Governments support corporate sustainability and the UN Global Compact in historic agreement on financing development

Governments support corporate sustainability and the UN Global Compact in historic agreement on financing development

Governments support corporate sustainability and the UN Global Compact in historic agreement on financing development

The FINANCIAL -- Heads of State, Government and High Representatives reached agreement at the United Nations Third International Conference on Financing for Development in Addis Ababa, Ethiopia on July 16, putting forward an outcome document which includes strong references to the critical role of responsible business and investment in driving sustainable development. The document also specifically supports the work being done by the UN Global Compact.

The agreement – which was reached by the Governments of 193 UN Member States and will be known as the Addis Ababa Action Agenda – puts forward how finance will support global sustainable development. It contains more than 100 concrete measures addressing sources of finance, taxation and a range of other issues seen as critical prerequisites for the success of the post-2015 sustainable development goals, according to Global Compact.

Paragraph 37 of the outcome document emphasizes corporate sustainability based on universal principles as a crucial component of sustainable development:  “We encourage businesses to adopt principles for responsible business and investing, and we support the work of the Global Compact in this regard.”

The same paragraph also highlights the importance of integrated company reporting.

Additionally, the document encourages the private sector to advance gender equality, and states: “We support the Women’s Empowerment Principles established by UN-Women and the Global Compact and encourage increased investments in female-owned companies or businesses.”

Also emphasized is the importance of collaboration and partnerships “to support country-driven priorities and strategies,” a point relevant to the work being done by Global Compact Local Networks and through the UN Global Compact Business Partnership Hub.

Furthermore, the importance of good governance is reaffirmed, particularly with regards to combating tax evasion and corruption, strengthening the rule of law and promoting peaceful and inclusive societies – all areas where the UN Global Compact works closely with business around the world.