1 UNGC Module 1 – Intro THE UN GLOBAL COMPACT MODULE 1 ENVIRONMENTAL PRINCIPLES

2 UNGC Module 1 – Intro INTRODUCTIONS AND ICE BREAKER

3 UNGC Module 1 – Intro The Global Compact Course Objectives 1. To introduce the Global Compact and its three environmental principles – for existing and new members to the Compact, as well as for prospective signatories 2. To convince managers that it is in their company’s interests to undertake activities in support of the Global Compact 3. To help companies to develop strategies and programmes that support the three principles

4 UNGC Module 1 – Intro The Global Compact Course Structure Module 1 – Introducing the Global Compact (GC) Module 2 – Business Case for the GC Environmental Principles Module 3 – Understanding the GC Environmental Principles Module 4 – From Principle to Practice Module 5 – Business and Sustainability Initiatives: An Overview

5 UNGC Module 1 – Intro The Global Compact Background to the GC Announced in a speech by UN Secretary General Kofi Annan at the World Economic Forum in Davos, Switzerland, in 1999 “I propose that you, the business leaders, and we, the United Nations, initiate a global compact of shared values and principles, which will give a human face to the global market.”

6 UNGC Module 1 – Intro The Global Compact Understanding the UN Global Compact –An international initiative designed to bring companies together with UN agencies, labour, NGOs, and other civil society actors with the aim of fostering action and partnerships for a more sustainable and inclusive global economy –Relies on the enlightened self-interest of companies, labour organisations and civil society bodies to initiate and share substantive action in pursuing the principles –Seeks to provide a contextual framework to encourage innovation, creative solutions, and good practices among participants

7 UNGC Module 1 – Intro The Global Compact Benefits of participating in the Global Compact –Provides access to practical solutions to globalisation, sustainable development and CSR problems –By engaging, business leaders demonstrate leadership with regards to responsible corporate citizenship –Provides companies with access to UN expertise –Offers simple framework for engagement without expensive certification and intrusive monitoring

8 UNGC Module 1 – Intro The Global Compact Ten principles – based on inter-governmental agreements –Human Rights Universal Declaration of Human Rights –Labour ILO Declaration of Fundamental Principles & Rights at Work –Environment Rio Declaration on the Environment –Anti-corruption UN Convention Against Corruption

9 UNGC Module 1 – Intro The Global Compact The Environmental Principles Business should: 7.Support a precautionary approach to environmental challenges 8.Undertake initiatives to promote greater environmental responsibility 9.Encourage the development and diffusion of environmentally friendly technologies

10 UNGC Module 1 – Intro The Global Compact Key characteristics of the Global Compact –A learning approach –A diversity of actors and approaches –A decentralised network

11 UNGC Module 1 – Intro The Global Compact: Key Characteristics A Learning Approach –Learning focus on how business can respect universal values –Many ways to achieve goals –Underlying objective of encouraging innovation and creative solutions

12 UNGC Module 1 – Intro The Global Compact: Key Characteristics Diversity of Actors and Approaches –Companies –Business organisations –Workers’ organisations –NGOs (Human Rights, Environment, Development) –Academic Institutions –United Nations and the ILO

13 UNGC Module 1 – Intro The Global Compact: Key Characteristics A Decentralised Network –The UN Global Compact Office (in New York) and various agency focal points –Not a large bureaucracy –The Global Compact relies on the actions of those involved

14 UNGC Module 1 – Intro The Global Compact The UNEP Division of Technology, Industry and Economics Key activity areas of the UNEP DTIE: Chemicals management / Ozone management / / Energy and transport Environmentally sound technologies / / Economics, finance and trade Sustainable production & consumption Industry outreach partnerships

15 UNGC Module 1 – Intro The Global Compact: Key Characteristics The Global Compact is not: –A code of conduct –A mechanism to check compliance –A mandatory set of guidelines –A regulatory system –An attempt to shift governmental responsibilities to business

16 UNGC Module 1 – Intro The Global Compact Useful Additional References: –UN Global Compact Resource Package –Raising the Bar (edited by Fussler, C; 2004) –Employer’s Guide to the Global Compact Developed by International Organisation of Employers (2001) –Global Compact Self-assessment Tool Developed by Business for Social Responsibility (2004)