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Business progress towards Sustainable Development
ICC / WBCSD Background documents to the sixth session of the UN Commission on Sustainable Development
Paris, 27 February1998 - Business and industry plays a critical role in the global drive for sustainable development. In the run up to and since the Rio Earth Summit, business's commitment to this goal has been apparent through many innovative initiatives launched by individual companies and business groups. Ground-breaking private-public sector partnerships have also contributed significantly to the effort.
The launch of many positive voluntary programmes, such as the ICC Business Charter for Sustainable Development and as described in the WBCSD's (World Business Council for Sustainable Development) report "Signals of Change: Business Progress Towards Sus
tainable Development," indicates the broad agreement of industry worldwide to integrate sustainable development considerations into nearly every aspect of their day to day activities.
Business's constructive role in the United Nations Commission for Sustainable Development (UNCSD) clearly demonstrates on-going commitment to this long-term process. Successful technology cooperation, amongst the many varied contributions business is making to sustainable development, is one process which business can tailor to maximum effect in the pursuit of balanced economic growth and development . During the 1998 session of the CSD, industry wishes to underscore its on-going contribution to technology cooperation. Most importantly, business has a key role to play in addressing poverty alleviation while stimulating more sustainable consumption and production, all in the context of economic growth, environmental protection and social development.
Industry's submissions to UNCSD 6 follows Agenda 21's approach in focusing on both the internal operations of a company (corporate environmental management tools) and its external relationships (responsible entrepreneurship). In addition, industry's role in technology cooperation and in freshwater issues are the third and fourth discussion themes in the Business and Industry Background Papers summarized below.
Responsible Entrepeneurship
Responsible, entrepreneurial businesses are the driving force for sustainable economic development and provide the managerial, technical and financial resources to contribute to the resolution of environmental challenges. Many challenges remain and industry must continue to improve performance and keep stakeholders informed of its policies and practices. A particular challenge will be bringing SMEs into the mainstream of good environmental management.
More broadly, business and industry will continue to champion voluntary environmental initiatives which encourage companies to go beyond regulatory compliance, in the spirit of responsible entrepreneurship.
Corporate Environmental Management Tools
The development and use of corporate EMS (Environmental Management System) tools are the mechanism to integrate sustainable development considerations into everyday business. Furthermore, developing initiatives for public and private sector partnership show great promise for the increased voluntary use of EMS and related corporate tools. Such efforts will contribute to a harmonization of environmental regulation and enforcement and will drive further improvements in corporate policy and practice.
Globally, the private sector is a primary source of employment creation, information, training, and capacity building. However, if the private sector is to make its full contribution to sustainable development, an essential prerequisite is a sound policy framework, both at the national and international level.
This will promote and encourage growth and development and maximize industry's ability to employ the increasingly effective range of corporate environmental management tools to the greatest benefit. To support these trends, ICC and WBCSD recommend increased attention to the development and integration of voluntary environmental management systems at all levels of business.
Technology Cooperation
Successful technology cooperation, tailored to the specific national or corporate case, is critical to the implementation of sustainable development. The concern that excessive government regulation of technology cooperation could stifle innovation and limit access to needed technology should be noted. Commercialization of R&D developments for new technologies to function as part of normal business life as quickly as possible is important in order to achieve the common goals. To this effect governments should enhance an effective business environment to catalyse the process of commercialization. The private sector has an increasing role to play in delivery of effective technology cooperation which, clearly, involves the transfer of skills and knowledge not just technological hardware. While it is apparent that the free market is the main driving force for the efficient introduction and assimilation of technology, successful, long-term technology cooperation requires that all parties must gain from the cooperation, while, at the same time, the protection of patents and intellectual property rights of the developer is essential. ICC and WBCSD strongly recommend a concerted effort to ensure the creation of an efficient framework which promotes successful technology cooperation.
Industry and Freshwater
The 21st Century will witness increasing competition for finite fresh water resources.
Industry, which is not the main user of water, has financial, technical and management resources, and is well positioned to contribute to the resolution of broader societal problems in this critical area. It is apparent that all sectors need to cooperate if society is to avert or minimize adverse effects associated with emerging fresh water shortages.
The elements of a comprehensive water strategy are rather straight forward and apply to all parties. Growing evidence demonstrates that industry has already begun to manage industrial water use more effectively. One future task is to continue raising awareness within the business community and encourage others, notably within the agricultural sector, to take action now. The issue of economic pricing of water, both in agriculture and domestic use, remains primarily a government and public policy issue. Subsidies should be phased out since they encourage waste and prevent better management of finite fresh water resources. The 1992 Dublin Principle was clear and correct "Water has an economic value in all its competing uses and should be recognized as an economic good."
ICC Environment Cosmmission
WBCSD
UNCSD
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