Policy statement

ICC Commitment to Sustainable Development
Commission on Environment, 2 April 1997

On the fifth anniversary of the United Nations Conference on Environment and Development (UNCED), the International Chamber of Commerce (ICC) reaffirms its commitment to sustainable development, as stated in the ICC Business Charter for Sustainable Development : "Sustainable development involves meeting the needs of the present without compromising the ability of future generations to meet their own needs. Economic growth provides the conditions in which protection of the environment can best be achieved, and environmental protection, in balance with other human goals, is necessary to achieve growth that is sustainable" (Introduction of the ICC Business Charter for Sustainable Development, 1991).

In the five years since Rio, business is unequalled in its contributions to sustainable development. Acting jointly, business organizations have further established the ICC Business Charter for Sustainable Development as the principles to which the world business community is committed. Individually, business enterprises have raised the standard of living for hundreds of thousands of people and have brought environmental management and technical contributions in the form of pollution control and prevention to developed and developing countries.

Since UNCED, governments have taken significant steps forward in promoting environmental protection and its integration with economic and social development. The World Trade organization (WTO) and the North America Free Trade Agreement (NAFTA) have recognised the important link between trade and environment. Negotiations and implementation of a number of environmental treaties have advanced quickly. National and regional programmes have been set in motion, business and non-governmental groups, separately and in partnership, have undertaken major efforts in support of sustainable development.

Since UNCED, the ICC has made numerous policy recommendations in support of sustainable development, and raised awareness of its importance among its wide constituency. The ICC has worked to achieve the objectives established at Rio by encouragement of good environmental practice in individual companies through environmental man agement systems. The ICC is pursuing this course of action because it firmly believes that the first step to improved environmental performance of business is to bring environmental considerations into the day-to-day process of decision-making and operations the principal objective of an environmental management system. Integrating environmental considerations into strategic decision-making optimises resource use, waste minimisation and other important aspects of environmental practices and product stewardship.

The ICC Business Charter defines business' environmental responsibilities in 16 principles, providing a structure for environmental management which is fit for enterprises of all sizes doing business in developed or developing countries. The Charter's message encourages continual improvement in environmental management and practice. Utilising an environmental management training kit developed with the United Nations Environment Programme (UNEP) and the Inter-national Federation of Consulting Engineers (FIDIC), the ICC has been training companies to pursue such improvements.

Environmental management systems are, however, only one part of a very complex undertaking and much remains to be done in the pursuit of sustainable development. As standards of living improve, the present generation's expectations will change, increasing the aspirations of what we would like to leave behind for future generations. This will pose new challenges for all sectors of society. The private sector believes that these challenges will require continued innovation: technical, managerial and behavioural. Our experience in the last five years allows us to have an optimistic outlook that innovative approaches in thinking and in technology will allow the mastering of environmental challenges.

Sustainable development is a long-term goal, which business believes requires action across a broader front. The ICC recognises that economic growth, environmental protection and social development are all inter-related aspects of sustainable development and that business has a role with respect to all three. Below, we briefly describe what we see as the continuing role of business in each of the three facets of sustainable development.

Economic Growth
From the economic standpoint, business - both large and small - is by far the most important creator of wealth and, therefore, the principal engine of society. Through the production of goods and services, which provide better standards of living around the world, it generates dividends, wages and salaries and is a major source of government revenue, through tax payments.

Commercial success is a prerequisite for and encourages a high degree of both environmental protection and social responsibility. Not least important, it provides companies the necessary financing to be innovative and engage in research and development. Individual companies contribute best to sustainable development when they are competitive and successful.

Environmental Protection
In order to respond to consumers' demand, business must continue to develop and provide products and services in ways that have no undue environmental impact. Products should be safe in their intended use, efficient in their consumption of energy and natural resources, and be reused, recycled or disposed of safely.

Business will also strive to develop and disseminate new technologies, and lessen the environmental impacts of its products, operations and services. Business looks to government to provide the necessary regulatory framework based on sound science, the understanding of risk assessment and economics. The policies and measures they implement should include the use of market based and voluntary approaches.

Social Development
Business is well placed to make a positive contribution to social development through capacity building, training, technology co-operation and providing a safe and healthy workplace to employees. There are other sizeable direct social contributions made by business such as to education, pensions, and community projects. However, the principal mechanism through which business can contribute to achieving broad social goals is the creation of wealth which in turn permits the creation of jobs. Finally, trade and private sector investment in emerging economies is a key factor in raising standards of living in these regions.

Partnership with Other Sectors of Society
All sectors of society, including government, business, public interest groups and consumers, have a role to play in contributing to sustainable development, and they must work in partnership, bringing their values and experience to bear on the challenge. Sustainable development will only be achieved if each one plays its part. Each sector should focus on what it can do best, but, through partnerships, local, national or even global, we can build on the strengths of each group.

Government has a role to play in facilitating these partnerships. Open and constructive dialogue with all stakeholders is imperative. Public interest groups, as agents of collective values, are important contributors to sustainable development. Individuals must also be included. As consumers it is crucial that they be made aware of how they can contribute to sustainable development in their daily lives.

Each partner's contribution to sustainable development should reflect that partner's capacity. Business is best suited to contributing to sustainable development in the economic sphere - through the creation of wealth in an environmentally sound manner. Government, on the other hand, is best suited to contributing to sustainable development in the social sphere - through the provision of education, infrastructure and public services and through the sound regulation and administration of the protection of the environment and the economic system.

Conclusion
In the final analysis, it is the free market that best enables the economic growth which provides resources necessary to further all three aspects of sustainable development. Hindering the functioning of the market will only undermine this mutually beneficial interaction.

Business and industry are an integral part of the fabric of society, and are therefore necessarily involved with the three elements of sustainable development. ICC's commitment to sustainable development is embodied in its Business Charter for Sustainable Development, and many ICC member companies are integrating the three elements into their corporate business practice. But, more must be done. We call on all organizations and individuals to join actively in the work that lies before us. As the world business organization, the ICC is prepared to play its part in the dynamic and crucial pursuit of sustainable development.

 

Document n 210/541 Rev. 3

 

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