Why should investors care about ocean health?

by Dennis Fritsch, PhD, Researcher, Responsible Investor


This blog is part of the upcoming OECD Private Finance for Sustainable Development Conference that will take place on 29 January 2020


Ocean health

“The World’s Oceans Are in Trouble. And So Are Humans, Warns U.N. Report” – a blaring headline in Time Magazine just after the IPCC published their landmark report Oceans and the Cryosphere in September 2019. It highlights what scientists and NGOs have been shouting from the rooftops for years: human activity has put the global ocean in a dire state and by doing so is endangering planetary life as we know it. But how has it come this far? In addition to producing over half of the oxygen we breathe, being the largest carbon sink on the planet and a haven for biodiversity, a healthy ocean is a source of economic livelihoods for billions of people. The value of global ocean assets is estimated at over USD 24 trillion[1] making it the 7th largest economy in the world in GDP terms. Due to its integral role in the global financial and environmental ecosystems, the ocean is high on the international policy agenda[2] and its importance continues to grow. The global ‘Blue Economy’ is expected to expand at twice the rate of the mainstream economy until 2030[3], and already contributes USD 2.5 trillion a year in economic output. Continue reading

How Blended Finance Can Plug The SDG Financing Gap

By Jean-Philippe de Schrevel, Founder and Managing Partner of Bamboo Capital Partners


This blog is part of the upcoming OECD Private Finance for Sustainable Development Conference that will take place on 29 January 2020


Greenlight planet - Shopkeeper

We now have just 10 years to achieve the Sustainable Development Goals (SDGs). To date, the SDGs have been underfinanced. The annual financing gap to achieve the SDGs by 2030 currently sits at USD 2.5 trillion. The current approach is not working. Historically, financial institutions have focused on financing one or two SDGs in isolation, and this funding is often directed towards relatively low-risk investments. Collectively, we need to reconsider how we can realistically finance the SDGs by 2030, and this is where blended finance impact investment vehicles have an opportunity to shine.

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The Human-Centred Business Model: An Innovative Ecosystem for Sustainable Development

LJDBy Federico Bonaglia, Deputy Director, OECD Development Centre, and Marco Nicoli, Special Advisor to the Director of the OECD Development Centre


This blog is part of a special series exploring subjects at the core of the Human-Centred Business Model (HCBM). The HCBM seeks to develop an innovative – human-centred – business model based on a common, holistic and integrated set of economic, social, environmental and ethical rights-based principles.
Read more about the HCBM here, and check out an event about it here

The HCBM project originated in 2015 within the World Bank’s Global Forum on Law, Justice and Development and is now based at the OECD’s Development Centre.


business-sustainability.jpgMany argue that current public policies and business practices are not delivering widespread prosperity for people and the planet (Wolf). During the last ten years, the OECD has gathered a significant body of evidence on the increased inequalities of income and opportunities in many countries. The top 20% of the income distribution earns 9 times more on average than the bottom 20%. The distribution of wealth is even more unequal, with the top 20% keeping half, while the bottom 40% holds only 3%. Corporate profits are at historic highs in many countries: shareholder payouts hit a new record in 2018 as global dividend payments neared the USD 500 billion mark.[1] Simultaneously, median wages and living standards continue to stagnate, productivity growth falters in many countries and whole swathes of citizens are excluded from contributing to, and benefiting from, economic prosperity. Our economic system continues to wreak incredible environmental destruction, the costs of which disproportionately fall on the poor and vulnerable in addition to the planet’s flora and fauna. As United Nations Secretary General Guterres recently stated, “we are losing the race against climate change. Our world is off-track in meeting the Sustainable Development Goals”. Continue reading

The food economy can create more jobs for West African youth

By Léopold Ghins and Koffi Zougbédé, OECD Sahel and West Africa Club Secretariat 

Français suit

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Muhammad Sanyang, General Manager of MBK Farms, Banjul, Gambia.
© SWAC/OECD

Youth employment and job creation loom high on development agendas in West Africa. The issue is also a priority at the continental and international levels: decent work and youth empowerment are priority areas within the African Union’s Agenda 2063, and ‘youth and jobs in the Sahel’ will figure prominently amongst talks at the G7 Summit which begins this Saturday in Biarritz.

Such policy focus is necessary in view of the demographic realities in the region. Although unemployment is low overall, informality remains prevalent, and growing numbers of young people struggle to access attractive training or sources of income. West African economies need to create more and better jobs. Yet, from a policy perspective, how to support decent and inclusive job creation is not always clear. Trade-offs in public resource allocations across sectors and information gaps abound.

In this context, what and where are the opportunities for policymakers willing to address the challenge of decent job creation? Continue reading

The Case for Gender-Smart Work Policies: Key to Equality, Good for Business

LJD

By Sandie Okoro, Senior Vice President and World Bank Group General Counsel


This blog is part of a special series exploring subjects at the core of the Human-Centred Business Model (HCBM). The HCBM seeks to develop an innovative – human-centred – business model based on a common, holistic and integrated set of economic, social, environmental and ethical rights-based principles. Read more about the HCBM here, and check out an event about it here

The HCBM project originated in 2015 within the World Bank’s Global Forum on Law, Justice and Development and is now based at the OECD’s Development Centre

This blog is also part of a special series marking the launch of the updated
2019 Social Institutions and Gender Index (SIGI)


We have witnessed numerous efforts to enhance gender equality throughout the past decade. Legal reforms are taking place worldwide, and discriminatory laws are slowly being struck down in favour of parity.[1] But despite developments in employment laws, inequality persists. Women’s labour participation has been stagnant, and last year, the already low number of female CEOs tumbled even further.[2] As the provider of 90% of jobs worldwide,[3] the private sector plays a significant role in the push for gender equality in employment. By adopting gender-smart policies, companies may be able to fill the gaps unaddressed by laws and minimise the impacts of inequality in the workplace. Although not all women work in these institutions, such policies are nonetheless impactful for those who do and could set in motion a new and replicable culture of work – one that is both business-smart and more gender-inclusive. Continue reading

Should firms in developing countries pursue independent R&D or adopt technology to innovate?

By Dai Jianjun and Yang Jianlong, Policy Research and Advice, OECD Development Centre (on secondment from the Development Research Center of the State Council of China)

Research-and-developmentInnovation promotes the global economy’s sustained growth, and innovation in developing countries can be achieved through two main means: independent research and development (R&D) or technology adoption. It is generally believed that developing countries can achieve development at a lower cost and faster by adopting technology. Even though enterprises are subject to certain restrictions in their technology adoption, such as mergers and acquisitions (M&As) that may be rejected due to national security factors, is it still relevant to depend on the adoption of technology for innovation to achieve continuous development?

To help answer this question, two companies in China, Huawei and Lenovo, offer perspectives in analysing different innovation models and their achievements. Both companies are engaged in the information technology industry and were established basically around the same time in the 1980s, experiencing first-hand the process of China’s implementation of the reform and opening-up policy to achieve economic catch-up. Currently, both are Fortune 500 companies, leading in their segmentation and having adopted different innovative approaches. Given the good comparability between the two companies, they offer relevant inspiration and analysis on innovation strategies and performance. How?

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Creating value and doing good: Governance solutions for sustainable enterprises

LJD

By Professor Andrea Zorzi, University of Florence


This blog is part of a special series exploring subjects at the core of the Human-Centred Business Model (HCBM). The HCMB seeks to develop an innovative – human-centred – business model
based on a common, holistic and integrated set of economic, social, environmental and ethical rights-based principles. Read more about the HCBM here, and check out an event about it here
The HCBM project originated in 2015 within the World Bank’s Global Forum on Law, Justice and Development and is now based at the OECD’s Development Centre.

BWO_038

Charitable institutions are an established concept. So is the concept of cooperatives that advance some social goals through business activities. What is relatively new, however, are two related ideas: one is the idea that the pursuit of social goals is the business itself, and the other that the business pursuit of social goals does not mean giving up profits.

In the past decade, many initiatives burgeoned to give legal form to social business. It was necessary before to adapt the legal structures of for-profit companies to not-only-for-profit goals. Adapted standards, however, may not always be effective or may expose entities to legal risks. Now, many jurisdictions provide legal forms for ‘social enterprises’, which are generally expected to pursue only ‘social, environmental or community objectives’, rather than both for- and not-for-profit goals and to reinvest most of their profits.[1] The most important difference between social enterprises and other non-profits is that social goals are pursued by carrying out the business rather than giving out money, goods and services to the needy.
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