Challenge: Science, Technology, and Innovation and the Triple Bottom Line
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Transcript of Challenge: Science, Technology, and Innovation and the Triple Bottom Line
The views expressed in this presentation are the views of the author/s and do not necessarily reflect the views or policies of the Asian Development Bank, or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this presentation and accepts no responsibility for any consequence of their use. The countries listed in this presentation do not imply any view on ADB's part as to sovereignty or independent status or necessarily conform to ADB's terminology.
Challenge: Science, Technology, and Innovation and the Triple Bottom Line
Olivier Serrat2016
Define: Science, Technology, and Innovation
Science• The creation of
knowledge, e.g., electronics
Technology• The application of
knowledge, e.g., a smartphone
Innovation• The application of
technology, e.g., mobile banking
On Frameworks, Methodologies, Models, Processes, and Tools
• A set of assumptions, definitions, concepts, ideas, practices, principles, and values that describes a complex concept; a way of perceiving reality.
Framework
• A body of practices, procedures, and rules used by those who work in a discipline or engage in an inquiry; a set of working methods.
Methodology
• A schematic description or representation of something, especially a phenomenon or system; used to underscore important properties and/or dynamics in a process.
Model
• A series of actions, changes, or functions that produce something or lead to a particular result.Process
• All-purpose terminology for anything one uses to accomplish a task; can include the four terms mentioned above.Tool
Define: Triple Bottom LineThe "Triple Bottom Line" framework—aka "TBL", "3BL", "People—Planet—Profit", and "The Three Pillars"—owes to John Elkington.
In 1994, Elkington suggested that a company should prepare different and separate "bottom lines": the first would provide a "people" account—an indication of the company's social responsibility; the second would constitute a "planet" account—a reckoning of how environmentally conscious it has been; the third is the traditional "profit" account—the measure(s) of its profit, return on investment, shareholder value, etc.
The TBL aims to gauge the "full" cost of a company's involvement in business. A challenge is that it is difficult to compare the "people" and "planet" accounts in terms of cash; therefore, the three accounts cannot be combined and must be considered separately. One of the most established means of reporting for TBL is by means of the guidelines of the Global Reporting Initiative. (Others are The Natural Step, which involves backcasting, and ISIS—Indicators, Systems, Innovation, and Strategy.)
Dimensions of Ecological Sustainability
Environment
Society
Economy
Environment
SocietyEconomy
The relationship between three dimensions of ecological sustainability, where economy and society are constrained by environmental limits.
Sustainable development at the confluence of three dimensions of ecological sustainability. Other dimensions might be culture and future generations. To note, the institutional dimension is missing.
Viable
Sustainable
Equitable
Bearable
TBL Reporting for the Sustainable Development Goals
Sustainability is the ability of a system to last. Sustainable development is the strategic process of continuous change in the direction of sustainability.
The framework of the Sustainable Development Goals has brought together—at global level—the three commonly agreed dimensions of sustainable development; the SDGs do so in a more integrated and less asymmetrical way than the Millennium Development Goals, which were primarily a social agenda for developing countries. The expectation is that business will contribute significantly from shared imperatives, complementary strengths, and creative partnerships.Almost all societies (including government and business) aim for a combination of economic development, environmental sustainability, and social inclusion. (In the private sector, commitment to TBL entails some form of reporting.) However, specific objectives differ globally, regionally, and nationally (just as integration erodes the capacity of individual states to balance choices). As yet, no consensus has been agreed regarding tradeoffs and synergies.
The 17 Sustainable Development Goals
17 Opportunities for Investment
Unlike the Millennium Development Goals, the SDGs show appreciation of the role of business in sustainable development. They represent 17 opportunities for investment.
• To note, SDG 7 (affordable and clean energy) targets expansion of infrastructure and upgrade of technology for modern and sustainable energy services. SDG 8 (decent work and economic growth) promotes policies that support productive activities, decent job creation, entrepreneurship, and creativity and innovation, and encourage the formalization and growth of micro-, small-, and medium-sized enterprises. SDG 9 (industry, innovation, and infrastructure) is to build resilient infrastructure, promote sustainable industrialization, and foster innovation. SDG 16 (peace, justice, and strong institutions) can be advanced if business invests in post-conflict states and contribute to peace-building. SDG 17 (partnership for the goals) encourages and promotes effective public, public–private, and civil society partnerships.
Navigating the Sustainable Development Goals
Only a few large corporations have identified the tools with which to assess their impact against the SDGs. To align, cooperate, and measure they can:
Pinpoint which SDGs are most relevant to the sectors and countries they operate in.
Evaluate which SDGs they can best contribute to with high-quality products and services based on core competencies and interests.
Set strategic and sustainability priorities and associated metrics for performance and accountability; leverage genuine partnerships in support; and ramp up data and measurement capabilities in relation to coverage and frequency, communication of results in the organization, and how these feed back to strategy development.
Identify, measure, and manage significant risks and potential opportunities in relation to core products and services and the supply chain on a country-by-country basis.
The Contribution of Business to the Sustainable Development Goals
Core Business• Workplace• Marketplace• Supply Chains
Social Investment• Community
Advocacy and Policy Dialogue• Local, National, and International
Enabling Framework
Social investment includes contributions of money, time, and products or services in-kind that are not expected to generate commercial opportunities or financial returns—at least not directly or in the short term.
Top 5 Business Contributions to the Sustainable Development Goals
SDG 3
SDG 4
SDG 9
SDG 13
SDG 8
This graphic shows that SDG 8 (decent work and economic growth); SDG 13 (climate action); SDG 9 (industry, innovation, and infrastructure); SDG 4 (quality education); and SDG 3 (good health and well-being) are in declining order of perceived impact and opportunity where business sees its top 5 contributions to the SDGs.
Bottom 5 Business Contributions to the Sustainable Development Goals
SDG 14
SDG 10
SDG 1
SDG 2
SDG 11
This graphic shows that SDG 11 (sustainable cities and communities); SDG 2 (zero hunger); SDG 1 (no poverty); SDG 10 (reduced inequalities); and SDG 14 (life below water) are in declining order of perceived impact and opportunity where business sees its bottom 5 contributions to the SDGs
Top 5 Business Impacts by Industry
This graphic shows on which SDGs 10 industries believe their business will have the greatest impact. As one should expect, business is set to cherry-pick the SDGs.
Chemicals Communi-cation
Energy, Utilities, & Mining
Engineer-ing &
Construc-tion
Financial Services
Health-care
Manu-facturing
Profes-sional
Services
Retail & Consu-
mer
Techno-logy
STI in the Sustainable Development Goals
Science, technology, and innovation is the main driver of productivity, a long-term lever for economic growth, and a potentially vital force for environmental sustainability. Can STI address the challenges of development?The Addis Ababa Action Agenda agreed on 16 July 2015 identified that STI and related capacity building are essential to meet the SDGs: para. 123 called for the establishment of a Technology Facilitation Mechanism to support the SDGs, approved at the United Nations Sustainable Development Summit on 25–27 September 2015. The United Nations Climate Change Conference (COP 21) held in December 2015 proposed a framework to enhance technology development and transfer for climate action.STI features in SDG 17 (partnership for the goals) and is therefore deemed a crosscutting tool. On top, innovation is a goal in itself under SDG 9 (industry, innovation, and infrastructure); to note, Target 9.5 elevates STI beyond its status as a means of implementation under Target 17.6 and Target 17.8. Also, SDG 4 (quality education) and SDG 5 (gender equality) refer to information and communications technology; implicitly, SDG 17 recognizes ICT as essential to the effective achievement of all the SDGs.
STI for the Sustainable Development Goals
STI advances knowledge. It can play an important role in the accomplishment of many of the 17 SDGs, particularly SDG 2 (zero hunger), SDG 6 (clean water and sanitation), and SDG 7 (affordable and clean energy), per se and in ways that address the vital food–water–energy nexus, and inter alia in relation to SDG 8 (decent work and economic growth), SDG 9 (industry, innovation, and infrastructure), SDG 11 (sustainable cities and communities), SDG 13 (climate action), and SDG 16 (peace, justice, and strong institutions).
SDG 2
SDG 6
SDG 7
SDG 8
SDG 9
SDG 11
SDG 13
SDG 16
The Technology Facilitation Mechanism
• A United Nations inter-agency task team on STI for the SDGs.• A collaborative annual multi-stakeholder forum on STI for
SDGs, with the First Annual Forum on Science, Technology, and Innovation for the Sustainable Development Goals held on 6–7 June 2016.
• An online platform as a gateway for information on existing STI initiatives, mechanisms, and programs.
The Technology Facilitation Mechanism will comprise:
Among likely activities, the task team will map and update existing STI initiatives; initiate a UN capacity building program on technology facilitation for the SDGs; develop partnerships and advance fund raising; and conduct background research and develop reports in support of the Technology Facilitation Mechanism's activities.
SDG 9 et al.
SDG 9 (industry, innovation, and infrastructure) means to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation. Target 9.5 is to enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1 million people and public and private research and development spending. (Target 9.5.a looks to augment financial, technological, and technical support to African, least developed, landlocked, and small island developing countries; Target 9.5.b looks to conducive policy environments; and Target 9.5.c looks to increase access to information and communications technology.)
SDG 9 et al.SDG 2 (zero hunger) calls for increased investment in agricultural research, extension services, and technology development.
SDG 3 (good health and well-being) requires more research and development of vaccines and medicines for communicable and non-communicable diseases.
SDG 12 (responsible consumption and production) invites support to developing countries to strengthen their scientific and technological capacity to move towards more sustainable patterns of consumption and production.
The United Nations High-Level Political Forum on Sustainable Development, established in July 2013, will promote the science–policy interface. Target 17.8 of SDG 17 (partnerships for the goals) means to increase significantly the availability of high-quality, timely, and reliable data.
Mapping the Sustainable Development Goals Against Capital
SDG Eco-nomic Capital
Social Capital
Natural Capital
SDG Eco-nomic Capital
Social Capital
Natural Capital
SDG Eco-nomic Capital
Social Capital
Natural Capital
This table highlights "prevalence" at the SDG level, without consideration of second-round effects or targets.
The Economy, Society, and Natural Capital Nexus
Many economic, environmental, and social objectives have been experienced as trade-offs. But, ever more, the confluence of trends in population growth, economic activity, urbanization, and lifestyles is impacting natural resources and the environment.
There is evidence of compounded stress at global, regional, national, and local levels, reflected in scarcity of resources such as water, widespread land degradation, and the exceeding of critical global thresholds leading to disruption of earth system processes.
Combined with and exacerbating inequalities and social conflict, by-products and side-effects of current trajectories can pose insurmountable obstacles to improvements in well-being and lead to cascading risks of losing the gains achieved. The sustainable management of natural capital is critical to accomplishing the SDGs: indeed, progress towards most of them, e.g., SDG 1–6, 8–11, 13, and 16, hinges on that. So, economic and social improvements owe to natural capital but should not become self-defeating by violating the limits of the environmental resource base.
Resource Efficiency Requirements of the Sustainable Development Goals
SDG Goal Interlinkage
Resource Efficiency
Requirement
SDG Goal Interlinkage
Resource Efficiency
Requirement
SDG Goal Interlinkage
Resource Efficiency
Requirement
SDG 2–5, 8–11, 13–15
Medium SDG 9–10, 12
Very High SDG 4, 6, 9, 12, 16
Medium
SDG 1, 5, 10, 13, 15
Very High SDG 4, 10, 12, 14, 16
High SDG 9, 12–13, 15–16
Very High
SDG 5–6, 10–12
High SDG 6–8, 10, 12–13
Very High SDG 2, 6, 12, 14, 16
High
SDG 9–10, 12, 16
Medium SDG 1, 8–9, 16
Medium SDG 3–5, 8, 10–11
Medium
SDG 3, 8–10, 16
Medium SDG 1, 3, 9–10, 12–15
Very High N.A. N.A.
SDG 3, 5, 9–10, 12, 15
Very High SDG 2-6, 8–9, 13–16
Very High Because of interlinkages, policies and strategies that address single goal outcomes will bear little fruit.
Avenues for ChangeOn 30 October 2015, an Expert Group of the European Commission on "Follow-Up to Rio+20, Notably the SDGs" delivered a report on the role of STI policies to foster implementation of the SDGs. It identified three avenues for change:
• Switch the Focus—reorienting mindsets and behaviors towards sustainable development, reframing the European Union's STI challenges, and refocusing from technology transfer to building innovation capacity.
• Strengthen Partnerships—enhancing engagement with developing countries in existing EU instruments, engaging all stakeholders (especially the private sector), and developing tailor-made international STI initiatives.
• "Walk the Talk"—addressing systemic causes of implementation gaps; ensuring domestic integration of the SDGs in/with STI; improving policy coherence; building up opportunities to benefit from the "data revolution"; and setting up monitoring, evaluation, and assessments of STI for sustainable development.
STI 2.0The SDGs, notably SDG 9 (industry, innovation, and infrastructure), signal the ambition to leverage STI. There is certainly a place for STI in the SDGs—and the report of the Expert Group of the European Commission is uplifting reading—but the narrative must veer away from simplistic notions of technology transfer, dissemination, and absorption.
The proponents of STI have ignored the political economy: Who gains? Who loses? How can one navigate differences? Little attention has been paid to local actors, viz., communities, government bodies, nongovernment and civil society organizations, the private sector, research institutes, and universities. Discounting obvious winners, one must know who is not given the chance to create, access, use, and benefit from STI.
The resilience of the "technology transfer" mentality owes also to the political economy of development assistance, viz., cultural, economic, institutional, intellectual, and political interests. Who, exactly, is pushing for a technology solution? Why?
Reclaiming InnovationInnovation is credited with attributes it does not have: innovation is not an event, a challenge, a moment, a product, or a solution; it is a process that can actually be technology-agnostic. Instead of creating and distributing more products we need to think more about tweaking processes in frugal improvements and adaptations. Science and technology may help but this will not necessarily be the case.
The closer innovation is to local challenges the more likely it is to be successful. So, there must be a strong focus on end-users: they must frame the problem, define and shape innovation over time, and make it more inclusive and fit for purpose. Toward this, with appreciative inquiry, we need to revisit knowledge of what has worked—how, when, where, why, and for whom—and what has not. We can also look at old ideas and things that were innovated long ago in new contexts. We must enlarge the space for dialogue and listen more.The most innovative thing to do may well be to fortify political will.
A Framework for Harnessing STI for Sustainable Development
Identifying Needs, Drivers, and Priorities
Researching• Natural Sciences Research• Social Sciences Research
• Innovation and Technology Development
Linking Knowledge to Action Executing
<---------- Building Capacity Across Activities and Scales ---------->
Enriching Policy with Research
Political Context
Political structures and processes, institutional
pressures, prevailing concepts, policy streams and windows,
etc.
LinksPolicy makers and other
stakeholders, relationships, voice trust,
networks, the media, other intermediaries, etc.
EvidenceRelevance,
methodology, credibility,
communication, packaging, use, etc.
External Influences
International factors, socioeconomic and cultural influences, civil society, donor policies and research-funding instruments, etc.
Campaigning and Lobbying
Analysis and Research
Scientific Information Exchange and Validation
High-Level Research Priorities for STI
The Role of Culture, Values, and Behavior in Sustainable Development
Sustainable Consumption and Production
Vulnerability and Resilience of Socio-Ecological Systems
Governance Institutions for Transitions Toward Sustainability
Inequality
Multidimensional Poverty
Video #1: The Global Reporting Initiative
Video #2: The 2015 Sustainability Report
Video #3: The Degradation of Ecosystems in Asia-Pacific
Video #4: What is Natural Capital?
Video #5: On Environmental Valuation
Video #6: ADB's Environment Operational Directions
Video #7: Green Growth: Toward More Sustainable Development
Video #8: The Debate on Degrowth
Further Reading• ADB. 2007–. ADB Sustainability Reports. Manila.
www.adb.org/documents/series/adb-sustainability-reports
• ——. 2008. Linking Research to Practice. Manila. www.adb.org/publications/linking-research-practice
• ——. 2010. Enriching Policy with Research. Manila. www.adb.org/publications/enriching-policy-research
• ——. 2011. ADB Sustainable Development Timeline. Manila. www.adb.org/publications/adb-sustainable-development-timeline
Further Reading• ADB. 2012. World Sustainable Development Timeline. Manila.
www.adb.org/publications/world-sustainable-development-timeline
• ——. 2012. Business Model Innovation. Manila. www.adb.org/publications/business-model-innovation
• ——. 2012. Innovation in the Public Sector. Manila. www.adb.org/publications/innovation-public-sector
• ——. 2013. The Millennium Development Goals in Asia and the Pacific: 12 Things to Know. Manila. www.adb.org/features/12-things-know-about-mdgs-asia-and-pacific
Further Reading• ADB. 2016. Sustainable Development Goals. Manila.
www.adb.org/site/sdg/main
• International Council for Science. 2005. Harnessing Science, Technology, and Innovation for Sustainable Development. A Report from the ICSU-ISTS-TWAS Consortium Ad Hoc Advisory Group.
• PricewaterhouseCoopers. 2015. Make It Your Business: Engaging with the Sustainable Development Goals.
Further Reading• European Commission. 2015. The Role of Science, Technology,
and Innovation Policies to Foster the Implementation of the Sustainable Development Goals. Report of the Expert Group "Follow-up to Rio+20, notably the SDGs". Brussels. dx.doi.org/10.2777/615177
• United Nations Environment Programme. 2015. Policy Coherence of the Sustainable Development Goals: A Natural Resource Perspective. Nairobi.
• UN. 2015. Transforming Our World: the 2030 Agenda for Sustainable Development. New York: United Nations. sustainabledevelopment.un.org/post2015/transformingourworld
Further Reading• Johan Oldekop et al. 2016. 100 Key Research Questions for
the Post-2015 Development Agenda. Development Policy Review. Vol. 34, No. 1, pp. 55–82.
Videos• ADB. 2015. The Global Reporting Initiative. Manila.
vimeo.com/122403072• ——. 2015. The 2015 Sustainability Report. Manila.
vimeo.com/122403074• ——. 2014. Green Growth: Toward More Sustainable
Development. Manila. vimeo.com/123079785• ——. 2014. ADB's Environment Operational Directions, 2013–
2020. Manila. vimeo.com/123079786• ——. 2014. The Debate on Degrowth. Manila.
vimeo.com/123079787
Videos• ADB. 2014. What is Natural Capital? Manila.
vimeo.com/123828077• ——. 2014. On Environmental Valuation. Manila.
vimeo.com/123828078• ——. 2014. The Degradation of Ecosystems in Asia and the
Pacific. Manila. vimeo.com/123828081• ——. 2016. The ADB Sustainable Development Timeline.
Manila. reflections.adb.org/• ——. 2016. ADB: Reflections and Beyond. Manila.
vimeo.com/user26371068
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