PwC SDG Engagement Survey 2015 How ready is business to support government achieve the goals?

PwC Why do the global goals matter for business? Now is the time to mobilize the global business community as never before. Trillions of dollars in public and private funds are to be redirected towards the SDGs, creating huge opportunities for responsible companies to deliver solutions. 2 June 2016 “ ” PwC SDG

PwC Let’s take a step back… What were the Millennium Development Goals? June 2016PwC SDG 3

PwC Millennium Development Goals: An overview Millennium Development Goals (MDGs) are a set of globally agreed goals which aim to reduce poverty in all its forms around the world and to achieve development challenges. The framework consists of 8 goals and 21 targets. MDGs were agreed in the year 2000 at the UN Millennium Summit. MDGs expired at the end of June 2016PwC SDG

PwC Millennium Development Goals: An overview Goal 1: Eradicate extreme poverty and hunger Goal 2: Achieve universal primary education Goal 3: Promote gender equality and empower women Goal 4: Reduce child mortality Goal 5: Improve maternal health Goal 6: Combat HIV/AIDS, malaria and other dis eases Goal 7: Ensure environmental sustainability Goal 8: Develop a global partnership for development 5 June 2016PwC SDG

PwC Future outlook… Why do we need the Sustainable development goals? June 2016PwC SDG 6

PwC Why do we need another set of goals (SDGs)? The SDGs expand on the millennium development goals. Failures/Weaknesses of the MDGs The MDGs failed to consider the root causes of poverty, or gender inequality, or the holistic nature of development. They were considered targets for poor countries to achieve with finance from wealth states. In 2015, global emissions of carbon dioxide have increased over 50 per cent since 1990 and water scarcity now affects 40 per cent of people in the world and is projected to increase. In 2015, around 1billion people still live on less than $1.25 a day and more than 800 million people do not have enough food to eat. Millions of woman still die during childbirth and still fight for human rights. 7 June 2016PwC SDG

PwC8 SDGs – what do the global goals look like? June 2016PwC SDG

PwC SDGs – Great achievement to get to launch 193 countries agreeing and committing to achieving common goals 17 goals and 169 targets and indicators a single framework in one language real determination to implement change and measure success real time June 2016 PwC SDG

PwC Sustainable Development Goals A new direction for government and business CEOs will want to know how their business supports or detracts from the government's goals. Especially if they want to be on the receiving end of 'fair' regulation and a welcoming licence to operate. It’s not about business implementing the SDG's - it’s about business having a strategy that, at the national level, is goal-congruent with government ambition…. 10 Contribution Governments have signed up to the SDGs - they will look to business to help achieve them Fair regulationGoal congruent Business engagement Consumers want business to engage June 2016PwC SDG

PwC What are the implications for business? Measuring contribution: Collect data Value impact Evaluation against SDG Strategy review Innovation Intervention Goal achievement 11 Will business help or hinder government achieve their goals? Implications: Extensive data collection Impact assessment and valuation tools Evidencing contribution License to operate Assurance Reporting Investment June 2016PwC SDG

PwC Our Survey 12 June 2016 Approach: Question developed by PwC Process run by Research Insight Businesses ed directly Citizens encouraged to respond via various channels including social media UNGC and GRI networks June – July 2015 Global Reach 986 businesses across 90 Countries 2015 citizens from across 37 countries South Africa 31 businesses 103 citizens Results Global and South African view PwC SDG

PwC Awareness and responsibility 87% 92% Global of businesses aware 28% 31% global of citizens aware Prime responsibility to deliver rests with: Government 48% Business 55% Citizens 13 June 2016 PwC SDG

PwC Priorities – a South Africa perspective 14 Business has the greatest impact Business sees the greatest opportunity Citizens prioritise the importance Top June 2016PwC SDG

PwC Priorities – Global Perspective 15 Business has the greatest impact Business sees the greatest opportunity Citizens prioritise the importance Top June 2016PwC SDG

PwC Employment is ranked high across the globe, but otherwise regional interests / priorities reflected North America Top 3 RANKED SDGs Employment (50.16) Health (31.11) Gender (26.03) Top UNRANKED SDG Oceans (92%) South America Top 3 RANKED SDGs Employment (46.55) Education (27.86) Climate (26.19) Top UNRANKED SDG Oceans (94%) Africa Top 3 RANKED SDGs Employment (47.69) Infrastructure (30.38) Climate (27.12) Top UNRANKED SDG Oceans (94%) Hunger (92%) Asia Pac Top 3 RANKED SDGs Employment (43.03) Climate Change (27.14) Infrastructure (24.00) Top UNRANKED SDG Inequality (90.3%) Europe Top 3 RANKED SDGs Employment (42.67) Climate change (25.89) Health/education (24.05) Top UNRANKED SDG Oceans (92%) Middle East Top 3 RANKED SDGs Health (36.13) Employment (35.48) Infrastructure (31.61) Top UNRANKED SDG Oceans (100%) Business perspective Q2a:Please rank the five SDGs where you believe your business (and your value chain) has the greatest impact. 14 June 2016PwC SDG

PwC South Africa – business v citizens perspective 17 June 2016PwC SDG

PwC Engagement is high 18 June 2016 Business has already started to take action: 64% South Africa 71% Global Despite only approx. 3% (10%) of business respondents ranking business with prime responsibility PwC SDG

PwC 80% business plans to assess its impact, but most have only some of the SDGs in mind Assessing SDGs: where to start – global v SA 19 Ideal, but practical? How do you choose which ones? SA 9.7% SA 19.3% SA 6.5% SA 35.5% SA 25.8% SA 3.2% June 2016PwC SDG

PwC20 June 2016 Much activity is already underway with clear priorities over the next five years. At what point do conversations about strategy always factor in the implications for achieving one or more SDGs? But is the ambition high enough? After five years, there’s still a significant gap in action to bridge. PwC SDG

PwC Citizens think it very important for business to sign up to the SDGs 21 June 2016PwC SDG

PwC Customers have great expectations (not matched by business) 22 90% citizens expect business to sign up to the SDGs 50% expect business to embed them into their strategy - higher in some countries i.e. Malaysia and UK But only 31% of business is working on this now and only 41% think they will have done it within 3 years. June 2016PwC SDG

PwC Consumer pressure 23 78% citizens say they are likely or very likely to use the good and services from companies signed up to the SDGs – in many countries it’s even higher June 2016PwC SDG

PwC On the same wavelength? 24 June 2016PwC SDG

PwC Will risks be missed? Mapping WEF Global risks against business priorities 25 June 2016PwC SDG

PwC Word heat map from the survey verbatims 26 June 2016PwC SDG

27 Next steps… Two critical business imperatives: 1.Security Businesses that align strategy with national priorities will most likely be given “licence to operate” 2. Resilience Governments are using SDG’s to inform policy and regulation. Businesses aligned will have more resilient business models. Successful engagement with SDG’s to cover 7 steps: 1.Agree which SDG’s your business has an impact on directly and indirectly. 2.Agree methodology and measure your business impact across all SDG’s 3.Understand where your business has a positive or negative impact per SDG 4.Understand priorities of the governments your business operates under 5.Prioritise reducing negative impacts and increasing positive impacts according to what needs to be achieved by governments 6.Incorporate this learning into business planning and strategy 7.Evidence how you impact on the SDG’s and your contribution

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Thank you Jayne Mammatt This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. © 2016 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.