Presentation on theme: "Corporate Sustainability in the Oil & Gas Sector: The UN Global Compact... Melissa Powell Head, Strategy & Partnerships UN Global Compact Office ANH Forum,"— Presentation transcript:
Corporate Sustainability in the Oil & Gas Sector: The UN Global Compact... Melissa Powell Head, Strategy & Partnerships UN Global Compact Office ANH Forum, 19 October, Cartagena
Why the UN & Business: Different Purposes, Overlapping Objectives Building Markets Good Governance & Security Environment Profit & Growth Social Inclusion Business Global Health Deepening Interdependencies United Nations Peace & Poverty Reduction
The UN Global Compact – Overview Launched on 26 July 2000 in New York with roughly 40 businesses UN Convention against Corruption Rooted in universally accepted conventions: Universal Declaration of Human Rights ILO Declaration Rio Declaration Worlds largest voluntary initiative Multi-stakeholder platform for collective action
UN Global Compact – Vision and Mission 2. Take action in support of UN goals and issues 1. Make the ten principles part of business strategy, operations and culture everywhere Internalization Contribution to society/ development Contribution to society/ development A more sustainable and inclusive global economy. Vision Two Objectives
MNCs and SMEs Current Facts and Figures about the GC Over 7,000 business participants in over 135 countries Over 3,500 non-business - civil society, labour, academia Equal representation in developed and developing world Over 100 Local Networks around the world All business sectors are represented
Global Compact Participants in the Oil & Gas Sector - 186
The UN Global Compact in Colombia Local Network formed in 2004, formal in 2009 320 companies: 19 from the Oil and Gas Sector (i.e Ecopetrol, Gas Natural S.A ESP, Independence S.A, Transportadora de Gas Internacional, Pacific Rubiales Energy, Surtigas S.A, Gases de Occidente, Organizacion Terpel, etc.) Multistakeholder Steering Committee, led by Empresa de Energia de Bogota. Working groups on Human Rights, Eradication of Child Labour, Anti-Corruption, Caring for Climate Ms. Mónica de Greiff, CEO of Empresa de Energia de Bogota, Member of the UNGC Board
The UN Global Compact - Clarification The Global Compact is not… a regulatory authority a substitute for regulation at the national or international level a UN seal of approval or label a PR exercise
UN Global Compact – An Integrated Sustainability Framework
Some Key Challenges in the Oil and Gas Sector Environmental challenges –Limits on natural resources –Emissions and climate change –Extraction practices –Land/ Water use Economic and social challenges –Sector dependence –Corruption –Distribution of benefits/revenue –Protecting human rights –Conflict
Caring for Climate and the CEO Water Mandate Caring for Climate –Launched in 2007, action platform to mobilize companies to implement climate change solutions & help shape public policy –380 signatories in 65 countries working to: EMBED Environmental Stewardship ; BALANCE short-term targets and long-term goals; DIFFUSE best practices throughout value chains by collaborating and engaging stakeholders; TRANSLATE best practices into processes that work in diverse geographies CEO Water Mandate –Public-private initiative launched by the UN Secretary General in 2007 –86 endorsers are working to: DEVELOP, IMPLEMENT and DISCLOSE water sustainability policies and practices. –6 elements: Direct Operations; Supply Chain and Watershed Management; Collective Action; Public Policy; Community Engagement; and Transparency.
The 10 th Principle – Anti-Corruption Development and Dissemination of Resources and Tools –RESIST: a scenario-based tool for employee training on resisting extortion and solicitation in international transactions –E-Learning Tool: a learning platform for practical guidance on how to fight corruption through six interactive dilemma scenarios –Fighting Corruption in the Supply Chain: A Guide for Customers and Suppliers: common supply chain corruption scenarios and a framework and set of tools for addressing them –Reporting Guidance: to assist companies in identifying reporting priorities that can put business on the path of performance improvement and enhanced transparency Working Group on the 10th Principle –Over 60 members, - strategic direction and provides a platform to discuss needs in this area and implementation challenges
Anti-Corruption in the Oil and Gas Sector: Opportunities for Engagement Oil & Gas Sub-Working Group –How companies in the oil and gas sector enact anti-corruption measures. –Exploring existing compliance practices and promoting common anti- corruption compliance standards. Collective Action –Anti-Corruption Project (Brazil, Nigeria, South Africa, India and Egypt): Aims to facilitate dialogue between the private and public sector and explores how collective action can create incentives for ethical business performance. –Work is carried out through the local networks in each of the countries and involving other stakeholders.
GUTE GRÜNDE FÜR NACHHALTIGKEIT Eine einfache Weisheit Human Rights
Both Respect and Support Business and Human Rights Dilemmas Forum Indigenous Peoples Rights – Business Guide in Development The Womens Empowerment Principles (Over180 CEO signers) –7 Principles offering guidance on how to empower women in the workplace, marketplace and community –Joint initiative of UNGC and UN Women –Elaborates the gender dimension of good corporate citizenship, the UN Global Compact, and business' role in sustainable development The Children's Principles –Ten principles that call on business everywhere to respect and support childrens rights throughout their activities and business relationships –Identifies actions that all business should take to maximize the positive impacts and minimize the negative ramifications that their activities may have on children
Guidance on Responsible Business in Conflict-Affected and High-Risk Areas - Articulates a common understanding of what constitutes responsible business in a conflict-affected or high-risk area - To enhance dialogue and engagement between companies and investors - Pilot Group of Companies and Investors operationalizing the Guidance Joint Global Compact-PRI Working Group: - Exploring challenges, sharing best-practices stemming from operating in high- risk areas. - Many oil and gas companies but also other sectors Country-specific webinars (Colombia, Myanmar, Iraq etc.)
Management Model / Leadership Blueprint Normative Framework Focus: WHAT defines a leader in corporate sustainability Target primarily sustainability leaders and aspiring leaders Leaders encouraged to cover all aspects of Blueprint in their COP Implementation Model / Guide Focus : HOW to build the right management system Target audience: New participants, with leadership examples to inspire Six-step model useful to structure and generate content for COP
Conclusions Voluntary initiatives helpful, but cant substitute for what Governments do or should do. (self-enforcing nature/collective action problem) Shift from philanthropy to the creation of shared value. Need to bring responsible business/sustainability to scale. Transition from experimentation & capacity-building to action, differentiation & accountability. Further leverage drivers that motivate changes in corporate behaviour – investors, business schools. The UN Global Compact as a way to integrate sustainability and make positive contributions to advancing societal goals.