11/24/09 International Cooperation on Sustainable Development

1. 11/24/09International Cooperation on Sustainable Development Dr. Kazi F. Jalal Faculty, Harvard Extension School

2. Lecture outline • Why cooperation? • United Nations System • Civil Society: Peoples’ Earth Charter • Private Sector: Corporate Sustainability • Local Governments & NGOs: Case Studies

3. Global Sustainable Development Activities =FINANCING INSTITUTIONS = UN SYSTEM = COMMITTEES = CONFERENCES =OTHER UNDP FAO PRIVATE ORGs UNEP NGOs DIESA Sustainable Development: Concept, Operation, Capacity Building, Coordination, Monitoring, Financing, Advocacy RCs UNCSD WHO IACSD GLOBAL CONFERENCES WTO IFAD RDBs WORLD BANK BILATERALS 5

4. United Nations System • Complicated structure • Six principal organs • Many agencies and bodies

6. Organizations and Entities Involved • UNEP (United Nations Environment Program) • UNDP (United Nations Development Program) • FAO (Food & Agriculture Organization) • ILO (International Labor Organization) • UNESCO (United Nations Education Scientific & Cultural Organization) • WHO (World Health Organization) • WMO (World Meteorological Organization) • IAEA (International Atomic Energy Agency) • WB (World Bank)

7. Organizations and Entities • WTO (World Trade Organization) • UN/DESA (United Nations Department of Economic & Social Affairs) • UNICEF (United Nations Children’s Fund) • IUCN (International Union for Conservation of Nature) • WWF (World Wide Fund for Nature) • UNCSD (United Nations Commission for Sustainable Development) • IACSD (Interagency Committee on Sustainable Development) • Others: RDBs / IFAD / Bilaterals / NGPs / Private Foundations

8. 191 Countries (out of 195) • 109 Heads of State/Government • 18000 Official Delegates • 50000? Total Delegates PUBLISHED BY THE UNITED NATIONS DEPARTMENT OF ECONOMIC AND SOCIAL AFFAIRS AUGUST 2002 www.johannesburgsummit.org

9. WSSD OUTCOME • UN Officials • Modestly Successful • NGO Activists • Glamour event without substance • There is not single shining outcome • Teetering between qualified success and outright failure • Lack of meaningful targets and commitments • One Head of State • Dialogue of the deaf

10. World Summit Negotiation ,2002 • AFRICAN delegation did not know what “FOOD” meant • W.EUROPEAN………………………………. “SHORTAGE”.. • E.EUROPEAN……………………………….. “OPINION”… • MIDDLE EASTERN…………………………. “SOLUTION”… • SOUTH AMERICAN………………………….”PLEASE”… • ASIAN …………………………………………”GOVERNMENT”.. • AMERICAN………………………………… “REST OF THE WORLD” • UNITED NATIONS…………………………. “BRIEF”….

11. Positive Outcomes • Entrenchment of concept • Improving global governance • Reiterating political will of governments • Target setting with technical and financial commitments • Type 1 agreements • Type 2 agreements

12. Outcome of WSSD A political declaration • Support for democracy, rule of law & human rights; • Agreement to alleviate poverty & environmental degradation; • Commitment to food security, water availability and sanitation • Agree that private sector should ensure corporate responsibility An action program on Water & sanitation; energy; human health; agriculture; biodiversity; Cross-cutting issues (phasing out all forms of subsidies; global fund)

17. Reform & Revitalization of Global Organizations • UN Charter Change • Use Trusteeship Council • Use Security Council • Create World Environment Organization (WEO) • Revitalize World Trade Organization (WTO) • Reform International Financing Institutions (IFI) • Strengthen Coordination of existing organizations 17

18. Earth Charter (EC): A Civil Society Initiative* • Our Common Future (1987) :Concept • Earth Summit (1992) : Framework -Maurice Strong & Mikhael Gorbachev with Dutch support (1994) : Launched initiative - EC Commission (1997) : First draft • EC Commission (1999) : Second draft • EC Commission (2000) : Launched EC • EC recognized (2002) :WCSD, Johannesburg _____________________________________ * www.earthcharterinaction.org

19. People’s Earth Charter: Principles • .Respect and Care for the Community of Life 1. Respect Earth and life in all its diversity 2. Care for the community of life with understanding, compassion, and love 3. Build democratic societies that are just, participatory, sustainable, and peaceful. 4. Secure Earth’s bounty and beauty for present and future generations 19

20. People’s Earth Charter: Principles • . Ecological Integrity 5. Protect and restore the integrity of Earth’s ecological systems, with special concern for biological diversity and the natural processes that sustain life. 6. Prevent harm as the best method of environmental protection and, when knowledge is limited, apply a precautionary approach. 7. Adopt patterns of production, consumption, and reproduction that safeguard Earth’s regenerative capacities, human rights, and community well-being. 8. Advance the study of ecological sustainability and promote open exchange and wide application of the knowledge acquired. 9

21. People’s Earth Charter: Principles • . Social and Economic Justice 9. Eradicate poverty as a social and environmental imperative. 10. Ensure that economic activities and institutions at all levels promote human development in an equitable and sustainable manner. 11. Affirm gender equality and equity as prerequisites to sustainable development and ensure universal access to education, health care, and economic opportunity. 12. Uphold the right of all, without discrimination, to a natural and social environment supportive of human dignity, bodily health, and spiritual well-being.

22. People’s Earth Charter: Principles • . Democracy, Non-Violence, and Peace 13. Strengthen democratic institutions at all levels, and provide transparency and accountability in governance, inclusive participation in decision-making, and access to justice. 14. Integrate into formal education and life-long learning the knowledge, values and skills needed for a sustainable way of life. 15. Treat all living beings with respect and consideration. 16. Promote a culture of tolerance, non-violence, and peace.

23. Private Sector : Corporate Sustainability • Private sector has been playing a significant role in promoting sustainable development

24. Corporate Sustainability • “Corporate sustainability is a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic ,environmental and social developments” (-Wikipedia)

25. CS program for industries**Constructed from: The Natural Step for Business (1999),p-16

26. World Business Council for Sustainable Development (WBCSD) • Founded in 1995 by Swiss businessman (Stephen Schmidheiny) under the patronage of the UN, WBCSD is a CEO-led ,global association of some 200 international corporations throughout the globe. Among its members are:GM,DuPont,3M, Deutsche Bank, Coca- Cola, Sony ,BP, Wall Mart, Royal Dutch Shell. • Council provides platform for companies to promote corporate sustainability. • A 2003 WB/IFC study found WBCSD as one of the “most influential forums” for companies on corporate sustainability issues • WBCSD disseminates ten messages to corporations • (i) business is good for sustainable development and vice-versa • (ii) business can not succeed in societies that fail • (iii) poverty is a key enemy to stable society • (iv) access to markets for all supports sustainable development • (v) good governance is needed to make business apart of the solution • (vi) accountability, ethics, transparency, environmental and social responsibility and trust are basic pre-requisites of successful business • (vii) innovation and technology development are crucial to sustainability of business • (viii) eco-efficiency – doing more with less- is at the core of the business case for sustainable development • (ix) ecosystem in balance – a prerequisite for business • (x) cooperation beats confrontation; confrontation puts the solution at risk; cooperation and creative partnership foster corporate sustainability

27. Ten steps to achieve CS * 1.Make sustainability as a company vision 2.Formulate a sustainability strategy 3.Embed sustainability in every part of business 4.Walk the Talk (action speak over words) 5.Set-up a powerful body 6.Establish a code of conduct 7.Join sustainability network 8.Bring stakeholders on board 9.Think beyond reporting 10. Use people’s power ______________________________________________ * “Corporate Sustainability- Its About Attitude”(2008) www.enn.com/business/article/31186

28. CS Ranking of the S&P500 companies(undertaken by TSI) Ranking criteria & assumptions: 1. Customers: deserve high quality products, complete information,remeadies for problems and respect 2. Employees: deserve dignity, fair and non-discriminatory wage, work in a safe environment and to associate freely 3. Owners & Investors: deserve fair and competitive return, transparent operations & an appropriate voice in corporate governance 4. Suppliers: deserve mutual respect & long-term stability in turn for value, quality, competitiveness and employment practices that respect human dignity 5.Competitors: deserve fair & respectful competition 6. Communities : deserve the support of public policies that promote human development and raise the standards of health and safety, education and economic and social well-being 7. The Environment : deserves protection & improvement through sustainable business practices 8.Fundamental duties: In addition to measuring impact on seven specific stakeholders, the ranking methodology also address the fundamental duties of a company best captured by trust and transparency in terms of the company’s adherence to international standards, its commitment to information dissemination, fair trade practices and ethical behavior. 2/190-194

29. United Nations Global Compact**UN Global Compact is a framework for business that are committed to align their operations and strategies with ten principles in the areas of human rights, labor, the environment and business malpractice. The Global Compact is neither mandatory nor regulatory. At the World Economic Forum in Davos in 1999, the SG/UNchallenged the world business leaders to “embrace and enact “ the Global Compact. UN Global Compact is a purely voluntary initiative with two primary objectives: (1)Mainstream the ten principles into the business practices around the globe; and (2)catalyze actions into the broader UN goals TEN PRINCIPLES OF GLOBAL COMPACT Human Rights • Support and respect for the protection of universal human rights • Refusal to participate or condone human rights abuses Labor 3 . Support of freedom of association and collective bargaining • Abolition of forced labor • Abolition of child labor • Elimination of discrimination in employment Environment • Implementation of precautionary principle • Initiatives demonstrating environmental responsibility • Promotion of environmentally friendly technologies Business malpractices 10. Initiatives to counter all forms of corruption ,including extortion and bribery

30. Ten ways to “green” your brand**by Matt Heinz (2008); www.imediaconnection.comCorporate America,in its quest for attracting more customers and increase market share has jumped into the “green” bandwagon in the recent years. Matt Heinz author of several books on the subject says there are 10 ways to keep companies green Internal • Recycling (not only papers but also wastes and equipments) • Transportation (public transport, car pool, audio/video conferencing) • Power management (electricity, pc power, motion sensors) • Office guidelines (use soft copies, default all printers & encourage all employees to go green ) • Supplier & Partner guidelines (require environment-friendly operating standards) External • Community engagement & activation (Encourage customers & community to follow same guidelines as the company) • Community participation (Encourage community participation in environment-friendly activities; allocate some budget) • Channel choices (choose green marketing channels such as trade show, community activities to demonstrate products & services ) • s)Competitive advantage (Encourage all departments of the company to follow green practices and mantras) • Endorsements & associations (Partner with green businesses such as energy star, buy products with environmental reputation)

31. Green Business CertificationAs more corporations aspire to display green flags, a whole set of organizations are being formed to fill the certification needs. However, they vary in their rigor and depth; there is no consistency and no national authority in USA in-charge of setting standard practice for green business certification Some Recent Contenders:* American Consumer Council (ACC):Green C certification program started in June 2008 (President & CEO Tom Hilton). It is a non-profit org. based in San Diego; cost $3000-$5000 for 3 years; Region:US(2008), Worldwide (2009); Criteria: (1) pollution, waste management & waste prevention; (2) energy and water use efficiency; (3)employee,supplier and consumer education and societal impact; Process : application, review and on-site inspection EarthRight Business Institute of Park City, Utah : has just launched a EarthRight Eco-Friendly Business Certification Program; Cost: $1000 - $40,000depending upon company revenue; annual review; Region:US; Criteria:Compliance with EIA,Sustainability plan, executive commitment, green team,monitoring program, meeting reduction targets for emissions and resources; Process: Application with supporting documentation, management & employee interview, facility inspection 3. Bay Area Green Business Program : has a certification program ; Region:available only to companies located in San Francisco Bay area launched first in 1996; Cost: Free; Criteria: regulatory compliance, pollution prevention,waste reduction, energy & water conservation; Process: Application verified by a utility or regulatory agency. * www.greenbiz.com

32. Influence of CS on people* • US 45% • UK 42% • Italy 35% • France 34% • Germany 28% • Spain 26% ___________________________ *Consumers who have chosen to buy product/service because of company’s cs reputation (based on 1000 sample survey per market). From “A New Mindset for CS”-a study co-sponsored by BT & CISCO (2006)

33. Case studies on Sustainable Development* Examples from Asia *Sustainable development in Asia ADB(2000): Smith & Jalal

34. Rainwater Harvesting in Alwar, Rajasthan, India“largest mobilization of people for environmental regeneration” Problem: Drought-stricken villages with dry wells and a low water table Project: In the mid-1980s, Tarun Bharat Singh, a local voluntary organization, assisted a village in building 3 small rain water harvesting structures called check dams. Check dams store monsoon rains, irrigate fields, and allow water to percolate through the ground to increase water table. Source: Agarwal et al, 1999; Agarwal and Narain, 1999

35. Rainwater Harvesting in Alwar, Rajasthan, India Progress: • Now 3,000 water harvesting structures in 650 villages. • Villagers and TBS regenerated 6,500 m2 of land. • Groundwater tables have increased by 6 m on average. • Forest cover increased by 33% • 5 formerly seasonally dry rivers flow perennially • Agriculture is more productive and self-sustaining • Average annual per capita income increased by $19.78 • For every dollar invested in check dams, economic production in villages increased by $4.20. Source: Agarwal et al, 1999; Agarwal and Narain, 1999

36. Rainwater Harvesting in Alwar, Rajasthan, India Social Impact: Project has helped reverse some of the negative social impacts associated with environmental degradation. As a result, there is: • reduced migration • increased attendance in schools • reduced crime rates • increased participation of women in village decisions Source: Agarwal et al, 1999; Agarwal and Narain, 1999

37. Improved Cook-stoves Program in the People’s Republic of China Background: Initiated in the early 1980s, covered almost 76% of rural households after 15 years of implementation without any direct government subsidy. Strategies • Work began in areas where people showed desire for improved cook-stoves. • Research and development were geared toward designing stoves to match local conditions of fuel, cooking, and heating needs. Source: Parikh et al, 1999; Yao, 1999; Natarajan 1999

38. Improved Cook-stoves Program in the People’s Republic of China Strategies • Regular, systematic, and consistent monitoring and evaluation have been an integral part of the program since its inception. • Government contributions are small (about 15%) and restricted to training, administration, and promotion • Flow of money between bureaucratic levels is minimal. • Production of the critical parts of the combustion chamber is centralized to ensure long-term, high-efficiency stove performance. Source: Parikh et al, 1999; Yao, 1999; Natarajan 1999

39. Corporate Synergy Systems in Taipei, China Objective: To promote clean production in supply chains consisting of small and medium-sized enterprises using the corporate synergy system management approach. Corporate synergy systems are initiated under leadership of large companies, where upstream suppliers and downstream buyers are organized to achieve common goals. Central firms of a CSS rank and reward the suppliers in the chain. Source: Chiu et al, 1999; van Berkel and Krygar, 1994

40. Corporate Synergy Systems in Taipei, China CSS in Action: • Cheng-Loong Paper Manufacturing Company organized CSS program with: • 2 Central Firms • 10 upstream suppliers that provide waste paper, machinery, chemicals, energy, transportation services • 3 downstream buyers who are suppliers • 90% of participating firms were small and medium-sized enterprises Source: Chiu et al, 1999; van Berkel and Krygar, 1994

41. Corporate Synergy Systems in Taipei, China Results: • Cheng-Loong system implemented 868 clean production options in 13 months. • Participating firms invested $991,000 in clean production measures, resulting in annual benefit of $3.5 million. Source: Chiu et al, 1999; van Berkel and Krygar, 1994

42. Case Studies: Lessons Learned At the grassroots level, necessary conditions for SUSTAINABILITY ofDEVELOPMENTare: • Well targeted programs (in terms of area & population) • Minimum bureaucracy • Supportive role of the government • Active role of the community, NGO, and private sector • Stakeholders responsibility and sense of ownership • Strategy for commercialization • Replication of success stories

43. Case Studies: Results Achieved • People (particularly the marginalized groups) derived economic and environmental benefits • Investments are paid off over a short period of time • Occupational hazards were minimized • Cooperation and understanding between affected communities, NGOs, and private sector increased • Market and policy failures were minimized • Development became meaningful and sustainable.