With 2030 fast approaching, the Australian government must act quickly to make meaningful progress on the Sustainable

Devel-
opment Goals. As Minister of Cities, you have an incredible opportunity to lead Australian cities & communities into a more
sustainable future. By embracing a soft governance approach to achieving these goals, you can push Australia forward from a
sustainability perspective while keeping economic growth top of mind.

The Future is Green ($ + ): Title Soft Governance has demonstrated its potential over the last few decades. While perhaps slower than we would like, soft gover-

A Soft Governance Approach

nance has shown an ability to produce mutually beneficial outcomes for financial markets and the planet. It does this by taking a
voluntary approach to compliance, allowing incentives (consumer demand, reputational risk, industry best practices) rather than
legislation drive uptake of sustainable practices among corporations & organisations.

to SDG 11 Take a look below to better understand this approach and the possibilities it offers for acheiving SDG 11 while maintaining a
strong Australian economy.

Soft Governance is a market-led approach, seeking to create

Government Planning & Visioning NGOs Consumer NGOs Consumer Brand Damage Resource Control

Soft Gov Toolbox

alignment between economic growth and social / environmental Education Incentives Campaigns
Certification Bodies Consumers Strategies
sustainability needs. Governments*
Defining Soft Governance

Corporations Media Media

Key Features Public Governments

Consumers*
Consumers*
Corporations*
Industry Standards Research Certification Bodies
Corporations
Corporations Governments
- Voluntary / non-compulsory compliance, guided by incentives. Institutions
Corporations
NGOs*
Certification Bodies
Corporations
Certification Certification Bodies* Product Labeling Programs Certification Bodies* Research
- Flexible application depending on scale, setting and context. Media
Schemes Corporations Corporations
Institutions

Industry Associations Consumers ESG Investing Corporations NGOs Governments

- Empowers consumers as major stakeholders and potential drivers of Research
Consumers Consumers Media
change. 1
Government Institutions

From Local to Global Scale Why Soft Governance?

Who’s Involved Government can apply Soft
Governance at any level from
local (council sustainability
Organisational Corporations
Certification
NGOs
Industry
plans) to transnational Low-lift from government in terms of enforcement.
Bodies Associations 2
(UN SDGs*).

Private Sector Civil Society

Widely practiced, many existing models to draw on.
Research
Institutional Governments Media
Institutions
Similarly, Private Sector and
Civil Society may influence or
be influenced via Soft Gover- Local
Non-disruptive to economy, allows for gradual transitions
3
nance at each of these scales.
Concerned
Individual Consumers
Public Metro

State If it’s good enough for the UN,

National
it’s good enough for
$
Australia.*
Major Sectors Transnational
(For SDG 11)
Energy Waste Water Construction Financial & Transport Manufacturing
Management Insurance Services

Make cities 11.1 By 2030, ensure access for all to adequate, safe and affordable housing 11.6 By 2030, reduce the adverse per capita environmental impact of cities,
inclusive, and basic services, and upgrade slums. including by paying special attention to air quality and municipal and other
SDG 11

waste management.
safe, resilient 11.2 By 2030, provide access to safe, affordable, accessible and sustainable
and sustainable. transport systems for all, improving road safety, notably by expanding public 11.7 By 2030, provide universal access to safe, inclusive and accessible, green and
transport, with special attention to the needs of those in vulnerable situations, public spaces, in particular for women and children, older persons and persons
While Soft Governance can impact women, children, persons with disabilities and older persons. with disabilities
every part of SDG 11, here are five
indicators it is especially well suited 11.4 Strengthen efforts to protect and safeguard the world’s cultural and natural
to help reach. heritage. 4

Industry Standards Consumer Incentive Programs

It can be easy being green Industries, often through industry Local / Regional / State / National /
ISCA (Infrastructure Sustain-
Government can offer incentives for
Where

ability Council of Australia)

associations or third party bodies, Transnational consumers to buy energy efficient
pushes industry standards
can influence best practices appliances, source renewable energy,
Examples

and practices via it’s

through setting industry standards Industry build / buy sustainable homes, etc.
Soft Governance allows the private sector and civil society to largely Associations
Governments Infrastructure Sustainability
Who

mapped to SDG 11. driving demand for such products,

(IS) rating scheme. This is
self-govern, working together to evolve practices and find solutions that Corporations
voluntary for industry
which may in turn drive down prices
increasing accessibility.
work to align economic, social and envinronmental needs around SDG11. members, but has seen some
Sectors

The Solar Homes Program

Where

success in shifting best

Local / Regional / State / National offers rebates and
practices.

Examples
interest-free loans to reduce
Government Planning & Visioning 6 the upfront cost of installing
Product Labeling Corporations Governments
Who

solar panels, solar hot water

Smart Cities and Suburbs or a solar battery. (Victoria)
Publish sustainability plans and/or
Programs
Consumers
Where

Cert. Bodies
strategies to encourage private Local / Metro / State/ National Program (Federal) - 11.1, 11.2,
sector innovation & encourage 11.3, 11.7
Third party industry bodies require
An incentivised Great example for 11.6.
Examples

industries to consider their own NGOs Governments

private sector-
Who

forms of voluntary compliance. Urban Forest Strategy (City disclosure of ingredients, energy / 7
Consumers Media water efficiencies, biodegrability,
of Melbourne) - 11.7
Resource Control Strategies
and other sustainability-related
gives us a
Sectors

Zero Net Emissions Strategy measures to market with label to

$ Withholding or usage strategies can
(City of Melbourne) 11.2, 11.3 eco-conscious consumers.

5
chance at rapid be used to shift sustainability
practices of manufacturers or
Certification Schemes innovation and
suppliers. Companies may employ
these proactively to ensure access
Where

to a sustainable resource or
change.
Third party certification bodies State / National / Transnational
reactively to external stakeholder Many possibilities here that serve
offer industry-specific standards
pressure such as brand damage SDG 11.
and certifications around sustain-
Certification campaigns.
ability. Gov may encourage or
Short on political
Governments
Bodies For example, to make our built
support through economic
Where
Who

environment more sustainable,

will? Soft Gover-
Consumers Media Local / Regional / National
incentives / consumer education. POTENTIAL INCENTIVES builders could agree to only work
Examples

nance encourages Numerous Built Environment with timber suppliers who meet
Where

State / National / Transnational Certification Bodies certain sustainability standards.

Certification Schemes: future
gov to guide rather consumer
resource
Who

NGOs Governments Governments could decide to

than to legislate. Certification Corporations
Greenstar / Green Building demand
Bodies International Living Future availablility Consumers
only buy appliances for
Examples

Examples

NABERS Corporations
Who

Governments government buildings that meet

Industry Building Energy Efficiency Institute’s DECLARE program acts a certain energy efficiency
Sectors

Associations Consumers Certificates (BEEC) as a “nutrition” label for buildings standard to reduce city emissions.
LEED including detailing red list industry reputational
Sectors

BREEAM ingredients. 11.1 + 11.6 expectations risk

WELL 11.1 + 11.6 9

ESG Investing Brand Damage Campaigns

Super funds invest in and hold business- A coaltion of super funds GetUp’s Better Power campaign Soft Governance
Where

NGO or grassroots consumer driven

Where

National / Transnational Local / Regional / State / National / educated consumers about the
es accountable for their commitment to were key in ousting leader-
ESG and the reputational risk of ship of Rio Tinto following the
campaigns used to affect a company’s
social license to operate OR shift
Transnational problematic dominance of the helps to get the
Example

Example

Big 3 energy companies and

non-compliance around sustainability NGOs Corporations
company’s destruction of
important Aboriginal Sites.
consumer dollars away from a company their reliance on coal. It economy and the
Who

initiatives / goals. with unsustainable practices to a more NGOs Corporations

environment on the
Sectors Who

Consumers Media Reports have cited a shift in encouraged and aided

sustainable option. Consumers Media consumers to switch to a
investor and board focus on
company offering renewable same team.
Sectors

ESG responsibilities and

minimizing reputational risk. energy. Great example for 11.1 +
Great example for 11.4. 11.3.

10 11

LIMITATIONS Creating sustainable cities and communities will depend on the private and public sector
As with any form of governance, this approach has its shortcomings including: coming together to work on solutions that are environmentally, socially and economically viable
for our long-term sustainability.

Forcing this process through legislation and other forms of harder governance can be difficult
Voluntary Underlying May not work
Continues to and without the political will or power, you may waste time trying to pass legislation that could
compliance systemic issues quickly enough
encourage be spent more productively leveraging tools outlined here. While this is not a perfect form of
makes enforce- are not to meet the
consumption. governance, it is familiar and readily accessible to you and other actors today and can help
ment difficult. addressed. SDGs. Australia be an international leader by reaching the goals of SDG 11 by 2030.

REFERENCES
1) Aras, G & Ingley, C 2017, Corporate Behavior and Sustainability: Doing Well by Being Good, Gower, London.
2) Schoenfeld, J & Jordan, A 2020 'Towards harder soft governance? Monitoring climate policy in the EU',
Journal of Environmental Planning & Policy.
3) The Critical Sustainabilities Project 2020, Market-Oriented Sustainabilities, The Critical Sustainabilities
Project, viewed September 17 2020, <https://critical-sustainabilities.ucsc.edu/market-oriented/>.
4) United Nations - Department of Economic and Social Affairs, Sustainable Development n.d., Goal 11, UN,
viewed September 17 2020, <https://sdgs.un.org/goals/goal11>.
5) City of Melbourne 2017, Sustainable Development Goals - Opportunities and Recommendations Report
2017, viewed September 17 2020 <https://www.melbourne.vic.gov.au/SiteCollectionDocuments/sus-
tainable-development-goals.pdf>.
6) Sustainable Development Goals Australia n.d., Delivering Sustainable Development Through
Infrastructure, Sustainable Development Goals Australia, viewed September 16 2020,< https://s-
dgs.org.au/project/delivering-sustainable-development-through-infrastructure/>.
7) Solar Homes Program 2020, Solar Rebates, viewed 16 Stepember 2020, <https://www.solar.vic.gov.au/solar-rebates>.8) Living Future Institute Australia 2019, Declare, viewed 17 Stepember 2020,
<https://living-future.org.au/declare/>.
9) Wolf, J 2013, ‘The Relationship Between Sustainable Supply Chain Management, Stakeholder Pressure and Corporate Sustainability Performance’, Journal of Business Ethics, vol. 119, pp. 317–328.
10) Toscano, N & Knight, E 2020, 'Colonial rabble rousers: How a group of Australian funds toppled Rio's chief', The Sydney Morning Herald, 19 September, viewed 19 September 2020, <https://ww-
w.smh.com.au/business/companies/colonial-rabble-rousers-how-a-group-of-australian-funds-toppled-rio-s-chief-20200918-p55wxl.html>.
11) GetUp! 2020, Better Power Campaign, GetUp! , viewed September 15 2020,
<https://www.getup.org.au/campaigns/renewable-energy/send-the-dirty-three-a-message/switch-to-better-power-today>.