December 21, 2022
The United Nations’ 2030 Agenda for Sustainable Development provides a common framework and universal call to action for all countries and all sectors to collectively advance prosperity for all people and our shared planet. This collective global response erases the imaginary lines between developed and developing countries and private, public and not-for-profit organizations as they combine their respective expertise and resources to tackle the common issues outlined in the 17 Sustainable Development Goals (SDGs). As more companies in Canada embrace Environmental, Social, and Governance (ESG) principles to run and grow their businesses at home and abroad there is a significant opportunity for increased collaboration with the international development sector.
The current ESG movement builds upon decades of sustainability momentum from corporate social responsibility to triple bottom line thinking as companies respond to growing expectations from a broader set of stakeholders. Investors have been driving the recent ESG investing boom as they evaluate the financial risk that companies face from climate change shocks and broader social concerns. Employees are seeking meaning from their work and seek employers that are making positive contributions to the world Consumers are increasingly choosing products and services from responsible companies that reflect their own environmental and social values.
International Development professionals can leverage their expertise and align with the private sector ESG momentum to create more impact in every SDG area. For instance, developing resilient, carbon neutral and socially responsible sustainable supply chains is of critical importance to companies. Economic development practitioners have extensive experience in countries where many Canadian companies source their inputs - from raw natural resources to input agriculture commodities to manufactured goods. This unique expertise is vital to help Canadian business leaders improve supply chain transparency and performance through reducing Scope III carbon emissions or ensuring fair wages and working conditions.
Companies are struggling to attract, recruit and retain top talent in both Canada and across their global operations. Social issues in ESG prioritize increasing Equity, Diversity and Inclusion in their hiring and workforce to better represent the communities and customers where companies operate. Livelihoods programs have helped to identify, develop skills and job placements for decades and can play a critical role in helping Canadian businesses address their hiring gaps at home & abroad.
One of the greatest challenge that companies are facing in delivering on their ESG promise on reporting and tracking ESG progress. Tracking environmental progress via carbon emissions or water usage is more straight forward than tracking social progress. International Development professionals have decades of experiences monitoring & evaluating programs for donors and can provide this unique expertise to both help companies with their reporting but also setting the right global standards for social progress of ESG.
These are but three examples on how international development professionals can lead the way in closing the gap between private sector ESG and Sustainability initiatives in Canada and international development programs around the world. Through a more holistic approach there is an unprecedented opportunity to bring together the private sector and international development to create better results for communities and our planet.