Jochen Markert, IKF Frankfurt Tracking session Jochen Markert, IKF Frankfurt.
March 2017 Newsletter final - Institute for Sustainable ......groups. Co-founded by Richard Branson...
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Visit us at www.ins+tuteforsustainableleadership.com 1 NEWSLETTER From the editor’s desk I recently opened a twi9er account (follow us on @honeybeeleaders) and have uncovered a whole new world. Much of the discussion I currently follow is about the United Na+on’s Sustainable Development Goals - from a surprising source: the leaders of big corpora+ons. Yes, big business has discovered that pursuing the SDGs is good for business, opening new markets and opportuni+es. This issue focuses on the SDGs, par+cularly in rela+on to business. Honeybee firms have always looked beyond their own boundaries developing their strategies. Gayle Avery INSIDE… Sufficiency Thinking Program Living cases Cri+cal views on the SDGs What academics write about the SDGs Business, Twi9er and the SDGs Book launch in Sydney Hear more about our research At ISL, the honeybee symbolises sustainable leadership through collabora9ve, construc9ve prac9ces, which the community values, while achieving high performance. Photo: Harry Bergsteiner Last year, the United Na+ons introduced 17 Sustainable Development Goals (SDGs) to replace the eight Millennium Development Goals (MDGs) set at the turn of this century. According to the then Secretary- General, Ban Ki-moon, the MDGs had achieved mixed success over the 15 years they were in force. Yes, the MDGs helped liY more than one billion people out of extreme poverty, made inroads against hunger, enabled many more girls to a9end school, began to protect the planet, and forged valuable partnerships in the struggle to improve the world. However, much more needed to be done to reduce inequality on many fronts. To this end, 17 SDGs were adopted for the period 2016-2030. To effect this new agenda, the UN recognised that it needed to rely on more than just governments. It needed business too for finding innova+ve solu+ons and funding the es+mated $4.5 trillion per year cost of achieving the SDGs. Beyond that, business can assist in the complex process of social and economic development - and reap many rewards from it. And business has responded enthusias+cally. According to a PWC survey in late 2016, 71% of businesses surveyed said they were planning how to get involved with the SDGs. About 41% said they would embed the SDGs into their strategy over the next five years, and 13% claimed to have already iden+fied the tools they needed to assess their impact against the SDGs. Many of these companies and related organisa+ons, such as the World Business Council for Sustainable Development, see enormous opportuni+es beckoning at the so-called “bo9om of the pyramid” (BOP) with its hidden market of about 4.5 billion people. These people, though individually poor, spend US$2.3 trillion on food and beverage each year. With business on board in implemen+ng the SDGs, the world could become a be9er place. SUSTAINABLE DEVELOPMENT GOALS WHY SHOULD BUSINESS GET INVOLVED? ISL NEWSLETTER March, 2017
Transcript of March 2017 Newsletter final - Institute for Sustainable ......groups. Co-founded by Richard Branson...
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NEWSLETTER
Fromtheeditor’sdeskIrecentlyopenedatwi9eraccount(followuson@honeybeeleaders)andhaveuncoveredawholenewworld.MuchofthediscussionIcurrentlyfollowisabouttheUnitedNa+on’sSustainableDevelopmentGoals-fromasurprisingsource:theleadersofbigcorpora+ons.Yes,bigbusinesshasdiscoveredthatpursuingtheSDGsisgoodforbusiness,openingnewmarketsandopportuni+es.ThisissuefocusesontheSDGs,par+cularlyinrela+ontobusiness.Honeybeefirmshavealwayslookedbeyondtheirownboundariesdevelopingtheirstrategies.
GayleAvery
INSIDE…SufficiencyThinkingProgram
Livingcases
Cri+calviewsontheSDGsWhatacademicswriteabouttheSDGs
Business,Twi9erandtheSDGs
BooklaunchinSydney Hearmoreaboutourresearch
AtISL,thehoneybeesymbolisessustainable
leadershipthroughcollabora9ve,construc9ve
prac9ces,whichthecommunityvalues,
whileachievinghighperformance.Photo:
HarryBergsteiner
Lastyear,theUnitedNa+onsintroduced17SustainableDevelopmentGoals(SDGs)toreplacetheeightMillenniumDevelopmentGoals(MDGs)setattheturnofthiscentury.AccordingtothethenSecretary-General,BanKi-moon,theMDGshadachievedmixedsuccessoverthe15yearstheywereinforce.Yes,theMDGshelpedliYmorethanonebillionpeopleoutofextremepoverty,madeinroadsagainsthunger,enabledmanymoregirlstoa9endschool,begantoprotecttheplanet,andforgedvaluablepartnershipsinthestruggletoimprovetheworld.However,muchmoreneededtobedonetoreduceinequalityonmanyfronts.
Tothisend,17SDGswereadoptedfortheperiod2016-2030.Toeffectthisnewagenda,theUNrecognisedthatitneededtorelyonmorethanjustgovernments.Itneededbusinesstooforfindinginnova+vesolu+onsandfundingthees+mated$4.5trillionperyearcostofachievingtheSDGs.Beyondthat,businesscanassistinthecomplexprocessofsocialandeconomicdevelopment-andreapmanyrewardsfromit.Andbusinesshasrespondedenthusias+cally.AccordingtoaPWCsurveyinlate2016,71%ofbusinessessurveyedsaidtheywereplanninghowtogetinvolvedwiththeSDGs.About41%saidtheywouldembedthe
SDGsintotheirstrategyoverthenextfiveyears,and13%claimedtohavealreadyiden+fiedthetoolstheyneededtoassesstheirimpactagainsttheSDGs.Manyofthesecompaniesandrelatedorganisa+ons,suchastheWorldBusinessCouncilforSustainableDevelopment,seeenormousopportuni+esbeckoningattheso-called“bo9omofthepyramid”(BOP)withitshiddenmarketofabout4.5billionpeople.Thesepeople,thoughindividuallypoor,spendUS$2.3trilliononfoodandbeverageeachyear.Withbusinessonboardinimplemen+ngtheSDGs,theworldcouldbecomeabe9erplace.
SUSTAINABLEDEVELOPMENTGOALSWHYSHOULDBUSINESSGETINVOLVED?
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AtAmphawaCulturalConserva9onProject:LeD:HarryBergsteiner&GayleAveryfromISLposewithDirectorKhunyingSrichalermKanjanapoobeforeseeingtherevivedcoconutsugarprocessing.Below:DrPriyanutDharmapiyaisshowntradi9onalhatweavingbyarareexpert.
SUFFICIENCYTHINKINGINSUSTAINABLEDEVELOPMENT(STiSD)OURSUCCESSFULTRIALRUN
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Realprojects,calledlivingcases,areanintegralpartoftheSTiSDprogram.Thelivingcaseswereselectedtocoverthefourkeydomainswhereoutputsaremeasuredinsufficiencythinking:economic,environmental,socialandcultural:AmphawaConserva+onProject–Culturalconserva+on+communitydevelopment,organicfarming.LaemPhakBiaRoyalProject–Environmentalconserva+on-restoringmangrovesandseaecology,recyclingwasteand
sewageforalocaltownof40,000peopleusingsimpletechnology.SampranRiversideResort–illustra+ngbusiness-drivenagriculture+communitydevelopment.Thiscaseispar+cularly
interes+ngbecauseitwasini+atedbytheprivatesector.SufficiencyschoolIni+a+ve–Educa+onforsufficiencyintroducedto23,000ofthe40,000schoolsinThailand.TheptarinHospital–Ahealthentrepreneurusedsufficiencythinkingtochallengethesystemanddevelopaninterna+onally
acclaimeddiabeteshospital.SiamCementGroup–Anexampleoflarge,publicly-listedcorpora+onfollowingsufficiencyprinciples.
ISLisdelightedtohavebeenaskedtodesigntheSufficiencyThinkinginSustainableDevelopment(STiSD)programthatThailandisofferingtoG77countriesthisMay.SufficiencythinkingunderpinsasustainabilityapproachdevelopedbyThailand’slateKingBhumibolAdulyadej,knownastheSufficiencyEconomyPhilosophy(SEP).TheSEPhaswideapplicability-fromagriculturetocommunitydevelopment,environmentalmanagement,health,educa+onandbusiness.During2016,ThailandchairedtheUnitedNa+ons’G77,whose134membercountriescomefromthedevelopingworldandincludeIndiaandChina.G77delegatesdisplayedgreatinterestinlearningmoreabouttheSEPattheseearliermee+ngs.InauguralprogramTheinauguralSTiSDprogramwillbeheldinaneco-culturalresortoutsideBangkokcalledtheSampranRiversideResort,between14-19May.TheprogramcontenthasbeencarefullycraYedtofocusontheprac+calaspectsofsufficiencythinkingoncesufficiencyconceptshavebeenexplained.Par+cipantswillbeencouragedtoapplytheirlearningsfirsttofivesuccessfulThaiprojectswheretheywillmeetanddiscusswiththeleadersofthoselivingcases.Themescoveredinclude:organicfarmingandmarke+ng,communitydevelopment,culturalconserva+on,environmentalmanagementandbusiness.Inaddi+on,delegateswillseehowThailandisreformingitsen+reschoolsystemtopromotesustainablethinkinginstudents,teachersandschooladministrators.TheywillalsolearnaboutapplyingtheSEPinahospitalsemng.Duringtheprogram,par+cipantswillbehelpedtoapplysufficiencythinkingtoasuitableprojectintheirhomecountry.TrialrunISLhasjustreturnedfromconduc+ngatrialrunoftheprogram.Duringthetrialrunweheldatrainingsessionforallspeakersandprojectdirectorstoensurethateveryoneisfamiliarwiththeprogramaimsandmethods,aswellaswiththeSEPprocessandconcepts.Afunpartwasvisi+ngthetrainingvenueanddiscussinghowtoinvolvetradi+onalThaiculturaleventslikeswordfigh+ng,bamboodancingandcumngfruitintoflowersasenergyrevivingbreaksforpar+cipants.Andofcoursewevisitedtheinspiringprojectsandmetwiththeirdirectors.
OurpartnersOnceagainISLisdelightedtobecoopera+ngwiththeThailandSustainableDevelopmentFounda+onandCollegeofManagementatMahidolUniversity,aswellaswiththeThaiMinistryofForeignAffairsviatheThailandInterna+onalCoopera+onAgency.Weareverythankfultotheirrepresenta+vesandtotheprojectdirectors,whohaveallexpressedsomuchenthusiasmfortheprogram.ScholarshipsAspartofitslegacy,Thailandisofferingscholarshipsforupto20representa+vesoftheG77countriestoa9endthefirstsix-dayprogram.
LIVINGCASESINSTIDPROGRAM
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CRITICALVIEWSONSDGsINAGENDA2030TOOBROAD,TOOCOMPLEX,TOOCONTRADICTORY
WHATACADEMICSWRITEBUSINESSANDTHESDGs
Abstractsfromar+clesonbusinessgemnginvolvedwiththeSDGsandsustainabledevelopment(SD)arelistedbelow.
DoesbusinessunderstandwhatSDisabout?
Variousauthorsques+ontheadequacyofdefini+onsofSDputforward,includingsomecontradictoryones,complica+ngbusiness’understandingofhowtoproceedwithSDGs.Forexample,RalfBarkemeyerexaminestowhatextentBrundtland’soriginalSDprinciplesares+llembeddedwithinkeybusinessguidelinesliketheUNGlobalCompact,OECDGuidelinesforMul+na+onalEnterprises,ICCBusinessCharter,CAUXPrinciples,andtheCERESPrinciples.FindingssuggestthattheseguidelinesforbusinessemphasisetheenvironmentaloversocialaspectsofSD,andfailtopriori+setheneedsofthepoorest.A9en+ontoenvironmentalaspectsstresseswin–winsitua+onsandhasaclearmanagerialistfocus;givingli9lea9en+ontomoreconceptualenvironmentalissuesconcerningsystemsinterdependencies,cri+calthresholdsorsystemiclimitstogrowth.Formoredetailsee:R.Barkemeyer,D.Holt,L.Preuss&S.Tsang.2014.Whathappenedtothe‘development’insustainabledevelopment?BusinessguidelinestwodecadesaYerBrundtland.SustainableDevelopment,22(1),15-32.
PrioriZesmustbeset
FrancescaPongiglionesaysthatbusinessesandothersmustfocusprimarilyongoalsthat,alongwithbeingendsinthemselves,alsoserveasmeansforachievingotherobjec+ves–makingthemselvesofinstrumentalvalue.Moredetailisat:
F.Pongiglione.2015.TheneedforaprioritystructurefortheSDGs.JournalofGlobalEthics,11(1),37-42.
Equalrolefortheprivatesector
Scheyvensetal.discussthechallengesthatSDGsposetobusiness.Theseincludethepoten+alformoresustainableandresponsibleprac+cesaswellasthelimitstochange.TheprivatesectorbringsstrengthsindeliveringontheSDGs,suchasinnova+on,responsiveness,efficiencyandspecificskillsandresources.Readmoreat:
R.Scheyvens,G.Banks&E.Hughes.2016.TheprivatesectorandtheSDGs:Theneedtomovebeyond‘businessasusual’.SustainableDevelopment,24(6),371–382.
Needforanawareworkforce
SustainableDevelopmentGoalswillguidetheglobaldevelopmentagendaforthecomingyears.Underthispremise,theseacademicsexploretherolethathighereduca+on(HE)hasbeenassignedincontribu+ngtosustainablehumandevelopment.ItconcludesthatthevisionofHEofferedistoonarrowandisunabletocapturetheessenceandfullmeaningofsustainablehumandevelopment.Movingawayfromproblema+cindicatorsandthresholdsthatunderstandHEasaproducerofhumancapital,theauthorsproposeplacingtheconceptofhumandevelopmentatthecentreofHE.Inpar+cular,thear+clearguesthatitsmainelements(itsnorma+veapproach,theideaofcapability,func+oningandagency)canprovideavaluableandsoundfoo+ngforamoretransforma+veins+tu+on.Readfurtherat:
A.Boni,A.Lopez-Fogues&M.Walker.2016.Highereduca+onandthepost-2015agenda:Acontribu+onfromthehumandevelopmentapproach.JournalofGlobalEthics,12(1),17-28.
While theUN’SSDGshavebeenwidelywelcomed,someexpertsarecau+oningagainsttoomucheuphoria.Omissions+tooslowDrGabriele Koehler acknowledges thattheprocessfollowedinestablishingtheAgenda2030, itsaimof transforma+onand the marriage of economic, socialandenvironmentalgoalsareimpressive.However, she ques+ons just howtransforma+ve the actual goals are.Koehler iden+fies numerous omissionsand clashes, but is par+cularlydistressedbythe+meline.Shesaysthatthe 15 year +meline means that “yetanothergenera+onistogrowupbeforeacute poverty or hunger is eradicated,maternal or child mortality reduced toa n y m e a n i n g f u l d e g r e e , o renvironmental destruc+on reversed” p.3).Koehler laments that the social and
environmentaldomainsshouldoverrideeconomic considera+ons, but do not.Finally, she concludes with a call forinjec+ng radical thinking and ac+on foreconomic, environmental and socialjus+ce subversively into the SDGs.Makethemwork!ToocomplexAnotheravenueofcri+cismcomesfromgroupssuchastheCopenhagenConsensuswhoarguethatitwouldbebe9ertoworksmarter.Insteadofchasingall169targetssetunderthe17goals,theSDGswouldhavemorechanceofsuccessiftheUNfocusedonfewertargets.AnexpertgroupassociatedwiththeCopenhagenConsensusconcludedthatiftheUNweretoconcentrate“on19toptargets,itcouldget$20to$40insocialbenefitsperdollarspent”.Thiscontrastswith
alloca+ngthebudgetevenlyacrossall169targets,whichwouldreducethees+matedreturnperdollarspenttounder$10.Simplify!SDGsarecontradictoryOtherspointoutthattheSDG’sstrategyfordevelopmentreliesonendlessGDPgrowthtoraisethestandardoflivingofthepoor,whereastheworldneedslessgrowthtobesustainable.TheSDGsarebasedonachievingmorethan7%annualgrowthinleastdevelopedcountriesandhighereconomicproduc+vityacrosstheboard.Infact,Goal8,isdevoteden+relytopromo+nggrowth.See:Koehler,G.2016.AssessingtheSDGsfromthestandpointofecosocialpolicy:UsingtheSDGssubversively.JournalofInterna9onal&Compara9veSocialPolicy,h9p://dx.doi.org/0.1080/21699763.2016.1198715.
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BeforeDonaldTrumpbroughtTwi9ertoeveryone’sa9en+on,leadersofbigbusinesswerealreadytwee+ngabouttheneedtoimprovetheworldand,inpar+cular,howtobindtheUnitedNa+ons’SustainableDevelopmentGoalsintoafirm’sstrategyanddailybusiness.TheWorldBusinessCouncilonSustainableDevelopmentsuggeststhatdoingsocouldevenhelprestoretrustinthebusinesssector(seereport).
TheBTeamisoneexample,anot-for-profitini+a+veformedbyglobalbusinessleaderstoencourageabe9erwayofdoingbusinessforpeopleandtheplanet.BTeammembersincludecorpora+onssuchasAllianz,DowChemicals,HuffingtonPost,Salesforce,Tata,Unilever,labourunionsandmanyothergroups.Co-foundedbyRichardBransonandJochenZeitz,theBTeamhasfocusedonmul+pleissues,includingrenewableenergy.TheBTeamregularlyheraldsthecertaindeathoffossilfuel-basedenergy:”Almost90%ofnewpowerinEuropewasfromrenewablesourcesin2016,asignofrapidshiYawayfromfossilfuels".Theyofferthreereasonswhycleanenergywillbeunstoppablein2017,andremindusthattosecureasustainablefutureforall,weneedearth-competentboards.
Businesshasexper+sethatcanbeusedforfinancingtheSDGs.AccordingtotheBTeam,mee+ngtheSDGswillcostbetween$90trillion&$120trillionby2030-crea+nghugeopportuni+esforfinancialservices.
InvestorgroupAbraajisamajorpar+cipant,no+ngthatthereareonly13yearstogotoachievethe
GlobalGoalsandexplainingwhythe+meisnow.
UnileverispursuingSDGsonmul+plestrategicfronts,notonlyintermsofitsproducts.Forexample,PresidentPaulPohlmanpointsoutthatlongtermmarketswouldnotonlymakefinancialsensebutareessen+alforsolvingtoday’sbigproblems.TheBTeamjoinsinthisthemebyrepor+ngMcKinsey’sreportonhowbusinessleaderscanbuildanallianceagainstcorporateshort-termism.
GenderequalityisanotherSDG.AstheAustralianCEOofKonicaMinoltatweeted:Researchshowslinkbetweengenderequality&be9erorganisa+onalperformance,thebusinesscasecanbefoundhere.TheWorldBusinessCouncilonSustainableDevelopmentislookingatthesustainabilityoffood:WBCSDandEATbringmorethan25companiestogetherinsustainablefoodprogram.
Butothercompaniesaredoingtheirpartaswell.Airbnbismobilisingitshoststoprovidetemporaryhousingforrefugeesandothersinurgentneed.Agroupofcorpora+onshassetup
theBusinessCommission,chairedbyUnilever’sPaulPohlman.TheBusinessCommission’smissionis:“tomakeapowerfulcase—supportedbysoundevidence,rigorousresearchandcompellingreal-worldexamples—forwhybusinessleadersshouldseizeuponsustainabledevelopmentasthegreatestopportunityofalife+me.”
HEARMOREABOUTISL’sRESEARCHMACQUARIEUNIVERSITYINTERVIEWSGAYLEAVERYGayleAverywasinterviewedaspartofMacquarieUniversity’sPioneeringMindspodcastseries.Youcanaccessthepodcasthere.Gayletalksabouttheconceptsbehindsustainableleadership,andsomeoftheworkthatISLhasbeendoinginThailandontheSufficiencyEconomyPhilosophy.
BUSINESS,TWITTERANDTHESDGsBIGBUSINESSISCHANGING-FAST
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ISLisdelightedtoannouncethatitslatestbook,SufficiencyThinking:Thailand’sGiDtoanUnsustainableWorld(Allen&Unwin,2016)istobeofficiallylaunchedatMacquarieUniversityon28March.,togetherwiththeThaiConsulate-GeneralinSydney.
Gayle C. AveryHarald Bergsteiner
Thailand’s gift to an unsustainable world
