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(Ecothon Group2)ESG, SDGs, SCP ESG SLIDES
- 1. - Is our company future-ready? Understanding ESG, SDGs and SCP Ecothon Grou2 Supported by SolBridge International School of Business David Inhyouk Koo(Professor)
- 2. SMALL SIZE, GREAT SIGNIFICANCE Small Businesses: Include 27.8 million businesses in the U.S. Represent 99.7% of all firms. Employ 49% of employees in the private sector. Hire 43% of high-tech employees. Represent 97% of all exporters. Obtain college degrees. Provide increased business ownership opportunities for veterans.
- 4. UNDERSTANDING YOUR BUSINESS PARADIGM
- 5. THE CASE FOR SUSTAINABLE BUSINESS HAS COME OF AGE 5 Within the next 5 years all investors will measure a company's impact on society, government, and the environment to determine its worth UN SDGs are driving a global commitment to sustainability COVID-19 has spurred economic upheaval and The Great Reset Climate change is driving corporate strategy Inequality is driving activism Source: FTI Consulting (2021)
- 6. ESG IS A GLOBAL ISSUE 6 acting in pursuit of the public interest and acting to maximize the bottom line are complementary SEC Chair Allison Herren Lee SFDR is being enacted to address the twin objectives of increasing transparency of sustainability-related disclosures and to increase comparability of disclosures for end investors. ESMA Issuers are required to state whether they have made disclosures consistent with the recommendations of TCFD or explain if they have not done so. Financial Conduct Authority While the world moves towards a single standard, BlackRock continues to endorse TCFD- and SASB-aligned reporting. Larry Fink As outlined, there is pressure on companies to enhance their ESG management and disclosure from every region of the world. Source: FTI Consulting (2021)
- 7. The Entrepreneurs Opportunity Sweet Spot
- 8. FOCUS ON MANAGERIAL IMPLICATIONS Sustainability Sustainable strategies: strategies that help MNCs make profits without harming envi ronment and while ensuring company operates in a socially responsible manner with regard to its stakeholders Good for shareholders, environment, local communities, employees, and customers
- 9. IS SUSTAINABILITY BAD FOR PROFITS? Most customers prefer that the companies they buy products and services from engage in business-focused sustaina bility practices. Eighty-three percent of the respondents in the Public Opinion Survey on Sustainability said that the y think companies should try to accomplish their performance goals while also trying to improve society and the en vironment. At the same time, multinational firms are overwhelmed about the varied stakeholder needs they face. A nd, the Global Reporting Initiative, with its some 80 equally important sustainability indicators, is not giving compa nies a clear set of sustainability proprieties. Meanwhile, sustainability executives in companies have not exactly be en elevated to the importance levels of other top managers. If you had to pay more for a product, like gasoline f or your automobile, how much more would you be willing to pay to buy from a highly rated sustainability-ori ented company5 percent, 10 percent, 25 percent, 40 percent? Sources: Epstein-Reeves, J., The Pain of Sustainability, Forbes, January 18, 2012; Consumers Expect Action from Companies on Sustainability, Second Annual Public Opinion Survey on Sustainability; Global Reporting Initiative.www.globalreporting.org.
- 10. Policy Recommendation Implement SDG-based sustainable public procurement Require all suppliers to disclose their contributions to the SDGs in order to qualify as a government supplier. o All country and local governments. o Enabled by online tools. Implement a Registry of Suppliers database and online supplier notification system o Notify all pre-qualified suppliers when a tender is issued that matches their UN Standard Products and Services Code (UNSPSC). o Include suppliers anywhere. Implement an online bid submission system o Provides access to cross-jurisdictional markets.
- 11. Online SDG Self-Assessment Tools Online SME-friendly supplier self-assessment tool on contributions to the SDGs e.g. B Impact Assessment, SDG Action Manager, (SDG Ambition), Enhanced 3-in-1 Sustainability Assessment Toolkit Consistent core questions; assesses contributions to all SDGs Leads to comparisons, and sharing / celebrating best practices Online local / municipal self-assessment tool on progress on the SDGs e.g. Enhanced IISD Tracking Progress Tool Consistent suite of questions; assesses local progress on all SDGs Can be added to UN Stats Open SDG Data Hub, SDG Tracker for a bottom-up global view provided by consistent VLRs Enables comparisons of local / municipal / city / community progress, sharing of best practices and celebration of leaders.
- 12. THE CHALLENGE FOR SCP The key approaches for achieving SCP can be summarized by: Consuming less: the total expenditure for consumption is reduced, eventually leading to less economic output. Making better consumption choices: the total level of consumption is not reduced, but lifestyle changes can prompt changes in consumption patterns. Producing and consuming more efficiently: consumption patterns are essentially unchanged, but the products and services consumed are produced with technologies that reduce the amount of resource use and emissions per unit of consumption by e.g. extending the lifespan of products and services.
- 13. THE THREE MOST IMPORTANT IMPACT AREAS: FOOD, HOUSING AND MOBILITY
- 14. THREE MOST IMPORTANT IMPACT AREAS: FOOD, HOUSING AND MOBILITY
- 15. THREE MOST IMPORTANT IMPACT AREAS: FOOD, HOUSING AND MOBILITY
- 16. WHY IS SCP IMPORTANT IN ASIA-PACIFIC The key approaches for achieving SCP in Asia Fundamental socio-economic factors that make SCP particularly important in the Asia-Pacific region. Increases in population, average incomes (and consumption rates), urbanisation (and infrastructure investment) and a huge growth in production activities. Household final consumption expenditure per capita (constant 2000 US$)
- 17. WHY IS SCP IMPORTANT IN ASIA-PACIFIC The key approaches for achieving SCP in Asia Fundamental socio-economic factors that make SCP particularly important in the Asia-Pacific region. Domestic Material Consumption (DMC) The material transition in Asia and the Pacific
- 18. THE MEANINGFULNESS OF SCP Developing a critical approach to sustainable consumption and production The challenge is how to de-couple the needs and aspirations from the effects on the environment. Sustainable practices in both consumption and production can permit the fulfilment of both needs and wants (i.e. with the minimum resource depletion and with minimum pollution).
- 19. Thank you.