The world’s largest corporate sustainability initiative has now established a local network in Norway. Kim Gabrielli, the brand-new Executive Director of UN Global Compact Norge, discusses how the business sector can – and should – act to save the world.
Promoting corporate responsibility and sustainability
A special initiative of the UN Secretary-General, the UN Global Compact is a worldwide organisation of more than 9 500 companies and 3 000 non-business signatories. The member companies commit themselves to following The Ten Principles of the UN Global Compact, which address fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption. The organisation is also an important network and platform for companies and stakeholders seeking to collaborate on advancing corporate sustainability.
“Corporate sustainability is comprised of two main pillars,” explains Gabrielli.
“On the one hand, companies must integrate sustainability as a fundamental value and take responsibility for their own value chain, their own human rights footprint and for social and environmental sustainability. On the other hand, it involves developing profitable solutions than can have a positive impact on the world – turning sustainability into good business.”
Kim Gabrielli, Executive Director of UN Global Compact Norge
More than 120 Norwegian companies are members of the UN Global Compact, including global heavyweights such as Telenor, Yara and Equinor. Together they have taken the initiative to establish a permanent network in Norway, and projects are already well underway.
One of the first projects is a solutions platform for creating sustainable businesses in the Arctic. In brief, a solutions platform starts with a risk and opportunity analysis and bringing together relevant companies in a specific region or to address a specific issue. After the initial phase, the companies identify areas in which they can create commercially successful solutions to a problem and then help each other to implement these solutions. The process is facilitated by UN Global Compact Norge and its partners.
In early 2020, UN Global Compact Norge will be launching an accelerator programme for small and medium-size startups with sustainable solutions in the Viken region of Eastern Norway to give them a helping hand in scaling up their solutions.
Norway has formal partnerships with the UN Global Compact, DNV GL and Sustainia, and The Explorer was planned in collaboration with these.
Sustainability is good business
Is “corporate sustainability” primarily a buzzword for idealistic investors or industry leaders seeking good PR? Gabrielli does not think so. He sees sustainability as a tangible and useful gift to companies.
“Sustainability is the greatest business opportunity of our time. Good business is about selling solutions that people and the planet need. The UN Sustainable Development Goals list the problems the world is facing, and companies have to devise products and services to address these. The Sustainable Development Goals are therefore like a menu of things companies can earn money on,” says Gabrielli.
He believes that we are approaching a turning point for corporate sustainability. This means that products and solutions whose aim is to make the world a better place are becoming very interesting, even to those who put profit first.
“The demand for socially responsible investing and sustainable finance instruments has grown enormously. Global investors will be investing some 30 per cent more in green bonds and sustainability bonds than they did in 2018, according to the Institute of International Finance.”
Moreover, growing consumer awareness and more stringent regulations mean that companies will be forced to incorporate elements of sustainability into their activities.
“Surveys from the US and the UK show that nearly nine out of ten consumers want companies to help them to lead more sustainable lifestyles. This is tremendous,” says Gabrielli.
One question is whether companies whose primary motives are profit and growth can actually earn money helping the world to become a better place. Gabrielli is optimistic, but points out that this will not happen by itself.
“In the most recent UN Global Compact Progress Report, nearly 90 per cent of global company leaders say that their company can and should make a difference. But when it comes to whether they are actually doing that, only 21 per cent reply yes. There is clearly a gap that needs to be filled, and an important step will be to place greater focus on how lucrative sustainable solutions are.”
“It will be imperative to start up and scale up more companies offering solutions and to ensure that existing solutions deliver results,” he adds.
One of UN Global Compact Norge's first projects is aimed at creating sustainable businesses in the Arctic.
Profitable and sustainable development
Gabrielli is far from the only person in the business world who enthuses about the interface between profitability and sustainable development. But he distinguishes himself from the crowd because he has worked to achieve the latter throughout his entire career in non-profit organisations, most recently as Assistant Secretary-General of UNICEF Norge.
Over the years he has come to understand the vast positive impact corporate sustainability can have.
“UNICEF has one objective: to give children hope and to save their lives, defend their rights, and help them fulfil to their potential. UNICEF’s analyses show that the lives of over 1 billion children are affected by the business sector and its value chains. This is both positive and negative. I therefore took the initiative to establish and later lead UNICEF Norge’s activities to work more closely with companies and their corporate sustainability and responsibility.”
He has also seen examples of how commercially successful solutions can have a positive impact on children’s lives.
“One of UNICEF’s main tasks is to provide education and vaccines for children in cooperation with its partners. In order to know how many children need a place in school, the children have to be registered at birth and get an identity card. In many countries, only a small proportion of the children are registered and therefore do not exist in the eyes of the country’s authorities. The collaboration between Telenor, UNICEF and Plan to register births via mobile phone is therefore very impressive. It has helped to increase the registration rate dramatically in a region of Pakistan.”
Gabrielli has now gone from a position in a UN organisation for children to a position in a UN organisation for businesses. He points out one area in particular where Norway demonstrates how implementing the UN Sustainable Development Goals is a sensible business strategy.
“Norway has come far in terms of gender equality. The international business community can learn from Norway that gender equality is not only a Sustainable Development Goal but also good business. Figures from the World Economic Forum show that firms with women leaders earn higher profits.”
Gabrielli is looking forward to rolling up his sleeves and making the Norwegian business sector even more sustainable.
“One half of Norway’s 100 largest companies have defined concrete targets for sustainability and corporate social responsibility. This is uplifting news and we can see that developments have been moving in the right direction since 2017. However, the goal has to be that every company has set such targets,” he concludes.