------for for #TurnItAround NOBEL PEACE PRIZE PR. MUHAMMAD YUNUS, EXCLUSIVE INTERVIEW WITHEXCLUSIVE INTERVIEW Marina PontiGlobal DirectorUN SDG Action Campaign bold alternatives all over the bold alternatives all over the individual that knowing world, actions can generate a positive ef to help and effect butterfly fectively tackle complex global challenges. In September 2020, we mobilised people to call on their leaders at the UN General Assembly to the Goals and achieve a just, from recovery sustainable green, the pandemic. Over 700 orga nisations and 45 million people 160 countries and 1,000 from cities took part. Social media posts, video messages and vir tual meetings tapped the ideas and influence of activists, busi groups youth musicians, nesses, and more. This kind of solidarity move ment lifts hopes and galvanises can we that shows It momentum. turnonly not new direction, in a but stay the course — past the 2030, to way the all pandemic, and beyond. seen as too costly or difficult. seen as too costly or difficult. it is understood as indis Today, pensable. UN SDG Action Campaign The has been inspiring support for TIONS - - 2020 s FINANCING SDG MEASURING AND — and aim high. Less than than Less high. aim — and them a year ago, this kind of transfor mative change might have been has made so obvious, the goals has made so obvious, the goals interrelated. and indivisible are will not end poverty (SDG 1), We without healthy societies (SDG 3), or decent work (SDG 8), all of which depend on careful of our environment stewardship (SDGs 13-15). Acknowledging these connec to act on us tions prepares - -

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EDITORIAL

SUSTAINABLE SOLU SUSTAINABLE BAROMETER people and planet A turning point for A turning point for COVID-19 AND SDG OPINION POLL : FRENCH, th PRODUCED BY: 2030 Agenda for Sustainable De lives and collectively. we have a roadmap Fortunately, the to move in the right direction: is possible and every individual is possible and every individual The choice is matters. action own our to make, both in ours In short, we are at a turning point at a turningIn short, we are point for people and our planet. This is transformation where moment a to a multitude of risks: diseases to a multitude of risks: diseases as well as deepening poverty, conflicts and natural disasters. marked by inequality and injus tice, and the destruction of our planet. This path will only make vulnerable, and more us more ried powerful messages about ried powerful messages about has It more. and issues these us that we must not reminded continue on a perilous path ship with the natural world. ship with the natural world. virus has car One microscopic demands a rethink and a reset of of a reset and rethink demands a everything we do. How we pro The objectives vide health care. of our economies. Our relation 4 EDITION COVID-19 has been a wake-up the world. It around call heard 2 OPINION POLL: THE FRENCH, COVID-19 & SDGs 2020 SUSTAINABLE SOLUTIONS BAROMETER SDGS IN THE LIGHT OF THE HEALTH CRISIS: A NEW

ithout a doubt, the coronavirus pandemic has brought us to a his- increase, while 51% foresee an increase in the consumption of non-imported lo- toric turning point. Seven billion people have suffered, at the same cal products and 42% believe that more and more people will suffer from hunger. W moment, an unprecedented health, economic and social crisis. This crisis has disrupted years of efforts and progress, particularly in the fight against Which solutions to increase international solidarity? poverty and access to health care. The butterfly effect of a virus that started in China and reached all continents in record time is a powerful reminder of the To financially support the developing countries most affected by the pande- deep interdependence between nations in this early 21st century. At the same mic, the French are in favour of ensuring that multinational companies ope- time, measures were taken restricting personal freedoms, with border closures, rating in these countries pay their fair share of taxes (75%), taxing financial lockdown policies, curfews, states of health emergency and the partial or total markets (56%), increasing development aid (45%), and cancelling the debt of closure of essential public services. the poorest countries (41%).

This period will undoubtedly have long-term effects, both on how we unders- WHICH MEASURES COULD BE TAKEN BY FRANCE TO SUPPORT THE DEVELOPING tand the world around us and on our own ways of life. It is still difficult to ima- COUNTRIES MOST AFFECTED BY THE PANDEMIC? gine their magnitude. Yet, it appears that these troubled times have driven many of our fellow citizens into a brutal state of “cognitive dissonance”, as recently INCREASING THE TAX CONTRIBUTION OF MULTINATIONALS OPERATING IN THE POOREST COUNTRIES analysed data seem to reveal. 75% 13% 6% 6%

Focus 2030 regularly scrutinises the opinions and attitudes of the French on INCREASING TAXES ON PRIVATE MARKET major issues of international solidarity through surveys in partnership with Uni- versity College London and the University of Birmingham. Without anticipating 56% 22% 16% 7% the future, our latest survey sought to capture how our fellow citizens perceived this unprecedented crisis in July 2020. INCREASING DEVELOPMENT ASSISTANCE 45% 30% 20% 6% The pandemic’s causes and consequences seem to confirm how strongly the issues addressed by the 17 Sustainable Development Goals interconnect: PROMOTE DEBT CANCELLATION FOR THE POOREST COUNTRIES would this be an opportunity to raise public awareness of these interdependen- cies? Will the pandemic lead to a resurgence in nationalism, which could be 41% 27% 26% 6% encouraged by the experience of distancing and border closure measures? Or Totally Neither favorable will it rather lead to increased solidarity towards other nations, at a time when Totally unfavorable I do not know nor unfavorable international cooperation appears as the only solution to slow down or to stop agree the spread of the virus? When it comes to responding more specifically to the health impact of the The 2042 adults representative of the French population questioned on these crisis, this support for a universalist approach stands out clearly. 76% of the issues by the YouGov institute, using the quota method, show strong support for French think that “tests, treatments and vaccines should be considered a 'glo- greater international solidarity. bal public good' similarly to water, air, the environment and culture” – in stark contrast with the “vaccine nationalism” we see emerging within some indus- 48% of respondents say that they feel more solidarity with people living in other trialised countries, showing a selfish “everyone for themselves” attitude. countries since the Covid-19 pandemic broke out. Oui et vous savez ce que c'est International solidarity and sustainable development Oui, mais vous ne savez pas réel- SINCE THE COVID-19 PANDEMIC, DO YOU FEEL MORE UNITED WITH THE SITUA- lement ce que c'est TION OF PEOPLE LIVING IN OTHER COUNTRIES? In that respect, this period seems to foster an emerging public awareness of our interdependence and of the need for greater international cooperation. One may wonder: has this critical period turned the French into involved SDG 8% 14% 8% activists? 14% Yes, entirely

12% Yes, to some extent 12% HAVE YOU EVER HEARD OR READ ABOUT THE SUSTAINABLE DEVELOPMENT 40%40% Not really GOALS OF THE UNITED NATIONS?

26%26% Not at all Oui, mais je ne sais pas vraiment de quoi il s'agit I do not know 9% 5% Yes, and I know what they are

Yes, but I do not know exactly 38% what they are

59% of them even feel that it is time for more international cooperation, so that No “everyone in the world can have access to a health care system similar to the 48% French one”. I do not know

When asked about the potential impact of the health crisis, 56% of the French believe that the number of people living below the poverty line in the world will 2020 SUSTAINABLE SOLUTIONS BAROMETER OPINION POLL: YOUTH AND CLIMATE CHANGE 3 MOMENTUM TOWARDS INTERNATIONAL SOLIDARITY?

However, it unfortunately seems clear that despite the current circums- primarily governments. For instance, the French presidency has only tances, the 2030 Agenda is still not on the political, public and media mentioned them 29 times since 2017 in official communications. This agenda. Only 9% of the French say they are well familiar with the SDGs, unfamiliarity probably also reflects the media’s lack of interest in taking a proportion similar to that reported in other countries such as the up a UN agenda which journalists clearly regard as too technical and United States, Germany or the United Kingdom. This unfamiliarity pro- remote. For example, barely if any French mainstream media covered bably reflects the lack of political support for SDGs by opinion leaders, the fifth anniversary of the 2030 Agenda, despite the UN's best efforts to communicate on this event during its latest General Assembly. INTERNATIONAL: HAVE YOU EVER HEARD OR READ ABOUT THE SUSTAINABLE DEVELOPMENT GOALS? Although the health crisis seems to have raised awareness in the gene- ral public, the French are hardly optimistic about a similar awareness 9% 38% 48% 5% France on the part of governments: they consider it unlikely that they will step up their efforts over the next decade to meet the commitments made1.

8% 17% 63% 12% United-States 1 The detailed results of the survey can be found here: https://focus2030.org/Les-Francais-es-les-ODD-et-la-reponse- a-la-crise-sanitaire-la-tentation-de-la.

Germany 7% 21% 63% 9% Fabrice Ferrier Executive Director 6% 16% 72% 6% United-Kingdom Focus 2030

Yes, but I do not know exactly Yes, and I know what they are what they are

No I do not know

POLL: 7 OUT OF 10 YOUTH COMMITTED TO CLIMATE CHANGE

hile youth engagement for climate has regularly made the ARE YOU FAMILIAR WITH THE FOLLOWING PROGRAMS?

headlines in recent years, what is the actual level of youth THE PARIS AGREEMENT engagement? Are they sufficiently informed? Are they wil- W 21% 47% 32% ling and able to act? Along with IFOP, the NGO ACTED conducted a sur- vey1 on this topic among French youth aged 15 to 35 during the summer of 2020 in order to better determine their knowledge, their commitments THE UN SDGs and their priorities.2 17% 45% 38%

As the climate strikes have recently demonstrated, the concern of THE IPCC young people for environmental and climate issues is evident. Indeed, 12% 24% 64% for 83% of the young people questioned in the survey, the effects of cli- mate change have already begun to be felt. Moreover, this phenomenon Yes, and I know what Yes, but I do not No is identified by a majority of young people (59%) as the most worrying they are know exactly health and environmental risk of our time, far ahead of air pollution or nuclear risk. Young people are aware of their role. More than 7 out of 10 declare Nevertheless, despite this interest, only 55% of 15-35 year olds feel themselves committed to the fight against climate change, individually well informed about climate change. Moreover, 20% think that climate or collectively. However, although willing to act at their own level, 41% change is at least partly linked to natural global warming, a sign that of the young people surveyed say they are poorly informed on how the level of knowledge on the subject is far from uniform. In addition, exactly to take action, and among those who do not engage, 36% say young people's knowledge of climate change action programs is only they want to act, but do not know how to do so. This indicates that fragmented: while 68% of young people have already heard about the much information and mobilisation work remains to be done with young Paris Climate Agreement and 62% have heard about the UN Sustai- people, but this effort will be facilitated by their already existing awa- nable Development Goals (SDGs), far fewer know exactly what they are reness of climate issues. (about 21% for the Paris Agreement and 17% for the SDGs). The IPCC (Intergovernmental Panel on Climate Change) is only known by 36% of 1 All the figures from this survey can be found at the following address: https://bit.ly/35Z66sq 2 This opinion poll was conducted within the framework of 1Planet4All, a project funded by the European Union, those surveyed. implemented in 12 European countries, and in which Convergences participates. Arielle Romenteau This mixed level of knowledge is coupled with a low level of trust in the Manager DEAR project - 1Planet4All institutions. For 51% of respondents, it is primarily citizens, who are the ACTED most capable of taking action against global warming. The State and companies only come in second and third position, ahead of internatio- nal organisations, the European Union, scientists and NGOs. 4 INTRODUCTION TO THE SPECIAL REPORT 2020 SUSTAINABLE SOLUTIONS BAROMETER SDGs, A ROADMAP FOR A RESILIENT POST-COVID WORLD?

he coronavirus crisis, arising a decade in the end of July to land a European recov- lines how a truly green and ambitious French from the 2030 Agenda deadline, is a ery plan of 750 billion euros, part of which will recovery plan could not only help fulfil the T stark reminder of how vulnerable and stem from the creation of a joint debt – unim- commitments of the Paris Agreement, but also interdependent the world's socio-economic aginable only a few months ago. France has create one million jobs in key sectors for the systems are, but also of the shared need to announced a 100-billion-euro recovery plan, a ecological transition. develop new models that are more sustaina- third of which will be allocated to ecological ble, resilient and supportive. This crisis calls recovery and another third to social recovery. This special report also addresses a number our values and our sense of togetherness into These are strong signals. But are they am- of other topics, such as education and train- question. At the same time, it opens up an ex- bitious enough to achieve the 2030 Agenda? ing in sustainable development, corporate citing world of possibilities for those already How can we collectively reach the SDGs? impact measurement using SDGs as a refer- working on designing and building tomorrow's ence framework, extra-financial accounting world. and triple accounting, SDG funding tools, etc. Through analyses, interviews with experts and The unprecedented crisis we are going THIS SPECIAL REPORT AIMS TO SHED outlines of concrete solutions, this special re- through has been a breaking point, giving us LIGHT ON THE SDGS AS A CORE ISSUE IN port aims to shed light on the SDGs as a core a unique opportunity to come up with truly PLANNING A POST-COVID WORLD. IT CAR- issue in planning a post-COVID world. It car- transformative solutions and to engage in a RIES A COLLECTIVE MESSAGE. RATHER ries a collective message. Rather than rein- profound transformation of our current soci- THAN REINVENTING THE WHEEL WITH venting the wheel with each crisis, we should etal models, based on the Sustainable Devel- EACH CRISIS, WE SHOULD INSTEAD USE instead use the SDGs wheel. It is time to seize opment Goals (SDGs) promoted by the UN. THE SDGs WHEEL. the opportunity created by the COVID-19 crisis to put the SDGs at the core of recovery plans, These past few months, many political an- in order to make tomorrow's societies more nouncements have been made all over the To answer this question, we have asked sus- sustainable, fairer, more supportive, but also world, showing an awareness of the large- tainable development experts to contribute resilient in the face of future shocks. Let's scale transformations to be undertaken. The to this Barometer's Special Report. On page hope that the solutions to this crisis, put to- United States have made over 3 trillion dollars 6 for instance, the UN research centre on gether, will help us achieve the SDGs by 2030. available to deal with the consequences of the sustainable development (UNSDSN) analyses health crisis, which should allow the economy how SDGs can be operationalised though six to stay afloat while helping the poorest house- major changes, so that they can be more eas- Baptiste Fassin Publications & communication officer holds. The European Union, at the end of a ily understood and used by private and public Convergences 5-day marathon summit in Brussels, managed actors. In another article, WWF France out- 2020 SUSTAINABLE SOLUTIONS BAROMETER SDGs AND SOCIETAL TRANSFORMATIONS 5 COVID-19: FROM CRISIS TO SYSTEMS CHANGE

risis is an opportunity to change for the better. At Catalyst 2030, as social entre- C preneurs, we have the innovative solu- tions needed to emerge from COVID-19 stron- ger and on-track to meet the 2030 Sustainable Development agenda. But only with the support of government and partners on the frontlines.

There is no sector, supply chain, or agenda un- touched by the COVID-19 global pandemic. As the world grapples with its consequences, we are remined to keep focus on the lived expe- rience of more than 7 billion people across 163 countries.

While the Sustainable Development Goals (SDGs) set an ambitious objective to end pover- ty, protecting the planet and improving people’s lives, goals are not expected to be met until 2082, according to the 2020 Social Progress Commitment, inclusion and busting of silos Finally, governments, organisations, philan- 1 Index . With COVID-19, the index pushes that thropists and others must transform how they end-date out another decade to 2092 – 60 years This report puts forth four recommendations finance social entrepreneurs. Our report identi- beyond the 2030 target date. This is supported for the path ahead and include immediate fies ways to adapt and align funding models for by the World Bank, which forecasts in June responses to challenges posed by the pande- investing in systems change approaches that 2020 the pandemic will shrink the global eco- mic, as well as structural changes to how the are scalable. nomy by 5-8%, potentially pushing a further 100 world’s decision-making and funding institu- million people below the international extreme tions work. First step towards building back better poverty line2. We suggest world leaders unreservedly commit The pandemic has made the task of achieving Driving collaborative systems change to changing systems for the better. Crises are the SDGs much harder, but it has reinforced often wasted because resources are mobilised the underlying logic behind creating the Global These analyses send a frightening message to to shore-up existing failed systems. We say Goals. Indeed, social determinants of health, social entrepreneurs and their supporters, but that now is the time to design and build new such as food insecurity, educational barriers, they don’t have to. There is reason for optimism systems that work better and more equitably. disability, poverty, unemployment, housing ins- and driving positive ideas and recommenda- tability, insecure land rights and reduced in- tions that transform this crisis into an historic Decision-making tables should be opened to comes, are each the subject of different SDGs. turning point. include social entrepreneurs. Their voices and the vulnerable communities they represent Our shared belief at Catalyst 2030 is that this At Catalyst 2030, we believe in optimism. As a must be heard in the rooms where decisions time really can be different. As an alliance of fast-growing global movement of social inno- are taken that concern them. social entrepreneurs and expert practitioners vators, we promote collaborative systems who work collaboratively with many of the change. This approach is an intentional and people worst served by existing systems, we THE PANDEMIC HAS MADE THE TASK OF thoughtful process designed to fundamentally believe it must be. and profoundly transform mindsets, power dy- ACHIEVING THE SDGs MUCH HARDER, BUT IT HAS REINFORCED THE UNDERLYING LO- namics, customs, rules and structures for the Our report does not have all the answers, but GIC BEHIND CREATING THE GLOBAL GOALS. better. it is the first step to the collaborative systems change needed to achieve the SDGs and start Launched at the World Economic Forum in building back better. Then we can begin to meet Cutting across institutional silos and nurturing Davos in January 2020, Catalyst 2030 is made the needs of the 7 billion people relying on us. up of leading networks of social entrepreneurs effective ecosystems of social innovation is including those from Ashoka, Echoing Green, essential. Silos work against synergies and 1 2020 Social Progress Index, 10 septembre 2020, https://www. suppress the multiplier effects that action in socialprogress.org/assets/downloads/resources/2020/2020-Global- the Schwab Foundation for Social Entrepre- SPI-Findings.pdf neurship and the Skoll Foundation. Collectively one area can have on other areas. We sug- 2 Projected poverty impacts of COVID-19 (coronavirus), 8 juin 2020, gest silo-busting is key to achieving the SDGs, https://www.worldbank.org/en/topic/poverty/brief/projected-po- their reach is close to one billion people. verty-impacts-of-COVID-19 which, by simultaneously pursuing 17 quite 3 Getting from crisis to systems change: Advice for leaders In the time of COVID, 8 juillet 2020, https://drive.google.com/file/d/1KxhFiy Together, we published the Getting from Cri- different goals, increase awareness of the 70wcNKCoQekzNIfOO6tDW9G7XN/view sis to Systems Change3 report to catalyse interconnectivities and synergies between collaborative systems change to achieve the each of them. Jeroo Billimoria & Kristine Pearson SDGs, while navigating the complexities that Founding members Catalyst 2030 COVID-19 has introduced. 6 SDGs AND SOCIETAL TRANSFORMATIONS 2020 SUSTAINABLE SOLUTIONS BAROMETER SIX SOCIETAL TRANSFORMATIONS TO IMPLEMENT IN ORDER TO REACH THE SDGs BY 2030

he Sustainable Develop- SIX MAJOR TRANSFORMATIONS AND THEIR CONNEXIONS WITH THE SDGS ment Goals (SDGs) and the T Paris Climate Agreement identify a number of targets, rele- vant globally and for each country by 2030 and 2050. Reaching these targets requires complementary actions taken by governments, civil society, as well as the scienti- fic and corporate world. However, the two agreements do not define the steps that should be taken to reach these 17 goals. Given the synergies existing between some of them, it would be unwise for a government or a company to design 17 separate strategies to achieve each one of the SDGs. A strategy for terrestrial biodiversity (SDG15), for instance, must consi- der issues related to agriculture, sustainable management of land These pillars were established mental impacts increase the like- meworks and strategies following and food habits (SDG2). The lack based on a thorough analysis lihood of future pandemics4. the COVID-19 crisis. of a common policy framework to of the synergies and trade-offs operationalise the SDGs could ac- between the 17 SDGs and 169 The six transformations provide Second, budgeting frameworks tually hinder their implementation. targets (Graph 1). This analytical a detailed framework for building need to be aligned with these me- framework can and should be post-COVID-19 recovery strategies. dium and long-term objectives in An operational framework to imple- adapted according to countries In order to implement all six trans- order to strengthen public invest- ment the SDGs and the Paris Climate and contexts. For instance, it formations, governments need to ment in the SDGs alongside pri- Agreement, based on six major has been used and adapted in a consider three main changes. vate funding. To help raise private transformations recent study to support the align- funds and direct them towards ment of EU strategies, including First, they need to focus on long- each transformation required by To make up for this lack of a com- the European Green Deal, with term planning with the support of the SDGs, governments can make mon operational framework, the the SDGs2. science, engineering and public use of corrective mechanisms UN Sustainable Development So- policies. Countries should consider – through taxes, royalties or tra- lutions Network (SDSN), together Implementing the societal trans- medium and long-term goals with dable permits – or wield their le- with a group of scientists, has out- formations in the face of the CO- time horizons of 10 to 30 years (i.e. gislative and regulatory powers. 1 lined six major transformations VID-19 crisis 2030 for the SDGs and 2050 for the Government-wide coordination is needed to achieve the SDGs and Paris Agreement), as well as deve- essential to ensure public action the Paris Climate Agreement: The COVID-19 crisis makes it even loping concrete trajectories and coherence. In this regard, there more critical to implement these action plans (pathways) to achieve is a need to mainstream sustai- 1. Education, Gender and Inequality transformations. If the SDGs had them, while ensuring regular moni- nable development issues within 2. Health, Wellbeing and Demography been implemented earlier, the toring of effective progress. certain key ministries (economy, 3. Energy, Decarbonation and Sus- countries’ ability to respond to industry, etc.)5. tainable Industry and control global health security Yet, since the 1990s, many OECD 4. Sustainable food, Land, Water issues, such as pandemics, would countries have lost their strategic Third, these major transforma- and Oceans have been much more effective. foresight and planning capaci- tions can only succeed if they 5. Sustainable Cities and Communities Indeed, the SDG3 (Good Health ties. In many countries, including enjoy societal legitimacy. Political 6. Digital Revolution for Sustai- and Well-Being) calls for streng- Western European countries, the processes must therefore involve nable Development thening all countries’ capacity COVID-19 crisis has unveiled deep citizens in decision-making with for “early warning, risk reduc- vulnerabilities in health systems a participatory approach and pro- These six transformations include tion and management of natio- due to a lack of preparation. mote transparency and accoun- more specific items aiming to sup- nal and global health risks”3. Yet tability. The citizen participation port government and corporate many countries, including rich The recent appointment in France processes recently implemented efforts to implement SDGs. Under- countries, have neglected this of a High Commissioner for Plan- in Finland, France with the Citizen lying these six transformations are goal. The climate emergency must ning and Foresight in August 2020 Convention for Climate and the the social justice principles that also push governments to speed shows a political will to more United Kingdom (among others) are aim to “leave no one behind” and to up the implementation of SDGs. effectively integrate long-term a step in the right direction. create a more “circular” economy. Deforestation and other environ- issues into government policy fra- 2020 SUSTAINABLE SOLUTIONS BAROMETER SDGs AND SOCIETAL TRANSFORMATIONS 7 The SDGs can pave the way to economic recovery. In the short term, COVID-19 has 1 Sachs, J.D., Schmidt-Traub, G., Mazzucato, M. et al. Six Transformations to achieve the Sustainable Develop- ment Goals. Nat Sustain 2, 805–814 (2019). https://doi.org/10.1038/s41893-019-0352-9 a devastating effect on the SDGs. The poorest populations are particularly affec- 2 SDSN & IEEP. 2019. The 2019 Europe Sustainable Development Report. Sustainable Development Solutions ted, due to sharp drops in income and a rising world hunger. But in the medium and Network and Institute for European Environmental Policy: Paris and Brussels. longer term, the COVID-19 crisis could be used as a “springboard” towards more 3 https://www.un.org/sustainabledevelopment/fr/health/ 4 https://news.un.org/en/story/2020/10/1076392 sustainable, inclusive and resilient economies. Efforts to eradicate the virus must go 5 For instance, Croatia has recently created a new ministry, the Ministry of Economy and Sustainable Develope- hand in hand with efforts aiming to strengthen multilateral institutions such as the ment, to fully integrate sustainable development within the country's economic issues. WHO, and with the implementation of international agreements such as the SDGs and the Paris Agreement. Civil society and the scientific community must support Guillaume Lafortune Director these efforts by providing solutions and solid data to implement these objectives; SDSN they should also take a strong stance on the need, feasibility and funding mecha- nisms that can be secured and on the affordability of these transformations. WHAT IS THE IMPACT OF COVID-19 ON THE GLOBAL ACHIEVEMENT OF THE SDGs?

he COVID-19 crisis is a short-term barrier to achieving the PROGRESS TOWARDS THE SDGs BY REGION SDGs in 2030. However, this does not mean that the internatio- nal community should reduce its ambitions. The SDGs remain SDG SCORE INDEX T 77,2 achievable and affordable. Significant progress has been made since 80 76,2 they were adopted in 2015. In the medium and long term, recovery plans 70,9 and international cooperation should help speed up the transition to 68,7 more sustainable, just and resilient societies. 70 70,4 68,6 67,1 In the short term, COVID-19 is a major barrier to achieving the SDGs 63,4 65,8 in 2030. An additional 150 million people worldwide could be pushed 60 61,3 into extreme poverty by 20211, and 130 million more face undernou- 53 rishment2. The crisis particularly affects the most vulnerable popula- 49,6 tions. While very short-term positive impacts were observed in terms 50 50 of greenhouse gas emissions during national lockdowns at the very 49,2 beginning of the health crisis, emissions have been back on the rise in most G20 countries since May 2020. 0 2010 2013 2016 2019 Eastern Europe OECD countries Latin America and Caribbean However, this crisis should not lead us to lower our ambitions. The and Central Asia SDGs are still theoretically achievable and affordable3. There are no South-East Asia MENA region technological or operational barriers to achieving them. Many studies Sub-saharan Africa Oceania suggest that goals such as energy decarbonisation, sustainable use The SDG Index uses 85 indicators from international organisations and civil society (including research centers) to mea- of land and food systems, education for all, disease control and public sure how far countries (from 1 to 100) still have to go to reach the SDGs. health are all achievable. The goals are also affordable. International Monetary Fund and SDSN assessments confirm that the SDGs can be and Production) and SDG 13 (Measures to fight Climate Change) . Like funded at a cost of around 2% of global gross domestic product – inclu- other rich countries, France generates negative externalities through ding around 0.4% in development aid to address the lack of resources trade, with negative effects on third countries. France ranks 158th out of in developing countries4. In addition, innovation fosters progress and 166 countries on the 2020 international index of negative externalities. reduces costs, in particular with the use of new technologies, increa- sing energy efficiency while minimising environmental damage. The SDGs provide a relevant framework to back up post-COVID-19 recovery plans and speed up the transformation of societies towards As the UN Sustainable Development Solutions Network (SDSN) points more sustainable, just and resilient models. Recent studies suggest that out5, significant progress has been made in most regions of the world greater efforts could be made to align recovery plans with SDGs and over the past decade in terms of sustainable development (see figure). green recovery, particularly in G20 countries where fossil fuel subsidies The SDG Index, published every year in June, uses 85 indicators pro- remain high. The crisis in multilateralism calls for more leadership, inclu- duced by international organisations and civil society organisations ding from the European Union and the G20, to support poor countries and (including research centres) to measure how far countries are from make both value chains and trade more sustainable. achieving SDGs. The methodology, published in scientific literature and subjected to a statistical audit by the European Commission, provides In 2021, a number of events should help contribute to a global recovery a global ranking of countries in terms of implementation of the SDGs. based on international cooperation and in line with the SDGs. These Regional (e.g. for Europe) or city-wide editions are also available. events include COP26 on climate in Scotland in November 2021, COP15 on biodiversity in China in May 2021, as well as the High Level Forum and We should not let the COVID-19 crisis undo the progress made this far. the UN General Assembly in July and September 2021.

The SDGs number 1 (No Poverty), 9 (Industry, Innovation and Infrastruc- 1 https://www.worldbank.org/en/news/press-release/2020/10/07/COVID-19-to-add-as-many-as-150-million-extreme- ture) and 11 (Sustainable Cities and Communities) have shown signifi- poor-by-2021 2 https://news.un.org/en/story/2020/07/1068261 cant progress since 2015. On the other hand, SDGs 2 (Zero Hunger) and 3 https://www.nature.com/articles/d41586-020-02373-7 15 (Life on Land) have stagnated or even regressed in most countries, 4 https://resources.unsdsn.org/sdg-costing-financing-for-low-income-developing-countries demonstrating the need to strengthen efforts to achieve these goals. Guillaume Lafortune France is performing at its worst on SDG 12 (Sustainable Consumption Director SDSN 8 A RECOVERY PLAN IN LINE WITH SDGs 2020 SUSTAINABLE SOLUTIONS BAROMETER WHAT IF TOMORROW'S WORLD TOOK THE SHAPE OF A DOUGHNUT?

t all begins in 2012, when economist Kate Raworth drew two concentric SDGS COMBINED WITH THE DONUT THEORY FROM circles (see graph opposite). The inner circle, which she called the social U.S. ECONOMIST KATE RAWORTH I foundation, corresponds to critical human needs (health, food, educa- tion, etc.), below which people are in a state of deprivation. Beyond the outer circle, called the ecological ceiling, are the planetary boundaries (climate change, biodiversity loss, etc.). Between these two circles is the “doughnut”: the space in which we can satisfy everyone’s needs, within the limits of the planet's regeneration1.

Surprising as it may seem, the challenge of the 21st century is to welcome the whole of humanity on a doughnut! This image may seem much simpler than the 17 goals of the 2030 Agenda, and yet the two approaches are strongly connected. During the elaboration of the 169 targets and 244 indicators of the Sustainable Development Goals (SDGs), the doughnut theory was one of the concepts used to frame the SDGs. The 2030 Agenda finally sets a deadline for achieving this “doughnut balance”.

12 of the SDGs help defining a sustainable social foundation; 4 of them aim to define the 12 global limits. The 17th SDG is about partnerships. It is the first lever to pull to enforce all the other SDGs that offer the solutions to welcome humanity in this safer, fairer and more sustainable space. For example: education is a social minimum on the SDG wheel, but it is also crucial for building a world of transition in which the 2030 Agenda can be a success.

Moving from Growth to Prosperity

Let's change our compass: progress shouldn’t mean reaching ever higher, but rather helping more and more people reach a state of balance. The pur-

suit of growth at any cost has created the conditions for the stalemate we Elyx @Fondation are currently witnessing. Changing our economic paradigm – which shapes the world we live in – could help us move from an era of growth to one of prosperity. THE FRENCH RECOVERY PLAN AND ITS IMPACT ON THE SDGS

How about reading the French recovery plan differently, in light of the SDGs?

This new decade of action starts with a historic recovery plan for France. This plan should certainly have a mitigating effect on the current crisis caused by the Covid-19 pandemic, but it must also lay the structu- ral foundations for a new economy. When the plan expires in 2022, there will only be 8 years left to implement the 2030 Agenda. This recovery plan is therefore the tool that should help bring France, but also its partners, into this fair, resilient and sustainable place. With this in mind, the Elyx Foundation has launched the Action BOX2, which analyses the recovery plan through the lens of the SDGs, to push for a change of direction.

1 Doughnut economis - Sevens ways to think like a 21st-Century Economist, Kate Raworth, 2018 2 https://elyx.net/actionbox/

@Fondation Elyx @Fondation Yacine Aït Kaci Chairman Nadine Bilong & Laure Le Rouzic Marketing & Communication Manager Adeline Pilon @Fondation Elyx @Fondation Executive Director Fondation Elyx 2020 SUSTAINABLE SOLUTIONS BAROMETER A RECOVERY PLAN IN LINE WITH SDGs 9 POST-COVID WORLD: WWF PUBLISHES A STUDY PUTTING EMPLOYMENT AT THE HEART OF A GREEN RECOVERY

he Covid-19 health crisis is rooted in the pressure exerted on the DISTRIBUTION OF JOBS SUPPORTED BY SECTOR IN 2022 natural world by human activities. It shed new light on the fragility IN THE "GREEN RECOVERY" SCENARIO of our societies and the limits of our production and consumption T 45 000 models. In a context where the effects of climate change and the loss of Energy renovation of buildings 278 000 biodiversity are becoming increasingly visible, this unprecedented crisis 116 000 offers a unique opportunity for France to make a lasting commitment to Renewable energies the ecological transition, in line with the Sustainable Development Goals (SDGs) promoted by the UN. 158 000 Rail and public transportation

The crisis has significant social and economic consequences, threaten- Low-carbon vehicles (electric cars and plug-in hybrids) ing hundreds of thousands of jobs. Yet a promising study, carried out by WWF France with the support of the consulting firm EY, shows that an 97 000 Bike (outside of tourism) economic recovery plan combining ecological transition, recovery and 191 000 job creation is possible. 126 000 Cycling tourism

The study highlights the positive impact for employment of a recovery tar- Organic agriculture geted at the key fields related to the ecological transition, and assesses the for ecological transition. To achieve this goal, WWF estimates that an additional investment needs for each of these fields. Three scenarios have been exam- annual investment of at least €14 billion will be needed over the period 2020- ined: a business-as-usual scenario, a second scenario based on the current 2023. environmental commitments made by France, and a third "green recovery" scenario based on more demanding environmental objectives. The supported jobs – over 80% of which are located outside the Paris region – would be widely distributed throughout the country and non-relocatable, with a NUMBER OF JOBS CREATED AND SUSTAINED (DIRECTS AND INDIRECTS) strong focus on the fields of thermal renovation, agriculture and tourism. BASED ON THE THREE SCENARIOS (IN THOUSANDS) The recovery led by these fields must also ensure a socially just transition in 1 838 order to reduce economic, health and environmental vulnerabilities. With that in mind, strategies to support and retrain employees in the fields most vulnerable 1 493 to job losses must imperatively be put in place.

1 012 Beyond sectoral support, our economy needs structural reform 863 In addition to measures to support these key sectors, the Green Recovery Plan 586 588 631 must be an opportunity to carry out structural reforms in our economy.

WWF makes several proposals in this regard. For example: using the Europe- an taxonomy in building the recovery plan to ensure budget is consistent with the environmental commitments made, in particular as part of the Paris Climate Agreement (2015); putting an end to expenses identified as environmentally 2019 2022 2030 unfriendly; strengthening the carbon price signal by setting an increasing floor 1st scenario 2nd scenario (based on 3rd Scenario price for carbon in Europe; including natural capital within accounting infor- (business as usual) French's existing envi- (Green recovery plan) mation systems by rethinking corporate extra-financial reporting and financial ronmental commitments) accounting.

Furthermore, while the French government has granted unprecedented finan- Five priority sectors to support more than one million jobs by 2022 cial support to companies with the aim of containing the economic crisis, the WWF is calling for the introduction of eco-conditionality when it comes to public In order to speed up the ecological transition while also supporting a number of aid to large companies. While support is necessary to safeguard economic ac- non-relocatable jobs, the study identifies five priority fields: thermal renovation tivities and employment, this taxpayer-funded aid should not be granted without of buildings, renewable energies, public transport (rail and urban public trans- compensation, especially in terms of ecological transition. With regard to the port), personal mobility (electric vehicles and bicycles), and organic farming. French draft budget bill for 2021, WWF is urging that all public aid granted to larger companies be made conditional on concrete climate commitments by In the thermal renovation of buildings sector, 278,000 jobs could be supported means of a greenhouse gas emissions balance sheet, a reduction trajectory as early as 2022, creating an added value of €38 billion per year. To achieve this, and an investment plan consistent with the French National Low-Carbon Strat- the additional investment needed is estimated at €4 billion per year from 2020 to egy and the Paris Agreement. This conditionality must absolutely be binding, i.e. 2023 and more than €11 billion per year from 2024 to 2030. In the electric and hy- provide a financial penalty for non-compliance by the companies in question. brid vehicle sector, a green transition stimulus would support 97 000 jobs in 2022 and 328,000 jobs by 2030, creating added value of €22 billion, while investment Margot Delafoulhouze in the renewable energy sector would support 191,000 jobs in 2022 and 256,000 Sustainable Cities & Territories Advocacy Manager jobs in 2030, creating added value of €24 billion per year. Juliette Kacprzak Advocacy and Campaigns Officer Philippine Viaud Overall, a green transition-oriented recovery would support more than one mil- Advocacy Assistant lion jobs by 2022, twice as much as a recovery plan with no ambitious support WWF France 10 A RECOVERY PLAN IN LINE WITH SDGs 2020 SUSTAINABLE SOLUTIONS BAROMETER FOCUS ON KEY SECTORS FOR A RECOVERY PLAN IN LINE WITH SDGS

FINANCING LOW-ENERGY BUILDINGS IN UKRAINE

he Nordic Environment Finance Corporation (NEFCO) is currently mana- NEFCO) T ging several funding initiatives supporting energy-efficiency of buildings and the green transition in Ukraine. NEFCO is supporting smaller municipalities across Ukraine by providing concessional loans combined with grant funding from the Nordic governments. On average, refurbishment of day-care centres, schools and health care facilities reduces energy consumption by 30-50% and

street lighting modernisation projects by 50-70%, leading to reduced CO2 emis- sions and essential cost savings for the municipalities. NEFCO has financed over 100 energy-efficiency projects in Ukraine related to renovations of public buildings and modernised street lighting. Nordic Environment Finance Corporation ( Environment Nordic @

In Ukraine, a day-care center renovated by NEFCO. This center now consumes approximately 40% less energy than before

RESPONSIBLE AND INNOVATIVE PUBLIC TRANSPORTATIONS IN BRAGA, PORTUGAL ominated for the Sustainable Transports Award 2020, the N city of Braga in Portugal recently added 6 new 100% electric buses to its public transport fleet. Between October 2018 and Au- gust 2019, these buses significantly reduced the city's CO2 emis- sions (-225 tons) and enabled a 67% reduction in operating costs, @Braga representing savings of €60,000.

EMANCIPATION THROUGH ACQUISITION OF A BICYCLE, EVERYWHERE IN THE WORLD orld Bicycle Relief is an NGO that provides bicycles specially W designed to offer access to mobility to students, health wor- kers and entrepreneurs in rural areas of developing countries. Since 2005, more than 530,000 bicycles have been provided in more than 10 countries. This initiative has reduced school absenteeism among young girls by 28%, improved the profitability of the entrepreneurs benefiting from this program, and increased the number of medical visits by 88% in the targeted areas. Reflecting this strong impact, World Bicycle Relief has been nominated for the SDG Action Awards 2020, as its action pro-

motes access to healthcare in rural communities. WorldBycicleRelief @

This man is a voluntary health care worker and is on a bicycle provided by World Bycicle Relief. Most villages in rural Zambia rely on voluntary health care workers as there are no doctors or nurses.

IN SUB-SAHARAN AFRICA, NURU ENERGY FACILITATES ACCESS TO RENEWABLE ENERGIES ver half of Sub-Saharan Africa, the 600M+ people who live below the O poverty line of $1.25 per day are still without electricity. Yet, access to sustainable energy underpins the ability to achieve most, if not all, of the other Sustainable Development Goals. To answer the demand for affordable and sus- tainable energy, Nuru Energy provides village-level access to energy, where a female village microentrepreneur is recruited, trained and equipped to pro- vide solar-based recharging services to her community. Community members, instead of owning their stand-alone and expensive solar systems, in turn re- ceive a small, portable Nuru LED light that they then recharge when they need, along with their mobile phones. To-date, in Rwanda and Burundi, Nuru Energy has set-up over 1,300 village entrepreneurs, who in turn provide solar-based NuruEnergy @ energy services to over 130,000 below poverty households. An entrepreneur from a village supported by Nuru Energy is here with children, all equipped with a Nuru Light lamp. After the sun has set, the portable, rechargeable Nuru Light, can be used in many ways to help women and their children perform crucial tasks both inside and outside their homes. 2020 SUSTAINABLE SOLUTIONS BAROMETER TERRITORIAL INNOVATIONS 11 SUSTAINABLE TERRITORIAL INNOVATIONS: A STRATEGIC LEVER FOR THE 2030 AGENDA

he 2030 Agenda, signed in 2015, is a testi- mony to the global and systemic scope of T contemporary societal challenges. At the heart of this agenda are the 17 Sustainable Deve- lopment Goals (SDGs). They cover all the develop- ment issues that affect our global ecosystem, such as poverty, hunger, health, education, work, energy, climate, inequality, etc. Among these issues, coope- ration and strategic alliances (SDG 17) have been included as a strategic lever for achieving the 2030 Agenda.

Historically, many initiatives have been structured around partnership practices and joint actions. In Canada, the local round tables, commonly called neighbourhood round tables, build up effective networks for joint action, channelling a large num- RESPONSIBLE AND INNOVATIVE PUBLIC TRANSPORTATIONS ber of issues related to the social development of IN BRAGA, PORTUGAL territories.1

Because they are essentially participatory in na- CLIC Bordeaux-Cartierville

ture, these round tables represent innovative plat- @ forms based on intersectoral cooperation. The aim Annual meeting of the 2013-2018 concerted action plan for social development "Bordeaux-Cartierville, quartier de tous les possibles", June 2017

of these structures is to strengthen local organisa- 3 tions’ capacity for concerted action and networking includes four orientations: services and resources, In the case of the Integrated Urban Revitalisation , of territorial stakeholders. This can include various transport, housing and greening, as well as toge- governance is organised through a local revitali- focus areas – youth, mental health, food security, therness. The second mandate consists of super- sation committee with about 30 CLIC-BC members, etc. – and various networks – communities, towns, vising the Integrated Urban Revitalisation (RUI) as well as an advisory committee in charge of mo- schools, etc. Thanks to this new form of public action, “Building together a neighbourhood in our nitoring territorial actions. The citizens are consi- management, territorial stakeholders are able to own image”. This action aims to improve residents’ dered to be pivotal players in this process. In these design and implement sustainable territorial inno- living conditions as well as the neighbourhood’s two committees, citizen participation is possible, vations. environment, in particular by fighting poverty and and even encouraged: an officer is responsible for social exclusion. promoting their participation and mobilisation. In Canada, an inspiring sustainable initiative for territorial innovation The CLIC-BC team has a complex and multi-faceted In this context, cooperation and strategic al- role to play in terms of consultation. In any innova- liances between the members of the CLIC-BC are tive territorial project, the stakeholders involved can an essential asset allowing for the emergence of The CLIC-BC (Local Council of Community Workers 4 of Bordeaux-Cartierville) was created in 1991 fol- carry out well-differentiated but often complemen- many sustainable territorial innovations . Due to lowing a symposium organised by various workers tary missions within several types of participatory their strategic and cooperative nature, these inno- from Bordeaux-Cartierville (Quebec, Canada), who structures, such as the board of directors, working vations promote effective partnerships between were reflecting upon the impoverishment of their committees and collective projects. local and regional authorities, the private sector, neighbourhood. This symposium, entitled “Two social economy structures and civil society. They worlds, two realities”, highlighted the fact that this are necessary for the global implementation of city was and still is a two-tier neighbourhood, where SDGs – on a local, regional, national and inter- DUE TO THEIR STRATEGIC AND COOPERATIVE national scale. To do so, they must be inclusive, extreme wealth rubs shoulders with extreme pover- NATURE, TERRITORIAL INNOVATIONS PRO- IN SUB-SAHARAN AFRICA, NURU ENERGY FACILITATES built on common principles and values, and place ty. In order to maximise the scope of their actions, MOTE EFFECTIVE PARTNERSHIPS BETWEEN ACCESS TO RENEWABLE ENERGIES some thirty participants decided to join together in people and our territories at the heart of their stra- LOCAL ACTORS AND ARE NECESSARY FOR THE tegies. a permanent consultation structure, the CLIC-BC, GLOBAL IMPLEMENTATION OF SDGs which would enable them to help each other and 1 Initiative from Montreal to support social and local development act more effectively on a local level. (2006), available at : http://www.ndg.ca/fr/qui-nous-sommes/bailleurs- de-fonds/252-funding-initiative-montrealaise. CLIC-BC's mission is therefore to encourage and 2 More information on CLIC-BC website: http://www.clic-bc.ca/clic/ The CLIC-BC's mission is to act for the future of 3 RUI (Revitalisation Urbaine Intégrée): http://www.clic-bc.ca/clic/rui/ promote public partnerships, public-private partner- 4 Suárez-Herrera, J. C., Bah, B. (2018). Enjeux organisationnels associés Bordeaux-Cartierville and it includes two core man- ships and partnerships with the civil society. The à la gouvernance en réseau au sein d’une table de concertation inter- dates2. The first is to coordinate the implementation concerted social development plan and the Inte- sectorielle et multi-réseaux, le CLIC de Bordeaux-Cartierville. Research report. Montréal : CRPSI, CIUSSS du Nord-de-l’Île-de-Montréal. of the neighbourhood's concerted social develop- grated Urban Revitalisation (RUI) action mentioned ment plan for the period 2019-2024: “Des possibles above are good examples of this. The CLIC-BC's role José Carlos Suárez Herrera aux réels” (“From possibilities to realities”). This as a facilitator and promoter of clearly identifiable Lecturer and Researcher plan, developed by more than 150 neighbourhood Kedge Business School territorial innovations is particularly valuable for the Yunus Lab for Social Business and Sustainable stakeholders (residents, members and partners) sustainable development of the neighbourhood. Development 12 PRIVATE SECTOR AND SDGs 2020 SUSTAINABLE SOLUTIONS BAROMETER SDGS, BEST BUSINESS PLAN FOR THE SUSTAINABILITY OF COMPANIES?

dopted 5 years ago, the 17 For companies, aligning its stra- VEOLIA'S RAISON D'ÊTRE: A SHARED PROGRESS APPROACH Sustainable Development tegy with the SDGs is surely the A Goals (SDGs) provide a best way for them to ensure their reference framework for solving sustainability: by demonstrating the world's environmental, social that they provide solutions to and economic challenges, while societal challenges, they justify leaving no one behind. Many com- their usefulness. As such, the panies have adopted them, whe- SDGs are a performance lever to ther as a framework for the major meet consumer expectations, as universal challenges they face, as well as a factor to attract future an analytical grid for structuring employees, who are more and their strategy, as a reference for more concerned with the social dialogue with their stakeholders and environmental impact of their or to help their business model career. That said, the company evolve towards greater sustainabi- must be careful not to fall into the lity. Thus, 81% of SBF120 (Société trap of "SDG washing".3 They need des Bourses Françaises) compa- to engage in a genuine dynamic nies report using SDGs1. Because of transformation, which requires they provide a framework that can them to review their practices be shared by all and a common and include a logic of sustainabi- language, the SDGs constitute a lity in their activities. tool that facilitates dialogue with all the company's stakeholders. Often perceived as part of the problem, particularly by some Beyond such dialogue, the funda- NGOs, companies can, with the mental aspect of the SDGs is the SDGs, be part of the solution, profound transformation of econo- especially if they engage in new mic and business models they call alliances with their stakeholders formance. This balance between priority as revenue growth or for. They contribute to modeling for the implementation of more all aspects of impact leads to a the profitability of activities. In companies’ responsible strate- sober and more supportive mea- plural performance for the benefit total, the Impact 2023 strategic gies, products or services to move sures. By sharing the common of all stakeholders. And this plu- plan sets out 18 objectives for towards greater sustainability. framework of Agenda 2030, all the ral performance has become the progress by 2023, which will be In its survey "SDGs and compa- stakeholders have the same goal: cornerstone of our choices and implemented through the Impact nies", the Global Compact France to collectively face the world's trade-offs to be made. 2023 strategic plan (see diagram). reports that "20% of [responding challenges. The transformation of companies] wish to move forward production systems will be faster The SDGs have been a source Finally, the SDGs challenge the on more strategic aspects inclu- thanks to these partnerships. of inspiration for Veolia in the company on its ability to forge ding the definition of their "raison construction of its "raison d'être". new collaborations: it is through d'être" (company's purpose) in line The example of Veolia They were detrimental in setting this collective work and by relying with SDGs and 37% also declare concrete objectives and in ali- on our ability to innovate that we that they have already redefined Veolia published its "raison d'être" gning our "raison d'être" with the will be able to meet the chal- their business strategy or plan to in 2019, after a year-long colla- 2030 Agenda. Ultimately, it has lenges of resource conservation do so".2 borative process involving all its allowed us to properly define our and the major societal issues. stakeholders: management, board mission: "Resourcing the world" by exercising our environmental 1 Baromètre ODD- BL Evolution - Septembre The contribution of the private of directors, employee represen- 2020 services business. 2 http://www.globalcompact-france.org/docu- sector to a sustainable world is tative bodies, employees, but also ments/barometre-odd-et-entreprises-fran- essential, even more so in the cur- NGOs and citizens. More than just caises-edition-2020-131 - p. 14 Plural performance indicators 3 For example, by simply displaying its logos in rent context of the Covid-19 crisis. a text, Veolia's raison d'être is in- its publications, without really questioning its Because they enable all societal, tended to set in motion a broader have been constructed to help impact on society environmental and social dyna- vision of the company, affirming meet these challenges. Fighting mics and their interdependencies its commitment for and with all its climate change, preserving bio- Armelle Perrin-Guinot diversity, strengthening the diver- Sustainable Development to be taken into account, the SDGs stakeholders. This commitment Promotion Manager offer the most suitable framework is embodied in a balance within sity and training of employees Veolia for finding solutions, "the best the company's performance, by within the company, promoting business plan in the world" accor- placing the same level of atten- access to and maintenance of ding to Paul Polman, former CEO tion and demands on economic, essential services, creating jobs of Unilever and vice-president of financial, commercial, social, and wealth in the regions, deve- Global Compact. societal and environmental per- loping innovative solutions: these challenges are just as much a 2020 SUSTAINABLE SOLUTIONS BAROMETER PRIVATE SECTOR AND SDGs 13 MATTHIEU BELLOIR (CSR DIRECTOR OF THE ORANGE GROUP): "SDGs ARE A FORMIDABLE READING GRID, WHICH IS BECOMING A NEW EVALUATIVE CRITERION FOR INVESTORS"

n 2020, Orange formalised its contribution to the Sustainable Development Goals by identifying the SDGs on which its impact is most significant. I Matthieu Belloir, Group CSR Director, discusses this commitment for the Barometer.

footprint and as a digital player, we and benefit as many people as had a role to play in reaching these possible. WE HAVE DEVELOPED CLOSE goals. COOPERATION WITH OUR We are committed to digital equa- ENTIRE ECOSYSTEM: GO- What approach did you take? lity, as we know that digital users VERNMENTS, DEVELOPMENT need the right skills and tools AGENCIES, NGOS, SOCIAL EN- Above all, we wanted this to be in addition to an access to the TREPRENEURS, SMES... done in the spirit of the SDGs: network. Our commitment to SDG with a collective and holistic 10 (Reduce inequality) also ap- approach, as well as a robust plies within Orange, as we work Of course, it would be impossible methodology that allows us to de- to promote diversity, equal oppor- for us to do this alone. Therefore, monstrate our impact and monitor tunities and gender equality in the we have developed close coope- it over time. Over thirty people workplace. ration with our entire ecosystem: with very diverse profiles, repre- governments, development agen- sentative of our different lines of cies, NGOs, social entrepreneurs, work, businesses and geographic SMEs... SDG 17 (Partnerships) is areas, actively joined forces on FOR EXAMPLE, 100% OF @Orange indeed the key to a truly sustai- this project. ORANGE-BRANDED PRODUCTS WILL BE PRODUCED THROUGH nable development. Why did you chose the SDGs as a By analysing the data from our AN ECO-DESIGN APPROACH BY framework to measure your action? What are the next steps? reporting process using the SDG 2025. Action Manager tool designed by Corporate social responsibility SDGs also make a wonderful uni- the Global Compact, as well as (CSR) has taken on a new dimen- versal interpretative framework. the projects presented by several Our second major responsibility sion. Corporate stakeholders – From now on, we will report on our subsidiaries and entities of the is about the fight against climate customers, employees, suppliers, progress by including them into our Group, we were able to unders- change. In order to become a net etc. – are getting more demanding extra-financial reporting. It is very tand the current impact of our zero carbon company by 2040, every day in terms of their societal important to use the SDGs when activity on SDG targets. We also we have set objectives regar- and environmental concerns. responding to our stakeholders, as relied on external resources, ding SDGs number 12 (Ensure NGOs, local authorities and inter- especially the article “Six trans- sustainable consumption and Orange has taken these new ex- national organisations all refer formations to achieve the SDGs”2, production patterns) and 13 (Take pectations into account by adop- to them. This is becoming a new which identifies digital technolo- urgent action to combat climate ting the following purpose, which evaluative criterion for investors, gies as one of the key levers to change). We continue to strive is now stated in its articles of in- extra-financial rating agencies, reach the 17 SDGs. to improve our energy efficiency, corporation: “As a trusted partner, to increase our use of renewable among others. Orange gives everyone access to a Even though we are contributing energies and to develop the cir- responsible digital world”. Finally, I believe that this will to all the SDGs, we identified the cular economy in our activities. enable us to identify future oppor- 6 objectives on which our impact This means we are accountable tunities for the development and is strongest: for these, we wish For example, 100% of Orange- to all of our stakeholders, with implementation of solutions to to monitor our contribution over branded products will be pro- a commitment that has no time meet the challenges of sustaina- time. duced through an eco-design limit. Meanwhile, we have also approach by 2025. bility. based our strategic plan on two major commitments: to promote Which are these SDGs and how do 1 Reference system created by the network of you contribute to them practically? All this we must do in accordance companies “Net Zero Initiative”. For a compa- digital equality and to fight climate with SDG 16 – which promotes ny to be net zero carbon, it must have reduced change, with a goal of being a net greenhouse gas emissions as much as possible human rights – in line with our (scopes 1, 2 and 3); help reducing emissions out- 1 We develop telecommunications zero carbon company by 2040 . side its own perimeter; and contribute to carbon networks and invest in research. ethical principles and in accor- sequestration for an amount equivalent to its re- In line with SDG 9 (Build resilient dance with fundamental rights sidual emissions. Taking the SDGs into account was and freedoms. We also have a entirely consistent with those infrastructure, promote inclusive 2 Sachs, J.D., Schmidt-Traub, G., Mazzucato, M. and sustainable industrialisation particular role to play in ensuring et al. Six Transformations to achieve the Sustain- commitments. As an international freedom of expression and pro- able Development Goals. Nat Sustain 2, 805–814 company with a strong economic and foster innovation), we ensure (2019). https://doi.org/10.1038/s41893-019-0352-9 that these services are resilient tection of personal data. 14 EDUCATION & SDGs 2020 SUSTAINABLE SOLUTIONS BAROMETER HOW TO TEACH THE NEW GENERATIONS TO SUSTAINABLE DEVELOPMENT ISSUES ?

aunched in September 2018, the French “Ecological Awak- L ening” collective (Pour un réveil écologique) has drawn much attention, collecting to date more than 32,275 signatures from students in over 400 higher education institutions in France.

This sends a clear message to em- ployers. The younger generation wants to get involved and to commit to organisations working towards ecological and social transition: re- turning to business as usual is no

longer an option. @YouthForClimate

But this call for action also aims to challenging. Faced with these issues, its other stakeholders. It would not For the past 17 years, HEC has been “awaken” schools and universities, organisations have no choice but to be able to hold its own in the face of offering a Master's degree in “Sus- urging them to adapt and reshape deeply reinvent and transform them- international competition and would tainability and Social Innovation”, at- their teaching content in a structural selves. gradually be excluded from the main tended by around sixty students of all way, in order to better support stu- international rankings. profiles and nationalities every year. dents in this transition and prepare In this regard, higher education is be- This programme is designed for stu- them for the complex world they will coming a key player in the transition. These institutions must refrain from dents who aspire to become actors of be facing. By training future talents, identifying resting on their laurels. Rather, they change. Whatever future position or key skills and new professions in the must work in synergy, and reinvent line of business they will chose, grad- The signers are quite rightly uncom- field of ecological and social transition, themselves whenever necessary in uates will have developed the critical promising on the issue, wishing to as well as offering support to organisa- order to give each student the oppor- thinking as well as the technical and pursue a career consistent with their tions in their transformation process, tunity to find their proper place and to leadership skills needed to innovate, personal values. education is a wonderful catalyst and invest in a career consistent with their redesign and shape the sustainable an essential gateway to a more resil- values and aspirations. businesses and inclusive economies On the one hand, we witness a deep ient and sustainable world. of tomorrow. change in the aspirations of students. For these reasons, HEC Paris, through On the other, we see organisations Higher education must therefore have its Society and Organizations Institute, Finally, no progress will be made in (companies, start-ups, NGOs, local two main ambitions. First, the ambi- has started the process of integrat- isolation. The U7 Alliance, in which authorities, etc.) which have under- tion to understand and analyse how ing climate and inclusion issues into HEC is involved, is modelled after gone deep change in recent years. today's overwhelming environmental its teaching methods. At the same the G7 and aims to bring together They had to do so more than ever and social challenges are revolution- time, the school is working towards the world's leading universities so before, in the face of increasing ising and transforming organisations. a sustainable campus, envisioned as they can work on five major global demands from their stakeholders Second, the ambition to act by shaping an ecosystem of experimentation re- challenges: the key role of higher (customers, citizens, etc.) and from new and innovative models putting flecting the courses on offer. All of the education institutions in a globalised students who now carefully choose these issues at the heart of organisa- school's students are also taking part world; climate and energy transition; the companies in which they want to tions' strategies. in the “Climate Frescoes” workshop at inequalities and the importance of work. Added to this are the negative the beginning of the new school year, higher education to counter the po- impacts that climate change can have Any school or university neglecting promoted by the NGO Rentrée Climat, larisation of our societies; the impact on these very organisations, making these subjects would no longer be which aims to train tens of thousands of technological innovation; and civic risk management more complex and attractive, neither to students nor to of students in climate issues. engagement from community level to global level.

ISAAC SMADJA'S TESTIMONY, STUDENT AT HEC There is a long road ahead and enor- mous scope for progress. But given Today, sustainable development and social issues beyond ourselves, allows us to bring together people the urgency of the situation, it seems are at the heart of our concerns. Choosing this field who share the same ambitions and are committed to that the stars have aligned at last: of study means not only understanding the effects of the long term, so the positive impacts of the organisa- now is the time to speed up the eco- climate change, but above all committing oneself to tions they work for, whether environmental or societal, logical and social transition and reach meaningful tasks and issues. The challenge we face can be measured and promoted – just like profits the SDGs. cannot be taken up by one person alone; it requires mutual help and collaborative efforts. As Jean Bodin Isaac Smadja Déborah Keraghel famously wrote, “The real wealth lies in the people”. Graduate student from the Sustainability and Social Executive Director Sustainability and Social I believe this phrase takes on its full meaning today. Innovation Master Innovation Master Degree Commitment to these objectives, which go way HEC PARIS (year 2019-2020) HEC Paris 2020 SUSTAINABLE SOLUTIONS BAROMETER INTERNATIONAL DEVELOPMENT & SDGs 15 TOWARDS AN AMBITIOUS INTERNATIONAL DEVELOPMENT POLICY, IN LINE WITH THE SDGs n light of the health and social crisis that the planet is going through, public devel- I opment aid is becoming an even more crucial lever for sustainable development. In 2019, this aid alone accounted for more than two-thirds of external funding for the least developed countries (33 billion USD in to- tal1). Yet, UNSDSN estimates that an amount of 4,320 billion euros in planned expenditure would be needed over the time period 2019- 2030 to achieve the 17 United Nations Sus- tainable Development Goals (SDGs) in the 59 countries with the lowest income in the world2. Achieving the SDGs worldwide by 2030 therefore requires ambitious international de- velopment agenda.

However, there are huge gaps in funding. A recent study by Oxfam3 shows that over the @Dreamstyme last 50 years, 5 trillion euros pledged to devel- oping countries have never reached their des- That being said, there is a severe lack of am- meets the interconnected challenges of resur- tination. In failing to respect the commitment bition for the time being. The world's largest gent poverty, extreme inequality – including made at the United Nations in 1970 to devote economies have only agreed to grant develop- gender inequality – and climate emergency? In 0.7% of its gross national income to official ing countries a meager suspension of debt re- this context, the SDGs offer a key framework, development assistance4, France alone has payment compared to the need of these coun- as they provide a set of indicators allowing created a 200-billion-euro shortfall. Such an tries8. Yet, had the effort been more ambitious, both to observe and to assess the impact of astronomical sum could cover the repayment it could have had a strong positive impact: we international aid. Consequently, and consistent of all West Africa's foreign debt while also know for instance that 46 developing coun- with this international framework, there is an funding the full vaccination of one and a half tries were spending four times more on debt urgent need to stop exploiting aid policies to billion children globally. repayment than on health services during the serve the interests of Northern countries at post-crisis period9. the expense of the most vulnerable popula- AID PROMISED VS AID PROVIDED YEARLY, tions. For example, 56% of contracts awarded 1960 - 2017 (IN MILLIONS OF DOLLARS) by French bilateral aid operators in 2016 were 350 000 awarded to French companies. On the contrary, 300 000 THE CURRENT PANDEMIC BRINGS UP QUES- it is necessary to ensure that the fight against 250 000 TIONS ABOUT THE FUTURE OF AID. HOW CAN inequality, poverty, all forms of discrimination 200 000 IT BE MADE MORE EFFECTIVE? IN THIS CON- and climate change constitute a single com- 150 000 TEXT, THE SDGs OFFER A KEY FRAMEWORK, AS pass (taking into account the interdependence 100 000 THEY PROVIDE A SET OF INDICATORS ALLOW- of SDGs 1, 5, 10 and 13); the majority of invest- ING BOTH TO OBSERVE AND TO ASSESS THE 50 000 ments should therefore be directed towards IMPACT OF INTERNATIONAL AID. basic social services (SDGs 2,3,4,6), which are 1960 1975 1990 2002 2017 a prerequisite to fully achieve these goals.

1 http://www.oecd.org/fr/cad/financementpourledeveloppement- Aid promised Aid Until now, France has only come up with one (0,7% of GNI) durable/statistiques-financement-developpement/APD-2019-de- provided (ODA) initiative (called Covid-19 – Santé en commun) tail-resume.pdf 2 SDG Costing & Financing for Low-income Developing Countries, to respond to the consequences of the pan- UNSDSN, september 2019 The health and social crisis we are going demic. With a budget of 1.2 billion euros, its aim 3 Un demi-siècle de promesses non tenues, Oxfam International, Octobre 2020 through stresses even further how urgently was to support the fight against the virus in Af- 4 UN General Assembly Resolution 2626 (XXV), 24 October1970 this funding is needed. Without drastic meas- 5 A. Sumner, C. Hoy et E. Ortiz-Juarez (2020), Estimates of the Im- rica. This response, however, was disconnect- pact of COVID-19 on Global Poverty. Working document UNU-WID- ures to support the economies of developing ed from actual needs, as it was mainly a re- ER. UNU-WIDER : Helsinki. https://doi.org/10.35188/UNU-WID- ER/2020/800-9 countries, the crisis could leave between 200 orientation of existing aid budgets rather than 6 Ibid. and 500 million people into poverty5, leading additional funding. More problematic, most of 7 https://resources.unsdsn.org/sdg-costing-financing-for-low-in- come-developing-countries to a decade's setback in the fight against the money (more than 80%) is being delivered 8 L’Initiative de suspension du service de la dette du G20 : écoper le poverty. In some cases, this setback is even in the form of loans, an inappropriate solution Titanic avec un seau ?, Eurodad, Octobre 2020 estimated to turn back the clock 30 years6, since these loans are added to the countries’ 9 Le prix de la dignité , Oxfam International, Avril 2020 which would make it realistically impossible already huge debts. Louis-Nicolas Jandeaux to achieve the SDGs by 2030. According to a Advocacy officer for Official Development 2019 IMF study however, the SDGs could be Ambitious financial aid is therefore a prereq- Assistance, Debt in the South Oxfam France financed at a cost of about 2% of world gross uisite for achieving the SDGs globally. Howev- domestic product, including 0.4% in develop- er, the current pandemic brings up questions ment assistance to make up for the lack of re- about the future of aid. How can it be made sources in poor countries7. more effective? How can we ensure that it 16 SDGs AND FINANCING 2020 SUSTAINABLE SOLUTIONS BAROMETER COVID-19 AND THE FINANCING FOR DEVELOPMENT TRIAD1

he COVID-19 pandemic has morphed into a triple crisis – health, humanitar- T ian and economic – with a devastating impact on all aspects of our lives.

With over 58 million known cases and close to 1.4 million deaths worldwide as of late Novem- ber 20202, it is first and foremost a global health crisis. But the measures taken to limit the spread of the virus also resulted in the worst economic crisis in living memory, with the International Monetary Fund (IMF), the Organisation for Eco- nomic Co-operation and Development (OECD) and the World Bank expecting global GDP to contract by 4.4%, 4.5% and 5.2% respectively3. An estimated 495 million full-time equivalent jobs were lost by September4 and global trade fell by 9.2% in the first half of 2020 alone5. More dramatically still, the pandemic will double the number of people facing food shortages to 265 million, resulting in widespread famines unless 6

swift action is taken . @ Chrisgadbury

Developed economies responded swiftly to the pected to reach an eye-popping US$277 trillion financing frameworks (INFFs) as a means of crises by unleashing a fiscal response of almost by the end of 2020 – a further increase on the identifying sources of finance to both address US$10 trillion, while low-income developing US$255 trillion reached in 201910. Today, the in- the current crisis and invest in the SDGs. Sup- economies mobilised just US$45 billion7. De- ternational community largely recognises that a port is also being provided to ensure that pub- spite this, the spirit of global solidarity expect- global debt crisis could be looming, echoing a lic and private finance is aligned with the SDGs ed from the Global North has yet to materialise. similar warning by the United Nations in April. through the design of norms, standards and The G20’s Debt Service Suspension Initiative certification systems and disclosure frame- provided much-needed but temporary relief, These problems were further compounded by works, as well as the alignment of national even with a six-month extension, and recently a major leakage in the form of illicit financial budgets with the SDGs. agreed on a debt treatment framework, explic- flows. As an example, an estimated US$88.6 itly recognising that a moratorium would not be billion – equivalent to 3.7% of Africa’s GDP – Dialogue – under the auspices of the UN and be- sufficient. The IMF also announced its intention leaves the continent annually as illicit capital yond – has been instrumental in expanding the to triple its concessional finance in 2020. How- flight. By comparison, between 2013 and 2015 global response beyond usual calls for financial ever, many vulnerable middle-income countries Africa received an annual US$48 billion in ODA assistance. The spotlight is now firmly placed remain ineligible to some of this assistance and and US$54 billion in FDI11. not only on the symptom but also its causes, persistent calls for even just an increase in offi- paving the way both for resolving the current cial development assistance (ODA) levels have The solution to this crisis may therefore lie in a crisis and building a more resilient, inclusive yet to be answered. comprehensive approach addressing all three and sustainable future, with the SDGs as a com- elements of the triad. In May 2020, the United mon compass and consistent with the three Upon closer inspection, however, international Nations embarked on an informal and inclusive zeros that Convergences has long advocated – financial assistance might only be a partial an- discussion which resulted in a comprehensive Zero exclusion, Zero carbon and Zero poverty. swer to a larger, more complex and longer-term menu of policy options, many of which garnered triad of underlying problems that are finance, 1 The views presented in this paper do not necessarily reflect those of the support at the highest political level at a summit United Nations. debt and illicit financial flows. in September 2020. 2 https://COVID19.who.int/ 3 https://www.imf.org/external/datamapper/NGDP_RPCH@WEO/OEMDC/ ADVEC/WEOWORLD, http://www.oecd.org/economic-outlook/ and https:// From a finance perspective, shortly after the Together, these options offer a highly promising www.worldbank.org/en/publication/global-economic-prospects 4 https://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/docu- onset of the pandemic, external flows such approach to addressing the triad at two levels. ments/briefingnote/wcms_755910.pdf as foreign direct investments and remittances At international level, public finance could be 5 https://www.wto.org/english/news_e/pres20_e/pr858_e.htm 8 6 https://www.wfp.org/news/COVID-19-will-double-number-people-facing- fell by up to 40% and 20% respectively just as used among other purposes to kick-start pri- food-crises-unless-swift-action-taken supply and demand for goods and services both vate finance again. The international commu- 7 https://www.brookings.edu/wp-content/uploads/2020/08/Development-Fi- nancing-Options_Final.pdf collapsed. This caused revenues to plunge and nity should also take effective steps to provide 8 https://unctad.org/webflyer/world-investment-report-2020 fiscal space to be severely squeezed at a time all vulnerable countries with additional debt 9 https://developmentfinance.un.org/fsdr2020 10 https://www.iif.com/ when public expenditures for health, unemploy- relief while strengthening the international ar- 11 https://unctad.org/system/files/official-document/aldcafrica2020_en.pdf ment and other social needs were skyrocketing. chitecture on debt to help prevent further debt Mahmoud Mohieldin crises; and convene Member States to put an Special Envoy of the UN Secretary-General on Fi- Many developing economies might still have immediate end to illicit financial flows for once nancing the 2030 Agenda for Sustainable had the space to address their needs had they and for all. Development & not faced exceptionally high debt levels. By the Benjamin Singer Economic Affairs Officer end of 2019, a staggering 44% of developing At national level, the United Nations and key United Nations economies were either at high risk of or already partners, including the IMF and the World in debt distress9. Global debt levels are ex- Bank, are helping design integrated national 2020 SUSTAINABLE SOLUTIONS BAROMETER IMPACT MEASUREMENT 17 SUSTAINABILITY: TOWARDS A MUCH-NEEDED ACCOUNTING REVOLUTION?

he integration of socio- ted extra-financial reporting sys- Issue 3: Natural entities: accoun- Issue 5: Environmental objectives environmental issues into tems is the French “Déclaration ting assets or liabilities (debts) Another issue regards the linking of T corporate accounting de Performance Extra-Financière” In relation to the second issue, accounting information to certain systems is increasingly identified (Extra Financial Performance Sta- should natural entities and environmental objectives, Sustai- as being strategic and critical1: tement)2. The DPEF is an important human beings be classified nable Development Goals or plane- without such an integration, cor- step forward in extra-financial as assets3, i.e. as controllable tary boundaries. The aim is thus to porate economic actors cannot reporting, although it still reflects sources of shareholder value, provide standards and benchmarks make appropriate decisions. a general lack of integration or as liabilities4, i.e. as enti- that can be used to understand and between financial and non-finan- ties towards which a company redirect non-financial information. Indeed, accounting constitutes cial reporting. would have certain obligations At the European level, Regulation the structural language of corpo- – namely a duty to preserve/pro- 2020/852 (known as the EU Taxo- rations; and yet, except for some Consequently, if this divide is to tect? More specifically, should nomy for Sustainable Activities, to minor advances since the 1990s, be avoided, following the logic of nature and human beings be re- which large companies will gra- accounting remains blind to so- the classic corporate world, there presented as service providers dually be subject) tends to set such cio-environmental issues. is a clear need to develop directly ensuring organisational produc- objectives. integrated accounting systems, tivity gains (majority view), or as Moreover, accounting systems i.e. where financial and non-fi- a set of entities with an end in Issue 6: Formal quality of extra- cannot be reduced to simple cal- nancial data are fully connected, themselves, which leads to new financial information culation techniques in the mere and to subsequently restructure forms of accountability? Just as financial accounting interest of shareholders. The in- the entire corporate world from information must be based on tegration of sustainability issues the ground up. However, it is Issue 4: Values or costs? characteristics that make the into accounting raises a number quite clear that this integration is The core question can be summa- production of accounting figures of questions. What systems and far from being achieved, even by rised as follows: to connect the credible and auditable, non-finan- worldviews should a “sustai- means of so-called “integrated” financial and the extra-financial cial data must also be questioned nable” corporation or economy reporting models. aspects, should nature be valued as to how they are constructed.6 be following? What values should on the basis of what it would be 1 Cf. EU High Level Expert Group on Sustai- be involved and how should they Issue 2: “Outside-in” approach worth as a set of assets in a dedi- nable Finance. (2018). Financing a sustainable be constructed? Who are the key versus “Inside-out” approach cated market – i.e. on the basis European economy & Notat, N., & Senard, J.-D. (2018). L’entreprise, objet d’intérêt collectif players of such corporations and There is no consensus on the of an extended market value 2 Document required to be attached to the finan- economies (and who should be “direction” and purpose of the estimate, internalising 'externali- cial statements of "large" companies pursuant to 5 Article 225 of the French Commercial Code and in charge of their governance)? inclusion of environmental issues. ties' ? Or should the cost of spe- the transposition of Directive 2014/95/EU (the What liability regimes should Should extra-financial accounting cific efforts to preserve natural so-called Non-Financial Reporting Disclosure (NFRD) Directive, currently under review) organise these sustainability focus solely on the positive impact environments be integrated into 3 Capital in the economic sense issues? (business opportunities) and ne- accounting systems? 4 Capital in the classic accounting sense 5 i.e. the values that should be – but are not cur- gative impact (business risks) of rently – integrated by the market (an externality Beyond these aspects, let us its economic, social and natural is not synonymous with impact) 6 Cf. Rapport De Cambourg, P., Gardes, C., & outline a few of the fundamental environment on its business mo- Viard, V. (2019). Ensuring the relevance and re- JUST AS FINANCIAL ACCOUN- issues of ecological accounting. del and value creation (Outside-in liability of non-financial corporate information: TING INFORMATION MUST BE an ambition and a competitive advantage for a approach)? Or should it also in- sustainable Europe. Ministère de l’Economie et BASED ON CHARACTERISTICS Issue 1: Connecting financial and clude the positive, and especially des Finances THAT MAKE THE PRODUCTION extra-financial aspects negative impacts of its activities OF ACCOUNTING FIGURES CRE- Alexandre Rambaud In the traditional corporate world, on its environment – in the broa- Lecturer and researcher DIBLE AND AUDITABLE, NON- information is structured and or- dest sense of the term (inside-out AgroParisTech - CIRED & Paris FINANCIAL DATA MUST ALSO Dauphine University ganised through accounting sys- approach)? While the former ap- BE QUESTIONED AS TO HOW tems, then analysed by means of proach is currently predominant, THEY ARE CONSTRUCTED. financial analyses to highlight a the integration of the Inside-out set of performances. This is the approach is now a heavily deba- foundation, based on accounting ted issue at European level. systems, on which internal corpo- rate decisions as well as invest- ment decisions can be made. CARE, AN EXAMPLE OF AN EXTRAFINANCIAL ACCOUNTING MODEL This world is currently being CARE (Comprehensive Accounting in Respect of Ecology) is one of the only examples of integrated transformed, albeit peripherally, accounting. A source of active research, experimented and promoted by several companies and by the inclusion of extra-financial NGOs, it has been designed to respond, conceptually and operationally, to the debates in ecological criteria. On the fringes of the clas- accounting. It is thus the only model based on an Outside-inside vision, where socio-environmental sic corporate world, a plethora of issues are understood in terms of liabilities, i.e. the conservation of "capital" "entities" to be pres- extra-financial, non-standardised erved (climate, biodiversity, human beings employed, etc.), each of these entities being a specific and non-comparable accounting, capital. CARE extends the principles of protection of financial capital to these new capitals – and reporting and rating systems are includes the current business models - which are valued at their preservation costs (costs of pres- being developed, left to the dis- ervation actions, excluding compensation). CARE restructures the profit, which thus becomes equal cretion of private organisations. to the surplus after all capital has been preserved. An example of these disconnec- 18 IMPACT MEASUREMENT 2020 SUSTAINABLE SOLUTIONS BAROMETER CASE STUDY: HOW INPULSE REDESIGNED ITS IMPACT MEASUREMENT METHODS TO INCORPORATE SDGs

hat is impact investing? How selecting a set of indicators that were both “performance” be evaluated in the absence can it be defined and measured? relevant and already available in the clients' of reliable benchmarks to compare with ? This W How can we contribute to human databases. This work resulted in a first Impact question led Inpulse to develop the key prin- progress within the framework of the Sustai- Report in 2019 (see graph below). ciple of its ESG system: assessing the consis- nable Development Goals (SDGs)? How can tency of the client institution's operations we quantify and qualify the contribution of Problems and challenges encountered... or with their stated social mission. our social impact investment funds (CoopEst, the many paradoxes of impact measurement! CoopMed, Helenos) to the SDGs? These are Quantifying, measuring, monitoring... and broad issues that the Belgium-based social Inpulse faced numerous difficulties in mea- what next? impact fund manager Inpulse had to consider suring the “impact” of the investments made in developing its new SDG-oriented ESG (Envi- by its funds in the balance sheets of client Once the data has been collected, analysed ronment, Social and Governance) system. In Microfinance Institutions. One of the major and interpreted, how can it be used to pre- this process, Inpulse had to face one major challenges was how to translate the general pare for the future? This critical question led challenge: guaranteeing the accuracy of the principles set out by the SDGs into concrete Inpulse to develop its own "theory of change" analysis while enabling ease of understan- indicators. For example, how can the wide adapted to its impact assessment methodo- ding for a wide range of stakeholders (clients, concept of “gender equality” (SDG 5) be logy. Inpulse wanted to develop not only a investors and partners). translated into a limited number of measu- “reporting” tool to measure its contribution to rable indicators? In line with the 2XChallenge the SDGs, but also a system which could help Building a social impact measurement sys- criteria, one of the added indicators was the establish – along with its clients – measurable tem that includes the SDGs number of women holding leadership posi- impact targets that would then be included in tions in client institutions. investment contracts. Impact investment thus The social impact measurement adventure becomes a long-term effort aiming to moni- began with CoopEst, an investment fund ma- Another challenge was to find the right ba- tor over time the concrete evolution of key naged by Inpulse since 2009. According to lance between the macro and micro levels indicators related to specific SDGs and ESG the "double bottom line" credo (to take into for developing an effective and user-frien- criteria. “Making impact” doesn’t only mean account financial profitability and social im- dly monitoring system that could be used by measuring change: it also means accompa- pact) the main goal was to analyse the social all client institutions, but which would also nying and encouraging it with conviction and performance of the Microfinance Institutions reflect the huge diversity of the geographical determination. funded by CoopEst using the rigor applied to areas served (North Africa, the Middle East, their financial performance. Eastern or Western Europe). Yet, how can a The ESG & Impact Team Inpulse Investment Manager Inpulse then turned to the best practices pro- vided by SPI4-Cerise and the Global Impact Investing Network in order to select the indi- CONSOLIDATED RESULTS OF THE SOCIAL IMPACT INVESTMENT FUNDS COOPEST, COOPMED & HELENOS, BY SDG (AS OF 31/12/2019) cators for its social analysis matrix, which became a Social Scorecard in 2016. This evolution consisted in introducing an auto- mated scoring system which would provide an immediate overview (scoring) of a client's social performance to facilitate investment decisions. Three years later, Inpulse redesig- ned its system to blend its impact assessment methodology within the framework of the SDGs and ESG criteria applied to the financial inclusion sector. This transformation required extensive research and analysis, developing new indicators (both quantitative and qualita- tive) and collecting information directly from clients through tests and interviews. The key objective was to define indicators relevant to the fieldwork experience.

The next step was to align the selected in- dicators with international standards: the 2XChallenge for gender equality, the Green In- dex for the environment and the Global Repor- ting Initiative for governance. After a lengthy collection and field-testing process, we had to favour pragmatism over exhaustiveness, 2020 SUSTAINABLE SOLUTIONS BAROMETER THE ENDWORD 19 PROFESSOR MUHAMMAD YUNUS: "WE HAVE TO BUILD NEW ROADS" @Fondation Grameen Crédit Agricole Crédit Grameen @Fondation

uhammad Yunus was awarded the Nobel Peace Prize in 2006 for his work and initiatives to eradicate poverty. In this interview, he discusses M the need to create a resilient post-war world based on a Zero Exclusion, Zero Carbon, Zero Poverty approach. The Covid-19 crisis has led many analysts you, why should the SDGs be at the forefront to the conclusion that a real and profound of recovery plans? HOW MUCH OF THE GDP IS DISTRIBU- transition is needed to create more resilient TED IN WHICH WAY IS THE QUESTION WE societies. What do you think this crisis has The Three Zeros represent the world we have SHOULD BE ASKING? THIS IS CRITICAL TO revealed? to create. We live in a world of extreme glo- BUILD PEACEFUL SOCIETIES. bal warming and of obscene wealth concen- This pandemic has brought so much misery tration. To address these issues, we need to for the whole world. More than half the popu- gather all forces towards a Zero poverty, Zero GDP doesn’t tell us the whole story. It is a lation of the world suddenly lost their liveli- exclusion, Zero carbon world. single dimension indicator telling how much hoods. In the informal sector mostly, we saw is produced. But who owns it is the most how fragile life is as millions of people were The 17 SDGs go into a little more details. critical part. The extreme wealth concentra- left overnight with no place to live and nothing They can be regarded as the solution to the tion, to me, is the most dangerous part of the to eat. All the weaknesses in our system now problems we have created for ourselves. Al- economy. The people who actually create the are exposed. though I strongly support the SDGs, we need wealth have no share in it. to recognise that we are the ones who crea- At the same time, a discussion emerged on ted the conditions that make these 17 objec- Yet, when you divide this total production how fast we could go back to the pre-pande- tives essential. Using the same old way of by the number of people, everybody gets an mic period. But I see the coronavirus crisis as doing and thinking, the same structures and equal number. Therefore, GDP per capita is a an opportunity not to go back. Why should we systems that created these problems, cannot totally useless and explosive concept. How go back at all? That world was such a dange- be the solution. How do we achieve the SDGs? much of the GDP is distributed in which way rous world, and it was approaching a disaster. Under the existing system it cannot be done. is the question we should be asking. This is We have to go somewhere else and to take We need a counter-system. critical to build peaceful societies. new decisions, outrageously bold decisions. In a limited world defined by limited re- The GDP indicator doesn’t include social res- Through your actions and your vision of a sources, the economy can hardly be infinite. A ponsibility either. We can produce a lot of World of Three Zeros – Zero poverty, Zero continuous growth measured by GDP per capi- growth, while at the same time destroying the unemployment, Zero carbon-, close to ta is in contradiction with the development of world. Convergences’ mandate you are one of the resilient societies. Do you think it is possible leading advocates of the SDGs. According to to reconcile growth with sustainability? 20 THE ENDWORD 2020 SUSTAINABLE SOLUTIONS BAROMETER

Is social business the second pandemic gives us the opportu- In order to create a world of dimension we are waiting for to nity to think differently and to put Three Zeros, we have to stop and os foster the social responsibility? all our minds, all our creativity in to reverse everything that we do. av D @ this direction. For instance, we have to stop Social business doesn’t go into creating global warming, and go the statistics. Any business, we In your mind, what is the big- the green energy way. We have are told, is based on profit maxi- gest obstacle impeding a true to go business by business to misation. We are also told that and profound transition towards shift everything towards positive individuals are always pursuing a more resilient and sustainable impact. Regarding poverty and self-interest. I say that is com- society? wealth concentration, we know pletely wrong. Human beings the idea that business means pro- are also driven by a much bigger Mindsets. We think profit maxi- fit maximisation is the problem. dimension: common interest. In misation is the thing to do. We But business should also seek an economy where individuals are told that not everybody can common interest. For social busi- Muhammad Yunus, born are both driven by self and com- become an entrepreneur. The nesses, we need a new banking June 28, 1940 in the region mon interest, we would see two system rather teaches to be a system, new investment funds, a of Chittagong, Bangladesh, kinds of businesses. One for self- job seeker, than an entrepreneur. new stock market. is a Bangladeshi economist interest – that is what we already But this is not true. Human beings have, and one to take care of are basically born entrepreneurs. If you go to the old roads, you and entrepreneur famous common interest: social business. Thinking the opposite leads to always go to the old destinations. for founding the first micro- wealth concentration. Those So in order to go to the new des- credit institution, Grameen who own the economy could not tinations, which are the Three Ze- Bank, in 1976. Nicknamed IF YOU GO TO THE OLD ROADS, gather such wealth themselves ros, we have to build new roads. the "Banker to the Poor", YOU ALWAYS GO TO THE OLD unless we work for them. There is no escape from that. he was awarded the No- DESTINATIONS. SO IN ORDER TO GO TO THE NEW DESTINA- Redesigning our thinking process Interview by bel Peace Prize in 2006. Carine Valette TIONS, WHICH ARE THE THREE gives us options. This mind-set ZEROS, WE HAVE TO BUILD Communication & Publications He also theorises the that we are not entrepreneurs is Manager NEW ROADS. THERE IS NO ES- artificial. We have to undo it and Thibault Larose concept of Social Business, CAPE FROM THAT. start looking at things in a dif- Executive Director Convergences as an economically viable ferent way. enterprise whose purpose is to serve a societal cause. The SDGs are appropriate goals How can a world of Three Zeros for creating social businesses to be the roadmap for tomorrow’s solve global warming, poverty, world? healthcare, etc. The coronavirus

Insanity is doing the same thing over and over again « and expecting different results, Albert Einstein »

Thank you to the members and contributors of the 4th ABOUT CONVERGENCES: SPECIAL THANKS Sustainable Solutions Barometer : Yacin Aït Kaci (Fondation Elyx), Matthieu Belloir (Orange), Jeroo Billimoria (Catalyst 2030), Launched in 2008, Convergences is the first platform for thought, Emilie Bobin (PwC), Margot Delafoulhouze (WWF France), Fabrice advocacy and mobilisation in Europe to promote the Sustainable Ferrier (Focus 2030), Louis-Nicolas Jandeaux (Oxfam), Déborah Development Goals and the development of a world “Zero Exclu- Keraghel (HEC), Juliette Kacprzak (WWF France), Guillaume Lafor- sion, Zero Carbon, Zero Poverty.” Its mission is to organise de- tune (UNSDSN), Laure Le Rouzic (Fondation Elyx), Caroline Loret bates, mobilise thoughts and actions, spread good practices and (Orange), Mahmoud Mohieldin (UN), Claire Mousset (Orange), Kari- encourage the co-construction of partnerships and innovative na Navarro (Inpulse), Kristine Pearson (Catalyst 2030), Marina Ponti solutions. Convergences relies on more than 200 partner orga- (SDG Action Campaign), Armelle Perrin-Guinot (Veolia), Adeline nisations represented within its working groups to co-organise IN PARTNERSHIP WITH: Pilon (Fondation Elyx), Lucie Rabier (Inpulse), Alexandre Rambaud the Convergences World Forum, which gathered more than 5000 (AgrosParisTech - CIRED), Arielle Romanteau (ACTED), Gwenael participants every year, to write studies and publications, and Roudaut (Ministère de la Transition Ecologique et Sociale), Isaac to organise events throughout the year. For further information: Samdja (HEC), Benjamin Singer (UN), José-Carlos Suarez-Herrera www.convergences.org (Kedge Business School), Philippine Viaud (WWF France), Muham- mad Yunus (Yunus Center). Copyright Convergences December 2020 – Convergences, 10 rue de Sèze, 75009 Paris – France // +33 (0)1 42 65 78 85 Convergences : Leïla Cartier, Paul Constantin, Baptiste Fassin, Clara James, Thibault Larose, Fanny Roussey, Carine Valette, Alice For more information: [email protected] or Vallès, Manon Vigier. www.convergences.org Sustainable Solutions Barometer 2020 / Conver- gences. Editorial and graphic design: Baptiste Fassin, Carine Va- lette, Convergences l Print: Imprimerie Centrale de Lens