The trillion dollar shift achieving the sustainable development goals ; business for good is good business

432 Pages·2018·65.68 MB·English

by  Hoek

The Trillion Dollar Shift
Achieving the Sustainable Development Goals;
Business for Good is Good Business
MARGA HOEK
Colophon
First published 2018
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
Routledge is the world’s leading academic publisher in the Humanities and Social Sciences and has
partnered with many of the most influential societies and academic bodies to publish their journals and
book series. Routledge is proud to publish across all areas of sustainability and the environment bringing
the latest research on climate change, natural resources, sustainable energy, business and development to
a global audience of researchers, students, sustainable practitioners and anyone interested in creating a
sustainable future for all.
© 2018 Marga Hoek
Chief Editor: Amie de Jeu
Business analyst & researcher: Theresa McCarty
Printer: EcoMedia
Design and lettering: I am Creative - EcoMedia
This book is printed on Agriwaste from PaperWise, highly qualified paper made from agricultural waste.
The production of this book is based on a 100% IPA (solvent) free print process with cradle-to-cradle
(gold standard) biodegradable, toxin free bio-inks (green4print.nl) and sustainable plates that eliminate
chemistry, gum and water used in the conventional plate production process. Based on a certified climate
calculation this book is 100% carbon free (production, materials, distribution). The eco-laminate used for
the cover is made from wood waste and is biodegradable.

The right of Marga Hoek to be identified as author of this work has been asserted her in
accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988.

The Open Access version of this book, available at www.taylorfrancis.com, has been made available
under a Creative Commons Attribution-Non Commercial-No Derivatives 4.0 license.

Trademark notice: Product or corporate names may be trademarks or registered trademarks,
and are used only for identification and explanation without intent to infringe.

British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library

Library of Congress Cataloguing-in-Publication Data
A catalogue record has been requested for this book
ISBN: 978-0-8153-6431-3 (hardback)
ISBN: 978-1-351-10729-7 (e-book)
Publisher’s Note
This book has been prepared from camera-ready copy provided by the author.
Acknowledgements
I dedicate this book to my three beautiful children Faye, Boyd and Gray. They endured my mission to write this
book throughout the last two years and especially the last months. My mission in that sense was theirs. And
it will be, since it is actually their future and the future of their children to be, that is at stake. I sincerely hope
that this book will inspire many parents around the world to ensure children have a safe and hopeful future
in a world that is theirs to sustain.
I can only be incredibly thankful for the on- leaders wrote a beautiful foreword for this book,
going support, inspiration, humor, incredible pro- for which I am grateful. Last but certainly not least,
fessionality and perseverance of my chief editor the team of EcoMedia who helped me to make
Amie de Jeu. This book would not have seen the this book a showcase for sustainability with paper
light of day without her. My mission was definitely made of agricultural waste and endured ongoing
hers and she has supported my voice giving life to drive to improve, redo and improve. I thank my
that, every step of the way. I also thank Theresa publisher Rebecca Marsh at Routledge for believ-
McCarty, business analyst & researcher enormously ing and trusting in me, especially to publish the
for her dedication to this project and making sure book in an open access, free online version since
all research was done with perfectionism on accu- I do not want to put a price on access to knowl-
racy, facts and the right numbers and references. edge that is crucial for the world we all want.
I also thank all the companies profiled in this book
for their inspirational work in creating sustainable This book is a book of many, and any recognition
business cases. of this book should go to all. But most importantly,
it is a book with a mission. To inspire people to
I am thankful to Paul Polman, in collaboration with lead the way to find, create and scale up solutions
whom the inspiration rose and the enthusiasm for our Global Goals, and achieve the world we all
grew for this book and who supported me all want. With business that is a power for good. For a
the way. I thank Feike Sijbesma for his inspiration world that is fair to all and that can and will sustain.
and support and Gérard Mestrallet for his inspir-
ing vision leadership he shared with me. All three Marga Hoek
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Contents

Preface
Forewords
UN Global Compact Overview of the crucial work of Global Compact
1 2
BUSINESS’S
CONTRIBUTION TO THE THE TRILLION DOLLAR
TRILLION DOLLAR SHIFT SHIFT ACCELERATED
P. 18 CHAPTER 1 P. 98 CHAPTER 3
Achieving the Sustainable Development ICT and Technology
Goals: The greatest challenge and biggest 3.1 I CT, Technology and SDGs
opportunity 3.2 Responsibility for Tomorrow’s world
1.1 The new meaning of Business in society 3.3 Setting the course comes with a tremendous prize
1.2 The SDGs: the world’s Goals for 2030 3.4 The digital divide
1.3 The SDGs: first years of unfolding 3.5 The fourth industrial revolution
& ten breakthrough opportunities
P. 46 CHAPTER 2
Business for good: a trillion dollar P. 158 CHAPTER 4
business case Capital
2.1 The call to business and capital 4.1 T he capital call: the Goals need capital as much as
2.2 The new meaning of growth capital needs the Goals
2.3 The shared value model 4.2 How private capital can fill the SDG funding gap
2.4 Unlocking SDG markets and their potential 4.3 Capital impact on all SDGs
2.5 A call to all businesses (large, SMEs, 4.4 Shared value opportunities
Start-ups and scale-ups) 4.5 We need all finance
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3 4
TRILLION DOLLAR SCALING UP FOR A
SHIFT IN SECTORS TRILLION DOLLAR SHIFT

P. 222 CHAPTER 5 P. 400 CHAPTER 10
Cities and Transportation Scaling up: Global Goals; Global Scale;
5.1 S DG 11: Sustainable cities and communities Global Good
5.2 Solving the challenges: Cities as catalysts for linking 10.1 Scaling up business for good
all the goals 10.2 Leadership for the Goals
5.3 Impact of cities on all SDGs
5.4 Shared value opportunities
5.5 Capital connections and opportunities
5.6 Domains of impact
Sources
P. 262 CHAPTER 6
Food and Agriculture
6.1 SDG 2: Zero hunger
6.2 Solving the Challenges: Food and
agriculture as the common thread
through the Goals
6.3 Impact of food and agriculture on all SDGs
6.4 Shared value opportunities
6.5 Capital investment reaps more than it sows
6.6 Domains of impact
P. 300 CHAPTER 7
Education and Learning
7.1 SDG 4: Quality education
7.2 Solving the Challenges: Education as a
fundamental building block for the Goals
7.3 Impact of education and learning on all SDGs
7.4 Shared value opportunities
7.5 Capital and the skills gap
7.6 Domains of impact

P. 334 CHAPTER 8
Health and well-being
8.1 SDG 3: Good health and well-being
8.2 Solving the Challenges: Health and wellbeing
as the prerequisite for achieving the Goals
8.3 Impact of health and well-being on all SDGs
8.4 Shared value opportunities
8.5 Capital supports improved health and well-being
8.6 Domains of impact
P. 364 CHAPTER 9
Energy & resources
9.1 SDG 13: Climate action
9.2 Solving the Challenges: Energy and resources as the
fuel for Climate action
9.3 Impact of energy and resources on all SDGs
9.4 Shared value opportunities
9.5 Capital investments as a source of power
9.6 Domains of impact
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THE TRILLION DOLLAR SHIFT MARGA HOEK
Preface
MARGA It’s been over two years since the course was set than US $2 a day and nearly 800 million people
to a better world via the Paris Agreement, the still go to bed hungry every day. Thirty percent of
HOEK
establishment of the Sustainable Development the world’s 1.8 billion young people are neither
Goals (SDGs) and the Financing for Development employed nor in school or training programs; and
conference in Addis Ababa. Taken together, these over 61 million children of primary school age are
three conferences and agreements represent a not in school. Progress on gender equality also still
much-needed holistic paradigm shift, and a funda- lags far behind, and women continue to face sig-
mental change in the way we approach the task nificant economic, social, and even legal barriers
of creating a better world. The global movement to equality.
started a journey, or better said a next journey,
since that actually already started with the Millen- It is increasingly clear that the way forward on our
nium Goals. Now, the SDGs are a global compass journey towards 2030 needs to use the power
guiding us all, in a language we all understand and of business as leverage to grow a stable, sustain-
interpret the same way. able global economy and society. Consider that
business corporations account for many of the
While we are in the first phase of this journey, largest economies operating around the world.
we must be very aware that this journey is more Many corporations have a balance sheet outrank-
crucial and more difficult than we could have ing countries’ GDPs. And consider the investment
imagined. The world is experiencing hurricanes, potential of private capital which is a much larger
floods, droughts, and storms like we have never percentage than public investment potential by
seen before, with enormous consequences for now, as the percentage of total capital flows of
people, planet and economy. In the previous dec- donor countries’ ODAs into emerging markets
ade, the world’s economy suffered an estimated has decreased, while private capital flows have in-
loss of US $2.7 trillion because of natural disasters. creased and grown. Last but not least, consider
This decade will no doubt show an exponential in- the power of business needed to safeguard con-
crease, and inaction on climate change comes with sistency in policy, as business was crucial to cre-
the huge comprehensive cost estimated at US ating the Climate Agreement and the Sustainable
$24 trillion. At the same time, inequalities among Development Goals, and is equally important to
people across the world are growing instead of di- maintaining them.
minishing, resulting in dangerous divides, conflicts,
and social unrest. Despite the fact that we have Let’s engage business in a new purpose. Business
been able to lift millions of people out of poverty, that embeds the goals into the heart of compa-
half of the world’s population is still living on less nies, strive to not only serve their own goals, but
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THE TRILLION DOLLAR SHIFT MARGA HOEK

the Global Goals at the same time. Since there is radically, and products and services that do not
no business if there is no planet, there are also no create real value will soon be phased out.
business opportunities in a world of exponentially
growing risks, increasing poverty, climate change, Since the scale of our collective solutions must
and resource scarcity. Wise leaders understand meet the scale of our Goals, let this book be an
this and know that navigating towards the Goals inspiration to all businesses to venture beyond
means safeguarding the planet and its inhabitants, the comfort zone, and explore new ways to
and securing a sustainable business and economic create profitable business cases while also safe-
future. The growth of business for good incorpo- guarding and positively impacting people and the
rates a new meaning of growth which we must environment. For that reason, I have endeavored
embrace, disconnecting negative impact from to create a comprehensive, yet inspirational book
growth, and connecting growth with positive im- that provides an overview of the SDGs, what they
pact on the world. mean to business and capital, and how to engage.
You will read what shared value is, and how to
At a business level, there is every reason to en- use it as a leading business principle. You will gain
gage with the SDGs. This book demonstrates that insights into industry sectors and read business
business for good is good business, and aims to cases of companies all over the world. And you
show how business and capital can have a pos- will get an overview of research and collabora-
itive impact on the SDGs, while improving their tions exploring sustainability.
competitiveness. You will read how new markets,
worth up to US $12 trillion, can be unlocked by This book is an extension of my personal mission
2030. Returns on sustainable business cases are to contribute to the repurposing of business and
getting better by the year or even the month, with capital. Repurposing to do good for the world
businesses working against climate change per- must become a primary mission for all. It can be
forming almost 20% better than their peers. In this done, and must be done. Our future depends on
context, not engaging with the SDGs becomes the it. To spread this message, I have made all content
risk, especially since customers and employees will digitally available with an open access model. So,
demand that companies be part of the solutions, spread the word and spread the mission, because
rather than the problem. Markets are changing together we can achieve our Goals.
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THE TRILLION DOLLAR SHIFT MARGA HOEK 1 PARAGRAPH
Forewo rds
TThe Sustainable Development Goals (SDG’s), adopted in September 2015 in New York by 193 coun-
PAUL
tries are a true beacon of hope, and have rightly sparked great interest from business and investors ever
POLMAN since their adoption in 2015. Its goal is simply to leave no-one behind. To irreversibly eradicate poverty
and do so in a more sustainable and equitable way. The world needs it now more than ever, if we want
CEO UNILEVER
it to function for everyone, including for those yet to come.
The role business can, and must play in achieving the Goals cannot be overestimated, as governments
will not be able to change the world for the better merely by themselves.
The reality is that the Goals need business, and at the same time business also needs the Goals, because
the SDGs provide the potential to unlock new markets and bring about a business opportunity of
staggering magnitude.
The latter is estimated at no less than US $12 trillion by 2030 with 380 million new jobs created. Indeed,
implementing the SDG’s is one of the biggest business opportunities of our time.
So, for business, the question is not ‘why’, but ‘how’ to develop solutions which are both good for busi-
ness and which create positive SDG impact.
This requires transformational change throughout sectors.
We need to quickly learn, both individually and collectively, how to undertake this crucial journey. It
starts with awareness of the SDG’s, and how each business can positively contribute. Businesses that
understand this and put themselves to the service of society, will have a long and prosperous future.
Businesses that don’t, will be voted out, and this is happening with increased frequency.
The good news is that we can adapt: we are an intelligent species, and the challenge ahead will be finding
a way to put our resources to good use.
A combination of human will power and knowledge of the subject matter can make it happen.
This new publication by Marga Hoek goes a long way in providing us with such required knowledge.
The Trillion Dollar Shift provides a comprehensive overview of SDG opportunities across sectors, and
shows the reader how to engage and create economic and social impact on each of the 17 SDGs.
Throughout the book, you will find useful examples of companies that have already embarked on this
journey.
In order to maximize accessibility, the author has decided to make The Trillion Dollar Shift a digital open
access publication, available free of charge, and I would like to thank Marga for that.
We can therefore be sure this inspiring book will reach interested readers across the globe, and rightly
so, as its important message can help bring us one step closer to the better world we all aspire to by
2030.
It hopefully will unlock the purposeful leader inside of you, and make you part of a growing movement
to ensure we leave no one behind.

Paul Polman
CEO Unilever
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THE TRILLION DOLLAR SHIFT MARGA HOEK 1 PARAGRAPH

“ WE CANNOT CLOSE OUR EYES
TO THE CHALLENGES THE
WORLD FACES. BUSINESS
MUST MAKE AN EXPLICIT
POSITIVE CONTRIBUTION TO
ADDRESSING THEM.”
PAUL POLMAN, CEO UNILEVER
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