The pandemic wiped out more than four years of progress in poverty eradication, and pushed close to over 90 million people into poverty in the year 2020, says Sanda Ojiambo, assistant secretary-general at the United Nations Global Compact (UNGC).
Speaking at the Responsible Business Asia 2023 conference on May 23, Ojiambo cites reports of slow progress on the sustainable development goals (SDGs), which suggest that the Asia Pacific region will miss 90% of its SDGs by 2030. The region has only achieved 14.4% of the progress needed, “which is far below what was expected”, adds Ojiambo. “But I think it takes cognisance of the difficult circumstances we find ourselves [in].”
The 17 goals, which include ending hunger, achieving gender equality and taking urgent action to halt climate change, were set up by the United Nations (UN) General Assembly in 2015 and are intended to be achieved by 2030.
“When the SDGs were first articulated, an estimated figure of US$2.5 trillion was needed. I imagine with the setbacks and the changes in inflation rate and challenges in borrowing, that figure has risen,” says Ojiambo, a Kenyan administrator and previously executive director at the UNGC.
Launched in July 2000, the UNGC is the UN secretary-general’s strategic policy and advocacy initiative calling for aligning business operations with the “10 Principles” in human rights, labour, environment and anti-corruption. UNGC also aims to motivate companies to integrate the SDGs into their core business strategy and operations.
Globally, the UNGC has welcomed some 22,676 participants from over 160 countries. The initiative also counts nearly 70 local chapters called Global Compact Networks. They organise activities, such as seminars, networking events and awards, based on local priorities and needs.
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GCNS, a tripartite organisation
The UN Global Compact Network Singapore (GCNS) sits within the Singapore Business Federation’s (SBF) premises at Robinson Road. GCNS was registered in 2005, with SBF as one of its three principal members, along with the National Trades Union Congress and Singapore National Employers Federation.
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“We started as this tripartite organisation, really looking at sustainability from the different perspectives of the employers, employees and also businesses,” says Esther Chang, executive director of GCNS.
Chang joined GCNS at the start of 2019. “Year-on-year, we have approximately 15% to 25% growth in our membership [since then]... In Singapore, we have more than 200 members actively engaging with the UN Global Compact, but beyond this, we also work with the broader business community in Singapore, government agencies, other NGOs and educational institutions to collectively move the dial on sustainability.”
Chang says GCNS’s membership is evenly split between large and small corporations. “They need first to understand: What is the common language of sustainability? I think the SDGs provide that global common language. Then, they need to figure out what is material to them; what’s important for one company may not be for another sector. Thirdly, they need to set the right targets and goals so that they can work towards them.”
TCFD workshops
GCNS is not just an association but also a non-profit with an Institution of Public Character status and an affiliate of the UNGC, says Chang. “So, it makes GCNS a natural partner for many because we’re neutral and sector- and industry-agnostic. We help companies take concrete action for sustainability.”
Chang speaks of GCNS’s “strong partnerships” with the Ministry of Sustainability and the Environment, Enterprise Singapore, the National Environmental Agency, the Maritime Port Authority and the Singapore Exchange S68 (SGX).
From FY2023, locally-listed companies in the financial, agriculture, energy, food and forest industries will issue the first SGX-mandated climate-related disclosures in their annual sustainability reports. The transportation, materials and buildings industries must do the same from FY2024.
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“As climate reporting becomes mandatory, we partnered with Singapore Exchange in 2022 to roll out a series of workshops on climate-related disclosures based on recommendations of the Task Force for Climate-related Financial Disclosures [TCFD],” says Chang.
Working with external trainers and consultants chosen by GCNS, 334 individuals from 171 companies underwent day-long, sector-specific workshops in the inaugural run of 14 sessions. SGX partially subsidised the workshops.
From the participants’ feedback collected by Chang’s team, 82% would recommend the workshops to others, and 74% understood how their companies would address SGX’s climate-related disclosure requirements.
“The feedback we received was very positive, and though we don’t have any more in the pipeline, we have a good working relationship with the Singapore Exchange,” says Chang. “As the reporting landscape is constantly evolving and there is greater demand by local and international stakeholders for better quality sustainability disclosures, there is certainly more scope for us to do more.”
Communication on Progress
The window has opened for the UNGC’s thousands of participants to submit their annual progress report on adhering to the 10 Principles — via a questionnaire called the Communication on Progress (CoP).
“The Communication on Progress is not a rating,” says Chang. “It’s for companies to look at a set of questions that helps them [assess] their sustainability efforts.”
In addition to a “CEO statement of continued support”, participants are completing the CoP via a new digital platform. “That’s a platform through which our 18,000 business members will be required to report and disclose their work,” says Ojiambo. “Because it’s digital, we’ll then be able to analyse, share data, slice and dice it according to the size of company, geography [and] industry; and use that as a mechanism for businesses and business leaders to benchmark, see what gaps exist [and] understand what’s happening from an industry perspective.”
If a company fails to complete and submit its CoP before July 15, it will fall into “non-communicating” status, and its name and status will be publicly displayed. This status can be reverted to “active” if they submit the CoP any time between July 16 and Dec 31 annually. If a company fails to submit its CoP before the year-end, however, it will be delisted from the UNGC.
Training and awards
To reach the SDGs by 2030, US$4.3 trillion ($5.7 trillion) is needed annually. However, there is collective interest, says Chang. “Besides ensuring a sustainable future and averting irreversible catastrophic climate impacts, achieving the SDGS could unlock US$12 trillion in market opportunities globally and create 380 million new jobs.”
GCNS is a partner of the new Centre for Sustainable Finance Innovation in May at Nanyang Business School (NBS). This extends to GCNS’s collaboration with NBS around the Certificate in Sustainable Finance, a course designed to help financial professionals understand capital allocation through a sustainability lens.
GCNS also works with the Singapore Management University to deliver an Advanced Certificate in Sustainability and Sustainable Business. Launched in 2019, the 12-day programme, held over four months, has welcomed over 630 professionals so far.
Looking ahead, “exciting and heavy” preparations are underway for the 15th edition of the UN GCNS Summit on Nov 2, says Chang. The annual flagship event offers more than 250 delegates a platform to share knowledge on corporate sustainability trends and ways to meet the SDGs.
GCNS will host the Singapore Apex Corporate Sustainability Awards 2023 the following day, marking the eighth year for the corporate sustainability award. Minister for Sustainability and the Environment Grace Fu will be the event’s guest of honour.
Last year’s winners include Sodexo Singapore, Keppel Land and StarHub CC3 . In addition to the Sustainable Business and Sustainable Solutions awards, this year’s event will see a new, by-invite-only LowCarbonSG category, which recognises companies that have made at least a 5% reduction in Scope 1 and 2 emissions over 24 months through a “commendable level” of effort or investment.
Companies large and small will be recognised for these categories, says Chang. “It’s important to have commitment and leadership from the top. Those that are working in sustainability — they have to have grit; they have to talk to a lot of people, they have to get buy-ins. That work becomes a lot easier when they have that endorsement [and] support from leadership. I hope that there is that commitment for companies that are starting out.”
Photos: Albert Chua/The Edge Singapore
