Sustainable business can ‘unlock S$12 trillion’

‘Next decade critical for companies to open 60 key market hot spots’

Over 35 CEOs and civil society leaders of the Business and Sustainable Development Commission yesterday revealed that sustainable business models could open up economic opportunities worth at least $12 trillion and up to 380 million jobs a year by 2030, reports UNB from Dhaka.
Putting the Sustainable Development Goals (SDGs), or global goals, at the heart of the world's economic strategy could unleash a step-change in growth and productivity, with an investment boom in sustainable infrastructure as a critical driver.
However, this will not happen without radical change in the business and investment community, according to a message received in Dhaka from London.
Real leadership is needed for the private sector to become a trusted partner in working with government and civil society to fix the economy.
In its flagship report Better Business, Better World, the Commission recognises that while the last few decades have lifted hundreds of millions out of poverty, they have also led to unequal growth, increasing job insecurity, ever more debt and ever greater environmental risks.
This mix has fueled an anti-globalisation reaction in many countries, with business and financial interests seen as central to the problem, and is undermining the long-term economic growth that the world needs.
“This report is a call to action to business leaders,” Mark Malloch-Brown, chair of the Business Sustainable Development Commission, was quoted as saying.
Mark said they are on the edge and business as usual will drive more political opposition and land them with an economy that simply doesn't work for enough people. “We've to switch tracks to a business model that works for a new kind of inclusive growth.”
Better Business, Better World shows there is a compelling incentive for why the latter isn't just good for the environment and society; it makes good business sense, Mark said.
At the heart of the Commission's argument are the Sustainable Development Goals (or Global Goals) with 17 objectives to eliminate poverty, improve education and health outcomes, create better jobs and tackle our key environmental challenges by 2030.
The Commission believes the Global Goals provide the private sector with a new growth strategy that opens valuable market opportunities while creating a world that is both sustainable and inclusive. And the potential rewards for doing so are significant.
The report reveals 60 sustainable and inclusive market 'hotspots' in just four key economic areas could create at least S$12 trillion, worth over 10 per cent of today's GDP.
The breakdown of the four areas and their potential values are: energy $4.3 trillion; cities: $3.7 trillion; food and agriculture $2.3 trillion; health and well-being 
$1.8 trillion.
”At a time when our economic model is pushing the limits of our planetary boundaries and condemning many to a future without hope, the Sustainable Development Goals offer us a way out,” said Paul Polman, CEO of Unilever, and a commissioner.
“Many are now realising the enormous opportunities that exist for enlightened businesses willing to stand up and address these urgent challenges. But every day that passes is another lost opportunity for action. We must react quickly, decisively and collectively to ensure a fairer and more prosperous world for all.”
While the opportunities are compelling, the Business Commission makes it clear that two critical conditions must be met to build these new markets.
First, innovative financing from both private and public sources will be needed to unlock the US$2.4 trillion required annually to achieve the Global Goals.
“As stewards of long-term capital, the investment industry and its clients can support the achievement of the SDGs by creating simple, standardised sustainability metrics integral to the investment process,” said Hendrik du Toit, CEO, Investec Asset Management, and member of the Commission.
“We also need new streamlined partnerships with governments and communities that can reduce risks for everyone and bring more private investment at lower cost into sustainable infrastructure development.”
At the same time, the Commission believes “a new social contract” between business, government and society is essential to defining the role of business in a new, fairer economy.
Throughout 2017, the Commission will focus on working with companies to strengthen corporate alignment with the Global Goals, including: mentoring the next generation of sustainable development leaders; creating sectorial roadmaps and league tables that rank corporate performance against the Global Goals; and supporting measures to unlock blended finance for sustainable infrastructure investment.
“We need to show these ideas work not just in a report but on the business frontline," said Dr. Amy Jadesimi, CEO of LADOL, a Nigerian logistics and infrastructure development company, and a member of the Commission.

Sustainable business can unlock S$12 trillion

Next decade critical for companies to open 60 key market hot spots

Over 35 CEOs and civil society leaders of the Business and Sustainable Development Commission yesterday revealed that sustainable business models could open up economic opportunities worth at least $12 trillion and up to 380 million jobs a year by 2030, reports UNB from Dhaka. Putting the Sustainable Development Goals (SDGs), or global goals, at the heart of the worlds economic strategy could unleash a step-change in growth and productivity, with an investment boom in sustainable infrastructure as a critical driver. However, this will not happen without radical change in the business and investment community, according to a message received in Dhaka from London. Real leadership is needed for the private sector to become a trusted partner in working with government and civil society to fix the economy. In its flagship report Better Business, Better World, the Commission recognises that while the last few decades have lifted hundreds of millions out of poverty, they have also led to unequal growth, increasing job insecurity, ever more debt and ever greater environmental risks. This mix has fueled an anti-globalisation reaction in many countries, with business and financial interests seen as central to the problem, and is undermining the long-term economic growth that the world needs. This report is a call to action to business leaders, Mark Malloch-Brown, chair of the Business Sustainable Development Commission, was quoted as saying. Mark said they are on the edge and business as usual will drive more political opposition and land them with an economy that simply doesnt work for enough people. Weve to switch tracks to a business model that works for a new kind of inclusive growth. Better Business, Better World shows there is a compelling incentive for why the latter isnt just good for theenvironment and society; it makes good business sense, Mark said. At the heart of the Commissions argument are the Sustainable Development Goals (or Global Goals) with 17 objectives to eliminate poverty, improve education and health outcomes, create better jobs and tackle our key environmental challenges by 2030. The Commission believes the Global Goals provide the private sector with a new growth strategy that opens valuable market opportunities while creating a world that is both sustainable and inclusive. And the potential rewards for doing so are significant. The report reveals 60 sustainable and inclusive market hotspots in just four key economic areas could create at least S$12 trillion, worth over 10 per cent of todays GDP. The breakdown of the four areas and their potential values are: energy $4.3 trillion; cities: $3.7 trillion; food and agriculture $2.3 trillion; health and well-being $1.8 trillion. At a time when our economic model is pushing the limits of our planetary boundaries and condemning many to a future without hope, the Sustainable Development Goals offer us a way out, said Paul Polman, CEO of Unilever, and a commissioner. Many are now realising the enormous opportunities that exist for enlightened businesses willing to stand up and address these urgent challenges. But every day that passes is another lost opportunity for action. We must react quickly, decisively and collectively to ensure a fairer and more prosperous world for all. While the opportunities are compelling, the Business Commission makes it clear that two critical conditions must be met to build these new markets. First, innovative financing from both private and public sources will be needed to unlock the US$2.4 trillion required annually to achieve the Global Goals. As stewards of long-term capital, the investment industry and its clients can support the achievement of the SDGs by creating simple, standardised sustainability metrics integral to the investment process, said Hendrik du Toit, CEO, Investec Asset Management, and member of the Commission. We also need new streamlined partnerships with governments and communities that can reduce risks for everyone and bring more private investment at lower cost into sustainable infrastructure development. At the same time, the Commission believes a new social contract between business, government and society is essential to defining the role of business in a new, fairer economy. Throughout 2017, the Commission will focus on working with companies to strengthen corporate alignment with the Global Goals, including: mentoring the next generation of sustainable development leaders; creating sectorial roadmaps and league tables that rank corporate performance against the Global Goals; and supporting measures to unlock blended finance for sustainable infrastructure investment. We need to show these ideas work not just in areport but on the business frontline, said Dr. Amy Jadesimi, CEO of LADOL, a Nigerian logistics and infrastructure development company, and a member of the Commission.