2030 AGENDA FOR SUSTAINABLE DEVELOPMENT

Scaling Up Business Impact
on the SDGs
Izumi Ohno (JICA Research Institute)
Kenichi Konya (National Graduate Institute for Policy
Studies (GRIPS))
Hiroaki Shiga (JICA Research Institute)Franklin Murillo (Social Progress Imperative)
Estefania Charvet (Southern Voice)
Submitted on March 15, 2019
Revised on March 31, 2019
Abstract
Achieving the Sustainable Development Goals (SDGs) requires redefining the
purpose of business and scaling up their impact. However, there are challenges suchas the gap between good intentions and real actions; conflict between the current
economic system and SDG thinking; limited understanding of how business isembedded in society; and capacity constraints in developing countries to take fulladvantage of emerging business opportunities. We propose that the leaders of theG20 take necessary action in four areas: a) encourage corporates to embed SDGs into
their core business strategies and operations; b) reshape the economic system
around the common good; c) create a “sustainable ecosystem” for shaping abeneficial environment for all stakeholders; and d) upgrade the enterprises andpolicy/regulatory capabilities of developing countries to maximize the potential
benefits of their participation in Global Value Chains.

2030 Agenda for
Sustainable Development
Challenge
Three years have passed since the adoption of the Sustainable Development
Goals (SDGs) by all 193 United Nations (UN) member states in September 2015.
However, according to the latest SDG Index research, not a single country is on
track to achieve all SDGs by 2030. 1 We must renew our commitment andreinvigorate efforts to implement effective and feasible measures to accelerate
progress on the SDGs.
The SDGs mark a departure from the Millennium Development Goals (MDGs)
in two important ways. First, the SDGs are universal and applicable to bothdeveloped and developing countries. Second, business is increasingly regarded
as a key player in driving sustainable inclusive development for several
reasons. First, business contributes financially to SDG achievement (by fillingthe annual investment gap estimated at USD 2.5 trillion (UNCTAD 2014)).
Second, business is good at applying innovations to societal needs and diffusing
them and thus contributes to improving our quality of life in novel ways. Third,
business activities can have significant impacts on society and the environment,
for better or worse. Lastly, the SDGs provide a big opportunity for business. It
is estimated that fully embracing the goals could generate 12 trillion USD a year
in sustainable and inclusive business opportunities (the equivalent of 10% of
global GDP by 2030) (BSDC 2017).
The role of the G20 countries is crucial because they produce 86% of global GDP(IMF 2017), 87% of outward Foreign Direct Investment (FDI) flows (UNCTAD
2018), and support two-thirds of the world’s population. However, there are
four main challenges that restrain their corporates from making full-fledged
contributions to SDG acceleration:● The gap between good intentions and the real actions by business. While
SDG awareness is rising in the business community and enlightened
corporate leaders are emerging, the majority remain unaware of the SDGs
and of the societal challenges they aim to address. Even many of theenlightened are yet to convert their SDG awareness into concrete actions
or make them part of their core strategy. It is important to encourage and
1 See Berteslmann Stiftung and Sustainable Development Solutions Network (2018), viii.

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2030 Agenda for
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support those companies with good intentions and new business cases toembed the SDGs into their core business strategies, operations, andperformance indicators;● Conflict between the current economic system that values short-term
profit maximization and shareholder returns and the SDG focus on longterm societal purpose. Even accounting for a handful of enlightened
corporate leaders, the fact remains that all organizations will struggle todeliver on the SDGs because they operate in a system that prioritizes shortterm financial performance rather than social progress. Systemic change isurgently needed. Consistent reporting across much broader indicators isneeded to understand progress against the SDGs;● Limited understanding among corporates, citizens, and other stakeholdersof how their interactions impact sustainable development. Because
business is embedded in society, the connection between it and various
stakeholders should be addressed as a two-way relationship. Business canaffect and influence stakeholders to do more to advance the SDGs. At thesame time, stakeholders can influence the way businesses operate andcontribute to sustainable development; and● Capacity constraints in the developing countries affect their ability to takeadvantage of opportunities emerging from Global Value Chain (GVC)
participation and to avoid the risk of inappropriate supply chain
management by FDI companies. While GVCs offer new prospects for
growth, competitiveness and job creation at all levels of development(APEC 2014), the expansion of GVCs by multinational corporations intodeveloping countries can bring negative social and environmental
consequences to the host countries, unless they are managed in a
responsible and sustainable manner (UNIDO 2015; Kaplinsky 2016).
Furthermore, developing countries need to upgrade their industrial
capacity so that they can attract quality FDI in the light of changing
economic, social, and environmental standards.

32030 Agenda for
Sustainable Development
Proposal
The 2030 Agenda demands a new way of doing business aligned with social
progress and sustainable development. Contributions should go beyond
Corporate Social Responsibility (CSR) practice, or mere financing. In this light,
we present four proposals to the leaders of G20 countries, calling for action tofacilitate the scaling up of business impact on the SDGs.
Proposal 1: Embedding the SDGs into core business strategy and operations
1.1 Converting SDG awareness into concrete business actions

A survey on inclusive growth shows that while 92% of business executives
support the SDGs, only 17% have plans or policies to achieve them (Deloitte2018). 2 Another recent survey indicates that although 72% of global
companies mention the SDGs in their annual corporate or sustainability
reports, only 50% had undertaken the crucial process of prioritizing which
SDGs were most relevant to their business (PwC 2018).3 Thus, there is a needto convert SDG awareness into concrete business action. Companies mustembed the SDGs into their core business strategy and operations. This requires
each company to establish a coordinated and well-sequenced SDG strategy, byreassessing its business and the value it brings to employees, shareholders, andsociety, and also by taking account of the local country context which thecompany operates (Figure 1).4
More specifically, companies must prioritize the SDGs based on their relevance
given their countries and sectors of operation. Companies must strike a balance
between business growth and societal and environmental impact, by
2 This is based on the 2018 Deloitte Global Inclusive Growth Survey which surveyed 350

company executives.
3 This is based on the 2018 PwC SDG Reporting Challenge that surveyed 729 global
companies.
4 In this regard, the Mars Corporation’s initiative is notable. This company is experimenting
with a new business model based on the concept of the “Economics of Mutuality,” which
incorporates long-term sustainability and responsibility to people, planet, and performance(see Appendix (1)). In the latest corporate strategy, Mars is committed to sustainablesourcing, a healthy planet, thriving people, and nourishing wellbeing through the value chain
process (MARS 2015).

42030 Agenda for
Sustainable Development
considering all three dimensions of sustainable development (social, ecological,
and economic). In doing so, they have to understand interconnectivity of thegoals and targets and evaluate which ones they can best use to realize
inclusiveness, ensuring that “no one is left behind.” They must identify businessrisks in relation both to core products and activities, and more broadly acrossthe supply chain on a country by country basis. They have to target potential
opportunities (where business activities could help significantly more) in
relation to core products and activities and the wider supply chain.
It should also be noted that the vast majority of businesses remain unaware of
the SDGs and their role in delivering social progress; this is the case in Japan5
but probably also elsewhere. Hence, it is important to raise corporateawareness of their responsibility and potential for contributing to theachievement of the SDGs.
Figure 1: Mapping the SDGs against the Value Chain

Source: GRI, UN Global Compact, and WBCSD (2015), 12.
https://sdgcompass.org/wpcontent/uploads/2015/12/019104_SDG_Compass_Guide_2015.pdf
5 According to a survey commissioned by a regional bureau of METI (METI Kanto 2018),

84.2% of SMEs are not familiar with the SDGs, and only 2% of the 500 respondents answeredthat they are planning to take or have already taken specific actions in relation to the SDGs.
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2030 Agenda for
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In this regard, it is worth noting the recent initiative by Keidanren (the Japan
Business Federation) to revise its Charter of Corporate Behavior with the aimof leading the realization of a sustainable society, and also to formulate related
Implementation Guidelines. 6 More than 1,000 large member companies are
expected to use the Charter and guidelines. This initiative could serve as
reference for G20 governments to motivate and encourage their respective
business organizations and companies to follow suit.
1.2 Linking corporate reporting to the SDGs, by using the common
framework and standards

As stated in Goal 12 7 , corporate reporting is important for concerned
stakeholders, such as investors and consumers, to monitor corporate
performance. Although many companies have pledged commitment to theSDGs, their Key Performance Indicators (KPIs) do not necessarily reflect SDG
thinking. The existing survey shows that only 7% of companies link KPIs tosocietal impact (PwC 2018). Corporations need to improve the quality of theirreports by linking KPIs to the SDGs more directly.
A range of international frameworks, indices, and standards to prepare
sustainability reports (e.g., Global Reporting Initiative (GRI), Social ProgressIndex (SPI), UN Global Compact, International Organization for Standardization(ISO)) are available to corporations. Moreover, each G20 country has its
domestic reporting guidelines. In Japan, the Ministry of Environment
introduced Environmental Reporting Guidelines, and the Government Pension
Investment Fund (GPIF) calls on companies to further disclose their CO2
emissions. However, due to multiplicity and inconsistency of these standards
and guidelines, not a few companies seem to face difficulties in following them.
This is particularly so for small and medium enterprises (SMEs) (METI Kanto2018) and those of developing countries, which have capacity constraints andlimited access to information (Sommer 2017).

6 See Appendix (2) for more detail.
7 The Goal 12 (Responsible Consumption and Production) states: “Encourage companies,

especially large and transnational companies, to adopt sustainable practices and to integratesustainability information into their reporting cycle. It also specifies the corresponding
target (12.6) of “number of companies publishing sustainability reports.”
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2030 Agenda for
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Evidence shows that consumers are increasingly trustful of—and loyal to—
products or brands that contribute to society (Deloitte 2017). Therefore, theuse of common standards for corporate reporting should be encouraged so that
consumers can make accurate comparisons and informed choices.
1.3 Promoting joint business action for the common good, utilizing majorinternational events as showcases

International events and symbolic momentum provide good opportunities topromote business alliances toward the common good as well as to increase
corporate awareness of the SDGs. Such occasions can be used to solicit new andinnovative ideas and engage enlightened corporates to jointly act forsustainable business. For the G20 Japanese Presidency, the 2020 Tokyo
Olympics and Paralympics, as well as the 2025 Osaka EXPO, could serve as
excellent opportunities to demonstrate business leadership in this regard.
For example, sustainable food supply chain management can be promoted byurging a business to observe Good Agricultural Practice (GAP)8 at major events
such as the 2020 Tokyo Olympics. Similarly, the provision of inclusive and fair
services to handicapped persons can likewise be promoted at the Paralympics.
Proposal 2: Reshaping the economic system around the common purpose ofsustainable development
2.1

Developing a sustainable capital market9

Investment and disinvestment that incorporates environmental, social andgovernance (ESG) factors into decision-making can significantly change
corporate behavior toward the SDGs (Figure 2). Recent years have seen the
adoption and implementation of major international initiatives to promote ESG
investments. These include the UN Principles for Responsible Investment (PRI)
and the Task Force on Climate-related Financial Disclosures (TCFD).
8 GAP is a collection of principles promoted by the UN’s Food and Agricultural Organization(FAO) in relation to on-farm production and post-production processes, in order to realize
safe and healthy food and non-food agricultural products, while taking into accounteconomic, social and environmental sustainability.
9 A separate Policy Brief will be prepared on sustainable finance for development. See also
Zadek and Kharas (2018) for a Policy Brief submitted to T20 Argentina.
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2030 Agenda for
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Encouragingly, ESG investment has increased in G20 countries, as well as
divestment of environmentally and socially harmful projects. However, thedegree of interest and acceptance of ESG investment varies across countries
and regions, with Asia (including Japan) scoring lower than the global
average.10 Much needs to be done to develop a sustainable capital market.
Therefore, it is vitally important to devise measures to further promote ESG
investment and mainstream it in the capital market. We urge the governmentsof G20 countries to adopt policy measures which properly incentivize investors
to pay due attention to the agenda of sustainable development, and to increase
ESG investment. Such measures could include preferential tax treatment,
training and fostering asset managers specialized in ESG investment.
Figure 2: ESG Investment and Sustainable Capital Market

Source: Financial Services Agency of Japan (modified by the author).

2.2 Promoting sustainable procurement in the public sector

Procurement occupies 20-30% of total government expenditures in developed
countries (OECD 2018, see Figure 3). Hence, sustainable procurement by the
10 According to the Global Sustainable Investment Alliance (GSIA), in 2016, the proportionof Sustainable Responsive Investment relative to total managed assets was highest in Europe(52.6%), followed by Australia & New Zealand (50.6%), Canada (37.8%), and the UnitedStates (21.1%). Asia was the lowest at 0.8% with Japan scoring at 3.4%. The global average
was 26.3%.
82030 Agenda for
Sustainable Development
public sector can facilitate sustainable development. Wellbeing indices like theSocial Progress Index are being used by local authorities in the UK to compel
firms bidding for government contracts to compete not just on price or services
offered, but also on the social and environmental impact they will create for thecommunity. Governments at every level can build similar requirements into
their procurement procedures to encourage sustainable business practices by
ensuring firms awarded public contracts are also generating societal good. Weurge that leaders in G20 member countries, in particular, take the lead inpromoting sustainable procurement.
As global leaders that serve as models for the rest of the world, governments ofdeveloped countries can facilitate the adoption of sustainable procurement indeveloping countries. International cooperation can support capacity
development for sustainable public procurement in developing countries.11
Figure 3: Government Procurement Spending as a percentage of GDP and
Total Government Expenditures
percentage of GDP（%）
50

share of total government
expenditures

45
40
35
30
25

20
15
10
5

0

Source: OECD (2017) Government at a Glance 2017 edition.

11 United Nations Environment Programme (UNEP) has been supporting sustainable public

procurement in developing countries, in collaboration with the Swiss government.
http://www.unep.fr/scp/marrakech/pdf/SP2pager_eu.pdf
92030 Agenda for
Sustainable Development
Proposal 3: Creating a “sustainable ecosystem” for shaping beneficial
environment for all stakeholders
3.1 Promoting the understanding and the notion of a “sustainable ecosystem”
among all stakeholders

For business to thrive, it needs a thriving economy, society and environment.
This is the essence of a “sustainable ecosystem,” where all actors in the system
are incentivized to behave in a concerted manner to make social progress(Figure 4). In order to mobilize the potential of corporates toward theachievement of the SDGs while minimizing their negative impacts, it isnecessary to create a sustainable ecosystem. Governments, citizens, corporates,and other stakeholders have key roles in this.
One way to create and maintain such a sustainable ecosystem is by ensuringthat activities undertaken by businesses do not hinder the potential of otheractors such as governments, civil society, or other businesses to achieve theSDGs. It is important that the leaders of G20 member countries acknowledge
the importance of creating a sustainable ecosystem, promote this notion to thebroad segments of the society, and encourage the corporate sector to maketheir interests compatible with wider societal and environmental interests,
particularly those of consumers.
Figure 4: Sustainable Ecosystem

Source: Elaborated by the author.

102030 Agenda for
Sustainable Development
3.2 Raising consumers’ awareness of sustainable development

Corporates are key actors supporting the delivery of the 2030 Agenda.
Likewise, the SDGs represent an opportunity for them to rethink theirapproaches to sustainability. But corporates are yet to respond to this challenge
adequately. Nevertheless, growing demand for production that considers socialand environmental factors has been creating market incentives forcorporations to respond to. General awareness of the importance ofsustainability throughout the supply chain has the potential to increase thenumber of responsible consumers.
More fundamentally, for a sustainable ecosystem to work, there is a need tocreate a virtuous cycle where consumers’ perspectives and needs are
effectively transmitted to businesses, inducing corporate behavioral changes
toward greater sustainability. In this regard, the experiences of consumers' cooperatives (these originated in the UK and are now spread widely) are notablebecause they connect consumers’ needs with businesses. For example, theJapanese Consumers’ Cooperative (JCCU) collaborates with members andmanufacturers, and manages the process of development, production, supply
chain and distribution of ethical products with the CO-OP brand.12
3.3 Building accountability frameworks

Corporates are also market competitors and can compete with each other onachieving sustainability. In this regard, the existence and use of common
standards in each industry allows consumers to make accurate comparisonsand informed choices between similar goods and services. Similarly,
independent, third-party analyses can improve accountability when used toassess the social and environmental impact of firms. By making the social
impact of different types of economic activity more visible, indices like the SPI
or the SDGs Index empower regulators, consumers, and civil society
12 JCCU has about 320 consumer co-ops and consumer co-op unions, with total of 28 million

members. Each consumer co-op is an autonomous association of consumers uniting
voluntarily to meet their common needs and aspirations. They cover retail, insurance,
healthcare, and welfare businesses. JCCU collaborates with members and manufactures, andmanages the process of development, production, supply chain and distribution of 4,500
ethical products with the CO-OP brand. They received the 2nd Japan SDGs award in December
2018 from the Japanese government.
112030 Agenda for
Sustainable Development
organizations to hold corporates accountable and encourage sustainablebusiness practices.
Proposal 4: Upgrading the enterprise and policy/regulatory capabilities ofdeveloping countries to maximize the potential benefits of their participation
in GVCs
4.1 Promoting “Quality FDI” to developing countries, which gives due attention
to the sustainable management of entire value chains (including people andcompanies in the host countries)

From the perspective of developing countries, the expansion of GVCs led bymultinational corporations provides both opportunities and challenges to theireconomies and societies. According to the Business and Sustainable
Development Commission, 380 million new jobs will be created by SDG-related
business opportunities by 2030, with almost 90% in developing countries(BSDC 2017). Nevertheless, unless multinational corporations give due
attention to sustainable and responsible management of their supply chains,there is a risk that host countries face negative consequences in terms of fairlabor, environmental damages, safety, etc. There is also the risk that developing
countries’ domestic firms will be excluded from participating in GVCs (Dolan
and Humphrey 2000; UNIDO 2015; Kaplinsky 2016).
Therefore, G20 countries should urge their respective corporate sectors to beengaged in “Quality FDI,” which embraces the Triple Bottom Line ofsustainability (satisfying economic, social, and environmental standards)
throughout their entire value chains.13 G20 governments are also requested toembrace the SDGs and to translate that relationship into policy measures thatenable greater corporate action. Also, lead firms can facilitate the inclusion of
low-income country producers in GVCs by providing skill upgrading andtechnology transfers, as well as monitoring their effective implementation ofregulations and standards. There is a well-known story that the local human
13 “Quality FDI” may be characterized as contributing to the creation of decent and value-

adding jobs, enhancing the skill base of host economies, facilitating transfer of technology,
knowledge, and knowhow, boosting competitiveness of domestic firms and enabling theiraccess to markets, as well as operating in a socially and environmentally responsible manner(Gorg et al. 2017).
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Sustainable Development
resources trained by a Korean lead firm in the late 1970s made criticalcontributions to developing today’s garment industry in Bangladesh. 14
In this regard, it is also worth noting an emerging public-private partnershipfor building an eco-industrial park in Ethiopia (Hawassa Industrial Park (HIP)).
Here, PVH Corp.—one of the largest global apparel companies based in the US,
and a lead firm in HIP—has been playing a key role in advising the Ethiopian
government on the importance of social and environmental sustainability at thetime of HIP establishment (World Bank Group 2017).15
4.2 Supporting the capacity development of host country governments to
upgrade their GVC industrial policy and improve their business environments

Attracting Quality FDI requires vigorous efforts by both the public and private
sectors of host countries to enhance their policy, human and enterprisecapabilities. To become reliable partners of lead GVC firms, local companies
must improve the quality, productivity, and competitiveness of their products
and services so that they can meet international standards 16 and continue
upgrading their position in GVCs. Moreover, the host country government
needs to embrace strategic industrial and FDI policies to attract Quality FDI.
Typical measures include: identifying and directly interacting with criticalglobal companies, maximizing collaboration with them to create strong
linkages with local firms, upgrading local enterprise capabilities to meetstandards requirements and implementing outreach programs for small-scale
producers (JICA and GRIPS Development Forum 2016; Fessehaie and Morris2018).
The governments of G20 countries and international agencies should provide
14 A Korean lead firm, Daewoo, trained the staff of Desh Garments Ltd (local partner) in

Bangladesh, sending 130 workers and management trainees to its Pusan plant in 1979. After
six-months training, Desh started to operate six lines with 600 workers, giving a 5 million
pieces per year capacity in its modern factory in line with Daewoo’s specifications. While 115
of Desh’s 130 initial workers left to establish or join newly set-up local garment firms, they
contributed to the expansion of the ready-made garment sector in Bangladesh (Rhee 1990;
Yunus and Yamagata 2012).
15 See Appendix (3) for further information.
16 These normally include satisfying both QCD (quality, costs, delivery time) andsustainability standards.
132030 Agenda for
Sustainable Development
various support programs for value chain inclusion of local companies, with theabove capacity development measures. In this respect, the East Asianexperience is a useful reference because one-by-one, countries in different
development stages have participated in the dynamic production network
created by private multinational corporations. With strong trade, FDI, and aid
linkages and technology transfer, a regional division of labor with a clear orderand industrial structure has emerged. This is how East Asia has become theglobal factory for manufactured goods (often called the ‘Flying Geese’ patternof development) and achieved inclusive growth (Shimomura & Wang 2013;
Ohno & Ohno 2019). More recently, new opportunities are emerging for adeveloping country to participate in GVCs by becoming part of a particular
chain where the country has comparative advantage—regardless of theexistence of the Flying Geese pattern. The Mexican automobile industry is apromising case of the growth and integration of local car parts makers into
automobile value chains. Here, international cooperation has played afacilitating role in upgrading capabilities of local enterprises and linkages with
FDI.17***The SDGs need business, and business needs the SDGs, too. We believe thatpolitical leadership has a critical role to play in driving our world toward a
thriving economy, society, and environment.
We urge the leaders of G20 countries to call for the following actions to scale up
business impact on SDG achievement:
17 During 2012-2017, Mexico’s annual car production increased from 3 to 4 million, while

Japanese car manufacturers’ production in Mexico expanded by 66%, from 800,000 to
1,330,000. This increase was accompanied by a rapid expansion in car parts production in
Mexico, with international cooperation playing a key role in facilitating this process. In thecase of Japanese auto firms in Mexico, the Japan External Trade Organization (JETRO)
collaborated with Mexico’s trade promotion agency, ProMéxico and provided direct capacity
building for local SMEs. In 2012, JICA initiated a program with the help of Japanese firms, toincrease the productivity of potential Mexican suppliers, through training in Japan’s Kaizen
management practices. In addition, the two governments established a “Committee on the
Improvement of the Business Environment” in the context of the EPA, which meets regularly
to discuss issues arising in the operations of Japanese firms in Mexico (IDB 2016; Hosono2018).
142030 Agenda for
Sustainable Developmentl Urging business to embed the SDGs into core business strategy andoperations;l Taking supportive measures to reshape the current economic system
around common goals and to create a beneficial ecosystem for all
stakeholders; andl Supporting the industrial and social upgrading of developing countries sothat they can benefit from inclusive and sustainable GVC participation.

Acknowledgements.

The authors are grateful to Bethan Grillo (PwC) and her colleagues for their
input into the drafting of this policy brief. The Policy Brief has also benefitted
from
discussionswithandcomments
from: Sachin Chaturvedi(RIS), Akio Hosono (JICA
Research
Institute), Homi Kharas (Brookings
Institute), Kwang Wook Kim (Asia Foundation), Adolf Kloke-Lesch (SDSN
Germany), Kohei Kubo (Keidanren), Wonhyuk Lim (KDI School), Brent Nagel(SocialProgress
Imperative),Hyuk-Sang Sonh (Kyung
Hee
University), Mustafizur Rahman (CPD), and Imme Scholz (German
Development Institute). Any errors and omissions remain the sole
responsibility of the authors.

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Appendix
Appendix (1)Mars: The Economics of Mutuality as Innovative Management Concept

The Mars Corporation, with $35 billion
annual revenues and known for suchproducts as M&Ms and Snickers, hasbeen experimenting a new businessmodel based on the concept of“Economics of Mutuality (EoM)” since2010. This concept was developed by
Catalyst (the internal think-tank for theMars Corporation), and the Said
Business School at Oxford University
and adopts the idea that when sharing(Mutuality)
drivesbusiness
performance, greater value can becreatedthan
through
profitmaximization. EoM is a major corporate
measurement
initiativethat
incorporates long-term sustainability
and responsibility to people, planet, andSource: MARS 2017
performance in a company’s businessmodel, affecting accounting andvaluation. Thus, it differs from CSR(Corporate Social Responsibility mostly charity) and CSV (Creating
Shared Value) which is ad hoc in nature and is a customized consulting solution
to determine the best alignment of profits and social impact.
Source: MARS Corporation 2017, Mars Catalyst, and Said Business School,
University of Oxford 2015.

192030 Agenda for
Sustainable Development
Appendix (2)Keidanren - The Charter of Corporate Behavior and the Implementation
Guidelines

In November 2017, Keidanren revised its Charter ofCorporate Behavior with the primary aim of proactively
delivering on the SDGs (“The Charter of Corporate
Behavior: For the Realization of a Sustainable Society”).
The Charter is a code of conduct composed of 10 principles
that member corporations pledge to observe in taking thelead in the realization of a sustainable society:
1. Sustainable economic growth and the resolution ofsocial issues;
2. Fair business practices;
3. Fair disclosure of information and constructive dialogued withstakeholders;
4. Respect for human rights;
5. Relationships of trust with consumers and customers;
6. Reform of working styles and enhancement of workplace environments;
7. Engagement in environmental issues;
8. Involvement in community and contribution to its development;
9. Thorough crisis management; and10. The importance of the role of top management and the implementation of
the Charter.
Keidanren also formulated a set of Implementation Guidelines for the use of
member corporations, specifying 49 key implementation items under the 10
principles. These documents encourage corporate behavioral change not only
within their own companies, but also in their group companies and supply
chains, and, by fostering partnerships with various organizations, help them act
toward the realization of the SDGs.
Source: Keidanren 2017.
20

2030 Agenda for
Sustainable Development
Appendix (3)A Public-Private Partnership for Building an Eco-Industrial Park in Ethiopia

The Hawassa Industrial Park (HIP), inaugurated in July 2016, is a flagship ecoindustrial park developed and supported by the Ethiopian government andspecializing in textile and garment production. Faced with rising production
costs and wages in Asia, the US-based PVH Corp. decided to invest in Ethiopia
and bring its Asian suppliers to HIP. As an apparel giant, PVH Corp. attaches
high importance to building responsible and sustainable supply chains, and thecompany’s executives advised leaders of the Ethiopian government on concretemeasures to be taken on environment, safety, and sustainability standards tomake HIP compatible with international standards, and the government
seriously put them into action. These actions included: (i) A Zero-LiquidDischarge Common Effluent Treatment Plant; (ii) Renewable Energy; (iii)
Compliance with Relevant Fire and Building Standards; (iv) Compliance with
the Customs-Trade Partnership Against Terrorism (C-TPAT); and (v) the
creation of a Tenant’s Association.

Source: Elaborated by the author, based on World Bank Group (2017). Photos
by the author21