Policy statement

Sustainable development: a vision for partnership
Commission on Environment and Energy, 22 May 2002

French version

The international business community represented by ICC is committed to furthering sustainable development. Business is and will continue to be the prime source of innovation, commercialization and distribution of new technologies, products, production processes, information sources and services - all essential for sustainable development.

The World Summit on Sustainable Development (WSSD) offers a historic opportunity to engage in dialogue and partnership, leading to action aimed at overcoming poverty and enabling all peoples to enjoy the benefits of economic, environmental and social progress. Since the 1992 Rio Earth Summit, governments, business and other stakeholders have made significant advances towards sustainable development on many fronts. But more needs to be done. Agreed frameworks, commitments, rules and principles have not been fully implemented, and the benefits have not been shared by all, particularly in developing countries. Business is committed to being part of the solution to these problems.

The opening and deregulation of markets, a global, rules-based system for trade and investment, and the modernization and international extension of rules are intrinsic to this progress. The so cial and environmental costs of not increasing global economic growth and development, and of not pursuing cooperative environmental management, are much greater than any of the challenges that accompany such growth. A substantial and growing number of companies have a proven record of improving social and environmental conditions where they invest and do business.

The objectives of partnership
Business believes that WSSD should encourage stakeholders and governments to work in partnership to:

• Promote a better understanding of the role of economic growth in sustainable development. Economic growth is key to solving environmental and social challenges. Poverty reduction is a very important component of sustainable development and can best be pursued through foreign direct investment, improved market access, international environmental cooperation, multilateral technical and financial assistance, meaningful debt reduction, improved governance, institution- and capacity-building, and targeted aid.
  
  
• Strengthen awareness of the role and importance of development aid. Declining official development aid (ODA) underscores the importance of foreign direct investment (FDI), but FDI is not a replacement for ODA. ODA should be used to build capacity in the least developed countries, so as to pave the way for both local entrepreneurship and FDI.
  
  
• Work for good corporate and national governance. Introducing greater transparency and accountability and promoting the eradication of corrupt practices at all levels of government are essential for getting optimal value from ODA and for attracting increased FDI. Coordination among policy-makers and institutions in the economic, environmental and social fields will help establish enabling conditions for improved implementation of sustainable development.
  
  
• Promote the integration of developing countries in the multilateral trading system. Such integration will enable them to participate in and benefit from economic and information markets, and help them to improve their environmental and social conditions through capacity-building. Liberalized trade and access to markets are of paramount importance for sustainable development. Developing countries should strive to provide better conditions for business, in which foreign investors can improve and modernize infrastructure and environmental stewardship. Developed countries should open their markets to imports and assist developing countries to improve their environmental management practices. Regional groupings of developing countries could work to widen the potential markets for their products and services and spur awareness of sustainable development among local enterprises.
  
  
• Foster technological innovation and access to information, to contribute to better environmental management and improved quality of life.
  
  
• Encourage multilateral cooperation on market- and science- and risk- based approaches that are not trade-restrictive.
  
  
• Encourage participation by business in shaping sustainable development policy within the framework of rules-based globalization, in partnership with the UN system and with non-governmental entities, recognising that the private sector plays a crucial role in enhancing quality of life.

Roles for business
Many companies have brought the concept of sustainable development into their operations, recognizing its clear business benefits. Business will continue to explore and apply these concepts more widely, focussing on the following priority areas for action:

• Creation of jobs and wealth through producing goods, services and investments that seek to advance sustainable development;
  
  
• Support for governments on regulatory reform, increased enforcement, and institution-building;
  
  
• A "toolbox" approach to sustainable development policy, with regulatory, market and voluntary approaches, as well as market-, trade- and investment-oriented mechanisms;
  
  
• Research and innovation to develop technologies and information sources - in particular those that relate to basic infrastructure needs - that help minimize negative environmental impacts, and advance knowledge, choice, resource efficiency and quality of life;
  
  
• Public-private technology and capacity-building partnerships;
  
  
• Continuous improvement in environmental management practices, using innovative environmental management systems and other relevant standards;
  
  
• Enhancing consumer knowledge and freedom of choice by providing information on environmental aspects of products and services;
  
  
• Partnerships and voluntary initiatives with governments and stakeholders to maximize environmental and social benefits and reporting of results;
  
  
• Consultation with local communities, consumers and other stakeholders through greater transparency and accountability;
  
  
• Promotion of good environmental practice in investments, joint ventures and operations, as well as through relationships with suppliers and contractors;
  

From vision to action
Business urges all participants in the Johannesburg Summit to attack poverty and pollution by encouraging good government, carefully applied science and technology, international cooperation, and expansion of the global trading system. Governments should build capacity and institutions that support implementation at the national level, and free markets to promote development and environmental improvement through international commerce.

We urge governments to facilitate business engagement in these tasks. We also ask governments to recognize voluntary partnerships as effective instruments to help achieve sustainable development at global and local levels. All stakeholders - including business - have critical roles and responsibilities in this endeavour.

The Johannesburg Summit should embrace multilateral cooperation, national action, good governance and open markets as necessary conditions for economic development, societal i mprovement, and effective environmental stewardship. Business is working to enact this vision, and stands ready to join with others in this collaborative effort.

Document n° 213/4
22 May 2002