Better Business, Better World. Sahba Sobhani Programme Advisor UNDP

Transcription

1 Better Business, Better World Sahba Sobhani Programme Advisor UNDP

2 Why should the private sector be interested in the SDGs? Source -Business & Sustainable Development Commission (2017). Better Business, Better World Report. Prepared by SDG Business Hub

3 The economic prize of the Global Goals 1 $12 trillion business value generated by 12 systems change opportunities 2 60 hotspots opportunities across 4 systems generate business revenue & savings equal to 10% of forecast global GDP % 380 million of the value of Global Goals business opportunities located in developing countries jobs created by Global Goal business opportunities in the four systems by 2030 BUSINESS & SUSTAINABLE DEVELOPMENT COMMISSION 3 3

4 12 largest business themes in world economy heading for the Global Goals Source Business & Sustainable Development Commission (2017). Better Business, Better World Report.

5 2 60 Global Goal hotspots that can grow 2-3x faster than the global economy Food and Agriculture Cities and Urban Mobility Energy and Materials Health and Well-being 1 Reducing food waste in value chain Affordable housing Circular models - Automotive Risk pooling 2 Forest ecosystem services Energy efficiency-buildings Expansion of renewables Remote patient monitoring 3 Low-income food markets Electric and hybrid vehicles Circular models - Appliances Telehealth 4 Reducing consumer food waste Public transport in urban areas Circular models - Electronics Advanced genomics 5 Product reformulation Car sharing Energy efficiency. Non-energy intensive industries Activity services 6 Technology in large scale farms Road safety equipment Energy storage systems Detection of counterfeit drugs 7 Dietary switch Autonomous vehicles Resource recovery Tobacco control 8 Sustainable aquaculture ICE vehicle fuel efficiency End-use steel efficiency Weight management programs 9 Technology in smallholder farms Building resilient cities Energy efficiency-energy intensive industries Better disease management 10 Micro-irrigation Municipal water leakage Carbon capture and storage Electronic medical records 11 Restoring degraded land Cultural tourism Energy access Better maternal and child health 12 Reducing packaging waste Smart metering Green chemicals Healthcare training 13 Cattle intensification Water & sanitation infrastructure Additive manufacturing Low-cost surgery 14 Urban agriculture Office sharing Local content in extractives 15 Timber buildings Shared infrastructure 16 Durable and modular buildings Mine rehabilitation 17 Grid interconnection BUSINESS & SUSTAINABLE DEVELOPMENT COMMISSION 5

6 2 Opportunities within agricultural solutions ACTION: MARKETS Opportunities in agricultural solutions Technology in large scale farms Sustainable aquaculture Size of incremental opportunity in , USD billions Technology in small scale farms: technology could offer a 40% improvement in yields on smallholder farm yields. 3 Technology in smallholder farms Micro-irrigation Restoring degraded land Sustainable aquaculture: Aquaculture is a growing industry, projected to almost double in size in the next 15 v years; will become an increasingly important source of protein. 2 Cattle intensification Urban agriculture Micro-irrigation: Drip irrigation and sprinklers have the potential to save net withdrawals of 250 billion to 300 billion cubic meters of water in BASED ON ESTIMATED SAVINGS OR PROJECTED MARKET SIZINGS IN EACH AREA. ONLY THE HIGH CASE OPPORTUNITY IS SHOWN HERE ROUNDED TO NEAREST $5 BILLION SOURCE: LITERATURE SEARCH ALPHABETA ANALYSIS BUSINESS & SUSTAINABLE DEVELOPMENT COMMISSION 6

7 2 Hotspot deep-dive: Opportunities in mobility systems Opportunities in mobility Size of incremental opportunity in , USD billions Circular models - automotive: 12 million vehicles are taken off the roads every year in the EU 12 tonnes of valuable resource. 2 Circular models - automotive 809 Electric and hybrid vehicles Public transport in urban areas Car and ridesharing Road safety: Road accidents are responsible for economic losses of up to 5% of GDP in developing countries. 3 Safety control devices constitute 32% of auto electronics sales in v Road safety equipment 170 Autonomous vehicles: 12 million fully autonomous vehicles are expected to be sold globally by Autonomous vehicles 161 ICE vehicle fuel efficiency BASED ON ESTIMATED SAVINGS OR PROJECTED MARKET SIZINGS IN EACH AREA. ONLY THE HIGH CASE OPPORTUNITY IS SHOWN HERE ROUNDED TO NEAREST $5 BILLION SOURCE: LITERATURE SEARCH ALPHABETA ANALYSIS ICE vehicle fuel efficiency: By 2030, automakers could reduce fuel consumption to 4.3 litres per 100 kilometres, (nearly 40% below today s levels). 5 BUSINESS & SUSTAINABLE DEVELOPMENT COMMISSION 7

8 2 Mobility systems: 3 new business models Optimizing resource use through carpooling app GoMyWay is a Nigerian carpooling app that allows vetted users to see who s driving on their route so that drivers can offer a ride. GoMyWay recommends a fare based on distance and fuel cost, but the rider and driver can agree on a different amount. The app is launching in South America, Kenya and Ghana soon. Transforming cars into mobile batteries with Vehicle to Grid Together, Nissan & Enel are allowing electric vehicle owners to sell energy back to the grid, empowering consumers and improving mass clean energy availability. If all UK vehicles were electric, added storage capacity would be enough to power the UK, Germany & France, saving the UK 2.4bn by Improving driving habits through a ride-hailing app SafeMotos is a ride-hailing app that makes Rwanda s motorcycle taxis more efficient and less dangerous. They install smartphones on motorbike taxis to track drivers behaviour and register data, pushing bad drivers to the outskirts of the system. BUSINESS & SUSTAINABLE DEVELOPMENT COMMISSION 8

9 2 Hotspot deep-dive: Opportunities in new healthcare solutions Opportunities in healthcare Risk pooling Remote patient management Size of incremental opportunity in , USD billions Remote monitoring: Remote monitoring could reduce the cost of treating chronic diseases by 10-20% by lowering the frequency of emergency room visits and unnecessary hospitalisation. 4 Telehealth Advanced genomics Advanced genomics: Research on genetic mutations and markers underlying non-communicable diseases is starting to facilitate tailored medicines. 3 Detection of counterfeit drugs 80 v Better disease management Electronic medical records Detection of counterfeit drugs: Estimated 1 million people die annually from counterfeit drugs and that ~30% of drugs are counterfeit. 4 Better maternal and child health 25 Healthcare training Low-cost surgery 1. BASED ON ESTIMATED SAVINGS OR PROJECTED MARKET SIZINGS IN EACH AREA. ONLY THE HIGH CASE OPPORTUNITY IS SHOWN HERE ROUNDED TO NEAREST $5 BILLION SOURCE: LITERATURE SEARCH ALPHABETA ANALYSIS Electronic medical records: In India, over 100 million redundant tests are ordered annually. 5 Cloud-based systems that store easily accessible and consistent records can address this. BUSINESS & SUSTAINABLE DEVELOPMENT COMMISSION 9 9

10 However, capturing the Prize is hard and major barriers still remain Internal Obstacles Existing business models can stop incumbents from seizing sustainable growth opportunities Capital Markets Policy Setting Market Conduct Incentives for investment in sustainable development still weak and short-term oriented Policy signals do not drive change, especially a failure to price in social and environmental externalities Cost pressure can create a race to the bottom on labour & environment BUSINESS & SUSTAINABLE DEVELOPMENT COMMISSION 10 10

11 Leading for sustainable development: 5 key actions ACTION AGENDA 1 Incorporate the Global Goals into company strategy Build support for the Global Goals as the right growth strategy 2 Drive transformation to sustainable markets with sector peers 3 Work with policy makers to pay the true cost of natural and human resources 4 Push for a financial system oriented towards longer-term sustainable investment 5 Rebuild the Social Contract 11