ESG

1. - Is our company future-ready?
Understanding ESG, SDGs and SCP
Ecothon Grou2
Supported by
SolBridge International School of Business
David Inhyouk Koo(Professor)

2. SMALL SIZE,
GREAT SIGNIFICANCE
Small Businesses:
➢ Include 27.8 million businesses in the U.S.
➢ Represent 99.7% of all firms.
➢ Employ 49% of employees in the private sector.
➢ Hire 43% of high-tech employees.
➢ Represent 97% of all exporters.
➢ Obtain college degrees.
➢ Provide increased business ownership opportunities for veterans.

3. ENTREPRENEURIAL QUALITIES

4. UNDERSTANDING YOUR BUSINESS PARADIGM

5. THE CASE FOR SUSTAINABLE BUSINESS HAS COME OF AGE
5
Within the next 5 years
all investors will
measure a company's
impact on society,
government, and the
environment to
determine its worth”
UN SDGs are driving a global
commitment to sustainability
COVID-19 has spurred economic
upheaval and The Great Reset
Climate change is driving
corporate strategy
Inequality is driving
activism
Source: FTI Consulting (2021)

6. ESG IS A GLOBAL ISSUE
6
“acting in pursuit of
the public interest and
acting to maximize the
bottom line are
complementary”
SEC Chair
Allison Herren Lee
SFDR is being “enacted to
address the twin objectives of
increasing transparency of
sustainability-related
disclosures and to increase
comparability of disclosures
for end investors.”
ESMA
Issuers are required to
state whether they
have made disclosures
consistent with the
recommendations
of TCFD or explain if they
have not done so.
Financial Conduct Authority
“While the world
moves towards a single
standard, BlackRock
continues to endorse TCFD- and
SASB-aligned reporting.”
Larry Fink
As outlined, there is pressure on companies to enhance their ESG
management and disclosure from every region of the world.
Source: FTI Consulting (2021)

7. The Entrepreneur’s Opportunity “Sweet Spot”

8. FOCUS ON MANAGERIAL IMPLICATIONS
Sustainability
• Sustainable strategies: strategies that help MNCs make profits without harming envi
ronment and while ensuring company operates in a socially responsible manner with
regard to its stakeholders
• Good for shareholders, environment, local communities, employees, and customers

9. IS SUSTAINABILITY BAD FOR PROFITS?
Most customers prefer that the companies they buy products and services from engage in business-focused sustaina
bility practices. Eighty-three percent of the respondents in the Public Opinion Survey on Sustainability said that the
y think companies should try to accomplish their performance goals while also trying to improve society and the en
vironment. At the same time, multinational firms are overwhelmed about the varied stakeholder needs they face. A
nd, the Global Reporting Initiative, with its some 80 equally important sustainability indicators, is not giving compa
nies a clear set of sustainability proprieties. Meanwhile, sustainability executives in companies have not exactly be
en elevated to the importance levels of other top managers. If you had to pay more for a product, like gasoline f
or your automobile, how much more would you be willing to pay to buy from a highly rated sustainability-ori
ented company—5 percent, 10 percent, 25 percent, 40 percent?
Sources: Epstein-Reeves, J., “The Pain of Sustainability,” Forbes, January 18, 2012; “Consumers Expect Action from Companies on Sustainability,” Second
Annual Public Opinion Survey on Sustainability; Global Reporting Initiative.www.globalreporting.org.

10. Policy Recommendation
Implement SDG-based sustainable public procurement
Require all suppliers to disclose their contributions to the SDGs in order to
qualify as a government supplier.
o All country and local governments.
o Enabled by online tools.
• Implement a Registry of Suppliers database
and online supplier notification system
o Notify all pre-qualified suppliers when a tender
is issued that matches their UN Standard Products
and Services Code (UNSPSC).
o Include suppliers anywhere.
• Implement an online bid submission system
o Provides access to cross-jurisdictional markets.

11. Online SDG Self-Assessment Tools
Online SME-friendly supplier self-assessment tool on contributions to the SDGs
e.g. B Impact Assessment, SDG Action Manager, (SDG Ambition),
Enhanced 3-in-1 Sustainability Assessment Toolkit
• Consistent core questions; assesses contributions to all SDGs
• Leads to comparisons, and sharing / celebrating best practices
Online local / municipal self-assessment tool on progress on the SDGs
e.g. Enhanced IISD Tracking Progress Tool
• Consistent suite of questions; assesses local progress on all SDGs
• Can be added to UN Stats Open SDG Data Hub, SDG Tracker for a
bottom-up global view provided by consistent VLRs
• Enables comparisons of local / municipal / city / community progress,
sharing of best practices and celebration of leaders.

12. THE CHALLENGE FOR SCP
The key approaches for achieving SCP can be summarized by:
• Consuming less: the total expenditure for consumption is reduced,
eventually leading to less economic output.
• Making better consumption choices: the total level of consumption is
not reduced, but lifestyle changes can prompt changes in consumption
patterns.
• Producing and consuming more efficiently: consumption patterns are
essentially unchanged, but the products and services consumed are
produced with technologies that reduce the amount of resource use
and emissions per unit of consumption by e.g. extending the lifespan of
products and services.

13. THE THREE MOST IMPORTANT IMPACT AREAS:
FOOD, HOUSING AND MOBILITY

14. THREE MOST
IMPORTANT IMPACT
AREAS:
FOOD, HOUSING AND
MOBILITY

15. THREE MOST
IMPORTANT IMPACT
AREAS:
FOOD, HOUSING AND
MOBILITY

16. WHY IS SCP IMPORTANT IN ASIA-PACIFIC
The key approaches for achieving SCP in Asia
• Fundamental socio-economic factors that make SCP particularly important in the Asia-Pacific region.
• Increases in population, average incomes (and consumption rates), urbanisation (and infrastructure investment)
and a huge growth in production activities.
Household final consumption expenditure per capita
(constant 2000 US$)

17. WHY IS SCP IMPORTANT IN ASIA-PACIFIC
The key approaches for achieving SCP in Asia
• Fundamental socio-economic factors that make SCP particularly important in the Asia-Pacific region.
Domestic Material Consumption (DMC) The material transition in Asia and the Pacific

18. THE MEANINGFULNESS OF SCP
Developing a critical approach to sustainable consumption and production
• The challenge is how to de-couple the needs and aspirations from the effects on the environment.
• Sustainable practices in both consumption and production can permit the fulfilment of both needs and wants (i.e.
with the minimum resource depletion and with minimum pollution).

19. Thank you.