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SMN-695-E
April 2017

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Business and Sustainable Development Goals

“Businesses across the planet are not shying away from global risks such as climate change
and increasingly recognize the positive benefits of seizing the related opportunities. The report

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[“The Road to Dignity by 2030: Ending Poverty, Transforming All Lives and Protecting the
Planet”] confirms that there has been a turning point, where private sectors are now a critical
driver of sustainable development with emerging economies in the front seat.”

Georg Kell, former executive director of the UN Global Compact


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In December 2014, before the end of the Millennium Development Goals (MDGs), the Secretary-
General of the United Nations Ban Ki-moon released a synthesis report to frame the agenda
for defining the new Sustainable Development Goals. The new agenda included more goals
than its previous version and posited sustainable development as the central element to
establishing and interlacing economic growth, social justice and environmental conservation
for today’s youth and for future generations.
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For the most part, the new course of the proposed Sustainable Development Goals (SDGs) was
aligned with the transformations the world would undergo in the coming years. By 2050, it
was expected that the emerging economies in developing countries such as China, India, Brazil
and South Africa would bring about a) an increase in the size of the middle class, b) a shift in
political and economic global power and c) a need to find new carbon-free fuels to mitigate
the effects of climate change.
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The costs of achieving the new goals over the following 15 years were estimated at between
$3.3 trillion and $4.5 trillion annually. However, the private sector was expected to cover the gap
between the available public funds and the total necessary funds with annual contributions of
between $1.9 trillion and $3.1 trillion. Thus, in the coming years, the private sector would need to
play an important role in the economic expansion of emerging economies.
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This technical note was prepared by Professor Mike Rosenberg and Mireia Torelló, research assistant. April 2017.

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Last edited: 4/4/17


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The Millennium Development Goals
The history of the MDGs began in the 1990s with the participation of the Member States of the
United Nations in continuous conferences to define the most urgent priorities for human
development in the 21st century. In particular, three of these conferences – the United Nations

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Conference on Environment and Development in 1992, the International Conference on
Population and Development in 1994 and the Fourth World Conference on Women in 1995 –
along with the “Report of the Panel on United Nations Peace Operations,” commonly called the
“Brahimi Report” (2000), were the origin of what was known as the Millennium Declaration.

In September 2000, the Millennium Declaration was signed by 189 heads of state; it highlighted
the importance of promoting international humanitarian laws and sustainable development.

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The following year, the Secretary-General of the United Nations signed the “Road map towards
the implementation of the United Nations Millennium Declaration,” which defined the
implementation of the eight Millennium Goals and was composed of 18 targets and 48
indicators. These targets were defined as global aspirational achievements to be adopted by
national governments and to be measured using quantifiable indicators.

In 2005 at the World Summit in New York, the first full review was conducted with the presence
of 191 United Nations Member States. Two years later – and building on the results of the first full
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review – the initial indicators that had been specified in 2001 were modified to include four more
targets, with the aim of shaping a new framework for monitoring progress towards the new goals.

Challenges of the MDGs for Private Business


Some two years before signing the Millennium Declaration, on January 1999, the UN Secretary-
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General Kofi Annan challenged world business leaders to implement the universal principles of
the triple bottom line in their agendas.1 Later, in 2004, a 10th principle was added with the aim
of reducing corruption and supporting transparency. The initiative was launched through the UN
Global Compact on July 26, 2000. By 2015 it had gathered more than 12,000 participants,
including some 8,000 companies in approximately 145 countries across the globe.

According to former UN Secretary-General Ban Ki-moon: “The Global Compact asks companies
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to embrace universal principles and to partner with the United Nations. It has grown to become
a critical platform for the UN to engage effectively with enlightened global business.”

Another organization, the Global Reporting Initiative (GRI) also launched a sustainability
reporting framework in 2000. Its principles were integrated with other important global
frameworks for reporting sustainable performance, including the OECD Guidelines for
Multinational Enterprises, the UN Global Compact Principles, and the UN Guiding Principles on
Business and Human Rights. In 2015, GRI had more than 18,000 reports from 7,562 organizations
in more than 85 countries.
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1 The triple bottom line is an accounting framework with three parts: social, environmental (or ecological) and financial.

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As stated by Cynthia Carroll, former CEO of Anglo American: “Companies are major economic
actors who can play a significant role in areas like poverty alleviation, climate change, trade
liberalisation, supporting good governance, technology transfer and capacity-building. Indeed,
without the involvement of the private sector it is difficult to see progress on many of these fronts.”

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The achievement of the goals contemplated in the MDGs needed input from businesses to
promote international success rather than impede it. In 2000, there were three main reasons
for business to contribute to the MDGs. First, developing societies were offering long-term
business opportunities. Second, companies that collaborated in addressing the necessary
changes in these developing countries would improve their risk and reputation management,
reduce their costs, increase their revenues and maximize the use of resources. Last, the
achievement of stable societies would bring about stronger financial systems.

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Achievements of the Millennium Development Goals
Half Full or Half Empty
According to the United Nations, “The creation of the MDGs was, without any reservation, the
highest creation attempted by international organisms with specific targets that were
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monitored every year through a report released by the Secretary of the United Nations.” After
two decades of progress toward the MDGs, different opinions had begun emerging regarding
the implementation programs (see Exhibit 1).

On the one hand, the United Nations reported that “even though the progress rate had been
insufficient and uneven, the results were remarkable; one major achievement was that by the
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end of 2013 extreme poverty and global hunger were reduced by half.”2 In addition, significant
advancements were made in a) improving access to safe drinking water; b) improving
infrastructures for more than 200 million slum dwellers; c) increasing the number of children
who had access to school and promoting gender equality; and d) decreasing child mortality
by increasing health education. Unfortunately, four of the eight proposed goals did not reach
the stipulated objectives. Since 1990, the proportion of hungry people was not halved, child
mortality rate for under-fives had been not cut by two-thirds, maternal mortality rate was not
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reduced by three-quarters and the amount of population without access to basic sanitation was
not halved.

On the other hand, however, some international organizations suggested that the success of
the MDGs had been achieved either at the expense of cutting aid or by selecting the preferred
outcomes. 3 For example, some studies suggested that the decline in child mortality was
accomplished at the expense of the poorest quintile in those countries and that the primary
school enrollment was achieved at the expense of keeping children, mainly girls, in school and
disregarded the quality of the education. 4
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2 http://www.givingwhatwecan.org/sites/givingwhatwecan.org/files/reports/CCC%20MDG% 20Report.pdf, March 2015.


3 http://www.euractiv.com/sections/development-policy/millennium-goals-leave-most-deprived-behind-308442, March 2015.
4 M. Chopra and E. Mason, “Millennium Development Goals: background,” Archives of Disease in Childhood 2015; 100 (suppl. 1):
s2–s4, doi: 10.1136/archdischild-2013-305437.

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Strong opinions from nongovernmental organizations criticized the absence from the MDGs
of relevant policies for human development in the following decades such as world peace,
security and human rights. Besides, other less-important but still significant goals were not
included, such as environmental sustainability, inequality or decent work. This might be
explained by the fact that targets and/or indicators to measure progress on these issues over

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time were missing from the MDGs’ implementation plan.

Central Issues
There was a general consensus that three major obstacles and constraints debilitated the
achievement of the MDGs’ global targets. The first concern was the dysfunctional alignment
of political agendas between national and international frameworks, followed by the poor

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quality of the selected indicators. In addition, the global economic crisis diminished the aid
coming from developed countries.

Political Framework

There was broad agreement that the Millennium Declaration had seen some political failures,
which were mainly explained by a lack of experience among intergovernmental and
governmental institutions in dealing with such a big and ambitious project.
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To begin with, the Millennium Declaration was signed without any major opposition; as a
consequence, it did not follow an explicit framework. Furthermore, the policymakers’ lack of
awareness – in such a pioneering project – created an unconfined agenda for local, national and
international governments. The rigidity of international benchmarks also led to a failure in
providing aid to developing countries. In some countries, these barriers caused an inability to
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overcome poor governance, political interference and corruption. They also made it impossible
to adjust the MDGs’ agenda to the necessities of the local communities. For example, ending
poverty in disadvantaged minority groups or in isolated areas was an unachieved challenge.

Data Quality

The eight goals compiled in the MDGs included 21 targets (originally 18) and 60 indicators
(originally 48), which were inconsistent with one another in most cases. Thus, implementation
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of the MDGs was faced with the challenge of connecting different sources of datasets in order to
define valid indicators for keeping track of each of the goals over time. Although the
implementation of the MDGs had bolstered the means for data collection in many governmental
statistics offices, after 15 years, more than 40 developing countries still lacked sufficient data to
track performance over time for key indicators such as extreme poverty and hunger. This,
together with the absence of transparent indicators, was the major reason that experts were
unable to quantify the advancement of these global targets. For example, international
organizations suggested that one of the major datasets used for reporting the progress of the
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MDGs – household surveys – was for the most part unreliable due to a lack of quality.

Another issue that had to be overcome was the unrealistic data presented by the United Nations
at the beginning of the program and throughout its implementation. For example, with regard
to child mortality some organizations argued that the progress achieved as a result of the MDGs
would have been reached anyway as the result of a global trend: data extrapolation
demonstrated that the child mortality rate had been decreasing during the previous two decades

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at the same pace as 10 years prior. 5 Another example was that certain of the international
goals achieved by the MDGs could be completed without any external aid, such as growth in
China and India: both those countries had accomplished the achievement of reducing overall
poverty by half, but not in an equally distributed way.

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Global Economic Crisis

The global economic crisis was one of the major hindrances of the MDGs, and the main
consequences were as follows. First, a decrease in total international aid. The budgets of leading
world countries diminished rapidly, which allowed global financial institutions (i.e., the World
Bank and the International Monetary Fund) to define development priorities. Thus, none of the
developed countries achieved the 0.7% of the promised foreign aid. Second, broad estimates

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predicted that the growth of poor countries would have increased by at least 5% of their gross
domestic product if the financial crisis had not occurred. Third, there was a generally accepted
view that, in some countries, government spending for the implementation of the MDGs was
insufficient, creating a disparity between marginal and supported populations.6

The Sustainable Development Goals


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The Sustainable Development Goals (SDGs) were the continuation of the MDGs after the end
of 2015. The SDGs were first officially debated in the United Nations Conference on Sustainable
Development in Rio de Janeiro in 2012, known as Rio+20. Two years later, in July 2014, an
Opening Working Group on SDGs proposed to the UN General Assembly a list of defined goals,
detailed in Exhibit 2.

On December 4, 2014, the UN Secretary-General Ban Ki-moon presented an unedited synthesis


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report to the United Nations Member States regarding the post-2015 development agenda. “The
Road to Dignity by 2030: Ending Poverty, Transforming All Lives and Protecting the Planet”
summarized two decades of development with the aim of serving as a tool for developers to
put together the post-2015 agenda. According to the report, “The implementation of the MDGs
had turned into a continuous learning process for all the involved institutions. Thus, the lessons
acquired from the implanted programs – successfully implemented or not – were the new
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groundwork for the creation of the new Sustainable Development Goals.”

The panel of the post-2015 development agenda was made up of 27 leading members from
civil society and from the private and public sectors. The agenda represented an opportunity
to bring together global leaders and institutions to build a new model for ending poverty and
to steer the world towards better fulfilling humanity’s current and future needs and demands.
Major groups were selected to represent the key sectors of society to ensure the engagement of
citizens, social and economic actors and expert practitioners. In addition, the United Nations
invited other stakeholders – such as local community representatives, volunteer groups and
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foundations, migrants and families, as well as seniors or people with disabilities – to participate
in the process.

5 Ibid.
6 http://www.governmentspendingwatch.org/research-analysis/latest-analysis, March 2015.

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Olav Kjørven, the assistant secretary-general and director of UNDP’s Bureau for Development
Policy, declared: “Beyond 2015 it is essential that the international community agree to join a
new development agenda… What kind of goals do we need? Should they focus on providing
the poorest with a more dignified life, but also consider challenges such as discrimination and
the environment, a sort of 2.0 version of the current MDGs? Or do we instead choose an agenda

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for all of us, where we include targets to reduce rich countries’ ecological footprint and
strengthen the protection of human rights globally?” 7

Diverse groups responded to this opportunity by presenting different proposals. The strongest
opposition group, the Copenhagen Consensus Center (CCC) presented a very controversial
proposal after working with some of the world’s top economists. The group believed that 85%
of the proposals presented by the United Nations did not consider any economic costs and

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benefits of the goals across multiple sectors. Contrary to the MDGs, the CCC’s proposal aimed
to improve the present living conditions of the world’s population by promoting short-term
scenario benefits that could contribute to the prevention of the causes rather than one costly
“zero” long-term solution. 8 As a result, the group believed that prioritizing their assessment
over the United Nations proposal would make best use of every dollar spent in creating a
sustainable future.
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Challenge of the Sustainable Development Goals
New Future of the World
The state of the world was steadily shifting and demanded a new sustainable agenda in order
to create a prosperous society for young people and for future generations – which would
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integrate the social, economic and environmental transformations that the planet will undergo
in the near future. Ban Ki-moon signed “The Road to Dignity” for this reason, proposing one
universal and transformative agenda for sustainable development, underpinned by rights, and
with people and the planet at the center. This new agenda, in order to succeed, needed to reflect
the future challenges that humanity would face in the coming 15 years. These included:

a) the eradication of extreme poverty, which according to the United Nations could be
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achieved within one more generation;


b) a global increase of the middle class in middle-income countries;
c) an increase of the population on the planet – specifically in Asia – which was likely to
reach nine billion by 2050;
d) an increase in the number of immigrants both on an international level and an internal
level;
e) an increase in wages and an expansion of social protections;
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7 http://www.undp.org/content/undp/en/home/ourperspective/ourperspectivearticles/2011/08/23/why-so-far-the-millennium-
development-goals-have-been-a-success.html.
8 http://www.copenhaguenconsensus.com/post-2015-consensus/background, March 2015.

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f) a development of new green technologies to accelerate the creation of more sustainable
and more efficient practices, which will lead to a data revolution;
g) the creation of sustainable cities to diminish the effect of climate change and to use
the limited resources of the planet more efficiently;

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h) the application of sustainable development models in companies;
i) global initiatives to promote new sustainable models of production and consumption;
j) more revenues in the public sector through reforming tax systems, fighting tax evasion
and applying other transparency measures.

Six Essential Elements

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Ban Ki-moon stated in “The Road to Dignity” that “the resulting agenda is expected to emerge
from an inclusive, open and transparent process with the participation of multiple stakeholders,
together with 88 countries,” 9 and “in order to facilitate the reinforcement of the agenda at the
local and international level, the Member States will need to integrate six essential elements.”
The integration of the six elements – which are summarized in Exhibit 3 – was essential to
delivering the SDGs.
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“The Road to Dignity” specified that:

“Sustainable development must be an integrated agenda for economic, environmental


and social solutions. Its strength lies in the interweaving of its dimensions. This
integration provides the basis for economic models that benefit people and the
environment; for environmental solutions that contribute to progress; for social
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approaches that add to economic dynamisms and allow for the preservation and
sustainable use of the environmental commons; and for reinforcing human rights,
equality and sustainability. Responding to all goals as a cohesive and integrated whole
will be critical to ensuring the transformation needed at scale.”

Implications for the Private Sector


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Recommended Policy Direction


Policy directions for private companies in order to achieve the SDGs needed to be clear and
specific. For instance, the “World Investment Report 2014” (see Exhibit 4a) recommended that
leadership should come from international organizations a) by creating a set of principles for
SDG policymaking and for clarifying the investment aims of the international community;
b) by forming a multistakeholder community for participating in the SDGs; and c) by defining
the multiagency institutional arrangements needed to establish a framework for supporting the
least developed countries (i.e., incentive scheme design and regulatory frameworks) and for
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investing in education at the level of corporate governance (i.e., educational programs, MBA
programs and accounting training).

9 http://www.undg.org/docs/12532/POST%202015%20-%20ENGLISH%20-%20July%2008.pdf.

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Sources of Funding for the SDGs: The Importance of the Private Sector
The costs of achieving the SDGs were estimated at between $3.3 trillion and $4.5 trillion per
year, and current investments levels left a gap of between $1.9 trillion and $3.1 trillion. Thus,
increasing the participation of the private sector could potentially cover a large portion of this

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gap. For instance, the total estimated investment in economic structures in developing
countries would need to increase over $1.6 trillion per year from 2015 to 2030. More than half
of this investment would be represented by four sectors: power, transport, telecommunications,
and water and sanitation (see Exhibit 5).

In 2014, the private sector shared a high portion of infrastructures in developing countries:
from 30%-80% depending on the industry except for water and sanitation, which ranged

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between 0%-20%. The variation of the participation of the private sector from one country to
the next and between developed and developing countries could be explained by public policy
preferences, conditions, and the development strategies in each country. In addition, the fact
that the private shares in developed countries were higher for the key sectors of the SDGs
(Exhibit 5) indicated that the private contribution could be much higher in the future. In order
for this to happen, strong leadership from governmental institutions was needed in the form
of setting guiding principles, encouraging action and ensuring policy coherence. Moreover,
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although the private and public sectors are complementary, governments and other institutions
would face policy dilemmas. For instance, public financing was vital and central – and for
some sectors, such as water sanitation, it was crucial to ensuring access for the population –
but after the crisis, in many countries the situation was precarious. In this case and in general,
the private sector should not supplant the big public sector, since the privatization of resources
was not an option to fulfill the gap to accomplish the SDGs.
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Mobilization of Funding
The mobilization of funding implied many actors – from owners of capital, financial
intermediaries and markets to advisors – which would need to be legislated at each of the
application levels, together with their interactions. International organizations such as the
United Nations, the World Bank and the Overseas Development Institute had presented different
proposals to illustrate the necessary steps to successfully achieving the full execution of the
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SDGs. See Exhibit 4 for a summary of the suggested action plan for private investment in the
SDGs according to the United Nations.

Past and Future Instruments to Create a Supportive Financial System

In the past, three main issues impeded investment in sustainable projects. First, the market failure
of global capital markets. Second, the lack of transparency in environmental, social and
governance performance. Third, the rewards that individuals and companies received for
promoting nonsustainable investments. Hereafter, in order to create an accommodating financial
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system, it would be necessary to establish instruments to guarantee that all the players in the
investment chain would a) internalize social costs and benefits throughout the investment chain,
b) promote financial transparency so that investors could make informed decisions and
c) undertake the necessary financial market modifications to ensure investment in the SDGs.

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As such, in 2014, the “old” financial instruments were insufficient. In the past, green bonds
and impact bonds had been used to integrate environmental and social causes into investments.
However, in the future, these bonds would need to be certified and labelled in order to verify
the authenticity of the green and social aims of these projects.

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Creating new mechanisms to provide a fertile ground for developing the targets of the SDGs
could be done at both a macro and a micro level. Mechanisms at the macro level could help to
expand private funding to the public sector in several ways, such as vertical funds, matching
funds, front-loading of aid and future-flow securitization (see Exhibit 4a). At the micro level,
mechanisms to create new channels for attracting financial markets and investors in strong
economies could be created by aggregating small or patched projects to invite large investors
and by starting initiatives to promote fundraising through donations or investments such as

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crowdfunding.

New Policies for Ensuring Sustainable Development of the SDGs

The entrance of private funding into the SDGs would mainly happen through the creation of
new policies. In the past, the obstacles that this initiative had encountered were the result of
the “old” model, such as the broad opinion that the SDGs would be covered by public funds in
order to avoid associated risk-return ratios for SDG investment at country, policy, market, and
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project levels. The lack of expertise regarding direct investment in developing financial markets
was causing the request for higher rates of return among investors.

There were many challenges when it came to managing the impact of private investment in
the SDGs. First, developing economies did not have a strong absorbing capacity from
investments. Second, the social and environmental risks of private investment needed to be
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addressed. Third, the stakeholders also needed to be engaged and, last, the impact of trade-offs
needed to be managed to avoid the negative side effects of investments. In order to achieve
these key challenges, the United Nations proposed a list of policy options (see Exhibit 4b and
Exhibit 4c).

Execution Plan
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The SDGs represented a very ambitious project, which required a very robust implementation
strategy to succeed. The efficiency of the execution plan – which would depend on the quality
and the fundamental policies and practices – would determine the price of achieving the SDGs.
The different execution plans were presented by recognized organizations (i.e., the United
Nations and the World Bank) in order to implement the SDGs. The application phase was
simplified into three main steps that would define a) what had been learned from the past,
b) what new policies needed to be developed, and c) how to secure the involvement of the
private sector. The SDGs were intended to become a transformative tool for sustainable
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development through an open and inclusive process, which aimed to end poverty, transform
all lives and protect the planet. The implementation plan was designed to include all the
necessary changes to guarantee dignity for all the people on the planet.

Despite the experience of the United Nations in implementing the MDGs, some institutions and
organisms were still uncertain about what strategies to follow to execute the SDGs. The
assistant secretary-general and director of the UNDP’s Bureau for Development Policy declared:

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“Companies are ready to change how they do business and to contribute by transforming
markets from within and making production, consumption and the allocation of capital more
inclusive and sustainable.” However, in order to avoid the worst-case scenario for private
companies – the impoverishment of the principal investors in the SDGs – companies needed
clear policies and frameworks for investing in developing economies.

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One group that presented strong opposition to the post-2015 agenda was the Copenhagen
Consensus Center (CCC), which was managed by Bjørn Lomborg, an economist who had
strongly suggested directing public funds towards the most cost-efficient solutions first. The
attitude of the CCC toward the SDGs was that high-cost “zero targets” might be unrealistic to
achieve. For example, the organization suggested that Goal 1 – eradicate extreme poverty by
2030 was a “complex and socio-economic and potentially political issue,” since “much of the

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extreme poor are not necessarily from the poorest countries, but rather are minorities living in
poverty in otherwise wealthy, middle-income countries.” Instead, the CCC proposed beneficial
measures in order to obtain profits for every dollar spent: “If we could replace a goal that saves
one life for every $500,000 spent with a goal that saves 10 lives for the same amount, how
much more good we could do over the next 15 years?” The CCC also pointed out that obtaining
the data to achieve the SDGs was very expensive; it cost about $1.5 billion for each measured
target. Thus, the number of targets should be diminished to ensure that the investment would
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be profitable. As an example of the most profitable targets, the CCC proposed a list of targets
that could bring higher benefits per dollar spent (see Exhibit 6).

It was still uncertain which option would be better for the private sector. Policies needed to be
developed for international benchmarks. Local and national governments were unsure of how
invested capital coming from abroad would remain and generate further revenues. Private
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investors were unsure how this full process would proceed and what the return on investment
in the future would be.
No
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Exhibit 1
List of Goals Identified as Most Urgent to Be Adopted by the MDGs and the
Progress Accomplished Over the Past Two Decades

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Poverty

The target of reducing extreme poverty rates by half was met five years ahead of the
2015 deadline. However, about 22% of the population is still living in extreme poverty.
The global poverty rate at $1.25 a day fell in 2010 to less than half the 1990 rate. 700
million fewer people lived in conditions of extreme poverty in 2010 than in 1990.
However, at the global level, 1.2 billion people are still living in extreme poverty.

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Globally, 384 million workers lived below the $1.25 a day poverty line in 2011 – a reduction of 294
million since 2001.
The gender gap in employment persists, with a 24.8 percentage point difference between men and
women in the employment-to-population ratio in 2012.

Hunger
The hunger reduction target should be almost met by 2015. However, about 12.5% of the population is
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still in hunger.
Globally, about 842 million people are estimated to be undernourished.
More than 99 million children under the age of five are still undernourished and underweight.
Enrollment in primary education in developing regions reached 91.2% in 2011, up
from 82% in 1999, which means more kids than ever are attending primary school.
tC

In 2012, 58 million children of primary school age were out of school.


Even as countries with the toughest challenges have made large strides, progress in
primary school enrolment has slowed. One in 10 children of primary school age was
still out of school in 2012.
Gender gaps in youth literacy rates are also narrowing. Globally, 781 million adults and 126 million youth
(aged 15 to 24) worldwide lack basic reading and writing skills, and more than 60% of them are women.
No

The world has achieved equality in primary education between girls and boys, but few
countries have achieved that target at all levels of education.
The political participation of women keeps increasing. In January 2014, in 46 countries
more than 30% of members of parliament in at least one chamber were women.
In many countries, gender inequality persists and women continue to face discrimination
in access to education, work and economic assets, and participation in government. For example, in every
developing region, women tend to hold less secure jobs than men, with fewer social benefits.
Violence against women continues to undermine efforts to reach all goals.
Do

Poverty is a major barrier to secondary education, especially among older girls.


Women are largely relegated to more vulnerable forms of employment.

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SMN-695-E Business and Sustainable Development Goals
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Exhibit 1 (Continued)

Despite population growth, the number of deaths in children under five worldwide
declined from 12.7 million in 1990 to 6.3 million in 2013, which translates into about

rP
17,000 fewer children dying each day.
Since 2000, measles vaccines have averted over 14 million deaths.
Despite determined global progress in reducing child deaths, an increasing proportion
of child deaths are in sub-Saharan Africa and Southern Asia. Four out of every five deaths of children
under age five occur in these regions.
As the rate of under-five deaths overall declines, the proportion that occurs during the first month after

yo
birth is increasing.
Children born into poverty are almost twice as likely to die before the age of five as those from wealthier
families.
Children of educated mothers – even mothers with only primary schooling – are more likely to survive
than children of mothers with no education.
The maternal mortality ratio dropped by 45% between 1990 and 2013, from 380 to
op
210 deaths per 100,000 live births. All regions have made progress, but accelerated
interventions are required in order meet the target.
In Eastern Asia, Northern Africa and Southern Asia, maternal mortality has declined
by around two-thirds.
The proportion of deliveries in developing regions attended by skilled health personnel rose from 56%
in 1990 to 68% in 2012.
tC

The maternal mortality ratio in developing regions is still 14 times higher than in the developed regions.
The rural-urban gap in skilled care during childbirth has narrowed.
More women are receiving antenatal care. In developing regions, antenatal care increased from 65% in
1990 to 83% in 2012.
Only half of women in developing regions receive the recommended amount of health care they need.
No

Fewer teens are having children in most developing regions, but progress has slowed.
The large increase in contraceptive use in the 1990s was not matched in the 2000s.
The need for family planning is slowly being met for more women, but demand is increasing at a rapid
pace.
Official Development Assistance for reproductive health care and family planning remains low.
New HIV infections continue to decline in most regions.
The number of new HIV infections per 100 adults (aged 15 to 49) declined by 44%
Do

between 2001 and 2012.


An estimated 2.3 million people of all ages are newly infected and 1.6 million people
died from AIDS-related causes.
Comprehensive knowledge of HIV transmission remains low among young people, along with condom use.

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Business and Sustainable Development Goals SMN-695-E

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Exhibit 1 (Continued)
About 210,000 children died of AIDS-related causes in 2012, compared to 320,000 in 2005.
Antiretroviral medicines to treat HIV were delivered to 9.5 million people in developing regions in 2012.

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Over 900,000 pregnant women living with HIV globally were receiving antiretroviral prophylaxis or
treatment by December 2012.
Between 2000 and 2012, the substantial expansion of malaria interventions led to a 42% decline in
malaria mortality rates globally.
In the decade since 2000, 3.3 million deaths from malaria were averted, and the lives of three million
young children were saved.

yo
Thanks to increased funding, more children are sleeping under insecticide-treated bed nets in sub-
Saharan Africa.
Treatment for tuberculosis has saved some 22 million lives between 1995 and 2012.
Forests are a safety net for the poor, but they continue to disappear at an alarming rate.
Global emissions of carbon dioxide (CO2) have increased by more than 50% since 1990.
op
In the 26 years since the adoption of the Montreal Protocol on Substances that Deplete
the Ozone Layer, there has been a reduction of over 98% in the consumption of ozone-
depleting substances.
Afforestation and the natural expansion of forests have reduced the net loss of forest from an average
of 8.3 million hectares annually in the 1990s to an average of 5.2 million hectares annually between
2000 and 2010.
tC

Protected ecosystems covered 14% of land and coastal marine areas worldwide by 2012.
The world has met the target of halving the proportion of people without access to
improved sources of water, five years ahead of schedule.
Between 1990 and 2012, 2.3 billion people gained access to improved drinking water
sources.
Over a quarter of the world’s population has gained access to improved sanitation
No

since 1990, yet one billion people still resort to open defecation.
The vast majority – 82% – of people practicing open defecation now live in middle-income, populous countries.
In 2012, 748 million people remained without access to an improved source of drinking water.
Despite progress, 2.5 billion people in developing countries still lack access to improved sanitation facilities.
The target was met well in advance of the 2020 deadline. More than 200 million of these people gained
access to improved water sources, improved sanitation facilities, or durable or less crowded housing,
thereby exceeding the MDG target.
Do

863 million people are estimated to be living in slums in 2012, compared to 650 million in 1990 and
760 million in 2000.

Source: United Nations, http://www.un.org/millenniumgoals/, last accessed September 2015.

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SMN-695-E Business and Sustainable Development Goals
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Exhibit 2
List of Goals From the Open Working Group on Sustainable Development Goals
Proposed to the United Nations Assembly

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Sustainable Development Goals
End poverty in all its Ensure availability and
forms everywhere. sustainable management
of water and sanitation
for all.

yo
End hunger, achieve food Ensure access to
security and improved affordable, reliable,
nutrition and promote sustainable and modern
sustainable agriculture. energy for all.

Ensure healthy lives and Promote sustained,


promote well-being for inclusive and sustainable
op
all, at all ages. economic growth, full and
productive employment
and decent work for all.

Ensure inclusive and Build resilient


equitable quality infrastructure, promote
tC

education and promote inclusive and sustainable


lifelong learning industrialization and
opportunities for all. foster innovation.

Achieve gender equality Reduce inequality within


and empower all women and among countries.
and girls.
No
Do

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Business and Sustainable Development Goals SMN-695-E

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Exhibit 2 (Continued)

Make cities and human Protect, restore and promote sustainable


settlements inclusive, use of terrestrial ecosystems, sustainably

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safe, resilient and manage forests, combat desertification,
sustainable. and halt and reverse land degradation
and halt biodiversity loss.

Ensure sustainable Promote peaceful and inclusive


consumption and societies for sustainable development,
production patterns. provide access to justice for all and

yo
build effective, accountable and
inclusive institutions at all levels.

Take urgent action to Strengthen the means of


combat climate change implementation and revitalize the
and its impacts. global partnership for sustainable
development.
op
Conserve and
sustainably use the
oceans, seas and marine
resources for sustainable
development.
tC

Source: United Nations, May 2015, https://sustainabledevelopment.un.org/focussdgs.html, last accessed September 2015.
No
Do

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SMN-695-E Business and Sustainable Development Goals
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Exhibit 3
Six Essential Elements for Delivering on the Sustainable Development Goals

x Dignity: to end poverty and fight inequalities by 2030 through the participation of

rP
women, youth, minorities, indigenous people, persons with disabilities, older persons,
and adolescents to empower the poor.

x People: to ensure healthy lives, knowledge and the inclusion of women and children.
The young population has the right to be educated in a safe environment, to universal
healthcare coverage, access and affordability, and to learn healthy behaviors, including
those related to water, sanitation and hygiene. Teachers must have the resources to
transfer the knowledge in a safe global workplace.

yo
x Prosperity: to grow a strong, inclusive and transformative economy. Economic
growth should be led by shared prosperity, which meets the needs of the population
and is sustainable and equitable at the same time. Investment in innovative, sustainable
and resilient infrastructures, cities, human settlements, industrialization, small and
medium-sized enterprises, energy and technology can create employment and mitigate
negative impacts on the environment.
op
x Planet: to protect our ecosystems for all societies and our children. Planet boundaries
need to be addressed by mitigating the effects of climate change, halting the loss of
biodiversity and stopping desertification and unsustainable land use. It is known that
climate change is caused mainly by human activities, and the increase in global
temperatures must be limited to 2°C to avoid the extreme effects of climate change.
tC

x Justice: to promote safe and peaceful societies and strong institutions. Effective
governance in sustainable societies demands that a country’s institutions as a whole
be inclusive, participatory and accountable to the population at all levels. Laws and
institutions must protect human rights and fundamental freedoms, and they must
include measures to combat corruption.

x Partnership: to catalyze global solidarity for sustainable development.


No

Source: “World Investment Report 2014. Investing in the SDGs: An Action Plan,” United Nations Conference on Trade and Development.
Do

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SMN-695-E Business and Sustainable Development Goals
Bu
Do
Exhibit 4
Action Plan for Private Sector Investment in the SDGs. Policy Responses Are Indicated in Blue Text. The Source of All Flow Charts
Is “World Investment Report 2014. Investing in the SDGs: An Action Plan,” United Nations Conference on Trade and Development
No
a) Mobilizing funds for investment in the SDGs

MOBILIZING FUNDS FOR INVESTMENT SDG


tC
Policy leadership Potential private-sector Challenges to Creating a fertile soil Building an SDG-
• Investment on contribution mobilizing funds for for innovative supportive financial
policymaking • Power SDG investment financing approaches system
• SDG investment • Climate change • Market failures • Facilitate and support • Build and improve
targets mitigation • Lack of transparency SDG pricing mechanism to
• Global multi- • Food security on ESG performance • Green Bonds curb externalities
op
stakeholder platform on • Telecommunications • Rewards that • Impact Bonds • Promote sustainable
investing in the SDG • Transport individuals and firms • Expand and creating stock exchanges
• Multi-agency technical • Ecosystems/biodiversity receive in terms of pay funding mechanisms • Introduce financial
assistance facility • Health • Vertical funds market reforms
• Change • Water & sanitation • Matching funds • Reform pay,
business/investors • Climate change • Front-loading of aid performance and
yo
mindsets Adaptation • Future-flow reporting structures
• Education securitization • Promote rating

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• Build and support “go- methodologies
Potential sources of to-market” channels
corporate finance • Project aggregation
• Bank assets & securitization
rP
• Pension funds • Crowd funding
• Insurance companies
• Transnational
corporations
• Sovereign wealth funds
os
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t

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SMN-695-E Business and Sustainable Development Goals
Bu

Exhibit 4 (Continued)
Do
b) Channeling investment into the SDGs

ALLOCATION OF THE CAPITAL


No
Challenges to Alleviating entry Expanding the use of Establishing new Building SDG
channeling funds into barriers, while risk-sharing tools for incentives schemes investment
the SDGs safeguarding public SDG investments and new generation of partnerships
• Entry barriers interest • Widen the use of investment promotion •Partnerships between
• Inadequate risk-return • Enabling policy public-private institutions home-host countries
tC
ratios environment partnerships •Transform IPAs into investment promotion
• Lack of information, • Gradual approach • Link the availability of SDG investment agencies
effective packaging and towards liberalization of guarantee and risk development agencies •SVE-TNC-MDB
promotion of bankable SDG sectors insurance facilities to •Redesign of investment triangular partnerships
investments projects • Exclusive rights SDGs incentives for SDGs
• Lack of investors granted to single • Public sector and ODA- •Establish regional SDG
op
expertise service producers leveraging and blended investment compacts
• Foreign ownership financing
limitations instead of • Advanced market
complete prohibitions commitments and other
• Agriculture: market creation
promoting mechanisms
outgrower schemes
yo
• Infrastructures:
establishment

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independent
regulator
• Other sectors:
policy action
rP
os
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SMN-695-E Business and Sustainable Development Goals
Bu
Do
Exhibit 4 (Continued)

c) Ensuring sustainable development impact of investment in the SDGs


No
ENSURING SUSTAINABLE DEVELOPMENT IMPACT

Challenges in Increasing absorptive Establishing effective Good governance, Implementing SDG


tC
managing the impact capacity regulatory framework capable institutions, impact assessment
of private investment • Key policy areas: and standards stakeholder systems
in SDG sectors • Promote • Safeguarding quality engagement • Develop a common set
• Weak absorptive entrepreneurship and inclusiveness of • Attracting investment of SDG impact
capacity in developing • Boost technology public services • Stakeholder indicators
economies and skills • Contractual engagement • Require integrated
op
• Risks associated with development arrangements between • Synergies and trade- corporate reporting for
private investment in • Widen and deepen host countries and offs SDGs
SDG sectors SDG-oriented private investors can
• Need to engage linkages programs play a significant role
stakeholders and • SDG incubators and • Balancing the need for
manage tradeoffs special economic fair tax revenues with
effectively zones investment
yo
• Inadequate investment attractiveness.
impact measurement • Ensuring coherence in

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and reporting tools national and
international
policymaking
• Making international
rP
investment agreements
proactive in mobilizing
investments into SDG
os
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t
SMN-695-E Business and Sustainable Development Goals
Bu

os
Exhibit 5
Current Investment, Investment Needs and Gaps, and Private Sector Participation
in Key SDG Sectors in Developing Countriesa

rP
yo
op
tC
No

a
Investment refers to capital expenditure. Operating expenditure, though sometimes referred to as “investment” is not included.
The main sources used, in addition to those in box IV.2, include, by sector:
Infrastructure: ABDI (2009); Australia, Bureau of Infrastructure, Transport and Regional Economics (2012); Banerjee (2006);
Bhattacharyay (2012); Australia, Reserve Bank (2013); Doshi et al. (2007); Calderon and Serven (2010); Cato Institute (2013); U.S. Congress
(2008); Copeland and Tiemann (2010); Edwards (2013); EPSU (2012); Estache (2010); ETNO (2013); Foster and Briceno-Garmendia (2010);
Goldman Sachs (2013); G-30 (2013); Gunatilake and Carangal-San Jose (2008); Hall and Lobina (2010); U.K. H.M. Treasury (2011, 2013);
Inderst (2013); Indonesia, Ministry of National Development Planning (2011); Izaguirre and Kulkarni (2011); Lloyd-Owen (2009); McKinsey
(2011b); Perrotti and Sánchez (2011); Pezon (2009); Pisu (2010); India, Planning Commission (2011, 2012); Rhodes (2013); Rodriguez et al.
(2012); Wagenvoort et al. (2010); World Bank (2013a) and Yepes (2008);
Climate change: AfDB et al. (2012); Buchner et al. (2011, 2012) and Helm et al. (2010);
Social sectors: Baker (2010); High Level Task Force on Innovative International Financing for Health Systems (2009); Institute for Health
Do

Metrics and Evaluation (2010, 2012); Leading Group on Innovative Financing to Fund Development (2010); McCoy et al. (2009); The
Lancet (2011, 2013); WHO (2012) and UNESCO (2012, 2013).
b The private sector share for each sector shows large variability between countries.

c Excluding investment required for climate change, which is included in the totals for climate change mitigation and adaptation.

d Investment requirements in ecosystems/biodiversity are not included in the totals used in the analysis in this section, as they overlap

with other sectors.


Source: “World Investment Report 2014. Investing in the SDGs: An Action Plan,” United Nations Conference on Trade and Development.

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Business and Sustainable Development Goals SMN-695-E

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Exhibit 6
Benefit per Dollar Spent for Various Development Targets of the Copenhagen
Consensus Center

rP
yo
op
Source: “The economics of optimism: The debate heats up about what goals the world should set itself for 2030,” The Economist,
January 24, 2015.
tC
No
Do

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