DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

“UNEP and the Global Compact”

Jacqueline Aloisi de Larderel, DirectorUNEP Division of Technology, Industry and

Economics(DTIE)

Presentation at OECD Roundtable on Global Instruments for Corporate Responsibility,

Paris, 19 June 2001

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

The Global Compact

Shared Values for the Global Market Promoting Responsible Global Citizenship

“…let’s choose to unite the powers of markets with the authority of universal ideals. Let us choose to reconcile the creative forces of private entrepreneurship with the needs of the disadvantaged and the requirements of the future generations…”

Kofi Annan

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

The Global Compact

Vision:To work towards a more stable and

inclusive global market by encouraging the international business community to

build universal principles into its strategic vision and daily practices

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

The Global Compact

Nine principles:

human rights (HCHR)labour (ILO)environment (UNEP)

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

The Global Compact

human rights - support and respect the protection of

international human rights within their sphere of influence; and

- make sure their own corporations are not complicit in human rights abuses

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

The Global Compact

labour - freedom of association and the effective

recognition of the right to collective bargaining- the elimination of all forms of forced and

compulsory labour- the effective abolition of child labour; and

- the elimination of discrimination in respect of employment and occupation

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

The Global Compact

environment - support a precautionary approach to

environmental challenges;- undertake initiatives to promote greater

environmental responsibility; and- encourage the development and diffusion of

environmentally friendly technologies

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

The Global Compact

Strategic goals:make the nine principles of the Global

Compact part of corporate activity everywhere

offer a platform for dialogue and action in support of the nine principles and broad UN goals

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

The Global Compact Approach:

expanding the circle of companiesadvancing effective application of the

principles through:promoting cooperation between business,

labour and civil society organisationsencouraging innovation and experimentationsharing experiencescommunicating results and reporting

not an endorsement of companies

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

The Global Compact

Indicators of success:international business community

embracing the nine principlescorporate ‘transparency’ through

reportingstrengthening UN capacity to work and

undertake joint efforts with business community and other social partners

“success must be demonstrable just as failure must be transparent”

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

The Global Compact

Core activities:learning (company submission,

comments, best practices) dialogue (cross-cutting challenges,

build on other initiatives)projects

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

The Global Compact

a partnership between the UN and business

labour and NGOs involved to help strengthen roots of Compact, in particular by:discussing company submissionsparticipating in thematic dialoguesjoining companies in partner projects with

UN

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

UNEP’s contribution to the Global Compact

Voluntary Initiatives in various industry sectors Engaging stakeholders: a programme to build

multistakeholder dialogue Global Reporting Initiative Reaching out to industry associations

“it’s not just desirable for business to get involved in the quest for sustainability, it is essential…” Klaus Töpfer

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

UNEP’s contribution

Voluntary Initiatives:Financial Services Initiatives

Financial Institutions Insurance

Tour Operators InitiativeAdvertising InitiativeMobility ForumGlobal e-Sustainability Initiative

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

UNEP’s contribution

Engaging stakeholders:to help build a multistakeholder dialogue on

sustainability issuesrelevant publications (recent titles):

- The Oil Sector Report: A Review of Environmental Disclosure in the Oil Industry (1999)

- Life and Science Report (2000)- The Global Reporters: an international

benchmark survey on reporting (2000)- Automotive industry (forthcoming)

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

UNEP’s contribution Global Reporting Initiative:

convened by Coalition for Environmentally Responsible Economies (CERES) and UNEP

established in ‘97 to design globally applicable guidelines for preparing enterprise-level sustainability reports

June 2000 - revised Guidelines published2001: regional outreach, sectoral revision of

Guidelines, structured feedback, preparations for permanent GRI institution

involvement of the ILO and OHCHR

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

UNEP’s contribution

Outreach to industry associations, consulting with private sector and non-corporate stakeholders:

UNEP Consultative Meeting with Industry Associations - annual event in Paris

preparations for WSSD/Rio+10, in cooperation with fellow UN agencies and NGOs

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

The Global Compact and other global

instruments All voluntary efforts to promote

corporate accountability and sustainability

Complementary efforts Specific features of the Global Compact:

global: all parts of the world, MNEs and SMEsfocussed: three core areasnetwork-basedNGO involvement / multistakeholder process

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

Developments since Davos

High level launch: New York, 26 July 2000

Various national and regional events First Issues Dialogue on Business in

Zones of Conflict, New York, 21-22 March 2001

UNEP roundtable on the “Global Compact in Practice”, Nairobi, 3-4 February 2001

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

Next key steps

October 2001: review of business case studies, Warwick, U.K.

September 2002: WSSD, Johannesburg, South Africa

DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

For more information, visit:

www.globalcompact.org www.unep.org

www.uneptie.org