Sustainable Energy for All Commitments and Accountability Framework Ole Lund Hansen Head, Global Compact LEAD Issue Manager, Energy

SG’s Sustainable Energy for All Initiative – Key Deliverables Action Agenda document containing: Areas of focus Menu of “high-impact” opportunities Roles and responsibilities Roadmap with milestones Generic frameworks for accountability Web-based, marketplace portal: Visions, road maps, milestones, indicators Action Agenda recommendations Case studies Commitments Accountability mechanisms Progress “snap shots” Identifying & mobilizing commitments to the Action Agenda: Guidance and structure Criteria Recognition Legitimacy Accountability measures SG’s goal and objectives: Universal access to modern energy services. Doubling the rate of improvement in energy efficiency. Doubling the share of renewable energy. Secretary- General’s Vision Action Agenda November 2011 January 2012 Jan 2012 onward Announcement at Rio+20 1 st /2 nd Q 2012 Action “Accelerator” (Web-based platform) Commitments and Accountability

New UN “Marketplace” for Voluntary Corporate Commitments Participation in the UN Global Compact is a voluntary commitment to corporate sustainability and transparency Similar to other initiatives, we have solicited issue-specific commitments on an ad-hoc basis (incl. Private Sector Forum) Leading new undertaking to systematize voluntary corporate commitments to specific UN goals on a system-wide platform Large-scale commitments to SE4A by Rio+20 may lead the way for progress on other issues and goals

Commitments and Accountability Framework Sector Specific Recommendations and Best Practices General Commitment Criteria Commitment Selection Screen Recognition and Visibility Accountability Mechanisms 1a1b 2 3 4

Types and Examples of Corporate Commitments to SE4A Core Business Individual Action Partnerships Social Investments Advocacy Bayer commits to improve its energy efficiency by reducing specific greenhouse gas emissions by 35% by 2020 (baseline 2005) per metric ton of products sold Acciona, a construction and infrastructure company, commits to create favorable conditions for introducing a renewable energy framework to Mexico in collaboration with local and national governments and other relevant stakeholders Deutsche Bank commits to facilitate financing structures which will expand the financing of energy efficiency projects and enable the deployment of renewable energy in developed and developing countries Novozymes will partner with CleanStar Mozambique to aid farmers in Sofala province in implementing environmentally restorative agroforestry. CSM will purchase whatever the farmers do not consume, increasing their incomes by 400% Calvert Investments plans to demonstrate the financial and investment risks and opportunities related to climate change and renewable energy and use this to engage on strategies that will reduce greenhouse gas emissions and promote cleaner energy Aviva commits to form a coalition of financial institutions, NGOs, investors, & professional bodies that will call to develop a global policy framework requiring listed and large private companies to integrate sustainability into their annual report and accounts

Types and Examples of Public Commitments to SE4A...? Policy Individual ActionPartnerships Procurement & Spending Advocacy & ODA Switzerland pledged to strengthen their FIT law that became effective in 2009, increasing overall money for FIT 12 fold to provide qualified projects more resources as they come online Pledges were made on the integration of Germany’s electricity grid into the European grid network as well as electric vehicle and transportation deployment Tokyo pledged to increase its use of renewable energy through the Tokyo Metropolitan Government Cap and Trade program and cooperation among regions India created a global competition to develop and deploy affordable, efficient and clean cookstove technologies Germany committed to a 300 billion euro contribution annually from 2010 to 2012 for capacity building and development coordination on renewable energy and energy efficiency in developing countries Norway committed to double support for the promotion of clean energy in developing countries from NOK 800 million to 1.6 billion by 2011 Similarly, other actors such as NGOs, non-profits, individuals, etc. can make commitments to SE4A

Commitments and Accountability Framework Sector Specific Recommendations and Best Practices General Commitment Criteria Commitment Selection Screen Recognition and Visibility Accountability Mechanisms 1a1b 2 3 4

8 Draft General Commitment Criteria Criteria Template for company to describe how the commitment… Additionality …goes beyond ‘business as usual’ Significance and Relevance …supports the vision of SE4A and is aligned with sector-specific recommendations Measurable and Time-bound …defines a set of KPIs and identifies specific targets that must be met within a set period of time Realistic and Achievable …can be achieved and what resources will be made available to secure implementation Commitment to Transparency …will be reported on annually so that findings and outcomes will be available to the public Commitment to 3 rd Party Review (Optional) …will be audited by third party to ensure legitimacy of findings and to provide accountability Output Input Accountability Commitment Criteria

Selection Screen 9 ‘Blind acceptance’Technical review High-level or expert review by legitimate body No official review or rejection process All commitments are accepted unless obviously fall short of application criteria Objective set of criteria that all commitments must meet Absolute thresholds established along every dimension Simple review process with legitimacy coming from objective criteria Mixture of objective and subjective criteria that must be met Subjective criteria require a legitimate body or individual to decide on commitments

Recognition and Visibility to Incentivize Strong Commitments Speaking-opportunities at high-level events, incl. Abu Dhabi, Rio+20 1 Awards for strong commitments Allow for self-promotion using special logo (with proper integrity measures) Recognition of commitment on websites (UN and SE4A) and reports What else???

Draft Accountability Framework Annual, public reporting on progress on implementation Description and measurement of progress against pre-defined KPIs and targets Integrated into annual COP (for GC participants) or sustainability report Optional 3 rd party review of self-reporting on progress (differentiation) Delisting policies and procedures for non-compliance Other (low-cost) options?

Key questions for consideration 1.Are commitments to SE4A part of our definition of success? 2.Beyond the private sector? (=> need to define criteria and adapt accountability framework for non-business sectors) 3.To what extent and how should commitments be screened against the criteria? (quantity vs. quality) 4.How can we best ‘shine the light’ on commitment-makers? 5.Does annual reporting and delisting policies constitute an adequate accountability framework? 12