聯(lián)合國西亞經(jīng)濟(jì)社會(huì)委員會(huì)-2023年可持續(xù)發(fā)展目標(biāo)年度回顧：阿拉伯地區(qū)的私營部門和可持續(xù)發(fā)展目標(biāo)（英）-2023.3

TheprivatesectorandtheSDGsintheArabregion

VISION

ESCWA,aninnovativecatalystforastable,justandflourishingArabregion

MISSION

Committedtothe2030Agenda,ESCWA’spassionateteamproducesinnovativeknowledge,fostersregionalconsensusanddeliverstransformationalpolicyadvice.Together,weworkforasustainablefutureforall.

E/ESCWA/CL5.SDGS/2023/TP.1

EconomicandSocialCommissionforWesternAsia

TheprivatesectorandtheSDGs

intheArabregion

TheReviewisapreparatorydocumentoftheArabForumforSustainableDevelopmenttoencouragediscussiononpriorityissuesfortheachievementoftheSDGsintheArabRegion

?2023UnitedNations

Allrightsreservedworldwide

RequeststoreproduceexcerptsortophotocopyshouldbeaddressedtotheUnitedNationsEconomicandSocialCommissionforWesternAsia(ESCWA),UnitedNationsHouse,RiadElSolhSquare,P.O.Box:11-8575,Beirut,Lebanon.

Allotherqueriesonrightsandlicenses,includingsubsidiaryrights,shouldalsobeaddressedtoESCWA.E-mail:publications-escwa@;website:

.

UnitedNationspublicationissuedbyESCWA.

ThedesignationsemployedandthepresentationofthematerialinthispublicationdonotimplytheexpressionofanyopinionwhatsoeveronthepartoftheSecretariatoftheUnitedNationsconcerningthelegalstatusofanycountry,territory,cityorareaorofitsauthorities,orconcerningthedelimitationofitsfrontiersorboundaries.

Mentionofcommercialnames,products,servicesorlicensedprocessesdoesnotimplytheendorsementorcriticismbytheUnitedNations.

Referenceshave,whereverpossible,beenverified.

SymbolsoftheUnitedNationsdocumentsarecomposedofcapitalletterscombinedwithfigures.MentionofsuchasymbolindicatesareferencetoaUnitedNationsdocument.

TheopinionsexpressedinthistechnicalmaterialarethoseoftheauthorsanddonotnecessarilyreflecttheviewsoftheSecretariatoftheUnitedNations.

Referenceto“dollars”($)meansUnitedStatesdollars,unlessotherwiseindicated.

Useofadash(–)betweendatesrepresentingyears,e.g.2020–2021,signifiesthefullperiodinvolved,includingthebeginningandendyears.

Detailsandpercentagesinchartsmaynotnecessarilyaddtototalsbecauseofrounding.

Acknowledgements

TheAnnualSDGReview2023waspreparedbyMarioJales,JanaElBabaandHaniaSabbidinDimassi,underthedirectionofMaisaaYoussef,ClusterLeader,2030AgendaandSDGCoordinationCluster,UnitedNationsEconomicandSocialCommissionforWesternAsia(ESCWA).

Appreciationgoestotheexpertswhoreviewedthisdocument:AlexandraTarazi(UnitedNationsGlobalCompact);MounirTabet,HishamTaha,SalimArajiandJoelleYazbeck(ESCWA).

Specialthankstotherepresentativesofthecompanies,selectedrandomly,whosharedtheirSDGexperienceintheirownvoice(boxes8,9,10and11):ReineMetlejandYasmineJabali(BIOwayste);MarcAntoineBouNassif(L’AtelierduMiel);JamesMichaelLafferty(FineHygienicHolding);andWissamKadi(SAP).

3

Keymessages

1

DeliveringtheSDGs

throughbusinessaction

Theregion’sprivatesector

isunderperformingonthe

environmental,socialand

governance(ESG)front

?VeryfewcompaniesintheArabregionpublishsustainabilityreports.

?Smallandmedium-sizedenterprises(SMEs)intheregionunderperformlargercompaniesandpeersinotherworldregionsintheirESGactions.

?Women-ledenterprisesintheregionoutperformmen-ledenterprisesinESGimplementation.

?Fewcompaniesmonitortheirenergyconsumptionandevenfewermonitorwaterconsumption.

?Thesocialcomponentisaweakpoint,notablyintermsofwomen’semploymentandthefairtreatmentofmigrantworkers.

Theregion’sprivatesector

isbeingnudgedbyaweb

ofpressures,buttheirSDG

actionsreflectlargely

conventionalcorporate

socialresponsibility(CSR)

approaches

?WhilegovernmentregulationsandincentivescontinuetobeamaindriverbehindprivatesectoralignmentwiththeSDGs,thebusinesscasefortheSDGsisbecomingclearer.

?Theprivatesectorisstartingtoperceivetheriskto

theirbusinessfromnotachievingtheSDGs;thisis

notableforclimaterisks,includingnaturaldisasters

andscarcityandincreasedcostofresources.

?Ambitiousgovernmentcommitments,suchasnetzero,couldexerttransitionriskoncompaniesastheyseektocomply.

?Customerpreferenceforsustainableproductsandservices–anemergingtrendaccordingtosurveysintheregion–isplayinganincreasinglyimportantroleindrivingArabcompanies’adoptionofESGmeasures,especiallyforexporters.

?AshiftisyettotakeplacefromCSRtowardsamoreambitiousandholistic‘sharedvalue’approachthatcanbringlonger-termandcumulativegainstobusinessesandsocieties.

4

Wayforward

?Governmentsneedtoleadbyexample,adoptanewgenerationofsupportingpolicies(suchascirculareconomypolicies),offerincentivesandde-riskESGinvestmentsbytheprivatesector.

?Businessesneedtocommittotransparentsustainabilityreporting.

?Civilsocietyorganizations,includingprofessionalassociations,cancomplementeffortsbyGovernmentsandotherstakeholdersbyprovidingguidancetotheprivatesectoronbestpracticesforaligningwiththeSDGs,andsupportingsocialentrepreneurship.

?AllactorsneedtogiveparticularattentiontoSMEsthatrepresentthemajorityofenterprisesintheregion,facemanyimpedimentsandarethelowestESGperformers.

2

MobilizingprivatefinancefortheSDGs

IntheArabregion,privatefinanceiscrucialtobridge

?Twelvemiddle-andhigh-incomeArabcountriesfaceanestimatedSDGfinancinggapof

theSDGfinancinggap

$660billionperyeartoachieveprioritytargetsby2030.

?Privatecapitalisabundant,butonlyasmallshareischannelledtoSDG-relatedprojects.ThechallengeresidesinmobilizingdomesticandforeignprivatecapitaltohelpclosetheSDGfinancinggapintheregion.

Privateinvestmentislow

anddeclining

?Bothdomesticandforeignprivateinvestments

aredecliningasashareofGDP,andatafaster

ratethaninotherdevelopingregions.

5

Wayforward

6

?DomesticprivateinvestmentasapercentageofGDPisnearlyhalfashighasinSouthAsia,oronethirdashighasindevelopingEastAsiaandthePacific.

?TheArabregionistheonlydevelopingregion

wherenetforeigndirectinvestment(FDI)isnegative(i.e.outflowssurpassinflows).

Corporatefinancedealsintheregionrevealamovetowardssustainabilityinrecentyears

?InwardFDItraditionallyconcentratedinsectors

thatcreatefewjobsandfallshortofbeing

transformative,includingfossilfuels,realestate,

andleisure.

?However,recentcorporatefinancedealshaveprioritizedSDG-relatedsectors,especiallyrenewableenergy,waterandsanitation,andtransportation.

?GovernmentscantranslatetheirinvestmentplansintobankableprojectpipelinesthatcontributetoachievingtheSDGs,andembedthemintonationaldevelopmentstrategiestoguideprivatesectorinvestment.

?Governmentscanenactlegislationtopromotepublic-privatepartnerships(PPPs)andensurethatrisksandreturnsaresharedfairly;establishPPPunitswithinGovernments;andbuildcapacitytoenterpartnerships.

?Allactorscanpromoteblendedfinancetogalvanizeprivatecapitalinriskierenvironments.

?Developregulatoryframeworkstopromotesustainablecapitalmarkets,includingforsustainability-themedbondsandfunds.

?AllactorscandevelopharmonizationofsustainablefinancingstandardstostrengthenESGreportingandaccountabilityandensureinvestorconfidence.

?Allactorscanboostdomesticsavingstostimulateinvestmentandgenerategreateremployment,economicgrowthandsustainabledevelopment.

Wayforward

7

3

EngagingtheprivatesectorinSDGplanningandcoordination

TheprivatesectorisinvolvedinSDGplanningandreviewframeworks,butparticipationcouldbewiderandmoremeaningful

?ArabGovernmentsareengagingtheprivatesectorinSDGplanning,reviewandcoordination,mostcommonlythroughchambersofcommerceandindustry.

?MostArabcountriesengagewomenbusinessassociationsinSDGcoordinationprocesses,buttheparticipationofmicro,smallandmedium-sizedenterprises(MSMEs)islackinginmorethanathirdofcountries.

?Privatesectorengagementispiecemealandoftentokenistic.Whiletheprivatesectorisregularlyconsulted,itdoesnotparticipateindecisionmakinginmostArabcountries.

ReportingonprivatesectorcontributionstotheSDGsinvoluntarynationalreviews(VNRs)islacking

?VNRspartiallyreflectthecontributionsoftheprivatesectortotheSDGs;reportingisgenerallylimitedtoprivatesectorcontributionstoeconomicgrowthandemploymentcreation.

?Engagingtheprivatesectorinlocal-levelSDGplanningandcoordinationcanhelpwidenthereachtoincludeMSMEs.TheemerginginterestintheregioninlocalSDGreviewsishelpfulinthatrespect.

?Aunifiedandstablemechanismthatmeaningfullyengagestheprivatesectoracrossallstagesofthepolicycyclewillbecriticaltoensurecoherenceandaccumulationofresults.

?VNRsshouldreflectprivatesectorcontributionstoSDGsthatgobeyondjobcreationandeconomicgrowth.Digitalself-reportingplatformscanbettercapturethesecontributionsandhelpstandardizecorporatesustainabilitydisclosure.

Contents

Acknowledgements3

Keymessages4

Introduction11

1.

DeliveringtheSDGsthroughbusinessaction13

A.Everybusinesscancontribute14

region’sprivatesectorisunderperformingontheenvironmental,socialandgovernancefronts

B.The

17

C.Theprivatesector’sapproachtoSDGactionsremainslargelyconventional;

ashiftisyettotakeplacetowardssharedvaluecreation23

D.Awebofpressuresfromnature,consumersandGovernmentshasturnedalignment

withtheSDGsintoastrategicchoice26

E.Actionsneededtofillthegaps28

2.

MobilizingprivatefinancefortheSDGs29

A.BridgingtheSDGfinancinggap31

B.PrivateinvestmentfortheSDGs32

C.Innovativeapproachestomobilizeprivatecapitalforsustainabledevelopment35

D.Actionsneededtofillthegaps41

3.

EngagingtheprivatesectorinSDGplanningandcoordination43

A.Whorepresentstheprivatesector44

B.Howtheprivatesectorisengaged44

C.Thepost-VNRphase47

D.Actionsneededtofillthegaps48

Endnotes49

Listoftables

Table1.

TheESGframeworkused15

Table2.

Howissharedvaluecreatedinpractice?23

Listoffigures

Figure1.

Carbondioxideemissionsperunitofmanufacturingvalueadded,2000and201917

Figure2.

Incidenceofbribery,202019

Figure3.

Domesticprivateinvestment,2011–2014and2015–201832

Figure4.

FDIflows,Arabregionandotherdevelopingregions,2008–202133

Figure5.

InternationalprojectfinancedealstargetingtheArabregion,2011–202134

Figure6.

GlobalsustainableUOPbondissuance,2015–202235

Figure7.

SustainableUOPbondissuanceintheArabregion,2015–202236

Figure8.

Globalsustainablefundsandassetsundermanagement37

Figure9.

Globalblendedfinance38

Figure10.

InfrastructurePPPsinlow-andmiddle-incomecountriesintheArabregion39

Figure11.

PrivatesectorrepresentationinnationalSDGinstitutionalstructures,bytypeofentity46

Figure12.

PrivatesectorengagementinVNRprocesses,byroleplayed46

Figure13.

SourcesofinformationontheprivatesectorforVNRs46

Figure14.

GovernmentspublishingnationalreportsonprivatesectorcontributionstotheSDGs46

Figure15.

NumberofprivatesectorrepresentativesinvolvedinVNRprocessesintheArabregion47

Figure16.

InvolvementofwomenbusinessassociationsandMSMEsinSDGprocessesintheArabregion47

Figure17.

Post-VNRcommunicationwiththeprivatesectorintheArabregion48

Listofboxes

Box1.

WhatisprivatesectorcontributiontotheSDGs?12

Box2.

GlobalESGtrends15

Box3.

WhichSDGsattractmostprivatesectoractionsintheregion?Evidencefromthe

UnitedNationsGlobalCompact16

Box4.

WhatinfluencesArabenterprises’climateinvestments?17

Box5.

Morocco:Takingstepsonbusinessandhumanrights18

Box6.

Women-ledenterprisesintheregionoutperformmen-ledenterprisesintermsofESG,despitebarriers19

Box7.

Largeversussmall:WhofaresbetterintermsofESGperformance?20

Box8.

Testimonial:BIOwayste–Transformingorganicwasteintobiogasandbiofertilizer21

Box9.

Testimonial:L’AtelierduMiel–Enhancedtransparency,reducedfoodmilesandhigher

producerincomeinthehoneysector22

Box10.

Testimonial:FineHygienicHolding–Promotingsustainablevaluechains,

enhancingwater-useefficiencyandempoweringstakeholders24

Box11.

Testimonial:SAP–Buildingskillsforasustainableanddigitalfuture25

Box12.

IssocialentrepreneurshipaviablemodelintheArabregion?26

Box13.

Opportunitiesinacirculareconomy27

Box14.

Whatisaprivateinvestment?30

Box15.

IsFDIcontributingtotransformativechangeintheArabregion?34

Box16.

SDGinvestormapsinDjiboutiandJordan40

Box17.

ArechambersofcommerceandindustryintheArabregionengagedintheSDGs?45

11

1

2

3

action

MobilizingprivatefinancefortheSDGs

EngagingtheprivatesectorinSDGplanningandcoordination

Introduction

The2030AgendaforSustainableDevelopmentacknowledgestheroleofthediverseprivatesector,rangingfrommicro-enterprisestocooperativestomultinationals,intheimplementationoftheSustainableDevelopmentGoals(SDGs).ItcommitsMemberStatestotakethenecessaryactionstoencourageandpromoteeffectivepublic-privatepartnerships(PPPs).Italsocallsonallbusinessestoapplytheircreativityandinnovationtosolvingsustainabledevelopmentchallenges.

TheESCWAAnnualSDGReview2023,thesecondintheseries,exploresthecontributionsoftheprivatesectortotherealizationofthe2030AgendaandtheSDGsintheArabregion.Buildingonlimitedavailabledataonthesubject,thereportoffersanindicativereadingofexistingtrendsandgapsintheregion.TheanalysisisguidednotonlybytheAgenda’sgoalsandtargets,butalsobythewhole-of-societyandrights-basedapproachesandtheprinciplesofuniversality,leavingnoonebehind,combatinginequalityandpromotinggenderequalityandtheempowermentofwomen.

AlthoughtheprivatesectorhasthepotentialtobeakeydevelopmentpartnerintheArabregion,thisisyettofullymaterialize.Availableevidenceindicatesthatbusinessesareamajordriverofproductivitygains,jobcreationandeconomicgrowth.InsomeArabcountries,privateenterprisesalsocontributetotheprovisionofsomesocialservices,suchaseducationandhealthcare,andspearheadinnovationandtechnologicalchange.Moreover,theprivatesector,insynergywithGovernments,donorsandotherpartners,canplayakeyroleinbridgingthefinancinggaptoachievetheSDGsby2030,whichhasbeenestimatedin12Arabcountriestoexceed$660billionperyear.1

Businessesfaceaplethoraofchallengesintheregion,includinginstability,lackofeffectiveenforcementofcompetitionlaw,lowinvestmentinhumancapitalandtechnology,insufficient

accesstofinanceandlimitedopportunitiesforwomenandyoungpeople.ArabStatesandotherstakeholdersaredeployingbroadeffortstosupportthedevelopmentoftheprivatesectoranditsalignmentwiththeSDGs.Governmentsarealsoincreasinglyengagingtheprivatesectorininstitutionalmechanismsdedicatedtoplanning,coordinationandreviewofthe2030Agenda.

Thenextchaptersofthisreportreview

thecontributionsoftheprivatesectorto

sustainabledevelopmentintheArabregion

fromthreelenses:

DeliveringtheSDGsthroughbusiness

Eachchapterassessesevidenceforprivatesector

engagementinthedeliveryoftheSDGsinthe

regionandprovidesguidanceonactionsneeded

toaddresscurrentgaps.

Box1.

WhatisprivatesectorcontributiontotheSDGs?

Whilethe2030AgendastressestheimportanceofprivatesectorcontributiontotheSDGs,itdoesnotprovideclearguidanceonthescopeofthatcontributionorwaystoaccuratelyandconsistentlymeasureit.Inbroadterms,aprivateschoolthatprovideseducationinremoteareascouldbeseentocontributetotheachievementofSDG4.Anycompanythatcreatesjobopportunitiescouldbe

seentocontributetotheachievementofSDG8.IfweconsidertheSDGswithintheparadigmshiftcalledforbythe2030Agenda,wewouldacknowledgethatthoseachievementswouldneedtobequalified:aprivateschoolthatoffersaccessiblequalityeducation;acompanythatcreatesdecentjobs.Transformativechangeisaboutcreatingashifttowardsincreasedenvironmentalsustainability,equality,arights-basedapproachtodevelopment,inclusivity,justice,etc.–thecoreprinciplesoutlinedinthePreambleandDeclarationofthe2030Agenda.

Thinkingoftransformativechangeandthecoreprinciplesbringsusclosertocapturinghowanyintervention,whetherbytheGovernment,theprivatesector,civilsocietyorindividuals,contributesmeaningfullytoSDGimplementation.Itisnotanexactscience.Butitisalsonotassimpleastheprovisionofeducation,healthcare,foodproductsorjobs.

However,whilegovernmentinterventionscanbemeasuredutilizingtheglobalindicatorframeworkfortheSDGs,albeitcomplementedbyqualitativeanalysis,nosuchgloballyagreedframeworkexistsformeasuringprivatesectorcontributionstotheSDGs.MultipleeffortsarebeingmadetocapturethiscontributionandsomearereferencedinthepresentReview.ExamplesincludetheGCIframeworkoftheUnitedNationsConferenceonTradeandDevelopment(UNCTAD);theSDGImpactStandardsforenterprises,privateequityfundsandbondissuersoftheUnitedNationsDevelopmentProgramme(UNDP);guidancebytheGlobalImpactInvestingNetwork;aswellasthatoftheUnitedNationsGlobalCompact,whichcomplementsitsTenPrincipleswithChiefFinanceOfficerPrinciples.Commontomostexistingeffortsisafocusonimpact–sociallybeneficialandenvironmentallysustainable–andongoodcorporategovernance.

Intheabsenceofacomprehensiveandaccessibleglobalframework,thepresentReviewusesanenvironmental,socialandgovernance(ESG)frameworkasaproxyforalignmentwiththeSDGs.Inaddition,theReviewacknowledgesthattheapplicationofthisframeworkintheregionislimitedbythescarcityofdataonprivatesectorcontributions.However,buildingonavailablereporting,theReviewoffersananalyticalperspectiveonavailabledatatocontributetothediscussiononprivatesectorengagementwiththeSDGsintheArabregion.Itlaysoutfindings,offersanalysisandprovidesrecommendationsinlinewiththeoverallassessmentofSDGachievementinArabcountries.Thus,italsomakesthecaseformoredetaileddataproductionaswellasmorerobustanalyticaltoolstohelpassessandimproveprivatesectorcontributionstotheSDGsintheregion.

Source:ESCWA.

12

Deliveringthe SDGsthroughbusinessaction

1

Alignitscore

businesstothe

SDGsthatdirectly

linkwithitssector

ofoperation

Contributeto

manySDGs

throughits

internalpolicies

andstandards

DeliveringtheSDGsthrough

businessaction

A.Everybusinesscancontribute

Businessesandotherprivatesectorentitiescancontribu