Delivering on the Sustainable Development Goals The inclusive
Delivering on the Sustainable Development Goals: The inclusive business approach WBCSD issue brief – March 2016
The Sustainable Development Goals (SDGs) Opportunity for businesses to engage more deeply as a strong and positive influence on society As an engine of economic growth and employment and a source of technology and innovation, business has a critical role to play and a self-interest in contributing to delivering the SDGs 2
WBCSD and the SDGs agenda WBCSD: strongly engaged in translating the SDGs’ ambitions and words into business action underpinned by business solutions Tangible example: inclusive business – ventures that go beyond philanthropy by integrating low-income communities into companies’ value chains as customers, suppliers, retailers, and distributors 3
Business case – 1 Bo. P accounts for more than 50% of all consumer spending in emerging markets and developing economies US$2. 3 trillion spent on food and beverages alone 44% are under age 20 61% are under age 30 Base of the economic pyramid (Bo. P) 3 billion people living on <US$3/day and 1. 5 billion people on up to US$ 9/day 4. 5 billion people at the BOP spend US$5 trillion in aggregate 1. 7 billion people live in congested urban environments 2. 8 billion people live in vast rural areas 4
Business case – 2 It encourages innovation From marketing to transportation to product design, inclusive businesses find innovative approaches to serve Bo. P customers. It’s a competitive advantage Inclusive businesses are earlymovers into untapped Bo. P markets. They enhance their brand value and license to operate by building their reputation as a business partner of choice. It expands the labor pool Inclusive businesses have higher access to appropriately skilled and more cost-effective employees. Better wages and more secure livelihoods contribute to local economies. It’s a supply chain strategy Sourcing materials locally from small-scale producers, inclusive businesses build stronger and more productive suppliers and secure access to local resources. 5
Inclusive business linkages to SDGs – 1 6
Inclusive business linkages to SDGs – 2 7
Inclusive business linkages to SDGs – 3 8
Solutions, but also barriers. . . Internal External • Opportunity costs of investment for venturing into new market segments • Inappropriate policy and regulatory frameworks • Strategic and operational misalignment, risk-aversion and lack of leadership support • Scarce availability of Bo. P market information • Capabilities or implementation capacities • Lack of knowledge and information of Bo. P consumers • Mismatch in skills of Bo. P labor force • Low access to financial services and resources for investments and consumers 9
WBCSD and inclusive business Illustrate best practices & lessons learned Develop toolkits & training programs Advocate business perspectives Identify & broker opportunities 10
WBCSD also seeks to leverage partnerships and policies for action at scale 11
Download the issue brief at: www. wbcsd. org/social-impact. aspx www. inclusive-business. org
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