ith the 76th Session of the United Nations General Assembly (UNGA76) starting this month, among the plethora of pressing issues will be a continued discussion on the progress made towards achieving sustainable development and implementing the 2030 Sustainable Development Agenda.
The implementation of this agenda, sidetracked by the exacerbating effects of the pandemic on global health, security, and economics, is as important as ever. Prior to the onset of the spread of the novel coronavirus, progress towards achieving the Sustainable Development Goals (SDGs) was only a veritable truth for the gross minority of the 17 SDGs. Moreover, we have seen the first increase in global poverty in decades with the onset of the pandemic. Our food, energy, and transportation systems as well as our global supply chains that support them have repeatedly been disrupted and our global economy is now facing the worst economic recession since The Great Depression. As an international community, to say that we are facing an uphill battle to achieve sustainable development by 2030 is an understatement.
This global deadline for achieving all 17 SDGs by 2030 is a daunting task, but what sector is better suited than the private sector to address these goals on a tight schedule?
Direct investment, collaboration, and innovation are necessary drivers to fast track our progress towards achieving sustainable development. The private sector, with multiregional and international footholds, is best equipped to fully implement sustainable development agendas across their industries. Not only does the private sector house the knowledge, technological, and capital resources necessary for achieving the SDGs, they are directly invested in the infrastructural development of countries internationally.
Take, for example, the case of companies operating in financing micro and small business enterprises in developing countries through corporate foundations. Capital investment through these foundations have the potential to create noticeable and measurable positive economic impacts in developing nations. These direct investments in small private enterprises can translate into long term socioeconomic capacity and growth and promote increased employment and a more inclusive and accessible economy.
Similarly, a wide swath of corporations is directly involved in social capacity through education and vocational training programs abroad, working towards SDGs 1, 2, 4, and 8—No Poverty, Zero Hunger, Quality Education, and Decent Work and Economic growth respectively. As part of a corporate foundation’s investments, these programs are aimed at uplifting communities and marginalized populations by providing financial training and education to sow sustainable growth in the long term.
For private corporations in the energy sector, shifts in investment portfolios toward biodiesels and renewable energy has had not only a positive impact in terms of carbon reduction, but also in terms of economic growth. The renewable energy sector, previously valued at around $928 billion in 2017, is now expected to reach $1,512.3 billion by 2025, reflecting popular demand for more sustainable industries. While full divestment from coal, oil, and natural gas remains a far-off reality given the sheer size of companies in these sectors and the degree of capital investment and entrenchment on part of national governments, the growth of the clean energy sector signals a positive opportunity for continued innovation, employment, and growth.
These wide-ranging strides towards achieving the SDGs have been championed by private and corporate commitments through corporate social responsibility (CSR) and to environmental, social and governance (ESG) practices. The private sector and corporations not only have a clear vested interest in achieving these goals and the wherewithal to do so but they are also increasingly becoming intersections of global governance, policy, and development. These private entities are, essentially, a new class of diplomat.
Corporate diplomacy, however, is nothing new. Since the rise of the first multinational corporations dating as far back to the 17th century, there has been a confluence of international affairs, business relations, and economic development. These private entities have continued to be brokers of both culture, goods, services and in the face of these formidable global challenges, they continue to provide a common forum and intersection to align vastly diverse international interests.
Certainly, there is no replacing the current international diplomatic corps. Nation states and governments remain the primary actors in world affairs and drivers of international relations, but what gets distracted in the play of international politics between sovereign states can be expedited in the private sector. National governments will continue to be critical for the safeguarding of citizen interests, but the international stage will always need more common ground, which can be provided by additional actors, especially the private sector. The private sector is not only set apart by its comparative flexibility, but also by its substantial purchasing power, which is now more and more positioning it for investment in research and development geared towards achieving the SDGs by 2030.
Editor's Note: This feature was originally published in Diplomatic Courier's UNGA 2021 special print edition.
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The Private Sector’s Role in Achieving the UN SDGs
Photo via Pixabay.
September 19, 2021
Progress toward the UN's Sustainable Development Goals was already lacking before the pandemic. During the 76th session of the UNGA, the private sector has a key role to play in getting the SDGs back on track, write Meridian's Puru Trivedi and Nico Rios.
W
ith the 76th Session of the United Nations General Assembly (UNGA76) starting this month, among the plethora of pressing issues will be a continued discussion on the progress made towards achieving sustainable development and implementing the 2030 Sustainable Development Agenda.
The implementation of this agenda, sidetracked by the exacerbating effects of the pandemic on global health, security, and economics, is as important as ever. Prior to the onset of the spread of the novel coronavirus, progress towards achieving the Sustainable Development Goals (SDGs) was only a veritable truth for the gross minority of the 17 SDGs. Moreover, we have seen the first increase in global poverty in decades with the onset of the pandemic. Our food, energy, and transportation systems as well as our global supply chains that support them have repeatedly been disrupted and our global economy is now facing the worst economic recession since The Great Depression. As an international community, to say that we are facing an uphill battle to achieve sustainable development by 2030 is an understatement.
This global deadline for achieving all 17 SDGs by 2030 is a daunting task, but what sector is better suited than the private sector to address these goals on a tight schedule?
Direct investment, collaboration, and innovation are necessary drivers to fast track our progress towards achieving sustainable development. The private sector, with multiregional and international footholds, is best equipped to fully implement sustainable development agendas across their industries. Not only does the private sector house the knowledge, technological, and capital resources necessary for achieving the SDGs, they are directly invested in the infrastructural development of countries internationally.
Take, for example, the case of companies operating in financing micro and small business enterprises in developing countries through corporate foundations. Capital investment through these foundations have the potential to create noticeable and measurable positive economic impacts in developing nations. These direct investments in small private enterprises can translate into long term socioeconomic capacity and growth and promote increased employment and a more inclusive and accessible economy.
Similarly, a wide swath of corporations is directly involved in social capacity through education and vocational training programs abroad, working towards SDGs 1, 2, 4, and 8—No Poverty, Zero Hunger, Quality Education, and Decent Work and Economic growth respectively. As part of a corporate foundation’s investments, these programs are aimed at uplifting communities and marginalized populations by providing financial training and education to sow sustainable growth in the long term.
For private corporations in the energy sector, shifts in investment portfolios toward biodiesels and renewable energy has had not only a positive impact in terms of carbon reduction, but also in terms of economic growth. The renewable energy sector, previously valued at around $928 billion in 2017, is now expected to reach $1,512.3 billion by 2025, reflecting popular demand for more sustainable industries. While full divestment from coal, oil, and natural gas remains a far-off reality given the sheer size of companies in these sectors and the degree of capital investment and entrenchment on part of national governments, the growth of the clean energy sector signals a positive opportunity for continued innovation, employment, and growth.
These wide-ranging strides towards achieving the SDGs have been championed by private and corporate commitments through corporate social responsibility (CSR) and to environmental, social and governance (ESG) practices. The private sector and corporations not only have a clear vested interest in achieving these goals and the wherewithal to do so but they are also increasingly becoming intersections of global governance, policy, and development. These private entities are, essentially, a new class of diplomat.
Corporate diplomacy, however, is nothing new. Since the rise of the first multinational corporations dating as far back to the 17th century, there has been a confluence of international affairs, business relations, and economic development. These private entities have continued to be brokers of both culture, goods, services and in the face of these formidable global challenges, they continue to provide a common forum and intersection to align vastly diverse international interests.
Certainly, there is no replacing the current international diplomatic corps. Nation states and governments remain the primary actors in world affairs and drivers of international relations, but what gets distracted in the play of international politics between sovereign states can be expedited in the private sector. National governments will continue to be critical for the safeguarding of citizen interests, but the international stage will always need more common ground, which can be provided by additional actors, especially the private sector. The private sector is not only set apart by its comparative flexibility, but also by its substantial purchasing power, which is now more and more positioning it for investment in research and development geared towards achieving the SDGs by 2030.
Editor's Note: This feature was originally published in Diplomatic Courier's UNGA 2021 special print edition.
