 August 2002 (Johannesburg) -- Greenpeace and the World Business Council for Sustainable Development (WBCSD) were 'fighting like cats and dogs' ten years ago in Rio, in the words of Greenpeace Political Director Remi Parmentier. On Wednesday evening, they agreed to put aside their differences for a particular occasion to join in sending one historic signal: business and the environmental community are united in demanding governments to come together around one global framework to deal with the risks of climate change.

Environmentalists want it for the planet. Business wants a level playing field that avoids the confusion of differing national implementations. And both want governments to do something.

This led to that BP and Greenpeace were able to share a platform to demand it. "Sharing platforms of course is something we do literally and figuratively" said Group Senior Advisor for BP Charles C. Nicholson, referring to Greenpeace's 1997 occupation of the Stenna Dee oil platform in the North Sea. Greenpeace Climate Policy Director Steve Sawyer responded that he was also pleased to share a different kind of platform, and he promised that unlike BP, "I won't call the police, or take out a civil suit, or try to freeze your bank accounts."

Both Greenpeace and the WBCSD ! emphasized that they are not prepared to set aside all of their differences. "This is not a merger" said Bjorn Stigson, the President of the WBCSD. And Nicholson noted that "Of course there will continue to be differences about the end points and the means, but if we keep sprinting around those differences we're never going to make any progress."

Chris Boyd, the Senior Vice President for Environment and Public Affairs at Lafarge, said that his company and those who saw themselves as proactive on climate change were particularly concerned that governments take action. "We have to ask ourselves, if there is no progress on a global framework, who will suffer most? It will be the proactive companies not the laggards."

Greenpeace is well known for its campaigns against some companies who are members of the World Business Council for Sustainable Development (WBCSD). In turn, the WBCSD is well known for advocating a free trade approach to solving environmental probl! ems, including voluntary measures that often differ radically from Greenpeace.

In their joint statement, the two adversaries said that "We both share the view that the mixed often contradictory signals sent by governments on the environment, especially on greenhouse gas emission reductions, is creating a political environment which is not good for business nor, indeed, for the future of humanity."

The standing-room only crowd at the press conference broke into applause. "We are shelving our differences on other issues on this occasion and calling upon governments to be responsible and build the international framework to tackle climate change on the basis of the UN Framework Convention on Climate change and its Kyoto protocol. We both agree this is the essential first step," said Stigson and Parmentier.

The two organizations have called for an international framework for business to be able to effectively address the risks of climate change. Stigson referred to the WBCSD position on climate negotiations that was prepared for the Marrakech conference last year: “The Kyoto Protocol contains the seeds of such a framework that can, and should be built upon”, recognizing the innovative market mechanisms being pioneered by the protocol. However the business community is a broad church and there are different views about the actions needed especially related to the Kyoto Protocol.

Dr. Jose Goldemberg, Secretary of State for the Environment in the state of Sao Paolo, Brazil, commented on new resistance that had surfaced at the Earth Summit to clear timetables and targets for renewable energy. "If you don't adopt targets and timetables, you don't signal governments. And if you don't send a signal, governments won't act and business won't act." Goldemberg also noted the importance of the Summit in particular being clear about this: "Renewables make the link between poverty and the environment."

Sawyer agreed, stating "this [the Summit] is a blunt instrument. We don't expect heads of state to unpick all the issues, but they do need to send a signal that they intend to fulfill the commitments they made ten years ago in Rio."

Remi Parmentier noted that "We will continue to have di! sagreements with many of the companies who are members of the WBCSD. We will continue to have campaigns against them and put activists on their chimneys and pipes. They will continue to call the police when we get too close. But as an advocacy group, we can find common ground."

Press contacts (Johannesburg):

WBCSD, Barbara Dubach: (27) 83 296 21 05

WBCSD, Geneviève Tremblay: (27) 83 468 8679

 

THE ROLE OF EXPORT CREDIT AGENCIES IN SUSTAINABLE DEVELOPMENT

Sunday, September 1, 2002
2-4 PM

A Discussion Panel

Hosted by:

Center for International Environmental Law (USA)
Urgewald (Germany)
Friends of the Earth Japan

Venue:

Heinrich Böll Forum
At the Civil Society Global Forum, Johannesburg Expo Centre,
NASREC, Johannesburg, South Africa

Export Credit and Investment Insurance Agencies (ECAs) play a critical role in promoting international trade and investment in large infrastructure projects in developing countries, providing financial and political support to corporations of their home countries. Holding the largest fraction of developing country debt, they have great impact on sustainable development. Yet, these bilateral, public or publicly mandated agencies are largely managed in secrecy and take little account of their support’s impacts on the local communities and their environment.   Safeguard policies and standards for ECA activities are in the process of being developed by various national governments and under the auspices of the Organization for Economic Co-operation and Development (OECD). However, a host of issues, including transparency and accountability, require further discussion. The World Summit on Sustainable Development represents an excellent opportunity for governments and civil society to share their experience and discuss ways to reform ECAs in a manner, which takes into account social, environmental and economic aspects.

Speakers include:

James Mahoney, Vice President for Engineering and Environment, US Export Import Bank, United States
Mothusi Seqhe, Transformation Resource Centre, Lesotho
Ernst Ulrich von Weizsaecker, Member of Parliament, Social Democratic Party, Germany
Representative of the Japanese Government

For more information, contact: Emilie Thenard, ethenard@ciel.org

--
Nathalie Bernasconi-Osterwalder
Senior Attorney
Center for International Environmental Law (CIEL)
1367 Connecticut Ave.  N.W.
Washington, D.C.  20036  USA
Tel.  (202) 785-8700
Fax  (202)785-8701
www.ciel.org
---

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