Countries in Asia and Oceania have the potential to lead the global business community in advancing sustainable and inclusive development, says the founder of the UN Global Compact (UNGC).
The key to success will be a concrete and resilient financial framework that can support the transition towards green business in order to achieve the Sustainable Development Goals (SDGs) by 2030, Sanda Ojiambo said at a conference in Bangkok.
Ms Ojiambo voiced her confidence in the business sectors of Asia and the Oceania, which accounts for 60% of the world’s population and over two-thirds of projected global growth, despite setbacks caused by the Covid-19 pandemic.
The region’s focus on innovation and digitisation, she said, has helped drive the most rapid economic growth in the world. And the vast networks of supply chains throughout Asia and Oceania, made up mostly of small and medium sized enterprises (SMEs), are integral to international production, trade and investment.
However, there is so much work to be done to realise this potential, she told participants at the CEO Forum on Sustainable Finance: Scaling Up Sustainable Finance Solutions for Accelerating Progress on the SDGs.
She said the banking and financial sector should play a key role to help businesses make the transition to cleaner technology and innovation via loan packages. Willingness to make green investments as part of the business model should be a criterion for granting loans in the first place, she added.
The finance sector should also provide advisory assistance to make sure projects can access financial support from banks.
“We have seen a good opportunity for the business sector that needs to transform to achieve the SDG goals,” Ms Ojiambo said. “We have seen many strong commitments made by company CEOs worldwide to go into green investment. But the right policies and financial support are required to make this happen.”
Many companies in Thailand, she said, have made large investments in cleaner energy, technology and innovation to achieve business sustainability, in support of the government’s green and sustainable policies.
The UNGC last year surveyed 2,600 CEOs across 128 countries and 18 industries and found 98% realised that sustainability is now central to their role, compared with 83% in 2013. They are being tasked with addressing an unprecedented number of challenges that traditionally lie outside the corporate sphere — such as climate change, warfare and conflict.
Meanwhile, 87% of CEOs feel that current levels of geopolitical instability limit the world’s ability to achieve the SDGs. As well, 90% feel that limited support from governments in building a resilient business is limiting their ability to navigate current global challenges.
To strengthen the movement, Ms Ojiambo said a new regional hub for Asia and Oceania will be established in Bangkok to mobilise, accelerate and scale responsible business across the region.
“Our work here will be critical to the success of the 2030 Agenda because sustainable, inclusive growth requires that companies place our Ten Principles on human rights, labour, environment and anti-corruption at the core of all business decisions,” she said.
Suphachai Chearavanont, chairman of the UN Global Compact Network Thailand, said sustainable finance has become a significant tool for sustainable development. Without a healthy ecological system and biodiversity, it will be very difficult to maintain people’s well-being, he said.
“I believe that the business sector has responsibility and power to improve [the environment], whether in actions to reduce greenhouse gas emissions, or in mitigation and adaptation against climate change impacts,” he said.
The forum in Bangkok on Thursday brought together CEOs from over 20 companies, UN leaders, financial institutions, investors and regulators to explore how investment decisions and financial strategies are driving the transition towards sustainability.