TRANSFORMATION, GROWTH AND THE GREEN ECONOMY

25 - 26 November 2013 Marina Bay Sands Singapore

www.responsiblebusiness.com

OUTCOME STATEMENT & RECOMMENDATIONS

Advancing Partnership Solutions to Global Challenges

RESPONSIBLE BUSINESS FORUM ON SUSTAINABLE DEVELOPMENT

OUTCOME STATEMENT & RECOMMENDATIONS

TRANSFORMATION, GROWTH AND THE GREEN ECONOMY

By 2050, the global population will hit 9 billion people and the increased demand for water, food and energy will exceed our current capacity to provide. This will be the defining challenge of the 21st century, but also a great economic opportunity to accelerate business solutions and policy frameworks for a more sustainable world. Nothing short of a revolutionary approach to the way governments think and businesses operate is required to meet this global challenge. Business leaders and policymakers who do not embrace the transformation to a global, green economy will find themselves left behind in the new world order.

For businesses, addressing sustainable development in their operations, investments and products can lead to increased innovation, investment and good returns. This transition to sustainable development means that progressive business leaders and companies are beginning to look at focusing on natural capital valuation within decision-making.

RESPONSIBLE BUSINESS FORUM ON SUSTAINABLE DEVELOPMENT

OUTCOME STATEMENT & RECOMMENDATIONS

INDUSTRY SECTOR PERSPECTIVES AND RECOMMENDATIONS Over 500 industry, governments and NGO participants at the Responsible Business Forum Singapore on Sustainable Development 2013 presented the following recommendations to decision makers within industry sectors, specifically focusing on how to incorporate the valuation of natural capital. These recommendations contain numerous overlapping themes, around which include: Investment in innovation will provide cost savings in the long term and set businesses apart from one another Collaboration across individual sectors is required to ensure existing solutions are shared and conflicts overcome Government and policy makers need to create a level playing field and provide clarity for business leaders to make investment decisions Increased communication on the successes will generate inspiration and empower more direct action of sustainable solutions across private, public and civil society Natural capital should now be valued and considered in business decisions with the same importance as financial capital Business must look beyond self-gain. Their sustainability efforts must secure the confidence of investors and consumers.

1. AGRICULTURE AND FORESTRY Recommendations: Integrate existing solutions across the landscape in the policy and market context to create cross-sector collaboration. Incorporate natural capital in credit risk model, analysis and public private partnerships. This will enable banks to mitigate risk with corporate clients and enable investments in smallholders. Place farmers at the center of decision making and ensure there is sustainable development intended for their welfare. This is in the form of customised efforts for farming communities education, empowerment, enrichment, entrepreneurship. In addition, there should be incentives for farmers to benefit from employing sustainable business practices which recognises that farmers need to have a good standard of living.

RESPONSIBLE BUSINESS FORUM ON SUSTAINABLE DEVELOPMENT

OUTCOME STATEMENT & RECOMMENDATIONS

2. BUILDING AND INFRASTRUCTURE Recommendations: For the public-sector to take stronger leadership in: a. adopting whole-of-government approach to Building & Infrastructure projects b. mandating green buildings c. providing industry data for transparency and better decision making d. implementing a carbon tax and channel funds from this into urban sustainability projects. For the public and private sector to collaborate and set up pre-project innovation committees for all major building and infra public and private sector to enable integrated design. For public, private sector and civil society to promote green consumerism / behaviour through a public-private sector partnership (PPP) approach, education, competitive pressure (e.g. public comparison of electricity bill between council housing and districts) and for building owners to share savings with tenants. For all private and public sector organizations to commit to a builders responsibility code of conduct to consider the full life-cycle of materials in construction and infra projects and ensure any material is channelled back into the system. For private, public and people sectors to work together to bring nature and ecosystems back into urban environments, and to consider natural capital accounting in making decisions on building and infrastructure projects. For financial institutions / banks to provide loans and funds for energy services companies to conduct audits and retrofits to improve sustainability and energy.

3. CONSUMER GOODS Recommendations: The industry should embrace conflict through collaboration to share best practices and learnings. Ensure the conversation is inclusive to the diverse set of stakeholders (such as the stakeholders in the field) and that the language used to describe natural capital is translatable for this group. The global conversation around natural capital needs to change in order to embrace the complexity and drive simplicity and low cost solutions for all companies. The role of communication for consumers needs to be considered as they will not pay a premium.

RESPONSIBLE BUSINESS FORUM ON SUSTAINABLE DEVELOPMENT

OUTCOME STATEMENT & RECOMMENDATIONS

4. ENERGY Recommendations: Awareness on all levels to enable stakeholders to make informed decisions and drive a cycle of continuous improvement. Create an inclusive environment for all stakeholders in order to enable and empower civil society, private and public sector. Clarity and direction from regulators and the government to create a level playing field in order that the private sector can make investment decisions with confidence. A drive to showcase successful projects in order to inspire and infuse sustainable solutions across civil society, private and public sectors.

5. FINANCIAL SERVICES Recommendations: Banks need a mechanism that recognises good performance on ESG (that includes common metrics and transparency).This should encourage peer to peer sharing to drive more discussions specifically in the APAC region. Governments and sovereign wealth and pension funds to lead by example by including natural capital/ESG into asset allocation policies. Insurance premium calculations should include ESG risks and mitigating actions. Accounting firms should use close relationship with CFOs to educate and influence on natural capital issues rather than relying on the sustainability team to drive the agenda. Rating agencies in relation to CSR performance can strengthen the influence ESG factors have on their ratings.

6. PALM OIL Recommendations: Increase the quality and quantity of available information to allow the transparency of data available and the traceability on the processes and products available. This will also help to develop customer awareness on the quality of sustainable palm oil. Develop incentives for sustainable plantations across the key players across the sectors: - Governments to incentivise sustainable palm oil usage and make clear the certifications required that are universal not country/region specific. - Financial institutions to set up benchmarks for financings and encourage sustainable investments Develop the role of small players which represent 40-50% of the supply of palm oil.

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