UN Global Compact
This year marks the 10th anniversary of the UN Global Compact. The Secretary-Generals appeal a decade ago for business to initiate a global compact of shared values and principles, which will give a human face to the global market resonates as much, if not more, today.
We embark on the UN Global Compacts next decade at a critical moment in the history of the global economy, amid a pervasive mood of uncertainty. Both our willingness and ability to collectively tackle global challenges remain unproven. Efforts to reach global climate and trade agreements, eliminate poverty and hunger, and safeguard against future systemic market failures have yet to fully materialize. While the need for responsibility and leadership has never been greater, neither has the opportunity to build a new era of sustainability.
Through the efforts of organizations like yours, much is being done to ensure we take the right path:
· 5,000 companies in 135 countries are embedding universal principles in their corporate culture and operations representing nearly every industry and hailing from developed, emerging and developing economies.
· Civil society is engaging with companies at record rates to address societal concerns.
· Mainstream investors increasingly consider environmental, social and governance (ESG) issues to be real factors in the long-term viability and success of companies.
· Academics are advancing corporate responsibility through their curricula and research in order to develop a new generation of business leaders.
· Global Compact Local Networks in 80+ countries are bringing together companies and stakeholders to advance ESG issues and engage in partnerships on local priority issues.
2009: A critical test
2009 was a critical test for the UN Global Compact, and the corporate responsibility movement more broadly. Despite fears that the economic downturn would damper work to advance UN Global Compact principles, our initiative is stronger than ever. The vast majority (91%) of business participants report that they maintained efforts to implement the principles in 2009 with 20% indicating an increase. Similarly, nearly all (94%) report that the relevance of their participation in the UN Global Compact did not decrease last year with 25% considering the initiative more relevant in the wake of the economic downturn.
These findings are backed up by robust business engagement around the world during 2009 for example in our global working groups on human rights and anti-corruption. Our CEO Water Mandate released a framework fornext-generation water disclosure by business and our Caring for Climate campaign galvanized hundreds of companies to report on their climate actions and call for a global climate agreement. We witnessed record turn-out at our Local Networks Forum and welcomed over 1,500 companies and non-business organizations to the UN Global Compact throughout the year.
In fact, the fall-out from the financial crisis and the intense spotlight on the threats of climate change in 2009 have helped push the corporate responsibility agenda towards a tipping point. There is now broad understanding that our globalized marketplace requires a stronger ethical orientation, better caretaking of the common good, and more comprehensive management of risks.
2010: Towards a new era of sustainability
This year the UN Global Compact will undertake many efforts to elevate the role of responsible business in building a new era of sustainability:
UN Global Compact Leaders Summit 2010 (24-25 June, New York):
- Chaired by UN Secretary-General Ban Ki-moon, the Leaders Summit will provide the platform for organizations to collaborate and commit to tackling areas essential for the transformation to sustainable markets and the achievement of societal goals. Bringing together chief executives with leaders from civil society, Government and the United Nations, this triennial Summit is the premier United Nations event with business. Earlier this month, invitations were sent to the chief executives of all UN Global Compact companies. Given high levels of interest and limited capacity, we advise your company to confirm participation at the earliest opportunity. Visit the event website for more information and to register: www.leaderssummit2010.org.
- Advancing the Issues:In each of our issue areas, the UN Global Compact is working to provide guidance and best practices to help companies strengthen their implementation. Highlightsfor 2010 include:
· Human Rights and Labour: Launching the Women’s Empowerment Principles: Equality Means Business; raising awareness of concrete ways for business to respect and support human rights; and promoting guidance on tackling child and forced labour.
· Environment: Increasing corporate participation in Caring for Climate and the CEO Water Mandate; continuing work on climate change mitigation and diffusion of innovative low-carbon technologies while strengthening emphasis on the role of business in adaptation to the impacts of climate change; launching comprehensive environmental stewardship guidance for companies.
· Anti-corruption: Releasing guidance on corporate reporting on the 10th principle and fighting corruption in the supply chain; promoting country-level efforts to mobilize collective action to tackle corruption.
· Business and Peace: Developing and releasing guidance for companies and investors on “Implementing the UN Global Compact principles in conflict-affected or high-risk areas”.
· Responsible Investment: Widening adoption of the Global Compact by mainstream investors; encouraging investors to engage with companies to improve sustainability performance.
- Millennium Development Goals: This year also marks a decade since world leaders committed to reduce extreme poverty. The UN Global Compact will develop a framework for strategic business action in support of the MDGs, which identifies key linkages to climate change, peace and good governance and includes disclosure and impact assessment mechanisms. We will also work to demonstrate the expanding capability of the public and private sectors to jointly address development challenges, to be featured at the 3rd UN Private Sector Forum in September.
Your active engagement in events and issue work is needed to ensure our agenda develops and strengthens. I encourage you to stay up to date on all opportunities and available resources through our monthly UN Global Compact Bulletin.
From our founding, the UN Global Compacts mission has not wavered. We work towards a day when companies everywhere integrate universal principles into their strategies, operations and culture having a profound effect on United Nations goals. Seen as purely aspirational in the early days, our mission is increasingly achievable. With a continued dedication to corporate responsibility by your organization and thousands more around the world we will help the world chart a course where sustainable development, a healthy planet and peaceful cooperation prevail.