DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

1. “UNEP and the Global Compact” Jacqueline Aloisi de Larderel, Director UNEP Division of Technology, Industry and Economics(DTIE) Presentation at OECD Roundtable on Global Instruments for Corporate Responsibility, Paris, 19 June 2001 DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

2. The Global Compact • Shared Values for the Global Market • Promoting Responsible Global Citizenship “…let’s choose to unite the powers of markets with the authority of universal ideals. Let us choose to reconcile the creative forces of private entrepreneurship with the needs of the disadvantaged and the requirements of the future generations…” Kofi Annan

3. The Global Compact Vision: To work towards a more stable and inclusive global market by encouraging the international business community to build universal principles into its strategic vision and daily practices

4. The Global Compact • Nine principles: • human rights (HCHR) • labour (ILO) • environment (UNEP)

5. The Global Compact • human rights - support and respect the protection of international human rights within their sphere of influence; and - make sure their own corporations are not complicit in human rights abuses

6. The Global Compact • labour - freedom of association and the effective recognition of the right to collective bargaining - the elimination of all forms of forced and compulsory labour - the effective abolition of child labour; and - the elimination of discrimination in respect of employment and occupation

7. The Global Compact • environment - support a precautionary approach to environmental challenges; - undertake initiatives to promote greater environmental responsibility; and - encourage the development and diffusion of environmentally friendly technologies

8. The Global Compact • Strategic goals: • make the nine principles of the Global Compact part of corporate activity everywhere • offer a platform for dialogue and action in support of the nine principles and broad UN goals

9. The Global Compact • Approach: • expanding the circle of companies • advancing effective application of the principles through: • promoting cooperation between business, labour and civil society organisations • encouraging innovation and experimentation • sharing experiences • communicating results and reporting • not an endorsement of companies

10. The Global Compact • Indicators of success: • international business community embracing the nine principles • corporate ‘transparency’ through reporting • strengthening UN capacity to work and undertake joint efforts with business community and other social partners “success must be demonstrable just as failure must be transparent”

11. The Global Compact • Core activities: • learning (company submission, comments, best practices) • dialogue (cross-cutting challenges, build on other initiatives) • projects

12. The Global Compact • a partnership between the UN and business • labour and NGOs involved to help strengthen roots of Compact, in particular by: • discussing company submissions • participating in thematic dialogues • joining companies in partner projects with UN

13. UNEP’s contribution to the Global Compact • Voluntary Initiatives in various industry sectors • Engaging stakeholders: a programme to build multistakeholder dialogue • Global Reporting Initiative • Reaching out to industry associations “it’s not just desirable for business to get involved in the quest for sustainability, it is essential…” Klaus Töpfer

14. UNEP’s contribution • Voluntary Initiatives: • Financial Services Initiatives • Financial Institutions • Insurance • Tour Operators Initiative • Advertising Initiative • Mobility Forum • Global e-Sustainability Initiative

15. UNEP’s contribution • Engaging stakeholders: • to help build a multistakeholder dialogue on sustainability issues • relevant publications (recent titles): - The Oil Sector Report: A Review of Environmental Disclosure in the Oil Industry (1999) - Life and Science Report (2000) - The Global Reporters:an international benchmark survey on reporting (2000) - Automotive industry (forthcoming)

16. UNEP’s contribution • Global Reporting Initiative: • convened by Coalition for Environmentally Responsible Economies (CERES) and UNEP • established in ‘97 to design globally applicable guidelines for preparing enterprise-level sustainability reports • June 2000 - revised Guidelines published • 2001: regional outreach, sectoral revision of Guidelines, structured feedback, preparations for permanent GRI institution • involvement of the ILO and OHCHR

17. UNEP’s contribution • Outreach to industry associations, consulting with private sector and non-corporate stakeholders: • UNEP Consultative Meeting with Industry Associations- annual event in Paris • preparations for WSSD/Rio+10, in cooperation with fellow UN agencies and NGOs

18. The Global Compact and other global instruments • All voluntary efforts to promote corporate accountability and sustainability • Complementary efforts • Specific features of the Global Compact: • global: all parts of the world, MNEs and SMEs • focussed: three core areas • network-based • NGO involvement / multistakeholder process

19. Developments since Davos • High level launch: New York, 26 July 2000 • Various national and regional events • First Issues Dialogue on Business in Zones of Conflict, New York, 21-22 March 2001 • UNEP roundtable on the “Global Compact in Practice”, Nairobi, 3-4 February 2001

20. Next key steps • October 2001: review of business case studies, Warwick, U.K. • September 2002: WSSD, Johannesburg, South Africa

21. For more information, visit: www.globalcompact.org www.unep.org www.uneptie.org