A Different Lens on ESGs: Value of Synergies with the SDGs

 Article first appear in allafrica.com: Environment, Social & Governance (ESG) Business Pillars - Synergies with the UN SDGs - By Dr. Robin Renee Sanders, CEO-FEEEDS

Over the last two decades, the framework known as Environment, Social and Governance (ESGs) has gained prominence as a basis for measuring a company’s efforts toward sustainability, socially responsibility (values), and acceptability as a set of metrics to gauge operations, investment, shareholder decisions, and inclusion in capital market listings. ESG pillars first began to take shape in 2004-2005, stemming from thought-provoking reports like the “Who Cares Wins,” by  Ivo Knoepfel, connecting financial markets to a changing world, and advocacy by the late UN Secretary General Kofi Annan encouraging CEOs of financial institutions to view ESGs as having a positive impact on capital markets. These efforts led to such  important related programs as the New York Stock Exchange’s 2006 Principles for Responsible Investment (PRI), and the Sustainable Stock Exchange Initiative (SSEI).

Credit: Michelle Patrick Photography,LLC 

Fast forward to today. The recognition, and visibility of ESGs, as well as the importance of the sustainability elements therein, have been expounded on extensively in a variety of documents from the UN Global Compact, business advisory reports (e.g. PWC, Deloitte), articles (Forbes), fora such as  World Economic Forum ESG meetings, and the World Bank, including its new ESG portal.

The ESGs have grown to be more or less reflective of certain actions under each of the E, S & G Pillars, which FEEEDS sees as being synergistically connected to the UN SDGs. This connecting allows for the E, S & G Pillars to be both measurable, and also thematic related to the SDGs:

Environment: For FEEEDS, this is the Climate Change Thematic Pillar, as it incorporates many of the key climate change sub issues such as waste management, reduction in pollution and carbon emissions, incorporating renewables, and natural resource protection that companies are addressing.

Social: We view as the Humankind or Human Protection Thematic Pillar, given this is where the treatment of personnel, relationships with outside stakeholders, communities, and consumers come in, including issues of human capital, good labor practices, and product liability.

Governance: Is the Inward-Looking Thematic Pillar, meaning how well a company is managing itself from its governing board (including board diversity), to transparency on financials, taxes, investments, risks and ethics.

Given the importance of the ESG Pillars to businesses and organizations today, adding a thematic lens to the measurable metrics can be useful. Moreover, it helps connect ESGs synergistically with the globally-agreed upon UN Sustainable Development Goals (UN SDGs), running from 2015-2030, which seeks to improve the overall well-being of mankind. Historically, this ESG-SDG discussion makes even more sense if one thinks back to the early 2000s when the ESGs were being bandied about. This was just after the creation of the 2000-2015 UN Millennium Development Goals, the first global iteration of measuring mankind’s well-being -- a precursor to the current SDGs.

Credit: Елена Верхотурова 

The SDGs, with its 17 goals (and 169 subsections) encourages and measures a country’s (and by extension the world’s) concerted efforts to improving mankind’s well-being by addressing extreme poverty, development shortcomings in education, food security, health and joblessness, particularly for women and children. The SDGs and their progress are analyzed by a wide variety of organizations. This includes the UN SDG 2020 Report & Progress Tracker, the latter highlighting COVID’s role in unfortunately pushing 71 million people back into poverty, the largest poverty rise since 1998; Gallup World Poll, tracking SDG progress on food insecurity (790 million people facing hunger), labor & safety practices, financial inclusion; the World Health Organization, monitoring progress on both core and attendant health-related SDGs; the World Bank’s SDG Atlas Tracker, on energy and hunger; and the Sustainable Development Solutions Network’s SDG Index. 

So, what is the argument on linking ESGs synergistically with relevant thematic SDGs? And, would that be for all 17 goals? The answer is no.  But consideration should be made toward those SDGs that are complementary to a business and its sector(s). Where a company can thematically link (directly or indirectly), it should. By doing so, the SDGs provide a way forward for a company to plug into the “greater good” themes agreed upon by 193 countries, contributing to improved optics, perceptions and by extension, positive metrics and visibility on its ESG framework.  

Linking up ESGs to appropriate SDGs shouldn’t be that hard to do. The bigger value-addition is, by doing so, we all speak with one “improving humanity voice” as we work across business and development sectors (as opposed to stove piped). Moreover, the SDG link can provide the twofold benefit to companies of:

·        shining an international (or country-level) light on a business’ positive actions; and,

·        serving as touchstones to (directly or indirectly) aid or assist boards and investors evaluate or further appreciate the outcomes of their ESG efforts.

In analyzing the 17 SDG goals, there are 10, of the 17, which FEEEDS views with direct thematic synergy to the ESGs, and seven, which could be viewed as indirect. The blend, in the end, is up to companies.

The 10 SDGs with Direct ESG Synergies:     

The 10 SDG goals, we see with direct thematic connections to the ESGs fall mostly under Environment and Social. They include, SDGs 5-9, 12-15, and 17. Granted, many businesses are focused already on these in internal operations, therefore linkages should be easy. Below highlights which SDG goal make sense under the ESG Pillars:

Under the Environment (or Climate Change) Pillar, SDGs 6-7, 9, and 12-15 since these SDGs primarily focus on climate change issues of water, waste management and sustainable energy; to climate smart manufacturing, industrialization, production patterns and agricultural practices; to protecting land and ocean biodiversity systems.

Credit: Dr. Robin Sanders/CEO-FEEEDS 

Under the Social (or the Humankind) Pillar, SDG 5, 8, and 17 since these SDGs focus on key elements of equality, empowerment, productive employment and partnerships. But can also apply to a company’s internal operations such as human capital and ensuring living wages; to productive, descent work and healthcare for employees; to safe and humane working conditions.

SDG 17, on strengthening Global Partnerships for Sustainable Development, further underscores FEEEDS’ core argument for the ESG-SDG synergy discussion. Businesses which see this interconnectedness will likely benefit with quality relationships with outside stakeholders, contribute differently to communities where they operate, and improve partnerships or corporate social responsibility projects. These changes can help reduce risks factors to bottom lines, which recent and historic events continually show can lead to financial loss and instability costing billions.

Under the Governance (or Inward-Looking) Pillar SDGs 5 and 8 are also applicable. Although this pillar tends to be focused on a company’s internal governance, regulations and transparency, there is still synergy with these SDGs. The connections are on diversity and equality -- not only in the board room, but also with executive pay, investment dollars in minority and small businesses, and shares in ownership. Studies show less reluctance today accepting female managers than five years ago, in places like Canada (Randstad), and as shown in Gallup’s recent polling in Latin America, Eastern Europe, and the U.S. Whereas, in the 21 African countries polled, the region’s reluctance level toward women managers is still high (a median of 47% of the population prefer men, while a median of 34% said they prefer woman). Companies which systematically address this data point in their governance pillar – increasing the number of female managers – would go a long way in synergistically advancing SDG goal 5, while providing productive and descent work helps goal 8.

The Seven SDGs with Indirect ESG Synergies:

The seven SDGs where a company’s good ESG report card can be helped indirectly, include SDG goals 1-4, 10-11, and 16 given these are the larger greater good SDGs (ending all poverty, hunger, and overall improving the human condition). Certainly, good ESG stewardship will have an attendant contribution to these global SDGs as companies uplift the lives of their employees with good practices. All of which can be achieved through climate-smart behavior, providing good healthcare and life long learning opportunities, and ensuring equitable pay, diversity and gender equality from the board room through to the assembly line and agricultural fields -- all very synergistic to these seven SDGs.

 Article was also posted on Council of Foreign Relations blog site at: Environment, Social & Governance (ESG) Business Pillars - Synergies with the UN SDGs | Council on Foreign Relations (cfr.org)

 A FEEEDS Series Blogspot

Nomination of Ambassador Linda Thomas-Greenfield - What it Means for US Global Engagement & U.S.-Africa Partnership

Article below "What the Nomination of Ambassador Linda Thomas-Greenfield Means for U.S. Global Engagement & the U.S. Partnership with Africa," by Dr. Robin R. Sanders first appeared Dec 5, 2020 in 

https://allafrica.com/stories/202012050337.html?aa_source=nwsltr-latest-en *  

Photo by Robin R. Sanders

 President-elect Biden’s nomination of Ambassador Linda Thomas-Greenfield sends a strong message that the incoming administration is serious about re-engaging the world not only with strong policy leadership and national security skills, but also ensuring that America acts in line with its core values when working with our partners. Ambassador Thomas-Greenfield is the embodiment of the values that Americans hold dear, anchored in our Constitution, which calls upon us to return to robust world leadership; hold fast to our commitment to our allies; speak with one voice globally on behalf of the American people; and, equally as important -- do all of these things while remaining civil (even if we disagree with our friends). 

Our bottom line as a modern nation has historically been to seek ways to make the world a better place by supporting democratic processes and principles. Thomas-Greenfield will be our champion in working with every country in fairness and transparency all while ensuring that America’s interest, and its national security always comes first. These are the skills she will bring to the position of U.S. Representative to the United Nations, if so, confirmed by the Senate. 

The Ambassador is not only one of the best foreign service career diplomats, evident by her long stellar career at the Department of State, but she will also herald in as the first African American female career foreign service officer to be nominated for a U.S. cabinet-level post. At the State Department she held such key critical positions ranging from Director General of the Foreign and Civil Service – the number one personnel position with policy oversight of the 13,000-member Foreign Service, 11,000-member Civil Service, and the 45,000 local employees at our Embassies overseas, to Assistant Secretary of State for African Affairs -- on top of a lot of policy-tough and multilateral work in between from Pakistan to Geneva. 

                                                                                        

For many Thomas-Greenfield is seen as the best America has to offer to fill this august UN position as our next Global Ambassador. It is her latter position as Assistant Secretary of State for African Affairs that should demonstrate to the continent that a return to global partnership and dialogue with the region is on its way back. There is not an African leader, or senior African diplomat be they in Washington, D.C., New York or in the region that has not worked with her, or know of her to be fair and inclusive – even when being tough. But more importantly, it is the mutual respect that she will bring to the table that will be the most compelling to her African counterparts and the African people. Make no mistake that the top Africa-focused diplomatic job as Assistant Secretary of State has become a national security issue position as well given the number of challenges and conflicts in the region over the last decade.

Thus, Thomas-Greenfield is ground-tested on these; knows the political and economic issues; has traveled extensively on the Continent, most notably to many of its towns and villages; and, is committed to addressing sustainable development issues from education to migration to food security. Hence, knowing the region on the macro and micro levels. During her time as U.S. Ambassador to Liberia, Linda could be found often helping on these sustainable development issues and working with local leaders. Her strength as a diplomat during the tragic 1994 Rwandan genocide is a well-documented story reflective of a mixture of resolve, heroism, composure, courage, strength, toughness, negotiating skills and knowing how to manage a crisis – even when held at gunpoint. 

The American people should expect this same mixture of unique skills from its top diplomat at the UN and we will get them with Thomas-Greenfield at the helm. For Africa though, her presence at the UN world body represents an opportunity for the U.S.- Africa relationship to be both rebuilt and flourish, becoming a true deliberative process with the Continent on a global stage. Linda is often quoted, in part, as saying “I’m not trying to change the world . . .,” but her time at the UN, if Senate confirmed, will be just that -- an opportunity to change the world, and particularly the direction of the U.S. engagement with Africa. This includes, however, being tough on non-democratic governments and their leaders. 

The IMF notes that Africa is on course over the next decades to host the world’s largest working age population, on top of having the youngest population. It is the Continent of the future, despite the serious conflicts (e.g. Ethiopia), and myriad of political, social, and economic challenges it faces today (and there are many), on top of COVID-19. That being said, it is a region that the U.S. needs to view and engage with differently (not only through the China geo-political lens), especially given how interconnected the world is and the impact Africa will play politically and economically in the future. 

Indeed, her nomination with all its uniqueness, represents an opportunity for the U.S. to build on the solid and goodwill relationship Linda already has in the region – with its democratic leaders and its people. The Continent and the U.S. should look forward to it. 

*Article also appeared later in the prestigious Council of Foreign Relations and the American Academy of Diplomacy

A FEEEDS Blogspot