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The Trillion Dollar Shift

Achieving the Sustainable Development Goals;


Business for Good is Good Business

MARGA HOEK

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Colofon
First published 2018
by Routledge
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and by Routledge
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the latest research on climate change, natural resources, sustainable energy, business and development to
a global audience of researchers, students, sustainable practitioners and anyone interested in creating a
sustainable future for all.

© 2018 Marga Hoek

Chief Editor : Amie de Jeu


Business analyst & researcher : Theresa McCar ty
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Publisher’s Note
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Acknowledgements
I dedicate this book to my three beautiful children Faye, Boyd and Gray. They endured my mission to write this
book throughout the last two years and especially the last months. My mission in that sense was theirs. And
it will be, since it is actually their future and the future of their children to be, that is at stake. I sincerely hope
that this book will inspire many parents around the world to ensure children have a safe and hopeful future
in a world that is theirs to sustain.

I can only be incredibly thankful for the on- leaders wrote a beautiful foreword for this book,
going support, inspiration, humor, incredible pro- for which I am grateful. Last but cer tainly not least,
fessionality and perseverance of my chief editor the team of EcoMedia who helped me to make
Amie de Jeu. This book would not have seen the this book a showcase for sustainability with paper
light of day without her. My mission was definitely made of agricultural waste and endured ongoing
hers and she has supported my voice giving life to drive to improve, redo and improve. I thank my
that, every step of the way. I also thank Theresa publisher Rebecca Marsh at Routledge for believ-
McCar ty, business analyst & researcher enormously ing and trusting in me, especially to publish the
for her dedication to this project and making sure book in an open access, free online version since
all research was done with perfectionism on accu- I do not want to put a price on access to knowl-
racy, facts and the right numbers and references. edge that is crucial for the world we all want.
I also thank all the companies profiled in this book
for their inspirational work in creating sustainable This book is a book of many, and any recognition
business cases. of this book should go to all. But most importantly,
it is a book with a mission. To inspire people to
I am thankful to Paul Polman, in collaboration with lead the way to find, create and scale up solutions
whom the inspiration rose and the enthusiasm for our Global Goals, and achieve the world we all
grew for this book and who supported me all want. With business that is a power for good. For a
the way. I thank Feike Sijbesma for his inspiration world that is fair to all and that can and will sustain.
and support and Gérard Mestrallet for his inspir-
ing vision leadership he shared with me. All three Marga Hoek

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Contents
Preface

1 2
Forewords
UN Global Compact Overview of the crucial work of Global Compact

BUSINESS’S
CONTRIBUTION TO THE THE TRILLION DOLLAR
TRILLION DOLLAR SHIFT SHIFT ACCELERATED
P. 18 CHAPTER 1 P. 98 CHAPTER 3
Achieving the Sustainable Development ICT and Technology
Goals: The greatest challenge and biggest 3.1 ICT, Technology and SDGs
opportunity 3.2 Responsibility for Tomorrow’s world
1.1 The new meaning of Business in society 3.3 Setting the course comes with a tremendous prize
1.2 The SDGs: the world’s Goals for 2030 3.4 The digital divide
1.3 The SDGs: first years of unfolding 3.5 The four th industrial revolution
& ten breakthrough oppor tunities
P. 46 CHAPTER 2
Business for good: a trillion dollar P. 158 CHAPTER 4
business case Capital
2.1 The call to business and capital 4.1 The capital call: the Goals need capital as much as
2.2 The new meaning of growth capital needs the Goals
2.3 The shared value model 4.2 How private capital can fill the SDG funding gap
2.4 Unlocking SDG markets and their potential 4.3 Capital impact on all SDGs
2.5 A call to all businesses (large, SMEs, 4.4 Shared value oppor tunities
Star t-ups and scale-ups) 4.5 We need all finance

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3 TRILLION DOLLAR
SHIFT IN SECTORS
P. 222 CHAPTER 5
Cities and Transportation
4 SCALING UP FOR A
TRILLION DOLLAR SHIFT
P. 400 CHAPTER 10
Scaling up: Global Goals; Global Scale;
5.1 SDG 11: Sustainable cities and communities Global Good
5.2 Solving the challenges: Cities as catalysts for linking 10.1 Scaling up business for good
all the goals 10.2 Leadership for the Goals
5.3 Impact of cities on all SDGs
5.4 Shared value oppor tunities
5.5 Capital connections and oppor tunities
5.6 Domains of impact
Sources
P. 262 CHAPTER 6
Food and Agriculture
6.1 SDG 2: Zero hunger
6.2 Solving the Challenges: Food and
agriculture as the common thread
through the Goals
6.3 Impact of food and agriculture on all SDGs
6.4 Shared value oppor tunities
6.5 Capital investment reaps more than it sows
6.6 Domains of impact

P. 300 CHAPTER 7
Education and Learning
7.1 SDG 4: Quality education
7.2 Solving the Challenges: Education as a
fundamental building block for the Goals
7.3 Impact of education and learning on all SDGs
7.4 Shared value oppor tunities
7.5 Capital and the skills gap
7.6 Domains of impact

P. 334 CHAPTER 8
Health and well-being
8.1 SDG 3: Good health and well-being
8.2 Solving the Challenges: Health and wellbeing
as the prerequisite for achieving the Goals
8.3 Impact of health and well-being on all SDGs
8.4 Shared value oppor tunities
8.5 Capital suppor ts improved health and well-being
8.6 Domains of impact

P. 364 CHAPTER 9
Energy & resources
9.1 SDG 13: Climate action
9.2 Solving the Challenges: Energy and resources as the
fuel for Climate action
9.3 Impact of energy and resources on all SDGs
9.4 Shared value oppor tunities
9.5 Capital investments as a source of power
9.6 Domains of impact

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

Preface
MARGA It’s been over two years since the course was set
to a better world via the Paris Agreement, the
than US $2 a day and nearly 800 million people
still go to bed hungry every day. Thir ty percent of
HOEK establishment of the Sustainable Development
Goals (SDGs) and the Financing for Development
the world’s 1.8 billion young people are neither
employed nor in school or training programs; and
conference in Addis Ababa. Taken together, these over 61 million children of primary school age are
three conferences and agreements represent a not in school. Progress on gender equality also still
much-needed holistic paradigm shift, and a funda- lags far behind, and women continue to face sig-
mental change in the way we approach the task nificant economic, social, and even legal barriers
of creating a better world. The global movement to equality.
started a journey, or better said a next journey,
since that actually already star ted with the Millen- It is increasingly clear that the way forward on our
nium Goals. Now, the SDGs are a global compass journey towards 2030 needs to use the power
guiding us all, in a language we all understand and of business as leverage to grow a stable, sustain-
interpret the same way. able global economy and society. Consider that
business corporations account for many of the
While we are in the first phase of this journey, largest economies operating around the world.
we must be very aware that this journey is more Many corporations have a balance sheet outrank-
crucial and more difficult than we could have ing countries’ GDPs. And consider the investment
imagined. The world is experiencing hurricanes, potential of private capital which is a much larger
floods, droughts, and storms like we have never percentage than public investment potential by
seen before, with enormous consequences for now, as the percentage of total capital flows of
people, planet and economy. In the previous dec- donor countries’ ODAs into emerging markets
ade, the world’s economy suffered an estimated has decreased, while private capital flows have in-
loss of US $2.7 trillion because of natural disasters. creased and grown. Last but not least, consider
This decade will no doubt show an exponential in- the power of business needed to safeguard con-
crease, and inaction on climate change comes with sistency in policy, as business was crucial to cre-
the huge comprehensive cost estimated at US ating the Climate Agreement and the Sustainable
$24 trillion. At the same time, inequalities among Development Goals, and is equally impor tant to
people across the world are growing instead of di- maintaining them.
minishing, resulting in dangerous divides, conflicts,
and social unrest. Despite the fact that we have Let’s engage business in a new purpose. Business
been able to lift millions of people out of pover ty, that embeds the goals into the hear t of compa-
half of the world’s population is still living on less nies, strive to not only serve their own goals, but

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the Global Goals at the same time. Since there is radically, and products and services that do not
no business if there is no planet, there are also no create real value will soon be phased out.
business opportunities in a world of exponentially
growing risks, increasing poverty, climate change, Since the scale of our collective solutions must
and resource scarcity. Wise leaders understand meet the scale of our Goals, let this book be an
this and know that navigating towards the Goals inspiration to all businesses to venture beyond
means safeguarding the planet and its inhabitants, the comfor t zone, and explore new ways to
and securing a sustainable business and economic create profitable business cases while also safe-
future. The growth of business for good incorpo- guarding and positively impacting people and the
rates a new meaning of growth which we must environment. For that reason, I have endeavored
embrace, disconnecting negative impact from to create a comprehensive, yet inspirational book
growth, and connecting growth with positive im- that provides an overview of the SDGs, what they
pact on the world. mean to business and capital, and how to engage.
You will read what shared value is, and how to
At a business level, there is every reason to en- use it as a leading business principle. You will gain
gage with the SDGs. This book demonstrates that insights into industry sectors and read business
business for good is good business, and aims to cases of companies all over the world. And you
show how business and capital can have a pos- will get an overview of research and collabora-
itive impact on the SDGs, while improving their tions exploring sustainability.
competitiveness. You will read how new markets,
wor th up to US $12 trillion, can be unlocked by This book is an extension of my personal mission
2030. Returns on sustainable business cases are to contribute to the repurposing of business and
getting better by the year or even the month, with capital. Repurposing to do good for the world
businesses working against climate change per- must become a primary mission for all. It can be
forming almost 20% better than their peers. In this done, and must be done. Our future depends on
context, not engaging with the SDGs becomes the it. To spread this message, I have made all content
risk, especially since customers and employees will digitally available with an open access model. So,
demand that companies be part of the solutions, spread the word and spread the mission, because
rather than the problem. Markets are changing together we can achieve our Goals.

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

Forewords
TThe Sustainable Development Goals (SDG’s), adopted in September 2015 in New York by 193 coun-
PAUL tries are a true beacon of hope, and have rightly sparked great interest from business and investors ever

POLMAN since their adoption in 2015. Its goal is simply to leave no-one behind. To irreversibly eradicate pover ty
and do so in a more sustainable and equitable way. The world needs it now more than ever, if we want
CEO UNILEVER it to function for everyone, including for those yet to come.

The role business can, and must play in achieving the Goals cannot be overestimated, as governments
will not be able to change the world for the better merely by themselves.

The reality is that the Goals need business, and at the same time business also needs the Goals, because
the SDGs provide the potential to unlock new markets and bring about a business oppor tunity of
staggering magnitude.

The latter is estimated at no less than US $12 trillion by 2030 with 380 million new jobs created. Indeed,
implementing the SDG’s is one of the biggest business oppor tunities of our time.

So, for business, the question is not ‘why’, but ‘how’ to develop solutions which are both good for busi-
ness and which create positive SDG impact.

This requires transformational change throughout sectors.

We need to quickly learn, both individually and collectively, how to under take this crucial journey. It
starts with awareness of the SDG’s, and how each business can positively contribute. Businesses that
understand this and put themselves to the service of society, will have a long and prosperous future.
Businesses that don’t, will be voted out, and this is happening with increased frequency.

The good news is that we can adapt: we are an intelligent species, and the challenge ahead will be finding
a way to put our resources to good use.

A combination of human will power and knowledge of the subject matter can make it happen.

This new publication by Marga Hoek goes a long way in providing us with such required knowledge.

The Trillion Dollar Shift provides a comprehensive overview of SDG oppor tunities across sectors, and
shows the reader how to engage and create economic and social impact on each of the 17 SDGs.

Throughout the book, you will find useful examples of companies that have already embarked on this
journey.

In order to maximize accessibility, the author has decided to make The Trillion Dollar Shift a digital open
access publication, available free of charge, and I would like to thank Marga for that.

We can therefore be sure this inspiring book will reach interested readers across the globe, and rightly
so, as its important message can help bring us one step closer to the better world we all aspire to by
2030.

It hopefully will unlock the purposeful leader inside of you, and make you par t of a growing movement
to ensure we leave no one behind.

Paul Polman
CEO Unilever

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1 PARAGRAPH

“ WE CANNOT CLOSE OUR EYES


TO THE CHALLENGES THE
WORLD FACES. BUSINESS
MUST MAKE AN EXPLICIT
POSITIVE CONTRIBUTION TO
ADDRESSING THEM.”
PAUL POLMAN, CEO UNILEVER

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

FEIKE Sustainability should, by now, be considered a core value and business driver. It should be embedded
in the business strategy of all companies. Large, multinational companies, like DSM, have tremendous
SIJBESMA global reach and impact, and must therefore demonstrate societal responsibility by becoming par t of
CEO-­CHAIRMAN the solution to our global challenges rather than par t of the problem. DSM embraces this responsibility
DSM and, as a global leader in its industry, has committed itself to the Sustainable Development Goals (SDGs).

Increasingly, companies are setting out to help solve society’s big problems with innovative solutions,
their technological capabilities, their outreach to consumers, and their investments. At DSM, we repo-
sitioned our business from a chemical company into a Life Sciences & Materials Sciences company.
The core of our strategy is “Bright Science, Brighter Living”. We aim to make food healthier and more
nutritious, engineer more sustainably, develop materials that can benefit the environment, conver t ag-
ricultural waste, and invest in sustainable solutions. At DSM, innovations must be able to demonstrate
positive impact on people and planet to ensure that we contribute to a better world with our products.

This book by Marga Hoek offers business leaders many insights, ideas and practical cases on how busi-
ness can contribute to a sustainable world, making use of the navigating power of the SDGs. Its compre-
hensiveness, global orientation and inspirational cases offer great value to the reader. Most impor tantly
it demonstrates that the process of businesses creating solutions to the world’s challenges is both a
responsibility and a business model. I hope this book will inspire many business leaders to take on that
responsibility, and address these challenges with business solutions that will both improve our world and
strengthen their company.

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Today, both companies and government hold a responsibility to achieve the Sustainable Development
Goals (SDGs) in order to fight poverty in its many forms as well as climate change. Business by now has GÉRARD
come to the conclusion that fighting global problems like climate change is in the best interest of compa- MESTRALLET
nies and thus: shareholders. Climate change is not only an ecological but also an economical catastrophe, CHAIRMAN
and business has become aware of that especially the last three to four years. ENGIE

The world of energy is changing, we’re moving towards a less centralized, less carbon-intensive energy
world, away from the centralized world of yesterday. Both business and government hold the keys to
achieve this. From the perspective of government: One of the best ways to speed the energy transition
is a carbon tax. It is absolutely key to discouraging investment in fossil fuels. Such a strategy would quan-
tify climate risks, as each ton of carbon emissions would come at a hefty price. It would also undercut
profits for big polluters and push investment toward low - and no-carbon alternatives like solar and
wind.

But then, business needs to actively engage in these societal challenges, with their products, business
models and investments, throughout the world. Multinational companies specifically, must engage since
they can be both global and locally present. At ENGIE, our challenge consists of finding new ways to
provide power to more people, sustainably. Recently, we were awarded several solar and wind projects
in Mexico, which demonstrates both ENGIE competitiveness in carbon-free generation and our com-
mitment to support Mexico, a country rapidly growing which is resolutely engaged in liberalizing its
economy while fueling it with responsible energy. More globally, we aim to provide sustainable energy to
20 million people worldwide by 2020. This means we invest in new solutions through our venture capital
and many other initiatives. We engage in local programs, for instance in Brazil’s Salto hydroelectric plant,
and collaborate with all relevant stakeholders in many countries. One of our most recent projects is to
build photovoltaic smart micro-grids for 3,000 villages in the province of Papua, which is consistent with
our vision of leading the global energy transition. The drive for decarbonization will significantly contrib-
ute to powering the country’s energy needs in a sustainable way, in par tnership with local companies.

On this transformational journey, we discover and learn while we meet many challenges. And there are
many more to overcome. In this sense, I am happy that Marga Hoek provides us with such a thorough
yet inspirational book about the synergy between business, capital and the SDGs. Knowledge and lead-
ership by example are key for transformation.

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“ THERE IS NO PLAN B”
BECAUSE WE DO NOT HAVE
A “PLANET B.”
BAN KI-MOON
FORMER SECRETARY-GENERAL OF THE UNITED NATIONS

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1

50 Cases
Unilever Rotterdam, Netherlands

2 Ikea Leiden, Netherlands

3 Trine Solar Göteborg, Sweden

4 Sanivation Kenya, Africa

5 Gap San Francisco, CA USA

6 Interface Atlanta, GA USA


Throughout the world
7 Nestle Lausanne, Switzerland

8 Enel Rome, Italy

9 Revolution Foods Oakland, CA USA

10 Grundfos Bjerringbro, Denmark

11 Kaer, Singapore

12 YES Bank Mumbai, India

13 Nike Beaverton, OR USA


01 02 03 04 05
Moyee Coffee Amsterdam, Neth-
14 erlands

15 Ushahidi Nairobi, Kenya

16 Huawei Shenzhen, China

17 Alibaba Group Hangzhou, China

18 Siemens Munich, Germany

African Born 3D Printing (AB3D)


19 Nairobi, Kenya

20 Thermo-System Neckar, Germany 11 12 13 14 15


21 Arm Cambridge, United Kingdom

22 DJI Shenzhen, China

23 Ericsson Stockholm, Sweden

National Australia Bank (NAB)


24 Melbourne, Australia

25 FMO The Hague, Netherlands

26 Aviva London, United Kingdom

27
Sustainable Stock Exchange
(SSE) United Nations 21 22 23 24 25
Earth Capital Partners (ECP)
28 London, United Kingdom
Virgin Group London, United
29 Kingdom
Water and Sanitation for the
30 Urban Poor London, United Kingdom

31 OVG Amsterdam, Netherlands

Rockwool Benelux Hedehusen,


32 Denmark

33 Tesla Palo Alto, CA USA


31 32 33 34 35
34 Evaptainers Somerville, MA USA

35 Copia San Francisco, CA USA

36 GSMA London, United Kingdom

37 Coffee Flour Seattle, WA USA

38 Verizon Basking Ridge, NJ USA

39 Nafham Cairo, Egypt

40 LEGO Billund, Denmark


41 42 43 44 45
41 Intel Santa Clara, CA USA

42 DSM Heerlen, Netherlands

Medical Credit Fund Amsterdam,


43 Netherlands
Vebego International BV
44 Voerendaal, Netherlands

45 Greenchoice Rotterdam, Netherlands

46 Engie La Défense, France

47 Toshiba Toyko, Japan

48 EcoMedia Nieuwkoop, Netherlands

49 Ørsted Fredericia, Denmark

50 WakaWaka Rwanda, Africa

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06 07 08 09 10

16 17 18 19 20

26 27 28 29 30

36 37 38 39 40

46 47 48 49 50

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PART 1  BUSINESS’S CONTRIBUTION TO THE TRILLION DOLLAR SHIFT

PART 1 | BUSINESS’S CONTRIBUTION TO THE TRILLION


DOLLAR SHIFT

INTRODUCTION
Business is the engine of the economy, growth, innovation and job creation. Every company, large and small,
has the potential to make a significant contribution towards economic, social and environmental progress.

The United Nations carefully created 17 Sustainable Development Goals (SDGs) that identify what we all
should be striving towards, and what we should reach by 2030 for the benefit of mankind. This is a call to
action for both business and capital. Frontrunners are gearing their business practices to help achieve the
Goals. If the SDGs make anything clear to business, it is that business for good is good business.

Business has the power to accelerate the achievement of the Sustainable Development Goals, and realizing
the Goals will in turn also improve the ecosystem for doing business. Trillions of dollars in public and private
funds are to be redirected towards the SDGs, creating huge opportunities for responsible companies to deliver
solutions. Engaging and innovating today means a stronger continuity for resilient business and industry in
the future.

Since the creation of the SDGs, there has been a substantial increase in the number of companies that are
able to measurably demonstrate the transformative impact of their technologies, products, services and busi-
ness models. But the movement must grow and scale, since its impact is still too small to reach the Goals in
time.

In Part 1, you will learn more about the Sustainable Development Goals, the progress that has been made
thus far by business and government, the new meaning of growth, and the shared value model. You will also
begin to read about some of the opportunities that will emerge. Markets worth trillions of dollars are waiting
at the door to be unlocked. Unlocking these markets is not only a great opportunity, it is a necessity.

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1
THE TRILLION DOLLAR SHIFT  MARGA HOEK

ACHIEVING THE SUSTAINABLE DEVELOPMENT GOALS


THE GREATEST CHALLENGE AND BIGGEST OPPORTUNITY

Our world today, in many ways, offers people greater opportunity to live prosperous lives than in any other time
in history. The unprecedented social improvements and technological advances have truly revolutionized many
aspects of daily life. Although these modern achievements have been beneficial to the world - lifting millions out
of poverty, giving people access to basic services and enabling innovations - there is still a long way to go to
meet some of the greatest challenges the world has ever faced. With the imminent dangers of the consequences of
climate change and the mounting inequalities among populations, it is now more than ever we need a viable long-
term solution. Business and capital are answering this call to action and providing the solution. The SDGs present
a unique roadmap to set financial flows and development initiatives on a directed course that addresses not only
our personal financial objectives, but also our worldwide environmental and social needs. Supporting sustainable
development and meeting our Global Goals will take efforts from all sectors in every nation and require new levels
of market participation. For the SDGs to be realized in entirety, we will need major participation from business and
capital, and conversely businesses will need the achievement of the SDGs to thrive and prosper.

1.1 THE NEW MEANING OF since the 1980s,1 threatening the global popula-
tion environmentally, socially as well as financial-
ly. In the previous decade, the world’s economy
BUSINESS IN SOCIETY suffered an estimated loss of US $2.7 trillion
because of natural disasters. This decade will no
“Ours can be the first generation to end pover- doubt show an exponential increase – which has
ty – and the last generation to address climate already begun with hurricanes, floods and ear th-
change before it is too late. ” This compelling am- quakes devastating so many areas. It is estimated
bition, stated concisely by the former UN Secre- that inaction on climate change comes with the
tary-General Ban Ki-Moon, is at the core of the huge comprehensive cost of US $24 trillion.
Sustainable Development Goals (SDGs). As the
world faces momentous challenges, there is an ac-
celerating urgency to create sustainable solutions. OUR GLOBAL PROBLEMS ARE
GROWING IN PROPORTION.
In our fast-changing world, we have seen great
social improvements and technological advances
over the past 30 years. We have experienced a The World Economic Forum repor ts that vio-
significant number of people being lifted out of lence and armed conflict now cost more than
poverty. Technology has been developing at an 13% of GDP. And obesity has become a global is-
unprecedented pace. And, more than ever be- sue costing 2.8% of GDP2 according to a recent
fore, people are connected to each other and to McKinsey analysis.3 Despite the fact that millions
knowledge through sophisticated shared global have been lifted out of pover ty, half of the world’s
networks. population is still living on less than two dollars a
day. There are also many repor ts of social inequali-
Yet, despite the steps that have been taken and ty and youth unemployment increasing around the
the vast amount of knowledge available, our glob- world: 30% of the world’s 1.8 billion young people
al problems are growing and there has not been are neither employed nor in school or in any other
enough large-scale movement to turn the tide. training, and over 57 million children of primary
According to a study conducted by the UN Food age are not in school at all. Women still face eco-
and Agricultural Organization in 2015, natural dis- nomic, social and even legal barriers to equality as
asters triggered by climate change have doubled progress on gender equality lags far behind.

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1.1  THE NEW MEANING OF BUSINESS IN SOCIETY

PART OF THE SOLUTION, RATHER THAN THE crisis, the lack of vision in political leadership, and
PROBLEM the effects of pervasive corruption. Even within
Business and capital have contributed to these companies, trust in leadership is low.
problems. But we have come to a point where we
are star ting to recognize that neither businesses,
nor investments, nor the world will survive if we CONSIDER THAT BUSINESS
continue down this path. Not only is it a societal CORPORATIONS ACCOUNT FOR
dead-end street, but it is also an economic road-
block when global GDP is eaten up by huge per-
50 OF THE LARGEST ECONOMIES.
centages due to environmental and social costs.
With only a little over twelve years to go to
meet the Global Goals by 2030, which is crucial
WE NEED A STRONG to maintaining - or better said creating - a stable
CONTRIBUTION FROM BUSINESS. and fair world, the time is running out. To accel-
erate our actions to achieve the Goals, we need
trust and that trust will grow when we achieve
As this book will demonstrate, there is only a the Goals. Both are interdependent: accelerating
future for businesses that will be a part of the for the achievement of the Goals means building
solution instead of the problem. As we will ex- trust and vice versa. It is not a coincidence that
plain throughout this book, those businesses that Goal 17 is about the par tnerships for the Goals
will engage with the solutions, thus engage with as you will see and read later on.
the Sustainable Development Goals, will have a
secure future for themselves and secure the fu-
ture of our world at the same time. They will PUBLIC-PRIVATE PARTNERSHIP FOR THE GOALS
produce products and services that we need in It is increasingly clear that the way forward is one
order to solve the greatest challenge of our times: that must be paved by both business and gov-
the achievement of the Sustainable Development ernment, but definitely not by government alone.
Goals. And this is not a matter of trust, but a matter
of roles and numbers. For one thing, govern-
ments lack the necessary means to bring about
A MATTER OF TRUST the level of change that is needed. We need to
We need a strong contribution from business. consider that the power of business has grown
Because, to add to the risks and challenges, we tremendously and should be leveraged to de-
live in what we could define as a vacuum in po- velop a stable, sustainable global economy and
litical leadership and shor t-term orientated polit- society. Consider that business corporations ac-
ical systems. The “social contract” among politics, count for 50 of the largest economies, operating
government, and society as a whole is becoming throughout the entire planet. And consider the
increasingly damaged, and connections that need investment potential of private capital, which is
to be tighter than ever are actually loose or even a much larger percentage than public investment
lacking. This is a huge threat to long-term planning potential by now. For instance, the percentage of
and overall coherence among all par ties in soci- total capital flows of donor countries’ Official De-
ety. And most of all, it damages trust immensely. velopment Assistance (ODA) into emerging mar-
Trust, however, is something we need desperately. kets has decreased from over 50% to less than
But trust has never been so low, and the lack of 10%, while private capital flows have increased
trust has never been so broad, related to politics, and grown. And last but not least, consider the
government and other institutions, and business. power of business needed to safeguard consist-
Much of the current public disillusionment is ency in policy. Business was crucial to achiev-
closely tied to the impact of the global economic ing the Climate Agreement and the Sustainable

19

TDS final Boek.indb 19 18-12-17 18:56


THE TRILLION DOLLAR SHIFT  MARGA HOEK

Development Goals and is equally impor tant to provide solutions, and nearly all repor t that they
maintaining them. Therefore, governments need are currently contributing or planning to contrib-
business like never before. ute to the SDGs, all respondents agree that so-
ciety’s progress on sustainable development and
Equally, business needs government to develop the SDGs has been poor thus far. Although more
the right frameworks, tax systems, and suppor t than 75% of the companies that took par t in the
for internalizing external costs – all of which are survey have already star ted addressing the Global
necessary for a system-wide change. Just pricing Goals, it also raises the question of exactly how
environmental externalities across the value chain companies are integrating the Global Goals into
for food waste prevention alone adds an estimat- their business strategies. This needs clarification,
ed 92% to the value of business oppor tunities as only a few companies are actually measuring
addressing food waste.4 To open up markets, cre- the societal impact of their work with the Ten
ate real and fair business cases, and to scale up Principles and the Global Goals, as was set up
solutions, business needs good government to set by the UN.
these frameworks and to create stability, direc-
tion, and trust.
REPURPOSING: THE NEW MEANING OF BUSINESS
This book is meant as a guide; as an inspiration to
BUSINESS CAN AND MUST STEP UP engage with the SDGs when developing business
As business begins to embrace the Goals, there strategy. Let’s create a new meaning for business:
is the risk of business becoming too proud of business that functions with purpose and puts the
itself for being par t of the solution rather than Goals at the hear t of the company, and business
the problem, while in fact business is not growing that serves both its own interests and those of the
these solutions at the speed it needs to and the world at the same time. Consider also the higher
scale it must. If it is really to contribute to the impact of business on society: business should de-
achievement of climate action, our Goals, and the risk the political process and give political leaders
new meaning of capital, business must accelerate the full backing to reform policy for the better.
and scale up the solutions. Engage in public-private initiatives, like the Open
Government Par tnership (OGP), for example,
that aims to secure concrete commitments from
BUSINESS WAS CRUCIAL governments to promote transparency, empower
TO ACHIEVING THE CLIMATE citizens, fight corruption, and harness new tech-
nologies to strengthen governance. Engaging is
AGREEMENT AND THE definitely beneficial for both business and govern-
SUSTAINABLE DEVELOPMENT ment and is crucial for a wider system change cre-
GOALS AND IS EQUALLY ating new markets, built on sustainable principles,
and thus building trust.
IMPORTANT TO MAINTAINING
THEM. THEREFORE, GOVERN-
MENTS NEED BUSINESS LIKE COMPANIES ALL OVER THE
NEVER BEFORE. WORLD ARE REALIZING THAT
CONTRIBUTING TO THE WORLD IS
A 2017 Global Scan Sustainability Survey, titled ALSO IN THEIR BEST INTEREST.
Evaluating Progress Towards the Sustainable De-
velopment Goals, found that while corporate re- Business can and must be a key par ticipator in
spondents say their business is responding to the achieving the Global Goals, and in the rebuilding
SDGs by developing products or services that will of trust throughout the world: by demonstrating

20

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1.1  THE NEW MEANING OF BUSINESS IN SOCIETY

THE TEN PRINCIPLES OF THE UN GLOBAL COMPACT:5

Human rights
¾ Principle 1: Businesses should support and respect the protection of internationally
proclaimed human rights; and
¾ Principle 2: make sure that they are not complicit in human rights abuses.

Labor
¾ Principle 3: Businesses should uphold the freedom of association and the effective
recognition of the right to collective bargaining;
¾ Principle 4: the elimination of all forms of forced and compulsory labor ;

¾ Principle 5: the effective abolition of child labor ; and


¾ Principle 6: the elimination of discrimination in respect of employment and occupation.

Environment
¾ Principle 7: Businesses should support a precautionary approach to environmental
challenges
¾ Principle 8: undertake initiatives to promote greater environmental responsibility

¾ Principle 9: encourage the development and diffusion of environmentally


friendly technologies.

Anti-Corruption
¾ Principle 10: Businesses should work against corruption in all its forms,
including extortion and bribery.

trust, by giving trust, and by deserving trust. The business to fulfill a constructive role at the highest
SDGs bring business the huge gift of learning to be system level. Join in a more holistic and fundamen-
much more holistic and think at a much broader tal approach of “doing good, by doing business.”
system level, which is key to being successful in the Although awareness and knowledge of how to act
multi-stakeholder era we are in now and which differently is still lacking, companies all over the
is also key to rebuilding trust. So be aware, and world are realizing that contributing to the world
even, be inspired as we enter an era that will need is also in their best interest. And so should you.

21

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“ THE POST-2015 DEVELOPMENT
AGENDA PRESENTS A
HISTORIC OPPORTUNITY FOR
BUSINESS TO ENGAGE MORE
DEEPLY AS A STRONG AND
POSITIVE INFLUENCE ON
SOCIETY.”
PETER BAKKER, PRESIDENT & CEO, WORLD BUSINESS COUNCIL FOR
SUSTAINABLE DEVELOPMENT

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1.2 THE SDGs: THE WORLD’S GOALS FOR 2030

1.2 THE SDGs: THE WORLD’S “to-do list for people and planet.” The Goals were
introduced and adopted with the ambition to
achieve a better future for all – laying out a path
GOALS FOR 2030

SDG INDEX AND DASHBOARDS


over the next 15 years to end extreme pover-
ty, fight inequality and injustice, and protect our
For guidance and clarity, the United Nations cre- planet. The 17 Goals are defined fur ther by 169

PART 1
ated 17 Sustainable Development Goals (See
Figure 1), which are a set of aspirational goals
specific Targets, which are suppor ted by 230 In-
dicators that address the most impor tant social,
introduced as a plan of action for “people, plan- economic, environmental and governance chal-
SDG Index and Dashboards Report lenges of our time.
et and prosperity.” The Sustainable Development
Goals are often referred to as SDGs and as our
collective Global Goals. They are the broader suc-
cessor to the Millennium Development Goals, GOALS – TARGETS - INDICATORS
which were adopted in September 2000. The 17 The Goals outline clear objectives for 2030.
Sustainable Development Goals apply not only to But more specifics were needed to guide gov-
1.members
all INTRODUCTION
of the UN, but to business and capi- ernments and companies towards achieving the
tal as well. They are broad and ambitious in scope Goals. As shown in Figure 2, in addition to the
and
Agendafocus 2030
on all and
threethe
dimensions of sustainable
Sustainable Development 17 broad,
Goalsambitious and comprehensive
(SDGs, Figure 1), which were Sustain-
adopted by all
development: social, economic and environmen- able Development Goals, 169 Targets associated
member states of the United Nations in 2015, describe a universal agenda that applies to and must
tal. with these Goals have been specified to give
be implemented by all countries, both developed fur therand developing.
clarity Soundexactly
on what is meant metricsandand
how data are critical
September
for turning2015 marked thepractical
the SDGs into historic moment to achieve the Goals.
tools for problem-solving byFur
(i) thermore,
mobilizing 230governments,
Indicators academia,
when 193 countries agreed on the UN’s 17 Sus- were established on March 11 2016, by the Unit-
civil society, and business; (ii) providing a report card to track progress and ensure accountability; and
tainable Development Goals. The creation of the ed Nations Statistical Commission’s Interagency
(iii) serving
SDGs as from
resulted a management toolwas
a process that formore
the transformations
and Exper t Group needed
on SDGto achieve the(IAEG-
Indicators SDGs by 2030. We
inclusive than ever,that
are encouraged withcountries
governments involving
around SDGs)including
the world, 6 to guide the
companies, cities, and
G20 (Box 1), arecountries
aligning long-term
business, civil society, and citizens from the out- on monitoring their progress and making concrete
development strategies with the SDGs. Similarly, business and other non-government stakeholders are
set. According to Ban Ki-moon, governments and steps towards achieving the Targets and ultimately
increasingly
businesses haveworking towards
never before thea SDGs as
had such concrete operational
the Goals.7 goals (Box 2).

Figure 1 | The Sustainable Development Goals (SDGs)


Figure 1
The Sustainable
Development Goals

Purpose of the SDG Index and Dashboards


23
To track the SDGs, the UN Statistics Commission has Countries appear to struggle with implementing the full
recommended over 230 official indicators. Of these, some range of official SDG indicators.
150 have well-established definitions, but not all have data
for all UN member states (UN Statistics Division, 2017). To complement the official SDG Indicators and voluntary
TDS final Boek.indb 23 18-12-17 18:56
Countries are invited to submit voluntary national reviews country-led follow-up and review processes, the Sustainable
THE TRILLION DOLLAR SHIFT  MARGA HOEK

Figure 2
NDICATOR
230 I
SDG Goals, Targets,
Indicators
R
S
TA GET
169 S
17

To explain how the Goals, Targets, and Indicators and measure, ultimately helping to structure con-
NO ZERO GOOD HEALTH QUALITY
relate to each other, let’s take a few examples.
GENDER CLEAN WATER
crete Key Performance Indicators (KPIs)8 towards
NO

achieving the Goals.


POVERTY HUNGER AND WELL-BEING EDUCATION EQUALITY AND SANITATION POVERTY

GENDER
EQUALITY
CLEAN WATER
AND SANITATION
NO
SDG 1: No Poverty; This is an am-
POVERTY

AFFORDABLE AND
CLEAN ENERGY
DECENT WORK AND
ECONOMIC GROWTH
INDUSTRY, INNOVATION
AND INFRASTRUCTURE
REDUCED
INEQUALITIES bitious Goal when you consider that in
SUSTAINABLE CITIES
AND COMMUNITIES
RESPONSIBLE
CONSUMPTION
AND PRODUCTION
ZERO
HUNGER SDG 2: Zero Hunger; Again, an ex-
SUSTAINABLE CITIES RESPONSIBLE ZERO
the year 2000, there were 1.75 billion tremely ambitious Goal considering in
people living in pover ty. This number has de- the year 2000, there were 198 million
ES AND COMMUNITIES CONSUMPTION HUNGER
AND PRODUCTION
CLIMATE LIFE LIFE PEACE, JUSTICE PARTNERSHIPS GOOD HEALTH

creased to 900 million, but we are still a long way children stunted through malnutrition. By 2016
ACTION BELOW WATER ON LAND AND STRONG FOR THE GOALS AND WELL-BEING
INSTITUTIONS

off from the goal of no pover ty by the year 2030. this number had decreased a bit to 155 million.9
TICE PARTNERSHIPS GOOD HEALTH
G FOR THE GOALS AND WELL-BEING
NS

To get there, seven Targets have been set to give Globally the stunting rate fell from 33% in 2000
QUALITY
EDUCATION

guidance on how to star t to eliminate pover ty.


QUALITY
EDUCATION
to 23% in 201610, but progress made in those six-
NO ZERO GOOD HEALTH QUALITY
And twelve Indicators are specified to guide
GENDER CLEAN WATER
teen years is a mere fraction of what must be
GENDER
EQUALITY

measurements of the Targets. As an example, for achieved in the next twelve to thir teen years.
POVERTY HUNGER AND WELL-BEING EDUCATION EQUALITY AND SANITATION

SDG 1, we will look at Target 1.1 which reads: “By How the world will approach this Goal has been
GENDER
GENDER CLEAN WATER EQUALITY
EQUALITY AND SANITATION

AFFORDABLE AND DECENT WORK AND INDUSTRY, INNOVATION REDUCED SUSTAINABLE CITIES RESPONSIBLE

2030, eradicate extreme pover ty for all people broken down into eight Targets and 14 Indicators.
CLEAN ENERGY ECONOMIC GROWTH AND INFRASTRUCTURE INEQUALITIES AND COMMUNITIES CONSUMPTION CLEAN WATER
AND PRODUCTION AND SANITATION

SUSTAINABLE CITIES
AND COMMUNITIES
RESPONSIBLE
CONSUMPTION
AND PRODUCTION
everywhere, currently measured as people living
CLEAN WATER
AND SANITATION
Looking at Target 2.1, it states: “By 2030, end hun-
on less than US $1.25 a day.”  This is a more clear- ger and ensure access by all people, in par ticular
CLIMATE LIFE LIFE PEACE, JUSTICE PARTNERSHIPS
ACTION BELOW WATER ON LAND AND STRONG FOR THE GOALS
INSTITUTIONS AFFORDABLE AND
CLEAN ENERGY

PARTNERSHIPS
FOR THE GOALS
ly defined Target than the overall Goal. Then, Indi- the poor and people in vulnerable situations, in-
cator 1.1.1 for Target number 1.1 gives guidance cluding infants, to safe, nutritious and sufficient
AFFORDABLE AND
CLEAN ENERGY

on how to measure the progress, namely that


DECENT WORK AND

food all year round.” And the two associated Indi-


ECONOMIC GROWTH

countries, cities, and companies should break


DECENT WORK AND
ECONOMIC GROWTH cators for this Target ask for progressive measure-
down their target areas and measure pover ty ac- ments to be checked for : “Prevalence of
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

cording to the “Propor tion of population below


INDUSTRY, INNOVATION
undernourishment” (Indicator 2.1.1) and the
the international pover ty line, by sex, age, em- “Prevalence of moderate or severe food insecuri-
AND INFRASTRUCTURE

REDUCED

ployment status and geographical location (ur- ty in the population, based on the Food Insecurity
INEQUALITIES

ban/rural).” So the Targets and Indicators define


REDUCED
INEQUALITIES Experience Scale (FIES)” (Indicator 2.1.2).
SUSTAINABLE CITIES
AND COMMUNITIES

SUSTAINABLE CITIES
AND COMMUNITIES

RESPONSIBLE
CONSUMPTION

24 AND PRODUCTION

RESPONSIBLE
CONSUMPTION
AND PRODUCTION
CLIMATE
ACTION

CLIMATE
ACTION

LIFE
BELOW WATER
TDS final Boek.indb 24 18-12-17 18:56
ZERO
HUNGER

GOOD HEALTH
AND WELL-BEING

1.2 THE SDGs: THE WORLD’S GOALS FOR 2030

QUALITY
EDUCATION

GENDER
EQUALITY

CLEAN WATER
AND SANITATION

SDG 7: Affordable and Clean


AFFORDABLE AND
CLEAN ENERGY SDGs is by hierarchy. The Stockholm resilience
Energy; From the 169 total Targets center13 did this for the SDGs’ impact on food, dis-
that have been specified for all of the
DECENT WORK AND
tinguishing different levels of necessity and impact.
SDGs, there are five Targets for SDG 7, related to
ECONOMIC GROWTH

energy efficiency and renewable energy. And


there are six Indicators. Now let’s take the first
INDUSTRY, INNOVATION
AND INFRASTRUCTURE THE SDGs ARE THE BIG PICTURE
two Targets that have been laid down for SDG 7, GOALS. THE TARGETS AND
specifically 7.1: “By 2030, ensure universal access
REDUCED
INEQUALITIES

to affordable, reliable and modern energy servic-


INDICATORS ARE MORE SPECIFIC
es” and 7.2: “By 2030, increase substantially the AND DETAILED.
share of renewable energy in the global energy
SUSTAINABLE CITIES
AND COMMUNITIES

mix.” For Target 7.1, there are two Indicators: Whatever method you choose, make sure it is
7.1.1 “- Propor tion of population with access to
RESPONSIBLE
CONSUMPTION
functional. All ways of clustering, reworking or di-
electricity”, and 7.1.2 “- Propor tion of population viding the SDGs are a means to an end, enabling
AND PRODUCTION

with primary reliance on clean fuels and technol- you to: determine and grow your impact on the
CLIMATE

ogy.” And for Target 7.2, there is one Indicator,


ACTION
SDGs, connect with all par ties throughout the
namely, 7.2.1 “Renewable energy share in the to- supply chain, and combine impact with relevant
tal final energy consumption.” These Targets and
LIFE
BELOW WATER stakeholders.
Indicators are acutely relevant as there are still
1.2 billion people living without access to electric-
LIFE

ity and more than 40% of the world’s population ENGAGING THE PRIVATE SECTOR
ON LAND

is still relying on polluting and unhealthy fuels for It is expected that the SDGs will engage busi-
cooking.11
PEACE, JUSTICE
AND STRONG
INSTITUTIONS
ness far more than the preceding Millennium
Development Goals did. Business contributed to
PARTNERSHIPS the creation of the SDGs, and business will be
THE GOALS: COMPREHENSIVE AND
FOR THE GOALS

crucial for the achievement of them as well. As a


INTERDEPENDENT result, the link between the SDGs and business is
The SDGs are often described as a network of closer than it was between the Millennium De-
Goals since all 17 are interconnected and inter- velopment Goals and business. Pricewaterhouse-
dependent.12 Impact on one SDG almost always Coopers (PwC) mapped in 2015 the MDGs to
means impacting several others, both in terms of the SDGs and explored where business thinks it
risk and negative impact, and in terms of positive has impact, shown in Figure 3.
impact. When star ting to work with the SDGs, it
is crucial to bear this interdependency in mind
and be aware of cross effects, since it is relevant A UNIVERSAL LANGUAGE FOR OUR GLOBAL
for business innovation and strategy purposes. It CHALLENGES
is equally impor tant not to get lost, or get over- It is no doubt that one of the biggest strengths
ly theoretical and end up with trying to impact of the SDGs, besides being comprehensive, is the
all the SDGs. Prioritizing is the key to a focused fact that they provide the world with one set of
strategy, while keeping in mind the cohesion. Goals, Targets, and Indicators – which translates
easily to business Key Performance Indicators
For that reason, the SDGs often get structured, (KPIs), and thus provides one language for all. A
for instance into groups of SDGs relating to eco- true universal language. And the Goals are in fact
logical, social and economic goals with SDG 17 universal, which I believe is a great achievement.
- par tnerships for the goals - as the overarching They apply to all par ts of the world, but bring dif-
and connecting factor. Also, grouping the SDGs ferent challenges and gaps depending on the par t
according to the kinds of capital they represent of the world, the state of the economy, country
can be helpful. Another way of structuring the specifics and so on.

25

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THE TRILLION DOLLAR SHIFT MARGA HOEK

Figure 3
MDGs & SDGs 2000 2015

MDGs SDGs How Which SDGs


business thinks business
it impacts the sees as an
SDGs opportunity

Poverty/Hunger Decent work and economic growth

Zero hunger

No poverty

Education Quality education

Equality/Women Gender equality

Reduced inequalities

Child Mortality Good health and well-being

Maternal health

HIV/AIDS/Malaria

Environment Climate action

Clean water and sanitation

Life on land

Sustainable cities and communities

Peace and justice Strong institutions

Life below water

Partnership Partnerships for the goals

Industry, innovation and infrastructure

Affordable and clean energy

Responsible consumption and


production

Least impact/opportunity (mean index score <15) Moderate impact/opportunity (mean index score 15-20)
Greatest impact/opportunity (mean index score >20)
Source: PwC SDG Engagement Survey 2015.

It should therefore also become the universal re- its normative work, for instance in the realm of
sponsibility to achieve the Goals around the world, human rights. However, its application has usually
not only in our own region, country, city, house- been confined to specific regulatory frameworks,
hold or to the benefit of our own company. In a not to an all-encompassing programmatic agenda.
2016 repor t by the SDG Fund,14 the “principle of Unlike the previous MDGs, which were conceived
universality” is described as the foundational val- mainly as an agenda for development centered
ue of the SDGs. The repor t states: “The ‘principle on attaining a set of basic, minimum living stand-
of universality’ has been widely characterized as ards in developing countries, the 2030 Agenda
a foundational value of the SDGs– and also one is universal in scope. Universal means that the
of its more innovative ones. It has a long-standing subject belongs or extends to all countries and
tradition in the UN system and underlies much of their people. The SDG Agenda is no longer about

26

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1.2 THE SDGs: THE WORLD’S GOALS FOR 2030

developed and developing countries, the rich and they mean; they communicate your contribution.
the poor ; it now extends worldwide. The Agen- And that is tremendously effective for your rep-
da commits all countries to contribute towards utation indeed.
a comprehensive effor t for global sustainability in
all its dimensions – social, economic and environ- Companies like IKEA, Unilever, DSM and many
mental – while ensuring equity, peace and secu- others are using the Goals, Targets, and Indica-
rity. These goals show that our society, from each tors as a common language when creating their
individual to every collective organization, has an own KPIs. Although each industry and company
agenda to achieve and that sustainable develop- can and does interpret the Goals and Targets ac-
ment has become a must for all if the world is to cording to their own business needs, the common
survive and progress is to be shared.” language helps them collaborate with others for
greater efficiency and impact.

ONE LANGUAGE FOR ALL


The SDGs, Targets, and Indicators outline a com- THE SDGs, TARGETS, AND
mon agenda, clear guidance and measurement INDICATORS OUTLINE A COMMON
markers. They also provide all players with a com-
mon language. This communication tool is vital in
AGENDA, CLEAR GUIDANCE AND
the global movement, and successful implemen- MEASUREMENT MARKERS. THEY
tation will require everyone to champion this ALSO PROVIDE ALL PLAYERS
agenda and communicate accordingly. So much
effor t has turned to dust, or has been delayed,
WITH A COMMON LANGUAGE.
simply because stakeholders or people around
the world weren’t able to fully understand each Unilever is a great example of a company real-
other. Progress has been impeded just because of ly living the SDGs in every way they can. While
communication breakdowns due to language, or admitting implementation is a matter of perse-
narrative, or, most impor tantly, definitions. verance, as strategy shifts for large companies
are not achieved overnight, Unilever recogniz-
The SDGs have provided us all - governments, es it is absolutely wor thwhile to make the shift.
business, NGOs, science, and private citizens With commitment and dedication, success can be
alike - with one language to discuss our common achieved with long-term benefits. Unilever’s CEO,
ground. This is a major step and pathway to gath- Paul Polman, stands steadfast in his commitment
er strength from around the world. and consistently points out that you truly can
“do good business by doing good.” Unilever cre-
For the first time, great effor t has been put into ated a business-focused “master plan” called the
creating the Goals’ structure, its language, its pres- Sustainable Living Plan. It is an exemplary model
entation and visualization, and to making it very of how a leading company is taking responsibil-
attractive and inspiring. The colors of the icons ity for achieving the SDGs and tackling several
are positive, the Targets are shor t and clear, and Goals at the same time. Polman succinctly stated,
the Indicators are concrete and easily translat- “Every business will benefit from operating in a
ed to an organization’s own KPIs. Over the last more equitable, resilient world if we achieve the
couple of years, the language of the SDGs has SDGs. We have an oppor tunity to unlock trillions
become widespread and has served as an inspira- of dollars through new markets, investments and
tion to many, including this book. For companies, innovation. But to do so, we must challenge our
it is great to profile the SDGs visually on web- current practices and address pover ty, inequality
sites and other forms of communication: people and environmental challenges.”15
recognize the icons and know straight away what

27

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01 NO
POVERTY
IMPACT SDGs
CASE NO. UNILEVER
Unilever Sustainable Living Plan
A Brighter Future; A Better Business
Case applied in: Global
Headquarters located in: The Netherlands /
England
www.unilever.com

ZERO
HUNGER SDG 3 & SDG 6 WE CANNOT CLOSE OUR EYES TO THE CHALLENGES THE WORLD FACES.
By 2020 Unilever aims to BUSINESS MUST MAKE AN EXPLICIT POSITIVE CONTRIBUTION TO ADDRESSING THEM.
help more than a billion
GOOD HEALTH
AND WELL-BEING AFTER ALL, BUSINESS CANNOT SUCCEED IN SOCIETIES THAT FAIL.
people improve their health
PAUL POLMAN, CEO UNILEVER
and hygiene to reduce the
QUALITY

incidence of life-threatening
EDUCATION

diseases like diarrhoea.


Handwashing, Oral care and
GENDER

Unilever believes that business must be par t of the 2008, Unilever’s waste program has contributed
EQUALITY

Nutrition are major drivers. solution to global challenges. As CEO Polman of- to costs avoided of over €250 million, and it has
CLEAN WATER
AND SANITATION
ten states “Businesses cannot be bystanders in a resulted in the creation of hundreds of jobs. By
SDG 5 & SDG 8 system that gives it life in the first place”. In 2010, cutting waste and reducing the use of energy, raw
Unilever drives fairness in the they launched the Unilever Sustainable Living Plan, materials and natural resources, Unilever has cre-
which was created as a blueprint for sustainable ated efficiencies and cut costs, while becoming
AFFORDABLE AND
CLEAN ENERGY

workplace, by implementing
business. By the end of 2016, they achieved and less exposed to the volatility of resource prices.
the UN Guiding Principles on
DECENT WORK AND exceeded their original target of reducing their With their Sustainable Living Plan, Unilever has
Business and Human Rights,
ECONOMIC GROWTH

CO2 emissions, cutting emissions by 43% per achieved cumulative cost avoidance of over €700
by advancing opportunity ton of production compared to their 2008 base- million since 2008 and created value for people
for women, and developing line (SDG 13). Their other goals for 2020 include and the planet. They have set out a clear vision:
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

inclusive business and helping over 1 billion people improve their health “decoupling growth from environmental impact,
REDUCED increasing the participation of and well-being (SDG 3 & 6) and they have already while increasing our positive social impact”. Now
reached 538 million people through programs on seven years into the plan, Unilever is proving that
INEQUALITIES

young entrepreneurs in their


handwashing, sanitation and safe drinking water. there is no contradiction between sustainable and
value chain.
SUSTAINABLE CITIES
AND COMMUNITIES They also aim to enhance the livelihoods of 5.5 profitable growth. In fact, total shareholder return
million people across their value chain, for exam- since CEO Polman announced the Sustainable
RESPONSIBLE
SDG 2 & SDG 12 ple with their Project Shakti and other initiatives Living Plan is 290%.
Unilever aims to reduce the to improve safety, and equal oppor tunity (SDG 8),
CONSUMPTION
AND PRODUCTION

waste associated with the especially for women entrepreneurs (SDG 5). In The company has been well recognized for its
CLIMATE
ACTION disposal of their products 2015, they announced their plans to become ‘car- efforts and leadership role, receiving numerous
bon positive’ in their operations by 2030, meaning awards. For the last seven years, for example, it
by 50%, as well as sourcing
that they aim to eliminate coal from their energy has been named the number one company in the
100% of their agricultural
mix entirely (SDG 13). They also aim to directly annual Globe Scan / Sustainability ranking, based
LIFE
BELOW WATER

raw materials sustainably, support the generation of more renewable energy on a survey of 1,000 sustainability experts around
LIFE
by 2020. than they consume, making the surplus available to the world. Unilever has also regularly topped the
ON LAND

the markets and communities where they operate, relevant category of the prestigious Dow Jones
SDG 13 and source 100 % of the company’s agricultural Sustainability Index (DJSI), including in 2017 in the
raw materials sustainably by 2030 (SDG 12). Personal Products sector. Oxfam’s latest Behind
PEACE, JUSTICE

Become carbon positive for


AND STRONG
INSTITUTIONS

their own operations by 2030. the Brands report recognized Unilever as the num-
PARTNERSHIPS
FOR THE GOALS
Already in 2015, Unilever reached another signif- ber one company in its sector for its sustainability
icant milestone when its global factory network commitments, while CDP (Climate Disclosure Pro-
of over 240 factories sent zero non-hazardous ject), the non-profit global environmental disclo-
waste to landfills. This was achieved by using the sure platform, identified the company as a global
‘four R approach’ of Reducing, Reusing, Recover- leader in corporate sustainability, with a position
ing, or Recycling. From a financial standpoint, since on this year’s A List for climate, water and forests.

28

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CHALLENGE
To improve the health and
wellbeing of one billion people
whilst decoupling environmental
impact from growth; sustainably
source 100% of their raw materials,
become carbon positive by 2030;
“ UNILEVER IS
enhance livelihoods for millions by
2020 with special focus on women. PROVING THAT
OPPORTUNITIES FOR SCALE THERE IS NO
CONTRADICTION
Sustainability will continue to be integrated into every corner
of the business, and has the opportunity to generate new
oppor tunities and growth: more people are choosing pur-

BETWEEN
pose-driven brands, such as Axe, Knorr, Dove, Domestos and
Lifebuoy; as consumers’ needs adjust due to changes in the
environment, Unilever is innovating with new products, such

SUSTAINABLE AND
as laundry products that use less water. They are also training
more smallholder farmers in sustainable practices, which is
making their supply chain more secure. Increasingly, Unilever
is using its size and scale (2.5 billion consumers globally use
their products daily) to drive more transformative change
across the industry. The company is seen as a global leader
in the fight on climate change and is leading many global in-
PROFITABLE
GROWTH.”
itiatives around deforestation, human rights, sanitation, food
waste and transparency amongst other things.

Sources and further information


• https://www.unilever.com/news/news-and-features/2016/
Why-the-SDGs-are-the-greatest-growth-opportunity-in-a-
generation.html
• https://www.unilever.com/sustainable-living/the-sustainable-
living-plan/reducing-environmental-impact/waste-and-
packaging/towards-a-zero-waste-business/
• http://businesscommission.org/
• https://www.hul.co.in/sustainable-living/
• https://www.hul.co.in/sustainable-living/a-call-to-action/
• https://www.unilever.com/Images/uslp-unilever-sustainable-
living-plan-scaling-for-impact-summary-of-progress-2014_
tcm244-481642_en.pdf
• https://www.youtube.com/watch?v=utSYAkQi5hY
• https://www.unilever.com/news/Press-releases/2017/
unilevers-sustainable-living-brands-continue-to-drive-higher-
rates-of-growth.html

TDS final Boek.indb 29 18-12-17 18:56


THE TRILLION DOLLAR SHIFT  MARGA HOEK

1.3 THE SDGs: FIRST YEARS OF er to do this by bringing together leaders from
different sectors.”16 To that end, many practical
platforms were launched by the United Nations,
UNFOLDING including a private sector par tnership platform to
scale up innovative finance solutions, a Pioneers’
In 2015, two significant events took place: the Program to profile SDG champions throughout
signing of the UN’s Sustainable Development the world, as well as a number of new business
Goals and the COP21 Paris Agreement. These solutions for 2030.
two events made it clear that we are on the
threshold of a new era. The world’s challenges
are clear and companies, nations, and industries
have embarked on a purposeful journey. We will
“TO REALIZE THE SDGs, WE
see, and you will experience by reading this book, NEED TO FOSTER A NEW ERA
that business and capital have a new direction: OF COLLABORATION AND
contributing to a better world, being par t of the
COORDINATION.”
solution instead of the problem, and creating an
enduring – and profitable - business case and sus- PRESIDENT EMERITA, UNIVERSITY OF
tainable strategy. PENNSYLVANIA & FORMER PRESIDENT,
THE ROCKEFELLER FOUNDATION

The Goals are a new, objective definition of


what sustainability stands for. Achieving the Goals
means we have made tremendous strides to- In addition to the UN initiatives, par tnerships
wards developing a better world; a more stable, involving businesses, industries, and national gov-
just and sustainable world. Although there will still ernments have been established to address the
be problems to overcome and challenges to face, SDGs on a large scale. Global business par t-
we’ll be at a much better star ting point to take on nerships such as the Business Commission was
a new set of challenges in 2030 if we can achieve launched by Unilever’s CEO Paul Polman during
the SDGs by that time. the World Economic Forum in Davos in January
2016, urging the private sector to prioritize and
The launch of the SDGs has had significant impact make advancements on sustainable development
already. Immediately after their establishment, the initiatives. Unilever also joined a host of industry
SDGs garnered suppor t from the global busi- par tners to create an open platform called Par-
ness community. Word spread and many people agon, combining their market research forces in
learned about the SDGs and frontrunners were addressing key global development and sustaina-
quickly committed and involved. bility challenges. 2016 was also declared “The Year
of Green Finance” in the UK, with financial leaders
convening to encourage sustainable investments
GATHERING THE BUILDING BLOCKS 2015 - 2016 and the divestment from polluting industries such
From the establishment and expanded defini- as fossil fuels.
tion of the SDGs in 2015, we saw in 2016 the
gathering of the building blocks and the laying Nations are forming pacts and coalitions as well.
of groundwork, with numerous coalitions be- Costa Rica, for example, is bringing together a
ing formed. At a UN meeting in October 2016, broad cross-section of society including entre-
Judith Rodin, then President of the Rockefeller preneurs of large and small companies as well
Foundation explained, “To realize the SDGs, we as academics, and civil organizations - all work-
need to foster a new era of collaboration and ing towards building dynamic links to approach
coordination, and the United Nations Secre- their own challenges regarding things like improv-
tary-General has unprecedented convening pow- ing public transpor tation, and doing this with the

30

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1.3 THE SDGs: FIRST YEARS OF UNFOLDING

SDGs firmly in mind. And the Netherlands saw Data collection, interpretation, and communica-
seventy signatories from business and civil socie- tion remain key areas for improvement. In the
ty including AkzoNobel, Philips, numerous banks, United Nations’ Sustainable Development Goals
universities, and foundations such as UNICEF all Report 2016, it became evident that there was
join together in an SDG Char ter17 to provide in- a significant data gap.21 “Many national statistical
novative solutions based on knowledge and tech- systems across the globe face serious challenges
nology. in this regard. As a result, accurate and timely in-
formation about cer tain aspects of people’s lives
are unknown, numerous groups and individuals
PREPARING A SOUND FOUNDATION 2016 - 2017 remain invisible.” In their repor t, they recommend
In addition to the collaborations mentioned that in order “to fill data gaps and improve in-
above, assessments and measurement tools have ternational comparability, countries will need
been put in place to get a clear picture of where to adopt internationally agreed upon standards,
we are now and what still needs to be achieved. while the international statistical community will
Repor ts and research have also been done, as need to work closely with development par tners
mentioned earlier, on how business can contri­ and other stakeholders to strengthen national
bute to achieving the goals and what new mar- statistical capacities and improve repor ting mech-
kets are opening up. The World Business Council anisms. New data sources and technologies for
for Sustainable Development produced an SDG data collection and the integration of different
Compass18 to guide companies on how they can sources of data will need to be explored, includ-
align their strategies, and measure and manage ing through par tnerships with civil society, the pri-
their contribution to the realization of the SDGs. vate sector and academia.”22

The UN, together with over 6,000 business lead-


ers from all over the world, co-created a Global DATA COLLECTION,
Opportunity Report identifying 15 new sustainable INTERPRETATION, AND
markets. And the Organization for Economic Co-
operation and Development (OECD) produced
COMMUNICATION REMAIN KEY
a repor t in July 2016 on their pilot assessment of AREAS FOR IMPROVEMENT.
the star ting positions of six OECD countries re-
lated to the SDGs and the distance still needed to Research into business intentions and practices
go. In the repor t, they used 86 Indicators for 73 is being conducted as well, for example, PwC –
Targets covering all 17 Goals.19 The intent was to one of the world’s largest financial consultancy
help governments as they prepare to take on the firms — surveyed nearly one thousand businesses
SDG challenges. One of their observations was about their plans to address the SDGs. They found
that, “On average, OECD members have made that while 71% of the companies are planning
the most progress on health, water and energy, how they will engage with the SDGs, only 10% are
and have fur thest to go on gender equality.”20 planning to assess their impact on the SDGs that
Specifically, “health and water are the two Goals are relevant to their industry, or even understand
where OECD countries are in the best star ting how to do this. Clearly, there is work to be done
position, with nearly 70% of the distance to the to continue to educate and guide businesses.
SDGs’ finish lines already traveled. OECD coun-
tries have already traveled at least 50% of the In July 2016, The Sustainable Development Solu-
distance to the end level Targets for pover ty, food, tions Network (SDSN) and Ber telsmann Stiftung
energy, sustainable cities and oceans. By contrast, launched the SDG index and Dashboards – Glob-
gender equality scores are low, with members al Report  “to provide a repor t card for tracking
averaging only around one-third of the progress SDG progress in countries throughout the world
needed to meet the Target.” and ensuring accountability.” They measured over-

31

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

2. Results and Interpretation

Table 1.5 | The SDG Index

Figure 4 Rank Country Score Rank Country Score


The SDG index
sdgindex.org 1 Sweden 85.6 41 Argentina 72.5
2 Denmark 84.2 42 United States 72.4
3 Finland 84.0 43 Armenia 71.7
4 Norway 83.9 44 Chile 71.6
5 Czech Republic 81.9 45 Uzbekistan 71.2
6 Germany 81.7 46 Kazakhstan 71.1
7 Austria 81.4 47 Uruguay 71.0
8 Switzerland 81.2 48 Azerbaijan 70.8
9 Slovenia 80.5 49 Kyrgyz Republic 70.7
10 France 80.3 50 Cyprus 70.6
11 Japan 80.2 51 Suriname 70.4
12 Belgium 80.0 52 Israel 70.1
13 Netherlands 79.9 53 Costa Rica 69.8
14 Iceland 79.3 54 Malaysia 69.7
15 Estonia 78.6 55 Thailand 69.5
16 United Kingdom 78.3 56 Brazil 69.5
17 Canada 78.0 57 Macedonia, FYR 69.4
18 Hungary 78.0 58 Mexico 69.1
19 Ireland 77.9 59 Trinidad and Tobago 69.1
20 New Zealand 77.6 60 Ecuador 69.0
21 Belarus 77.1 61 Singapore 69.0
22 Malta 77.0 62 Russian Federation 68.9
23 Slovak Republic 76.9 63 Albania 68.9
24 Croatia 76.9 64 Algeria 68.8
25 Spain 76.8 65 Tunisia 68.7
26 Australia 75.9 66 Georgia 68.6
27 Poland 75.8 67 Turkey 68.5
28 Portugal 75.6 68 Vietnam 67.9
29 Cuba 75.5 69 Montenegro 67.3
30 Italy 75.5 70 Dominican Republic 67.2
31 Korea, Rep. 75.5 71 China 67.1
32 Latvia 75.2 72 Tajikistan 66.8
33 Luxembourg 75.0 73 Morocco 66.7
34 Moldova 74.2 74 Jamaica 66.6
35 Romania 74.1 75 Paraguay 66.1
36 Lithuania 73.6 76 Belize 66.0
37 Serbia 73.6 77 United Arab Emirates 66.0
38 Greece 72.9 78 Barbados 66.0
39 Ukraine 72.7 79 Peru 66.0
40 Bulgaria 72.5 80 Jordan 66.0

10performance
all across
SDG Index and theReport
Dashboards SDGs and Global
2017 was an inspiration to measure not only countries’
gave Responsibilities
a rat-
ing based on how well the country is presently performance on the SDGs, but also cities, busi-
doing related to meeting the SDGs. For example, ness sectors, and individual companies. The World
“Sweden’s overall index score of 84.5 signifies Bank also released their Atlas of SDGs, which in-
that Sweden was on average 84.5% of the way to cludes over 150 maps and data visualizations to
the best possible outcome across the 17 SDGs assist with effor ts to track progress in achieving
at this point in time (See Figure 4). This prelimi- the Goals.23 Countries are at different stages
nary measurement became the first of many and regarding measuring and monitoring SDG pro-

32

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1.3 THE SDGs: FIRST YEARS OF UNFOLDING

Rank Country Score Rank Country Score

81 Sri Lanka 65.9 120 Bangladesh 56.2


82 Venezuela, RB 65.8 121 Zimbabwe 56.1
83 Bhutan 65.5 122 Pakistan 55.6
84 Bosnia and 65.5 123 Rwanda 55.0
Herzegovina 124 Swaziland 55.0
85 Gabon 65.1 125 Kenya 54.9
86 Lebanon 64.9 126 Ethiopia 53.5
87 Egypt, Arab Rep. 64.9 127 Cote d'Ivoire 53.3
88 Colombia 64.8 128 Lesotho 53.0
89 Iran, Islamic Rep. 64.7 129 Uganda 52.9
90 Bolivia 64.7 130 Cameroon 52.8
91 Guyana 64.7 131 Tanzania 52.1
92 Bahrain 64.6 132 Burundi 51.8
93 Philippines 64.3 133 Mauritania 51.1
94 Oman 64.3 134 Zambia 51.1
95 Mongolia 64.2 135 Congo, Rep. 50.9
96 Panama 63.9 136 Angola 50.2
97 Nicaragua 63.1 137 Togo 50.2
98 Qatar 63.1 138 Burkina Faso 49.9
99 El Salvador 62.9 139 Sudan 49.9
100 Indonesia 62.9 140 Yemen, Rep. 49.8
101 Saudi Arabia 62.7 141 Djibouti 49.6
102 Kuwait 62.4 142 Benin 49.5
103 Mauritius 62.1 143 Mozambique 49.2
104 Honduras 61.7 144 Guinea 48.8
105 Nepal 61.6 145 Nigeria 48.6
106 Timor-Leste 61.5 146 Mali 48.5
107 Lao PDR 61.4 147 Malawi 48.0
108 South Africa 61.2 148 Gambia, The 47.8
109 Ghana 59.9 149 Sierra Leone 47.1
110 Myanmar 59.5 150 Afghanistan 46.8
111 Namibia 59.3 151 Niger 44.8
112 Guatemala 58.3 152 Haiti 44.1
113 Botswana 58.3 153 Madagascar 43.5
114 Cambodia 58.2 154 Liberia 42.8
115 Syrian Arab Republic 58.1 155 Congo, Dem. Rep. 42.7
116 India 58.1 156 Chad 41.5
117 Turkmenistan 56.7 157 Central African 36.7
118 Iraq 56.6 Republic
119 Senegal 56.2

gress. Some have assessed the availability of data also repor ted in 2016 that they had aligned or
for each of the global SDG indicators. Uganda made plans to align their national indicators to
repor ted in July 2016, that it had approximately the global SDG indicators. Business frontrunners
35% of its data readily available to measure pro- created their own tracking systems to monitor
gress on the 230 global indicators. Estonia also their progress on the SDGs, such as IKEA with
had approximately 14% of its indicators measura- their annual Sustainability Reports24 (See Case 2).
ble in 2016. And countries such as Colombia, Fin- IKEA’s repor t updates stakeholders on their pro-
land, France, Samoa, Sierra Leone and Switzerland gress in their People & Planet Positive Strategy.

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02 NO
POVERTY
IMPACT SDGs
CASE NO. IKEA
People & Planet Positive Strategy
Make a positive difference for people and the
environment, today & tomorrow
Case applied in: Global
Headquarters located in: The Netherlands
www.ikea.com

ZERO
HUNGER SDG 7 THE UN SUSTAINABLE DEVELOPMENT GOALS ARE THE MASTER PLAN FOR
Affordable and A CLEANER, FAIRER WORLD. WE WANT TO LEAD WITH PASSION AND PURPOSE
Clean Energy
GOOD HEALTH
AND WELL-BEING TO HELP MAKE THAT WORLD POSSIBLE.
Become energy independent
STEVE HOWARD, CHIEF SUSTAINABILITY OFFICER IKEA GROUP
by being a leader in renewable
QUALITY

energy and improving energy


EDUCATION

efficiency in all operations.


By August 2020, IKEA aims to
GENDER
EQUALITY

produce as much renewable IKEA is committed to helping their customers live As one of the largest retailers in the world, IKEA ‘s
CLEAN WATER
AND SANITATION energy as it consumes in their more sustainably. They are also one of the signato- products are resource intensive. As noted by Steve
operations. ries to the United Nations Global Compact set of Howard, Chief Sustainability Officer IKEA Group,
principles - based on human rights, labor, environ- “The UN Sustainable Development Goals are the
ment and anti-corruption - which are associated master plan for a cleaner, fairer world. We want
AFFORDABLE AND

SDG 12
CLEAN ENERGY

with the SDGs. IKEA measures their sustainability to lead with passion and purpose to help make
Responsible Consumption
DECENT WORK AND impact by tracking the sales of products that are that world possible.” While protecting the raw
and Production
ECONOMIC GROWTH

categorized as enabling a more sustainable life at materials that go into products, IKEA endeavors
Strive to make all home home. They report their progress towards their to ensure a sustainable supply chain, which they
furnishing materials goals and specify how they are impacting all of the consider vital to their long-term success. IKEA’s
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

renewable, recyclable or SDGs and working towards fulfilling the Global progress toward the SDGs regarding responsible
REDUCED recycled and turn waste into Compact Principals in their annual Sustainability production and consumption includes 2020 targets
Report. aimed at sourcing 100% of wood, paper, and card-
INEQUALITIES

resources. Develop reverse


board from more sustainable sources and reusing
material flows for waste
SUSTAINABLE CITIES
AND COMMUNITIES Their goals include a fourfold increase in the sales these materials in the creation of new products.
material, ensure key parts of of products geared toward a more sustainable By August 2015, IKEA successfully achieved the
range of products are easily production and consumption (SDG 12) by the target of sourcing 100% of cotton used in prod-
RESPONSIBLE

recycled, and take a stand for end of FY20, compared with FY13. Already by ucts from sustainable sources. To help meet their
CONSUMPTION
AND PRODUCTION

a closed loop society. FY15, these sales had more than doubled com- goals on climate action, IKEA is taking the lead in
CLIMATE
ACTION pared to FY13, to €1,311 million. IKEA is also fo- developing and promoting products and solutions
cused on climate change with a commitment of that inspire people to lead more sustainable and
SDG 13
€400 million through 2020 to support communi- climate-friendly lives. Sales performance of such
Climate Action
ties most affected (SDG 13). Aiming to offset their products in 2016 rose to €1,802 million, nearly
LIFE
BELOW WATER

Tackling climate change by energy use, IKEA endeavors to produce as much twice as much as 2013 sales of €641 million. IKEA
LIFE
committing to produce as renewable energy as it consumes in its operations now has approximately 1,138 products that fall un-
ON LAND

much renewable energy as by 2020 in addition to becoming 30% more en- der its range of offerings designed to enable more
they consume in operations ergy efficient in that same timeframe. IKEA has sustainable and healthier lifestyles. From LED light
committed to investing €600 million in renewa- bulbs to water efficient taps and indoor gardening
PEACE, JUSTICE

by 2020, and switching their


AND STRONG
INSTITUTIONS

entire lighting range to LED. ble energy, which includes sizeable investments in equipment, IKEA tracks sales of these products to
wind farms, solar panels and biomass generators measure their overall impact, and is 70% of the way
IKEA is joining with others to
PARTNERSHIPS
FOR THE GOALS

(SD 7). towards their sales targets in this genre.


take a stand, call for positive
change, and inspire others,
including customers, to take
action.

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CHALLENGE
To develop and revise all products
to enable customers to save or
generate energy, conserve and
re-use water, reduce waste and
live healthier lives. “ IKEA MEASURES
THEIR
SUSTAINABILITY
IMPACT BY
OPPORTUNITIES FOR SCALE
IKEA’s work
with social entrepreneurs creates
livelihood opportunities for women and minority

TRACKING
groups, with the ability to expand production ca-
pacity and sell the collections in more countries.
IKEA will start several new partnerships that will

THE SALES OF
enable IKEA countries and stores to take a con-
sistent approach, while developing partnerships
that make real and relevant difference in their
local communities. This will expand the delivery
of market-specific products to a diverse range of
customers. PRODUCTS THAT
Sources and further information
• www.ikea.com/ms/en_US/img/ad_content/
ARE CATEGORIZED
AS ENABLING A
IKEA_Group_Sustainability_Report_FY16.pdf
• www.unglobalcompact.org/what-is-gc/mission/
principles

MORE SUSTAINABLE
• www.ikea.com/ms/en_US/img/ad_content/
IKEA_Group_Sustainability_Report_FY16.pdf
https://www.unglobalcompact.org/what-is-gc/

LIFE AT HOME.”
mission/principles

TDS final Boek.indb 35 18-12-17 18:56


THE TRILLION DOLLAR SHIFT  MARGA HOEK

In many respects, 2016 was quite a year. There tions such as zero hunger, sustainable consump-
was a firm SDG breeze: A lot of preparation and tion, land, water, and forestry.” Thirdly, although it
analysis took place leading to the clear formu- is clear that strong leadership is needed, at the
lation of ambitions. We saw a lot happen on a time of their study there were still only a few
positive track, and a foundation was laid. In ad- good examples. By now, for tunately, leaders are
dition to research, in 2016, the ambitions of sec- emerging who are making the SDGs a serious fo-
tors and companies that are at the forefront of cus. They also determined that “one of the great
engaging with the SDGs star ted to come to life. challenges for the next 12 months will be to de-
Those realizing the enormous impact and op- velop viable business models that attract private
por tunities for business engaging with the SDGs investment – sometimes matched with public
star ted pledging, collaborating and formulating funding.” And lastly, they concluded that better
individual and collective commitments. However, measurement is needed. “Recognizing which
there were also events in 2016 that shook the businesses are incorporating social and environ-
foundation, whether we talk about the Brexit, the mental considerations into their business models;
US elections, or terrorist threats, that could make which countries have proactive policy practices to
us doubtful, skeptical or fearful. But in the words share; and – especially – which approaches have
of Christiana Figueres, a Costa Rican diplomat and not delivered results, is the only way to guarantee
the leading lady in the 2015 Paris Agreement, we efficient, accountable delivery of the Goals.”
need to “stay calm and transform on.” The world 2016 was a year of tremendous groundwork on
has chosen a sustainable course and recognized which we can build; groundwork in terms of col-
what needs to be done for the long-term benefit laborations founded, research and insights gath-
of the world and people. This movement will not ered, awareness created and initiatives star ted.
be stopped by political swings or any other cur- Never theless, let’s not be naive: still only a small
rent affairs. minority of businesses are really aware of the
Goals, and there is a need for private investment
of US $2.5 trillion a year. So, we have only just
THE WORLD HAS CHOSEN A begun our journey. As the WEF repor t shows, we
SUSTAINABLE COURSE AND need many others to help create a sound foun-
dation on which to build the bridge, so we can all
RECOGNIZED WHAT NEEDS TO walk the path. There is an urgent need to speed
BE DONE FOR THE LONG-TERM up and scale up, since the scale of our solutions
BENEFIT OF THE WORLD AND must meet the scale of our goals.

PEOPLE.

In October 2016, The World Economic Forum “STAY CALM AND


(WEF) assessed the developments thus far by TRANSFORM ON.”
asking a selection of Forum exper ts to comment CHRISTIANA FIGUERES, DIPLOMAT – COSTA
on the progress of the individual Goals. Publish- RICA
ing their findings in an ar ticle entitled “Sustainable
Development Goals: one year on but are we any
closer?”25 they drew five conclusions. Firstly, it is
evident that momentum is growing with over 50 BUILDING THE BRIDGE 2017
countries already integrating the Goals into their The year 2017 as I see it, had to be the year to
national strategy plans. Secondly, the intercon- prepare for acceleration – to move on from the
nectivity of the Goals is leading to oppor tunities groundwork to building the bridge everyone can
for greater impact such as “Target 12.3 regarding walk on. Both the private and the public com-
food loss and waste, which links a range of ambi- munities should be able to scale up initiatives by

36

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1.3 THE SDGs: FIRST YEARS OF UNFOLDING

UN GLOBAL COMPACT PLATFORMS

Early in 2017, the UN Global Compact launched four new platforms to accelerate the
achievement of the Goals. These par tnerships and platforms form a value chain in the
SDG process, involving all the relevant links along the journey from ambition to action.
The intention is to coordinate their work in order to make the chain as strong as possible.
The platforms focus on activating the SDGs in business worldwide by developing the follow-
ing perspectives:

1. new solutions
2. new financing
3. new repor ting
4. new innovation

The New Solutions Platform is a “comprehensive mapping of solid and scalable sustainable
solutions.” Sources for this platform comprise of the UN Global Compact´s global network of
companies, 80 country networks and more than 600 business schools and 2.5 million students
enrolled in the Principles for Responsible Management Education (PRME).

For New Financing, Global Compact has par tnered with the Principles for Responsible Invest-
ment (PRI) and UNEP-FI to create a platform on “catalyzing financial innovation to identify
innovative financial products that have the potential to redirect towards critical infrastructure
and sustainable solutions.”

Regarding the initiative for New Repor ting, Global Compact will concentrate its effor ts on
developing a widely accepted repor ting practice with special focus on “making the repor ting
useful and relevant for small and medium-sized companies.”

And lastly, the concentration on New Innovation will manifest in what is called “Project Break-
through” in par tnership with Volans. The concept is to “connect companies with exponential
thinkers and innovators – advancing the understanding of how disruptive technologies can be
developed and form new business models.” Global Compact has also developed several Apps
to help businesses understand the SDGs.

2018, while continuing to develop new ones. In aiming. In 2016, hunger still affected nearly 800
other words: The bridge should be built and ready million people26 while the goal for 2030 is to end
to suppor t large-scale solutions in 2018 and be- all hunger. CO2 emissions grew significantly from
yond. Building and maintaining this bridge is a sig- 2000 to 2015, indexing at a little over 24 million
nificant task, as it must be firm and far-reaching. kilotons of CO2 emissions in the year 2000 to
And with a long way still to go to achieve the over 36 million kilotons in 2015.27 Although there
Goals by 2030, we need all businesses and institu- has been movement in the right direction with a
tions to join in with full par ticipation. slowdown in CO2 emissions since 2015, a more
dramatic reduction is still needed if we are to lim-
Scale and great impact are crucial if we are to it the warming of the Ear th to 2 or preferably
make significant headway towards the Goals. Con- 1.5 degrees as stipulated in the Paris Agreement.
sider where we currently stand and where we are In 2006, on average men earned nearly double

37

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

what women earned, and in 2015, although all now, gives clarity to what still needs to be done.
incomes have risen, men still earned nearly dou- Quite a number of countries around the world
ble compared to women’s earnings. And in 2015, are already setting definitive goals and creating a
there were nearly 60 million young children who course of action to achieve the goals set by the
did not receive an elementary education.28 The SDGs and the Paris agreement.
goal for 2030 is for all children to receive quality
education.The bridge we are building must lead The High-Level Political Forum (HLPF) is the main
to solutions for all of these great challenges and United Nations platform on sustainable develop-
everyone needs to work towards them together. ment, established in 2012, and has a central role
in the follow-up and review of the 2030 Agenda
for the SDGs at the global level. The Forum meets
STILL...795 MILLION PEOPLE annually and addresses different SDGs each year.
AFFECTED BY HUNGER, (See Figure 5). At the 2017 meeting, HLPF focused
on the theme of “Eradicating pover ty and promot-
36 MILLION KILOTONS OF CO2 ing prosperity in a changing world.” The themes
EMISSIONS, MEN EARN MORE that have been declared for 2018 and 2019 are:
THAN WOMEN, 60 MILLION “Transformation towards sustainable and resilient
societies”; and “Empowering people and ensuring
CHILDREN NOT IN SCHOOL ... inclusiveness and equality” respectively. In addition
THERE IS MORE WORK TO BE to representatives of Member States, 77 Ministers,
DONE. Cabinet Secretaries, Deputy Ministers, and nearly
2500 stakeholders par ticipated. Twenty-two UN
Member States sent a powerful message when,
As global movement to implement the Goals is not even a year after the adoption of the 2030
gaining traction, and the groundwork is being set, Agenda, they presented their national voluntary
countries have star ted to integrate the SDGs reviews at the 2016 High-Level Political Forum.
into their national policies, plans and programs. The voluntary reviews explain how each country
The concrete identification of the shared Glob- intends to integrate the SDGs into their nation-
al Goals, and assessments of where we stand al strategies and budget processes.29 In 2017, the

Figure 5
HLPF Timeline HLPF
sustainabledevelop- TIMELINE
ment.un.org { The set of goals to be reviewed in depth will
be the following. Including Goal 17. }
2013 2015 2017 2019
Building the Strengthening Eradicating Empowering
future we want: integration poverty and people and
from Rio+ 20 to implementa- promoting ensuring
the post-2015 tion and review prosperity in a inclusiveness
development the HLPF after changing world and equality
agenda 2015

2014 2016 2018


Achieving the Insuring that Transformation
MDGs and no one is left towards
charting the behind sustainable and
way for an resilient
ambitious societies
post-2015
agenda

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1.3 THE SDGs: FIRST YEARS OF UNFOLDING

number of countries voluntarily repor ting their “Sharing City Seoul Initiative.” Under this initiative,
progress and results nearly doubled to 43, and Seoul promotes the shared use of both public and
there are 48 planned for 2018. According to UN private resources, while at the same time boosting
General Assembly resolution 70/299, the volun- civic engagement and suppor ting local businesses,
tary reviews aim to “facilitate the sharing of expe- and helping to make Seoul more resource-effi-
riences, including successes, challenges and lessons cient, accessible and sustainable. The economic
learned.”30 If we take a journey through some of savings of sharing parking spaces, opening public
the continents, we can see action in many areas. facilities, and sharing cars in 2015 was nearly US
The following examples of countries’ progress and $42 million, according to the city government.33
attention to the SDGs shows their commitment South Korea also par tnered with Norway to
to creating a sustainable future. make progress on SDG 4 and encouraged edu-
cational institutions to include the SDGs as par t
of schools’ curriculum, and South Korea carried
Asia: The Chinese government has been imple- out nationwide campaigns for the implementation
menting the 2030 Agenda in all sectors and has of the Goals. Fur thermore, the Asia-Pacific SDG
made progress on many of the SDGs. In 2016, Par tnership has launched the SDG Data Por tal,
China’s GDP increased by 6.7%, or 74.4 trillion showing the current status and progress towards
RMB, contributing to more than 30% of global the 17 SDGs for the 58 member states of ESCAP
growth.31 Employment also grew at a fast pace, (the UN Economic and Social Commission for
adding a total of 13.14 million urban jobs and lift- Asia and the Pacific).
ing 12.4 million people out of poverty. Living con-
ditions also improved with per capita disposable
income increasing by 6.3% in real terms. At this Africa: In Uganda, the government, in collab-
rate, China is expected to achieve the SDG on oration with the UN, organized a national SDG
pover ty eradication ten years ahead of schedule. launch event, including an exhibition of the 17
Also in Asia, the Indonesian government is pro- SDGs by stakeholders, and appointed five emi-
moting sustainability in business and private-sec- nent Ugandans to serve as SDG ambassadors to
tor organizations, and has been among the most help raise awareness of the Goals. In both Uganda
active par tners in launching SDG-related activi- and Sierra Leone, SDG trainings were provided
ties in the country. Collaborative organizations to journalists. Sierra Leone also prepared an SDG
have brought government, NGOs, philanthropic communication strategy to bring attention to and
foundations, and businesses together to improve simplify the messages of the SDGs, and organized
conditions for their population of 255 million, and SDG exhibitions in Freetown as well as campaigns
their environment which includes 17,000 islands. at various universities by engaging with mayors,
Indonesia has successfully reduced poverty from university teachers and students. And in Kenya,
17.75% in 2006 to 10.7% in 2016.32Their great they are currently in the process of integrating
challenge now is to reduce poverty even further climate change into the curriculum for primary
and improve the welfare of the population. Japan and secondary levels of education.34 The Kenyan
is also looking to improve aspects of their society, government has also directed all Ministries, De-
namely gender equality, health, and disaster risk par tments and Agencies (MDAs) to mainstream
reduction. Japan aims to become a role model the SDGs into policy, planning, budgeting, moni-
for the world on implementation of measures to toring and evaluation systems and processes, and
achieve the SDGs, and will work with countries they have already established several programs to
worldwide to achieve the Goals globally. Three cit- meet the Goals, including: Mobile health clinics,
ies in Asia rank in the top 10 of smartest cities in Water ATMs, and Social protection programs. In
the world: Seoul, Hong Kong, and Singapore, with many other countries throughout Africa, attention
their attention to environmental and economic is focused on reducing and ultimately eliminating
sustainability. Seoul, for instance has created the food insecurity and pover ty.

39

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

“THE SDGs EXPLICITLY RECOGNIZE THAT WE CANNOT HOPE TO


ACCOMPLISH THIS AMBITIOUS AGENDA IF HALF THE WORLD’S
POPULATION IS NOT INCLUDED IN DECISIONS, IN POWER, AND IN
OPPORTUNITIES.”
CANADA’S STATEMENT TO THE 2017 UN HIGH LEVEL POLITICAL FORUM ON SUSTAINABLE DEVELOPMENT

North America: Canada is committed to ad- agenda, Canada and Jamaica co-lead a Group of
vancing the SDGs domestically and internationally. Friends on SDG Financing at the UN, which seeks
Domestically, they are striving to reduce inequali- new sources of public, private, and philanthrop-
ty by growing the middle class; investing CA $120 ic financing for the SDGs. Mexico implement-
billion in infrastructure over the next decade; re- ed MY World Mexico in April 2016, gathering
newing their relationships with indigenous peo- nearly 200 volunteers and 60 organizations to
ples; and promoting gender equality and women’s work towards spreading awareness of the SDGs
empowerment.35 For gender equality, Canada is and strengthening accountability measures.
taking many concrete steps. They have included a Mexico also established a “Green Plan” to tack-
Gender Statement as par t of the federal budget, le the intense pollution problem in Mexico City.
which contains more than 60 measures and in- The strategy has resulted in a set of programs
vestments that are identified as having differential to improve and expand public transpor tation sys-
gender impacts. tems, as well as offer more cycling and walking
options. Citizens are being educated about the
Tangible actions include CA $101 million towards impor tance of sustainable mobility’s role in fos-
establishing a national strategy to address gen- tering a healthier, more mobile, and safer environ-
der-based violence, a CA $7 billion investment ment. In the United States, there is suppor t for
over 11 years for early learning and childhood de- climate action among many States. After it was
velopment, and providing more flexible maternity declared that the United States would withdraw
and paternity leave. In their work abroad, SDG from the Paris climate deal, 14 state governors
5 (achieving gender equality and empowering all vowed to continue upholding the agreement and
women and girls) will be the entry point under press ahead with policies to fight global warm-
Canada’s new Feminist International Assistance ing. California, Colorado, Connecticut, Delaware,
Policy, and will drive progress on the other SDGs. Hawaii, Massachusetts, Minnesota, New York,
Gender equality and the empowerment of wom- Nor th Carolina, Oregon, Rhode Island, Vermont,
en and girls has now been placed at the hear t Virginia, and Washington formed an alliance to-
of their international assistance effor ts, marking a gether with Puer to Rico to use their knowledge,
significant shift in their focus and practices. To ad- resources and considerable economic sway to
dress climate change, Canada has established the propel sustainable environmental policies.36 These
Pan-Canadian Framework on Clean Growth and 14 members represent US $7 trillion of the total
Climate Change, a concrete plan that will allow $18 trillion US GDP, and generate 1.3 million jobs
them to meet their international commitments. in clean energy.
Their Federal Sustainable Development Strat-
egy also addresses the environmental aspects
of the SDGs, which they firmly suppor t. And to South America: In its 2016 Voluntary Nation-
help bridge the capital gap in funding the SDG al Review (VNR) at the HLPF meeting, Colombia

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1.3 THE SDGs: FIRST YEARS OF UNFOLDING

repor ted that it had aligned the SDGs with the water sludge in the Netherlands, and applying a
peace agreement between the Government and new biological treatment to remove pesticides
the Revolutionary Armed Forces of Colombia and nitrates from water in southern Spain. In the
(FARC). It added that the agreement would be area of climate action, the EU’s projects suppor t
the first of its kind with a focus on sustainable their target to reduce greenhouse gas emissions
development and the SDGs would become a by at least 40% by 2030 compared to 1990 lev-
tool for peace-building in Colombia. In Central els. Individual countries in Europe are also align-
and South America, nations are also making head- ing their strategies to the SDGs, such as Finland
way on the Global Goals. The current Five-Year who is pursuing “The Finland We Want by 2050:
Development Plan (2014 -2019) in El Salvador Society’s Commitment to Sustainable Develop-
calls for the implementation of several of the ment” which is tied to the 2030 Agenda as well as
Global Goals including SDG 8 (decent work and its Development Policy. Among other countries,
economic growth), SDG 4 (quality education) Switzerland has also incorporated the SDGs into
and SDG 16 (peace, justice and strong institu- its Foreign Policy Strategy 2016-2019.
tions). This action clearly embodies the three main
priorities defined in the Plan: 1. productive em-
ployment generated through sustained economic TO ACCELERATE THE CHANGE
growth; 2. inclusive and equitable education; and 3. NEEDED, NOT ONLY BUSINESS
effective citizen security. The development of the
first phase of SDG mainstreaming in El Salvador
AND GOVERNMENTS MUST BE
is guided by a commitment to building on the ENGAGED, BUT CAPITAL AS
results already achieved and on the perspectives WELL.
shared by more than 4,000 Salvadorans about the
“El Salvador We Want” as par t of the UN SDG
Action Campaign. The Government of Brazil has And Germany too is a vocal proponent of the
been a long-standing champion of sustainable de- SDGs. In addition to campaigning for ambitious
velopment. The Brazilian Institute of Geography implementation by the EU of the SDGs, and
and Statistics (IBGE) has represented the Mer- calling for a new EU Sustainable Development
cosur countries and Chile on the Inter-Agency Strategy, Germany is implementing numerous
and Exper t Group on Sustainable Development concrete targets domestically.37 Countries are
Indicators and has been elected as the new Chair also forming new coalitions to advance the SDGs,
of the UN Statistical Commission, actively con- like Denmark, Iceland, Norway, Sweden and
tributing to the task of developing the SDG in- Finland who together launched an initiative called:
dicators at the global level. The country has also Nordic Solutions to Global Challenges on May 30,
put in place a Post-2015 Agenda Task Force that 2017. Their aim is to spread their knowledge and
publishes available national indicators as input for experience related to sustainable solutions. Spe-
the follow-up process on the SDG targets. cifically, their six flagship projects include: energy
solutions, sustainable cities, gender effect at work,
health and welfare solutions, food policy lab, and
Europe: The European Union will invest €222 climate solutions.38 Representatives of the Nor-
million in the fields of environment and resource dic countries point out that much of what they
efficiency, nature and biodiversity, environmental are doing affects all of the SDGs. Fur thermore,
governance and information, and projects sup- Sweden has set their own goal to become car-
por ting climate change adaptation and mitiga- bon-neutral by 2045. France is also involved in
tion. The European sustainable economy projects many private-public par tnerships for the Goals,
include: testing an Italian prototype that could including: The 10YFP Sustainable Food Systems
cost-effectively conver t petrol cars into hybrid Programme, Climate and Clean Air Coalition and
vehicles, creating bio-based products from waste- the Sustainable Ocean Initiative.

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03 NO
POVERTY
IMPACT SDGs
CASE NO. TRINE SOLAR
Crowdfunded Solar Investments for the
Global South
Innovative financing model for solar projects in
the developing world
Case applied in: Africa
Headquarters located in: Sweden
www.jointrine.com

ZERO
HUNGER SDG 1 1 IN 5 PEOPLE ON THE PLANET IS USING KEROSENE AND DIESEL FOR ENERGY, AND
No Poverty YOU WANT TO HAVE A SOLUTION TO THAT PROBLEM. IF YOU WANT FUNDING
GOOD HEALTH
AND WELL-BEING
Helped finance projects worth
FOR CLEAN ENERGY, CROWD INVESTING IS THE SCALE PLATFORM NEEDED.
over €2.5 million, alleviating
SAM MANABERI, FOUNDER AND CEO TRINE SOLAR
energy poverty.
QUALITY
EDUCATION

SDG 3
Good Health and
GENDER
EQUALITY

Well-Being Since its launch in 2015, TRINE’s crowd-investing Growing access to solar energy is allowing families
CLEAN WATER
AND SANITATION Replacing kerosene improves model for financing solar energy solutions has across Africa to stop using kerosene as an energy
indoor air quality and reduces provided electricity to communities that cannot source and start using cleaner, cheaper solar ener-
deaths. Pilot investment bear the upfront costs themselves, while deliv- gy. It is more environmentally friendly by reducing
ering a financial return for investors (SDG 11). carbon emissions and is also a far less costly op-
AFFORDABLE AND
CLEAN ENERGY

reduced kerosene use by 72%.


With an investment minimum of only € 25, even tion (SDG 3). However, bringing solar technology
small-scale investors can profit from their impact to the majority of Africans without electricity re-
SDG 7
DECENT WORK AND
ECONOMIC GROWTH

investment. Many solar energy entrepreneurs in mains difficult. Small start-ups are becoming more
Affordable and developing countries are waiting to be able to prevalent and can catalyze sustainable economic
Clean Energy scale their business with fair loans at reasonable growth by providing cheap and clean electrici-
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

Funds cleaner and interest rates. The loans are paid back with inter- ty, bypassing the challenges of expensive power
REDUCED decentralized electricity from est by the value of electricity produced from the transmission and distribution infrastructure. But
solar energy system. The model also improves they often lack the capital needed to cover man-
INEQUALITIES

solar panels by a low interest


livelihoods for both the investors and the energy ufacturing and shipping costs, making it hard to
loan system, delivering
SUSTAINABLE CITIES
AND COMMUNITIES recipients and mitigates CO2 emissions. Energy scale renewable energy. TRINE is also creating
electricity and reducing CO2 poverty is a critical issue for over a billion people in opportunities for local industry. In Sidonge, Ken-
emissions by 58,000 tons. remote communities around the world. Investors ya, for example, plans for solar-powered bottling
RESPONSIBLE

contribute to a set of rigorously vetted potential and refrigeration services would allow locals to
CONSUMPTION
AND PRODUCTION

SDG 11 solar projects. Once raised, the money is trans- sell purified water and milk. TRINE’s solar initiative
CLIMATE
ACTION Sustainable Cities and ferred to the local partner as a loan, and the in- in this region has 16 investors contributing to the
terest generated is eventually split between TRINE €30,000 total amount, helping 250 people and re-
Communities
and the funders. TRINE combines their for-profit ducing 146 tons of CO2 (SDG 13).
Delivers solar power to more
business model with positive social and environ-
LIFE
BELOW WATER

than 194,000 people early on mental impact to attract individual and corporate TRINE has helped initiate more than a dozen
LIFE
during the urbanization transit investors, who often match sums raised from the projects and given over 194,000 people great-
ON LAND

to facilitate a sustainable “crowd”. TRINE’s solution fills a financing gap and er access to energy (SDG1). These include a US
urban growth trajectory. democratizes financing of solar energy (SDG 7). $25,000 initiative to provide solar lights to fisher-
TRINE gets its name from a “trifold mission of men in Jinja, Uganda, expected to generate 6.75%
PEACE, JUSTICE
AND STRONG
INSTITUTIONS

SDG 13 achieving ROI, social and environmental goals.” annual returns after a 1.5-year payback period.
This innovative crowdfunding investment plat- The company expects to be cash flow positive
Climate Action
PARTNERSHIPS
FOR THE GOALS

form makes an positive impact and generates a in two years. If successful, its five-year plan would
Estimates saving 3.7 million return on investment. see one million people gain access to clean energy.
tons of CO2 annually by 2026.

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CHALLENGE
To provide the 1.1 billion
impoverished people around
the world access to electricity
by closing the financing gap.
“ MANY SOLAR
ENERGY
ENTREPRENEURS
OPPORTUNITIES FOR SCALE
If this investment model gains widespread adop- IN DEVELOPING
COUNTRIES ARE
tion to 15% of the target group, it has the potential
to deliver energy access to 48 million people and
save 3.7 million tons of CO2 emissions annually by
the year 2026. TRINE’s model is on track to elim-
inate energy poverty for 66 million people within
the next five years and expects its crowd-invest-
ment platform for solar energy projects will raise
WAITING TO BE
ABLE TO SCALE
around €100 million by mid 2019.

THEIR BUSINESS
Sources and further information
• www.jointrine.com/projects
• explorer.sustainia.me/solutions/crowdfunded-

WITH FAIR LOANS


solar-investments-for-the-global-south
• www.pv-magazine.com/2017/06/29/swedens-
trine-raises-6-million-in-funding-round-for-

AT REASONABLE
solar-projects
• www.crunchbase.com/organization/trine#/
entity
• repor t.businesscommission.org
• www.jointrine.com/news/trine-guesting-bbc-
business-live INTEREST RATES.”

TDS final Boek.indb 43 18-12-17 18:56


THE TRILLION DOLLAR SHIFT  MARGA HOEK

These countries and many others recognize that combination of public and private funding – offers
the SDGs and sustainability is good for economic a way forward. Conversely, developed countries,
growth, as the rest of this book will demonstrate where governments do have money to invest, but
as well. As shown, the SDGs have not only been want to encourage private investors to engage
adopted by countries all over the world, but they as well in order to really propel advancements,
are being internalized into policies and programs. can use public capital to attract private capital.
However, the general consensus at the HLPF was
if the world is to stay on target and achieve the PRIVATE CAPITAL NEEDS TO
SDGs by 2030, key stakeholders, including gov-
ernments, must drive implementation at a faster
SHIFT IN INVESTMENT FOCUS,
rate. The recent Cop23 climate change summit in AND BLENDED FINANCE MUST
Bonn, Germany confirms this conclusion. The UN BE UTILIZED MORE.
presented The Emissions Gap Report 2017 just
before the summit. “The overarching conclusions
of the repor t are that there is an urgent need In the case of Trine Solar, the company came up
for accelerated shor t-term action and enhanced with a modern innovative solution to the lack of
longer-term national ambition, if the goals of the capital needed to implement sustainable energy
Paris Agreement are to remain achievable – and solutions in Africa. They initiated crowd-investing
that practical and cost-effective options are avail- to offer experienced investors as well as people
able to make this possible.”39 from around the world a pathway to impact in-
vesting. Investors can invest as little as US $25 in
a wor thwhile investment to help developing com-
2018: TIME TO SPEED UP AND SCALE UP munities gain access to energy through solar solu-
In reference to the latest progress repor t on the tions.This model not only provides a much-needed
SDGs, UN Secretary-General Antonio Guterres utility to communities that lack access to energy,
warns: “Implementation has begun, but the clock it also provides investors with a profitable venture
is ticking…the rate of progress in many areas is and a green one at that (See Case 3).
far slower than needed to meet the targets by
2030.”40 This most recent repor t found that while In the capital world, the SDGs came out at the
progress has been made over the past decade time that research was already showing that
across all areas of development, the pace of pro- sustainable investing was increasingly paying off.
gress has been insufficient and advancements The Organization for Sustainable Investors deter-
have been uneven to fully meet the implementa- mined from a study they conducted that “during
tion of the SDGs. a period of three years (2009-2011) financial
returns in terms of stock rate were 30% higher
To accelerate the change needed, not only busi- in 10 high-sustainability companies listed on the
ness and governments must be engaged, but AEX, compared to 10 low-sustainability compa-
capital as well. Many studies have recently been nies in the AEX.”41
conducted regarding capital and the SDGs, and
awareness of the capital gap has grown. It has be-
come clear that we need an additional US $2.5 WE NEED MORE ACTIVE
trillion a year to reach the Goals, which means INVESTMENTS IN SUSTAINABLE
private capital needs to shift in investment focus,
and blended finance must be developed wisely
SOLUTIONS.
and utilized more. Public funds, especially in de-
veloping countries are often not sufficient to Capital investors, including large pension funds
invest in the solutions that will ultimately bene- such as APG and PGGM42 in the Netherlands, and
fit them. Therefore, blended finance – that is a other asset management organizations through-

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1.3 THE SDGs: FIRST YEARS OF UNFOLDING

out the world, have star ted to turn their atten- In order to achieve the Goals, divestment alone is
tion to the SDGs. They are tracking and repor ting not enough, we need to level the playing field by
their investments according to sustainability and eliminating subsidies to fossil fuels. By the end of
corporate governance performance. Some are 2016, more than 50 countries had committed to
joining other investors and organizations like phasing out fossil fuel subsidies, but this is far from
the Global Real Estate Sustainability Benchmark a global commitment. In addition, we need more
(GRESB) to create standards such as the Global active investment in sustainable energy solutions.
Standard for Por tfolio-Level Sustainability Assess- Investment in renewable energy is gaining ground,
ment in Real Estate and develop and establish a but again, much more needs to be done.
consistent global sustainability framework.
So if 2017 was the year of preparing to cross
the bridge, we definitely have to make sure that
JOIN TOGETHER TO HELP MEET regardless of growing risks and instability around
THE GREATEST CHALLENGE AND us, we have to, like Christiana Figueres said, “stay
calm and transform on” with a solid commitment
BIGGEST OPPORTUNITY OF ALL to promote more solutions at a higher speed and
TIME. a greater scale.

Institutional investors at scale have been divest-


ing from fossil fuel companies. Between 2015 and WRAP UP
2016, the fossil fuel divestment movement dou- If we all contribute, we can use the groundwork
bled, with the value of assets held by divesting to build this bridge, and we can look forward to
institutions and individuals now exceeding US $5 us all crossing it to a sustainable future. Building it
trillion.43 In May 2017, thousands of people attend- will be rewarding and gratifying. And it will be suc-
ed over 260 events in 45 countries on six conti- cessful business-wise as well. You will see when we
nents during the Global Divestment Mobilization look back to admire the bridge we have built, and
(GDM) organized by the grassroots organization when we look ahead in anticipation, business, cap-
360.org to call for divestment from the fossil fuel ital, civil society, and governments will be cross-
industry. UK universities have emerged as world ing the bridge we have all built together. So, take
leaders on fossil fuel divestment as the total global everybody with you that you can to join together
value of funds being withdrawn by higher educa- to help meet the greatest challenge and biggest
tion institutions tips GBP £80 billion.44 oppor tunity of all time, for all of us. n

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2
THE TRILLION DOLLAR SHIFT  MARGA HOEK

BUSINESS FOR GOOD: A TRILLION DOLLAR BUSINESS CASE

The misallocation of resources, as well as the drive for profitable returns at the expense of humanity and the
environment, has all begun to reveal that doing business and employing capital in this way is a costly propositi-
on. The SDGs offer a growth potential of enormous magnitude that, when implemented, could mobilize trillions of
dollars. Business and capital have the power, and are well positioned, to take advantage of this unprecedented
opportunity. While unlocking markets and guiding trends, capital expenditures for new markets that respond to the
SDGs will become sound investments with stable returns. The power of the private sector to innovate and devise
solutions is unmatched, and it must be harnessed to steer us in the right direction. By embedding SDG solutions
into business models and directing capital toward the common Goals, businesses can scale up their impacts sig-
nificantly. Shared value is an important model for both business and capital to create value not only for themsel-
ves, but for the environment and society as well.

2.1 THE CALL TO BUSINESS And a significant shift in investment strategy is


needed. The financial sector has created a chasm
between the economic and real value of money.
AND CAPITAL For years, maximizing the return on investment
has been the name of the game and has been an
The adoption of the SDGs and the Paris Agree- adrenalin rush that has surged through the entire
ment were, in addition to a call on governments, financial sector. This phenomenon, however, is not
a message from and for the business and capital solely responsible for the economic crises that
world. And the message is clear : businesses and ensued, the failing economic system as a whole
capital must aim to create a positive impact on all is to blame.
the assets of the world. They must contribute to
developing an economy that is here for the world, The financial sector has come to the realization
and leave behind the exploitation of a world serv- that action is necessary and sustainable practices
ing the economy. present a great oppor tunity. Achim Steiner, direc-
tor of the United Nations Environmental Program
While business has contributed to the mass de- proclaimed 2016 the “Year of Green Finance.”
struction of our resources, it also holds the key During that year, several countries issued strat-
to the solutions. Therefore, the call to business is egies for greening their financial systems. China,
necessary as corporations are in fact some of the for example, launched a 35-Point Program1 with
largest economies in the world, transcending bor- guidelines for establishing a more robust green fi-
ders with far-reaching influence. Responsible busi- nancial plan. China also became the largest green
ness models are good for the world and they can bond market with issuance of US $30.2 billion.2
open many oppor tunities as well. There is simply Leading insurance regulators also decided to
no reason not to incorporate the SDGs in busi- work together on how to respond to sustaina-
ness and capital strategies, innovations, products
and services throughout the supply chains.
“ETHICS IS THE NEW
The UN has specifically urged the financial indus-
COMPETITIVE ENVIRONMENT.”
try to play a larger role in impact investing with
the goal of aiding the SDGs. This too is a neces- PETER ROBINSON, FORMER CEO MOUNTAIN
sary call to action as capital plays a pivotal role EQUIPMENT CO-OP
in driving the world towards achieving the Goals.

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2.1  THE CALL TO BUSINESS AND CAPITAL

bility challenges like climate change. In all, the UN to the Global Sustainable Investment Review 2016,
estimates that the number of policy measures to global sustainable investment assets reached US
green the financial system has more than doubled $22.89 trillion at the star t of 2016, a 25% increase
to over 200 measures across 60 countries.3 These from 2014,7 with two-thirds of that growth in
policy changes were closely connected with the Europe, and significant strides in China. This
rapid growth of green finance in the marketplace. movement, together with the unmistakable trend
to divest from fossil fuels, makes it clear that there
is a shift in the right direction.
THE FINANCIAL SECTOR HAS
COME TO THE REALIZATION
A MESSAGE TO AND FROM BUSINESS
THAT ACTION IS NECESSARY The rise of sustainable business is also visible by
AND SUSTAINABLE INVESTING the groundbreaking success of the COP21 cli-
PRESENTS A GREAT mate summit in Paris and its successor, COP22.
Governments and businesses widely recognize
OPPORTUNITY. that they share responsibility for what undoubt-
edly is the greatest challenge in our history: to
A similar movement can be seen in the traditional combat climate change and establish a world
shelters of capital: the stock exchange. In 2015, 30 economy that is fundamentally sustainable. Over
stock exchanges worldwide - including Euronext 500 companies and more than 180 investors, re­
and Qatar - joined the Sustainable Stock Exchang- presenting trillions of dollars in revenue and as-
es initiative, thereby committing themselves to a sets under management, have made more than
set of best practices to promote sustainable in- 1,000 commitments to reduce greenhouse gas
vestment; today that number is up to 56 stock ex- emissions.8 Despite the decision by the United
changes. Ten years ago, the phenomenon of green States federal government to retract their collab-
bonds didn’t even exist. In the meantime, and oration with this agreement, nearly every other
par ticularly in 2016, the issuance of green bonds country in the world has signed on, and remains
grew rapidly with over US $81 billion in green committed. In addition, individual cities and states
bonds being issued, showing significant growth of in the US as well as many American businesses
nearly double what it was in 2015.4 The total cu- also remain committed, and are forming par tner-
mulative issuance of green bonds has grown tre- ships and significant initiatives to fur ther the goals
mendously since 2007 and is now over US $215 of the agreement.
billion. A further US $19 billion was issued during
the first two months of 2017. In fact, Moody’s es- Paul Polman put it very well when he aptly said
timates the market for green bonds moving to US that the Paris summit was “a message to business.”
$206 billion in total issuance in 2017 alone5. And in my opinion, we should also add that it
is a message from business! Businesses see the
China is especially active in the pursuit of their oppor tunities to unlock markets and innovate.
sustainable economic plan. It is based on their Leading companies are excited to work towards
concept of an “Ecological Civilization” (ECZ) achieving the Global Goals and the Paris agree-
which steers investment towards endeavors to ment reinforces the SDGs. It is not a surprise that
conserve energy and resources and protect the 79 large multinational companies signed an open
environment. Researchers estimate that it would letter suppor ting the Paris agreement and pledg-
take US $274 to $468 billion of this type of ing their commitment to do their par t in the
“green investment” each year from 2014 to 2020 effor ts to curb climate change.9 And when US
to shift the Chinese economy toward an ECZ.6 President Trump withdrew from the Paris Agree-
All in all, the amount of sustainable investments ment, 25 leading American companies signed a
has increased significantly since 2014. According letter urging him not to pull out of this historic

47

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

“WE ARE CEOs FROM 79 COMPANIES AND 20 ECONOMIC SECTORS


WITH OPERATIONS IN OVER 150 COUNTRIES AND TERRITORIES,
TOGETHER WE GENERATED OVER US $2.1 TRILLION OF REVENUE
IN 2014. WE AFFIRM THAT THE PRIVATE SECTOR HAS A
RESPONSIBILITY TO ENGAGE ACTIVELY IN GLOBAL EFFORTS TO
REDUCE GREENHOUSE GAS EMISSIONS, AND TO HELP THE WORLD
MOVE TO A LOW-CARBON, CLIMATE-RESILIENT ECONOMY.”
OPEN LETTER SIGNED IN ADVANCE OF THE PARIS CLIMATE AGREEMENT IN DECEMBER 2015.
WEFORUM.ORG

accord. Although the agreement was originally global goals. Smar t companies and industries that
aimed at governments, many members of the busi- readily embrace this new agenda will be the lead-
ness community see the benefits and potential. ers of tomorrow.” 10 11

The SDGs are a good compass for the business An innovative star t-up called Sanivation took
community to develop sustainable business mod- these words to hear t and created a business
els in various sectors. Companies in vir tually all aimed at solving two of the most pressing issues
industries see climate action (SDG 13) as one of facing people in developing countries: lack of san-
the five most impor tant SDGs to act on. If busi- itation due to poor infrastructure, and expensive
nesses worldwide use their power and scale to polluting fuel options. The need to address these
positively influence the environment and elimi- issues is significant as diseases caused by unsafe
nate negative impacts, then we will be well on our water and the lack of basic sanitation kill more
way to achieving the SDGs. people every year than all forms of violence, in-
cluding war. Therefore, solutions for these prob-
Achieving all of the Sustainable Development lems are crucial. Sanivation’s business model has
Goals by 2030 is an ambitious vision. But it is a vi- the potential to unlock a multi-million dollar mar-
sion that offers huge growth potential for business ket, while helping people improve their health and
and capital. It is a game changer that requires busi- dignity and giving them access to a better, more
ness and capital to be a driving force. Lise Kingo, sustainable and more affordable fuel source (See
CEO and Executive Director of the United Na- Case 4).
tions Global Compact, urges business and capital
to contribute to the SDGs. Summarizing the par t
business plays in the Global Goals, Kingo states
“The private sector has the power of innovation “SMART COMPANIES AND
and ability to create many of the solutions need-
ed to address the challenges the world is facing
INDUSTRIES THAT READILY
today. To meet the SDGs, we need to mobilize EMBRACE THIS NEW AGENDA
businesses to scale up their impacts significantly. WILL BE THE LEADERS OF
The private sector will play an essential role in
TOMORROW.”
achieving the Sustainable Development Goals.
The most important contribution a company can LISE KINGO, CEO & EXECUTIVE DIRECTOR OF
make is to do business responsibly, and then find THE UNITED NATIONS GLOBAL COMPACT 12
opportunities to innovate around these ambitious

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“ THE OPPORTUNITY TO RAISE
THE QUALITY OF LIFE IS
THE BIGGEST BUSINESS
OPPORTUNITY GOING.”
ANAND MAHINDRA, CHAIRMAN AND MANAGING DIRECTOR MAHINDRA &
MAHINDRA

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04 NO
POVERTY
IMPACT SDGS
CASE NO. SANIVATION
Helping people in urbanizing communities
throughout Kenya live a modern and
healthy life
Addressing the sanitation and fuel need in East
Africa
Case applied in: East Africa
Headquarters located in: Kenya
www.sanivation.com

ZERO
HUNGER SDG 3 EVEN WITH AN AMBITIOUS GROWTH PLAN, SANIVATION MIGHT [ONLY] BE ABLE TO
Good Health and REACH 0.5% OF THE MARKET IN THE NEXT FIVE YEARS. THAT’S [STILL] ABOUT
GOOD HEALTH
AND WELL-BEING
Well-Being
US $5 MILLION IN ANNUAL REVENUE FROM WHAT USED TO BE A WASTE
Provides a hygienic place to
PRODUCT.
use the toilet and removes
QUALITY
EDUCATION
infectious waste from ANDREW FOOTE, CEO AND CO-FOUNDER SANIVATION
communities, helping to
reduce diarrheal disease.
GENDER
EQUALITY

Benefits the 70% of Africa’s Sanivation was launched in 2014 as a comprehen- oping nations. 2.4 billion people across the globe
CLEAN WATER
AND SANITATION nearly one billion people sive program, offering a range of services from lack access to a decent toilet and live without
that do not have access to toilets and waste collection to the production sufficient sanitation facilities. Nine out of ten peo-
hygienic sanitation facilities, and sale of waste-based fuel briquettes. The com- ple living in rural areas of developing countries
pany’s mission responds to fuel shor tages, water still practice open defecation with 90% of hu-
AFFORDABLE AND
CLEAN ENERGY

and the 30% that practice


contamination, and health issues. Sanivation’s in- man waste being disposed into the environment
open defecation or use
DECENT WORK AND novative idea to use human waste as a source of before being treated. This has caused diarrheal
communal pit latrines, which
ECONOMIC GROWTH

fuel, offers many benefits. It saves people money, disease to be the second-leading cause of death
are unsanitary and often reduces CO2 emissions, saves 88 trees per ton in the world for children under five, killing 1.5 mil-
dangerous. used, improves health by improving sanitation and lion children each year. Adequate sanitation alone
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

decreases the contamination of water caused by can reduce diarrheal illness by 37.5%.
REDUCED SDG 6 poor sanitation.
Sanivation’s solution to both of these issues is to
INEQUALITIES

Clean Water and Sanitation


Demand for household fuel alternatives is high in provide toilets and a waste collection service, and
Prevents the contamination of
SUSTAINABLE CITIES
AND COMMUNITIES many parts of the world, especially in developing use this waste to create a fuel source. The waste
local water sources. regions. In Kenya, over 80% of urban households collection venture offers a subscription-based
rely on charcoal for energy. Since 2004, charcoal sanitation service, where customers pay a month-
SDG 7
RESPONSIBLE

use has gone up by more than 50% while prices ly fee of 600 Kenyan shillings (about US $6.50) for
CONSUMPTION
AND PRODUCTION

Affordable and Clean have almost tripled. Moreover, charcoal is a dir ty a Sanivation employee to install a toilet and then
CLIMATE
ACTION Energy fuel and is responsible for two million deaths an- pick up the waste twice a week and transpor t it to
nually, and the production of charcoal is a leading the work site (SDG 9). The toilet service helps to
Using the briquettes saves up
cause of forest degradation across the world. The prevent the contamination of local water sources
to 15% on monthly fuel costs
briquettes that are created from feces offer a saf- and promote good health and well-being (SDGs
LIFE
BELOW WATER

because of improved perform- er, and longer lasting alternative to charcoal. This 6 & 3). Sanivation captures the waste in sealable
LIFE
ance and efficiency. innovative idea not only provides safe, affordable containers which is transpor ted to treatment fa-
ON LAND

and clean energy (SDG 7), it unlocks a whole new cilities. During treatment, valuable resources are
market. In Kenya, feces-based briquettes have the recovered before the waste is disposed of in an
potential to meet 50% of the country’s energy ecologically friendly manner. The usable resources
PEACE, JUSTICE
AND STRONG
INSTITUTIONS

demand. are treated and turned into briquettes to be used


PARTNERSHIPS
FOR THE GOALS
as fuel, which Sanivation then sells at a lower price
Furthermore, adequate hygiene and sanitation is than charcoal.
severely lacking in Kenya and other par ts of devel-

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CHALLENGE
To solve two pressing issues
in Kenya: dependence on
charcoal, and inadequate
sanitation facilities.
“ THIS INNOVATIVE
IDEA NOT ONLY
PROVIDES SAFE,
AFFORDABLE AND
OPPORTUNITIES FOR SCALE
Human waste has the potential to create elec-
tricity for 138 million homes and become a US

CLEAN ENERGY
$9.8 billion market globally. The portability and
modularity of the container-based model may en-
able governments to finance improved sanitation

(SDG 7), IT UNLOCKS


in informal settlements without the political issues
that come along with piped infrastructure. The
combination of income from user fees, sales of
recovered resources and government investment
could provide a new sustainable financial model.
A WHOLE NEW
MARKET.”
Sources and further information
• http://www.sanivation.com
• demandasme.org/waste-not-addressing-the-fuel-
and-sanitation-need
• solutions.sustainia.me/solutions/toilet-service-
offers-sanitation-and-clean-fuel
• www.businessinsider.com/kenya-startup-turns-
poop-into-fuel-2016-6
• www.who.int/water_sanitation_health/
monitoring/jmp-2015-key-facts/en

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

The challenges presented by the 17 Global Goals health, nutritional food, drinkable water and oth-
are all challenges that impact business and capital. er basic needs require adequate financing, entre-
Rather than seeing them as problems or growth preneurship, and creative business thinking. They
limiters, companies should see the challenge to need scale as well, since the scale of the business
meet the Goals and Targets as a huge growth op- solutions must meet the scale of the Global Goals.
portunity. Business, capital, and the SDGs are mu-
tually dependent and businesses need the goals as
much as the goals need businesses. PUTTING THE SDGs AT THE
HEART OF CORPORATE STRATEGY
DEMANDS A CHANGE IN MINDSET.
“BY REDUCING THEIR
CARBON EMISSIONS, Shifting the business model and mindset to meet
BUSINESSES ARE SAVING the SDGs and present sustainable and valuable
MONEY, THEY’RE BUILDING solutions socially, environmentally as well as fi-
nancially is, in fact, a model that creates prosper-
THEIR BRANDS, AND THEY’RE ous oppor tunities. Orientation towards solving
ATTRACTING CONSUMERS the Global Goals creates an innovation driver for
THAT WANT TO BUY FROM companies. It enhances the repurposing of the
company to be an innovative par t of global solu-
BUSINESSES THAT ARE tions, instead of a contributor to global problems.
ACTING IN THE MOST It means companies will reinforce themselves
SUSTAINABLE WAY.” to create enduring, sustainable business models
and thus strengthen their existence. Directing
JOHN HOLDREN, FORMER SENIOR SCIENCE AND your business and capital towards the Global
TECHNOLOGY ADVISOR TO PRESIDENT OBAMA 13 Goals is ensuring your company’s own prosper-
ous future.

While some governments are working towards USING THE GLOBAL GOALS AND
achieving the goals, business can have an even THE TARGETS AS A COMPASS TO
greater impact since business transcends borders
and therefore has the power and potential to ac-
DIRECT SUSTAINABLE BUSINESS
celerate the SDGs. Business is also at the hear t of CASES IS PROVING PROFITABLE
creating innovative solutions for the SDGs. For in- FOR MANY COMPANIES ALREADY.
stance: reducing food waste or using more energy
efficient alternatives for lighting and fuel are chal-
lenges that business can tackle. But innovations Recognizing the many challenges faced through-
and scaling up solutions needs capital. out the world, and using the Global Goals and the
Targets as a compass to direct sustainable busi-
ness cases is proving profitable for many compa-
CAPITAL SUPPORT nies already, and is having a positive impact on
Private capital is needed to suppor t business in people in all par ts of the world. For example, the
tackling the global challenges and to finance the global retailer Gap, Inc. concentrates its effor ts on
innovations that will facilitate the solutions. The SDG 5: Gender equality, and addresses several
additional annual investments needed add up to Targets within this Goal that not only enhance
US $2.5 trillion, whereas only $1.4 trillion is on the company’s position but also hold potential to
the table right now (See Figure 6). Solutions for unlock new markets (See Case 5). The McKinsey

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2.1  THE CALL TO BUSINESS AND CAPITAL

3.9 1.4 Figure 6 Estimated


Investment Gap in Key
SDG Sectors 2015 –
2030 (trillions of USD,
annual average)14
2.5

Total annual Current annual Total investment gap


investment needs investment

Global Institute estimates that the market impact woman must work 15 months or more to earn
of products and services that focus on gender the equivalent amount.16 The missing 20 cents or
equality could add up to US $28 trillion, or 26% of 20% adds up.
annual global GDP by 2025.15 Increasing the reach
of these products and services will have three By focusing on the Global Goals, companies are
types of impact: Social, Consumer, and Market. directing their business behavior towards creating
Not only is achieving gender equality an essential sustainable workforces and sustainable markets.
human right – it also has the ability to unleash Business and capital, when assuming the respon-
a range of positive economic and development sibility as a force for good, create many exciting
outcomes. Although women and girls have made prospects and oppor tunities for growth and en-
significant gains in the past decade in terms of durance. Innovation, technological advances, and
education, health, economic participation, and using the SDGs as drivers are propelling business-
political leadership, gender equality continues to es and capital investors on a new trajectory. This
lag in many critical areas. This prevalent inequality new direction will benefit people and the planet,
comes at the cost of substantial and unrealized and will benefit the company’s bottom line in the
social and market benefits. In the majority of the process. The Sustainable Development Goals are
world’s wealthiest countries, women are still not truly the world’s greatest challenge and biggest
paid the same amount as men, essentially leading oppor tunity. The response by business and capital
to less buying power. In the U.S., for example, on to this has the potential to make transformation-
average a woman makes 80 cents for every dollar al change that will set the stage for a sustainable
a man earns. What a man makes in 12 months, a future.

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05 NO
POVERTY
IMPACT SDGS
CASE NO. GAP, INC.
Accelerating Gender Equality
Introducing and enhancing training and
education for female garment workers
Case applied in: Asia, Latin America and
Caribbean
Headquarters located in: USA
www.gapinc.com

ZERO
HUNGER SDG 1 GAP INC. IS COMMITTED TO A CULTURE OF EQUALITY, WHERE EVERYONE
No Poverty HAS THE OPPORTUNITY TO STAND AS EQUALS AND THRIVE.
Employ more women to
GOOD HEALTH
AND WELL-BEING ART PECK, PRESIDENT AND CEO OF GAP INC.
improve gender equality, which
is a global issue that Gap
QUALITY

believes is a precondition to
EDUCATION

the elimination of poverty.


GENDER
EQUALITY

SDG 5 Gap, Inc. operates with a strong stance on busi- The P.A.C.E. program has not only empowered
CLEAN WATER
AND SANITATION Achieve gender equality nesses needing to recognize the oppor tunity to thousands of women, it has also had a strong busi-
and empower all women enhance performance and returns by having more ness impact by reducing turnover and absentee-
and girls diversity in their workforce. Gap shows how gen- ism, improving work efficacy, higher productivity
der equality can pay dividends both for their core and retention rates. In Cambodia, for example,
AFFORDABLE AND
CLEAN ENERGY

Provide equal opportunity


business, as well as for society at large. It is the retention rates were 66% higher for P.A.C.E. par-
to 50,000 women in the
DECENT WORK AND first and only Fortune 500 Company to disclose ticipants than other workers. And at a factory in
workplace, marketplace and
ECONOMIC GROWTH

and validate its pay equality practices. Women India, productivity was 15% higher for P.A.C.E.
community in 12 countries, make up 73% of the Gap, Inc. workforce, including par ticipants. GAP has progressively expanded the
empowering women with store managers and the CEO’s leadership team. program from focusing solely on the women who
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

the skills and confidence to In 2014 Gap, Inc. displayed unprecedented trans- make its clothes to also include women in sur-
REDUCED advance at work and at home. parency by releasing data confirming that wom- rounding communities, and is also committed to
en and men in their workforce are paid equally develop new curricula and pursue licensing agree-
INEQUALITIES

across all company facilities. ments with NGOs, corporations, and schools to
SUSTAINABLE CITIES
AND COMMUNITIES deliver tailored training to more than 500,000
The Gap Inc. P.A.C.E. program (Personal Ad- women and adolescent girls in geographies and
RESPONSIBLE
vancement and Career Enhancement) empowers sectors beyond those where the company has a
women with the skills and confidence to advance direct interest. The expansion of P.A.C.E. in work-
CONSUMPTION
AND PRODUCTION

at work and at home. Designed as an education place and community settings will allow women
CLIMATE
ACTION program offering life-skills classes to female gar- and girls to acquire the confidence, life skills, and
ment workers, the curriculum provides 80 hours technical abilities needed to enhance their ca-
of instruction in nine subject areas including reer oppor tunities and socio-economic mobility.
communication skills, financial literacy, time and As a broad success, P.A.C.E. reveals par ticipants’
LIFE
BELOW WATER

stress management, and problem solving and de- significant gains in efficiency, along with improved
LIFE
ON LAND
cision-making. Since GAP launched P.A.C.E. in cost savings and personal benefits to the work-
2007, more than 50,000 women in 12 countries ers. Through the expansion of the program, there
have participated in the program. Overall, par tic- have been improvements in attendance and pro-
ipants reporting higher self-esteem rose by 49% ductivity as well as a general boost in confidence
PEACE, JUSTICE
AND STRONG
INSTITUTIONS

by the end of the program, while women repor t- among par ticipants. P.A.C.E. has generated a pos-
PARTNERSHIPS ing improved self-efficacy and belief in their ability itive return on the company’s investment, with an
FOR THE GOALS

to produce desired results increased by 150%. estimated total value of US $52 million.

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CHALLENGE
To improve gender equality
in company operations and
beyond; relieve financial strain
for women by equalizing pay
structures and improving
women’s position in the
“ GAP SHOWS
workforce.
HOW GENDER
EQUALITY CAN
PAY DIVIDENDS
OPPORTUNITIES FOR SCALE
In September 2015, GAP announced a com-
mitment to expand their program to reach one

BOTH FOR THEIR


million women around the world by 2020. Their
dedication to end discrimination against women is
represented at the very highest levels with actions

CORE BUSINESS,
such as CEO, Art Peck, signing the UN Women’s
Empowerment Principles. P.A.C.E is now being of-
fered to global partners and peer corporations
in an effor t to broaden its reach and impact for
women’s empowerment
AS WELL AS
FOR SOCIETY AT
Sources and further information
• http://www.businessfor2030.org/goal-5-achieve-
gender-equality http://www.gapinc.com/

LARGE.”
content/gapinc/html/media/pressrelease/2016/
med_pr_epd_41116.html
• http://sdg.responsiblebusiness.com/wp-content/
uploads/sites/2/2016/11/Detailed-Briefing_
SDG5.pdf
• http://www.gapincsustainability.com/people/
pace-changing-one-million-lives
• https://hbr.org/2017/03/how-companies-can-
champion-sustainable-development
• https://adressed.gapinc.com/blog/2017/3/22/
gap-inc-history-of-equality-equal-pay-day
• https://www.clintonfoundation.org/clinton-
global-initiative/commitments/pace-academy-
learning-programs-advance-women-and-girls
• http://www.gapinc.com/content/gapinc/html/
media/pressrelease/2016/med_pr_gapinc_
catalyst_2016.html

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

2.2 THE NEW MEANING OF to develop principles, guidance and a measure-


ment framework to help companies achieve net
positive impact and plan for long-term success.
GROWTH
The SDGs suppor t a new vision for growth. In RECONNECTING: GROWTH AND IMPACT
recent times, growth has had quite a negative Keep in mind that the disconnection of growth
connotation, as the growth of companies, and and negative impact is not the final destination
economic growth in a wider sense, meant a neg- of the journey. It is a focal point along the way.
ative impact on our world: more greenhouse gas- After disconnecting growth and negative impact,
ses, more resources used, more destruction and we must then connect growth to positive impact
more pollution. But now, growth is taking on a in order to reach real sustainable growth.
new meaning, accelerated and fur ther clarified
by the SDGs. Sustainable growth, positive impact,
and responsible corporate ambition have entered WE MUST DISCONNECT GROWTH
the stage of world business. While keeping a keen FROM NEGATIVE IMPACT
eye on the Goals – and the ambition to meet
the SDGs by 2030 – businesses are concentrat-
AND RECONNECT GROWTH
ing on not only minimizing their negative impact TO POSITIVE IMPACT ON OUR
but creating positive impact as well. Thus, we must GLOBAL GOALS. THEN WE CAN
disconnect growth and negative impact, a connec-
tion that has existed since the industrial revolu-
SPEAK OF GROWTH AS A FORCE
tion. And we must latch on to a new revolution FOR GOOD.
– one of positive impact for people and planet.
Thanks to digital and technological development Carpet manufacturer Interface changed course
and the repurposing of business endeavors, we years ago to create a positive impact with its
have an unprecedented oppor tunity to attach growth (See Case 6). They are eliminating their
a new meaning to growth, namely: sustainable negative impact and creating positive impact as
growth ensures societal and environmental ben- they strive to put more back into society and
efits and an enduring business. the environment than they take out, like becom-
ing CO2 positive by developing more renewable
energy than they need themselves and therefore
NET POSITIVE IMPACT being in a position to supply energy to others in
“Net Positive is a new way of doing business their surroundings. In these cases, growth is good.
which puts back more into society, the envi- The examples show that growth in this respect
ronment and the global economy than it takes makes a positive impact on the world. We can
out.”17 Trailblazing companies are embracing the then truly speak of business as a force for good,
ambition to “double the business but halve the and we can look at growth as something that
impact.” This can mean that companies increase contributes to the world rather than takes from
their positive impact on some goals, and at the it. As Jay Gould, CEO of Interface clearly states:
same time decrease their negative impact on oth- “Business is the most powerful entity in the world
ers. Becoming net positive requires organizations and with power comes responsibility. To have a
to be ambitious and plan for long-term success. purpose-driven business you need to pinpoint the
They have to go beyond risk avoidance and in- crossroads between what the world needs and
cremental improvements and star t to innovate. where your company excels. At Interface, we have
In 2013, Forum for the Future worked with The been committed to addressing environmental
Climate Group and WWF to convene the Net issues for more than two decades, and are ap-
Positive Group (NPG). This collaboration set out proaching our Mission Zero goal to eliminate any

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2.2  THE NEW MEANING OF GROWTH

negative impact on the environment by 2020. We should be understood not as an objective in itself,
are now focused on becoming a restorative busi- but rather as a means to an end by providing de-
ness through our Climate Take Back mission as we cent livelihoods, increasing security and improving
work to address global warming. By transparently the welfare of all citizens. If growth does not de-
discussing our regenerative approach our hope is liver these, it has limited value from a develop-
it will inspire other businesses to challenge their ment perspective.”18 The value of growth is the
own Sustainable Development Goals and contri­ creation of value for society and the environment,
bute to creating a climate fit for life.” and cer tainly not the exploitation of the world’s
assets. Exploitive growth with insular financial gain
In the coming decades growth must, at the very can no longer be tolerated and will, in fact, lead
least, be disconnected from negative impact as- to its own demise eventually as it is simply not
sociations and connected instead to positive im- sustainable. Growth as a force for good, positive
pact. This transition is necessary to ensure that we impact, and scaling up sustainable activities is the
reach our goals in 2030. As the Institute for Hu- new meaning of growth.
man Rights and Business so aptly puts it “Growth

Greenbiz reports that several companies have directly or indirectly star ted developing
approaches towards net positive impact.

¾ Rio Tinto: one of the first companies to take on net positive impact approach on bio-
diversity. The company’s framework focuses on avoidance, mitigation and offsetting the
negative impacts of its operations. This goal set a benchmark within the mining industry
and with other extractive sectors that other companies are now aspiring to emulate.
¾ The Consumer Goods Forum, an independent global network of retail and manufac-
turing companies, is showcasing its ability to develop standard approaches with mem-
bers through its intention to mobilize its collective resources to help achieve zero net
deforestation by 2020.
¾ Puma is developing an Environmental, Social and Economic profit & loss statement that
will assess the benefits of their business against their environmental and social costs.

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06 NO
POVERTY
IMPACT SDGS
CASE NO. INTERFACE
Mission Zero; Net-Works; Climate
Take Back
Moving from negative impact to positive impact
Case applied in: Global
Headquarters located in: USA
www.interface.com

ZERO
HUNGER SDG 7 WE WANT TO CREATE A CLIMATE FIT FOR LIFE.
Affordable and Clean JAY D. GOULD, PRESIDENT AND CEO INTERFACE
GOOD HEALTH Energy
AND WELL-BEING

87% of the energy used at all


manufacturing comes from
QUALITY

renewable sources.
EDUCATION

GENDER
EQUALITY
SDG 8
Decent Work and Economic Mission Zero is an initiative that Interface star ted ties in the developing world are almost entirely
CLEAN WATER
AND SANITATION Growth over 20 years ago. It represents their promise to reliant on the ocean for their livelihood. Interface
Added another revenue stream eliminate any negative impact their company may aims through the Net-Works model to empower
to fishing businesses by have on the environment by the year 2020, which these communities to better protect and manage
is the condition to become restorative. Since they their local marine resources and to diversify their
AFFORDABLE AND
CLEAN ENERGY

buying their used nets.


started this initiative, they have reduced their livelihoods so they are not solely reliant on fish-
greenhouse gas emissions by 95% (SDG 13), are ing (SDG 8). Building on the trust that they have
SDG 12
DECENT WORK AND
ECONOMIC GROWTH

obtaining 87% of their energy from renewable developed in these regions, Interface is able to
Responsible Consumption sources (SDG 7), are producing their products explore and develop other domains such as pro-
and Production with up to 58% recycled and bio-based materials viding banking and financial services to the fishing
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

Recycled and bio-based and have reduced their carbon footprint by 60% communities, many of whom have limited access
REDUCED materials used globally is (SDG 12). to financial facilities.
INEQUALITIES

58% and the average carbon


Net-Works is a cross-sector initiative that Inter- Climate Take Back is Interface’s newest endeavor
footprint has been reduced by
SUSTAINABLE CITIES
AND COMMUNITIES face began in 2012, when they joined the Zoo- to make a positive impact and take steps to re-
60% compared to the 1996 logical Society of London (ZSL) to form a unique verse climate change. Interface sees the SDGs as
baseline. partnership to source material in a way that the concrete building blocks for a continuation of
RESPONSIBLE

would benefit communities and the environment, what it already star ted to do in the 1990s. Cli-
CONSUMPTION
AND PRODUCTION

SDG 13 and develop a new model of community-based mate Take Back’s positive mission is based on 4
CLIMATE
ACTION Climate Action conservation, one that would bring immediate principles and points of attention:
benefits to local people. Net-Works is an inno-
GHG emissions have been
vative business that empowers people in coastal 1. Live Zero: Making sure no more carbon is
reduced by 95% compared
communities in the developing world to collect put into the atmosphere.
LIFE
BELOW WATER

with a baseline year of 1996. and sell discarded fishing nets, thereby removing 2. Love Carbon: Using the carbon that is al-
LIFE these nets from the ocean where they wreak hav- ready in the atmosphere as a building block
SDG 14
ON LAND

oc with marine life (SDG 14). The nets are sold to make products and resources.
Life below water into the supply chain and recycled into yarn to 3. Let Nature Cool: Running their business in
make carpet tile. Since 2012, over 125 tons of such a way as to not interfere with nature’s
PEACE, JUSTICE

Reduced pollution in the


AND STRONG
INSTITUTIONS

oceans by repurposing old nets that would otherwise have been waste have ability to cool itself.
been collected through Net-Works. For context, 4. Lead the Industrial Re-revolution: Sharing
fishing nets that would
PARTNERSHIPS
FOR THE GOALS

approximately 640,000 tons of fishing nets are what they are learning, and have learned, to
otherwise have been discarded wasted in the world’s oceans. Coastal communi- change how business is done.
into the waters.

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CHALLENGE
To eliminate any negative
impact Interface’s companies
may have on the environment
by the year 2020 and move
towards creating positive
impact.
“ CLIMATE TAKE BACK
IS INTERFACE’S
NEWEST ENDEAVOR
TO MAKE A POSITIVE
OPPORTUNITIES FOR SCALE
Interface will scale up Mission Zero by extending
the goals to suppliers in their Suppliers to Zero

IMPACT AND TAKE


initiative. In keeping with the vision of Interface
Founder, Ray Anderson, that business innovations
should give back to the planet, Interface has taken

STEPS TO REVERSE
steps to create ProofPositive, a carbon-negative
carpet tile. Whilst in its infancy, the ProofPositive
tile concept is the first step on the Climate Take
Back journey to commercialize products that use
bio-based materials and reverse climate change.
CLIMATE CHANGE.”
Sources and further information
• http://www.interface.com/US/en-US/campaign/
climate-take-back/Climate-Take-Back
• https://www.youtube.com/watch?v=4JcfZAjS9Jk
• http://www.thenaturalstep.de/about/interface-
case-study/
• Interface Global, 2015 Annual Report
• https://www.greenbiz.com/article/inside-
interfaces-bold-new-mission-achieve-climate-
take-back
• http://www.interfaceglobal.com/Sustainability/
Our-Progress/AllMetrics.aspx
• http://www.interface.com/US/en-US/campaign/
negative-to-positive/Climate-Take-Back?cm_
mmc=social-organic-_-2016June-_-GreenBiz-_-
mission#395291081
• https://issuu.com/sustainia/docs/
sustainia100_2016/158
• www.net-works.com
• The Global Findex Database 2014 World Bank
• Fishing’s Phantom Menace (2014)

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

2.3 THE SHARED VALUE The trailblazing researchers and business strat-
egists Michael Por ter and Mark Kramer first in-
troduced shared value in an ar ticle they wrote
MODEL for the Harvard Business Review in 2006 and later
expanded upon the concept in 2011 with their
Building on the ambition to move from reducing ar ticle: “Creating Shared Value: Redefining Capi-
negative impact to creating a positive impact, the talism and the Role of the Corporation in Soci-
model of Shared Value has become the current, ety.”20 They defined the concept of shared value
business-driven, sustainable model pervading sus- as “policies and operating practices that enhance
tainable global business and capital. The shared the competitiveness of a company while simulta-
value model suppor ts a positive impact for so- neously advancing the economic and social con-
ciety, the environment, finance, and for all par ties ditions in the communities in which it operates.”
involved. It is characterized by the principle: Doing
well and doing good are not mutually exclusive.
Meaning financial success does not need to come
at the expense of society or the environment. SHARED VALUE IS:
And creating a positive impact on society and the
environment does not need to come at the ex-
pense of profit. 1. Reconceiving Products and Markets
to meet societal needs and address
unserved or under-served customers.
“SHARED VALUE IS 2. Redefining productivity practices to
better utilize resources, employees, and
BASED ON “POLICIES AND business par tners.
OPERATING PRACTICES 3. Enabling Local Development by im-
THAT ENHANCE THE proving the available skills, supplier base,
and suppor ting community institutions
COMPETITIVENESS OF
to boost productivity, innovation, and
A COMPANY WHILE growth.
SIMULTANEOUSLY
ADVANCING THE ECONOMIC
Companies of all sizes throughout the world
AND SOCIAL CONDITIONS IN are embracing shared value. At the 2017 Shared
THE COMMUNITIES IN WHICH Value Summit, over 400 leaders from companies,
IT OPERATES.” 19 nonprofits, and governments came together to
help shape strategies and discuss innovative ideas
MICHAEL PORTER AND MARK KRAMER that will accelerate this model. These companies
and many others are recognizing the benefits of
shared value and are ready to move forward away
Financial, societal and environmental benefits can from negative impact avoidance and toward posi-
be achieved simultaneously. In fact, at the core of tive impact creation.
shared value are societal and environmental is-
sues which serve as the drivers in propelling prof- Nestlé is one such company that has made shared
itable shared value business cases across a wide value a priority in their business strategy and has
spectrum of companies and industries. In this re- embedded its principles across all par ts of their
gard, shared value is the ideal business model to business, listing an impressive 169 examples
support the realization of the Sustainable Devel- on their website of how they are creating shared
opment Goals. value.21

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2.3  THE SHARED VALUE MODEL

Figure 7 CSR vs. CSV


Based on multiple sources
CORPORATE SOCIAL RESPONSIBILITY CREATING SHARED VALUE
CSR CSV

Adressing societal needs and challenges Adressing societal needs and challenges
by giving back + doing no/less harm with a business model

Doing good Doing well by doing good

Discretionary or in response to Integral to competing: propels


external pressures, no relation with competitive advantage in new,
competitiveness unlocked markets

Separate from profit maximizing,


Integral to profit maximizing
philanthropy

Agenda determined by external


Agenda company, sector and market
factors and often personal or
specific
departments’ preference

No real influence on innovation, other Initiates radical innovation and


than incremental incremental innovation at scale

Strategical priority, at the heart of


Operational and tactical issue
business

Scalable, but from cost perspective Scalable, with profit increasing

Seen as costs and legitimization of Seen as commercial opportunities


operations for investors for investors

Companies can indeed contribute in a meaning- comes by 10% to 20%, shared value investments
ful way. For large food and beverage companies can raise their incomes by more than 300%.”22
such as Nestlé, shared value involving farmers in Lifting people from pover ty is one way that cre-
developing countries can have substantial impact ating shared value can help achieve the Global
(See Case 7). Porter and Kramer have assessed Goals. Shared value business cases often touch
the impact of shared value in agricultural cases, many Global Goals at the same time, as illustrated
saying, “while Fair Trade can increase farmers’ in- by the following Nestlé case.

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07 NO
POVERTY
IMPACT SDGS
CASE NO. NESTLÉ
Nespresso - The Positive Cup
Sustainably Sourced Coffee
Case applied in: Europe, South America,
Africa
Headquarters located in: Switzerland
www.nestle-nespresso.com

ZERO
HUNGER SDG 8 OUR AIM IS TO CREATE MORE VALUE FOR FARMERS, BUSINESS PARTNERS AND
Decent Work and Economic CONSUMERS, WHILST AT THE SAME TIME CARING FOR THE ENVIRONMENT.
GOOD HEALTH
AND WELL-BEING
Growth
THROUGH OUR ENGAGEMENT [IN SUSTAINABILITY] WE AIM TO SHOW
Engage 63,000 farmers in
THE IMPORTANT ROLE THE PRIVATE SECTOR CAN PLAY.
11 countries, representing over
QUALITY
EDUCATION
82% of Nestlé’s total coffee
JEAN-MARC DUVOISIN, CEO NESTLÉ NESPRESSO SA
supply, growing the share of
“AAA Sustainable Quality”
GENDER
EQUALITY

certified coffee volume from Nestlé’s ambitions are to create shared value by ity beans, higher yields, and higher revenues while
CLEAN WATER
AND SANITATION zero to 41% in 8 years. having a positive impact on society and the en- leaving a smaller environmental footprint. (SDG
vironment, improving farmer welfare, and driving 11) This shared value strategy helps these bean
SDG 11 environmental sustainability in coffee farming and farmers improve growing techniques and farm
consumption. They believe that in order for their management and become more resilient.
AFFORDABLE AND
CLEAN ENERGY

Sustainable Cities and


business to prosper in the long term, so too must
Communities
DECENT WORK AND the communities with which they work. Nestlé Nestlé’s strong stance on innovation has sup-
Help develop thriving, resilient
ECONOMIC GROWTH

describes itself as a “catalyst for change going be- por ted volume growth, with 30% of sales coming
communities and improve yond its own operations.” from products introduced or renovated in the last
30 million livelihoods in three years. By creating efficiencies and reducing
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

communities connected to Nestlé has set 42 commitments to creating waste, together with focusing on innovation in re-
REDUCED Nestlé’s business activities. shared value. Their commitments are linked to sponsible production and consumption (SDG 12)
three overarching ambitions: “Enable healthier Nestlé works towards creating a positive impact
INEQUALITIES

and happier lives; Help develop thriving, resilient on the working conditions in areas where they get
SUSTAINABLE CITIES
AND COMMUNITIES
SDG 12 communities; And steward resources for future their coffee beans. For example, Nestlé Nespres-
Responsible Consumption generations.” The company’s ambitious goals are so is creating jobs and economic growth (SDG 8)
and Production rolled into The Positive Cup initiative that ad- by pursuing innovative solutions to farmer wel-
RESPONSIBLE

Create efficiencies and reduce dresses these commitments. As par t of this vision, fare, including the expansion of their AAA Farm-
CONSUMPTION
AND PRODUCTION

waste, Nestlé employed their subsidiary Nespresso set new goals in the er Future Program through a retirement savings
CLIMATE
ACTION new techniques that save an areas of coffee sourcing and social welfare. In this plan for farmers in Colombia, and the provision of
regard, they are concentrating effor ts in a few key training and engagement of 63,000 farmers across
estimated 144 million gallons
areas - aluminum sourcing, resource use, product 11 countries. Nestlé Nespresso also trained a
of water annually.
disposal, and resilience to climate change – which team of over 300 highly skilled agronomists, and
LIFE
BELOW WATER

have become impor tant drivers in the compa- they created shared value for their value chain
LIFE
ON LAND
SDG 17 ny’s commitment to play its par t in achieving the par tners with an extensive agroforestry program,
Partnerships for the Goals SDGs. and land management training initiatives in the
Leverage investments through AAA regions.
Nestlé puts these objectives into place with their
PEACE, JUSTICE

a series of public-private
AND STRONG
INSTITUTIONS

partnerships channeling US many shared value projects. One example from Additionally, in 2015, the Nespresso Sustainabil-
their 169 projects is how they are “Improving the ity Innovation Fund was launched to initiate and
$87 million into regions where
PARTNERSHIPS
FOR THE GOALS

skills, opportunities, well-being and productivity of attract blended financing solutions – to find new
AAA coffee is sourced. employees, contractors and suppliers” by working financial mechanisms to interest investors in so-
with the coffee bean farmers to provide training to cio-environmental projects that result in positive
improve their practices. This leads to higher qual- impacts (SDG 17).

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CHALLENGE
To deliver greater value for
society and the environment
including the use of only 100%
sustainably sourced coffee,
100% sustainably managed
aluminum, and 100% carbon
“ NESTLÉ BELIEVES
efficient operations by 2020.
THAT IN ORDER FOR
THEIR BUSINESS
TO PROSPER IN
OPPORTUNITIES FOR SCALE
Nestlé is committed to building on the Nespresso
– Positive Cup program, expanding the program

THE LONG TERM,


in Ethiopia, Kenya and South Sudan, investing over
CHF 15 million in these countries over six years,
and 500 million in the program overall.

Sources and further information


• https://www.nestle-nespresso.com/sustainability/
SO TOO MUST THE
the-positive-cup
• https://www.nestle.com/asset-library/
documents/library/documents/corporate_
COMMUNITIES WITH
WHICH THEY WORK.”
social_responsibility/nestle-in-society-summary-
report-2016-en.pdf
• Nestle In Society: Creating Shared Value and
Meeting Our Commitments, 2016 report
• https://www.nespresso.com/positive/us/en#!/
sustainability/commitments/coffee
• https://www.nestle-nespresso.com/asset-library/
documents/nespresso-positive-cup-csv-report-
interactive.pdf
• http://www.carbon49.com/2016/06/
nestle-creating-shared-value-environmental-
sustainability/
• http://www.nestle.com/csv/what-is-csv
• http://www.eco-business.com/opinion/shifting-
markets-and-mindsets-financing-the-sustainable-
development-goals/

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

Although the awareness of shared value and its CORPORATE SOCIAL RESPONSIBILITY TO CREATING
implementation into business practices has been SHARED VALUE
growing, it still needs to become common prac- The emergence of shared value was based on
tice. Mark Kramer sees potential in the SDGs. Por ter and Kramer’s observance that, despite the
In an interview, he said: “We look at the SDGs incorporation of Corporate Social Responsibility
and say, ‘There is a market here.’ You can actually (CSR), the communities in which companies op-
quantify the market potential of for-profit busi- erated often felt little benefit from their growth
ness to meet the needs of the SDGs. Getting and profit. Instead, people tended to perceive that
business to understand that this is about new corporate profits came at their expense. The evo-
markets, new business oppor tunities, and new lution of CSR was a reaction to this consumer
business models – instead of charity or the man- perception and a move in the direction to behave
date of the development agencies, the govern- more responsibly. Over the years, there has been
ment, and the NGOs is a fundamental shift that a gradual acceptance of CSR which “promotes a
can be very empowering.”23 vision of business accountability to a wide range of
stakeholders, besides shareholders and investors,
and the key areas of concern are environmental
BUSINESS CASES THAT CREATE protection and the wellbeing of employees, the
PROFIT, WHILE ALSO CREATING community and civil society in general.”25 The un-
derlying idea is that “corporations can no longer
VALUE FOR STAKEHOLDERS, act as isolated economic entities operating in de-
SOCIETY AND THE ENVIRONMENT, tachment from broader society.”
MOVE THE WORLD CLOSER TO
SOLVING THE SDGS; THAT IS THE SHARED VALUE IS A SYNERGY OF
SHIFT WE NEED. POSITIVE IMPACT ON SOCIETY,
Mark Kramer explains the link between business,
THE ENVIRONMENT, AND THE
the shared value model, and the SDGs as “a new COMPANY’S BOTTOM LINE.
revenue model for business.”24 Business cases that
create profit for a company’s bottom line, while CSR is cer tainly aimed in the right direction, but
also creating value for stakeholders, society and has often manifested in philanthropic endeavors
the environment, move the world closer to sol- with companies making donations to wor thy
ving the Sustainable Development Goals; that is charities or suppor ting local social clubs and the
the shift we need. like. While these are wor thy and admirable en-
deavors, making societal contributions and cre-
This shift, this Trillion Dollar Shift, is as much about ating impact that benefit communities, CSR has
mindset as it is about business and capital strate- not been embedded in the fabric of the financial
gy. Positive societal or environmental impact and model for profit. It is often viewed as an expense,
positive financial results have been considered or an investment in goodwill. Again, the concept
two separate concepts for a long time. It has been that you can have a synergetic model of both
generally accepted that you could have one or positive social and environmental contributions
the other, but not both. Shared value is all about and financial gain was not woven into this model.
having both. Shared value is a synergy of positive “The common strategy of CSR is that a company
impact on society, the environment, and the com- maximizes shareholder value, then uses some of
pany’s bottom line. It combines positive impact those profits for social good. The problem is the
and profit by creating economic value and societal first par t of maximizing shareholder value often
value at the same time. It is a sustainable model brings a cer tain level of harm to the environment,
which I am convinced will sustain us in the future. their suppliers and customers, and the local com-

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2.3  THE SHARED VALUE MODEL

munities. With shared value, a company creates nies find business opportunities in social problems.
economic value in a way that also creates social While philanthropy and CSR focus efforts on giv-
value.”26 Por ter and Kramer draw a distinction be- ing back or minimizing the harm business has on
tween the common activities related to CSR and society, shared value focuses company leaders on
their business concept of shared value.27 They ex- maximizing the competitive value of solving so-
plain that “Shared value is not social responsibility, cial problems in new and existing markets while
philanthropy, or sustainability, but a new way for achieving cost savings, talent retention and more.
companies to achieve economic success.”   With the help of NGOs, governments, and other
stakeholders, business has the power of scale to
create real change for monumental social prob-
DOING WELL AND DOING GOOD lems.”29 With this in mind, and given the very na-
IS NOW EVEN MORE FEASIBLE, ture of shared value, it has the inherent potential
of making significant headway towards achieving
THANKS TO THE GUIDING the SDGs. The Sustainable Development Goals go
FRAMEWORK OF THE SDGs AND hand in hand with this business model and pre­
THE SHARED VALUE MODEL. sent concrete objectives for shared value cases.
Providing affordable and clean energy (SDG 7) is
one of the objectives set out by the SDGs and
The difference between CSR and Creating Shared is a main driver for many energy companies that
Value (CSV) can be seen in Figure 7. recognize that the exploitation of non-rene­wable
resources is not a sustainable model for the long-
Porter and Kramer also stated that, “Not all profit term. The Italian company Enel has been a tradi-
is equal. Profits involving a social purpose repre- tional energy company with sizable coal, oil, and
sent a higher form of capitalism, one that creates natural gas assets for the past 55 years. But they
a positive cycle of company and community pros- have been utilizing the shared value model in re-
perity.” The Shared Value Initiative was launched in cent years to facilitate their transformation to a
2012 by mission-driven consulting firm FSG as a more sustainable business model. Enel is therefore
Clinton Global Initiative Commitment to Action.28 working to align long-term socio-environmental
With conferences taking place annually, this Ini- sustainability goals with its business objectives.
tiative endeavors to bring awareness to the dif- They are also responding to investor requests for
ference between shared value and CSR: “Shared green assets by broadening their capital market
value is a management strategy in which compa- offerings (See Case 8).

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08 NO
POVERTY
IMPACT SDGS
CASE NO. ENEL
Shared Value
Open Power
Case applied in: Global
Headquarters located in: Italy
www.enel.com

ZERO
HUNGER SDG 4 FOR ENEL, A SHARED VALUE APPROACH IS KEY TO OPENING NEW BUSINESS
Quality Education OPPORTUNITIES BY ADDRESSING SOCIAL AND ENVIRONMENTAL CHALLENGES
Supported 84,000 educational
GOOD HEALTH
AND WELL-BEING IN ALL PHASES OF THE VALUE CHAIN.
activities as of 2015, reached
FRANCESCO STARACE, ENEL CEO AND GENERAL MANAGER
300,000 people in 2016 with
QUALITY

projects such as Powering


EDUCATION

Education in Kenya, Ubuntu in


South Africa and scholarship
GENDER
EQUALITY

programs in Latin America. As global energy consumption increases, not only million beneficiaries by 2020 (SDG 7); promoting
CLEAN WATER
AND SANITATION
in percentage terms, but also in absolute terms, social and economic development for 1.5 million
SDG 7 over 1 billion people still have no access to en- people by 2020 (SDG 8); and providing quality
Affordable and Clean ergy, or have it to only a limited extent. It is be- education to 0.4 million people by the same year
coming increasingly impor tant to attract various (SDG 4).
AFFORDABLE AND
CLEAN ENERGY

Energy
industrial sectors and create new oppor tunities
By 2020, Enel aims to generate
DECENT WORK AND and competitive challenges, while developing the In their effor t to achieve operating efficiency and
1 kWh of electricity while
ECONOMIC GROWTH

use of renewable energy. innovation, Enel promotes global par tnerships


producing less than 350g of and suppor ts high-potential star t-ups. They have
CO2 emissions. Enel strives to give people access to affordable, selected 40 innovative star t-ups for development
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

reliable and clean energy (SDG 7) by reducing projects (SDG 17). And they have deployed Ul-
REDUCED SDG 8 energy poverty, protecting the environment, and tra-broad band to 250 municipalities (9.5 million
protecting local communities. The company is homes) in Italy.
INEQUALITIES

Decent Work and Economic


committed to promoting affordable, sustainable
Growth
SUSTAINABLE CITIES
AND COMMUNITIES and modern energy via its Enabling Electricity Decarbonizing the energy mix is being realized
Embedded shared value initiative, which will benefit three million people, with their development of renewable capacity,
throughout its value chain. mainly in Africa, Asia and Latin America. reduction of thermal capacity, specific CO2 emis-
RESPONSIBLE

Initial target of 500,000 people sions reduction, and environmental retrofitting of


CONSUMPTION
AND PRODUCTION

exceeded in 2016 with the The “Open Power” shared value model began in selected plants (SDG 7 & 13).
CLIMATE
ACTION reach of 1.1 million. New response to the need to expand the company’s
long-term presence in emerging-market coun- As of the first half of 2016, Enel applied the
target for 2020 is 1.5 million
tries. Enel has now spread this model throughout shared value methodology on 528 assets, in-
beneficiaries.
its organization as they are implementing a shared cluding plants and distribution networks, while
LIFE
BELOW WATER

value model across all business and investment amassing US $82.7 (€75.5) billion in revenue in
LIFE
ON LAND
SDG 13 strategies with four main pillars: Engaging the local 2015, and a 17% increase in net income for 2016
Climate Action communities; Engaging the people they work with; (2,570 million euros in 2016 from 2,196 million
Set several interim targets Aiming at operating efficiency and innovation; De- euros in 2015). In 2016, Enel recorded a share
carbonizing the energy mix. price increase of around 8% - 12%. 68% of the
PEACE, JUSTICE

such as <350gCO2 eq/KWh


AND STRONG
INSTITUTIONS

by 2020, and is on the way to institutional investors are long-term investors,


Enel engages the local communities by: expanding confirming the appreciation of a business model
fully decarbonizing the Group’s
PARTNERSHIPS
FOR THE GOALS

access to energy with the target to reach three which is sustainable over time.
energy mix by 2050.

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CHALLENGE
To link the business strategy
of Environmental, Social, and
Governance (ESG) to concrete
values and conduct, and
prepare for the challenge of
increased demand for energy.
“ ENEL PROMOTES
GLOBAL
PARTNERSHIPS
AND SUPPORTS
OPPORTUNITIES FOR SCALE
Enel’s targets include decommissioning of 13 GW
of fossil power plants in Italy, which is a mile-

HIGH-POTENTIAL
stone in the long-term goal to operate in carbon
neutrality by 2050. Enel will also form partner-
ships with stakeholders to provide electricity to

START-UPS.”
3 million people by 2020, assist 1.5 million people
socially and economically, increase production of
renewable energy, finance the transition to a low
carbon economy, and diversify their investor base
- targeting investments towards environmentally
conscious projects.

Sources and further information


• http://sustainability.thomsonreuters.
com/2017/02/22/executive-perspective-enel-
climate-leader-and-energy-producer/
• http://sharedvalue.org/resources/enel-
redefining-value-chain
• 2015 revenue figures from Enel 2015 annual
report
• https://www.enel.com/en/investors/a201608-
sustainability.html
• Enel Group Green Bond Framework 2016
• https://www.enel.com/content/dam/
enel-com/investors/2017/ENG_
BDS2016_20170502_4WEB.pdf

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

SHARED VALUE AS AN INVESTMENT MODEL born (See Case 9). This star t-up required funding
Creating Shared Value is not only a business model, to scale. Investors such as DBL and the Kellogg
it also serves as an investment model as investors Foundation recognize the oppor tunities in Shared
look for ways to maximize their financial returns Value Investing, and thus helped Revolution Foods
while simultaneously contributing to sustainable accelerate and scale to their present capacity of
activities. Investors utilize Socially Responsible In- generating US $130 million in revenue.
vesting (SRI) and Impact Investing, as well as Shared
Value Investing (SVI) strategies. Investment can and Although shared value practices and related in-
does hold enormous sway, and these kinds of in- vestment strategies are growing, the consumer
vestment strategies have great impact as we will impression that corporate success comes at the
explore later on in this book. Figure 9 shows how expense of communities and the environment still
investment focus can vary and how the shared prevails. It has become even stronger in the re-
value strategy inspires investors and Corporate cent economic recovery, in which rising corporate
Venture Capital to seek profitable opportunities in earnings have done little to offset high unemploy-
solving societal and environmental issues. ment, local business distress, and severe pressures
on community services.30 For this reason, it is cru-
Shared value can be incorporated in distinctive cially impor tant that the shared value model per-
ways across a range of contexts, assigning a busi- meates economic strategy. I believe, as Por ter and
ness strategy that addresses competitive position- Kramer do, that “shared value could reshape cap-
ing, profit margins as well as the SDGs. Examples italism and its relationship to society. It could also
of shared value business and investment can be drive the next wave of innovation and productiv-
found in a number of areas and sectors. An ex- ity growth in the global economy.”31 Shared value
ample from the Health sector is profiled in Case is profitable for business and investors. It is good
9 which shows how a company that has a shared business sense and at the same time helps meet
value business model and a focus on solving one the Sustainable Development Goals. It is a signifi-
of societies issues, namely the rise in obesity and cant step in the right direction, but far more needs
unhealthy diets that are fed to US school chil- to be done. Although the shared value model is
dren, attracted investment that also focuses on the future strategy for business at the micro or
supporting businesses with a purpose. meso (sector) level, it cannot carry the necessary
shift in financial structure all by itself. We still need
In the United States, weight gain and health issues impactful system changes at the macro level, such
among children is par tly due to unhealthy food as changes to the shor t-term shareholder system,
offerings and is especially prevalent in the lunches realistic and fair pricing and tax systems, and ap-
supplied in public schools. In reaction to this so- propriate laws and legislations that facilitate the
cietal failing and to improve nutrition for young unlocking of markets. In par ts 2 and 3 of this book,
people (SDGs 2 & 3), Revolution Foods was I will discuss these points fur ther.

Figure 8 Shared Value


Maximize Socially Impact Shared Value
Investing32 Shareholder Responsible Investing Investing
Value Investing (SRI)

The fiduciary duty of Desire to invest in Business can have Opportunity to drive
investors is to focus “good” companies both economic and economic value
on economic return social purpose through social impact

Good social and Invest in entities that All companies can create
environmental performance generate social returns shared value
signals good management along with economic Shared value expands the
and mitigates risk returns opportunity set
Introduces a negative A natural extension of
screen into investment traditional investment
analysis analysis

68

TDS final Boek.indb 68 18-12-17 18:56


“ GDP IS NOT A GOOD MEASURE
OF ECONOMIC PERFORMANCE,
IT’S NOT A GOOD MEASURE OF
WELL-BEING.”

JOSEPH STIGLITZ, ECONOMIST

TDS final Boek.indb 69 18-12-17 18:56


09 NO
POVERTY
IMPACT SDGS
CASE NO. REVOLUTION FOODS
Shared value investing
Providing Healthy School Lunches
Case applied in: USA
Headquarters located in: USA
www.revolutionfoods.com

ZERO
HUNGER SDG 3 IT’S SUPER CRITICAL TO HAVE FUNDERS WHO ARE FOCUSED ON
Promote Healthy Lifestyles MISSION-BASED COMPANIES.
Serves over 1.5 million freshly
GOOD HEALTH
AND WELL-BEING KRISTIN RICHMOND, FOUNDER AND CEO REVOLUTION FOODS
prepared, healthy meals to
students across the country
QUALITY

each week; the healthy meals


EDUCATION

ensure more productive, more


attentive, better motivated and
GENDER
EQUALITY

better performing students. Two mothers, Kristin Richmond and Kirsten cards to express themselves. Revolution Foods
CLEAN WATER
AND SANITATION
Saenz Tobey, who had the professional background also caters to regional tastes, depending on the lo-
SDG 8 needed, set out to promote health and well-being cation of the schools. The company sells its prod-
Decent work and Economic within communities (SDG 3) by enhancing school uct to schools that provide free or reduced-price
lunch offerings using locally sourced, healthy alter- meal programs via federal funding, which means it
AFFORDABLE AND
CLEAN ENERGY

Growth
natives. The result was the foundation of Revolu- needs to keep costs down. It does that in par t by
Provides over 2000 jobs to
DECENT WORK AND tion Foods. cooking in a centralized kitchen and then deliver-
local inner-city residents.
ECONOMIC GROWTH

ing the meals to schools, where school employees


The company’s mission is to provide every child serve the children.
a healthy meal free of ar tificial colors, flavors,
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

preservatives, or high-fructose corn syrup. This Revolution Foods attracted impact investors. Both
REDUCED
mission is gaining traction and, with a compound DBL Investors, a San Francisco based venture
annual growth rate of 125%, Revolution Foods has capital fund management firm, and Kellogg saw
INEQUALITIES

quadrupled revenue over the past five years. It the oppor tunity for a shared value investment.
SUSTAINABLE CITIES
AND COMMUNITIES supports local economies by providing jobs to in- Kellogg invested US $5,750,000 in this small com-
ner-city employees (SDG 8) who prepare a million pany, and together with the funds invested by DBL
RESPONSIBLE
meals a week (breakfast, lunch, snack, and dinner) and other like-minded sources, Revolution Foods
across 25 cities in 10 states and Washington D.C. had the necessary capital to grow from a small
CONSUMPTION
AND PRODUCTION

Each meal costs approximately US $3 and about star t-up to a thriving company. They currently
CLIMATE
ACTION 85% of Revolution Foods’ meals reach children serve 1600 schools, generated US $130 million
who are in free or reduced-price meal programs. in revenue in 2016 – an increase of 25% from
Over 50% of the schools they serve have repor t- 2015 - and employ over 2000 people (SDG 8).
ed tangible academic improvements since star ting Revolution Foods is making a significant impact al-
LIFE
BELOW WATER

with Revolution Foods. ready and, with 100,000 public schools across the
LIFE
ON LAND
country, has the potential to scale even more. The
Revolution Foods uses ingredients that students company expects to continue its growth trajecto-
are familiar with – engineering a healthier hot dog, ry, with its dedication to providing healthy foods
for example. The company’s chefs visit classrooms and creating jobs, enabling it to create economic
PEACE, JUSTICE
AND STRONG
INSTITUTIONS

to do taste tests, providing children with colored growth and shared value.
PARTNERSHIPS
FOR THE GOALS

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TDS final Boek.indb 70 18-12-17 18:56


CHALLENGE
To promote healthy lifestyles
and change the school lunch
structure in the USA by
offering a locally sourced,
healthy alternative within
school budgets.
“ REVOLUTION
FOODS EXPECTS
TO CONTINUE
ITS GROWTH
OPPORTUNITIES FOR SCALE
There is significant potential to scale up for more
impact as there are 100,000 public schools in the

TRAJECTORY, WITH
US. The company is also moving into new mar-
kets with its newest venture which is a high-qual-
ity packaged meal competing against Kraft Food’s

ITS DEDICATION TO
Lunchables in supermarkets. They are aiming to
provide busy working parents with a quick meal
for their families without artificial colors, flavors,
or preservatives.

Sources and further information


PROVIDING HEALTHY
FOODS AND
• http://www.huffingtonpost.com/entry/
our-global-goals-need-all-businesses_
us_58a76c36e4b0b0e1e0e20aac

CREATING JOBS,
• http://haas.berkeley.edu/IBSI/ouralumni/
revolution_foods.html
• http://www.dblpartners.vc/

ENABLING IT TO
• https://www.forbes.com/sites/
geristengel/2016/07/27/revolutionizing-an-
industry-by-building-an-empire-based-on-

CREATE ECONOMIC
values/2/#2061ee6c3b72
• https://www.fastcompany.com/3039619/
revolution-foods

GROWTH AND
SHARED VALUE.”

TDS final Boek.indb 71 18-12-17 18:56


THE TRILLION DOLLAR SHIFT  MARGA HOEK

2.4 UNLOCKING SDG MARKETS traditional actors and star t-ups with innovative
disruptive business models.” Collaborations, as dis-
cussed in chapter one, between governments, busi-
AND THEIR POTENTIAL nesses, international financial institutions, the United
Nations, civil society, and academia are developing
The Sustainable Development Goals present tre- new ways of working with each other in pursuit of
mendous opportunities to unlock new markets. compatible objectives. These collaborations have
Created with a key difference from their prede- tremendous power to unlock new markets, even
cessor, The Millennium Development Goals, the the playing field for sustainable activities, and en-
SDGs were founded in consultation with repre- courage innovative solutions that pave the way
sentatives from the business community. In this for a more sustainable economy and at the same
regard, the SDGs and the associated Targets and time work towards achieving the Sustainable
Indicators are tools to be used by business to Development Goals.
shape sustainable business cases and it is widely
recognized that business is integral to achieving
Figure 9 Four Trends the Goals. As mentioned in the previous section,
Affecting Business Mark Kramer describes the fundamental shift to
Opportunities shared value and the unlocking of markets and
opportunities as being empowering. This shift is
empowering, it is exciting, and it holds enormous Demographics Income Growth
potential!

TRENDS
Changing demographics, Income growth, Techno- Technology Collaborations
logical advances, and International collaborations
are the current trends making business oppor tu-
nities compelling, according to The SDG Industry
Matrix a report produced by KPMG and Global
Compact.33 Demographically, the population in
developing regions is projected to increase from
5.9 billion in 2013 to 8.2 billion in 2050 while
the population of developed regions will remain NECESSARY CONDITIONS
around 1.3 billion. This inspires companies to look Although business is the main driver in achieving
to developing regions for potential growth mar- the Global Goals and has the means to move the
kets. Income growth is developing worldwide, world in the right direction, it cannot achieve the
and we can expect to see the bottom 40% near- shift alone. There are conditions that need to be
ly double their spending power by 2020 from met in order to create conducive environments
US $3 trillion to $5.8 trillion. This may be espe- for business to break through established models
cially visible in countries like India, Indonesia, and and constraints and facilitate this shift.
Nigeria which are seeing a robust rise in the
middle class.34 Technological innovation and its The conditions include:
pervasive implementation is helping to connect ¾ Capital and investment cohesion
to new markets and “catalyzing improved market ¾ Adapted laws and legislation
analysis, knowledge sharing, product and service ¾ Adjusted shareholder model – from
design, renewable energy sources, distribution shor t-termism to long-term strategies
models and operational efficiencies. Technology ¾ Incorporation of externalities to reflect
is also lowering market entry costs for non- real pricing

72

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2.4  UNLOCKING SDG MARKETS AND THEIR POTENTIAL

Firstly, innovative financing from both private and Lastly, if externalities are priced - such as ecolog-
public sources will be required to unlock the es- ical footprint, and social impact - and are incor-
timated US $5 to $7 trillion of annual investment porated into the accounting, new markets are
needed worldwide. According to the WEF, in de- dominant to the current ones! Pricing external-
veloping countries there is US $3.9 trillion in cap- ities, and adjusting capital strategies will be ex-
ital and business investment required annually to panded on in Chapter 4.
achieve the SDGs.35 Presently, there is US $1.4
trillion on the table, leaving a shortfall of US $2.5
trillion yearly.36 The call to capital will be discussed EMERGING OPPORTUNITIES
fur ther in Chapter 4. Using the 17 Global Goals together with the 169
Targets and 230 Indicators gives guidance and
Secondly, a new “social contract” between busi- specifics on where to look for oppor tunities. The
ness, government, and society is essential to defin- SDGs shine a light on the world’s challenges, and
ing the role of business in a new, fairer economy. the Targets make clear what solutions need to be
Law and legislation changes are often needed to sought. For example, a Danish pump manufactur-
unlock and enable SDG markets and sustainable er, Grundfos, focused their attention on SDG 6:
business. Clean Water and Sanitation, and two of the as-
sociated Targets: “By 2030, achieve universal and
equitable access to safe and affordable drinking
INVESTMENT CAN AND DOES water for all” (Target 6.1), and “Suppor t and
HOLD ENORMOUS SWAY. strengthen the par ticipation of local communities
in improving water and sanitation management”
(Target 6.b). Grundfos recognized a need in Kenya
Thirdly, the current short-term shareholder mod- for clean water and set out to provide a sustain-
el undermines sustainable strategies. A repor t able solution that adds value to the standard of
by the McKinsey Global Institute37 showed that living for people in Nairobi (See Case 10)38 and
firms focused on the long term faired significantly opens up a market for innovation including their
better than those focused on short-term results. new product, the AQtap water dispenser. Their
Long-term strategy compared to short-term busi- endeavors in Nairobi have been so successful,
ness and investment practices will be discussed in they are expanding to other developing countries,
other chapters of this book. such as India.

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10 NO
POVERTY
IMPACT SDGS
CASE NO. GRUNDFOS
AQtap Water Dispenser
Water ATMs - accessible clean water to
Nairobi’s poorest residents
Case applied in: Africa
Headquarters located in: Denmark
www.grundfos.com

ZERO
HUNGER SDG 6 WATER IS ACTUALLY IN EVERYTHING. TO SOME PEOPLE THIS MAY BE OBVIOUS,
Clean Water and BUT TO MANY IT COMES AS A SURPRISE. THIS ALSO APPLIES TO THE SUSTAINABLE
GOOD HEALTH
AND WELL-BEING
Sanitation
DEVELOPMENT GOALS. WATER IS LINKED TO 15 OF THE 17 GOALS.
Provides access to clean
MADS NIPPER, GROUP PRESIDENT CEO GRUNDFOS
drinking water to nearly
QUALITY

100,000 residents in Kenya


EDUCATION

with 40 projects that have


been implemented in the
GENDER
EQUALITY

country since 2009. In Kenya, more than 16 million people – 36% of Grundfos recognized the oppor tunity to grow
CLEAN WATER
AND SANITATION
the population – do not have access to clean their business across Africa, responding to water
SDG 11 drinking water. To solve this problem, a par tner- contamination issues (SDG 6), the stability of vul-
Sustainable Cities and ship between Grundfos Lifelink and Nairobi City nerable communities (SDG 11), and people’s in-
Water and Sewerage Company (NCWSC) was ability to access water due to violence and other
AFFORDABLE AND
CLEAN ENERGY

Communities
formed in 2015. The goal was to help Nairobi’s lo- dangers (SDG 16). Thus, Grundfos developed an
AQtap dispenser uses mobile
DECENT WORK AND cal water board improve the capacity of its water innovative water distribution channel using their
technology to provide data
ECONOMIC GROWTH

services and provide low-cost, safe drinking water recently launched AQtap water dispenser. Now,
on water consumption to the to consumers. 100,000 residents can access a water ATM, which
local water board, helping the uses the company’s AQtap technology, and pay a
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

city’s water board plan for the The lack of access was due to poor water and nominal price for their water use via mobile tech-
REDUCED amount of water needed for sewage infrastructure as well as corruption and nology provided in par tnership with Safaricom.
black market cartels that, without the structure Using this method and technology also provides
INEQUALITIES

the local population.


of public water utilities, are able to control the useful data on water consumption, which in turn
SUSTAINABLE CITIES
prices of water thereby resulting in high costs for helps the city’s water board plan for the amount
SDG 16
AND COMMUNITIES

the consumers and potential health risks because of water needed for the local population.
Peace, Justice and Strong of unregulated water sources. In 2015, water
RESPONSIBLE

Institutions consumption in the region was reduced by 2% This innovative solution has a significant impact
CONSUMPTION
AND PRODUCTION

Liberated people from the compared to 2014, and compared to 2008 the on the community by providing safe access to
CLIMATE
ACTION control cartels have had on consumption has been reduced by 34%. Assisting clean water. With this access to water, people in
local communities with water initiatives has been Nairobi are able to have a newfound independ-
water, initiated freedom to
a key factor for Grundfos in reducing water con- ence. They have the freedom to get water when
people by ensuring them
sumption while at the same time increasing access they want to without fear of danger or disease.
LIFE
BELOW WATER

access to water when they to safe drinking water not only in Nairobi, but also
LIFE
need and want it. around the globe.
ON LAND

PEACE, JUSTICE
AND STRONG
INSTITUTIONS

PARTNERSHIPS
FOR THE GOALS

74

TDS final Boek.indb 74 18-12-17 18:56


CHALLENGE
To facilitate access to clean
drinking water. Worldwide:
663 million people (1 in 10)
lack access to safe water.

“ ASSISTING LOCAL
COMMUNITIES
OPPORTUNITIES FOR SCALE
WITH WATER
INITIATIVES HAS
In the next five years, Grundfos aims to reach
2 million people worldwide, using a simi-
lar approach in places like India, Thailand and

BEEN A KEY FACTOR


Bangladesh.

FOR GRUNDFOS IN
Sources and further information
• http://www.grundfos.com/cases/find-case/
water-atms-offer-low-priced-water-to-nairobis-
poorest-residents.html
• https://sustainabledevelopment.un.org/
partnership/?p=10977
• http://magazines.grundfos.com/Grundfos/SU/
REDUCING WATER
CONSUMPTION.”
UK/GrundfosSustainabilityProgressReport2015
• http://ceowatermandate.org
• https://sustainabledevelopment.un.org/
partnership/?p=10977
• http://magazines.grundfos.com/Grundfos/SU/
COM/UK/Gmagazineno30
• http://www.grundfos.com/cases/find-case/
grundfos-lifelink-projects-in-kenya.html
• http://water.org/water-crisis/water-sanitation-
facts/

TDS final Boek.indb 75 18-12-17 18:56


THE TRILLION DOLLAR SHIFT  MARGA HOEK

Although progress has been made in recent years ecosystem services, (10) circular models in elec-
on improving access to clean drinking water, there tronics, (11) telehealth, (12) electric and hybrid
is still more to be done. As stated in a repor t pub- vehicles, (13) improving energy efficiency in non–
lished by National Geographic, “Nearly 2.6 billion energy intensive industries, (14) low-income food
people have gained access to clean drinking water markets, and (15) energy storage systems.”
in the last 25 years. That still leaves about 663
million without sanitary water.” The Millennium
Development Goals had set the target to halve IN AFRICA ALONE, SUSTAINABLE
the proportion of people without access to safe BUSINESS MODELS COULD OPEN
drinking water. The world achieved this goal in
2010. Now, in order to achieve the Goal number
UP AN ECONOMIC PRIZE OF AT
6, set in the Sustainable Development Goals – to LEAST US $1.1 TRILLION AND
“Ensure availability and sustainable management CREATE OVER 85 MILLION NEW
of water and sanitation for all”, - there is work to
do, and opportunities to explore. Africa, in par-
JOBS BY 2030.
ticular, holds great potential for new markets. At a
recent Better Business, Better World conference The shift to a shared value business model, in-
hosted by Safaricom, on February 23, 2017 the novation, and a focus on developing trends di-
commission found that across the African conti- rects businesses toward unlocking new markets
nent, there is potential for inclusive green growth and developing new ones. A leading repor t by
and development that remains untapped. In Africa John Elkington called The Breakthrough Forecast –
alone, sustainable business models could open up Market Sweet Spots 2016 to 2025 also identifies
an economic prize of at least US $1.1 trillion and areas in which markets can grow significantly or
create over 85 million new jobs by 2030.39 be unlocked. In this repor t, 21 areas (sweet spots)
are identified, namely: 3D printing, accounting,
air conditioning, biomimicry, business education,
SWEET SPOTS calming (stress reduction), clean water, construc-
Developing countries constitute more than half tion, data, drones, electric vehicles, finance, food,
of the total value of oppor tunities and new mar- genomics, geoengineering, Internet of Things, ma-
kets; US $12 trillion a year and up to 380 million terials, robotics, solar power, space, visualization.42
jobs can be generated by 2030, according to a Some of these areas coincide with the Business
landmark report launched by the Business & Sus- Commission repor t. For instance, Elkington’s
tainable Development Commission (BSDC) titled: mention of air-conditioning as one of the “sweet
Better Business, Better World.40 The 60 biggest spots” for growth, shares elements with number
SDG opportunities identified in the repor t are 3 listed above from the Business Commission
associated with four main areas, namely: food and repor t regarding improving energy efficiency in
agriculture, cities, energy and materials, and health buildings. Identifying these oppor tunities, recog-
and well-being. These “sweet spots” have the po- nizing the global trends of an expanding middle
tential to grow 2 to 3 times faster than average class and an increased demand for indoor cooling
GDP over the next 10 to 15 years. According to due to rising temperatures, and keeping the SDGs
another report by the Business Commission, Val- in mind, has given way to an innovative business
uing the SDG Prize,41 the 15 largest oppor tunities case in air-conditioning, energy use and service
are in: (1) affordable housing, (2) circular models management.
in automotive, (3) improving energy efficiency in
buildings, (4) the expansion of renewables, (5) A Singapore based company, Kaer Water and Air,
circular models in appliances, (6) risk pooling in has developed a breakthrough business model to
healthcare, (7) remote patient monitoring, (8) re- lower consumption while increasing their profit.
ducing food waste in the value chain, (9) forest Recognizing that air conditioning is a burden to

76

TDS final Boek.indb 76 18-12-17 18:56


1.3  THE SDGS: FIRST YEARS OF UNFOLDING

the environment and energy efficiency is increas-


ingly impor tant to their client base, the company
“THE FASTEST-GROWING
has created a system that alleviates the burden
on building owners of managing energy efficien- CAUSE FOR SHAREHOLDERS
cy (See Case 11). Instead of simply capitalizing IS SUSTAINABILITY.”
on an increased demand for their product, Kaer
thoughtfully implements an enduring business GEORGE SERAFEIM HARVARD BUSINESS
model that will allow them to increase their sales REVIEW 44
for the shor t and long term. Benjamin Lai, General
Manager at Kaer, stated succinctly: “Instead of try-
ing to get building owners excited about energy
efficiency, Kaer will focus on that, as we now pay markets and reach new target groups. Take for
the bill under the Kaer Water model. They can fo- example the case of GSMA and the Air tel Green
cus on their core business and leave sustainability SIM (See Case 35 Chapter 6) who developed a
targets to us.”43 mobile phone platform to bring information and
personal advice to smallholder farmers. Farmers
using the Air tel Green SIM with their mobile
BREAKTHROUGHS phones can learn about weather, crop prices, and
Technological areas such as robotization, drones, relevant news, and they can receive customized
3D printing, and the Internet of Things (IoT) are advice on smar t crop combinations, effective and
innovative breakthroughs poised for an explosion cost-efficient fer tilizers, and many other impor-
of uses in our daily lives. And with these techno- tant agricultural points. With their provision of
logical advances, there are new opportunities to this information, GSMA and their par tners tap
connect people to knowledge that was previously into the market of 500 million smallholder farm-
inaccessible. The technological breakthroughs will ers worldwide.
have unprecedented ability to break open new

77

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11 NO
POVERTY
IMPACT SDGS
CASE NO. KAER
Air-Conditioning as a Service (ACaaS)
Revolutionizing the performance of green
buildings with a breakthrough business model
Case applied in: Asia
Headquarters located in: Singapore
www.kaer.com

ZERO
HUNGER SDG 7 SIMILARLY TO OTHER PRODUCT-AS-A-SERVICE OFFERINGS LIKE SPOTIFY AND NETFLIX,
Affordable and Clean KAER AIR SPARES CONSUMERS HIGH UPFRONT COSTS AND INSTEAD ALLOWS THEM TO
GOOD HEALTH
AND WELL-BEING
Energy
SIMPLY ENJOY A SERVICE WITH BETTER PERFORMANCE, MORE FLEXIBILITY AND
Reduce energy costs by 50%.
REDUCED RISK. IN THIS CASE: AIR-CONDITIONING.
QUALITY
EDUCATION
SDG 11 JUSTIN TAYLOR, CEO, KAER
Sustainable cities and
communities
GENDER
EQUALITY

ACaaS helps make cities Kaer endeavors to assist the world in gaining easy providing this service, Kaer is responsible for all
CLEAN WATER
AND SANITATION sustainable by giving all access to the very best cooling services and tech- costs associated with running the air-conditioning
buildings access to the best nologies. No matter the size of business, or in- system including the electricity and water used by
cooling technologies and dustry sector, Kaer’s Air-Conditioning as a Service the chiller plant equipment.
(ACaaS) business model delivers indoor cooling
AFFORDABLE AND
CLEAN ENERGY

services that reduce the


to suit their customer’s needs. Kaer Air, the latest Kaer Air is a win-win business model. It lowers
energy consumed by these
DECENT WORK AND service offering from Kaer, allows building owners demand for the product it sells and delivers the
systems by 50-70%.
ECONOMIC GROWTH

to purchase air-conditioning on a consumption highest performing, most reliable air-conditioning


basis without the need to invest in, maintain or systems for its customers. Reducing this demand
INDUSTRY, INNOVATION
AND INFRASTRUCTURE SDG 12 operate any air-conditioning equipment. allows Kaer to offset the surging demand that ur-
Responsible Consumption banization brings (SDG 11). Because Kaer pays
REDUCED and Production Kaer assumes all financial and operational respon- for the electricity used by the system this model
sibility for the entire air-conditioning system to incentivizes Kaer to operate as efficiently as pos-
INEQUALITIES

Reducing the energy


deliver the ideal environment. Building owners sible (SDG 12). This incentive drives Kaer to im-
consumed by air-conditioning
SUSTAINABLE CITIES
AND COMMUNITIES simply dictate the temperature and humidity con- prove the system day after day, resulting in Asia’s
systems by 50-70%. ditions they want to achieve and Kaer will deliver most efficient systems. Getting better as time
this wherever and whenever required. This ser- goes on, Kaer Air is leading in climate action by al-
SDG 13
RESPONSIBLE

vice has no upfront cost and is provided at a fixed lowing building owners to meet their operational,
CONSUMPTION
AND PRODUCTION

Climate Action monthly fee or a pay-as-you-use rate (SDG 7). In financial and sustainability goals (SDG 13).
Buildings account for 30%
CLIMATE
ACTION

of the global energy demand


LIFE
BELOW WATER
and, in tropical climates,
air-conditioning can account
LIFE
for up to 50% of a building’s
ON LAND

energy requirements.

PEACE, JUSTICE
AND STRONG
INSTITUTIONS

PARTNERSHIPS
FOR THE GOALS

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TDS final Boek.indb 78 18-12-17 18:56


CHALLENGE
To help manage the surging
global demand for indoor
cooling that is driven by rising
temperatures and a rapidly
expanding middle class. “ BY 2100, CLIMATE
CHANGE ALONE
COULD PUSH
DEMAND FOR
OPPORTUNITIES FOR SCALE
As the climate warms, there are vast economic
and robust business opportunities for cooling

AIR-CONDITIONING
systems. Consequently, Kaer is able to expand its
markets, locations and offerings. Kaer has predom-
inantly operated in Singapore and Malaysia, yet its

UP 72%.”
potential market is spread throughout the world.
It recently moved into India where air condition-
ing use is expected to rise, already accounting for
around 40% of Mumbai’s power consumption.
Even in cooler Britain, almost 20% of total elec-
tricity used goes into air conditioning.

Sources and further information


• http://report.businesscommission.org/case-
studies/kaer-case-study
• http://www.eco-business.com/news/game-
changing-business-models-for-green-buildings/
• http://www.eco-business.com/news/how-
much-do-singapore-businesses-care-about-
sustainability/

TDS final Boek.indb 79 18-12-17 18:56


THE TRILLION DOLLAR SHIFT  MARGA HOEK

kets and business must evolve profoundly by


2025. Gender equality (SDG 5) is one area in
“WHEN WE THINK ABOUT
which such an evolution must take place. With
BREAKTHROUGHS, ONE new business oppor tunities arising due to the
WAY OF FRAMING IT IS TO catalysts for implementation of the SDGs, there is
THINK ABOUT MINDSETS, an increasing need to drive gender par ticipation
as well as women’s contribution in the workforce
TECHNOLOGIES, AND and access to education. Women and girls still lag
BUSINESS MODELS.” 45 behind men and boys in oppor tunities for social
and economic growth. For example, par ticipation
JOHN ELKINGTON
rates for women in universities in India and China
remain at a low 42 to 48%; women are likely to
spend 4.5 more years in retirement than men; and
Consider that mobile subscriptions in Africa have only 4.8% of CEOs of Global For tune 500 com-
gone from almost no subscribers in 2000 to panies are women. Accenture Strategy recently
around 900 million today.46 Mobile phones have published a repor t entitled Corporate Disruptors:
already allowed for dramatic breakthroughs in How Business is Turning the World’s Greatest Chal-
e-finance and e-health, overcoming long-standing lenges into Opportunities47 that illuminates how
gaps in access to facilities such as bank branch- gender diverse businesses are more likely to show
es and clinics. John Elkington presented reliable superior performance in the marketplace. Some
numbers in The Breakthrough Forecast showing the of the metrics validating this concept include how
market for big data applications having increased gender-diversity likely 1) increases market share,
by US $39 billion in 2015 with the forecast to as companies are 45% more likely to witness mar-
further increase to US $76 billion by 2020. A re- ket share growth; 2) grow market size, as compa-
cent report by the Global e-Sustainability Initia- nies are 70% more likely to successfully capture
tive (GeSI) and Accenture Strategy showed that new markets; 3) enhance equity, as companies are
ICT companies could realize an additional US likely to achieve 53% higher returns on equity.
$2.1 trillion in revenue by focusing on services
that lead to the achievement of the SDGs. And
there are countless other “sweet spots” in various GENDER DIVERSE BUSINESSES
markets where the ICT sector can make a real ARE MORE LIKELY TO SHOW
difference. For example, in less developed par ts
of the world, billions of people - including many
SUPERIOR PERFOR­M ANCE IN THE
farmers –still do not have access to a banking sys- MARKETPLACE.
tem. ICT is crucial to facilitating that access and
rapidly expanding the accessibility to finance as YES Bank is one such company that recognizes
well as knowledge on a large scale, as we will ex- the need to develop financial products that re-
plore in Chapter 3 ICT and Technology. spond to women’s needs. Through the expansion
of financial access and business oppor tunities, YES
promotes skill development and technology ac-
THE NEED TO EVOLVE cess for the empowerment of women. Creating
While Elkington presents many interesting sweet an employee value proposition to achieve diver-
spots to look for business oppor tunities, and sity goals, YES thereby contributes to market evo-
breakthroughs that are opening up markets and lution while also generating new business models
possibilities, he also argues that capitalism, mar- for women (See Case 12).

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“ SHARED VALUE COULD
RESHAPE CAPITALISM AND
ITS RELATIONSHIP TO SOCIETY.
IT COULD ALSO DRIVE THE
NEXT WAVE OF INNOVATION
AND PRODUCTIVITY GROWTH
IN THE GLOBAL ECONOMY.”
MICHAEL PORTER AND MARK KRAMER

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12 NO
POVERTY
IMPACT SDGS
CASE NO.
YES BANK
Say YES to Inclusive and Social Banking
Empowering women
Case applied in: India
Headquarters located in: India
www.yesbank.in

ZERO
HUNGER SDG 1 YES BANK SUPPORTS FINANCING TO WOMEN ENTREPRENEURS IN INDIA
No Poverty TO DRIVE FUTURE ECONOMIC GROWTH AND JOB CREATION.
YES LEAP reached over 1.3
GOOD HEALTH
AND WELL-BEING RANA KAPOOR, MANAGING DIRECTOR & CEO, YES BANK
million women customers
across 5,000 villages and
QUALITY

disbursed a total of US $500


EDUCATION

million in loans.
GENDER
EQUALITY

SDG 5 YES Bank reaches out to rural areas to provide local villages that make small regular contributions
CLEAN WATER
AND SANITATION Gender Equality banking services to the poor in India, which re- to a common fund. As the fund grows, money can
YES Bank offers financing to mains a highly unbanked country, with more than be lent back to group members to meet their
women in order to equalize half of the population financially excluded. In needs. While micro-finance institutions offer a
2004, Mr. Rana Kapoor left his job at a multina- lower interest rate than usuries, it is still difficult
AFFORDABLE AND
CLEAN ENERGY

gender opportunities in India


tional bank and star ted YES Bank with a vision of for women in rural villages to access credit as in-
and its LEAP program has been
DECENT WORK AND driving inclusiveness and sustainability across India. dividuals because collateral is often needed. YES
in contact with approximately
ECONOMIC GROWTH

The bank uses sophisticated financial tools and LEAP closes this gap through providing an unse-
40,000 women’s groups as adopts advanced technologies that are tradition- cured group loan to women SHGs, offering an
of 2014. ally available only to big businesses, to develop interest rate comparable to or even lower than
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

offerings for the marginalized poor (SDG 1). micro-finance institutions. The nature of SHGs
REDUCED SDG 10 also ensures that each woman involved in these
YES Bank launched the Livelihood Enhancement groups can have access to the fund when needed
INEQUALITIES

Reduced Inequalities
Action Programme (YES LEAP) in 2011 to help (SDG 10).
The Inclusion and Social
SUSTAINABLE CITIES
AND COMMUNITIES Indian women (SDG 5). Women’s economic par-
Banking division specializes ticipation, educational attainment and health and YES LEAP’s business correspondents, which in-
in serving the 600 million survival in India is lacking. Although women make clude NGOs, Self Help Promoting Institutions and
RESPONSIBLE

unbanked people India. up around half of the population, much of the small to medium size enterprises that had already
CONSUMPTION
AND PRODUCTION

talents, human capital and economic potential of established long-term and credible connections
CLIMATE
ACTION SDG 17 women remain untapped in India as women are with the SHGs, serve as an impor tant point for
still a marginalized and vulnerable group. An esti- the facilitation of YES Bank’s financial inclusion
Partnerships for Goals
mated three million women-owned businesses in services (SDG 17).
YES Bank has 42 partner
India employ over eight million people. However,
LIFE
BELOW WATER

business correspondents, with only about a quar ter of them are able to get the The program has made immeasurable impact on
LIFE
over 700 branches across financing they need to grow and create jobs. the women involved, contributing to the social
ON LAND

19 states in the country. empowerment and financial security of women,


YES LEAP provides comprehensive financial ser- as well as enabling women entrepreneurs to com-
vices, including credit, savings and micro-insurance pete with their male counterpar ts and develop
PEACE, JUSTICE
AND STRONG
INSTITUTIONS

to women Self Help Groups (SHG). These groups and grow their own businesses.
PARTNERSHIPS
FOR THE GOALS
are typically comprised of 10 to 20 women from

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CHALLENGE
To help bridge the gender gap
in India, which ranks among
the bottom 30 in gender
equality out of 142 countries
worldwide. “ THERE IS AN
INCREASING NEED
TO DRIVE GENDER
PARTICIPATION AS
OPPORTUNITIES FOR SCALE
YES Bank will continue its efforts in innovative in-
clusive and social banking – not only in relation

WELL AS WOMEN’S
to technology, but also in understanding the ev-
er-changing demands of customers. YES Bank has
set a target to double the amount of loan dis-

CONTRIBUTION IN
bursement under YES LEAP every year over the
next 3 to 5 years, aiming to reach out to as many
women as possible.

Sources and further information


• http://csr-asia.com/report/Oxfam_CSR_
THE WORKFORCE
AND ACCESS TO
Asia_17.11.15.pdf
• https://www.accenture.com/_acnmedia/PDF-4/
Accenture-Strategy-Corporate-Disruptors.pdf

EDUCATION.”
• https://www.yesbank.in/pdf/glocalizing_
responsible_banking_mind_share_outcomes_
in_india.pdf
• https://www.yesbank.in/media/press-releases/
yes-banks-chief-sustainability-officer-receives-
leading-women-awards-from-the-world-
business-council-for-sustainable-development
• http://www.deccanchronicle.com/business/
companies/140717/yes-bank-opic-and-wells-
fargo-tie-up-to-support-women-entrepreneurs-
smes.html

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

SUSTAINABLE BUSINESS and economic performance. They are also an


In addition to new markets emerging, current impor tant mechanism to help companies reach
markets are fading. Markets for products such as their targets by scaling-up sustainable practices,
non-sustainable energy sources and sugary re- and can be used at every point in the value chain
freshments are diminishing as demand for these – enabling producers, harvesters, and processors
products falls with consumer awareness. At the to achieve a recognized level of sustainability, and
same time, environmental changes and the de- traders, manufacturers and retailers to address
velopment of economies are initiating new de- the impacts of their supply chains. This can make a
mands and opening oppor tunities for businesses major contribution to the SDGs.
to reach new target groups and develop solutions.
Incorporating the Global Goals and the associated
Targets in business initiatives and strategies helps EMBEDDING SUSTAINABLE
companies shape their strategies for enduring BUSINESS PRACTICES INTO
success. For many companies, embedding sustain-
able business practices into operations, business
OPERATIONS, BUSINESS MODELS,
models, and missions is no longer optional, it is im- AND MISSIONS IS NO LONGER
perative in order to remain competitive. Fur ther OPTIONAL; IT IS IMPERATIVE IN
validating this point, new case studies and data are
emerging all the time. A new repor t published by
ORDER TO REMAIN COMPETITIVE.
WWF and ISEAL titled SDGs Mean Business: How
Credible Standards Can Help Companies Deliver the In terms of agriculture, for example, adoption of
2030 Agenda48 illustrates how forward-thinking sustainability standards has encouraged produc-
businesses can unlock new market oppor tunities tivity and quality improvements and consequently
by implementing intelligent and credible sustaina- accounted for net increases in farmers’ income.
bility standards across their operations. It also calls Identifying the societal trends, new hotspots, and
attention to how such standards can deliver direct sector related oppor tunities are the necessary
benefits to companies and small-scale producers, components to unlocking the markets associat-
while also accelerating progress on the SDGs. ed with the SDGs. These markets are large and
plentiful and they have the potential to grow fast
and strong.
ALTHOUGH THE AWARENESS
AND ACCEPTANCE OF CSV AND
ITS IMPLEMENTATION INTO
BUSINESS HAS BEEN GROWING,
THE SHARED VALUE BUSINESS
MODEL STILL NEEDS TO BECOME
COMMON PRACTICE.

Sustainability standards translate the broad con-


cept of sustainability into specific, concrete meas-
ures for companies and their suppliers. With
broad uptake, these standards can move whole
sectors toward improved social, environmental

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2.5  A CALL TO ALL BUSINESSES (LARGE, SMES, START-UPS AND SCALE-UPS)

2.5 A CALL TO ALL business areas while creating a positive impact in


others. For instance, Nike’s Chief Sustainability
Officer, Hannah Jones, explained the company’s
BUSINESSES (LARGE, SMEs, target: “We’ve set a moonshot challenge to dou-
ble our business with half the impact. It’s a bold
START-UPS AND SCALE-UPS) ambition that’s going to take much more than in-
cremental efficiency – it’s going to take innovation
The journey towards achieving the SDGs by 2030 on a scale we’ve never seen before. It’s a challenge
needs all businesses - large, mid-sized and small - we are setting for ourselves, our collaborators
to join in. If they do not, we will fail to reach our and our par tners as we move toward a circular
destination in time, or we may never arrive at our economy future.” 49
destination at all. The key to businesses success-
fully accelerating towards these Goals is a positive Nike, like Ikea and Unilever, recognize their influ-
synergy between businesses of all kinds and all ence and understand that there is a fundamental
sizes. This has to do with the value of scale being change they will need to undergo. They will invari-
equally as important as the value of innovation. ably need time to change their course completely,
Let us explore the spectrum of: but change their course, they will. And with clarity
of vision and determination, these large multina-
1. Large companies – multinationals tional companies can have a major positive impact
2. Star t-ups and Scale-ups on the environment and on societies all over the
3. SMEs – small and mid-sized enterprises world (See Case 13).

LARGE COMPANIES
Large multinationals are notoriously difficult to
“INCREMENTAL CHANGE
turn and are often compared to large ships which WON’T GET US THERE FAST
take time, and often a seemingly gradual approach, ENOUGH.”
to change course. But because of their sheer size,
these conglomerates can have a large net positive MARK PARKER CEO NIKE 50
impact by reducing their negative impact in some

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13 NO
POVERTY
IMPACT SDGS
CASE NO. NIKE
Double Business Growth, Half the Impact
Minimizing Environmental Impacts While
Expanding Profits
Case applied in: Global
Headquarters located in: USA
www.nike.com

ZERO
HUNGER SDG 6 I BELIEVE THAT ANY COMPANY DOING BUSINESS TODAY HAS TWO SIMPLE OPTIONS:
Clean Water and Sanitation EMBRACE SUSTAINABILITY AS A CORE PART OF YOUR GROWTH
GOOD HEALTH
AND WELL-BEING
Increased water efficiency by
STRATEGY OR EVENTUALLY STOP GROWING.
18% per unit in apparel dyeing
MARK PARKER, CHAIMAN, PRESIDENT AND CEO, NIKE,INC.
and finishing and 43% in
QUALITY

footwear manufacturing.
EDUCATION

GENDER
EQUALITY
SDG 7
Affordable and Clean With sustainable growth at the forefront of its metrics. Not only has there been steady progress
CLEAN WATER
AND SANITATION Energy business goals, the spor tswear giant plans to con- in factory performance, but Nike’s sustainability
Reduced carbon emissions tinue to decrease its total energy use and reduce initiatives have also contributed to the retailer’s
with continued growth - CO2 emissions, while increasing its clean ener- financial success. Known as a heavy polluter for
gy portfolio. As par t of its mission to “acceler- much of the 1990s, Nike has cleaned up its opera-
AFFORDABLE AND
CLEAN ENERGY

revenue increased 64% since


ate toward a low-carbon growth economy”, Nike tions and now boasts some of the highest returns
2008 and limited absolute
DECENT WORK AND presents its sustainability effor ts with three core on sustainable investments among Nor th Amer-
emissions to 20%.
ECONOMIC GROWTH

goals: minimize its environmental footprint (SDG ican apparel and footwear companies. According
7 & 13), transform its manufacturing (SDG 6 & to an in-depth study for investors from Morgan
INDUSTRY, INNOVATION
AND INFRASTRUCTURE SDG 8 12) and “unleash human potential” (SDG 8). At Stanley - measuring a brand’s performance on en-
Decent Work and Economic the same time, they recognize that the two lead- vironmental, social, and governance issues -, the
REDUCED Growth ing drivers of environmental and socio-economic expansion of Nike’s sustainability initiatives has
impact across their value chain are the materials paid off and it scores at the top of the list among
INEQUALITIES

86% of contract factories


used in products and the outsourced manufactur- its peers. For example, by embedding sustainabili-
demonstrated an investment
SUSTAINABLE CITIES
AND COMMUNITIES ing of those products. Since 2008, the company’s ty into its innovation process, Nike created the US
in workers, progressing toward contract footwear manufacturers have cut energy $1 billion-plus Flyknit line, which uses a specialized
the goal of 100% by FY20. use per unit by around 50%. That means in the yarn system, requiring minimal labor and gener-
RESPONSIBLE

past decade the company used half the energy ating large profit margins. Flyknit reduces waste
CONSUMPTION
AND PRODUCTION

SDG 12 and generated around half the emissions to make by 80% compared with regular cut and sew foot-
CLIMATE
ACTION Responsible Consumption its shoes. In FY15, Nike repor ted it had signifi- wear. Since its launch in 2012, Flyknit has reduced
cantly reduced carbon emissions during a period 3.5 million pounds of waste.
and Production
of continued growth – shipping more than 1 bil-
Designed products that provide
lion units and seeing sales rise 52% (from FY11 Nike is an enormous company with over 600
LIFE
BELOW WATER

superior performance with a through FY15). manufacturing par tners outside the US, many in
LIFE
lower environmental impact. developing countries, and as such has an oppor-
ON LAND

In 2012, Nike launched its Sustainable Manufac- tunity to have a tremendous environmental sus-
SDG 13 turing and Sourcing Index (SMSI), a system for tainability impact on the world. If they can work
combining factory ratings with lean manufactur- with their par tners and hold them to higher en-
PEACE, JUSTICE

Climate Change
AND STRONG
INSTITUTIONS

In FY15, footwear factories ing and human resource management, as well as vironmental standards (beyond local government
for health, safety and the environment. Using the requirements) – Nike can impact a significant par t
diverted 92% of waste and
PARTNERSHIPS
FOR THE GOALS

SMSI, the company continues to drive factory of the global supply chain.
delivered substantial water performance through sound measurements and
reductions.

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CHALLENGE
To reduce overall negative
impact and reach 100%
renewable energy by the end
of FY25 in owned or operated
facilities where energy
purchase decisions are made
“ DOUBLING
on site.
GROWTH AND
HALVING NEGATIVE
ENVIRONMENTAL
OPPORTUNITIES FOR SCALE
Moving forward, Nike has set a goal of nearly dou-
bling its business to US $50 billion while halving its

IMPACT IS NOT ONLY


environmental impact even further by 2020. Nike
generated US $30.6 billion in FY15 and promis-
es to add US $20 billion over a five-year period.

A SUSTAINABILITY
Nike’s eventual vision is to shift its entire supply
chain to a “closed loop” ecosystem, embedding
sustainable innovation from design to finish.

Sources and further information


• https://rctom.hbs.org/submission/nike-
MEASURE, IT IS A
BUSINESS MATTER.”
innovating-with-sustainability/
• http://footwearnews.com/2016/business/retail/
nike-plans-double-business-environmental-
impact-2015-sustainability-report-220481/
• Nike Inc. Sustainable Business Report,
Sustainable Innovation is a Powerful Engine for
Growth, FY14/15
• https://www.theatlas.com/charts/Vy5fcIe2
• https://s1.q4cdn.com/806093406/files/doc_
financials/2016/ar/docs/nike-2016-form-10K.pdf

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

Doubling growth and halving negative environ-


mental impact is not only a sustainability measure,
MANY OF THE TOP 100
it is a business matter. The challenges we face to
combat climate change at this stage need proac- ECONOMIC ENTITIES ARE
tive, positive action. It is simply too late for merely CORPORATIONS, NOT
a gradual reduction protocol. Because many busi- COUNTRIES.
nesses and governments were too slow and sty-
mied to act when they needed to, we are now at
WALMART, APPLE, SHELL
a tipping point. And we need more positive action ARE RICHER THAN RUSSIA,
to make an impact, thereby tipping us in the right BELGIUM, SWEDEN 51
direction. However, as mentioned earlier, for large
multinationals it is hard to change course quickly
and drastically. For this very reason, they should ment Program to develop innovative solutions to
have set their course in the direction of sustaina- help fight hunger and malnutrition. The company
bility a long time ago. But I am encouraged that is committed to improving the nutrition of the
many of them are doing it now. Large multinatio- two billion people at the bottom of the economic
nals must now step up their actions fur ther, wield pyramid who are suffering. Their program leads to
their power, and use their force for good. innovative products such as high-quality micronu-
trients tailored to the needs of pregnant women
as well as to all other segments of developing so-
SCALE HAS IMPACT cieties (See Case 42 in Chapter 8).
Corporations are some of the largest econom-
ic entities in the world, ranking higher than many
countries. So imagine, if one of those companies SMALL COMPANIES AND THEIR GIANT IMPACT
reduces their waste and lowers their negative While large companies often transition slowly to
footprint, it already has a huge impact. Now im- a sustainable business model, small companies
agine if those giants create positive societal and can move faster. A lot of innovative star t-ups and
environmental value, it can turn the tide. If such scale-ups are incorporating this new meaning of
large multinationals adopt new solutions for the growth from the floor of their foundation. Their
SDGs throughout their product lines, then the business models are often based on creating a
scale grows exponentially as does its impact. For positive impact on the world and bringing about
example, as shown in chapter 1, the Swedish com- solutions for the SDGs. This makes sense, since
pany IKEA has committed to investing 600 million they come right off the drawing board, and from
euros in renewable energy, and aiming for 100% the beginning aim directly to be par t of the solu-
renewable energy as well as producing the total tion for the Global Goals, with more radical inno-
amount of energy they consume by 2020. Unile- vations enabling faster net positive impact. Large
ver is another multinational mentioned in Chapter and mid-sized companies, however, often have to
1 as being greatly inspired by the SDG timeline to combine a longer-term strategy for incremental
become CO2 positive by 2030. innovations of their current business model (less
bad, reducing the footprint). This is exactly why
Large purpose driven companies like these and the SDGs are a call to all business: large, mid-size
others, such as Interface, Nestlé, Nike, and DSM and small. The large and mid-sized companies are
have the SDG vision in place for all of their busi- impactful because of their volume, but their ac-
ness and product development. At DSM, it means tions are not quick and encompassing enough.
that new innovation must show a positive impact Small companies have the bold solutions, can act
on either the planet or the people, or preferably swiftly, and they fashion their businesses to whol-
both, in order to be developed for the global mar- ly suppor t the SDGs and engage in business for
ket. For instance, DSM uses its Nutrition Improve- good. Now the objective is to link mid-sized and

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2.5  A CALL TO ALL BUSINESSES (LARGE, SMES, START-UPS AND SCALE-UPS)

large companies and their capital and networks are at hand. The Business Commission’s repor t
to these small companies to scale the innovative mentions that half of the value of the SDG busi-
models and solutions. ness oppor tunities arise in developing countries.
And equally impor tant, it states that the majority
of jobs, almost 90%, will be created in developing
START-UPS AIM AT THE HEART OF THE SDGs AND countries. This includes 85 million jobs in Africa
THEIR MARKET POTENTIAL and 220 million jobs in developing Asia.
We have great examples from multinationals ef-
fectively addressing the SDGs. But, at the same
time, large companies often need disruptive star t- WHEN SMALL MEETS BIG – THE IMPACT IS GREAT
ups and scale-ups to be able to reorient from Good things happen when small meets big. Large
established sectors into SDG growth markets. A companies can benefit from the innovation and
tanker simply doesn’t shift course as easily as a purpose driven culture of the start-up, and the
speedboat does. There are currently many high- start-up can benefit from the network of the large
ly innovative, very creative start-ups with high company to scale up faster. There are different
growth potential arising around the globe. These ways that large companies and small are coming
star t-ups are born from the orientation towards together. One way involves the large companies
these new markets and the solutions to the using the Ambidextrous business model to nur-
problems facing our world. In other words, their ture breakthrough innovation. An Ambidextrous
products and services focus on the issues and op- Organization keeps their regular business endeav-
por tunities presented in the SDGs. ors going at the same time while creating or incor-
porating business units that have their own unique
processes, structures, and cultures. These business
AN EFFECTIVE WAY FOR LARGE units either identify new opportunities, develop
AND SMALL COMPANIES new products or services, or protect a new ven-
ture within the umbrella of the large company.
TO CONNECT IS THROUGH
INVESTMENT, SUCH AS BMW, for instance, is working on their established
CORPORATE VENTURE CAPITAL product by producing more energy efficient and
electric cars, and at the same time it is getting into
FUNDS. the car sharing arena with their ReachNow enter-
prise. During the first weeks of operation, over
An example of an innovative start-up focused on 13,000 people signed up. It has proven successful
social impact is found in a unique solution to a and BMW is currently expanding to more cities in
problem facing people in Uganda. Pneumonia kills the United States. Mercedes-Benz owner Daimler
27,000 children under the age of five every year. has also been tremendously successful with their
Most of these cases are due to pneumonia be- car-sharing subsidiary, Car2go, which serves eight
ing misdiagnosed as malaria. Therefore, Ugandan countries. Mercedes has also recently launched
engineer Brian Turyabagye created Mama-Ope52 a new car sharing service that approaches the
a biomedical “smart jacket” to quickly and accu- market from a different angel – facilitating peer-
rately diagnose pneumonia. The smart jacket can to-peer sharing. The project is embedded into
diagnose pneumonia three to four times faster Mercedes-Benz Cars’ CASE strategy, which focus-
than a doctor and eliminates most possibility for es on the impor tant topics for the future including
human error. This example and many others like connectivity, autonomous driving.
it focus on the pressing issues faced in developing
countries as the need for impact on the Goals is An effective way for large and small companies to
the highest there. At the same time, it is in these connect is through investment, such as Corporate
countries that the biggest business opportunities Venture Capital Funds. John Elkington describes

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

Corporate Venture Capital (CVC) as “a discrete SMEs must turn their attention to the SDGs since
investment activity into an independent company they are a worldwide force and have tremendous
or a portfolio of companies with the objective power. SMEs can, and often do, embrace social,
of achieving both financial and strategic return environmental and economic sustainability as par t
to the parent company.” The strategic return is of their business operations. SME owner-man-
particularly essential. The companies receiving agers are often interested in ensuring a strong,
CVC investment are often innovative star t-ups or positive legacy for their business, especially if the
scale-ups, and the investment also serves to give business is a family firm. Their smallness can be
them access to new knowledge and core com- an advantage: owner-managers can strongly influ-
petencies. Further reading on this in Chapter 4 ence employee behavior and a lack of extensive
regarding business capital. A comparable synergy management structures can make change easier.
arises when start-ups are strengthened by Foun- SMEs can also adapt quickly and agilely when it
dations from large corporations, as we saw earlier suits them, leaving them well-positioned to take
in Case 9 with the American star t-up Revolution advantage of new niche markets for products or
Foods receiving financing from the Kellogg Foun- services with socially responsible aspects.
dation to provide healthy school meals with local-
ly produced foods. Mid-sized companies are also showing - as I in-
terpret it - a new orientation towards their busi-
ness development processes and recognizing the
SMALL AND MID-SIZED ENTERPRISES (SMEs) - potential for product innovation in developing
STUCK IN THE MIDDLE countries. This makes sense: in those countries,
We have seen how large companies can make it is often very clear what problems need to be
a big splash when they redirect their business solved. The situation is often poignant in terms of
practices to be more sustainable, and we know child illnesses and death, labor conditions, illness
that start-ups have infinite possibilities to inno- due to lack of hygiene and clean water, and lack of
vate, but what about the established small and education oppor tunities. There are currently 385
medium sized companies? According to the World million children living in pover ty worldwide and in
Trade Report 2016 by the World Trade Organi- developing countries, 20% of the children live in
zation, small and mid-sized companies make up pover ty stricken conditions.
93% to 95% of the total enterprises in countries
all over the world, and account for approximate- SMEs and social enterprises are finding solutions.
ly two-thirds of all employment, representing the Moyee Coffee, for example, is using a revolu-
largest part of both business and the economy. tionary “Fair chain” approach to build a thriving
In Mexico for example, SMEs account for 99.8% business while at the same time breaking through
of Mexico’s total economy. In Britain, mid-sized the cycle of pover ty and benefitting people at the
companies are outperforming both smaller and bottom of the pyramid (See Case 14).
larger businesses, according to the Financial Times.

SMEs REPRESENT MORE THAN 90% OF GLOBAL BUSINESSES


AND ACCOUNT, ON AVERAGE, FOR ABOUT 50% OF GROSS
DOMESTIC PRODUCT OF ALL COUNTRIES AND FOR 63% OF THEIR
EMPLOYMENT. 53
(ACCA 2010)

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“ CREATIVITY IN
SUSTAINABILITY IS THE
KEY TO UNLOCKING MANY
STRUCTURAL BARRIERS IN
OUR DAILY ENVIRONMENTAL
CHALLENGES AND TO
IDENTIFYING THE GROWTH
INDUSTRIES OF THE FUTURE.”

VICTOR CHU, CHAIRMAN AND CEO OF


FIRST EASTERN INVESTMENT GROUP

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14 NO
POVERTY
IMPACT SDGS
CASE NO. MOYEE COFFEE
FairChain Coffee Production
Business model based on producing coffee in
the countries where it is harvested.
Case applied in: Ethiopia
Headquarters located in: The Netherlands
www.moyeeethiopia.com

ZERO
HUNGER SDG 1 WE DON’T SELL COFFEE, WE SELL IMPACT. FAIR CHAIN IS ABOUT THREE THINGS:
No Poverty ECONOMIC IMPACT; SOCIAL IMPACT; AND ECOLOGICAL IMPACT.
Aims to increase percentage of
GOOD HEALTH
AND WELL-BEING GUIDO VAN STAVEREN VAN DIJK, FOUNDER MOYEE COFFEE
value to 50% staying in coffee
producing countries.
QUALITY
EDUCATION

SDG 8
Decent Work and Economic
GENDER
EQUALITY

Growth Coffee is crucial to Ethiopia’s economy, with one ee works with approximately 350 smallholders to
CLEAN WATER
AND SANITATION Thanks to the Ethiopian in four Ethiopians relying on it for their liveli- help them improve their yields and the quality of
Government’s granting Moyee hoods. Most small-scale family farmers live in their beans. Moyee Coffee’s ambition is to create
the special status as a remote locations and lack access to credit and shared value by distributing products that bring to
financing. They are therefore vulnerable to mid- its local growers as much as it brings to its Dutch
AFFORDABLE AND
CLEAN ENERGY

FairChain exporter, Moyee will


dlemen who offer cash for their coffee at a frac- shareholders, (SDG 10) while remaining price
source all of its coffee directly
DECENT WORK AND tion of its value. There is a need for farmers to competitive to their customers.
from smallholders.
ECONOMIC GROWTH

earn better incomes, allowing them to keep and


maintain their land (SDG 11). Guido van Staveren The company has successfully responded to its
INDUSTRY, INNOVATION
AND INFRASTRUCTURE SDG 10 van Dijk, Founder of Moyee Coffee developed the impact goals by educating and empowering Ethi-
Reduced Inequalities “FairChain” system which sets out to create an opians to roast their own beans and setting the
REDUCED 60% of all the beans sold equal split between Moyee (the reseller) and the stage for ethical industrialization (SDG 8). Em-
farmers, so each receives 50% (SDG 1). Moyee ploying this innovative new business structure of
INEQUALITIES

by Moyee will come from its


aims to roast 900,000 kilograms a year and to be roasting and packaging Ethiopian coffee in Ethiopia
Ethiopian roaster.
SUSTAINABLE CITIES
AND COMMUNITIES recognized throughout Europe and the US as a instead of the West, Moyee was able to increase
Mpremium coffee brand with a serious social and its revenue more than ten-fold in two years from
RESPONSIBLE
SDG 11 economic message. US $80,000 in 2014 to US $900,000 in 2016. The
Sustainable Cities and company has also become the first ISO cer tified
CONSUMPTION
AND PRODUCTION

Communities By roasting and packaging coffee beans in their coffee roasting facility in Ethiopia and one of the
CLIMATE
ACTION Moyee will move to in Addis land of origin, local farmers can earn more. Moy- very first in Africa (SDG 12).
Ababa to meet both local and
LIFE
BELOW WATER
international demand, creating
business and jobs in the
LIFE
country.
ON LAND

PEACE, JUSTICE
SDG 12
Responsible Consumption
AND STRONG
INSTITUTIONS

and Production
Collaborates with several
PARTNERSHIPS
FOR THE GOALS

agricultural institutes with the


aim to explore sustainable and
climate smart agriculture in
Ethiopia.

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CHALLENGE
To improve the livelihoods
of farmers in developing
countries by changing the
business model so the product
is produced in the country
where the raw materials are
“ THE COMPANY HAS
grown.
SUCCESSFULLY
RESPONDED TO
ITS IMPACT GOALS
OPPORTUNITIES FOR SCALE
Moyee Coffee has grown into a leading internet
based coffee retailer. They have expanded their

BY EDUCATING
operations to include sales points in Belgium,
France and Germany; and are planning to devel-
op production in Panama and Columbia to grow

AND EMPOWERING
their FairChain network.

Sources and further information


• http://africabusinesscommunities.com/features/
interview-debritu-mogesse-lusteau-founding-
partner-moyee-coffee-the-netherlands.html
ETHIOPIANS TO
ROAST THEIR
• http://www.conservation.org/stories/sustainable-
coffee-challenge/Pages/partners.aspx
• http://impact.moyeecoffee.com/impact-

OWN BEANS AND


report-2016#!/home-copy-copy-copy-copy-
copy-2-copy/item/1
• http://degroenezaak.com/wp-content/

SETTING THE STAGE


uploads/2016/09/Publicatie-SDGs-2016_De-
Groene-Zaak.pdf
• https://issuu.com/dionpielanen/docs/moyee_

FOR ETHICAL
impact_report_pages_bs_250x17
• https://moyeecoffee.com/emerce/
• callthefarmer.moyeecoffee.com

INDUSTRIALIZATION.”

TDS final Boek.indb 93 18-12-17 18:56


SMEs MUST TURN THEIR
ATTENTION TO THE
SDGs SINCE THEY ARE A
WORLDWIDE FORCE AND
HAVE TREMENDOUS POWER.

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2.5  A CALL TO ALL BUSINESSES (LARGE, SMES, START-UPS AND SCALE-UPS)

While some SMEs are able to shape their business issues, it is necessary that SMEs shift to sustainable
models to respond to the SDGs, others run into business practices and that they are suppor ted
difficulties when transitioning to more sustaina- by their business par tners and clientele. The busi-
ble behaviors and most SMEs have been slow to ness advisory group Grant Thornton conducted
adopt environment-related improvements. For a study and calculated that the UK mid-market
instance, in the EU, only 29% of SMEs have intro- comprises of 34,000 companies, making up more
duced measures to save energy or raw materials than a fifth of private sector turnover. With the
(compared with 46% of large enterprises).54 This large share that mid-sized companies represent,
is especially the case for well-established compa- it is vital that they too take aim at achieving the
nies that have been doing business in a certain SDGs.
way for a long period with a loyal client and sup-
plier base. If they don’t have large sums of money
to push a transition or absorb costs while shoring WRAP UP
up a more sustainable approach, they are some- We can clearly conclude that we need all busi-
times forced to continue non-sustainable practic- nesses. Large, mid-sized, small, star t-ups and scale-
es for longer than they would like to. For example, ups; they all bring unique assets to the table and
a company relying on packaging for their products create the necessary scale together. It is the case
may find a more sustainable option but encounter that large companies and star t-ups tend to dom-
resistance from their clients due to higher costs inate the attention, but more attention should be
or a less premium look and feel. Fortunately, SMEs paid to SMEs and scale-ups to bring them into the
are persevering and moving forward with sustain- conversation regarding achieving the SDGs. Large
able initiatives as an ethical business driver and a companies should also realize their value to SMEs,
strategic differentiator for their brand. star t-ups and scale-ups and should make par tner-
ing with them a cornerstone of their strategy. We
Given the importance of SMEs for the world econ- need them all: they all count, they all will profit,
omy and their impact on social and environmental and our world will too. n

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TDS final Boek.indb 96 18-12-17 18:56
PART 2  THE SHIFT TO A BETTER FUTURE

PART 2 | THE TRILLION DOLLAR SHIFT ACCELERATED

INTRODUCTION
The SDGs present an exciting opportunity for innovation in both the capital mobilization and the technological
capacity of today’s world. Businesses that solve problems and create solutions for today’s challenges represent
the leaders of tomorrow.

As the fastest growing industry today, Information and Communications Technology (ICT) represents the future
of the way we conduct our daily lives. There is no greater disruptive force or catalyst for unprecedented im-
provements. If harnessed efficiently, the power of ICT can truly be a large component of our strategy to meet
he 2030 Goals. Information and Communications represents just one aspect of the potential for technology.
Other types of technological advancements, such as big and small data, Internet of Things, and artificial in-
telligence will influence our lives and the way we do business. Opportunities for technological innovation and
integration offer a new trajectory in the trade and movement of goods and services, finance and investment,
and institutional capabilities. Thus, both ICT and Technology with be required in our journey to reach our col-
lective Goals. For the purposes of brevity in this chapter, ICT and technology is used to refer to ICT and other
advanced technologies.

In addition to technology underpinning today’s business, capital investment remains the foundation of the
economy. Achieving the SDGs will require funding and cooperation on an unprecedented scale. The private
sector will play an essential role in achieving the Global Goals and is integral to meeting the financial need.
With the estimated necessary investment of US $5 to $7 trillion per annum, the SDGs will require the redirec-
tion of private capital to fill the gap of available public funds. Businesses and investors that embrace this new
challenge to fill the gap will lead the way toward a more sustainable future. The shared value opportunities
are vast, while blended finance initiatives are paramount to success.

We need all capital and creative investments to make progress on the SDGs, not to mention our need for
the multiple parties and services that will be required to disseminate these funds. The private sector holds
a pivotal position in advancing ICT and Technology as well. The efficient allocation of resources through
breakthroughs in financial and technological advancements will drive growth and become the winning formula
for business success, investment returns, and the achievement of the SDGs.

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3
THE TRILLION DOLLAR SHIFT  MARGA HOEK

ICT AND TECHNOLOGY

The impact and value of Information and Communication Technology (ICT) and other technological breakthroughs
in societies today can hardly be overestimated. It is a driving force behind innovation, connectivity, productivity
and efficiency in nearly every sector. It is responsible for enormous changes in how we live and how we work.
Because of this influence, the main focus should be the creation of a positive impact for all business areas. ICT is
used in all business sectors and its strength lies in the fact that it is embedded in nearly all business activities.
The challenges and opportunities for ICT and technology are unique, as technology is the fastest growing industry
in current times. Telecommunications and Technology are now part of nearly everything we do, and this will only
increase exponentially in the coming years. ICT and technology pervades all areas of business and technological
solutions can be applied effectively to every other sector. ICT has entered our lives and has already changed the
way we live, work and communicate. We have entered the ‘Fourth Industrial Revolution’, and can expect more
sweeping changes to come in rapid succession.

3.1 ICT, TECHNOLOGY AND The impact that ICT and technology can have
on the SDGs and economic sustainability is im-
mense. According to a repor t called ICT & SDGs
THE SDGs by The Earth Institute Columbia University and
Ericsson, “ICTs have the potential to increase the
With the emergence of the concrete Sustaina- rate of diffusion of a very wide range of technol-
ble Development Goals, the urgency for the ICT ogies across the economy. Key sectors in which
sector to direct its course towards contributing technology diffusion can be accelerated include:
to their achievement is palpable. Past generations healthcare, education, financial services, electrifi-
were empowered by steam engines, the telegraph, cation, and high-yield agriculture. The accelerated
automobiles, aviation and mass communications. uptake of these technologies, and others empow-
Ours benefits from the extraordinary surge of in- ered by ICTs, constitute the key to achieving the
formation brought by the internet and from the Sustain­able Development Goals by their target
other technological breakthroughs. These benefits date of 2030.”1
can and should be directed towards the Global
Goals. ‘ICT for good’ is good for the world and The repor t identifies five ways ICTs can accele­
good for the ICT business. rate the uptake of SDG-related technologies:

1. “The first is that ICTs themselves diffuse


USING ICT FOR GOOD IS THE KEY with remarkable speed. The uptake of
TO FAST-FORWARDING THE SDGs. mobile phones, computers, the internet, and
social media, have been the fastest adop-
tions of technology in human history.
Using ICT for good is the key to fast-forwarding
the SDGs. Many companies and star tups are uti- 2. The second way is that the ICTs can
lizing current and evolving technology to create markedly reduce the cost of deploying the
sustainable enterprises, but the domain itself can needed technologies. In health care, for
and must do everything in its power to lead the example, ICTs make possible a greatly ex-
way towards achieving positive impacts on socie- panded role for low-cost Community Health
ty and the environment. ICT has the potential to Workers (CHWs), enabling many diagnoses
significantly accelerate every one of the 17 Sus- and treatments to be made at the commu-
tainable Development Goals. nity level rather than at high-cost facilities;

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3.1  ICT, TECHNOLOGY AND THE SDGS

in education, ICTs enable students to access 3 D-printing and innovative manufac-


quality online teaching even when no quali- turing optimizes the use of resources
fied teachers are locally available; and online and energy, with 3D printing allowing
finance allows indi­viduals to obtain banking for par ts or tools to be tailor-made and
services even when no banks are present. only manufactured when needed.

3. The third way is that the ICTs can dramat- Robotics and Ar tificial Intelligence (AI)
ically speed the public’s awareness of the will transform sectors such as manufac-
new technologies, and therefore the de- turing and health care, and have a huge
mand and readiness for those technologies. influence on jobs.

4. The fourth is that national and global Driverless vehicles will influence infra-
information networks can support the rapid structure and disrupt industries such as
upgrading of new applications. public transpor tation.

5. And the fifth way is that ICTs can accelerate Drones will help facilitate information
technology diffusion by providing low-cost gathering and introduce innovative dis-
online platforms for training workers. The tribution of goods.
revolution of Massive Open Online Courses
(MOOCs), for example, enables students The Internet of Things (IoT) holds ex-
anywhere to gain free access to high-quality ponential oppor tunities and can accel-
university courses.” erate the circular economy.

ICT is clearly a key driver in accelerating and scal- Blockchain facilitates secure and trans-
ing the solutions to the SDGs and is the newest parent financial transactions, and has
powerful tool we have for solving the world’s ma- the potential to rock economic founda-
jor challenges. The many technological advance- tions.
ments that have debuted and evolved in recent
years can each affect the SDGs profoundly.


Mobile communication and internet TECHNOLOGY IS A DRIVING
connectivity permeate our everyday FORCE BEHIND INNOVATION,
lives and open the door to untold op-
por tunities for positive impact.
CONNECTIVITY, PRODUCTIVITY
AND EFFICIENCY IN NEARLY
 Social media lets people connect and EVERY SECTOR.
facilitates the power of the people.

Big and small data allows computational


analysis, revealing trends, patterns and IMPACT ON EVERY SDG
behaviors which can help in achieving ICT and technology form the backbone of today’s
many of the SDGs. digital economy and have tremendous potential
to improve people’s lives in fundamental ways and
Smar t grids facilitate the highly efficient therefore are crucial to achieving the SDGs by
distribution of locally generated energy, 2030. Each SDG is impacted by ICT and tech-
even in remote areas. nology.

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

GENDER
EQUALITY
CLEAN WATER
AND SANITATION
NO SDG 1: No Poverty; As internet ac-
POVERTY
necessary information to analyze trends, and
cess spreads worldwide, the ‘digital di- make projections about disease outbreaks, health
SUSTAINABLE CITIES RESPONSIBLE ZERO
vide’ becomes less, affording people service usage, patient knowledge, attitudes, and
across the globe access to knowledge and financ- practices. ICT developing access to health infor-
ES AND COMMUNITIES CONSUMPTION HUNGER
AND PRODUCTION

ing – especially relevant for people living in re- mation, enabling patients to contact health care
TICE
G
NS
PARTNERSHIPS
FOR THE GOALS mote areas of the world, like smallholder farmers
GOOD HEALTH
AND WELL-BEING services remotely, regardless of their proximity to
in developing countries. There are more than 2 a health care center ; informing health care work-
billion unbanked people in the world.2 Due to
QUALITY
ers - for example, helping to learn and prepare
digital financial services, many are par ticipating in for disease outbreaks, identify patient symptoms,
EDUCATION

the digital economy for the first time; and access follow established treatment protocols, perform
GENDER
EQUALITY
CLEAN WATER
AND SANITATION to financial services has proven to be a pivotal
GENDER
EQUALITY remote diagnostics, and access exper t suppor t.
step in helping people out of pover ty.3 Transform-
SUSTAINABLE CITIES
AND COMMUNITIES
RESPONSIBLE
CONSUMPTION
ing economies at every level, ICTs are helping
CLEAN WATER
AND SANITATION

society to overcome infrastructure issues, lift pro-


AND PRODUCTION

PARTNERSHIPS
ductivity and enable innovation that boosts in- ”WE MAKE THE FUTURE
comes. Digital identity management systems,
FOR THE GOALS
AFFORDABLE AND

SUSTAINABLE WHEN WE
CLEAN ENERGY

enabled by ICTs, are allowing countries to close


these gaps. Promoting inclusive innovation and
DECENT WORK AND INVEST IN THE POOR, NOT
WHEN WE INSIST ON THEIR
ECONOMIC GROWTH

better education and jobs for the poor, via online


work and education oppor tunities will provide
SUFFERING.
NO ZERO GOOD HEALTH QUALITY GENDER CLEAN WATER NO
POVERTY HUNGER AND WELL-BEING EDUCATION EQUALITY AND SANITATION POVERTY

fur ther oppor tunities to impoverished people.4


GENDER CLEAN WATER INDUSTRY,
NO INNOVATION
EQUALITY AND SANITATION AND INFRASTRUCTURE
POVERTY

AFFORDABLE AND
CLEAN ENERGY
DECENT WORK AND
ECONOMIC GROWTH
INDUSTRY, INNOVATION
AND INFRASTRUCTURE
REDUCED
INEQUALITIES
SUSTAINABLE CITIES
AND COMMUNITIES
RESPONSIBLE
CONSUMPTION
ZERO
HUNGER BILL GATES
SDG 2: Zero Hunger; ICT is pro-
AND PRODUCTION
SUSTAINABLE CITIES RESPONSIBLE REDUCED
ZERO
ES AND COMMUNITIES CONSUMPTION INEQUALITIES
HUNGER
AND PRODUCTION

viding oppor tunities to connect people


in need with people with excess. It is
CLIMATE LIFE LIFE PEACE, JUSTICE PARTNERSHIPS GOOD HEALTH
ACTION BELOW WATER ON LAND AND STRONG FOR THE GOALS AND WELL-BEING
INSTITUTIONS
TICE PARTNERSHIPS SUSTAINABLE
GOOD HEALTHCITIES

also providing much needed information to farm-


G FOR THE GOALS AND COMMUNITIES
WELL-BEING
NS

ers to improve crop yields. Big and small data ana- QUALITY
EDUCATION
SDG 4: Quality Education; ICT is
lytics are helping to eliminate waste. ICT and
RESPONSIBLE
QUALITY
CONSUMPTION
EDUCATION
AND PRODUCTION
making education available to more
technology offers oppor tunities to benefit farm- GENDER
people than ever before and thus as-
ers and agricultural production via better access sisting in progress towards realizing the SDGs
NO ZERO GOOD HEALTH QUALITY GENDER CLEAN WATER EQUALITY
POVERTY HUNGER AND WELL-BEING EDUCATION EQUALITY AND SANITATION
CLIMATE
GENDER
CLEAN WATER

to useful information - weather fore­cast, market


ACTION

pledge to ‘leave no one behind’. In developing


GENDER
AND SANITATION
EQUALITY
EQUALITY

AFFORDABLE AND
CLEAN ENERGY
DECENT WORK AND
ECONOMIC GROWTH
INDUSTRY, INNOVATION
AND INFRASTRUCTURE
REDUCED
INEQUALITIES
prices; monitoring environmental and soil condi-
SUSTAINABLE CITIES
AND COMMUNITIES
RESPONSIBLE
CONSUMPTION
AND PRODUCTION countries such as Tanzania where schools are
CLEAN WATER
AND SANITATION

tions to make farming more profitable and sus- scarce, families are making it a priority to have a
SUSTAINABLE CITIES RESPONSIBLE LIFE WATER
AND COMMUNITIES CONSUMPTION CLEAN
AND PRODUCTION
BELOW
AND WATER
SANITATION

CLIMATE
ACTION
LIFE
BELOW WATER
LIFE
ON LAND AND STRONG
INSTITUTIONS
tainable - water management, pest/­disease control;
PEACE, JUSTICE PARTNERSHIPS
FOR THE GOALS smar t phone so the children can learn and devel-
AFFORDABLE AND

tracking food supplies and mapping agricultural op themselves. The number of internet users in
CLEAN ENERGY
PARTNERSHIPS
FOR THE GOALS LIFE
AFFORDABLE AND
ON LAND
CLEAN ENERGY

production and food shor tages to establish com- Tanzania alone rose 52 percent to 17.26 million
prehensive data systems.5 ICT and technological in 2015 from 2014.6 Internet and mobile learning
DECENT WORK AND
ECONOMIC GROWTH

applications play an impor tant role in fostering is helping to help break down economic barriers,
PEACE,WORK
DECENT JUSTICE
AND
AND STRONG
ECONOMIC GROWTH
INSTITUTIONS

local, national and global food security and inclu- divides between rural and urban, as well as the
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

GENDER
EQUALITY
CLEAN WATER
AND SANITATION
sive rural development by enhancing production
PARTNERSHIPS
INDUSTRY,
NO
AND
INNOVATION
FORINFRASTRUCTURE
THE GOALS
POVERTY
gender divide. In addition to ICT facilitating edu-
and productivity, lowering operating costs, facili- cational oppor tunities for people worldwide, the
tating access to markets, information, credit, and Goal to improve quality education for all also ap-
REDUCED
INEQUALITIES

REDUCED

improving the lives of many poor rural people. plies to the need for improved technological ed-
SUSTAINABLE CITIES RESPONSIBLE ZERO
ES AND COMMUNITIES CONSUMPTION INEQUALITIES
HUNGER
AND PRODUCTION

ucation. Globally, there will be a talent gap for at


SUSTAINABLE CITIES
AND COMMUNITIES

TICE
G
NS
PARTNERSHIPS
FOR THE GOALS AND SDG 3: Good Health and Well-­
SUSTAINABLE
GOOD HEALTHCITIES
AND COMMUNITIES
WELL-BEING
least 10 million jobs requiring advanced digital
Being; Robotic assistance in health skills by 2020.
care; big and small data providing better
RESPONSIBLE
CONSUMPTION
AND PRODUCTION
RESPONSIBLE
QUALITY

analysis tools; big data analytics can provide the


CONSUMPTION
EDUCATION
AND PRODUCTION

CLIMATE
ACTION

CLIMATE
GENDER
GENDER CLEAN WATER ACTION
EQUALITY
EQUALITY AND SANITATION

LIFE
BELOW WATER

SUSTAINABLE CITIES
AND COMMUNITIES
RESPONSIBLE
CONSUMPTION
100 LIFE WATER
CLEAN
BELOW WATER
AND PRODUCTION AND SANITATION

LIFE
ON LAND
PARTNERSHIPS
FOR THE GOALS LIFE
AFFORDABLE AND
ON LAND
CLEAN ENERGY

PEACE, JUSTICE
AND STRONG
TDS final Boek.indb 100 PEACE,WORK
JUSTICE
INSTITUTIONS 18-12-17 18:56
DECENT AND
NO
POVERTY

3.1  ICT, TECHNOLOGY AND THE SDGS

ZERO
HUNGER

GOOD HEALTH
AND WELL-BEING

QUALITY
EDUCATION

GENDER
SDG 5: Gender Equality; ICT is
EQUALITY cilities to reduce CO2 emissions and pollution.
providing equal access to information. Technological innovations such as AQtap (See
ZERO GOOD HEALTH
Schooling and information have long
QUALITY CLEAN WATER GENDER CLEAN WATER
Case 10 in Chapter 2) help people in poor or
NO

been withheld from women in some areas of the remote areas access clean drinking water.7 As ag-
RTY HUNGER AND WELL-BEING EDUCATION AND SANITATION EQUALITY AND SANITATION POVERTY

world as a way to keep them subservient. With riculture accounts for approximately 70 % of
RDABLE AND
N ENERGY
DECENT WORK AND
ECONOMIC GROWTH
INDUSTRY, INNOVATION
AND INFRASTRUCTURE internet access to knowledge and information,
REDUCED AFFORDABLE AND SUSTAINABLE CITIES
INEQUALITIESCLEAN ENERGY AND COMMUNITIES
RESPONSIBLE
CONSUMPTION
AND PRODUCTION
global water withdrawals, advanced wireless sen-
ZERO
HUNGER

women around the world have oppor tunities for sors are being used in the fields to monitor hu-
ATE
ON
LIFE
BELOW WATER
LIFE
ON LAND
emancipation. For example, apps developed for
PEACE, JUSTICE
DECENT WORK AND PARTNERSHIPS
AND STRONGECONOMIC GROWTH FOR THE GOALS
midity levels and soil moisture, and can
GOOD HEALTH

smallholder farmers are reaching women and fa- automatically turn on irrigation systems when
AND WELL-BEING
INSTITUTIONS

cilitating their ability to par ticipate in the agricul- needed. Online, real-time monitoring systems are
ture industry in developing countries on a more showing national progress towards the goal of
INDUSTRY, INNOVATION QUALITY
AND INFRASTRUCTURE EDUCATION

equal footing to men. It is estimated that 103 communities becoming ‘open defecation-free’.
ZERO GOOD HEALTH QUALITY
million youths worldwide are devoid of basic lit-
REDUCED
INEQUALITIESGENDER CLEAN WATER
The public nature of these system helps par tici-
GENDER
EQUALITY

eracy skills, and more than 60 % of them are pating communities to contextualize the changes
ERTY HUNGER AND WELL-BEING EDUCATION EQUALITY AND SANITATION

ORDABLE AND DECENT WORK AND INDUSTRY, INNOVATION REDUCED


women. It is predicted that 90 % of future jobs
SUSTAINABLE CITIES RESPONSIBLE
they are implementing and serves as inspiration
will require ICT skills, and about 2 million new to other communities.
AN ENERGY ECONOMIC GROWTH AND INFRASTRUCTURE INEQUALITIES SUSTAINABLE
ANDCITIES
COMMUNITIES CONSUMPTION CLEAN WATER
AND COMMUNITIES AND PRODUCTION AND SANITATION

jobs will be created in the computer, mathemati-


cal, architecture and engineering fields in which SDG 7: Affordable and Clean
MATE LIFE LIFE PEACE, JUSTICE PARTNERSHIPS
TION BELOW WATER ON LAND AND STRONG FOR THE GOALS
INSTITUTIONS RESPONSIBLE AFFORDABLE AND
CONSUMPTION CLEAN ENERGY

women can play a big role. UN Women is cur- Energy; Smar t grids are creating path-
AND PRODUCTION
ZERO GOOD HEALTH QUALITY GENDER CLEAN WATER NO
RTY HUNGER AND WELL-BEING EDUCATION EQUALITY AND SANITATION POVERTY

rently developing a Vir tual Skills School to ensure


CLIMATE
ways for consumers to par ticipate in
DECENT WORK AND

that no woman or girl is left behind and to offer energy production, e.g. with the use of private so-
ACTION ECONOMIC GROWTH

RDABLE AND DECENT WORK AND INDUSTRY, INNOVATION REDUCED SUSTAINABLE CITIES RESPONSIBLE ZERO

a second chance at learning to those who had to lar panels. Developments in computer graphics,
N ENERGY ECONOMIC GROWTH AND INFRASTRUCTURE INEQUALITIES AND COMMUNITIES CONSUMPTION HUNGER
AND PRODUCTION

leave formal education. Initiatives such as these


LIFE
BELOW WATER 3D visualization and models, distributed networks
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

ATE
ON
LIFE
BELOW WATER
LIFE
ON LAND provide women and girls with learning pathways
PEACE, JUSTICE
AND STRONG
INSTITUTIONS
PARTNERSHIPS
FOR THE GOALS and wireless capabilities, coupled with more pow-
GOOD HEALTH
AND WELL-BEING

that facilitate their integration into formal school-


LIFE
erful enterprise software applications, make it
REDUCED

ing, allow them to progress into technology sec- possible to apply ICT in all phases of an energy
ON LAND INEQUALITIES

QUALITY

tors as either job seekers or job creators, and facility’s lifecycle. Progressive cities, such as
EDUCATION

enable them to enter and grow in all fields.


PEACE, JUSTICE
AND STRONG
INSTITUTIONS
Singapore and Barcelona, are managing energy
SUSTAINABLE CITIES
AND COMMUNITIES

flows by implementing many new data-driven


GENDER
ZERO GOOD HEALTH QUALITY GENDER CLEAN WATER EQUALITY
ERTY HUNGER AND WELL-BEING EDUCATION EQUALITY AND SANITATION

PARTNERSHIPS services, including intelligent parking solutions,


RESPONSIBLE

AN INCREASE IN INTERNET
FOR THE GOALS CONSUMPTION

smar t trash collection and intelligent lighting.8


AND PRODUCTION
ORDABLE AND DECENT WORK AND INDUSTRY, INNOVATION REDUCED SUSTAINABLE CITIES RESPONSIBLE
AN ENERGY ECONOMIC GROWTH AND INFRASTRUCTURE INEQUALITIES AND COMMUNITIES CONSUMPTION CLEAN WATER
AND PRODUCTION AND SANITATION

Green technologies and processes have the po-


ACCESS FOR 600,000 WOMEN
NO
POVERTY

tential to play a significant role in reducing global


CLIMATE
ACTION

IN DEVELOPING COUNTRIES
MATE LIFE LIFE PEACE, JUSTICE PARTNERSHIPS
TION BELOW WATER ON LAND AND STRONG FOR THE GOALS

greenhouse gas emissions. ​


INSTITUTIONS AFFORDABLE AND
CLEAN ENERGY
ZERO

WOULD CONTRIBUTE
HUNGER

LIFE
BELOW WATER

SDG 8: Decent Work and Eco-


US $13-US $18 BILLION
DECENT WORK AND
ECONOMIC GROWTH

nomic Growth; The internet has en-


GOOD HEALTH

TO THOSE COUNTRIES’
AND WELL-BEING

LIFE

abled the rapid growth of E-commerce;


ON LAND

COMBINED ANNUAL GDP.


INDUSTRY, INNOVATION

reducing the trade costs associated with physical


AND INFRASTRUCTURE
QUALITY
EDUCATION

distance, allowing a larger number of businesses to


PEACE, JUSTICE
AND STRONG

RELIEFWEB.INT
INSTITUTIONS

access the global marketplace, reaching a broader


REDUCED
INEQUALITIES

network of buyers and par ticipating in global val-


GENDER
EQUALITY

PARTNERSHIPS

ue chains. Despite the continued slow pace of


FOR THE GOALS

SUSTAINABLE CITIES

SDG 6: Clean Water and Sani- global trade growth, E-commerce has increased
AND COMMUNITIES
CLEAN WATER
AND SANITATION

tation; Big and small data is providing steadily, suppor ted by increasingly fast and effi-
necessary information for solutions to
AFFORDABLE AND
cient technologies which help to lower barriers to
RESPONSIBLE
CONSUMPTION
AND PRODUCTION

be found to improve water purity and sanitation. trade for both businesses and consumers. E-com-
CLEAN ENERGY

Robots are being used in sanitation processing fa- merce in goods and services was wor th US $22.1
CLIMATE
ACTION
DECENT WORK AND
ECONOMIC GROWTH

LIFE
BELOW WATER
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

101
LIFE
ON LAND
REDUCED
INEQUALITIES

PEACE, JUSTICE
AND STRONG
INSTITUTIONS
SUSTAINABLE CITIES
AND COMMUNITIES
TDS final Boek.indb 101 18-12-17 18:56
THE TRILLION DOLLAR SHIFT  MARGA HOEK

NO ZERO GOOD HEALTH QUALITY GENDER CLEAN WATER NO


POVERTY HUNGER AND WELL-BEING EDUCATION EQUALITY AND SANITATION POVERTY

AFFORDABLE AND DECENT WORK AND INDUSTRY, INNOVATION REDUCED SUSTAINABLE CITIES RESPONSIBLE ZERO
CLEAN ENERGY ECONOMIC GROWTH AND INFRASTRUCTURE INEQUALITIES AND COMMUNITIES CONSUMPTION HUNGER
AND PRODUCTION

CLIMATE LIFE LIFE PEACE, JUSTICE PARTNERSHIPS GOOD HEALTH


ACTION BELOW WATER ON LAND AND STRONG FOR THE GOALS AND WELL-BEING
INSTITUTIONS

trillion dollars in 2015, a 38 % increase since 2013. to be concentrated on expanding internet access
QUALITY

For businesses, the internet promotes inclusion of around the world. Other technological advance-
EDUCATION

firms in the world economy by expanding trade, ments also contribute to making cities smar ter
NO
POVERTY
ZERO
HUNGER
GOOD HEALTH
AND WELL-BEING
QUALITY
EDUCATION raising productivity of capital, and intensifying
GENDER
EQUALITY
CLEAN WATER
AND SANITATION and more sustainable while improving quality of
GENDER
EQUALITY

competition in the marketplace, which in turn in- life. Driverless vehicles and electric vehicles for
AFFORDABLE AND
CLEAN ENERGY
DECENT WORK AND
ECONOMIC GROWTH
INDUSTRY, INNOVATION
AND INFRASTRUCTURE
REDUCED
INEQUALITIES
duces innovation.9 Automated productivity creat-
SUSTAINABLE CITIES
AND COMMUNITIES
RESPONSIBLE
CONSUMPTION
example, will have a considerable impact on infra-
CLEAN WATER
AND SANITATION

ed by technology allows talent to become one structure and transpor tation. Industrialization
AND PRODUCTION

new form of capital, as the knowledge economy and the increase in productivity highly depends
NO ZERO GOOD HEALTH QUALITY GENDER CLEAN WATER NO
POVERTY HUNGER AND WELL-BEING EDUCATION EQUALITY AND SANITATION POVERTY
CLIMATE LIFE LIFE PEACE, JUSTICE PARTNERSHIPS

drives people towards higher-paying forms of on the effective use of ICTs.11 Innovations in
ACTION BELOW WATER ON LAND AND STRONG FOR THE GOALS
INSTITUTIONS AFFORDABLE AND
CLEAN ENERGY

AFFORDABLE AND
CLEAN ENERGY
DECENT WORK AND
ECONOMIC GROWTH
INDUSTRY, INNOVATION
AND INFRASTRUCTURE
REDUCEDwork that manage new technologies.10
INEQUALITIES
SUSTAINABLE CITIES
AND COMMUNITIES
RESPONSIBLE
CONSUMPTION
technology facilitated financial systems, such as
ZERO
HUNGER

the M-Pesa digital payment platform, which is a


AND PRODUCTION

DECENT WORK AND


ECONOMIC GROWTH

commonly used financial payment system in Ken-


PRIVATE BUSINESSES ARE
CLIMATE LIFE LIFE PEACE, JUSTICE PARTNERSHIPS

ya and other countries, facilitates innovation and


GOOD HEALTH
ACTION BELOW WATER ON LAND AND STRONG FOR THE GOALS AND WELL-BEING
INSTITUTIONS

has spawned a host of star tups in Nairobi.12


INDUSTRY, INNOVATION

BECOMING INCREASINGLY
AND INFRASTRUCTURE

QUALITY

AWARE OF THEIR IMPACT


EDUCATION

REDUCED SDG 10: Reduced Inequalities;


INEQUALITIES

ON THE ENVIRONMENT GENDER


ICTs can assist governments with the
movement of people across borders,
NO ZERO GOOD HEALTH QUALITY CLEAN WATER EQUALITY

AND ARE USING SMART


GENDER
POVERTY HUNGER AND WELL-BEING EDUCATION EQUALITY AND SANITATION

SUSTAINABLE CITIES

balancing security and other policy interests with


AND COMMUNITIES

GENDER
EQUALITY
CLEAN WATER
AND SANITATION AFFORDABLE AND
CLEAN ENERGY
DECENT WORK AND
ECONOMIC GROWTH
INDUSTRY, INNOVATION
AND INFRASTRUCTURE
REDUCED
INEQUALITIES
NO
SYSTEMS TO IMPROVE
POVERTY SUSTAINABLE CITIES
AND COMMUNITIES
RESPONSIBLE
CONSUMPTION
AND PRODUCTION the needs and rights of individual migrants. Tech-
CLEAN WATER
AND SANITATION

THEIR PROFITABILITY IN nology advancements help promote safer, legal


RESPONSIBLE
CONSUMPTION
AND PRODUCTION

forms of migration, and enhance the benefits that


A SOCIALLY RESPONSIBLE
SUSTAINABLE CITIES RESPONSIBLE CLIMATE LIFE LIFE PEACE, JUSTICE ZERO PARTNERSHIPS
ES AND COMMUNITIES CONSUMPTION ACTION BELOW WATER ON LAND AND STRONG HUNGER FOR THE GOALS AFFORDABLE AND
AND PRODUCTION INSTITUTIONS

migration offers to migrants and the societies


CLEAN ENERGY

WAY. FOR EXAMPLE, UPS’


CLIMATE

they move between. Transformative connectivity


ACTION

SMART TRANSPORTATION
TICE PARTNERSHIPS GOOD HEALTH

initiatives put in place by a number of public and


G FOR THE GOALS AND WELL-BEING
NS DECENT WORK AND
ECONOMIC GROWTH

SYSTEM IS SAVING THEM 10 private sector par tners have been suppor ting the
LIFE
BELOW WATER

Global Strategy for Connectivity for Refugees.


MILLION GALLONS OF FUEL
QUALITY
EDUCATION INDUSTRY, INNOVATION
AND INFRASTRUCTURE

The West Nile region, for example, has expanded


ANNUALLY (US $300 MILLION
LIFE
ON LAND

GENDER mobile network coverage and 3G connectivity


IN COSTS) WHILE REALIZING
GENDER CLEAN WATER EQUALITY

reaching at least 150,000 refugees.13


EQUALITY AND SANITATION REDUCED
INEQUALITIES

PEACE, JUSTICE

ANNUAL REDUCTIONS OF
AND STRONG
INSTITUTIONS

SDG 11: Sustainable Cities and


SUSTAINABLE CITIES RESPONSIBLE
AND COMMUNITIES CONSUMPTION CLEAN WATER
AND SANITATION

100,000 METRIC TONS OF CO2


AND PRODUCTION SUSTAINABLE CITIES
AND COMMUNITIES

Communities; ICT can improve


PARTNERSHIPS

EMISSIONS.
FOR THE GOALS
PARTNERSHIPS
FOR THE GOALS
AFFORDABLE AND
CLEAN ENERGY
public services by leveraging open data
RESPONSIBLE

and inclusive smar t governance models. Sensor


CONSUMPTION
AND PRODUCTION

UNCTAD.ORG networks, digital data and urban dashboards, as


well as data accessibility, are becoming common
DECENT WORK AND
ECONOMIC GROWTH CLIMATE
ACTION

concepts as par t of urban development world-


SDG 9: Industry, Innovation
INDUSTRY, INNOVATION
AND INFRASTRUCTURE wide. Examples include the United for Smar t Sus-
LIFE

and Infrastructure; Smar t grids tainable Cities Initiative (U4SSC) and a pilot
BELOW WATER

modernize electricity transmission in


REDUCED
project to monitor urban-environments which
order to meet increased demand. ICT can be promotes the use of information ICT to facilitate
INEQUALITIES LIFE
ON LAND

used for building resilient infrastructure and fos- and ease transitions to smar t sustainable cities.14
tering innovation; Infrastructure is controlled,
SUSTAINABLE CITIES
AND COMMUNITIES Development of an E-governance platform to
PEACE, JUSTICE
AND STRONG

managed and optimized by ICTs, for example, guide urban planners’ effor ts will collect and ana-
INSTITUTIONS

power networks, water supplies, transpor tation


RESPONSIBLE
lyze data on the impacts of smar t-city projects.
systems, and telecommunication networks all use Big data projects such as ‘Connecting Cities and
CONSUMPTION PARTNERSHIPS
AND PRODUCTION FOR THE GOALS

ICT. The technology sector is and should continue Communities’ analyze lessons from the imple-
CLIMATE
ACTION

LIFE
BELOW WATER

102
LIFE
ON LAND

PEACE, JUSTICE
AND STRONG

TDS final Boek.indb 102 18-12-17 18:56


INSTITUTIONS
ZERO GOOD HEALTH QUALITY GENDER CLEAN WATER NO
RTY HUNGER AND WELL-BEING EDUCATION EQUALITY AND SANITATION POVERTY

GENDER
EQUALITY

RDABLE AND DECENT WORK AND INDUSTRY, INNOVATION REDUCED SUSTAINABLE CITIES RESPONSIBLE ZERO
N ENERGY ECONOMIC GROWTH AND INFRASTRUCTURE INEQUALITIES AND COMMUNITIES CONSUMPTION HUNGER
AND PRODUCTION

CLEAN WATER 3.1  ICT, TECHNOLOGY AND THE SDGS


AND SANITATION

ATE LIFE LIFE PEACE, JUSTICE PARTNERSHIPS GOOD HEALTH


ON BELOW WATER ON LAND AND STRONG FOR THE GOALS AND WELL-BEING
INSTITUTIONS

AFFORDABLE AND
CLEAN ENERGY

QUALITY
EDUCATION

DECENT WORK AND


ECONOMIC GROWTH

GENDER
ZERO GOOD HEALTH QUALITY GENDER CLEAN WATER EQUALITY
ERTY HUNGER AND WELL-BEING EDUCATION EQUALITY AND SANITATION

INDUSTRY, INNOVATION
AND INFRASTRUCTURE

mentation of smar t living, mobility and protection sea-animals and better understand lifetimes, loss
NO
ORDABLE AND DECENT WORK AND INDUSTRY, INNOVATION REDUCED POVERTY SUSTAINABLE CITIES RESPONSIBLE
AN ENERGY ECONOMIC GROWTH AND INFRASTRUCTURE INEQUALITIES AND COMMUNITIES CONSUMPTION CLEAN WATER
AND PRODUCTION AND SANITATION

of the environment in cities around the world.


REDUCED
INEQUALITIES
and predation. Monitoring of global fish-stocks,
MATE
TION
LIFE
BELOW WATER
LIFE
ON LAND AND STRONG
Smar t grids facilitate distributed power genera-
PEACE, JUSTICE ZERO PARTNERSHIPS
HUNGER FOR THE GOALS
oxygen levels, algal blooms, pollution, temperature
tion allowing for greater local contribution and and currents will be increasingly accurate through
INSTITUTIONS AFFORDABLE AND
CLEAN ENERGY

control of energy. digital systems. Big data can be used to analyze the
SUSTAINABLE CITIES
AND COMMUNITIES

oceans, in terms of biodiversity, pollution, weather


GOOD HEALTH
AND WELL-BEING DECENT WORK AND
ECONOMIC GROWTH

SDG 12: Responsible Con-


RESPONSIBLE
CONSUMPTION
patterns or ecosystem evolution.18 Data collec-
sumption and Production; tion and analysis also forms the foundation for the
AND PRODUCTION
QUALITY
EDUCATION INDUSTRY, INNOVATION

Cloud computing, smar t grids, smar t development of models and strategies to address
AND INFRASTRUCTURE

CLIMATE

metering, and reduced energy consumption of issues that concern the health of the oceans. Ad-
ACTION

GENDER

ICTs all have a positive impact on reducing con- dressing the issue of ship strikes - the collision of
EQUALITY REDUCED
INEQUALITIES

sumption. They offer increased dematerialization


LIFE
BELOW WATER vessels and whales - the International Whaling
and vir tualization as well as innovative ICT appli-
CLEAN WATER
AND SANITATION Commission developed a global ship strike data-
SUSTAINABLE CITIES

cations enabling sustainable production and con- base: an online data entry tool for submitting re-
AND COMMUNITIES

LIFE
NO

sumption. 3D printing can reduce waste, challenge por ts of strikes to identify and prioritize hot spots
ON LAND
POVERTY

AFFORDABLE AND

global supply chains (through localized manufac- where collisions occur. This helps develop an un-
CLEAN ENERGY RESPONSIBLE
CONSUMPTION
AND PRODUCTION

turing) and offer flexibility in the manufacturing


PEACE, JUSTICE
ZERO
AND STRONG
HUNGER
INSTITUTIONS
derstanding of the numbers of collisions, move-
process.15 New business models for small scale
DECENT WORK AND
ECONOMIC GROWTH ments of cetaceans (whales, dolphins and
CLIMATE
ACTION

and customized production are expected to rap-


PARTNERSHIPS
GOOD HEALTH
FORWELL-BEING
THE GOALS
porpoises) and circumstances surrounding colli-
AND

idly expand through the 3D technology’s applica-


INDUSTRY, INNOVATION sions with the aim to reduce these events and
AND INFRASTRUCTURE

tions for both industrial and consumer uses. The maintain healthy and safe waters.
LIFE
BELOW WATER

technology sector as a whole can help to salvage


QUALITY
EDUCATION

an estimated 52 billion dollars per year through SDG 15: Life on Land; Various
REDUCED
INEQUALITIES LIFE
ON LAND

reusing, repurposing and creating new value from


GENDER
EQUALITY
technologies and ICTs are being used
old technology, according to Project MainStream,
SUSTAINABLE CITIES
AND COMMUNITIES
extensively to observe, monitor, track
PEACE, JUSTICE

a circular economy initiative led by the CEOs of and protect terrestrial wildlife from poachers as
AND STRONG
INSTITUTIONS

nine global corporations and backed by the Ellen well as other destructive activities. Wildlife man-
CLEAN WATER
AND SANITATION

MacAr thur Foundation.16 agement using tracking collars is an impor tant


RESPONSIBLE
CONSUMPTION PARTNERSHIPS
AND PRODUCTION FOR THE GOALS

AFFORDABLE AND
CLEAN ENERGY
tool in conservation effor ts. Animals are fitted
SDG 13: Climate Action; Techno-
CLIMATE
ACTION

logical capabilities such as drones, AI and


DECENT WORK AND

big data applications enhance observa-


ECONOMIC GROWTH

LIFE

tions and numerical weather prediction to better


BELOW WATER ICTs OFFER MASSIVE
prepare for severe weather conditions. Integration
INDUSTRY, INNOVATION
AND INFRASTRUCTURE POTENTIAL TO DEVELOP
of available data into long-term climatic datasets is
LIFE
ON LAND
GAME CHANGING SOLUTIONS.
essential to weather forecasting for climate impact.
REDUCED

New chip sensors providing small data can be in-


INEQUALITIES WITH BIG DATA AND
TECHNOLOGIES, THE
PEACE, JUSTICE

tegrated with high-quality measurements (i.e. ob-


AND STRONG
INSTITUTIONS

servations of air quality at high resolution) and


SUSTAINABLE CITIES
AND COMMUNITIES
TIME FOR COMPANIES
new indirect measurements obtained from com-
AND GOVERNMENTS
PARTNERSHIPS
FOR THE GOALS

munication technologies (e.g. rainfall inferred from


UNDERPLAYING
RESPONSIBLE
CONSUMPTION

operational efficiencies of mobile phone net-


AND PRODUCTION

works) are examples of the opportunities to inte- DEFORESTATION, WILDLIFE


grate technology.17 TRADE, POACHING OR
CLIMATE
ACTION

LIFE
BELOW WATER
SDG 14: Life Below Water; Inter- ILLEGAL FISHING IS OVER.
net and satellite maps can be used to ITU.INT
LIFE
track migration patterns of endangered
ON LAND

PEACE, JUSTICE
AND STRONG
INSTITUTIONS

103
PARTNERSHIPS
FOR THE GOALS

TDS final Boek.indb 103 18-12-17 18:56


RESPONSIBLE
CONSUMPTION
AND PRODUCTION

SUSTAINABLE CITIES RESPONSIBLE


AND COMMUNITIES CONSUMPTION CLEAN WATER
AND PRODUCTION AND SANITATION
CLIMATE
ACTION

THE TRILLION DOLLAR SHIFT  MARGA HOEK


PARTNERSHIPS
FOR THE GOALS
AFFORDABLE AND
CLEAN ENERGY
LIFE
BELOW WATER

DECENT WORK AND


ECONOMIC GROWTH
LIFE
ON LAND

INDUSTRY, INNOVATION
AND INFRASTRUCTURE
PEACE, JUSTICE
AND STRONG
INSTITUTIONS

REDUCED

with satellite tracking collars enabling researchers SDG 17: Partnerships for the
INEQUALITIES
PARTNERSHIPS
FOR THE GOALS

and conservationists to monitor individual move- Goals; Implementation and use of


ments and chart habitat and landscape connectiv-
SUSTAINABLE CITIES
AND COMMUNITIES ICTs require coordinated par tnerships.
ity. WWF has trained indigenous populations in In crisis situations, ICT and technological solutions
the use of cutting-edge software, smar tphones
RESPONSIBLE
have demonstrated their power to help govern-
and GPS to gather data and map local communi- ments and par tners craft responsive and resilient
CONSUMPTION
AND PRODUCTION

ties to report on the status of their land.19 Addi- systems to meet the needs of children, youth and
tionally, remote sensing based natural capital adults23. The Emergency Telecommunications
CLIMATE
ACTION

assessments are used to help conservation organ- Cluster (ETC) is a global par tnership of humani-
izations target investments in forest restoration,
LIFE
BELOW WATER
tarian, government and private sector organiza-
guide jurisdictional development planning, and tions. Led by WFP, it works to ensure that all those
map supply risks for corporate sourcing deci- responding to emergencies – including people
sions.20 affected by disaster – have access to vital commu-
LIFE
ON LAND

nication services. Corporate organizations within


SDG 16: Peace, Justice and
PEACE, JUSTICE
AND STRONG
the ICT field are increasingly par ticipating in the
Strong Institu­tions; Blockchain in- development of new solutions. Ericsson Response,
INSTITUTIONS

creases financial inclusion and transpar-


PARTNERSHIPS
for example, has been working closely with the
ency, as blockchain is essentially a global ledger ETC in the design and development of ‘WIDER’
FOR THE GOALS

storing all transactions.21
Big data analytics are al- (Wireless LAN in Disaster and Emergency Re-
ready being used to predict where crimes may sponse), a mechanism designed to enable human-
occur in order to help solve them by deploying itarian workers to access the internet from any
police, etc. Social media is used by citizens to suitable device in any emergency-affected area.
unite and contest injustice. Smar t services and Other par tnerships include ITU/UNESCO Broad-
the Internet of Things help governments optimize band Commission for Sustainable Development
the use of natural resources and improve the de- (2010) ; Alliance for Affordable Internet (2013);
livery of citizen services. Smar t systems can also Connect 2020 (2014); Global e-Sustainability Ini-
help governments identify and manage threats,22 tiative - SMARTer2030 (2015); OECD/G20 work
for example, remote sensors and RFID tags, gen- on Digitization (2015); Global Connect (2016);
erate rich sets of highly accurate georeferenced Par tnership for Sustainable Development Data
digital data about the land, waterways, transpor t (2016); Digital Impact Alliance (2016); World
routes and settlements in a country. This data Bank’s Digital Par tnership for Development
also contributes to the understanding of environ- (2016); WEF’s Future Internet for All initiative
mental trends and activities taking place within (2016); ITU/UN Women EQUALS: The Global
and surrounding a country that would impact its Par tnership for Gender Equality in the Digital Age
citizens. (2016).


“I BELIEVE THAT, IF MANAGED WELL, THE FOURTH INDUSTRIAL


REVOLUTION CAN BRING A NEW CULTURAL RENAISSANCE,
WHICH WILL MAKE US FEEL PART OF SOMETHING MUCH LARGER
THAN OURSELVES: A TRUE GLOBAL CIVILIZATION. I BELIEVE THE
CHANGES THAT WILL SWEEP THROUGH SOCIETY CAN PROVIDE A
MORE INCLUSIVE, SUSTAINABLE AND HARMONIOUS SOCIETY.
BUT IT WILL NOT COME EASILY.”
KLAUS SCHWAB, FOUNDER AND EXECUTIVE CHAIMAN, WEF

104

TDS final Boek.indb 104 18-12-17 18:56


“ IF WE CAN EXTEND THE
INTERNET TO MORE PEOPLE,
WE INCREASE VOICE… WE
INCREASE ECONOMIC
OPPORTUNITY… AND WE
INCREASE EQUALITY.”
SHERYL SANDBERG, CHIEF OPERATING OFFICER AND MEMBER
OF THE BOARD, FACEBOOK, USA

105

TDS final Boek.indb 105 18-12-17 18:56


THE TRILLION DOLLAR SHIFT  MARGA HOEK

3.2 RESPONSIBILITY FOR Unilever is doing by producing more sustainable


energy than they use themselves. Companies in
this field must make this a priority and create
TOMORROW’S WORLD sustainable work facilities and practices. The ICT
and technology industry makes a positive impact
There are several crucial responsibilities related on people and societies, but they need to step
to this industry. The world today and cer tainly, the up their game when it comes to setting the right
world tomorrow revolves around ICT and tech- example and making a positive environmental im-
nology. And, frankly, for the world to continue to pact as well.
revolve with us living on it - for human beings to
have a sustainable future here on Ear th - we need Fur thermore, ‘greening through’ ICT and tech-
to stop all negative impact on our environment nology is the facilitation through technological
and society and scale up the positive impact. ICT solutions of other industries and companies to
and technology, our Four th Industrial Revolution, become sustainable and make a positive impact.
has the momentum and the potential to turn the This is cer tainly where ICT and technology excels
tide. and provides oppor tunities as far as the imagina-
tion can go.
The predominant responsibility of this sector is
the greening of and through ICT and technology.
This essentially entails the pursuit of sustainabili- THE PREDOMINANT
ty within the ICT and technology sector. So the RESPONSIBILITY OF THIS SECTOR
greening of the sector means tech companies
should be watching and reducing their own envi-
IS THE GREENING OF, AND
ronmental footprint, especially related to energy THROUGH, ICT AND TECHNOLOGY.
use and production of products. This is an impor-
tant responsibility to take on now and not later as Secondly and most impor tantly, this sector has the
ICT and technology has already permeated much ability and thus the responsibility to have a wide-
of the day-to-day lives of people throughout the ly shared, radical new look at the oppor tunities
world. And the prospect is that our use and de- that digitalization offers. The emphasis is on the
pendence on ICT and technology will continue to words “widely shared” because without this, the
grow. Therefore, the industry itself must endeavor extremely ambitious targets that the SDGs have
to be environmentally sustainable and be critical set will never be achieved in time. And because
of energy sources. The International Energy Agen- of its ubiquitous permeation worldwide and
cy (IEA) forecasts that by 2020 the ICT industry throughout all sectors, ICT and technology have
will account for more than 14 percent of global the power to revolutionize businesses and propel
energy consumption. The ICT and technology in- sustainable innovation.
dustry is already the fifth largest industry in ener-
gy consumption: It accounts for 2 - 4 % of global Currently, apar t from a few leading multinationals,
energy consumption and carbon emissions, with radical innovation comes from inspired star tups,
an increase of 4 - 5 % per year. Research shows and since they are growing quickly - scale-ups.
that if no action is taken, by 2020 the ICT indus- There are still too many established players in the
try’s CO2 emissions will be double the amount ICT sector who are mainly geared towards solv-
of 2007. ing problems that come up and are focused on
the mantra: ‘You ask, we deliver’. While a better
Therefore, the companies within this sector credo would be: ‘We take our responsibility for
should by now be well on their way towards a tomorrow’s world’, with the underlying driver to
zero impact goal, and should preferably already contribute to sustainability by focusing on inde-
be working towards creating a positive impact like pendent innovation, connectivity, productivity and

106

TDS final Boek.indb 106 18-12-17 18:56


3.2  RESPONSIBILITY FOR TOMORROW’S WORLD

ICT, POLICY AND SUSTAINABLE ECONOMIC DEVELOPMENT

I. INTRODUCTION
The United Nations Sustainable Development Goals (SDGs) call for several advances by the year
2030.1 Although access to and deployment of information communication technology (ICT) are
efficiency.
cited as specificThis resolute
targets commitment
in only to sustaina-
four of the SDGs (4, 5,them
9 andof what is happening,
17), ICT where
plays a role in and
the when. This
bility should be implemented
realization of all of the SDGs. 2 together with the initiative helps to suppor t SDG 16 – Peace, Justice
users as well. Industry partners throughout the and Strong Institutions. It is currently being used
world statement
This policy should also will
aim illustrate
for this. how ICT is equipping in the slums of Kibera,
populations Kenyatoand
with tools Indiapoverty
relieve and has3,
access education, provide healthcare and reduce CO2the potential to
emissions. 4
To be used opportunities
sustain anywhere in theinworld
the long
Anensure
run and exampleefforts
of a company that is taking
are impactful acrosstheir re- (Seeand
geographies Case 15).
cultures, the statement explains how
the ICT ecosystem
sponsibility works and world
for tomorrow’s the contributions business and other relevant stakeholders bring to
is Ushahidi24, an
policy-making efforts.
open-source software platform dealing with social The educational video platform Nafham25 is an-
issues by enabling vulnerable citizens to share, in other example of a responsible business model.
The diagram below presents an overview of the components needed to leverage ICT for sustainable
real-time, testimonies of human rights violations Their business case is shown in Chapter 7.
economic development and their inter-relationship. This diagram will be used throughout this policy
or crisis. They can reach out to people and inform

Figure 10 Components
to leverage ICT for
sustainable economic
development. ICC

1 https://sustainabledevelopment.un.org/post2015/transformingourworld
2 https://www.ericsson.com/res/docs/2015/ict-and-sdg-interim-report.pdf
3 http://csr.cisco.com/casestudy/living-goods-partner
4 http://www.wwf.se/source.php/1183710/identifying_the_1st_billion_tonnes_ict.pdf

2 INTERNATIONAL CHAMBER OF COMMERCE

107

TDS final Boek.indb 107 18-12-17 18:56


15 NO
POVERTY
IMPACT SDGS
CASE NO. USHAHIDI
Syria Tracker and SafeCity
Humanitarian Trackers - Helping people raise
their voices through technology
Case applied in: Syria and India
Headquarters located in: Nairobi
www.ushahidi.com

ZERO
HUNGER SDG 5 THE MOBILE APP IS EASY TO USE AND IS A LONG-AWAITED ADDITION TO THE
Gender Equality SOLUTION. WE LOOK FORWARD TO FURTHER DEVELOPMENTS FROM USHAHIDI TO
GOOD HEALTH
AND WELL-BEING
Since 2012, collected over
HELP ORGANIZATIONS LIKE OURS TO USE TECHNOLOGY FOR GOOD IN
10,000 stories from over
A VERY ECONOMICAL MANNER.
50 cities in India, Kenya,
QUALITY
EDUCATION
Cameroon and Nepal
ELSAMARIE D’SILVA, FOUNDER AND CEO OF RED DOT FOUNDATION (SAFECITY)
to create awareness on
harassment and abuse against
GENDER
EQUALITY

women and disadvantaged Ushahidi, which in Swahili means “testimony”, is over 5,700 repor ts from people on the ground,
CLEAN WATER
AND SANITATION communities. an application that was created to repor t the vi- helped trigger aler ts to those nearby, and brought
olence in Kenya after the post­election conflict transparency to the instability of a region in crisis
SDG 10 in 2008. Since then, thousands have used this (SDG 10). It is the longest standing repor ting tool
crowdsourcing tool to defend democratic values in Syria, and the repor ts they have helped to sur-
AFFORDABLE AND
CLEAN ENERGY

Reduced Inequalities
and raise their voice for freedom. Media sources face have been used by The Washington Post, the
Given people a voice
DECENT WORK AND and newspapers are using Ushahidi today in or- United Nations, and USAID.
through 10 million posts or
ECONOMIC GROWTH

der to survey strikes all over the world by using


testimonials. data and live communication tools. Ushahidi is a The second solution is SafeCity, which uses
social enterprise that provides software and ser- Ushahidi technology to help make cities in India
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

SDG 11 vices to numerous sectors and civil society to help safer for women, giving them a way to anon-
REDUCED Sustainable Cities and improve the bottom up flow of information. The ymously and safely repor t on harassment and
company believes that “if marginalized people are abuse (SDG 5). UN Women states that 1 in
INEQUALITIES

Communities
Deployed information over able to easily communicate to those who aim to 3 women face some kind of sexual assault at least
SUSTAINABLE CITIES
serve them, then those organizations and gov- once in their lifetime, and in India a rape occurs
120,000 times.
AND COMMUNITIES

ernments can more effectively respond to their every 20 minutes. SafeCity has gathered nearly
communities’ immediate needs, while simultane- 10,000 repor ts over the past few years. This re­
RESPONSIBLE
CONSUMPTION
AND PRODUCTION SDG 16 ously bringing global attention to their problems al-time repor ting of danger or potential danger to
Peace, Justice and Strong through the aggregation of their voices.” women has allowed SafeCity to advocate to cities
CLIMATE
ACTION Institutions for more street lighting, awareness campaigns, and
Allowed 25 million people Ushahidi’s solutions help people live in a safer and improved city resources to protect women.
to be reached in critical more just society (SDG 16). Two of these notable
solutions, Syria Tracker and SafeCity, are instances The Ushahidi tool facilitated the creation of these
LIFE
BELOW WATER

situations.
where Ushahidi technology has been used to de- two organizations and allowed them to dedicate
ploy innovative products that benefit society. The their resources to solving these problems, instead
SDG 17
LIFE
ON LAND

first is the humanitarian crowdsourcing platform of having to spend them building technology from
Partnerships for the Goals Syria Tracker, which has used Ushahidi technology scratch. Syria Tracker and SafeCity, created with
Partner with leading for over 6 years to collect first­hand repor ts of the use of Ushahidi technology, are helping to
PEACE, JUSTICE
AND STRONG
INSTITUTIONS

foundations and organizations the violence going on in Syria. Years of violence protect civilians in Syria and bring transparency
PARTNERSHIPS
FOR THE GOALS to increase access to has disrupted Syria and about 40% of its people to human rights abuse of women in India (SDGs
have been displaced, including millions who have 11 & 17).
information, empower citizens,
fled the country. Syria Tracker has now gathered
and protect marginalized
communities.

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CHALLENGE
To help people connect and
raise awareness of danger or
crises.

“ USHAHIDI’S
SOLUTIONS HELP
PEOPLE LIVE IN A
SAFER AND MORE
OPPORTUNITIES FOR SCALE
Ushahidi partnered with Devex to contribute to
#DataDriven which explores  the power of data

JUST SOCIETY.”
to achieve development outcomes in every sec-
tor. Ushahidi contributes with data collection and
developmental visualization to further the deploy-
ment of the SDGs. Ushahidi has created other
digital platforms including RollCall for teams to
reach each other during crises; BRCK to connect
to internet no matter where you are; SMSsync
turning phones into an SMS to URL gateway; and
CrisesNet which helps to format and expose cri-
sis data in a simple, intuitive structure. Ushahidi
continues to develop new ways for technology to
contribute towards safer communities.

Sources and further information


• https://www.ushahidi.com/about
• https://www.ushahidi.com/blog/2016/07/19/
ushahidi-partners-with-devexs-datadriven-
campaign
• https://www.ushahidi.com/blog/2016/09/26/
two-ushahidi-deployers-selected-for-un-
solutions-summit
• https://syriatracker.crowdmap.com/
• http://safecity.in/
• https://www.washingtonpost.com/world/syrian-
refugee-crisis-map/2013/12/13/f45b570e-
645b-11e3-a373-0f9f2d1c2b61_graphic.
html?utm_term=.7f218cd3c62f
• https://pages.devex.com/about-devex

TDS final Boek.indb 109 18-12-17 18:56


“ GOALS ARE ONLY
WISHES UNLESS
YOU HAVE A PLAN.”
MELINDA GATES, BILL & MELINDA GATES FOUNDATION

TDS final Boek.indb 110 18-12-17 18:56


3.3  SETTING THE COURSE COMES WITH A TREMENDOUS PRIZE

3.3 SETTING THE COURSE ness solutions for the SDGs not only serves the
world, it serves the companies as well. It unlocks
markets, connects to both current and future
COMES WITH A TREMENDOUS needs of customers and is thus not only a profita-
ble but also sustaining business strategy.
PRIZE
The list of startups, and fast growing scale-up DELIVERING THE SDGs COULD
initiatives is long, as technology is inspiring a GENERATE OVER 12 TRILLION
plethora of applications across all sectors. It is an
exciting time as the technological possibilities are
DOLLARS’ WORTH OF BUSINESS
explored. There is tremendous potential for inno- OPPORTUNITIES.
vation. But what is currently lacking is large-scale
contributions by big, financially strong ICT com- For tunately, there is some movement in this direc-
panies towards tackling the flaws in our current tion by big companies such as Nokia.26 In 2015,
economic, social and ecological system. for example, Nokia focused on the SDGs to use
their technology to “improve public safety and
For large-scale positive impact, underpinned by the resilience of communities to extreme weath-
the ICT and technological tools at our dispo­ er changes; connect the unconnected; explore
sal, there needs to be more focus on the SDGs. the possibilities around digital health; and launch
The entire ICT industry, companies big and small, products that decrease CO2 emissions from net-
should set their course towards contributing to work infrastructure.” They have estimated that
the realization of the SDGs. Some large compa- there will be 50 billion connected devices in 2025,
nies, such as Nokia and Huawai, are setting their which makes SDG 9 (Infrastructure, Industry and
course in the right direction as they recognize Innovation) the most material one in terms of
that business for good is good business, and con- improving people’s lives with technology. Huawai
tributing to the realization of our Global Goals also sees many oppor tunities and is involved as
comes with a trillion dollar prize. well in expanding connectivity worldwide, so
people around the globe can benefit from ICT
As estimated by the Business and Sustainable De- and technological solutions. One of Huawai’s pro-
velopment Commission, “Delivering the SDGs jects along the SDG pathway was to facilitate mo-
could generate over 12 trillion dollars’ worth of bile access to health care in China (See Case 16).
business opportunities.” So strong focus on busi-

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16 NO
POVERTY
IMPACT SDGS
CASE NO. HUAWEI
Enable full connectivity and create a more
sustainable future.
Deliver innovative ICT solutions that drive the
digital transformation of all industries
Case applied in: Asia
Headquarters located in: China
www.huawei.com

ZERO
HUNGER SDG 3 TODAY, MOST VITAL INFRASTRUCTURE IS CONTROLLED BY ICT: POWER GRIDS,
Good Health and WATER SUPPLIES, TRANSPORTATION HUBS, AND MORE, THIS MAKES ICT
GOOD HEALTH
AND WELL-BEING
Well-Being
INFRASTRUCTURE AN ECONOMIC CORNERSTONE, NOT JUST FOR UTILITIES
Provided a telemedicine
AND LOGISTICS, BUT FOR EMPOWERMENT. BROADBAND ACCESS ENABLES PEOPLE TO
platform for people in remote
QUALITY
EDUCATION
areas of China to access
OBTAIN EDUCATION, START BUSINESSES, CREATE JOBS, AND MUCH MORE.
medical care. KEVIN (JINGWEN) TAO, CHAIRMAN, CORPORATE SUSTAINABLE DEVELOPMENT COMMITTEE,
GENDER
EQUALITY
HUAWEI TECHNOLOGIES CO LTD.
SDG 9 Huawei believes investment in technology is a covers hospitals across the province’s cities,
CLEAN WATER
AND SANITATION Industry, Innovation and key accelerator to help nations achieve the SDGs. counties, townships, and villages. The system uses
Infrastructure Maintaining a strategic focus to incorporate the high-quality video conferencing systems (also
Supported 1,500 customer SDGs into its core business, the company has built known as telepresence systems) to connect the
over 1,500 networks in par tnership with telecom provincial hospital, 18 city­level hospitals, 130
AFFORDABLE AND
CLEAN ENERGY

networks. Provided mobile


carriers, creating value for customers and helping county-level hospitals, ambulances throughout the
signals to Mount Everest
DECENT WORK AND connect over one-third of the world’s population province, and hospitals in townships and villages
Camp; Deployed 100G
ECONOMIC GROWTH

(SDG 9). Their primary goal is to build a robust which are now in trial operation. The telemedi-
submarine network in ecosystem to sustain long-term development and cine platform can offer all nine remote medical
the Arctic Circle to meet deliver innovative ICT solutions that drive the services suggested in the national telemedicine
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

communications needs in digital transformation of all industries (SDG 11 standards, making it China’s largest, most com-
REDUCED Greenland. & SDG 13). prehensive telemedicine system. Each year, the
hospital provides more than 10,000 remote con­
INEQUALITIES

In addition to focusing on boosting economic sultations and 30,000 remote diagnoses.


SUSTAINABLE CITIES
AND COMMUNITIES
SDG 11 growth in areas where they operate, their own
Sustainable Cities and profit margins have grown as a direct result of With the hospital’s data growing dramatically, it
Communities their sustainable activities. Huawei’s annual reve- is becoming increasingly impor tant to effective-
RESPONSIBLE

Increased energy efficiency of nue was CNY 521,574 million (US $77 billion), up ly handle and apply this data. To meet this need,
CONSUMPTION
AND PRODUCTION

major products by 23%. Used 32% year­on­year. Over the past five years Hua­ Huawei has built a big data platform that enables
CLIMATE
ACTION green packaging in 60% of wei has increased its revenue by 24%, operating the hospital to store and process huge volumes
profit by 23%, and cash flow from operating activ­ of data. This platform allows the hospital to ac-
products to reduce the use of
ities by 18%. One of Huawei’s endeavors to utilize cess data more quickly and provide more efficient
wood by over 123,000 m3.
their technological exper tise to help accelerate management. It also enables easy and rapid analy-
LIFE
BELOW WATER

the SDGs is their solution to a problem in the He- sis of data to turn it into critical insights. The result
LIFE
ON LAND
SDG 13 nan province of China where healthcare resourc- of the project is more effective remote consulta-
Climate Action es are inaccessible in a timely fashion for many tions and better care for patients. Huawei is com-
Reduced CO2 per unit of sales people. To address this issue, Huawei has provid- mitted to providing leading telemedicine solutions
ed a professional telemedicine solution, enabling to address inequalities and inefficiencies in health­
PEACE, JUSTICE

revenue by 20.6% in 2016;


AND STRONG
INSTITUTIONS

Guaranteed network stability remote consultations and remote diagnoses for care, and is thus working with the First Affiliated
patients as well as distance training for doctors Hospital of Zhengzhou University to establish a
during 200 major events and
PARTNERSHIPS
FOR THE GOALS

(SDG 3). In partnership with the First Affiliated joint innovation center to promote and develop
natural disasters worldwide. Hospital of Zhengzhou University and the Henan the use of telemedicine and big data so as to im-
Health and Family Planning Commission, Hua- prove health outcomes.
wei has deployed a telemedicine platform that

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CHALLENGE
To use technology to
help achieve many SDGs,
and address healthcare
inequalities, inefficiencies,
and inaccessibility in China.

“ HUAWEI BELIEVES
OPPORTUNITIES FOR SCALE
INVESTMENT IN
TECHNOLOGY IS A
Huawei’s telemedicine solution can be expand-
ed to other regions. Additionally, the company
plans to invest in four key areas to drive tech-

KEY ACCELERATOR
nology breakthroughs: devices, connectivity, cloud
computing and chipsets. Huawei partners with
more than 20 global players to look at how mo-

TO HELP NATIONS
bile technology can promote various vertical in-
dustries. The company recently launched X Labs
which will comprise of three new research labs

ACHIEVE THE SDGs.”


that will explore various use cases for mobile ap-
plications, drive innovation, and promote an open
industry ecosystem.

Sources and further information


• http://www.huawei.com/en/news/2017/6/
Critical-Role-UN-SDGs
• http://www-file.huawei.com/-/media/
CORPORATE/PDF/Sustainability/2016-
Huawei-Sustainability-Report-en.pdf?la=en
• https://www.fastcompany.com/company/huawei
• http://www.huawei.com/en/sustainability/digital-
divide/digital_technology#China-Telemedicine-
Initiative-en-ru
• http://www.activetelecoms.com/news/
telecom-industry/telecom-vendors/huawei-
consumer-business-group-ceo-addresses-plans-
for-future-ai-development
• http://www-file.huawei.com/-/media/
CORPORATE/PDF/publications/winwin/27/
win-win-27-en.pdf

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

THE LEARNING CURVE TO IMPACT AND PRIZE


Each new technology goes through a learning
“ICTs WILL BE ABSOLUTELY
curve in which the technology passes through
several “generations” of improvement. Each of CRITICAL TO MEETING EACH
these generations often carries lower costs, great- OF THE 17 SDGs AND MOBILE
er resilience, easier use, and wider applicability. TECHNOLOGY WILL CONTINUE
ICT has the unprecedented potential to speed up
these generational cycles. Because of enhanced
TO BE AT THE VERY HEART OF
information flows, open sourced applications and FUTURE DEVELOPMENT.”
inter-operability, gains made by one developer can
be picked up and improved by others.27 This type HOULIN ZHAO, SECRETARY-GENERAL,
of upgrading process has accelerated, with the INTERNATIONAL TELECOMMUNICATION UNION
‘winners’ of this intense competition often carry-
ing home the ‘prize’ of a large dominance over
much of the global market. While globalization
has blurred the boundaries of country borders To reach the Goals set by the SDGs and to reap
for business transactions and technological de- the trillion dollar prize, employing SDG paths
velopment, individual countries can and should rather than continuing business-as-usual (BAU) is
speed up their own learning curves and shor ten vital. As illustrated in figure 11, the BAU path will
the time of each technology generation, especially suppor t par tial achievement of the Goals but will
for ICT-based solutions that have a strong local not be sufficient to facilitate full achievement. A
content (e.g. education, healthcare, agriculture, concer ted shift is needed in the business strategy
and environmental management). to reach the Goals and reach the prize.

Figure 11 Comparison 100


of BAU and SDG Paths
90
SDG Path
80

70

60
BAU Path
50

40

30

20

10

0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

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3.4  THE DIGITAL DIVIDE

3.4 THE DIGITAL DIVIDE to be connected to the internet, and there needs
to be more widespread internet availability es-
pecially to rural areas and in developing nations.
The possibilities for improving people’s lives The “Tipping Points” shown in the figure below
through technological solutions are endless, but are exciting but also integral par ts of the four th
let’s not lose sight of the current reality that 3.9 industrial revolution. And those without internet
billion people have no – or minimal- access to the access will not be able to par ticipate in terms of
internet. More than half of the global population progress, nor will they be able to take advantage
remains cut off from Information and Communi- of innovative solutions to the challenges they face.
cation Technology (ICT), according to the Interna- The course is clear : the ICT and technology sec-
tional Telecommunications Union’s (ITU) repor t tor must create large-scale solutions, focus on the
ICT Facts & Figures 2016. In developed coun- SDGs, and expand internet connectivity.
tries, 81 % of the population has internet access,
compared with 40 % in developing coun­tries and
15 % in the least developed countries. Further- REVOLUTIONIZING BUSINESS BY ICT & TECHNOLOGY
more, despite falling prices for ICT services, re- The ICT and technology sector is characterized
search shows that mobile broadband growth is by innovation and rapid development. The uptake
slowing.28 Internet usage rates are also higher for of technological innovations usually follows an
men than for women in all regions of the world. S-shaped curve as explained in the Ericsson re-
The global internet user gender gap grew from por t ICT and the SDGs29 and shown in figure 12.
11% in 2013 to 12 % in 2016. Africa makes up the “The diffusion (or uptake) of the technology typ-
largest regional gender gap at 23 %, and the small- ically star ts at a very low level, and initially will in-
est being in the Americas at only 2 percent. Al- crease only gradually. After some time, the uptake
though almost one billion households in the world of the technology will accelerate. Later on, as the
now have internet access (of which 230 million coverage rate approaches 100 %, the growth will
are in China, 60 million in India and 20 million in slow again and finally come to a halt when cover-
the world’s 48 LDCs), there are still large differ- age is complete.”
ences around the globe. Figures for household ac-
cess show the large gap in the digital divide, with 120 Figure 12
84 % of households connected in Europe, com- 100 S- shaped technology
pared with 15.4 % in the African region. 80 diffusion curve.
60

40
FOR ICT TO IMPACT THE WORLD, 20

THE WORLD MUST BE CONNECTED. 0


10

15

20

25

30
20

20

20

20

20

More needs to be done to make internet available


to everyone and close the digital divide. For ICT Given this typical trajectory, projections have been
to impact the world, the world must be connect- made about new technologies that are emerging
ed. At the rate ICT is developing, this digital divide but have not yet taken hold universally. Some
will become more pronounced if it is allowed to of these projections were illustrated as “Tipping
continue. Without internet connection, people Points” in a recent WEF repor t called Technology
will be left behind. They will not be able to ben- Tipping Points and Societal Impact.30 As shown in
efit from so many of the innovations that could Figure 13, in the next ten years we can expect ex-
positively affect their lives and their communities. plosions in the use of Robotics, Internet of Things,
Looking at figure 13 there are big things in store Blockchain, 3D Printing, AI, Driverless Cars, and
in the ICT and technology realm. But people need more.

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

Figure 13 Average Year


Each tipping Point is 2018 2021 2022 2023 2024 2025 2026 2027
Expected to Occur
– Storage – Robot and – The Internet – Implantable – Ubiquitous – 3D Printing – Driverless – Bitcoin
for All Services of and for Technologies Computing and Cars and the
Things Consumer Blockchain
– Big Data for – 3D Printing Products – AI and
– Wearable Decisions and Human Decision-
Internet Health – AI and Making
– Vision as the White-Collar
– 3D New Interface – The Jobs – Smart Cities
Printing and Connected
Manufacturing – Our Digital Home – The Sharing
Presence Economy

– Governments
and the
Blockchain

– A Supercomputer
in Your Pocket

3.5 THE FOURTH to protect human civilization.33 Leaders who are


watching the rapid technological advancements
closely know that technology has the very real po-
INDUSTRIAL REVOLUTION & TEN tential to serve good or bad. Cyber-security is a
growing and critical concern. In the thrust to con-
BREAKTHROUGH OPPORTUNITIES nect the entire world’s population to the internet,
and create more automated devices, we need to
The explosiveness of technological innovation recognize the vulnerability that comes with that.
and usage are signs that we have entered a new
era. It has been called the “Four th Industrial Revo-
lution.”In the first industrial revolution, water and THE FOURTH INDUSTRIAL
steam power was used to mechanize production; REVOLUTION HAS THE POTENTIAL
the second used electric power to create mass
production; and the third used electronics and
TO BRING ABOUT GREAT
information technology to automate production. CHANGES, BUT ALSO PERILOUS
Now the fourth industrial revolution is building ONES AS WELL.
on the third, and is characterized by “a fusion of
technologies that is blurring the lines between the Developers and regulators must keep a close eye
physical, digital, and biological sphere.”31 on the ramifications of technological advances and
implementation. Caution should not be thrown
Klaus Schwab, Founder and Executive Chairman to the wind in order to embrace the next great
of the World Economic Forum, and author of the thing. Cyber-security is vital as is cautious and eth-
book: The Fourth Industrial Revolution calls for lead- ical progress. The fourth industrial revolution is by
ers and citizens to “together shape a future that definition a fundamental and rapid change. The
works for all by putting people first, empowering fast-paced changes that we are experiencing are
them and constantly reminding ourselves that all exciting but should be done with positive purpose.
of these new technologies are first and foremost Let’s all keep our eye on the ball, focus, and take
tools made by people for people.”32 Elon Musk responsibility to ensure that this revolution helps
and others have also been vocal recently about mankind to achieve positive change for societies
the advancements in Artificial Intelligence (AI), and our environment. The SDGs are the guiding
warning governments and industry to regulate AI light to keep us on the right track.

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3.5 T HE FOURTH INDUSTRIAL REVOLUTION & TEN BREAKTHROUGH OPPORTUNITIES

TEN TECHNOLOGICAL BREAKTHROUGHS: OPPORTU- 3.2 BILLION INTERNET USERS IN 2015 Figure 14 & 15
NITIES FOR POSITIVE IMPACT Internet users 2015
The technological breakthroughs have come and Developed countries & Gap in Internet
are still coming in rapid succession, and they of- user penetration rate
ten use a blend of ICT and technology in their between males and
designs. The following list categorizes technologies females34
with the greatest influence on how we live, work Developing countries LDCs
and achieve the SDGs.

Mobile Telephones & Internet


Communication

Social Media and E-commerce

Big Data and Small Data

Smart Grids
3.2 billion people globally were online. While in
3D Printing (also known as Additive developed countries about 80 % of the popula­
Manufacturing) tion was using the internet in 2015, only one­third
of the population in developing countries was
Robotics & Artificial Intelligence (AI) online, and merely one out of ten people in the
Least Developed Countries (LDCs) are currently
Driverless Vehicles using the internet (figure 14 above). Internet user
penetration rate was about 11 % lower for fe­
Drones males than for males, globally (figure 15).

Internet of Things (IoT)


28.9
Blockchain and Cyber-Security
15.4
5.4 11.1

1. Mobile and Internet Communication


have connected the world and impacted socie-
Developed World Developing LDC

ties in all countries. Mobile communication has The gap in internet user penetration rate between males and females in 2015

evolved into internet connectedness which has


opened the door to infinite possibilities and 2. Social Media has increased the ability for
knowledge. Mobile phones are steadily being re- people all over the world to easily communicate
placed by smartphones, extending the function­ with their personal networks. Organizations have
ality of this technological innovation to facilitate increased effor ts to take advantage of their online
not only telephone communication but internet presence in order to gain greater access to their
communication as well. This extension of mobile customers, and to gather information on custom-
access to internet holds the potential to unlock a ers’ needs and preferences so as to customize and
variety of markets including the growth of small- enhance the quality of services offered. Gathering
holder farms in developing nations, and peer- and communicating information from surrounding
to-peer commerce. Internet access has grown communities, and repor ting the results through
substantially over the last decade and by 2015, the use of SMS or internet-based applications,

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

has engendered a new level of transparency and ative and actionable. Small data provides details
accountability within the systems and structures of specific behavior or current situations that are
that affect the lives of even the most vulnerable locally relevant, it augments and complements big
populations. Social media creates new and faster data at the micro and citizen level.
ways to communicate and share information; it
gives a voice to all people including those in low 4. Smart grids are par t of the digitization of
resource settings, increasing their confidence and the energy sector and allow for two-way traffic
ability to influence decisions and structures that of energy. That is to say that in contrast to cur-
impact their communities and families. 
 rent energy grids, which supply energy to con-
sumers, smar t grids can also collect energy from
3. Big Data and Small Data are the vari- consumers. Smar t grids also facilitate internet
ous data that are collected and then analyzed to communication by creating multi-pathways for
give insights into behavior, trends, and patterns. Big communication to flow from and to several
data is the technological facilitations of informa- sources and contact points. By connecting gener-
tion collection. It provides the statistics needed for ation and consumption and enabling the multidi-
reporting, pattern analysis, and strategic planning. rectional flows of energy and information, smar t
Big data analytics is helpful regarding the SDGs as grids improve the efficiency of the overall energy
this technology makes it feasible to identify trends system. Digital technologies can use information
and gather information per tinent to measuring on the consumption patterns to ease transmis-
how close or how far we are from achieving our sion congestion by dispatching distributed power,
Global Goals. Small data is a specific set of infor- as opposed to tapping into distant power re-
mation that is characterized as accessible, inform- sources through the transmission grids.

5. 3D printing, which is also referred to as


Additive Manufacturing is an evolving technology
which is still in its early stages. There is a lot of
SERVICES THAT WILL experimental innovation in 3D printing especially
BE NEEDED AS SMART related to different kinds of filaments from plastics
GRIDS BECOME MORE to human tissue to food. Also, reduction of price
to produce 3D printers and sustainable and cheap
COMMONPLACE INCLUDE:
energy to run the printers are being explored in
HOME ENERGY MANAGEMENT, order to make 3D printing a solution to many of
ADVANCED METERING the problems faced in developing countries. This
INFRASTRUCTURE, type of manufacturing allows for a product to be
made at multiple locations anywhere in the world,
DISTRIBUTION AND eliminating many traditional supply chain and pro-
SUBSTATION AUTOMATION duction costs associated with traditional manu-
COMMUNICATIONS, facturing. It also reduces waste associated with
traditional manufacturing processes and allows
ASSET MANAGEMENT AND non-traditional raw materials to be combined
CONDITION MONITORING, with mainstream materials as a means to mitigate
DEMAND RESPONSE, raw material shor tages and reduce environmental
impact. 

SOFTWARE SOLUTIONS, AND
ANALYTICS. 6. Robotics and AI development has surged
in both industrial and consumer robot applica-
TECHREPUBLIC.COM tions. There is an integration of advanced robot-
ics into the IoTs that are helping to solve some

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3.5  THE FOURTH INDUSTRIAL REVOLUTION & TEN BREAKTHROUGH OPPORTUNITIES

Figure 16
Robotics and the SDGs
PA Knowledge Ltd;
Global Compact

“IT IS ESTIMATED THAT SELF-DRIVING CARS COULD REDUCE


DEATHS ON THE ROAD BY 90%. THAT IS ALMOST 30,000 LIVES
SAVED EACH YEAR IN THE US ALONE AND US $190 BILLION
DOLLARS SAVED EACH YEAR IN HEALTHCARE COSTS ASSOCIATED
WITH ACCIDENTS.”
MCKINSEY.COM

of the world’s most challenging issues. One main 7. Driverless Vehicles have made significant
breakthrough that is also driving the robotics re­ advances over the past five years, with the poten-
volution is artificial intelligence (AI) and enhanced tial to offer huge societal advantages. This technol-
machine learning more generally. Machine learn- ogy eliminates vehicle collisions by making roads
ing algorithms are enabling rapid breakthroughs safer, optimizing the movement of vehicles by re-
in robotics pattern recognition, voice recognition, ducing congestion and improving efficiency, and
natural language capabilities, and problem-solving freeing time for drivers to do other things. Pilot
capacities. Robots not only have the capacity to projects are well underway, and once the technol-
handle many menial tasks, they are moving into ogy is perfected and accepted, driverless vehicles
areas of more advanced capabilities to enter the have the potential to become widespread and
high-tech service economy in legal analysis, medi- have significant impact on people’s lives. Autono-
cal diagnostics, and other areas of complex prob- mous road vehicles are also opening up new busi-
lem solving that will assist in achieving progress. ness oppor tunities. Changing ownership models,

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

as people buy mobility only when they need it, al- tion and action means there are fewer missed
lows vehicle assets to be used more which results oppor tunities for conservation. IoT technology
in a reduction in transpor t costs. Although current provides society with a more connected future.
activity in this area is focused on the developed Sensors within technologies will monitor prod-
world, there is also great potential in the develop- ucts throughout their life cycle and aler t users
ing world and these areas could perceivably jump when older products can be easily repaired or
ahead in implementation. refurbished. There is potential for these sensors
to signal to manufacturers which components
8. Drones have proven to be a good way to gen- can be repurposed and reused, saving both the
erate low-cost data that can provide insights such environment and possibly trillions of production
as crop health so farmers can make more informed dollars.
decisions. To gather this information, drones are
often equipped with infrared cameras to analyze 10. Blockchain and Cyber-Security are
photosynthetic levels; the higher the photosyn- impor tant developments resulting from our de-
thetic levels, the healthier the crops. In this way, pendence on technology and the need for trans-
they enable farmers to make informed decisions parency but also privacy. Blockchain is an open
on effective pesticide use. Drones are also star t- sourced digital ledger that allow users to record
ing to be used at the sub-national and local lev- and trace all types of transactions. Blockchain is
els for other purposes. Officers from protected mainly used for financial transactions, and pro-
areas, environmental managers, ecologists, wildlife vides an alternative to conventional banking by
researchers, and rangers have all been engaged to allowing users to keep track of financial pay-
explore the use of drones in their work. Drones ments. Blockchain is also used for energy trans-
provide real-time information and are therefore actions in smar t grids providing a means to keep
extremely useful in crisis situations such as forest track of electricity consumed and delivered. It
fires and are being integrated into disaster pre- transforms the role of business in the energy
paredness and response operations. Information transaction from that of the service provider to
captured by drones can help prepare for extreme that of the consumer enabler. Additionally, block-
weather intensified by ongoing shifts in climate. chain is used as an integral par t of cyber-security.
The technology’s codes allow people all over the
world to take control of their digital identities.
The sophisticated record-keeping databases of
ANNUAL DISASTER blockchain can help people verify their identity,
LOSSES NOW AVERAGE get access to banking services, to insurance, and
many other financial products. Blockchain’s ability
US $200 BILLION DOLLARS to give people control over their digital identities
GLOBALLY. makes it an increasingly impor tant tool in miti-
gating inequality around the world, and helps to
DOCUMENTS.WORLDBANK.ORG
protect people from fraud. Cyber-security is es-
sentially ICT protecting itself against infiltration.
This is impor tant for our privacy, and our sense
9. Internet of Things (IoT) technology has of trust in technological devices and software.
the potential to help us create a more sustainable Improvements in the sophistication of cyber-se-
world. IoT is both communicative and analytical curity goes hand-in-hand with advances in ICT
and therefore has the capability to help solve and technology.
the SDGs. For example, ecosystems – both tech-
nological and environmental – are too complex These ten technologies are poised to shape the
for analysis and action by any single technology. way we do business. Technological innovations
Thus, technology-to-technology communica- and applications can be incorporated in all sec-

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3.5 T HE FOURTH INDUSTRIAL REVOLUTION & TEN BREAKTHROUGH OPPORTUNITIES

tors to expand and enhance products and servic­ just 10 shor t years, the amount of people with
es. As you read more about these technological smar tphones has shot to 2.5 billion, that is a third
advances and consider how they can be inte- of the world’s entire population!35 And the amount
grated in your field, consider too how they can of people with mobile phone subscriptions was
be applied for positive impact of the SDGs. Let’s 4.7 billion in 2016 with the expectation that this
explore the ten technological breakthroughs and number will grow to 5.6 billion in 2020.36 That
find inspiration in their continued development. is nearly everyone in the world with a mobile
phone! Mobile phones have quickly become
the standard throughout the world, and this
technology has even overcome the fact that in
FUNDING IN BLOCKCHAIN developing countries, many areas do not have
COMPANIES INCREASED 79% access to telephone land lines, making mobile
YEAR-OVER-YEAR IN 2016 TO phones a tremendous asset. However, while
mobile phones are prevalent throughout the
US $450 MILLION. world, and most people even have smar tphones
WEFORUM.ORG which could grant them access to the internet,
the connectivity with internet still needs to be
improved and made more widely available. Phone
access has reached areas in the world previously
1. NEW TECHNOLOGIES: MOBILE TELEPHONES AND unconnected, but internet access, in many cases,
INTERNET COMMUNICATION has not become as widespread. Look at the
The emergence of mobile telephones took some figures below and you can see that mobile phone
years to become affordable and mainstream. subscriptions seem to have even exceeded global
Motorola produced the first handheld mobile population by this measure, caused undoubtedly
phone in 1973. It weighed 1.1 kg and you could by people having more than one subscription in
only use it for 30 minutes before needing to some par ts of the world, but internet access –
recharge it for 10 hours. The first touch screen while showing dramatic growth – is still lagging.
smartphone was introduced by Apple in 2007. In

Figure 17
Global ICT
development 2001-2017

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THE TRILLION DOLLAR SHIFT MARGA HOEK

Adults who use the internet at least occasionally or


report owning a smartphone

South Korea 94%


Figure 18 (right) Internet connectivity is now a necessary utility. Australia 93
Most adults in advanced As shown in the overview of technological devel- Canada 90
economies use the opments, new technologies all depend on, or are U.S. 89
UK 88
internet, developing enhanced by, internet connectivity. With internet Spain 87
countries less so connectivity, people throughout the world can Israel 86
Germany 85
tap into the developments taking place; without it, Chile 78
they cannot. Furthermore, with the development France 75
Palest. ter. 72
of apps and knowledge sharing platforms, peo- Italy 72
ple, rich and poor, in every corner of the world, Russia 72
have the potential to gain access to each other, to Turkey 72
Argentina 71
knowledge, to products and to finances. Internet Japan 69
connectivity also brings with it the connection to Poland 69
Malaysia 68
social media. News apps, discussion platforms, in- Jordan 67
ternet shopping, and crowd sourcing, all of which Venezuela 67
have come on the scene relatively recently, yet Lebanon 66
China 65
they are so well-known and commonly used by Brazil 60
people with internet access, that it is hard to Ukraine 60
Mexico 54
remember what life was like without them. This Peru 52
access to information and to each other is inval- Vietnam 50
South Africa 42
uable and has become par t of the daily lives for Kenya 40
many people in the developed world and a par t Philippines 40
of businesses as well. Companies are regularly Nigeria 39
Senegal 31
hiring people whose job is to control their on- Indonesia 30
line presence and monitor and steer social media Ghana 25
India 22
campaigns and interactions with customers. Tanzania 21
Do you own a cell phone? Is it a smartphone? Burkina Faso 18
Figure 19 (left) Pakistan 15
Cellphone but No cell Uganda 11
Few Own Smartphones Smartphone NOT smartphone phone Ethiopia 8
in Africa, But Cell South Africa 34% 55% 10%
Nigeria 27 62 11 GLOBAL MEDIAN 67
Phones Common
Senegal 15 69 17
Kenya 15 67 18 Note: Percentages based on total sample.
Ghana 14 69 17 Source: Spring 2015 Global Attitudes survey. Q70 & Q72.
Tanzania 8 65 27
Uganda 5 60 34 In the repor t produced by GSMA called 2016
MEDIAN 15 65 17
Mobile Industry Impact Report: Sustainable De-
U.S. 64 25 11 velopment Goals37, Mats Granryd the Director
General of GSMA pointed out that while it is
Note: Percentages based on total sample. U.S. data from December
While
2014 mobileCenter
Pew Research phone saturation
surveys. globally
Median percentage covers
excludes predicted that by 2020 nearly 60 % of the world’s
most
the U.S. of the population even in developing coun- population will have access to the internet, this
tries, Spring
Source: and 2014
internet connectivity
Global Attitudes is growing,
survey. Q68 inter-
& Q69. still leaves 40 % without. This 40 % represents
net connectivity must still catch up to the mobile people who need this connectivity the most.
phone levels. The ICT industry has a responsibility Granryd emphasized that this must change and
to play a key role in improving internet access. This the mobile industry is very focused on “extend­
is, in fact, one of the SDG Targets – Target 9c which ing network coverage to rural areas, improving
reads: “Significantly increase access to Information affordability of mobile services, delivering local-
and Communications Technology and strive to ly relevant content and increasing digital skills
provide universal and affordable access to the in- and literacy.” Granryd recognizes the industry’s
ternet in Least Developed Countries by 2020.” impor tant oppor tunity to “leverage the mobile

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3.5  THE FOURTH INDUSTRIAL REVOLUTION & TEN BREAKTHROUGH OPPORTUNITIES

networks that we have built and the services we Greater connection among people on a larger
deliver to help achieve the Sustainable Develop- and broader scale inspires innovations associated
ment Goals.” with this. For example, online customer reviews
is a phenomenon that has also been prompted
This commitment to the SDGs was strongly as- by these extensive connections. And because of
ser ted when the mobile industry became the these review systems, companies such as ebay
first sector to commit to the Sustainable Devel- can function and grow. People would otherwise
opment Goals in February 2016. And it is reaf- be wary of sending money to a total stranger on
firmed in the 2016 Mobile Industr y Report while the promise that the adver tised product will be
also recognizing the challenges that still lay ahead: sent to them in return. But due to the reviews
diminishing the digital divide, making internet and and rating system, a feeling of trust and a sense of
mobile telephone access universal, and at the guarantee is cultivated which correlates with the
same time creating sustainable shared value. same feeling we have when ordering something
from a company. Thus, business based on peer-to-
As shown earlier in this section, ICT and tech- peer sales is now a growing, flourishing business
nology impact all of the SDGs and according to model.
the GSMA repor t, there are four SDGs for which
the greatest impact from the mobile and internet We have seen many companies sprouting up for
communication sector is felt: SDG 9: Industry, In- peer-to-peer car rentals such as SnappCar in Eu-
novation & Infrastructure which relates to the ICT rope and Getaround in the US, for example. This
industry’s endeavors to connect and include all disrupts the hold that car rental agencies have had
communities, stimulating economic par ticipation. over the market. And we have seen peer-to-peer
SDG 1: No Pover ty, by providing equal access to lodging rentals with Airbnb disrupting the hotel
economic resources including financial services. industry. In a study conducted by BrightLocal,38
SDG 4: Quality Education, by providing access to 88 % of consumers trust online reviews as much
educational content and digital resources, as was as personal recommendations. Customer reviews
shown in the previously mentioned Nafham case. and social media have also facilitated more trust
SDG 13: Climate Action, by helping to improve in e-commerce. This has also caused disruptions
emergency communication and warning systems. such as retail stores closing down in favor of on-
line shops. Some e-commerce companies are us-
ing their business model to not only make money
2. NEW TECHNOLOGIES: SOCIAL MEDIA, but to also make a positive impact and contribute
AND E-COMMERCE to the SDGs. Alibaba is one such company, as you
Internet connectivity also facilitates social plat- can read in Case 17.
forms. Worldwide, there are 1.86 billion people
on Facebook, and between the years 2012 and
2013, the amount of local businesses with their
own Facebook page doubled from 8 million to 16
million and by the end of 2015, that number had
jumped to 50 million. The oppor tunities for busi-
nesses to use mobile technology are exponential. 88 % OF CONSUMERS
Facebook is the poster child of the social media TRUST ONLINE REVIEWS
explosion. Since the emergence and popularity
of Facebook, other social media platforms have
AS MUCH AS PERSONAL
flourished as well. Social media, is now common- RECOMMENDATIONS.
place for people worldwide. We use it to connect
BRIGHTLOCAL
to friends, but also to connect to business con-
tacts, with platforms such as LinkedIn.

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17 NO
POVERTY
IMPACT SDGS
CASE NO. ALIBABA GROUP
Rural Taobao; E-Commerce
Using a digital platform to expand access to
goods and services in China and worldwide
Case applied in: China
Headquarters located in: China
www.alibabagroup.com/en

ZERO
HUNGER SDG 10 OUR STRATEGY IS TO SELL GOODS FROM URBAN AREAS TO VILLAGES, AS WELL AS
Reduced Inequalities HELP FARMERS SELL FARMER PRODUCTS TO PEOPLE LIVING IN THE CITIES. THIS WE
GOOD HEALTH
AND WELL-BEING
Generated over RMB20 billion
BELIEVE WILL HAVE A HUGE POTENTIAL IN THE FUTURE.
for merchants in over 800
DANIEL YONG ZHANG, DIRECTOR AND CEO ALIBABA
designated poverty counties
QUALITY

on Alibaba’s China retail


EDUCATION

marketplaces during the


twelve-month period ending in
GENDER
EQUALITY

March 2016. In China, the giant country’s future business move- reach into rural China. As Alibaba expands to these
CLEAN WATER
AND SANITATION
ments will have enormous impact globally. Com- rural areas, they are helping rural farmers market
SDG 11 panies like Alibaba are beginning to look into this their products to urban consumers, and has cre-
Sustainable Cities and opportunity by focusing on how eco­efficiency and ated opportunities for people living in poverty to
a “Lean” agenda could save or make money through elevate their income levels (SDG 10). Alibaba sees
AFFORDABLE AND
CLEAN ENERGY

Communities
better management of the energy and resource rural China as a vast and largely untapped growth
Set up operations in over
DECENT WORK AND flows of commerce. Despite reports of slowing opportunity. At the end of 2014, there were just
16,500 villages in 333
ECONOMIC GROWTH

growth in the Chinese economy, E-commerce gi- 178 million internet users in rural China, fewer
counties, covering 27 ant Alibaba exceeded expectations, reporting that than one in three residents. By December 2016,
provinces in China, with Rural in the fiscal year ending March 31, 2017 revenue the rural coverage was up to 201 million.
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

Taobao Service Centers, had an increase of 56% year­over­year. .


REDUCED connecting these rural areas Over the past few years, Alibaba has invested 10
Alibaba’s new consumer E-commerce business, Ta- billion yuan over the past few years (US $1.5 mil­
INEQUALITIES

to urban through e-commerce


obao, is hoping to reach consumers from the lower lion) in logistics, hardware and training to expand its
interaction.
SUSTAINABLE CITIES
AND COMMUNITIES income demographic in rural parts of China who e­commerce model to 100,000 villages, setting up
face limited choices, high prices and poor quality rural service centers where it provides computers
RESPONSIBLE
SDG 17 of products. Given the dispersed population and and monitors, training local residents to serve as its
Partnerships for the Goals poor logistical infrastructure in these areas, there representatives in the centers. Traditional business
CONSUMPTION
AND PRODUCTION

Cooperate with local is a critical need for better services and retail of- models employed by Alibaba include E-Commerce,
CLIMATE
ACTION governments and populations ferings. In addition to Taobao, which is similar to Layer Player and Long Tail. This involved creating
eBay, China’s largest E-commerce company pre- Rural Taobao Service Centers, where Alibaba pro-
through Rural Taobao Partners
sides over a collection of online platforms including vides internet connections along with purchasing
and support the estimated 600
Tmall and the payment service Alipay. All together, and delivery services that provide goods to con-
LIFE
BELOW WATER

million Chinese that live in these platforms create one of the most sophisti- sumers in these areas, and allows them to sell their
LIFE
rural areas. cated and lucrative online retail ecosystems in the products to other parts of China.
ON LAND

world. With nearly half of China’s population living


in rural areas, there is significant opportunity for Rural Taobao also leverages the reach of its local
digitization and big data infrastructure, urban-rural partners to build a structure for young people to
PEACE, JUSTICE
AND STRONG
INSTITUTIONS

integration and entrepreneurial and employment go back to their hometowns to start their own
PARTNERSHIPS
FOR THE GOALS
expansion (SDG11). businesses (SDG 17). Rural Taobao Partners run
the service centers that provide purchasing and
One of the main reasons for the company's high delivery services.
2016 earnings was the continued expansion and

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CHALLENGE
To provide access to a broad
variety of goods and services
and to help farmers earn more
by selling agricultural products
directly to urban consumers. “ DESPITE REPORTS
OF SLOWING
GROWTH IN THE
CHINESE ECONOMY,
OPPORTUNITIES FOR SCALE
Alibaba estimates that consumption in rural Chi-
na will reach RMB1 trillion by 2020. Eventually, as

E-COMMERCE GIANT
par t of the Lean dimension, Alibaba has ambitions
to repurpose excess capacity by using this same
infrastructure and digital platform to sell vegeta-

ALIBABA EXCEEDED
bles and fruits to the cities to further increase in-
comes for farmers.

Sources and further information


• http://www.reuters.com/article/
us-development-goals-finance-
EXPECTATIONS.”
idUSKCN0RQ0RD20150926
• https://www.devex.com/news/business-leaders-
call-for-new-socially-focused-business-model-
that-embraces-sdgs-89437
• https://www.brookings.edu/research/
links-in-the-chain-of-sustainable-finance-
accelerating-private-investments-for-the-sdgs-
including-climate-action/
• http://www.bbc.com/news/
technology-40509405
• http://for tune.com/2016/01/28/alibabas-rural-
china/
• http://www.alibabagroup.com/en/ir/
pdf/160614/09.pdf
• http://www.alibabagroup.com/en/ir/
ar ticle?news=p150710
• http://www.alibabagroup.com/en/news/press_
pdf/p170518.pdf
• http://cnnic.com.cn/IDR/
ReportDownloads/201706/
P020170608523740585924.pdf

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

Customer reviews, peer-to-peer platforms, of the key strategies to reach this goal is to im-
E-commerce, and social media not only serve as prove the diffusion of technologies. For example,
technological facilitators to new innovative busi- the Brazilian Agricultural Research Corporation,
nesses, they also facilitate grassroots movements. known as Embrapa, has pioneered more than
As mentioned in chapter 1, people do not have to 9,000 technology projects to develop Brazilian
wait for governments and even businesses to ini- agriculture, including using big data techniques to
tiate sustainable practices. The SDGs belong to us optimize crop yields.40
all. And we can make our voices heard. Social me-
dia is far reaching and powerful. Companies now Small data is information often collected to give
have whole departments designated to social me- specific information. For example, big data would
dia. Businesses can utilize social media to promote collect information from health care data centers
their business and adver tise in a whole new way. on diabetes trends in a par ticular country or
Recommendations or ‘word of mouth’ explodes among a cer tain demographic. Small data would
in volume with digital connectivity. On platforms collect information through sensors on a diagnos-
such as Twitter, companies invite feedback from tic tool of a patient’s blood sugar levels over a
their customers and are obliged to respond as given year. Small data is collected in many ways. It
that feedback is public; social media is thus en- could be the data collected by surveys or obser-
suring a higher level of integrity and transparen- vations. It can also be collected using technology
cy from companies. So if people encourage the such as sensors. Small data is integral in drones as
companies they do business with to be more sus- they are designed to collect cer tain data, and inte-
tainable and strive towards achieving the SDGs, grated in AI to respond to cer tain cues, and small
then companies will be more inspired to do so, to data helps drive the progress and integration of
meet their customers’ demands. IoT. Small data collection is seen in watches that
count our steps or parking garages to tell us if
there are any spots available and where they are.
3. NEW TECHNOLOGIES: BIG DATA AND SMALL DATA Big and small data serves many purposes: among
Big data is the collection of a large volume of data them, they promote transparency and help veri-
using hardware and software technology and can fy progress of SDG action. Data also helps busi-
be used to gain insights into trends. It can be very nesses identify how they can realistically commit
helpful in strategic decision-making. It facilitates to the SDGs. Let’s take Southwest Airlines and
monitoring and evaluation and is therefore very its Evolve project as an example. One of the key
useful in the analysis of the progress on the SDGs. elements of the project was fuel efficiency. This
Big data provides much needed statistics to know action combined two issues simultaneously that
where and what the greatest challenges are as addressed cost - fuel efficiency and environmental
well as the impact that is being generated. It can impact. When the airline replaced seat covers and
supply information about where interventions are other interior elements with lighter-weight, more
needed and monitor the process and progress. environmentally friendly materials, it reduced the
weight of each aircraft by more than 600lbs, sav-
Big data technology has several applications. For ing fuel and reducing emissions.41 These outcomes
instance, the large-scale farming market has the had objective measures that could be validated
potential to be wor th US $145 to US $180 billion through data collection, which made the impact
dollars by 2030 with the help of big data. Large- of the project comprehensible to managers, ex-
scale farms (farms with more than two hectares ternal stakeholders and observers. With sharply
of land) account for an estimated 70 % of global focused objectives and measurable outcomes,
land under cultivation. Research from the Business companies can give managers the oppor tunity to
and Sustainable Development Commission has track progress and see success in the numbers. In
shown their yields can be improved by a fur ther this case, we also see that reducing fuel consump-
40 % over the next 20 years (SDG 12).39 One tion delivers shared value: it saves money for the

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3.5  THE FOURTH INDUSTRIAL REVOLUTION & TEN BREAKTHROUGH OPPORTUNITIES

airline and reduces emissions (SDG 13) while also entire region. The collection of both types of
utilizing data for impactful advancements of the data is impor tant in understanding the behavior
Global Goals. of people and overarching influences that affect
energy use. When small and big data are applied
Data collection enables systematic criteria-setting to issues relating to the SDGs, the insights gained
that makes a company’s progress tangible. It al- can be used to focus on strategic and practical
lows managers to track performance against their applications and innovations to move us forward
stated goals and make adjustments when needed. towards achieving the Global Goals.
Big and small data facilitate a data-driven con-
versation and give a structured analysis of what
actions are beneficial and also which ones may 4. NEW TECHNOLOGIES: SMART GRIDS
not be working. In addition, external observers Smar t grids enhance and modernize existing en-
have the opportunity to monitor how closely the ergy grids. The standard energy grid was originally
company is adhering to its public commitments. designed for one-way traffic - supplying energy
It makes the company’s engagement with the from an energy plant to consumers. Now, smar t
SDGs deeper by facilitating investments in com- grids are being designed to suppor t two or mul-
plementary initiatives. With the added element of ti-way traffic. They provide an electricity supply
transparency, data can help build trust among a network that uses digital communications tech-
company’s stakeholders. It facilitates a clear and nology to detect and react to local changes in
comprehensive dialogue on how the business usage.
is saving money, enhancing its brand value, and
achieving its goals. The system is a network of sensors that ena-
ble the remote monitoring of equipment and
resources on an energy smar t grid. Smar t grid
BIG AND SMALL DATA FACILITATE sensors are generally used to collect information
A DATA-DRIVEN CONVERSATION from electrical meters, fault detectors, voltage
generators and other connected devices. They
AND GIVE A STRUCTURED are also used to monitor weather conditions and
ANALYSIS OF WHAT ACTIONS ARE power line temperature. This information is then
BENEFICIAL AND ALSO WHICH used to calculate energy use as well as the line’s
carrying capacity. When the data is analyzed and
ONES MAY NOT BE WORKING. used to adjust the system, the power flow of ex-
isting transmission lines for power companies is
Big and small data complement each other and increased significantly. A smar t grid sensor can
businesses are making good use of both. For ex- also be used within homes and businesses to in-
ample, Disney provides their guests with a wrist- crease energy efficiency.
band fitted with sensors so they can easily check
into their hotel room, buy their lunch and go A smar t grid meta-analysis of 30 business cases
through turnstiles. The wristband tracks the move- for smar t meter projects in 12 countries in 4 con-
ments of the visitor using small data applications tinents, found that on average, the Net Present
and feeds it to a big data collection facility for Value (NPV) of project benefits exceeded the
the company to analyze total visitor traffic which NPV of costs by nearly two to one. The Inter-
they can use to make appropriate adjustments to national Renewable Energy Agency (IRE) repor ts
accommodate more visitors and ensure smooth that studies have found smar t grid technology
flows. In other applications, small data technology to be financially beneficial in several areas of the
can be applied to collecting information about a world. This technology is par ticularly beneficial in
family’s energy use, for example, while big data the Middle East and Nor th Africa where invest-
analytics would be used to collect data from an ments could save the region US $300 million to

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“ THE 2030 AGENDA RECOGNIZES
THE GREAT POTENTIAL OF
GLOBAL CONNECTIVITY TO
SPUR HUMAN PROGRESS.”
ANTÓNIO GUTERRES, UN SECRETARY GENERAL

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3.5  THE FOURTH INDUSTRIAL REVOLUTION & TEN BREAKTHROUGH OPPORTUNITIES

one billion dollars annually while helping to real- KT Corporation is an example of a company that
ize the potential for solar power. 42 Potential in- has used smar t grids to develop its KT-MEG (Mi-
vestments in sustainable technologies in the US, cro Energy Grid).43 The KT-MEG platform was im-
such as smar t grid and renewables, have an NPV plemented in 2015 as a total energy management
of 20 billion to 25 billion dollars based solely on solution that has 1,700 client sites along with
benefits to utilities. 1,400 electric car charging sites across Korea. On
the supply side, the KT-MEG monitoring center
Smart grids monitor and help address several has managed to increase generation efficiency by
important issues, namely: increasing energy con- 20 % through an integrated system that enhanc-
sumption; global climate change; utilization of es the efficiency of various energy sources. On
renewable energy sources; and more efficient the demand side, the system has helped domestic
electricity management. With smart grids, energy hospitals save up to 72 % of energy costs.
generation is becoming decentralized, with people
generating solar energy at their own homes, and Smar t grids and the IoT work together to man-
personal electric vehicles being used as an ener- age electricity systems. Research shows that the
gy source as well. Because of this multi-direction implementation of smar t grid systems has the po-
flow of energy, these systems require increased tential of lowering carbon emissions by approxi-
sophistication in the management of energy sup- mately 12 %45 because of the grid’s response to
ply and demand. People are moving from their information collected. For example, if the smar t
traditional role as consumers – consuming what grid senses that there is no recent electrical activ-
the energy companies provide – to become ‘en- ity in a cer tain home, high-energy devices such as
ergy prosumers’ as they both produce and con- water heaters are automatically turned off. Smar t
sume energy. An energy prosumer is a consumer grids in combination with other technologies can
of energy who also produces energy to provide change the way we consume and ‘prosume’ ener-
for their own needs, and when their production gy, and this can go a long way towards helping to
exceeds their requirements, sells, stores or trades achieve SDG 7 – the provision of affordable and
the surplus energy. clean energy to all.

Figure 20 Smart grid

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18 NO
POVERTY
IMPACT SDGS
CASE NO. SIEMENS
Smart Grid Integration
Energy management - rethinking power for the
better
Case applied in: Australia and New Zealand
Headquarters located in: Germany
www.siemens.com

ZERO
HUNGER SDG 8 BY FAILING TO PREPARE, YOU ARE PREPARING TO FAIL
Decent Work & Economic – ESPECIALLY IN AN INCREASINGLY COMPLEX ENERGY SYSTEM.
Growth
GOOD HEALTH
AND WELL-BEING DR. MICHAEL WEINHOLD, CTO OF SIEMENS ENERGY MANAGEMENT
Australia’s Climate Change
Authority has identified energy
QUALITY

efficiency as the best way to


EDUCATION

reduce CO2 emissions while


improving productivity and
GENDER
EQUALITY

creating jobs. And the federal Siemens’ commitment to the SDGs is embedded in bined with high per-capita income and positive
CLEAN WATER
AND SANITATION government is working with their focus areas on electrification, automation and policy environments for clean technology offer
Siemens to improve energy digitalization. The company is one of the world’s an encouraging environment for smar t grid im-
productivity by 40% by the largest providers of energy­ and resource­efficient plementation.
technologies. Their concentration on smar t grid
AFFORDABLE AND
CLEAN ENERGY

year 2030.
investments will focus on improving the smar t Australia and New Zealand have abundant en-
electricity metering, battery storage, advanced ergy sources and benefit from a reliable energy
SDG 9
DECENT WORK AND
ECONOMIC GROWTH

storage and grid communications sectors to help supply. However, power grids still face growing
Industry, Infrastructure & utility firms improve their energy billing, clean en­ challenges: rising demand, vulnerability to severe
Innovation ergy portfolios and management of grid networks. weather, and the tricky integration of renewables.
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

Cumulatively, Australia and Power outages have an immediate and significant Boosting efficiency and resilience improves the
REDUCED New Zealand will invest impact across all infrastructure domains. Avoiding affordability of power and helps get the grid ready
them requires sensible planning and timely invest- for the future. As of March 2017, New Zealand
INEQUALITIES

$ 6.1 billion in smart grid


ment in the right technologies. For example, in has completed a significant majority of its national
infrastructure over the next
SUSTAINABLE CITIES
AND COMMUNITIES 2006 when 250,000 customers in Auckland had smar t metering rollout, and the Australian state of
decade. their power supply disrupted when a transmission Victoria has completed its statewide rollout. Regu-
RESPONSIBLE
circuit failed, the disruption cost the New Zealand lations in other Australian states and at the national
economy approximately AUD $70 million of GDP. level have been more limited. But Siemens’ invest-
CONSUMPTION
AND PRODUCTION

Siemens’ smart grid solutions make it possible to ments will par ticularly benefit the state of South
CLIMATE
ACTION modernize and adapt existing power grids to fu­ Australia, which has recently suffered from state-
ture expectations (SDG 9). They enable power wide blackouts. New Zealand has accomplished its
operators to manage energy more efficiently, re­ smar t grid rollout without significant regulations,
act more flexibly to changing demand and incor­ due to positive business case indicators. The global
LIFE
BELOW WATER

porate electricity from distributed and renewable grid­connected energy storage sector is expected
LIFE
ON LAND
sources. to expand from a total installed capacity of three
GW at the end of 2016 to 28 GW by 2022, which
Australia and New Zealand are together pre- is equivalent to the power used by 18.6 million
dicted to invest AUD $6.billion in smar t grid in­ households. By incorporating energy storage
PEACE, JUSTICE
AND STRONG
INSTITUTIONS

frastructure between 2017 and 2027. The two across the electric power network, Siemens will
PARTNERSHIPS countries are well positioned to develop and help utilities and communities around the world
FOR THE GOALS

expand projects such as smar t metering, battery to optimize their infrastructure investments, in-
energy storage, advanced sensors and grid com- crease network flexibility and resiliency, and ac­
munications (SDG 8). Strong utilities, unsubsidized celerate cost-effective integration of renewable
power prices and high consumption rates com- electricity generation (SDG 17).

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CHALLENGE
To improve the operations of
utility firms and help countries
secure the reliability of their
grid networks from power
outages. “ SIEMENS’ SMART
GRID SOLUTIONS
MAKE IT POSSIBLE
TO MODERNIZE
OPPORTUNITIES FOR SCALE
Outcomes of the adoption of smart grid technolo-
gies across the Australia and New Zealand region

AND ADAPT
could deliver significant economy wide benefits in
the order of AUD $9.5 to $28.5 billion over 20
years, and lower network prices. There is also po-

EXISTING POWER
tential for all customers to benefit from the intro-
duction of a smart grid – even those customers
who do not actively engage with the smart grid
– by between AUD $156 and $2000 per year.

Sources and further information


GRIDS TO FUTURE
EXPECTATIONS.”
• http://corporate.siemens.com.au/en/home/
about-siemens.html
• http://corporate.siemens.com.au/content/dam/
internet/siemens-com-au/root/siemens-in-
aunz-2015.pdf
• http://corporate.siemens.com.au/content/
dam/internet/siemens-com-au/root/about-
us/siemens-company-presentation-au-nz-
march-2017.pdf
• http://www.nor theast-group.com/reports/
Brochure-Oceania%20Smart%20Grid-
Market%20Forecast%202017-2027%20-%20
Northeast%20Group.pdf
• http://www.powerengineeringint.com/
ar ticles/2017/03/australia-and-new-zealand-to-
invest-6-1bn-in-smart-grid-technologies.html
• www.smartgridobserver.com
• http://onlinelibrary.wiley.com/doi/10.1002/
app5.95/full
• http://www.environment.gov.au/energy/
programs/smartgridsmartcity

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

5. NEW TECHNOLOGIES: 3D PRINTING cinating leaps are happening. As mobile phones


3D printing (also known as ‘Additive Manufactur- were just star ting to come on the market 20
ing’) will revolutionize the manufacturing industry years ago, but faced an exponential explosion
and consumer access to customized products. with figures such as 750 million people owning
It will create amazing oppor tunities for people a mobile phone in the year 2000, to repor ts that
in developed countries as well as unlocking in- there are now more mobile phones that people
credible opportunities for people in developing in the world (over 7 billion!), one can easily im-
countries. 3D Printing is a process that creates agine other technological advances such as 3D
a physical object from a digital design. There are printing becoming mainstays, embedded in our
different 3D printing technologies and materials everyday lives.
you can print with, but all are based on the same
principle: a digital model is turned into a solid As Elkington stated in the Breakthrough Forecast,
three-dimensional physical object by adding ma- “It took the [3D] sector 20 years to reach a mar-
terial layer by layer. ket value of US $1 billion. The second billion was
attained only five years later, and analysts now be-
lieve that it could grow at least fourfold over the
3D PRINTING TECHNOLOGY next ten years.” Elkington also refers to a study by
HAS THE POTENTIAL TO the McKinsey Global Institute that the 3D related
activities could have an impact of up to US $550
REVOLUTIONIZE MANUFAC­ billion a year by 2025. Star tups are debuting all
TURING, LOGISTICS, HEALTH over the world already with applications to unlock
CARE, AND EVEN FOOD new markets using 3D printing. For example, the
company African Born 3D Printing (AB3D)46 uses
PRODUCTION. recycled materials to build affordable 3D print-
ers and waste products as print filament. They
Although 3D printing is still in its beginning phas- are providing customized solutions to a variety of
es, experimenting with a variety of possibilities, issues in Africa, such as shoes that are specially
this technology has the potential to revolution- designed to tackle the issue of jiggers infestation
ize manufacturing, logistics, health care, and even in Kenya and shoes for people with deformities,
food production to name only a few areas. Just and a 3D printed microscope providing medical
imagine villages in the developing world printing equipment and laboratory analysis in areas where
parts for farm equipment or even printing ar tifi- these facilities are otherwise limited or non-exist-
cial limbs for people who would otherwise not ent (See Case 19).
have the means to receive expensive - and most
likely inaccessible - care. Imagine mobile produc-
tion plants with the ability to quickly respond to
disaster zones, printing out emergency provisions
including anything from arm splints to tent stakes,
to food even! 3D printers can now handle mate-
3D PRINTING MARKET
rials ranging from titanium to human car tilage to FROM 2017 TO 2021; IT
food nutrients. IS ESTIMATED THAT THIS
The products that are replicated are fully func-
INDUSTRY WILL BE SIZED AT
tional. Batteries and body par ts have already been AROUND US $26.5 BILLION IN
printed, as have edible food products. Although 2021. 47
this emerging technological advancement is in its
experimental stages, it is very exciting, and fas-

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“ IT TOOK THE 3D SECTOR 20
YEARS TO REACH A MARKET
VALUE OF US $1 BILLION.
THE SECOND BILLION WAS
ATTAINED ONLY FIVE YEARS
LATER, AND ANALYSTS NOW
BELIEVE THAT IT COULD GROW
AT LEAST FOURFOLD OVER THE
NEXT TEN YEARS.”
JOHN ELKINGTON

TDS final Boek.indb 133 18-12-17 18:56


19 NO
POVERTY
IMPACT SDGS
CASE NO. AFRICAN BORN 3D PRINTING (AB3D)
Locally Produced Products for Social Impact
3D Printing - Designing a better future and
making new technologies available to everyone
Case applied in: Africa, Kenya
Headquarters located in: Kenya
www.ab3d.co.ke

ZERO
HUNGER SDG 1 BROADLY SPEAKING, WE WANT OUR PRINTERS TO PRINT SOLUTIONS
No Poverty TO SOME OF THE PROBLEMS FACED BY KENYA AND THE GREATER DEVELOPING WORLD.
Focused on creating functional
GOOD HEALTH
AND WELL-BEING ROY OMBATTI FOUNDER AB3D
products to improve the lives
of people living in poverty.
QUALITY
EDUCATION

SDG 3
Good Health and Well-
GENDER
EQUALITY

Being AB3D is one of the first companies bringing 3D a better life.” Their goal is to get their printers into
CLEAN WATER
AND SANITATION Shoes specially made for Printing technology to Africa. They believe that the schools (all levels) since they see 3D printing as a
deformed feet and to protect technology holds great potential to bring about powerful tool for education (SDG 4).
against jiggers. positive change. They are focused on creating
functional products that will improve the lives of Partnering with local businesses, AB3D designs and
AFFORDABLE AND
CLEAN ENERGY

people living in poverty (SDG 1). Based in Nairobi, produces custom products that help to solve local
DECENT WORK AND
SDG 4 Kenya, the company locally designs and manufac- challenges (SDG 17), including access to shoes. In
Quality Education
ECONOMIC GROWTH

tures quality and affordable 3D Printers and fila­ Nairobi there is a problem of jiggers which are fleas
Target market is diverse ment from recycled waste. in the ground that burrow into the skin, ultimately
schools, design architecture causing foot deformities. This affects many children.
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

firms, rapid prototyping and AB3D not only sells printers and filament, they sell Roy Ombatti, founder of AB3D created a project
REDUCED manufacturing institutions. components for the printers, rent the printers and called “Happy Feet” to design custom-made 3D
provide training in how to use them, and provide printed shoes for deformed feet (SDG 3).
INEQUALITIES

repair services.
SUSTAINABLE CITIES
AND COMMUNITIES
SDG 11 AB3D’s work centers around how it can contrib-
Sustainable Cities and The printers are unique in that they are made out ute to the community (SDG 11) with their inno­
Communities of waste material and the quality of the product ri- vations. They offer unprecedented opportunities
RESPONSIBLE

Provides autonomy of vals what is made using high-end machinery. AB3D to the local population with their 3D printed mi-
CONSUMPTION
AND PRODUCTION

production and access to printers are also locally produced and assembled croscope design which facilitates medical and ed-
CLIMATE
ACTION materials that are otherwise using local materials, as opposed to importing for- ucational independence. They have also produced
eign materials. The team is very focused on recy- other medical devices including a syringe extension
too expensive. Uses plastic
cling and reusing waste and has developed a way which helps to solve the problem of imported sy-
and electronic waste.
to extrude the filament from recycled PET waste ringes not being able to be used because of mis-
LIFE
BELOW WATER

(SDG 12). To obtain filament, AB3D collaborates matched components.


LIFE
ON LAND
SDG 12 with waste collectors who collect and sort, then
Responsible Consumption bring it to AB3D. Kenya has identified the issue of negative envi­
and Production ronmental impact from electronic waste and has
All AB3D’s work is kept local, but the startup is recently made the need for solutions a national
PEACE, JUSTICE

Uses recycled electrical


AND STRONG
INSTITUTIONS

materials and plastic waste; open-sourcing all its designs. They aim to share priority. Because AB3D uses electronic waste to
knowledge with regard to 3D Printing and its build their 3D hardware, they are contributing to-
buying a kilo of waste for
PARTNERSHIPS
FOR THE GOALS

future potential. Founder Roy Ombatti believes, wards turning the negative environmental impact
30ksh (less than $1) to build “The gap between the haves and the have-nots is of E-waste into positive impact for social advance-
printer motors. huge. We’ve got to continue trying to give others ment.

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CHALLENGE
To produce affordable 3D
printers so more people can
have access to them, and bring
this revolutionary technology
to Africa, integrating local
needs and challenges.
“ AB3D BELIEVES THAT
3D TECHNOLOGY
HOLDS GREAT
POTENTIAL TO
OPPORTUNITIES FOR SCALE
AB3D aim to get their printers to every school in
Kenya to be used as a teaching aid and through

BRING ABOUT
this create jobs, alleviate poverty, and help clean
the environment. E-waste dumps in Africa are a
major issue, so reusing discarded electronic ma-

POSITIVE CHANGE.”
terials to bring communities the far-reaching
benefits that 3D printing can offer, solves two sig-
nificant challenges in that region. There are great
oppor tunities in Africa for 3D printing. Countries
that lack large-scale industrial manufacturing can
be given the opportunity to level the playing field
with the introduction of cutting-edge technology
to an untapped market.

Sources and further information


• https://techpoint.ng/2015/09/30/ab3d-feature/
• https://www.3dhubs.com/what-is-3d-printing
• http://stisolutions4sdgs.
globalinnovationexchange.org/innovations/
ab3d-african-born-3d-printing
• http://www.techfortrade.org/
• https://www.idin.org/blog-news-events/blog/
charity-roi-how-african-entrepreneurs-are-
leading-way
• https://www.engineeringforchange.org/3d-
printing-with-e-waste-five-questions-for-roy-
ombatti/

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

There is tremendous potential for 3D printing Netherlands.49 The event brought together over
and as shown, it can impact many other sectors 300 attendees and speakers, who shared their
besides manufacturing, such as healthcare, logis- opinions and views on the latest developments in
tics and food. 3D printing can have a huge impact 3D food printing, ver tical farming, smar t farming
on many of the SDGs. Take SDG 12 (Responsible and healthy nutrition, and discussed the follow-
Consumption and Production) for example, by ing questions: Which industries will be influenced
printing components as needed, and at location, by the technology? Which food components can
3D printing contributes towards reduced waste be printed in the near future? And which aspects
and reduced pollution due to transpor t. Now the should be taken into account to ensure safety and
interesting challenge is to come up with environ- maintainability of 3D printed food? As this tech-
mentally responsible filaments for the printer to nology is poised to explode in its applications, it
use. AB3D is doing that by using recycled E-waste is an interesting time to explore the possibilities
and researchers at MIT have designed a way to and applications.
use cellulose in 3D printing, potentially provid-
ing a renewable, biodegradable alternative to the
polymers currently used as filaments. Because 3D PRINTING OF FOOD CAN GO A
cellulose is so inexpensive, bio-renewable, biode- LONG WAY TOWARDS FEEDING
gradable, and chemically versatile, it is used in a
lot of products – from pharmaceuticals, medical
THE GROWING POPULATION,
devices, food additives, building materials, clothing, MEETING THE INCREASING
to many other items for consumer or commercial DEMAND FOR FOOD, AND
use.48
UTILIZING MORE NUTRITIOUS,
SUSTAINABLE ALTERNATIVES.
3D PRINTING, BY ITS VERY
NATURE, AND WITH THE Since 3D printers can utilize nutrients from a va-
riety of sources to create food items, it can be
CUR-RENT EXPERIMENTS AND used in developing countries and for other de-
START- UPS, OPENS THE DOOR mographics to combat malnutrition. Already 3D
TO ACCELERATING MANY OF THE food printing is being used to prevent malnutri-
tion and hunger among the elderly in Germany
SDGs. as the German-based company, Biozoon Food
Innovations use 3D printing to produce more en-
And even more phenomenally, the experiments joyable meals for the elderly who need to eat a
that are already being made with 3D printing of pureed diet. Fresh ingredients, such as vegetables
food give way to a whole new perspective to and chicken are broken down and printed into
achieving SDG 2 (No Hunger). And 3D printing the same shape as the original ingredient, form-
of body par ts, not only as prosthetics but using ing its three-dimensional shape. However, it has
human tissue as filament and printing organs or a softer texture, allowing for the food to be en-
real human limbs rather than the current ar tificial joyed as ‘food’ rather than a paste-type substance,
components can impact human beings in ways but soft enough to meet pensioners’ dietary
that are even hard to imagine. 3D printing, by its needs.50 And food scientists at IKEA’s Space10 ex-
very nature, and with the current experiments ternal innovation studio are exploring new ways
and star tups, opens the door to accelerating of making a sustainable meat product. As meat
many of the SDGs. production creates an enormous burden on the
environment, many companies are experimenting
The 3rd European edition of the 3D Food Print- with ways to use meat substitutes. By utilizing 3D
ing Conference took place in June, 2017 in the printing, different ingredients can be used such as

136

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3.5  THE FOURTH INDUSTRIAL REVOLUTION & TEN BREAKTHROUGH OPPORTUNITIES

algae and even insects to create a meat-like taste,


and shapes can be replicated to entice people
ROBOTICS TECHNOLOGY
to accept the meat substitute. This type of food
production can go a long way towards feeding
the growing population, meeting the increasing ¾  S $82.7 BILLION
U
demand for food, and utilizing more nutritious, ESTIMATED MARKET SIZE IN
sustainable alternatives.
2020
3D printing has the potential to be a disruptive ¾ 2
 0,000+ PATENT
technology on many fronts. Businesses in all sec- APPLICATIONS FILED
tors will likely be using this technology in some
capacity in the future, and new markets will open
ANNUALLY
¾U  S $188 BILLION ESTIMATED
up as a result.
SPENDING IN 2020.
6. NEW TECHNOLOGIES: ROBOTICS AND ARTIFICIAL BREAKTHROUGH.UNGLOBALCOMPACT.ORG
INTELLIGENCE (AI)
Robotics is another technological development
that will change the business landscape. Although
we have had robotic automation for a while, it as the global population is living longer, and there
is developing along with artificial intelligence to is a severe shor tage of nurses.
become a phenomenon that will alter the job
market significantly. The estimated market for robotics in 2020 will be
US $82.7 billion dollars, according to Allied Mar-
Firstly, robotics and AI technology will be imple- ket Research and published in the article by Global
mented for jobs that the manufacturing world Compact called Next Generation Robotics 53. The
calls “the three Ds” – jobs that are dirty, dull ar ticle also shows some of the potential impact
and dangerous. In addition to the current use of of robotics on the SDGs including SDG 14 (Life
robotics to do menial tasks faster, such as their Below Water) by providing data relevant to pol-
use in industrial production, it is predicted that lution monitoring and suppor ting marine man-
robots will be able to handle more complex mat- agement through unmanned underwater vehicles.
ters and their use in other capacities will grow. There are many oppor tunities for robots to help
The implementation of robotics and AI for jobs accelerate all of the SDGs and healthcare in par-
that are dangerous or extremely precise is already ticular is a hot spot now. In addition to the tasks
happening, robots are being used for firefighting51 mentioned above, robots can provide medical as-
and for surgical procedures.52 Robots will also sistance in remote areas where few trained per-
quickly enter the high-tech service economy in sonnel are available, and because they can also
legal analysis, medical diagnostics, and other areas perform dangerous tasks and thus relieve humans
of complex tasks and problem solving. According of the associated risks, they not only provide
to the Breakthrough Forecast some ‘sweet spots’ in medical care but are technological preventers of
the development of robotic applications include health and safety dangers as well. This will cer-
the use of robots in the alternative energy sector tainly have an impact on SDG 3 (Providing Good
as solar-panel cleaning robots. Robots will also be Health and Well-being to All).
used more extensively in the health care sector to
assist doctors and perform nursing duties such as An example of robots ‘doing our dir ty work’ can
delivering medicine throughout hospitals. There is be found in the robotic “pig” from Thermo-Sys-
also much talk about using robots in senior care tem. This robot deals with sewage sludge to dry

137

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20 NO
POVERTY
IMPACT SDGS
CASE NO. THERMO-SYSTEM
Pig Balthazar
Solar sludge-drying robotic system
Case applied in: Global
Headquarters located in: Germany
www.thermo-system.com

ZERO
HUNGER SDG 3 WHEN WE DEVELOPED THE PIG, WE THOUGHT: HOW WOULD A MACHINE LOOK
Good Health & Well-Being LIKE IF IT LIVED IN THE SLUDGE?
Manage the 60 million tons of
GOOD HEALTH
AND WELL-BEING DR. TILO CONRAD, FOUNDER & CEO
sewage sludge produced every
year in Germany alone.
QUALITY
EDUCATION

SDG 6
Clean Water & Sanitation
GENDER
EQUALITY

Containing mostly water, 90 Pig Balthazar is an electrical pig (also known as the microbiologically highly active sludge and thus
CLEAN WATER
AND SANITATION to 95 % of wet sludge mass the Electric Mole) built by the German compa- accelerates the drying process and helps prevent
can be done away through the ny Thermo-System to reduce sewer sludge dis- rotting. The whole system works fully automati-
economically friendly drying posal costs, make the process more efficient, and cally, uses up very little energy, and can be easily
protect the environment from harmful substanc- maintained. It is highly efficient due to process
AFFORDABLE AND
CLEAN ENERGY

process, saving energy and


es during processing and use (SDG 3). Sewage control by the company’s ClimaControl-System.
water resources.
DECENT WORK AND
ECONOMIC GROWTH
sludge is traditionally deposited or is spread over Solar radiation is harvested by the greenhouse
farmland as fertilizer, but sludge may be full of construction and utilized for water evaporation
SDG 7 harmful materials, such as germs, hormones or (greenhouse- effect). A sophisticated aeration
Affordable and Clean chemical substances. Therefore, Thermo-Systems system with oscillating fans (MoviVent) optimiz-
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

Energy developed a system to process the sludge in an es the air stream on the surface of the sludge.
REDUCED In Luxemburg, the sludge is environmentally safe way using automated robots The air exchange with the ambient is controlled
to ‘do the dirty work’. by wall-mounted fans. The sludge is then spread,
INEQUALITIES

transformed to a valuable fuel


turned and mixed by the fully automated Pig. All
– by using solar energy. The
SUSTAINABLE CITIES
AND COMMUNITIES The product was conceived with the idea that components are controlled by a central con-
dried sludge is used in a local a manmade system should resemble nature and trol unit, equipped with ClimaControl-Software.
cement factory as a substitute naturally breakdown matter. There are approx­ Therefore, the drying conditions are automatical-
RESPONSIBLE

for fossil fuels. imately 300 completes operating all over the ly optimized at every moment guaranteeing best
CONSUMPTION
AND PRODUCTION

world, each working day and night. The stainless drying performance (SDG 12).
CLIMATE
ACTION SDG 12 steel pigs belong to a larger drying system patent-
ed by Thermo-System. In greenhouse-like sheds, After the drying process, the sludge has lost its
Responsible Consumption
the wet sewage sludge is spread for drying. The strong odor, is vir tually free of bacteria and the
& Production
sludge absorbs the heat from the solar rays, and volume is significantly reduced (SDG 6). For ex­
LIFE
BELOW WATER

The processing of sludge is an innovative ventilation system based on sensors ample, 600 tons of sludge could be turned into 60
LIFE
made more efficient through and microprocessors keeps the air inside the shed tons, which requires much less fossil fuel to trans-
ON LAND

automation. warm and dry. por t and less fossil fuels to burn it when breaking
it down. The sludge itself can also be used as a
The electrical pig is used as a fully automated ro- fuel source, as a cement factory in Luxemburg has
PEACE, JUSTICE
AND STRONG
INSTITUTIONS

bot. With its mixing tools, it turns over and aerates done (SDG 7).
PARTNERSHIPS
FOR THE GOALS

138

TDS final Boek.indb 138 18-12-17 18:56


CHALLENGE
To solve waste disposal
problems of sewage plants
using renewable energy and
robotics to do the dirty
work. “ THERMO-SYSTEMS
DEVELOPED
A SYSTEM TO
PROCESS THE
OPPORTUNITIES FOR SCALE
The company has built more than 150 sew-
age-sludge drying plants worldwide. In 2016, the

SLUDGE IN AN
joint venture of Thermo-System and Waterleau
was awarded the assignment to construct the
largest solar sewage sludge drying plant world-

ENVIRONMENTALLY
wide in Marrakech, Morocco. In South America,
Thermo-System's solar wood drying systems are
becoming increasingly popular. Thermo-System
expects more business from parts of Eastern Eu-
rope that are joining the European Union as they
endeavor to meet environmental standards. SAFE WAY USING
Sources and further information
• http://www.thermo-system.com/fileadmin/
AUTOMATED
ROBOTS TO ‘DO THE
user_upload/PDF_Datei/en/eLeaflet_
SolarBatch_2016.pdf
• http://www.upi.com/Business_News/Energy-

DIRTY WORK’.”
Industry/2006/03/11/Robot-pig-drives-
German-drying-plants/UPI-52961142091780/
• https://www.treehugger.com/solar-technology/
robotic-pigs-help-dry-sewage.html
• http://www.thermo-system.com/produkte/
solare-klaerschlammtrocknung/das-elektrische-
schweinr/trocknen/

TDS final Boek.indb 139 18-12-17 18:56


THE TRILLION DOLLAR SHIFT  MARGA HOEK

and aerate it so it can be transpor ted more easily to utilize AI technology to facilitate and accelerate
and efficiently to be used as fer tilizer (See Case 20). innovative projects from organizations involved in
achieving the SDGs. As an example, widespread
Artificial Intelligence can be, and is already be- dissemination of information is often thwar ted by
ing, implemented in a multitude of ways. Apple illiteracy that prevails in poor areas of the world.
used AI to give us Siri – their vir tual assistant. And By using voice activation, AI can be implemented
Google recently announced that the company will to contribute to the spread of knowledge without
be focusing heavily on AI both for its services and needing to read. Voice activation and recognition
research. Google plans to not only use the devel- – ‘Chatbots’ are becoming more commonplace.
opments of AI in its own products, but also use it With the introduction of Siri in 2011 with the IP-
to help medical researchers. CEO Sundar Pichai hone, ar tificial intelligence and a personal chatbot
talked about using AI to help sequence DNA and entered the homes of people worldwide.
help pathologists locate things like the spread of
cancer. Pichai acknowledges that it’s not complete- While many applications of AI are fun, convenient
ly perfect though: “There are impor tant caveats, and full of potential for positive impact of people’s
we do have higher false positives,” Pichai said. “But lives, scientists and leaders such as Elon Musk and
already getting this into the hands of pathologists Stephen Hawking are warning about not getting
can improve diagnosis.” 54 Google announced that carried away with the development of AI. If we
it’s already partnering with health care providers make ar tificial intelligence too intelligent, versa-
to put the technology into action to help improve tile and connected to other AI units, there is a
care and prevent medical incidents. risk that human beings can lose control of this
technology. It can sound like the making of a sci-
ence fiction movie, yet when the likes of people
COMPANIES AND DEVELOPERS as Hawking and Musk speak out in warning, then
SHOULD KEEP THE SDGS AND THE it seems prudent to listen. That isn’t to say though
that there is limited oppor tunity in this field. On
SPECIFIC ASSOCIATED TARGETS the contrary, there are many applications to ex-
AND INDICATORS IN MIND AS THE plore and advances to make. But here again, it is
GUIDELINES OF HOW WE WANT the clarity of focus that is most relevant. Compa-
nies and developers should keep the SDGs and
TO APPLY THIS TECHNOLOGY. the specific associated Targets and Indicators in
mind as the guidelines of how we want to apply
There are many oppor tunities for AI applications this technology. Robotics and AI have the poten-
as companies such as ARM (See Case 20) under- tial to create positive impact for humanity, but we
stand. They are looking broadly at oppor tunities should proceed with caution.

140

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“ WE MUST TAKE
ADVANTAGE OF THIS RAPID
TECHNOLOGICAL CHANGE
TO MAKE THE WORLD
MORE PROSPEROUS AND
INCLUSIVE.”
JIM YONG KIM, PRESIDENT, THE WORLD BANK GROUP

TDS final Boek.indb 141 18-12-17 18:56


21 NO
POVERTY
IMPACT SDGS
CASE NO. ARM
Literacy Bridge, Simprints, Children for
Health and Khushi Baby
Partnering for technology supported aid
projects
Case applied in: Asia, Africa, Ghana
Headquarters located in: Cambridge,
United Kingdom
www.arm.com

ZERO
HUNGER SDG 2 “I WANT ARM TO WORK WITH PARTNERS THAT CHALLENGE US TO THINK IN
No Hunger NEW WAYS, ENABLING ARM AND THE ARM PARTNERSHIP TO CREATE
GOOD HEALTH
AND WELL-BEING
“Talking Book” provides
SOLUTIONS THAT ADDRESS LONG-STANDING CHALLENGES AND NEW
education on health and
OPPORTUNITIES.
agriculture to reduce maternal
QUALITY
EDUCATION
and child mortality, hunger
SIMON SEGARS, CEO ARM
and chronic malnutrition.
GENDER
EQUALITY

SDG 3 As the world’s leading semiconductor IP company, services, such as healthcare. Simprints manufac-
CLEAN WATER
AND SANITATION Good Health and Arm’s technologies reach 80% of the world’s pop­ tured the first fingerprint scanners, which were dis­
Well-Being ulation, and provides artificial intelligence solutions tributed in remote areas of Bangladesh and Nepal,
Children for Health promotes (AI) for a range of products. Arm is committed reaching 55,000 mothers and children. Arm helped
to contributing to the SDGs. CEO Simon Segars Simprints build low-cost, mobile biometric scan-
AFFORDABLE AND
CLEAN ENERGY

good health, and vaccination


states: “As Arm develops innovative IoT solutions, ners and open-source software that digitally links
monitoring to children who are
DECENT WORK AND we can both enable a high growth market and con- a person’s fingerprints to their health records. The
tasked with caring for siblings.
ECONOMIC GROWTH

tribute to a sustainable future.” tools are used by researchers, NGOs, and govern-
ments around the world.
INDUSTRY, INNOVATION
AND INFRASTRUCTURE SDG 4 Arm partners with organizations such as Literacy
Quality Education Bridge who challenge Arm to think in new ways Children for Health, another Arm partner focus-
REDUCED Talking Book provided health, (SDG 17). Literacy Bridge is a charitable organi­ es on engaging with children as ambassadors and
zation that uses Arm-based technology in their communicators of critical health messages in their
INEQUALITIES

agriculture, and gender


“Talking Book” to provide those living in extreme communities. Children in impoverished societies
equality education to 175,000
SUSTAINABLE CITIES
AND COMMUNITIES poverty with education on health, agriculture, and play a vital role in looking after their siblings, of-
people in under-served gender equality (SDG 2 & 4). Literacy Bridge devel­ ten without adult supervision. This initiative offer
communities in Northern oped and delivered more than 100 agriculture and education and empowerment, giving more than
RESPONSIBLE

Ghana; Children for Health health audio messages to every family in 49 villages 100,000children information about tackling the
CONSUMPTION
AND PRODUCTION

combined education and in Ghana. Talking Book also included education us- threat of malaria, HIV/Aids and other life-threaten-
CLIMATE
ACTION technology to provide ing audio dramas that address how husbands and ing diseases (SDG 3).
wives can re­examine gender roles to enable them
information to children in
to achieve more for themselves and their children. Khushi Baby, a winner of the Arm, UNICEF and frog
impoverished areas.
More than 140,000 hours of listening and learning ‘Wearables for Good’ design challenge in 2015, is
LIFE
BELOW WATER

were created. Talking Book can also be used as a a wearable personal immunization record. The
LIFE
ON LAND
SDG 10 recording device which enables people to share Khushi Baby digital necklace integrates Near Field
Reduced Inequalities knowledge with each other. Communication (NFC) technology with mobile
Simprints manufactured health and cloud computing to make the wearer’s
Arm also collaborates with Simprints, a non-prof- medical history accessible to officials, providing a
PEACE, JUSTICE

fingerprint scanners, providing


AND STRONG
INSTITUTIONS

55,000 mothers and children it tech company, to scale-up its mission to reduce reliable, two-year immunization record for children
inequality (SDG 10) by simplifying fingerprinting – even those in remote and isolated areas. Khushi
a means of identification,
PARTNERSHIPS
FOR THE GOALS

technology. Fingerprint identification enables ac­ Baby is looking to expand its reach from 1,000 chil­
facilitating their access to cess to essential services, financing, and aid. Cur­ dren in 100 villages in India, to children in Africa
essential services. rently, 1.1 billion people worldwide lack formal and the Middle East, and expand into broader ma­
identification, preventing them from accessing vital ternal and child healthcare functions.
SDG 17
Partnerships for the Goals
142 Arm works with many partners
to provide technological
solutions to many global
challenges.
TDS final Boek.indb 142 18-12-17 18:56
CHALLENGE
To utilize technology to
provide education on health
issues and to facilitate, and
monitor, access to services and
aid. “ AS ARM DEVELOPS
INNOVATIVE IOT
SOLUTIONS, WE
CAN BOTH ENABLE
OPPORTUNITIES FOR SCALE
Arm is supporting the development of the next
generation of Talking Book.The longer-term goal for

A HIGH GROWTH
Simprints is to reach between two to three million
people in 2017. Children for Health is expecting to
continue its work reaching hundreds of thousands

MARKET AND
of people. Arm continues to explore ways that its
technology can be used to advance the SDGs, and
work collaboratively with organizations to utilize
Arm-based technology and expertise for a sustain-
able and connected future.
CONTRIBUTE TO
A SUSTAINABLE
Sources and further information
• https://www.arm.com/company/corporate-
responsibility

FUTURE.”
• https://www.arm.com/company/corporate-
responsibility/read-our-reports
• https://www.bloomberg.com/research/stocks/
private/snapshot.asp?privcapId=388030
• https://www.arm.com/innovation/products/
talking-book.php
• https://www.simprints.com/
• http://wearablesforgood.com/
• https://2030vision.com/vision.html
• http://www.khushibaby.org/

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

7. NEW TECHNOLOGIES: DRIVERLESS VEHICLES


The autonomous road vehicle revolution has the
DRIVERLESS CARS ARE
potential to change the way we travel and interact
with transportation. It is presenting new business UNDOUBTEDLY A BOON FOR
opportunities and ownership models, with peo- THE PLANET. NOT ONLY WILL
ple buying mobility only when they need it.55 In THEY HELP CURB EMISSIONS,
this sense, vehicles will be used more of the time
which will not necessarily mean more cars on the
REDUCE FATALITIES OF
road, but it will mean less cars parked. If vehicles HUMANS AND WILDLIFE,
are on the road and in use all the time, there will AND ALLOW CITY PLANNERS
be less of a need for parking spaces and this could
potentially free up roadside space for city plan-
TO FOCUS ON GREEN SPACE
ners to repurpose it (SDG 11). MORE THAN ROADS, THEY’LL
ALSO GIVE EVERY COMMUTER
Driverless cars are the best known examples of
MORE TIME IN THEIR DAYS. 72
autonomous vehicles. Trials of driverless cars from
large companies such as Tesla, Audi and Google
have accelerated, with a number of other enter-
prises ramping up efforts to develop new solu-
tions as well. Car manufacturers such as Toyota
and Ford are already using this kind of technology ing at high speeds, braking, and re-accelerating ex-
to achieve their self-parking option, where drivers cessively. Self-driving vehicles cut these factors out
need only to press a button and sensors and soft- of their driving style, meaning less gas is burned,
ware take over to park the car in the designated or battery power consumed, resulting in less air
spot. pollution. Additionally, according to research from
the US Depar tment of Energy (DOE), automated
vehicles could lead to better access to transpor ta-
DRIVERLESS CARS PRESENT NEW tion and less road accidents.58 Automated cars can
BUSINESS OPPORTUNITIES AND safely travel significantly faster than human-driven
vehicles– computers have much quicker reactions
OWNERSHIP MODELS. than human drivers– which matters of course
on a safety level but also on an environmental
The World Economic Forum predicts the tipping level because fuel economy typically decreases at
point to be when driverless cars equal 10 % of speeds over 50 miles per hour.59
all cars on US roads. This occurrence is projected
to be only a few years away, happening in 2026.56 Tesla is getting closer to having a fully self-driv-
Autonomous vehicles are touted as having a num- ing car, which includes the Model S, Model X, and
ber of benefits including: reduction of traffic and future Model 3. They are being built with new
increase in safety as driverless vehicles commu- hardware that will enable them to be completely
nicate with each other and their surroundings. autonomous. The one caveat is that the feature
For passengers, it provides more free time and won’t be functional without fur ther software
less stress due to the pressures of driving. And validation and regulatory approval. These cars
there are advantages to the environment too. It is are being built with eight cameras that provide
predicted that the mass use of electric, driverless 360-degree visibility and 250 meters of range to
taxis could reduce CO2 emissions by 87 to 94 % better assist in driving themselves.
per mile by 2030.57 Autonomous cars use less gas
and energy when driving, compared to a vehicle They come with one radar sensor, 12 ultrasonic
driven by a human. Most gas is burned when driv- sensors, and Nvidia’s Titan GPU onboard comput-

144

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3.5  THE FOURTH INDUSTRIAL REVOLUTION & TEN BREAKTHROUGH OPPORTUNITIES

Key numbers:
Figure 21 Key Numbers

$42 BN 2309 91,5 MN


Autonomous vehicles63

Estimated autonomous Autonomus vehicle Estimated number of


vehicle market size (all patents filed by leading driver assistance
levels/types) automotive and digital systems to be on the
companies in the last roads by 2020
Source Statista
6 years
Source Statista
Source Statista

ing system to process all the information.60 All of collection. Platooning, is when a number of ve-
these additions also improve Tesla cars’ Autopilot hicles are connected together and there is only
capabilities. a single lead driver, MAN and DB Schenker are
planning European platooning trials in 2018,62
Driverless buses are also being developed in cities which has the potential to be one of the first ve-
where there is a lot of constant transport. In 2016, hicles with par tial autonomy on roads.
Helsinki tried out an autonomous bus in one of
the first tests of its kind.61 Other cities such as Autonomous vehicles could transform the effi-
Las Vegas and London have also been trialing this ciency and effectiveness of transpor t and logistics.
technology for their bus fleets. In Stockholm/Kista, Given the efficiency gains that autonomous vehi-
Ericsson demonstrated – together with Nobina cles could achieve, there would be a net positive
(a bus operator) and the city Stockholm/Kista environmental impact. The potential for this tech-
Science City and a number of other supporting nology also lies in the self-driving sensors and soft-
par tners – solutions that show the future of bus ware. It could be said that the true transformation
transpor t and ticketing. Two other applications of isn’t the car, but the underlying digital technology.
the technology are freight platooning and waste To accommodate the enormous amount of data

Autonomous Car Sales Will Surge By 2035 Figure 22


The cars will represent 25 precent of the global market
Autonomous Car Sales
Partially autonomous cars Fully autonomous cars Will Surge by 203564
26 %
24
22
20
18
16
14
12
10
8
6
4
2
0
2015 2020 2025 2030 2035

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

needed for the sensors, edge computing is being First, UAVs with video cameras are very useful
used. The goal with edge computing is to act on when flying over large areas of land to obtain
data quickly without the delays incurred by trans- images quickly. These include areas of agricultural
mitting across a wide area network. For an auton- crops, forest cover, fire control risks, and coastal
omous vehicle, the data that is transmitted needs regions. Two benefits of drone usage in these cir-
to be acted upon immediately and processed at cumstances are 1) achieving a reduction in high
the source, such as responding to an approaching polluting emissions that come along with tradi-
vehicle. A number of companies have been pre- tional ground or air control vehicles and 2) get-
paring for this technological breakthrough. Google, ting critical information faster before an incident
for example, already uses nearly a million servers escalates. These unmanned devices are also being
in its daily operations. To manage this enormous used to study air quality, pollen count or other
complexity, the company created its own software characteristics of the atmosphere. Highly specific
known as ‘Borg’. Systems such as this, improve the data collected by these drones are then used to
efficiency by dynamically allocating capability when launch aler ts and develop scientific studies.
needed, thus improving utilization. With this new
technology rapidly coming online, and being used
for autonomous vehicles, the number of self-driv- IN MANY CASES, DRONE
ing vehicles on roads worldwide is expected to DEPLOYMENTS CAN DELIVER A
grow to 21 million by 2035.
BETTER RETURN ON INVESTMENT
THAN SATELLITE IMAGES OR
8 NEW TECHNOLOGIES: DRONES AERIAL PHOTOGRAPHY FROM
Also known as Unmanned Aerial Vehicles (UAVs)
– are small flying devices used to photograph and
HELICOPTERS OR PLANES.
to collect data. In addition, companies such as
Amazon are exploring using drones for shipping Drones are also being used to monitor solar
and delivery, but this is still in its infant stage. De- power plants and wind farms. UAVs can fly over
velopments in drone technology include the use photovoltaic installations and wind turbines to
of artificial intelligence for more autonomous and check for technical failures, material loss or mal-
safer flight, and better photographic technology functioning without taking up valuable labor time
is also being used. UAVs, or as they are popularly for workers or accumulating fuel costs for vehicle
known, ‘drones’, are showing great potential for travel to sites. In many cases, drone deployments
achieving sustainability. Drones are being imple- can deliver a better return on investment than
mented in the fields of scientific research, renew- satellite images or aerial photography from heli-
able energies, geology and agriculture, and they copters or planes. This is par ticularly true when
are already opening up a future full of possibilities. detailed imagery of localized events is needed and
in cases where specific imagery needs to be taken
repeatedly for monitoring or record keeping.
DRONES ARE BEING
IMPLEMENTED IN THE FIELDS Increasingly used in the aftermath of disasters,
drones have proven to be helpful when reaching
OF SCIENTIFIC RESEARCH, areas that are inaccessible or difficult to fly over
RENEWABLE ENERGIES, GEOLOGY with manned aircraft. For example, in 2013 after
AND AGRICULTURE. typhoon Haiyan hit the Philippines, a UAV was
used to gather data, choose where to set up a
base of operations, and verify if roads were pass-
There are several benefits that drones have able.65 The UAV was then flown up the coast to
brought in the pursuit of suppor ting the SDGs. evaluate damage from storm surges and flood-

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3.5  THE FOURTH INDUSTRIAL REVOLUTION & TEN BREAKTHROUGH OPPORTUNITIES

ing and to identify the villages most affected. Africa and elsewhere. For example, in Madagascar
China has also been using drones for landslide the farmers are plagued with an invasion of lo-
and ear thquake related damage and impact as- custs with more than 100,000 tons of crops dev-
sessment. As an investment in furthering suppor t astated every day. This is a tremendous loss to the
for the use of drones in emergency response, the farmers and the people depending on the food.
European Commission funded a €17.5 million The swarm covers dozen of kilometers destroying
research project to develop robotic tools that all the crops and creating a high-risk of starvation.
can assist human crisis intervention teams with Currently, there are only planes and helicopters
search and rescue and emergency response.66 In for the preventive maintenance but the island
response to the wealth of data coming from new lacks resources to finance the fuel and the pesti-
technological sources, including drones, a group of cides. By using the solar-powered drone, they do
non-governmental organizations has formed the not need a pilot, plane, or fuel. The drone is able
Digital Humanitarian Network.67 This consortium to map thousands of hectares and immediately
aims to provide an interface between formal, pro- identify when new locust swarms are forming.
fessional humanitarian organizations and informal Thereafter, instead of trying to destroy the swarm
volunteer and technical networks. when it is already huge (up to 500 billion in 2014),
they would be able to locate them early and treat
Entrepreneurs such as Laurent Rivière, CEO of them more easily with pesticides. In this way, the
Sunbirds created a solar-powered drone with his information collected by the drone plays a pivotal
eye on some of the challenges facing countries in role in saving a country from starvation.

“WITH THESE [DRONE] APPLICATIONS WE CAN THEN HAVE A


DIRECT IMPACT ON DEVELOPMENT ISSUES SUCH AS STARVATION
AND DROUGHT.”
LAURENT RIVIÈRE, CEO SUNBIRDS

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22 NO
POVERTY
IMPACT SDGS
CASE NO. DJI
Phantom
Empowering vulnerable communities to
prepare for challenges caused by climate
change
Case applied in: Maldives
Headquarters located in: China
www.dji.com

ZERO
HUNGER SDG 13 THE NEXT 5-10 YEARS WILL BE A VERY EXCITING PERIOD FOR UNMANNED
Climate Action AIRCRAFT AND I AM LOOKING FORWARD TO THE FUTURE.
Drones assist with the more
GOOD HEALTH
AND WELL-BEING FRANK WANG, CEO DJI
than 200 inhabited islands
spread over a vast area of
QUALITY

the Maldives that require


EDUCATION

extensive mapping to study


climate impacts for response
GENDER
EQUALITY

preparedness. It is predicted that by 2050 most of the world’s The company has made the technology easier
CLEAN WATER
AND SANITATION
islands will be submerged due to rising sea levels to use, more affordable, and better performing,
SDG 17 and shifting weather patterns. Sophisticated map- which allows a larger sector of the population to
Partnerships for the Goals ping is needed to design actions to protect the gain access to the information drones provide.
island residents. In this case, technology is assisting in disaster risk
AFFORDABLE AND
CLEAN ENERGY

Partner with the United


reduction. Additionally, it is streamlining and sim-
Nations Development Program
DECENT WORK AND As 80% of the world’s islands are at an elevation plifying the mapping process. Without the drones,
(UNDP) to bring together
ECONOMIC GROWTH

of one meter above sea level, they are at risk of it would take almost a year to map 11 islands; the
disaster management rising sea levels due to climate change. This in- drone was able to map the island of Maibadhoo
practitioners to help face and cludes the coral atolls of the Maldives that are in just one day.
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

solve climate change issues. home to nearly 400,000 people. The Maldives
REDUCED
is also one of the world’s most geographically The technology has and will continue to change
dispersed countries with over 200 inhabited is- the way disaster response is conducted, speeding
INEQUALITIES

lands spread over 90,000 square kilometers. This up the times it takes to transmit an alert and signifi­
SUSTAINABLE CITIES
AND COMMUNITIES makes communication and transpor tation a se- cantly increasing mitigation abilities. DJI’s more ad­
rious logistical challenge. The local population is vanced, longer range communication that includes
RESPONSIBLE
threatened by climate and weather conditions live streaming, changes the ways signals are sent
and significant areas have already been eroded and therefore enables a quicker response: saving
CONSUMPTION
AND PRODUCTION

by sea-level rise. To help people on these islands time, money and lives. This technology is evolving
CLIMATE
ACTION forecast and combat the dangers caused by cli- and the government of Maldives and island com-
mate change, DJI and UNDP have par tnered to munities are part of the innovation process. At
provide drones to local Maldives response teams. least 20 islands in the Maldives will be equipped
with DJI Phantom or DJI Mavic Pro drones, and
LIFE
BELOW WATER

Three-dimensional risk maps represent an im- local emergency officials will receive training from
LIFE
ON LAND
portant source of data as visual images of the professional first responders in how to integrate
same area taken over time, or before and after drones into their disaster preparedness and re-
a disaster, can identify changes to the landscape sponse setups. At a national level, UNDP and DJI
thereby providing much needed evidence for have been training the Maldives National Defense
PEACE, JUSTICE
AND STRONG
INSTITUTIONS

decision­making. DJI drones collect data to show Force (MNDF) – a government agency responsi-
PARTNERSHIPS
FOR THE GOALS
how the topography of the island is changing and ble for disaster response – on how to integrate
to enhance the preparedness of the emergency drones into operations involving firefighters, coast
response team. guards and other public safety forces.

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CHALLENGE
To assist in the management
of sea-level rise by mapping
climate impact.

“ DJI’S MORE
ADVANCED,
LONGER RANGE
COMMUNICATION
OPPORTUNITIES FOR SCALE
DJI is on the cutting edge of innovation and with
the continuous evolution of technology, they see

ENABLES A QUICKER
great promise for further innovations and applica-
tions of drones. DJI is exploring a variety of drone
applications such as: emergency information gath-

RESPONSE: SAVING
ering e.g. assessing fire progress with thermal
sensors; inspecting power lines; precision spray-
ing of pesticides; and powerful telephoto enabled
drones for industrial applications.

Sources and further information


TIME, MONEY AND
LIVES.”
• http://www.dji.com
• https://www.fastcompany.com/company/dji
• http://www.asia-pacific.undp.org/content/rbap/
en/home/blog/2017/1/26/using-drones-to-
fight-risks-from-climate-change.html
• http://www.undp.org/content/undp/en/home/
blog/2017/2/10/Using-drones-to-address-
climate-change-risks-in-the-Maldives.html
• http://citizenship.dji.com/humanitarian/dji-and-
undp-use-latest-drone-technology-to-protect-
vulnerable-communities
• https://www.dronezon.com/drone-companies-
news-interviews/dji-drone-company-ceo-frank-
wang-interview-with-wsj/

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

In another application of the use of drones for 9. NEW TECHNOLOGIES: THE INTERNET OF THINGS (IoT)
good, Amazon has begun development of an The Internet of Things (IoT) links objects to the
air-traffic control system to manage its fleet as internet, enabling data, insights and machine capa-
the drones fly from warehouses to customers’ bilities never available before. The IoT represents
doors. Amazon repor ts that about 85 % of the a core set of emerging technologies, which have
products on its website are light enough to be great potential to improve connectivity by link-
delivered by drones. To avoid other air traffic and ing smar t devices, applications, services, and even
birds when making a delivery, Amazon has pro- people over the internet network. It can improve
posed that the drones fly at heights between 200 efficiencies, protect resources and influence our
feet and 400 feet, equivalent to being higher than daily lives. The IoT extends to a wide range of
an eight-story building.68 The drones, which will machines, including vehicles, household applianc-
operate autonomously without a pilot, will fly es, wearable devices, health care monitors, energy
at speeds up to 50 miles per hour. The biggest consumption meters, and security systems. The
benefits to drone deliveries would be the amount IoT also facilitates the collection of small data.
of savings in shipping costs and fuel for vehicle
transport. According to the Deutsche Bank, deliv-
ery automation using drones presents the biggest ONE WAY THAT THE IoT CAN
cost reduction oppor tunity for Amazon, with an AFFECT THE SDGs IS IN THE
estimated 80 % cost savings in the shipment be-
tween the final storage hub and the customer’s
INCREASINGLY COMMON
home.69 “Robots and drones would reduce this to PRACTICE OF BUILDING
near-zero immediately and allow for much faster SUSTAINABLE AND SMART CITIES
delivery times” said Deutsche Bank.
IN THE DEVELOPED WORLD.
The following costs are samples for delivering a
shoebox: When appliances are fitted with sensors that not
only detect what we program them to, but also
¾ Premium ground like UPS or FedEx: US $6 connect with the internet, then we get products
to US $6.50 such as thermostats in our home that can be
¾ Mid-tier carriers like OnTrac: US $4 to US $5 controlled remotely using a smar tphone. The IoT
¾ USPS for last mile alone: about US $2 also allows smar t grids to function by connecting
¾ Robots/drones: less than US $0.05 per mile energy producing and energy consuming devices
and monitoring and managing them. The IoT is the
technology behind ‘wearables’ that promises to be
the next step in clothing, and devices designed to
AROUND THE UCLA CAMPUS enhance people’s health such as smar t watches
ALONE, DRIVERS SEARCHING that monitor hear t rate.
FOR PARKING DROVE 950,000
The IoT also provides oppor tunities to fulfill
MILES, WASTED 47,000 some of the expectations of the SDGs since the
GALLONS OF GASOLINE, IoT spans multiple industries, including energy, au-
AND CREATED 730 TONS tomotive, consumer devices, healthcare and more.
One way that the IoT can affect the SDGs is in
OF GREENHOUSE GAS
the increasingly common practice of building sus-
EMISSIONS. xx tainable and smar t cities in the developed world,
as is shown fur ther in Chapter 5. For example,
YETI.CO Barcelona has implemented IoT technologies to
remotely sense and control park irrigation and

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3.5  THE FOURTH INDUSTRIAL REVOLUTION & TEN BREAKTHROUGH OPPORTUNITIES

practice of driving around parking lots looking for


a space (SDG 13); and monitor logging activities
IoT TECHNOLOGY WILL BE
to guard against illegal deforestation (SDG 15).
RESPONSIBLE FOR UP TO US
$15 TRILLION OF GLOBAL The IoT also has the potential to benefit popu-
GDP IN THE NEXT 20 YEARS. 72 lations in developing countries, as shown in the
YETI.CO following case (See Case 23). Applications of
IoT could facilitate impactful data collection in
agricultural fields that help check soil conditions,
monitor vaccine delivery and storage in real-time,
water levels in public fountains. Using sensors to measure levels of pollution in the air or water, and
monitor rain and humidity, park workers can de- be integrated in other smar t devices which can
termine how much irrigation is needed in each also provide remote diagnoses of diseases.
area. With this technological intervention, Barce-
lona estimates that IoT systems have helped save Ericsson repor ts that wireless broadband applica-
US $58 million on water.70 tions will continue to rise. And the IoT, in which
billions of devices will be connected to wireless
Other ways the IoT can help with the achieve- networks, will grow even more rapidly than de-
ment of the SDGs include: water quality monitor- vices and applications for human use.71 There are
ing with contaminant sensors (SDG 6); drought already approximately 230 million cellular Ma-
crisis prevention by using soil sensors to measure chine-to-Machine (MTM) subscriptions for IoT
water needs (SDG 11); reuse of technological de- applications, and it is projected to be up to 26
vices to reduce E-waste by alerting users when billion connected devices by 2020. McKinsey esti-
repairs or maintenance is necessary and indicating mates that the IoT will add around US $11 trillion
to manufacturers which components can be re- of market value globally by 2025, roughly divided
used(SDG 12); reduction of fuel waste and CO2 equally between the high-income and developing
emissions by sensors in parking areas indicating economies.73
where parking is available, thus alleviating the

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23 NO
POVERTY
IMPACT SDGS
CASE NO. ERICSSON
Connected Mangroves
IoT - ICT and mobility used together to
restore nature
Case applied in: Malaysia
Headquarters located in: Sweden
www.ericsson.com

ZERO
HUNGER SDG 6 THROUGH THIS INTERNET OF THINGS (IoT) SOLUTION, THE COMMUNITY HAS BEEN
Clean Water and Sanitation EMPOWERED TO USE DATA TO MANAGE THEIR ENVIRONMENT AND TAKE
Measures conditions for
GOOD HEALTH
AND WELL-BEING ACTION TO SUPPORT THE MANGROVES AND THEIR COMMUNITY.
maximum 200 mangroves
TODD ASHTON, PRESIDENT OF ERICSSON MALAYSIA, SRI LANKA, AND BANGLADESH
(covering roughly 2,500mts2),
QUALITY

providing real-time data


EDUCATION

collection with sensors


monitoring metrics including
GENDER
EQUALITY

local water contamination levels. In Ericsson’s Connected Mangroves project, they community, defined thresholds that when sur­
CLEAN WATER
AND SANITATION
worked with Luimewah, a local technology com- passed triggers a message to a specified caretaker
SDG 13 pany, to place sensors in the plant site of the new- in the application. Through improving the quality
Climate action ly-planted mangrove saplings. The sensor system and quantity of the data, the system is better able
provides near real-time information about the to cope with changing parameters. This is relevant
AFFORDABLE AND
CLEAN ENERGY

Increased survival of plants,


mangrove plantation conditions, enabling ICT to when understanding trends about soil temper-
addressed climate mitigation
DECENT WORK AND play a key role in managing this important re- ature, water level or soil acidity and could help
as more CO2e emissions are
ECONOMIC GROWTH

source. Mangroves are vital for the local resilience researchers to better understand mechanisms to
captured into the plants. hence addressing climate adaptation (SDG 13). improve the life of seedlings via irrigation, fertiliza-
Malaysia has a diverse array of mangrove species, tion or other methods (SDG 14).
INDUSTRY, INNOVATION
AND INFRASTRUCTURE

SDG 14 with 36 out of the 69 species worldwide native to


REDUCED Life Below Water the country. Today, approximately 50% of Malaysian The mangroves are important in rebuilding the
mangroves have been destroyed due to develop- ecosystem, as they serve as breeding grounds for
INEQUALITIES

The project ensures up to 50%


ment, aquaculture farms, fire, wood harvesting and crustaceans and fish which attract migratory birds.
better maturity rates for the
SUSTAINABLE CITIES
AND COMMUNITIES pollution. This has caused coastal areas to be un- The communities that live near the mangrove plan-
mangrove saplings, which in protected from environment risks, especially the tations are among the most vulnerable socio-eco-
itself assures that the community risks from flooding and tsunamis. Additionally, a nomic groups in the country. Access to this mobile
RESPONSIBLE

will increase its mangrove cover recent study shows 35,594 acres of mangrove hab- application helps them to manage their mangrove
CONSUMPTION
AND PRODUCTION

substantially in the next few itats can prevent the release into the atmosphere plantations and is considered to be a big step for-
CLIMATE
ACTION years. of about 13 million metric tons of carbon, which is ward in agriculture. In addition, these communities
equivalent to the carbon emissions of 344,000 cars. did not previously have resources to monitor the
Phase 1 of this project involved a pilot of 200 mangrove forest, and so were at risk of flooding.
LIFE
BELOW WATER
SDG 15 seedlings and Phase 2 with 1,000 seedlings. The This risk has now been mitigated by the project.
Life on Land team's ambition is to plant a total of 10,000 seed­ Being able to monitor large areas of forest to pre-
LIFE
A typical mangrove hectare lings. The project addresses the need to protect vent fire, flooding and illegal logging can help local
ON LAND

consists of 10,000 seedlings. an important part of the ecosystem of the nearly authorities to maintain protected forest areas in a
3.5 hectares of mangroves 3,000 miles of coastline in Malaysia. Based on the better way (SDG 15). Leveraging on ICT technol­
initial pilot results, Ericsson expects an improve­ ogy can help them to find more sustainable and ef­
PEACE, JUSTICE

are capable of absorbing the


AND STRONG
INSTITUTIONS

carbon emissions of one typical ment rate of up to 50% on the mortality rate ficient ways to monitor and take actions regarding
of seedlings. The main dashboard metrics set to forest protection. Ericsson is using 3GPP technolo-
passenger automobile per year.
PARTNERSHIPS
FOR THE GOALS

measure the health of the mangrove plantations gy for communications (2G/3G) which already has
Increasing the yield of these are: soil moisture, temperature, and electric con- more than 6 billion subscriptions worldwide. This
hectares could help to increase ductivity; ambient humidity, temperature, and wa- will ensure high level of coverage globally and will
carbon sequestration per hectare ter level measurement (SDG 6). For each of these also help to find low­cost communication units for
up to 75%. metrics, Ericsson, working with the NGO and the the sensor gateway.

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CHALLENGE
To protect Mangroves which
are a vital part of Malaysia’s
ecosystem.

“ ACCESS TO
ERICSSON’S MOBILE
APPLICATION HELPS
COMMUNITIES
OPPORTUNITIES FOR SCALE
Ericsson works with local technology providers and
communities so that the development, installation,

MANAGE THEIR
and support of sensors becomes sustainable. For
instance in this case, the maintenance is suppor t-
ed by the community chief. The same real-time

MANGROVE
monitoring could be applied to other agriculture
crops to tell farmers when it is best to plant, water
and fer tilize crops and how best to boost yields by
studying how crops behave under different condi-
tions. The solution can also be applied in specific
areas like fisheries. A similar solution has also now
been deployed in the Philippines, on an islet that is
PLANTATIONS AND
MITIGATE THE RISK
a proposed critical habitat and eco-tourism area.
Aside from the sensors, near real-time images
from cameras will also help the local government

OF FLOODING. THIS
to monitor for intrusion as they keep the area safe
for migratory birds and other wildlife.

Sources and further information


• https://www.ericsson.com/assets/local/ IS CONSIDERED
TO BE A BIG STEP
news/2016/05/ict-sdg.pdf
• http://unfccc.int/secretariat/momentum_for_
change/items/9937.php
• https://www.ericsson.com/en/about-us/
sustainability-and-corporate-responsibility/
sustainable-development-goals
• https://www.ericsson.com/thecompany/
FORWARD IN
AGRICULTURE.”
sustainability_corporateresponsibility/
technology-for-good-blog/2015/11/18/
connected-mangroves-bring-the-iot-to-life-in-
malaysia/
• https://www.ericsson.com/en/news/2017/12/
connected-mangroves-in-philippines

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THE TRILLION DOLLAR SHIFT MARGA HOEK

Figure 23 financing. Roughly US $ 430 billion dollar of remit­


The Internet of Things tances were sent to developing countries in 2016,
offer a potential eco- nearly three times as much as official aid.75 The
nomic impact of global average cost of sending remittances wor th
4 trillion to 11 trillion US $ 200 dollars is 7.4 % but varies greatly across
a year in 202574 corridors: for example, according to the World
Bank, the average cost of sending US $ 200 dol-
lars from a developed country to South Asia is
5.4 %, while the cost of sending the same value
to Sub­Saharan Africa is 9.8 %. Over the past two
years, these fees have remained at nearly 4.5 per-
centage points higher than the SDGs target of 3 %.

Blockchain technology for the financial sector


has been seen as a potential solution to the high
costs of client identification in banking transac­
tions. In fact, financial institutions are embracing
blockchain as a means to reduce fraud, costs, and
delays. Large financial institutions are working
together with some blockchain star tups, such as
KYC (Know Your Customer) Chain and Tradle,
10. NEW TECHNOLOGIES: BLOCKCHAIN AND who have developed platforms that allow cus-
CYBER-SECURITY tomers to record verifications in a “digital wallet”
Blockchain is the revolutionary technology be- stored on a distributed ledger and then share
hind cryptocurrency Bitcoin and is essentially an that information with other financial institutions
ever-lengthening chain of blocks of data used for when requested. Financial institutions spend US
transactions such as financial payments. Each block $ 60 million to US $ 500 million per year to keep
contains a compact record of things that have up with due diligence regulations and Know your
happened in the process. The blockchain technol- Customer (KYC) practices according to a Thom-
ogy is to ensure trust and facilitate transparency son Reuters Survey.76 This new approach could
among transactions as all transactions done in reduce duplication of effor t by both the customer
the blockchain are not changeable and will always and the institutions, promoting efficiency while re­
be visible. The technology enables decentralized ducing time and costs.77
organizing, it is distributed and not centralized
and therefore everyone can be a par ticipant and
there is no single entity in control.
“THE BLOCKCHAIN IS AN
Applications of blockchain technology are ex­ EXCITING NEW TECHNOLOGY
panding and the reasons for its use are also be-
coming more convincing. The cost and inefficiency
THAT CAN POTENTIALLY
associated with making international payments PRODUCE SOLUTIONS
across certain corridors present a barrier to eco- TO SEVERAL OF OUR
nomic development. Cross-border payments are
inefficient, as there is no single global payment in­
PRESSING DEVELOPMENT
frastructure through which they can travel. One CHALLENGES.”
consequence of the fragmented global payments
system is the high cost of remittances, or pay- AANCHAL ANAND, WORLD BANK
ments, which are a critical source of development

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3.5 T HE FOURTH INDUSTRIAL REVOLUTION & TEN BREAKTHROUGH OPPORTUNITIES

Figure 24
How a Blockchain
Works77

In addition, blockchain can also be used in pro- Because of blockchain’s transparency and lack of
viding a secure digital infrastructure for verifying single-entity-control, people in developing coun-
identity. Globally, 1.1 billion people, or roughly one tries where people either lack access to institu-
in every seven, lack proof of their legal identity. tions or consider them expensive, unreliable or
This problem disproportionately affects children untrustwor thy, gain a secure, affordable alterna-
and women from rural areas in Africa and Asia. tive. Researchers have identified the potential
This is an even more severe issue for the world’s role blockchain can play in addressing four de-
more than 21 million refugees. In 2015, the World velopment challenges: (1) facilitating faster and
Bank estimated that “some fifty thousand Syrian cheaper international payments, (2) providing a
refugee children have been born abroad and over secure digital infrastructure for verifying identity,
70 % of them have not been registered at bir th, (3) securing proper ty rights, and (4) making aid
making it almost impossible for them to prove disbursement more secure and transparent. There
their citizenship later on.”78 is consensus that, for blockchain-based solutions
to reach their full potential, governments and de-
Without legal identification, it can be difficult ac­ velopment organizations first need to collaborate
cessing health and education services, open a bank with developers and take steps towards facilitat-
account, get a loan, and even vote. Therefore, peo- ing the use of common repor ting systems and
ple who lack a legal ID struggle to fully integrate creating reliable land registry systems.
into society and achieve their economic potential.
Due to this inequality in identification systems, Blockchain is also used for other transactions such
blockchain developers are working towards im- as energy transactions facilitated by smar t grids.
plementing identity schemes that are crucial for In fact blockchain has the potential to transform
development in a more transparent structure. transaction processes in a number of sectors such
This technological breakthrough can help meet as logistics, retail, and stock trading. A research
the SDG Target 16.9 of “providing legal identity brief from CBINSITES79 identified 30 industries
for all, including birth registration, by 2030.” that blockchain could transform. Blockchain is an

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THE TRILLION DOLLAR SHIFT  MARGA HOEK

The Ericsson report mentioned earlier projects


that by 2021, over 90 % of the world’s population
IN THE NEXT FIVE YEARS, THE
will be covered by mobile broadband networks.
CYBER-SECURITY MARKET This is promising but still needs to be achieved as
SIZE WILL GROW FROM according to the World Economic Forum88, as of
137.85 BILLION DOLLARS May 2016 more than half of the world’s popula-
tion did not have internet access. So if this project-
IN 2017 TO 231.94 BILLION ed 90 % coverage is going to be achieved in the
DOLLARS BY 2022. next few years, internet companies must find ways
to accelerate their efforts.
MARKETSANDMARKETS.COM

THE FIRST PREDOMINANT


CHALLENGE THAT MUST
exciting breakthrough in how we do business. Cy- BE ADDRESSED IS: FULL
ber-Security is a growing issue. Blockchain is help-
ing to block fraud and hacking by its very design.
WORLDWIDE SATURATION OF
Because transactions are followed and verified by INTERNET CONNECTIVITY.
multiple par ties, there isn’t one central computer
system to hack. Companies such as Guardtime80 The second challenge is achieving sustainable
and Remme81 are bringing blockchain technolo- energy production, storage and regeneration to
gy to companies and enhancing the security with fuel the technological products. This refers to the
better encryption and eliminating human error - “greening of the ICT and Technology sector” that
caused for example by weak passwords. was mentioned earlier. Sustainable energy is of
course vital to keep the technology running. With
As the world gets more connected and reliant billions of devices running on electricity, elec-
on internet, cyber-security will become a vital tricity production has got to become clean and
piece of the puzzle to ensure safety. And we are sustainable. In the section about energy, we will
not just talking about the safety of our money or look into the challenges and opportunities for this
documents, but physical safety as well. As driver- sector. The third challenge is to partner with com-
less cars evolve, as well as the Internet of Things, panies from all sectors, as well as governmental
we cannot tolerate infiltration and disablement. institutions to assist them in creating sustainable
Therefore, cyber-security will grow as a market in solutions within their domains. This refers to the
the coming years. It is estimated that in the next “greening through ICT and Technology” discussed
five years, the cyber-security market size will grow through­out this chapter.
from US $ 137.85 dollars in 2017 to US $ 231
dollars by 2022.82 Other challenges at the moment for ICT and tech-
nology to make an impactful contribution to the
SDGs are: big players in the technology industry
WRAP UP must take a leading position, and the entire indus-
ICT and technology are rapidly advancing and can try must focus on profitable sustainable solutions
propel the solutions to the SDGs. The oppor- to the Global Goals. Given the enormous market
tunities abound and are extremely exciting. But that awaits ICT and technology now and in the
there are challenges facing this sector. The first near future, and the integral part this sector plays
predominant challenge that must be addressed in in all other sectors, if ICT and technology compa-
order to facilitate the burgeoning innovations as nies and innovators commit themselves to con-
described in this chapter is: full worldwide satura- tributing to the achievement of the SDGs, then we
tion of internet connectivity. will see a grand movement in the right direction.

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3.5  THE FOURTH INDUSTRIAL REVOLUTION & TEN BREAKTHROUGH OPPORTUNITIES

ICT and technology can be a positive influence mistake, there are tremendous benefits awaiting
on our lives, our work and our environment. It us in this four th industrial revolution, but as with
can help people in developing countries gain ed- any revolution, there are dangers as well.
ucation and break out of poverty. It can help to
conserve our resources and provide information ICT and technology have transformed the way
that can help us design sustainable solutions. But we live. Technological applications transcend all
ICT and technological advances can also come sectors, and the technologies themselves work
with risks that we must not ignore. For example, together such as IoT and smar t grids, and drones
while small and big data collection provides the and AI. There have been more rapid changes in
information that can be used for people’s bene- technology than in anything we have ever expe-
fit, it can also encroach on people’s privacy. And rienced before. And fur ther rapid changes await,
with the importance and far-reaching benefits of with major tipping points happening within the
universal internet connectivity and more connec- next 10 years. But as stated in the beginning of
tions with things and between them, we become this chapter, technology by itself does not assure
more vulnerable to hacking and security breach- us of positive impact on society and environment.
es. And let’s not forget the warnings mentioned It must be deployed as such and directed towards
earlier in the chapter about robotics and artificial the Global Goals. n
intelligence getting out of our control. So make no

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4
THE TRILLION DOLLAR SHIFT  MARGA HOEK

CAPITAL

Achieving the SDGs will require funding and cooperation on an unprecedented scale, with the private sector hold-
ing a pivotal position. The UN estimates the annual global cost to meet the SDGs is between US $5 and $7 trillion
for the next 12 to 15 years. This enormous amount of capital investment will not be met by public funds alone, and
it is therefore up to market participants to fill this financing gap. Although the movement towards “investing for
good” is growing, it is still happening too slowly and continues to be a niche market that is not scaling up fast
enough. Shared value thinking will become increasingly important and blended finance initiatives will be integral
to success. This chapter explains the current gap in financing, the potential impact private capital can have on all
SDGs, and the shared value investing opportunities. To demonstrate how we need all capital, we will explore some
of the various parties and services in the capital spectrum, showing in what ways they can and must contribute in
order to achieve progress on the SDGs.

4.1 THE CAPITAL CALL: THE Traditionally, the majority of development spend-
ing comes from governments and public resourc-
es, yet the largest potential is from private sector
GOALS NEED CAPITAL AS MUCH investments.1 This is precisely the trajectory from
billions to trillions, which each country and the
AS CAPITAL NEEDS THE GOALS global community must suppor t together to fi-
nance and achieve the vision of the SDGs. Private
As much as capital needs to be directed toward capital is becoming an increasingly impor tant tool
the Goals, the Goals need to attract capital as for global development as well as one of the big-
well. There is a growing need for the world to gest business oppor tunities.
mobilize capital in the direction of achieving the
SDGs. The investment landscape now shows a
large gap between the amount of capital it will
take to achieve the SDGs by 2030, and the finan-
“WITH GLOBAL CHALLENGES
cial resources from government and development SUCH AS CLIMATE CHANGE,
aid that are currently available. Therefore, private POPULATION GROWTH
capital is urgently needed. By utilizing develop-
ment finance and philanthropic funds strategically
AND RESOURCE SCARCITY
to mobilize and leverage private capital, we can ACCELERATING, THERE IS
propel business and create market oppor tunities AN INCREASED URGENCY
for a more sustainable world.
FOR THE FINANCE SECTOR
FROM BILLIONS TO TRILLIONS BOTH TO ADAPT AND TO
To meet the investment needs of the SDGs, the HELP BRING ABOUT THE
global community must change the discussion NECESSARY CHANGES IN OUR
from billions to trillions. There needs to be a tril-
lion dollar shift in investments of all kinds: public
ECONOMIC AND BUSINESS
and private, national and global. The Goals need MODELS.”
an innovative capital mobilization with a global
change of mindset, approach and accountability SÉVERIN CABANNES, DEPUTY CEO OF SOCIÉTÉ
to create the transformation needed in both de- GÉNÉRALE
veloping and developed countries.

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4.1 THE CAPITAL CALL: THE GOALS NEED CAPITAL AS MUCH AS CAPITAL NEEDS THE GOALS

The market opportunities in industries such as tional par ticipants – including regulators, banks,
food and agriculture, cities, energy and materials, insurance companies, stock and bond exchanges
and health and well-being alone could create 380 – and billions of individual market par ticipants –
million new jobs by 2030.2 Although this presents there is an immense oppor tunity to use this pow-
unprecedented business potential, we still have a er of scale for profit and for good.
long way to go. The allocation of capital in some
areas, like infrastructure investments, currently
only garners about 10% of its money from the PRIVATE CAPITAL MUST FILL MOST OF THE GAP
private sector proving that there is ample room Private capital is crucial to meeting the 2030
for growth in private sector involvement. Goals, even more so since the relative impact of
Official Development Assistance (ODA) funding
has diminished. A significant amount of capital is
TRADITIONALLY, THE MAJORITY needed to achieve the SDGs. With the necessary
OF DEVELOPMENT SPENDING global investment of US $5 to $7 trillion, as re-
por ted by the United Nations Conference on
COMES FROM GOVERNMENTS AND Trade and Development (UNCTAD), to achieve
PUBLIC RESOURCES, YET THE the SDGs worldwide, we need all par ties to par-
LARGEST POTENTIAL IS FROM ticipate. Of this total amount needed in state
spending, investment and aid for infrastructure,
PRIVATE SECTOR INVESTMENTS. such as water and sanitation, agriculture, clean
energy, transpor tation, and telecommunications,
“Billions to trillions” signifies the realization that as well as tens of billions each for such are-
achieving the SDGs will require more than what as as health, food security, and education, it will
is available in public money, it will demand that the take approximately US $3.9 trillion per year to
private sector step in to fill the gaps. The financial achieve the SDGs in developing countries alone.3
system consists of tens of thousands of institu- The funding available for this is estimated to fall

Figure 25
The Private Sector: The Missing Piece of the SDG Puzzle Funding Gap Chart

On average, business Social Impact Invest-


ment enables M-KOPA
accounts for 60% of
to connect more than
GDP, 80% of capital Enterprises that generate
Private sector 300 000 homes in measurable social &
flows and 90% of jobs Kenya, Tanzania &
instruments can in developing countries financial returns can bring
help increase PRIVATE Uganda to solar power
effectiveness, innovation,
investment in SECTOR accountability and scale
emerging & frontier to development efforts
markets