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World Business Council for Sustainable Development – Liaison Delegate Meeting 2017

Michael Møller

28 mars 2017
Conseil mondial des affaires pour le développement durable (WBCSD) - Réunion de délégué 2017

Speech by Mr. Michael Møller
United Nations Under-Secretary General
Director-General of the United Nations Office at Geneva

“World Business Council for Sustainable Development – Liaison Delegate Meeting 2017: Roadmaps for Impact in Today’s Reality”

Montreux, Switzerland
Tuesday, 28 February 2017
08h15

Mr. Bakker,
Ladies and Gentlemen,

It is a pleasure to be here with you today to discuss the vital role of the private sector in sustainable development. “Vital” is not an overstatement. In truth, business engagement may make or break what has to be a collective effort, with severe repercussions for the future of humanity and of our planet if it does not. This is why I would like to thank the World Business Council for Sustainable Development for organizing this timely event and for inviting me to share my thoughts with you. Since its creation, WBCSD has been a major driving force in fostering cooperation among businesses – and between the private and public sectors – on sustainable development. For this, we all say thank you.

“We can continue with business as usual”. “Sustainable development is not the responsibility of businesses”. These are just some of the myths that persist about sustainable development. I am here to share with you my conviction that sustainability is not only a moral imperative, but a business necessity.

First, we need to recognize that the world cannot continue with “business as usual”. A series of mega trends are now converging, outpacing our ability to respond with existing solutions. Climate change, natural disasters, population growth, rapid urbanization and environmental degradation leave in their wakes greater competition for limited resources and services. While globalization, technological progress and global trade led to gains in standards of living and progress against poverty over the last decades, this same period also saw the withering of certain industries with devastating consequences for their communities. In this environment, too many have been left behind. This divide contributes to the sharp inequalities now found both between and within countries. According to recent figures, the eight richest people in the world have more wealth than the 3.6 billion poorest – half of the world population. These unsustainable factors have fuelled the rise of nationalists, populists and protectionists, who thrive on public mistrust of political and business elites. In this environment, sticking to the status quo will only lead to rising costs and greater instability, damaging business prospects and making the world a smaller, poorer and more uncertain place.

Sensing these trends, Member States adopted in 2015 the Agenda 2030 for Sustainable Development. You know its 17 goals, but let me just emphasize the three elements that make these Sustainable Development Goals particularly relevant. First, they are universal. The SDGs are as relevant to the challenges facing Switzerland as they are to those facing Swaziland. Second, the SDGs are interconnected. Action in one area – like gender equality – has beneficial effects elsewhere. Finally, the SDGs are transformational. They recognize that the top-down development efforts of the past won’t get us to the finish line. Rather, success will depend on forging new partnerships across old divides, including between international organizations and the private sector. In today’s world, the United Nations still brings to bear unparalleled expertise and reach, but it is increasingly serving as a facilitator, convenor and actor of last resort. This leaves implementation of the 2030 Agenda to whoever has the best competitive advantage, opening the door for new opportunities for businesses.

As you know, sustainability is about more than civic responsibility or public relations, it is also about opening up untapped markets, cutting down the costs of today and tomorrow and winning over the next generation of investors, employees and clients. Today, some 836 million people still live in extreme poverty, while inefficient services, corruption or conflict whittle away the incomes of millions of others and deter investment. According to the United Nations Office for the Coordination of Humanitarian Affairs, the cost of conflicts in 2014 was over 14 trillion dollars, nearly 15 percent of global GDP. Imagine the opportunities at hand if we could free these would-be consumers, entrepreneurs and innovators. One 2015 McKinsey study found that just achieving gender equality could add up to 28 trillion dollars to Global GDP by 2025.

Sustainability can also yield significant costs-savings for firms, a factor that will be even more relevant as a rising population increases demand for resources. One computing multinational claimed that a focus on cutting waste and using resources more efficiently helped it save 422 million dollars over a 12-year period. Investing in sustainability early will make firms more resilient in the face of future stresses and facilitate access to markets as Member States incorporate the SDGs into their regulations.

Finally, sustainability matters to Millennials, our future consumers, employees and investors. A 2014 poll by the Pew Research Centre found that 80 percent of US Millennials preferred to work for sustainable employers. A 2015 survey by Morgan Stanley, meanwhile, found that Millennials were nearly twice as likely to invest in companies or funds that target specific social or environmental outcomes. With Millennials set to receive 30 trillion dollars in inheritable wealth in the coming decades, according to a 2017 Ernst and Young study, investing in sustainability will impact the financial bottom line of companies.

So what can you do for the SDGs? First, continue to engage with the WBCSD. It offers a wide range of resources for firms looking to integrate the SDGs into their operations, including a dedicated “SDG Business Hub”. Second, those of you that haven’t yet, look into joining the more than 9,200 firms from 164 countries that have signed on the United Nations Global Compact for corporate sustainability. Third, do not hesitate to engage with the United Nations and its partner agencies. Through partnerships at every level, we can find new innovative ways to advance our common, shared interests. And please do so at both the country level and in Geneva, which – with over 160 years of expertise – is the operational hub of the international system. This standing is the product of the close cohabitation in the Greater Lake Geneva region of about 100 international organizations and some 400 NGOs. As is the case in "Silicon Valley" with respect to advanced technologies, this concentration of human capital and institutional know-how creates a conducive space for reflection, innovation and collaboration. This is the case with health, for example, with the Global Alliance for Vaccines and Immunization or GAVI, being in Geneva to benefit from the synergies it fosters. Finally, please continue to show leadership on sustainability. The 21st century will test our global civilization like no other and your generation of business leaders will play a central role in our collective response.

We will now have the opportunity to watch a short video prepared by WBCSD on the CEO’s Guide to the SDGs.

Thank you. I look forward to a spirited discussion.

This speech is part of a curated selection from various official events and is posted as prepared.