Private sector gears up for Rio+20

In a 2010 study by Accenture and the UN Global Compact, 93% of the 766 CEOs surveyed believed that sustainability will be “important” or “very important” to the future success of their company. Image credit: UN Global Compact
Samuel DiPiazza, Jr., Board Vice Chairman at Citigroup, called the 1992 Rio Summit the “tipping point” for businesses in beginning to embrace sustainability as a strategic issue, and not merely a public relations ploy.
“It is an issue about price, resources, supply chains, it’s an issue about people,” DiPiazza said today at the Foundation for the Global Compact, during a briefing on the role of the private sector at the Rio+20 Summit next month.
DiPiazza’s conversation with Georg Kell, Executive Director of the UN Global Compact, focused on how public-private partnerships can address the myriad issues emerging in pre-Rio+20 negotiations.
Over 1000 business people from 130 countries, up to 300 business school deans, and numerous investors are expected to attend the Global Compact’s conference in Rio. The initiative stems from the UN Global Compact’s commitment to helping businesses align their operations and strategies with ten universally accepted principles in the areas of human rights, labor, environment, and anti-corruption.
Kell emphasized the need for incentive structures that encourage sustainability initiatives. “If we are willing to invest in incentives geared to value creation and performance, every single country can successfully and sustainably develop,” he insisted.
Challenges persist, however. North-South differences over how to approach economic growth and development will likely rear their heads at Rio+20. Although these tensions are longstanding, the global financial crises, sovereign debt issues, and the ensuing political instability have exacerbated them.
Taking an optimistic note, DiPiazza perceived an unprecedented opportunity for businesses to help bridge the divide. “Businesses make profit, sometimes a lot of profit, and they can do that responsibly in growing markets,” he said. Where growth potential exists, market incentives will lead businesses to pursue sustainable patterns. In agreement, Kell added, “All Chinese companies want to be the next Siemens and the beauty of competition is that this desire will force them to race to the top.”
Asked what concrete outcomes to expect from Rio+20, DiPiazza related the business community’s desire to see progress in targeting benchmarks in poverty reduction, access to water, and climate change. According to DiPiazza, “Businesses are not going to wait around for governments to act, because they realize the world will change dramatically over the next 20 years and they need to adapt accordingly.”
DiPiazza pointed to many American companies, for example, that have implemented high sustainability standards despite weak carbon emissions regulation. In particular, businesses in consumer products, retail, energy, and cement are collaborating to achieve sustainable consumption and preserve precious resources such as water.
By recognizing that markets will collapse if resources are depleted, these companies view sustainable growth as a strategic issue. This awareness exemplifies the potential for business leaders to spur the momentum of recommendations in the run-up to Rio+20, to yield optimal outcomes for private and public interests alike.









