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9th Transatlantic Conference Environmental, Social And Governance (ESG) Requirements in Pension Funds’ Investment Decisions 2017 Businesses and compagnies as an environmental, social and governance responsibilities What are those 'Environmental, Social And Governance (ESG) Criteria‘ Environmental, social and governance (ESG) refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company or business. The Environmental, Social And Governance (ESG) Criteria is a set of standards for a company’s operations that socially conscious investors use to screen investments. Environmental criteria looks at how a company performs as a steward of the natural environment. Social criteria examines how a company manages relationships with its employees, suppliers, customers and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits and internal controls, and shareholder rights.
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9th Transatlantic Conference – 2017
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE “IN A TIME OF RESOURCE SCARCITIES AND RISING SOCIAL PRESSURES, BUSINESSES FACE A GROWING NEED FOR A STRONGER APPROACH TO ENVIRONMENTAL, SOCIAL, AND GOVERNANCE ISSUES.” Those ESG Criteria are part of most world institutions’ investments policies. For instance, the International Finance Corporation, the largest global development institution member of the World Bank Group, designed a Sustainability Framework to fulfill strategic commitment to environmental and social sustainability while contributing to private sector growth and job creation This Sustainability Framework promotes sound environmental and social practices, encourages transparency and accountability, and contributes to positive development impacts. Through those ESG criteria, IFC helps their clients in improving their business performance, enhancing transparency, engaging with the people affected by their investments, protecting the environment, and achieving greater development impact. 9th Transatlantic Conference – 2017
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9th Transatlantic Conference – 2017
The ESG requirements are also fully part of the UN Development Program Policy through the Sustainable Development Goals WHAT ARE THE SUSTAINABLE DEVELOPMENT GOALS? The Sustainable Development Goals (SDGs), otherwise known as the Global Goals, are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. These 17 Goals build on the successes of the Millennium Development Goals, while including new areas such as climate change, economic inequality, innovation, sustainable consumption, peace and justice, among other priorities. The goals are interconnected – often the key to success on one will involve tackling issues more commonly associated with another. The SDGs provide clear guidelines and targets for all countries to adopt in accordance with their own priorities and the environmental challenges of the world at large. The SDGs are an inclusive agenda. They tackle the root causes of poverty and unite us together to make a positive change for both people and planet. The 2030 Agenda and the SDGs provide a common plan and agenda to tackle some of the pressing challenges facing our world such as poverty, climate change and conflict. 9th Transatlantic Conference – 2017
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9th Transatlantic Conference – 2017
CPME-NC : The SMEs CONFEDERATION OF NEW-CALEDONIA A Private sector Representation involved in the Pacific The CPME-NC, the SMEs Confederation of New Caledonia of which I am President, is an organisation representing the Caledonian private sector with more than a thousand members, le CPME of New Caledonia. Together with the SMEs Confederation of French Polynsie and Wallis and Futuna, we created the Représentation Patronale du Pacifique Sud (RPPS), the South Pacific Employers Representation, which aim to represent the Private sector of the French Territories in the Pacific. In a regional integration perspective, the RPPS join PIPSO, the Pacific Islands Private Sector Organization, that brings together private sector representations from every Pacific Islands Countries (PNG, Fidji, Vanuatu, Australia, NZ, etc.). This organization is supported by the Pacific Islands Forum. The CPME-NC is fully integrated in its region and forged strong relations with its neighbour’s private sector toward an regional economic develpment. The CPME-NC aims to strengthen New Caledonia regional integration and cooperation with its partners, working together with regional representation such as PIPSO and the Pacific Island Forum in order to support economic development in the Pacific. 9th Transatlantic Conference – 2017
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ESG CRITERIA : PARTICULAR RELEVANCE IN THE PACIFIC
The Pacific Region is a area in development with a huge economic growth potential. This region also has an environment of exceptional but fragile biodiversity, with human communities with strong cultural ties to nature. The Pacific is also the first region affected by environmental upheavals and global warming, which lead to rising water levels and devastating cyclonic phenomena. In the Pacific region, these ESG criteria therefore have all their importance in business models and practices. 9th Transatlantic Conference – 2017
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9th Transatlantic Conference – 2017
CPME-NC A Private sector Representation dedicated to Business Models based on ESG criteria Therefore, in its regional integration process, the CPME is committed to supporting a sustainable economic development in the region, in agreement with ESG criteria and United Nations SDG. In this objectives, the CPME-NC organized in New Caledonia the first Pacific Business Forum in 2016, bringing together companies from all the Pacific in order to facilitate business exchanges and meetings, as well as to discuss sustainable ways for economic development in the region. During the Forum, we invite to a videoconference M. Jeremy Rifkin, a world-class economic who wrote about the impact of scientific and technological changes on the economy, the workforce, society, and the environment. He is the principal architect of the Third Industrial Revolution long-term economic sustainability plan to address the triple challenge of the global economic crisis, energy security, and climate change. In his main book, The Third Industrial Revolution; How Lateral Power is Transforming Energy, the Economy, and the World, Jeremy Rifkin argue that an economic change can occur to a sustainable model with the convergence of new communication technologies and new energy regimes, mainly, renewable electricity. Jeremy RIFKIN 9th Transatlantic Conference – 2017
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9th Transatlantic Conference – 2017
CPME-NC A Private sector Representation dedicated to Business Models based on ESG criteria In august 2017, CPME-NC will organize a new Pacific Business Forum, focused on New Economics models, especially Knowledge economy, Blue economy, innovation economy. To discuss these new economic models, CPME-NC will host M. Idriss ABERKANE, specialized in biomimicry and blue economy Idriss ABERKANE 9th Transatlantic Conference – 2017
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9th Transatlantic Conference – 2017
CPME-NC A Private sector Representation dedicated to Business Models based on ESG criteria ESG requirements in investments and businesses help the development of new sustainable economic models that have environmental and social positive consequences. Because of ESG criteria in their investments, hedge funds can support business projects with long-term viability that will fix population to their territories. 9th Transatlantic Conference – 2017
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