18th March 2024: The United Nations Global Compact (UNGC) has as a pivotal force in promoting responsible business practices and UN values worldwide since its inception in July 2000 under the leadership of then Secretary-General Kofi Annan. With a mandate set by the UN General Assembly (UNGA), the UNGC fosters collaboration between global businesses, labor groups, civil society organizations, and the UN system to advance sustainable development goals.
In a statement by UN Secretary-General and UNGC Board Chair, António Guterres, it was emphasized that urgent action is needed to achieve the 2030 Agenda and the Sustainable Development Goals (SDGs), particularly in light of the escalating climate crisis. Guterres highlighted the critical role of businesses in catalyzing global collective action to change operational practices and mitigate environmental impact.
Headquartered in New York, the UNGC operates globally through local networks in participating countries. It serves as a platform for CEOs of major companies to voluntarily commit to universal sustainability principles, supporting initiatives such as the Millennium Development Goals (MDGs, 2000-2015) and the SDGs (2015-2030).
The UNGC has experienced significant growth, with its global participant base expanding by 60% since the launch of its 2021-2023 strategy, now representing over 70 million employees worldwide across more than 20,000 companies, boasting an impressive 95% retention rate.
Key initiatives spearheaded by the UNGC include:
- UNGC Academy: Launched in September 2018, the UNGC Academy offers a digital learning platform aimed at helping companies enhance sustainability efforts. It provides the knowledge and skills necessary to align business practices with the 2030 Agenda and UNGC principles.
- Peer Learning Groups: Introduced in November 2022, these groups convene sustainability leaders to discuss critical issues, share best practices, and build professional networks, fostering collaborative learning and knowledge exchange.
- Cities Programme: The City of Melbourne, Australia, exemplifies the commitment of cities to positive change by joining the UNGC, showcasing their dedication to international dialogue and sustainable development.
- ESG Reporting: The European Union’s Corporate Sustainability Reporting Directive, effective January 2023, mandates reporting on social and environmental impacts for around 50,000 companies. This has catalyzed the adoption of Environmental, Social, and Governance (ESG) frameworks globally, emphasizing business responsibility towards societal and environmental concerns.
To address current challenges, the UNGC emphasizes the importance of taking a principles-based approach to the SDGs, setting ambitious goals aligned with the 2030 Agenda, integrating SDG actions deeply into core business practices, and scaling actions across supply and value chains.
Furthermore, reforms to global governance are essential to manage geopolitical tensions in a multipolar world, where strong multilateral institutions are crucial. The UNGC, as a UN product, plays a significant role in advocating for responsible business behavior towards people and the planet, with the involvement of civil society organizations and stakeholder communities being vital in strengthening its impact. Together, these efforts aim to prioritize corporate social responsibility, serving both the needs of people and the environment while fostering sustainable economic and social development globally.
By- M.P.Boraian
