Planet under Pressure

macondogroup

The 2020s are the make-or-break decade for Sustainability. But Covid-19 questions almost everything. How can we handle increasingly frequent shocks? What can a resilient society and economy that is in line with planetary boundaries look like? These and many other questions are discussed in the new 2020 edition of the Global Goals Yearbook titled “Planet under Pressure”. The Yearbook supports the UN Sustainable Development Goals and is one of the publications in strong international demand.

GLOBAL GOALS

GLOBAL GOALS

YEARBOOK

YEARBOOK

2020

Planet under

Pressure

Global Goals Yearbook 2020

1


This publication is kindly supported by:

Arab African International Bank

Audi

BASF

Bayer

Beaulieu International Group

Bosch Group

Business Keeper

CEMEX

Clariant

EDF Group

Elomatic

E.ON

Green Delta Insurance Company

Inditex

iPoint-systems

Knorr-Bremse

K+S

KYOCERA

macondo foundation

MAN

Merck

MTU Aero Engines

Netafim

Nomura Group

pervormance international

Philip Morris International

Sakhalin Energy

SAP

Symrise

Vonovia

Wilo Group

The Global Goals Yearbook is a product of macondo publishing GmbH in support of the Sustainable Development Goals, and the advancement of

corporate sustainability globally. This publication is intended strictly for learning purposes. The inclusion of company names and / or examples

does not constitute an endorsement of the individual companies by the United Nations.

2 Global Goals Yearbook 2020


H.E. António Guterres

The Covid-19 pandemic has plunged us into an

UN Secretary-General

acute health and economic crisis, the severity of


which has not been seen in nearly a century.

Secretary-General's remarks to

High-level segment of the United The socio-economic impacts will likely unfold

Nations Economic and Social Council

for years to come. The crisis risks halting and

on July, 17, 2020.

reversing progress on poverty eradication,

food security, gender equality and other Sustainable Development

Goals. The pandemic has exposed and exacerbated vulnerabilities and

inequalities within and among countries. It has reconfirmed that the

systems on which we depend – food, trade, health, climate – are not only

increasingly interdependent, but increasingly fragile.

Indeed, the pandemic has underscored the world’s fragilities not just

in the face of a health emergency, but in confronting the climate

crisis, lawlessness in cyberspace, and the still-very-real risks of nuclear

proliferation. As we strive to respond and recover, we must reexamine

many longstanding assumptions and reconsider the approaches that

have led us astray.

We must also reimagine the way nations cooperate. The pandemic has

underscored the need for a strengthened and renewed multilateralism:

A multilateralism based on the powerful ideals and objectives enshrined

in the Charter and in the agreements defined across the decades since.

A multilateralism built on trust, that is based on international law

and is geared towards the overarching goals of peace and security,

human rights and sustainable development. We need a networked multi-

lateralism, in which the United Nations and its agencies, the international

financial institutions, regional organizations and others work

together more effectively with stronger institutional links. And we need

an inclusive multilateralism, drawing on the critical contributions of civil

society, business, foundations, the research community, local authorities,

cities and regional governments.

This, in turn, will help lead to an effective multilateralism with the

mechanisms it needs to make global governance work where it is needed.

Global Goals Yearbook 2020

3


QUOTE

3 H.E. António Guterres,

United Nations

Secretary-General

6 PLANET UNDER

PRESSURE

RESILIENCE

10 Resilience in the Time of

Pandemic

Dr. Elmer Lenzen

50 Covid-19 Makes ESG Factors

More Financially Relevant

Meaghan Muldoon

54 The Corona Effect

Four Future Scenarios

ECOLOGICAL LESSONS

60 We Are Creating Conditions

for Diseases such as Covid-19

to Emerge

John Vidal

66 Caught on Film

Actor & Activist Edward Norton

James Evans

70 Paradigm Shifts, Reactance, and

Fighting Our Demons

Prof. Dr. Harald Welzer

REVIEW

148 Review to the Global Goals

Forum: Berlin – October 10, 2019

2030 Agenda: Are we running

out of time?

17 The Planetary Momentum

Prof. Dr. Dr. Stefan Brunnhuber

22 "The most radical decelerator of

our time"

Hartmut Rosa

POLITICAL LESSONS

26 The EU Recovery and Resilience

Plan

Interview with EU Commissioner

Paulo Gentiloni


10

Resilience in the Time

of Pandemic

32 10 Theses on the Coronavirus for

the State and Society

Dr. Markus Engels

36 Global Governance vs. National

Sovereignty: To Whom Does the

Amazon Belong?

Dr. Dominic Lenzi

ECONOMIC LESSONS

42 Guidance and Arguments for a

More Sustainable World During

Covid-19 Recovery

Interview with Emily Auckland,

Pietro Bertazzi,

Prof. Dr. Maja Göpel, and

Julian Hill-Landolt


26

Interview with

EU Commissioner

Paulo Gentiloni

GOOD PRACTICE

78 Arab African International Bank

80 Audi

82 BASF

84 Bayer

86 Beaulieu International Group

88 Bosch Group

90 Business Keeper

60

We Are Creating Conditions

for Diseases such as

Covid-19 to Emerge

92 CEMEX

94 Clariant

96 EDF Group

98 Elomatic

100 E.ON

102 Green Delta Insurance Company

104 Inditex

106 iPoint-systems

110 Knorr-Bremse

112 K+S

116 KYOCERA

118 macondo foundation

122 MAN

124 Merck

66

Caught on Film

Actor & Activist

Edward Norton

126 MTU Aero Engines

128 Netafim

130 Nomura Group

132 pervormance international

134 Philip Morris International

138 Sakhalin Energy

140 SAP

142 Symrise

144 Vonovia

146 Wilo Group


Planet under

Pressure

The 2020s are the make-or-break decade

for the Global Goals. We say this every

decade, but this time it really is true. 2020

ought to be a super year for nature issues.

That's why we have chosen to focus on

PLANET. But then lockdown came. Since

then the world as we know is rapidly

changing before our eyes. The Covid-19

pandemic is a profound stress test for all

life on earth. Many of the sustainability

successes already achieved could fall victim

to the crisis. That's why we have added

the word PRESSURE. Now begins the time

for a fresh start: Recover better, recover

stronger, recover together. Three questions

will be in the focus: What are the

principles that will organize the future?

How do we safeguard the path change to

sustainability? How do we learn to deal

constructively with asymmetric shocks,

disruptions and conflicting goals? That

means living on a planet under pressure.

JUNE

Originally planned

timeline 2020

UN Ocean Conference in Lisbon, Portugal

“Scaling up ocean action based on science and innovation

for the implementation of Goal 14: stocktaking, partnerships

and solutions”

6 Global Goals Yearbook 2020


JULY

High-level Political Forum, in New York, USA

"Accelerated action and transformative pathways: realizing the

decade of action and delivery for sustainable development"

SEPTEMBER

Climate Week NYC 2020, in New York, USA

... will explore what lessons we can learn in the pursuit of a

net-zero future through just transition.

Global Goals Yearbook 2020

7


SEPTEMBER

Uniting Business LIVE

Combining 3 in-person events to one virtual roundup:

Private Sector Forum, Global Impact Forum and

SDG Business Forum

SEPTEMBER

75th Anniversary of the UN

"The Future We Want, the UN We Need: Reaffirming

our Collective Commitment to Multilateralism" with

pre-recorded statements by heads of state and government

8 Global Goals Yearbook 2020


OCTOBER

UN Biodiversity Conference (COP 15), in Kunming, China

Thematic consultation on the sustainable use of biological

diversity for the post‐2020 global biodiversity framework

NOVEMBER

COP26 UN Climate Conference, in Glasgow, UK

The run-up to see if countries make long-term commitments

to reach net-zero emissions by 2050.

Global Goals Yearbook 2020

9


10 Global Goals Yearbook 2020


RESILIENCE

Resilience

in the Time of Pandemic

How can we handle increasingly frequent shocks? What can a resilient society and

economy that is in line with planetary boundaries look like? What options do we have,

and which ones are already being implemented in practice? Can this work without

risking our prosperity?

Global Goals Yearbook 2020

11


Dr. Elmer Lenzen

Publisher

Global Goals Yearbook

The Covid-19 pandemic is keeping

the world in suspense in 2020 and

beyond. By declaring a “lockdown,”

countries around the world have temporarily

frozen their social, economic,

and cultural lives in order to slow the

spread of the virus.

When such unexpected events occur,

experts speak of “asymmetric shocks.”

However, the pandemic is not the only

crisis in recent times: The last decade

has been characterized by a whole series

of severe shocks. The intervals between

them appear to be getting shorter and

shorter: the financial crisis in 2008/2009,

the refugee crisis in 2015, Brexit (and, as

a result, an EU integration crisis), unbelievable

losses of biodiversity, increases in

extreme weather events due to climate

change, to name but a few. And it will

not be the last crisis: In the aftermath of

the lockdown, there are already signs of

an impending global food crisis that is

due to destroy supply chains, and a debt

crisis – right up to national bankruptcy

– due to the economic consequences of

the pandemic.

Living with the crisis: “The new

normal“?

If such crisis-like external influences are

to a certain extent unavoidable, then

the logical question is: What about our

ability to adapt to such shocks? The ideas

of vulnerability and resilience have recently

gained a high level of prominence

in the current economic and political

debates. Specifically “resilience” has

become a standard term in the OECD,

the EU, and the G20 conference formats.

In addition, in the Anglo-Saxon world,

numerous grassroots movements have

formed – participating in what they call

“community resilience” – and are closely

linked to the sufficiency, degrowth, and

commons movements.

Purely in terms of the number of mentions,

the concept of “resilience” is in

the process of supplanting that of “sustainability”

due to the frequency with

which it is being used in (economic)

political discourse. However, the term

also runs the risk of becoming a filler

word to give new emphasis to old demands.

The Bertelsmann Foundation

rightly points this out in a study from

2017: “However, the virtually inflationary

use of the resilience concept has

been accompanied by a lack of precision.

In particular, there is often no

clear understanding that alongside its

static interpretation (retention of a system’s

existing functions in the case of

a crisis), crisis resilience also includes

an adaptive dimension (adjustment to

new surrounding conditions).”

What exactly does resilience mean?

The term “resilience” comes from the

Latin resalire (to jump back). The English

translation “resilience” is commonly

translated as “resistant.” Many interpret

this resilience to mean that one returns

to the starting position after an external

impact. This corresponds to the image of

a pendulum. This is catchy and visual,

but nevertheless wrong, because it does

not take into account dynamic changes

in the society: People can, for example,

learn from past events and prepare for

imponderables to come. In a natural system,

processing shock is predetermined

(natural curve); in a man-made system,

we can shape it (learning curve).

The Bertelsmann study therefore concludes:

“Resilience thus no longer necessarily

refers to the ability of a system to

return to the old and unchanged state

after a short deviation. Rather, adaptive

resilience is based on the ability to make

a transition to a possibly new state that

is no less satisfactory than the old state.”

12 Global Goals Yearbook 2020


RESILIENCE

THE DISCOURSE ON VULNERABILITY

AND RESILIENCE

Connections to other discourses

► Anthropocene: The debate about the Anthropocene shares similar

approaches with the discourses on vulnerability and resilience – especially

regarding socio-ecological systems.

Planetary boundaries: The discourse on planetary boundaries is strongly

linked to the debate about the Anthropocene and was mainly established

through the Stockholm Resilience Center, which was also involved in the

popularization of the resilience discourse in the context of socio-ecological

systems.

► Good life: The debate about a good life – for example in the context of “Buen

Vivir” in Latin America or Gross National Happiness in Bhutan – is gaining

importance on the political level in Germany as well as internationally.

► Security: While the vulnerability concept can be traced back to military

research, the discourse on resilience is increasingly taking up room in

debates on security policy. This is especially evident in the intense

psychological debate on vulnerability and resilience of soldiers in the

United States, and it is finding prominence within their training programs.

Source: UBA 2017: Nachhaltigkeit 2.0 – Modernisierungsansätze zum Leitbild der

nachhaltigen Entwicklung Diskurs „Vulnerabilität und Resilienz“

Back to the future or past?

Already in ancient times, the philosopher

Heraclitus knew that you cannot go into

the same river twice. And so it is with

the return to normality after an external

shock event. If one keeps this in mind

– and at the same time remembers the

frequency with which the concept of resilience

is used in politics – it is surprising

that most definitions are extremely

imprecise. A recent working paper of

the European Central Bank, for example,

says: “Resilience is understood here as

the capacity to minimise output losses

once an adverse shock hits the economy.”

This equating of resilience with the reduction

in growth impacts does not help

us. The definition is backward-looking,

and there is no reflection on how the

“new normal” can look and be assessed

after a crisis. A one-dimensional growth

path is easy to measure, but that is no

longer enough to explain a world that

knows planetary boundaries, conflicting

goals, and development goals. Let’s >>

EFFECT OF A MASSIVE IMPACT ON THE SYSTEM

Massive disturbance

e.g. revolution

System

Tipping point

System

The degree of resilience is measured by the strength of the

shock absorbed by the system before the original equilibrium

is finally destabilized (“tipping point”).

Damped vibrations

after regime change

Global Goals Yearbook 2020

13


take a closer look at the example of the

Covid-19 pandemic: In retrospect, the

pandemic mercilessly exposed the weaknesses

of our globalized world. These

include, in particular, the insights that

• those at the bottom of the wealth and

income spectrum are being hit the

hardest by Covid-19;

• there is underinvestment in almost all

healthcare systems around the world;

• (multilateral) institutions have badly

eroded;

• flattening the infection curve means

also flattening the economic heartbeat;

• there has been too big a focus of many

company leaders on “just in time” production.

At the same time, the discussion about

the lessons of the crisis is gaining momentum.

Economic recovery packages

of well over $4 trillion have been

launched all over the world to revive

local economies. This is a once-in-ageneration

opportunity; there will probably

never be so much money available

again in this century. Will we use this

money in the short, medium, or long

term? Are we going to use the thousands

of billions for a very concrete,

ecological-social transformation of the

economy? A different, better future

seems possible – with more solidarity

and sustainability as well as a fundamentally

rethought society.

But the defenders of the old world order

are also active: Lobbyists, industrial associations,

and political parties are at

their best worldwide. On the agenda

are therefore not only sustainability

goals, but also demands for subsidies,

tax cuts, the weakening of climate goals,

the postponement of the National Action

Plans on Business and Human Rights, etc.

These two opposing positions raise a

number of fundamental questions: Do

state interventions aimed at sustainable

economic transformation fit in a time

when many companies are struggling to

survive? Why should we spend billions

of dollars and euros to save jobs in the

automotive, tourism, and aviation industries

when such sectors may not have a

future in a low-carbon world anyway?

How do we know which industries will

no longer be needed in the future? Are

we using the crisis as an opportunity

for change, or is it immoral to mix the

plight of the crisis victims with social

goals and desires?

14 Global Goals Yearbook 2020


RESILIENCE

How does resilience work in

practice?

The answers to these questions will be

crucial in determining the strategies for

the post–Covid-19 world.

1. Economy

The main issue now is to realign supply

chains. Many experts suspect that there

will be a de-globalization. Production

will move closer to the sales markets

again. It is no longer a question of “just

in time,” but also “just in case.” However,

we must not forget the consequences for

workers in developing countries who

could be affected by de-globalization. The

American economist Barry Eichengreen

therefore warns: “But this is a small

problem compared to the impact on

labor. In other words, while there has

been no destruction of physical capital

in the pandemic, the risk of damage to

human capital is significant.”

2. Society

An exclusive interview with EU Commissioner

Paolo Gentiloni, who is responsible

for economic affairs as well as

the SDGs, highlights the link between

society, economy, and the environment.

We talk about state opportunities, global

interdependencies, and the dilemma

of sustainability as a community and

generational task.

The state and its international communities

play the leading role in absorbing

external shocks, writes Markus Engels,

Secretary-General of the Global Solutions

Initiative, in his essay. But for the

future, we need a debate about what

kind of protections we want to retain

for basic rights following this crisis. The

good news is: Populist heads of state and

government are part of the problem, not

the solution.

In a White Paper, The Zukunftsinstitut

describes four possible scenarios of how

the corona crisis

can transform the world. They are based

on two central basic coordinates that

describe the possible directions of development:

Successful relationships versus

unsuccessful relationships (optimistic

versus pessimistic), and local versus

global (disconnected versus connected).

This brings us to the important point that

crises not only change systems, but also

the people in the system. If acceleration

is the problem, then the solution, argues

the well-known sociologist Hartmut Rosa,

lies in “resonance.” The quality of a

human life cannot be measured simply

in terms of resources, options, and moments

of happiness, Rosa explains in an

interview in this Yearbook. Instead, we

must consider our resonance with the

world. Resonance and resilience can

perhaps be used synonymously.

3. Agenda 2030

What will be the new normal? What

will happen after corona? These are

frequently asked questions, but they do

not go far enough.

We had better ask ourselves: What are the

principles that will organize the future?

Guiding ideas such as “just transition” or

“leave no one behind” continue to play

an important role in this context. From

a sustainability perspective, “keep it up”

cannot be an option. Climate change,

planetary overexploitation, and a lack

of distributive justice speak against it.

From a transformation point of view, the

moment when there is less stability is

the moment when there is a potential

for much deeper and stronger change.

Everybody feels that the future is much

more open than it used to be. How that

moment of instability is used depends

on who is putting forward what kind of

ideas, who has influence, and who gets

more to say and to decide. A very vivid

panel discussion with Emily Auckland

(UKSSD), Julian Hill-Landolt (WBCSD),

Maja Goepel (Scientists for Future), and

Pietro Bertazzi (CDP) clearly shows the

connection between sustainability, crisis,

reconstruction, and pitfalls.

4. Global megatrends

What is important in all of this is that

we not only grasp the current crisis, but

also think about the other existing crises

and the coming crises. Only then will

our future be resilient.

a) Loss of biodiversity

Recent UN reports show that 1,000,000

species are threatened with extinction.

The IPBES Chair, Sir Robert Watson, says:

“The health of ecosystems on which we

and all other species depend is deteriorating

more rapidly than ever. We are

eroding the very foundations of our

economies, livelihoods, food security,

health, and quality of life worldwide.”

This has an economic aspect: According

to UN studies, the monetary value of

goods and services provided by ecosystems

is estimated to amount to about

$33 trillion per year. The other aspect is

health: As habitat and biodiversity losses

increase globally, the novel coronavirus

outbreak may be just the beginning of

mass pandemics, says John Vidal. In >>

Global Goals Yearbook 2020

15


his article, he warns that we are creating

conditions for diseases such as Covid-19

to emerge.

b) Climate change and consumption

In his essay, Harald Welzer warns that

the ecological problems of the present

day, and climate change too, are ultimately

due to the fact that expansive

luxury consumption unleashes its

destructive power, especially when it

becomes mass consumption. We as individuals

do things that we know to be

wrong but we cope with it astoundingly

well. Changing behavior means "fighting

our demons."

But there is hope: Project Civilization

is not over and continues still today.

But neither does it have a finite goal or

an ultimate solution. Society must be

adaptable to changing conditions and

requirements and deal with mistakes

and collateral damage – and therefore

be correctable.

c) Multilateralism

believes that the Amazon fires show

why we need global governance in the

Anthropocene.

d) The efficiency trap

The WBCSD states in a recent study: “In

the coming months and years, companies

will need to prioritize resilience-building

to ensure they are better prepared for the

next shock when it comes. For many, this

will mean establishing a better balance

between efficiency and resilience in everything

from supply chain configuration

to financial management.”

Unconsidered efficiency becomes a risk:

Overly complex systems and supply

chains are very sensitive. Agriculture

also teaches us that although monocultures

are very efficient, they also

lead to high vulnerability. Eichengreen

concludes: “For firms, enhanced security

and certainty will mean higher costs and

lower productivity, which will translate

into higher prices for consumers.”

The planetary limits of growth play another

important role. In our world, dealing

with limited resources is a constant reality,

and therefore normal. Mario Schmidt

writes an essay on the importance of efficiency

for sustainability: “In the market

economy, the profit motive of individuals

is used to accomplish this task. However,

the maximization of profits by companies

is only a means to an end and not, as is

often circulated, the goal in itself. An

economy that does not fulfill its social

function is ultimately impractical.”

The road to recovery is paved with uncertainty,

agrees EU Commissioner for

Economy, Paolo Gentiloni. And he adds

in his detailed interview that the EU

will continue defending multilateralism

while working to adapt it to the new

realities of our highly connected and

digitalized world economy.

A practical example of this debate on

multilateralism, the borders of the

nation-state, and the obligations of the

global community is the dispute over

the protection of the Amazon. Lenzi

16 Global Goals Yearbook 2020


The Planetary

Momentum

RESILIENCE

Asymmetric shocks, global mental

preparedness for change – the paradigm

shift and the economics of anti-fragility

Prof. Dr. Dr. Stefan

Brunnhuber

Professor for Sustainability

and Psychology

Member of the Club of Rome

Asymmetric shocks are the “new normal”

I Asymmetric shocks are shocks that hit human societies even

though we think we have done everything right, and even

though we believe we have not caused this shock. II Asymmetric

shocks affect human societies in an uneven manner,

hitting some harder than others. III Asymmetric shocks affect

entire systems in disruptive and extreme ways, requiring

interventions that go beyond well-known conventional tools

and instruments. Covid-19, global warming, financial crises,

loss of biodiversity, plastic waste, forced migration, terrorist

attacks, failed states, and ongoing deforestation are examples

of such asymmetric shocks.

These shocks can hit anybody on this planet, irrespective

of where they live, how old they are, how much they earn

– anytime and anywhere. In general, any system hit by an

asymmetric shock experiences stress and is put under >>

Global Goals Yearbook 2020

17


pressure to adapt to the new circumstances. Depending on

the severity of the stressor, its duration, and the system’s own

configuration and resilience, systems either have to readjust

the given rules to improve their governance in order to better

cope with the stressor, or they have to question the rules

of the game themselves in a more radical manner. In this

second alternative, the system needs to find new ways of selforganization,

a new set of rules, and new ways of doing and

processing. As a world community, we presently find ourselves

in such a situation. Asymmetric shocks have become the new

normal, and this requires us to change the rules of the game.

A

B

Rules of the game

identifying the rules

under which governance

should play out

Playing the game

improving, operating,

competing, and following

the rules of the game

Two forms of governance:

A rules of the game

B playing the game

Governance

Process governance

remaining agnostic about

the results like chess,

monopoly or market

Goal governance

determined by the targets

to be achieved like social

and enviromental projects

Though humanity has always experienced crises, catastrophes,

and conflicts, this time is different: As a world community

in the 21st century, we are better equipped with empirical

scientific evidence than ever; we have a deeper and better

understanding of complex, non-linear systems; we have dozens

of new disruptive digital technologies at hand that can help

us to navigate this Kairos moment; and we have a strong third

sector involving millions of non-governmental organizations

able to step in with their expertise and hands-on experience,

well-placed to change the world. In fact, this Kairos moment

helps us to better understand that, historically, globalization

started some 100 years ago with the trading of goods, followed

first by the exchange of capital flows all over the world, and

then by the exchange of services. Until 1989, globalization

followed the aim of increasing national wealth and well-being.

Following the 1992 Washington Consensus, however, globalization

became an end in itself, with isolated agencies and

individuals able to benefit, and nations themselves becoming

a means of enriching this globalized elite. This overstretching,

which lasted almost three decades, is now over. Now we are

entering “Globalization 4.0,” where we not only share goods,

capital, and services, but also where we are poised to share

common values such as trust, cooperation, reciprocal tolerance,

and agnostic solidarity. about We are starting to understand that we

remaining

the need results a failure-friendly like chess, environment in which we can make

monopoly mistakes or market and accept advice from others without losing face

– all on a global scale. It is this form of Globalization 4.0 that

will provide us with the required humility and grace, grit, and

determined by the targets

mindfulness to move forward toward a new era.

to be achieved like social,

enviromental projects

Dealing with uncertainty: Dancing with the system and

finding the right attractor

Global mental preparedness for change: The “Kairos

moment”

Any changes to the rules of the game require the mental readiness

to do so. For the first time in history, we are witnessing

a collective mental readiness across the globe for change for

the 7.5 billion humans on this planet. The viral pandemic has

triggered this preparedness. Governments all over the world

have proven they are willing to take radical steps and bold

decisions, embracing more far-reaching perspectives than

ever before. However, there are now two ways to go. One way

takes us back into a business-as-usual scenario, whereas the

other leads us forwards toward new thinking, making a new

paradigm possible. Humanity has not experienced an opportunity

like this for decades, if not centuries. This is a kind of

“Kairos moment.” In Greek mythology, Kairos was the god of

the right moment and the perfect opportunity. We are now

experiencing such a Kairos moment.

Never in history have we been confronted with so much

information, so much ignorance, and so many unknown

factors at the same time, and never have we had to take so

many relevant decisions under such uncertainties and time

pressures. The uncertainties we face are not entirely quantifiable,

and probability statistics will not help us to put a price

tag on them. They are not complicated puzzles we can solve,

but rather complex mysteries we can discover. These uncertainties

form part of the systems dynamic of every complex

system. They will not go away, but rather require us to adopt

a different attitude. There are several ways of dealing with

such uncertainties. The most prominent way is to create a

false illusion of control through increased regulatory efforts

and more data. Another way is to start avoiding complexity

through denial. A third prominent way is to adopt the so-called

fight or flight mode.

Either way, these approaches are insufficient and inappropriate

for coping with non-linear, complex systems. They

18 Global Goals Yearbook 2020


RESILIENCE

Degrees of globalization

Globalization 1.0

Trading of goods (terms of trade)

Globalization 4.0

Globally shared values

Globalization 3.0

Trading of services – digitalization

Globalization 2.0

Free capital flow – foreign direct investment (FDI)

◄ 1920 1980 1990 2020 ►

Globalization 4.0

Sustainability

100

Optimum

Anti-fragile zone

Natural ecosystems

will then start to engage and deal with

the dilemmas and paradoxes that will not

go away, we will begin to accept that the

unknown is part of any decision-making

and is sharply distinguished from purely

statistical probabilities, and we may end

up with the capability to distinguish

between “relevant” and “less relevant”

issues. If this assessment is correct, then

identifying singular cause–effect relations

through isolated experimental and

analytical designs that only rarely occur

in complex living systems will provide

us with little additional information to

solve complex problems.

Acknowledging this scenario, it will become

more rational for our risk assessments

to look into the future and identify

so-called attractors. Attractors are like

funnels that pull all of a system’s major

variables toward the future, rather than

these variables being pushed by singular

causal links from the past. Our financial

system, digitization, and shifts in our

gravity of consciousness constitute such

fundamental attractors.

Toward an anti-fragile economics:

Improving through failure

0

Resilience

diversity + interconnections

The anti-fragile zone: Improving through failure

cause asymmetric shocks, Black Swan effects, uncontrollable

exponential developments, unexpected knock-on effects, irreversible

tipping points, and feedback loops that nobody can

foresee. Instead, we need to learn to “dance with” or “ride”

the system. This might require us to take a mental pause and

embrace failure-friendly procedures that allow us to explore

new territories and engage in outside-the-box thinking, where

revision, critical public discourse, the introduction of new

ideas, and a new paradigm become the game changers. We

Efficiency

streamlined

Living in a complex, connected, and

constrained world in which non-linear,

non-sequential effects prevail and interdependencies

and multiple perspectives

dominate – a world in which we have to

operate within planetary boundaries and

are equipped with imperfect information

to change the course of history – we have

a collective interest not only in moving

out of the current crisis, but also in solving

the associated problems that caused

the crisis in the first place. The time after

one asymmetric shock is quite literally the time before the

next asymmetric shock. Acknowledging this, we can see that

complex systems find their optimum not in an ever-increasing,

expanding, and streamlined throughput per time, referred to

as “efficiency” (measured in global value chains), but rather in

a balance between efficiency and “resilience” (measured in the

amount of diversity and interconnectedness), sometimes called

the anti-fragile zone. This zone describes a situation in which

we can start to improve and gain from failure.

>>

Global Goals Yearbook 2020

19


The question is: How does this antifragile

zone translate into concrete

steps?

We will start considering new forms of

risk management whereby “total cost

analysis,” which takes the liability of

the entire value chain into account, becomes

more relevant. This would, in

consequence, honor circular “forms of

economy,” where we look at our business

not as a river, where everything downstream

is depreciated and outsourced,

but rather like a lake, where we need

to take potential negative externalities

into account. We will begin to decouple

business from globalization and reach

out to more local, regional, and national

clients and supply chains instead of

global ones. Multi-channel supply chains

and more regional markets will become

key. This process of “regionalization”

already started after the 2008 financial

crisis. Fifty percent of China’s trade is

now with Asia itself, and 70 percent

of the EU’s trading partners are other

EU members. The same is true for the

Americas. This trend will continue.

In such a situation, where less efficiency

and more resilience is required, we will

look very carefully at the concentration

and size of private businesses and

ensure that they are not “too big to fail,”

which would force the public sector and

taxpayer to bail them out when the next

crisis comes around. Instead, we will

favor small but high-performing businesses

(from SMEs to hidden champions).

This could also include new forms of regulated

credit default swaps that help private

companies to better hedge their risks.

Taking this argument one step further

would mean that there will be a renaissance

of governance, administration, and

regulation. This should include a new

mandate for monetary regulators (green

Quantitative Easing, parallel digital currencies,

sovereign green bonds), a new

set of antitrust laws that guarantee fair

market competition, higher quality, and

lower prices, especially for the digital

platform economy. This renaissance of

governance and regulation will put the

perverse subsidies of the agricultural sector

on the table and set up a new form of

political economic agenda, enabling and

ensuring that system-relevant industries

(healthcare, pharmaceuticals) and public

affairs (research and education, public

infrastructure) are properly regulated

for the good of the citizens.

Where digitization will further penetrate

our daily lives, our work places, and our

businesses as a whole, where millions

of jobs will potentially become replaced

by robots and automated industries, we

need to reframe the social fabric in an

intelligent manner by starting to provide

an unconditional basic income. This

would send the message that there are

no more “useless” people, instead turning

them into those “needed, wanted,

and required” for a new age and a new

society.

In a more general sense, we will need

to address the topic of commons and

clarify what a private good and service

is and what is better managed as a public

good. Healthcare, education, and infrastructure

are examples of the latter. This

would include a shift in our energy sector

away from the centralized fossil industry

20 Global Goals Yearbook 2020


RESILIENCE

Where digitization

will further penetrate

our daily lives, our

work places, and our

businesses as a whole,

where millions of jobs

will potentially become

replaced by robots and

automated industries,

we need to reframe

the social fabric in an

intelligent manner by

starting to provide an

unconditional basic

income.

toward more decentralized and regionalized

renewables. Social entrepreneurship will

gain momentum over Big Pharma, Big

Banking, Big Farming, and Big Energy,

where downsizing and rightsizing will

generate a sense of “small is beautiful”

that will become the new standard. This

could even mean that we shift away

from a more production-based economy

toward a more care-based economy, where

human-centered services (nursing, social

work, cultural creatives) are honored

and properly reimbursed. Any necessary

production will be done by a robot

anyway. This anti-fragile zone does not

stop at the societal level, but includes

new consumption patterns and lifestyle

modifications on a personal level, too.

There are countless examples, including

traveling on public transport, riding

a bike, becoming a vegetarian, being

engaged in neighborhood activities, and

so on. The following table summarize

major changes in the corporate business

model and in consumer behaviors to

ensure the shift.

This altogether will finally change our

gravity of consciousness, where mindfulness,

gratitude, humility and forgiveness

will set the path toward a fairer, greener

and more sustainable future. All this is

not an easy task, but it will help us to

better discriminate between the parallel,

multiple worlds we are living in simultaneously

that require different forms of

responsibilities. We might conclude that

instead of being observers and spectators,

we already have become indispensable

players who have the skin in the game.

This is the planetary momentum we

have right now to change the world.

The four "Rs"

Examples

Risk assessment

• Total cost analysis (TCA)

• Taxonomy, Recording, Disclosure (ESC-criteria)

• Regulated credit default swaps (CDS)

Regionalization

Regulation

• Decentralized energy supply and business value chains

• From production-based to care-based economy

• Circular economy

• Decoupling business from globalization

• Small is beautiful

• Renaissance of governance (taxation, surveillance, stress tests)

• Redefining the commons (healthcare; education, environment)

• New social fabric addressing digitalization (unconditioned income)

• Extended central bank mandate (green QE, parallel currencies, CBDC)

• Avoiding ‚ "Too big to fail" (anti-trust laws)

Reshaping behavior

• Individual mobility

• Diet preferences

• Housing and living

The four "Rs": risk assessments, regionalization, regulation, and reshaping individual behavior

Global Goals Yearbook 2020

21


Sociologist Hartmut Rosa


on Covid-19

“The most

radical

decelerator of

our time

The uncontrollable coronavirus has people worldwide

feeling uncertain, says sociologist Hartmut Rosa. But

the crisis may also harbor an opportunity. An interview

conducted by Elena Matera.”

22 Global Goals Yearbook 2020


RESILIENCE

Professor Rosa, in your books you write about

social acceleration in the modern age. What

effect is the coronavirus pandemic having here?

The virus is the most radical decelerator

that we have experienced in the past

200 years. There have been moments

like this from time to time in the past,

for example after September 11, or after

the volcanic eruption in Iceland. In both

cases, air travel came to a halt temporarily.

They were partial decelerators. Public

life was not affected.

It is historically unprecedented for the

modern age, which constantly feeds off

of acceleration, to decelerate as radically

as it has now. It’s as if it had stomped on

the brakes. What’s fascinating about it,

in fact, is that we are the ones stomping

on the brakes. It’s not as if the virus were

eating up our airplanes. We are placing

restrictions on ourselves as a precautionary

measure, which is remarkable indeed.

What are these restrictions doing to people?

For us, many things that were a matter of

course until just recently are now out of

reach: Businesses are closed, events are

canceled. As a result, our global reach

has grown much, much narrower, both

physically and in terms of time.

My theory is that we are always looking

to broaden our global reach, move faster,

go further. Right now, the physical reach

for most people is dwindling down to

their own four walls. And when it comes

to time, no one knows what things are

going to look like a week or two from

now. The virus is the epitome of a monstrous

unavailability.

Care to elaborate?

We try to make our world fully controllable,

predictable, reachable. Strangely

enough, these attempts tend to make

unavailability return in a monstrous way.

We’re experiencing that right now with

the virus. It’s new; we don’t know exactly

where it comes from, how it acts, or how

we can get it under control medically.

We can’t control it politically or regulate

it legally, and it has incalculable consequences

economically. We can’t see

it, hear it, or smell it. It is beyond our

everyday grasp. And society is acting as

one might expect: It’s trying to frantically

restore availability.

How do you mean?

We absolutely want to get the virus under

control. To do so, society is even

accepting massive restrictions. It’s fascinating

to watch, and we can all see it

in ourselves. I believe we are currently

in the midst of a huge experiment. It is

narrowing the global reach of the physical

world in a totally unforeseen way.

Is the widespread panic buying an attempt to

maintain our global reach?

You could say that. By setting our global

reach a certain way, we want things to

be available. Now people see a threat. So

they want to make sure that basic things

are available in case something happens.

Up to now, we’ve been sure that there

will be enough toilet paper in stores.

Now there’s this uncertainty that the

store might be closed tomorrow. We’re

finding out that not everything is available,

and now we have to learn to live

with it. But right now, we’re still in the

mode that we’re used to.

What do you mean by that?

You could call it “rat race mode,” where

we constantly need to check items off

our to-do lists. In this crisis, we can no

longer physically live out this habit of

“I need to go here real quick right now,

I need to go there real quick right now.”

But we can digitally. We’re saying, “I

need to post something here and post

something there, what’s in the news,

what are the stats?” We’re continuing

to accelerate in the digital world, with

even greater strength.

What impact is this shift in acceleration to the

digital world having? Are we going to miss

having contact with people in the long run?

I would say so. The big question is: Can

video conferencing or social media replace

real contact? I think it’s important

to have such options. But this kind of

communication doesn’t seem to have

the same quality as physical contact. >>

Global Goals Yearbook 2020

23


That’s why I believe people are currently

feeling that something is missing –

they’re feeling a sense of alienation, so

to speak. Alienation is a disturbance in

our relationship to the world. And it’s

something we can feel collectively right

now. We’re building up mistrust: The

doorknob, the banister, all that could

be contaminated. You can’t hug people

anymore, we’re distrustful of them. Our

relationship to the world is disturbed

as a result.

And how can we deal with that?

There are two options. One is to regain

control over everything, to flee into all

the social media channels – to post

something here, and post something

there. That’s what we normally do:

control, regulate, optimize. The second

mode is to listen to ourselves and the

world again.

I believe we should individually and

collectively try to shift into this second

mode. In this new situation, we are all

by ourselves in our homes or apartments,

maybe with a cat – along with our lives.

It could be an opportunity to create new

patterns of togetherness.

for the first time in a while. I call that

“resonance,” a mode of hearing and responding.

My hope is that it could perhaps

also be a moment of collective pause

and that we might now think about the

way we navigate and perceive the world.

People are supposed to stay at home and avoid

social contact as much as possible. Why are so

many people not following those instructions?

I think the problem is that we don’t

really notice the virus at all. Very, very

few of us are around truly ill people.

There’s no existential crisis that you

can physically feel. And that makes

it hard to grasp personal contact as

something bad.

People are programmed to seek contact.

Social relationships are one of the four

axes of resonance. That’s gone right now,


My hope is that

it could perhaps

also be a moment

of collective

pause and that

we might now

think about the

way we navigate

and perceive

the world.

One example is the concerts on balconies

that are taking place in Italy. We’re finding

a new way of being in the world. So

the social crisis situation may also harbor

an opportunity.

How can a society shift into this second mode?

At first, I thought, “This kind of forced

deceleration is great.” But apparently

we’re not finding our way out of the ratrace

mode that quickly after all. Maybe

we will with time. Right now, we’re

focused on the world around us.

Suddenly, we’re spending a lot of time

looking out the window, seeing the first

flowers, or really noticing the neighbors

24 Global Goals Yearbook 2020


RESILIENCE

since we’re no longer able to embrace

or meet each other. However, this crisis

also presents us with an opportunity to

discover the other resonance axes.

One of them is the relationship to objects

or things, such as a piano or a paintbrush.

Then there’s the axis of existential

spheres, such as art, nature, religion. And

the last axis is the self axis: feeling and

perceiving one’s self. The deceleration

is also having an impact on nature. The

canals in Venice are clear again, and the

first dolphins have been spotted off the

coast of Sardinia.

Could these changes also have a positive effect

for the future?

I’m skeptical here. Dolphins off the coast

of Sardinia will lead to people going to

Sardinia to see the dolphins. That’s the

mode of wanting to make things reachable

and available. You can’t switch it off

just like that. We can directly see the way

climate change is changing the world.

Yet, so far it has had zero effect on the

way we live and act. I’m also skeptical

because we have this compulsion to

want to go higher and faster and further.

The institutional logic of society is that

it can only maintain the things it has

– state pensions, healthcare, incomes,

jobs – through constant expansion and

growth. So we can’t just up and say,

“That’s enough.”

Why do you believe that?

I think it would lead to a crisis. That’s

why the great unknown right now is

not just how we want to live as human

beings, but also how we are going to

manage to do so institutionally. The

economic side of things is going to play

a decisive role here. For the time being, I

expect there to be a huge economic crisis.

After that, we’re probably going to want

to stimulate growth again. People are

going to have to consume, spend money,

produce – back to acceleration. But

maybe there’s hope yet of a change in

the way we think. We ought to see the

crisis not only as forced deceleration,

but perhaps also as a collective pause.

Would you have thought that this kind of

global deceleration was possible?

I myself, as a sociologist, am surprised

that all of the things I talk about are

suddenly apparent for all to see. The

deceleration is upon us in a way no one

would ever have dared to imagine. I find

this monstrous unavailability particularly

interesting. Suddenly there’s this

virus we don’t have under control. That

leads to a disruption in our relationship

to the world, to alienation. It’s hard to

say what the end result will be and what

it’s going to do to us. My hope at first

was that this forced deceleration would

be a great experience. But when I talk

to other people, I notice that it certainly

doesn’t feel like that.

Hartmut Rosa

One of Germany’s foremost

sociologists

Friedrich Schiller University,

Jena, director of the Max-Weber-

Kolleg, University of Erfurt.

Global Goals Yearbook 2020

25


26 Global Goals Yearbook 2020


POLITICAL LESSONS

The

EU RECOVERY

and RESILIENCE

PLAN

Two deals – one goal: European Green Deal and the

Next Generation EU deal both are committed to securing jobs,

promoting ecological projects, and fostering the long-term

transformation of the economy toward more sustainable

growth. We discussed this with Paulo Gentiloni, European

Commissioner for Economy, and asked him, in particular, of

the impact on Agenda 2030.

Covid-19 is a global crisis of historic proportions.

To be honest: We were not prepared

for this, and we face enormous uncertainties

predicting the future. Now the EU has presented

a comprehensive economic program as

a countermeasure. What gives you confidence

that this will resolve future problems?

We are indeed facing a crisis of historic

proportions. And as a result, our response

can only be historic, too. The European

Commission has shown that we are able

to act fast and that we are committed

to rising to the challenge. In May, we

proposed an ambitious recovery plan,

built around a new instrument called

Next Generation EU, together with a

revamped, long-term EU budget. Just

two months later, EU heads of state and

government agreed on a multiannual

budget for 2021–2027 worth €1,074.3

billion, and that Next Generation EU

would amount to €750 billion (consisting

of €390 billion in grants and €360

billion in loans). The total package adds

up to €1.8 trillion, the largest-ever EU

multiannual budget (amounting to 5

percent of the EU27’s GDP). Such a >>

Global Goals Yearbook 2020

27


NEXT GENERATION EU – COVID-19 RECOVERY PACKAGE

Grants

€390

BILLION

€360

BILLION

Loans

TOTAL:

€750 BILLION

€750

BILLION

• Capital raised on financial markets

• Repayment period until 2058

Investing in a green, digital, and resilient EU

Recovery and Resilience Facility:

€672.5 billion

loans:

€360 billion

grants:

€312.5 billion

• Legal commitments: by December 31, 2023

• Payments: by December 31, 2026

Horizon Europe:

€5 billion

Just Transition Fund:

€10 billion

ReactEU:

€47.5 billion

Rural

development:

€7.5 billion

RescEU:

€1.9 billion

InvestEU:

€5.6 billion

powerful financial and policy response

is needed to stimulate investment and

prevent structural divergences between

the Member States from growing further.

We need to prevent this great recession

from turning into a great fragmentation.

Yet, the road to recovery is paved with

uncertainty. Our latest economic forecast

shows even greater economic stress this

year than we anticipated a few months

ago, with an incomplete recovery next

year subject to many risks. But I am

confident that we are taking steps in the

right direction. The challenge before us

is enormous, but what is important is

that the awareness and willingness to

act are there, as are the necessary tools

to turn this crisis into an opportunity

to embrace the twin green and digital

transitions.

Recently, the EU Parliament adopted the EU

taxonomy of “Sustainable Finance.” NGOs have

extensively criticized the draft deals concerning

environmental sustainability, but social issues

have also not been given sufficient consideration.

What is your response?

Recovery and Resilience Facility: grants

Total grants: €312.5 billion

€218.75

BILLION

GRANT ALLOCATION

KEY:

• unemployment 2015-2019

• inverse GDP per capita

• population share

2021-2022

2023

€93.75

BILLION

GRANT ALLOCATION

KEY:

• drop in real GDP over 2020

• overall drop in real GDP

2020-2021

• inverse GDP per capita

• population share

The role of this piece of legislation is to

stimulate green investment projects by

putting forward a classification of what

is “green” – and, as such, instrumental

in implementing the Green Deal and

reaching our goal of climate neutrality

by 2050. As shown in our recent Eurostat

monitoring report on progress toward the

SDGs in the EU, it is with the environment

and climate objectives that the EU

faces the biggest challenges.

That doesn’t mean we don’t pay due attention

to social issues – to the contrary.

In the context of the InvestEU program,

28 Global Goals Yearbook 2020


POLITICAL LESSONS

sustainability is defined by three dimensions:

climate, environment, and social.

The Commission is currently working

on a methodology for sustainabilityproofing

against these three dimensions

of projects that are supported under

InvestEU. Moreover, the Commission is

fully committed to implementing the

European Pillar of Social Rights during

our mandate, which runs until 2024.

The Pillar is our compass for action

with respect to social issues. We have

already adopted a number of proposals

to strengthen the EU’s social dimension:

from gender equality to youth employment

and re- and upskilling. All of these

will play an important role in cushioning

the negative social consequences of this

crisis, including among the young. We

must do everything to prevent another

lost generation.

Many of the sustainability successes achieved

over the last years could fall victim to the crisis.

This is problematic because now is the time to

act. We need a (new) global strategy to “Leave

no one behind.” What do you recommend doing

to support UN Secretary-General António

Guterres’ “decade of action”?

We are confronted with the need to both

restart the economy and save jobs and

livelihoods, and accelerate our progress

toward sustainability in all its dimensions.

It is perfectly possible – indeed

indispensable – to not merely rebuild,

but to build back better. I stand firmly

behind the idea of a green and inclusive

recovery, whereby we seize this opportunity

to invest in skills, projects, and

reforms for a more sustainable future.

The Green Deal and the European Pillar

of Social Rights are our guides in

doing so. We will channel funds into

activities that will help us accelerate the

twin green and digital transitions, while

leaving no one behind. Our proposals are

commensurate with this ambition. Our

recently adopted strategy for integrating

and decarbonizing energy systems and

our hydrogen strategy, which aims to

further develop and upscale this clean

energy source, are cases in point. We

can only accelerate our progress toward

the SDGs if we act decisively and immediately,

drawing on the lessons learned

from the crisis.

Do we have to redefine the scope, significance,

and priorities of the SDGs?

I believe the framework of the 2030

Agenda for Sustainable Development

with its 17 SDGs is as relevant today as

when it was adopted in 2015. It covers all

of the elements that constitute our life on

this planet and shows how all spheres of

human activity – environmental, social,

and economic – are interrelated. The

current crisis has further highlighted

that fact. What we need now – in view

of the 2030 milestone as well as our

pledge to reach climate neutrality by

2050 – is to turn our attention firmly

to implementation. We have a wealth of

information on what the concrete challenges

are and a wealth of knowledge on

how to solve them. What we need is the

political willingness to act on all levels of

governance. Since the beginning of my

mandate as Commissioner, I have been

taking concrete steps to achieve the SDGs:

This year, we have integrated them into

the European Semester and will take

this exercise further in the coming years.

All of the deliverables of this Commission

contribute to achieving the SDGs.

Every Commissioner is responsible for

implementing the SDGs in their policy

area, while we are all jointly responsible

for implementing the 2030 Agenda in

its entirety. I can assure you that we are

taking this very seriously.

The pandemic is a taste of what is to come if

we do not rethink a world where nature is not

exploited. In this regard, how can national policies

and enforcement efforts be strengthened to

address habitat and biodiversity loss?

Partnerships for goals are an important

element of SDG implementation, which

is why, under my watch, we have been

actively engaging with civil society representatives

and other external stakeholders

to exchange views and learn from

their on-the-ground experiences. The

implementation necessarily happens

at the national, regional, and local levels,

while our role is to coordinate >>

Global Goals Yearbook 2020

29


“I believe that –

together with

the people

demanding a

better future

for their children

and exercising

their democratic

rights across the

world – we can

truly make a

difference.”

these efforts and provide frameworks

conducive to achieving the SDGs. The

European Semester is an important tool

at our disposal. While we already integrated

the European Pillar of Social

Rights into the Semester a few years ago,

we are now taking steps to better reflect

environmental and climate concerns.

This year’s country reports therefore –

for the first time – featured a chapter

on environmental sustainability, and

this is just the beginning. That way, we

hope to steer national measures in the

right direction, together with our Green

Deal-related outputs, such as the recently

adopted Biodiversity Strategy.

That brings us to a fundamental conflict: There

are global interests such as the protection of

biodiversity, climate change, human rights,

etc. These are the basics of a Global Governance.

On the other side, there are national

interests – and in some countries, nationalist

governments. They insist on their right to

national sovereignty. But we cannot have both,

for example protect and exploit the Amazon

at the same time. How will the EU handle

the divide between Global Governance and

National Sovereignty?

It is true that the interactions between

fairness, the Green Deal, productivity,

stability, and resilience sometime imply

trade-offs, and policymakers need to be

aware of these. But the SDGs as a whole

are a comprehensive economic, social,

and environmental model based on synergies.

I have a lot of faith that the tide for

populist governments, also due to their

disastrous handling of the pandemic, is

turning. What we are observing instead

is the mobilization of young people and

civil society around issues such as climate

change, good governance, and an economy

of well-being. The EU is, of course,

fully committed to spreading its values

and high standards globally, including

via its commitment to multilateralism

as the best guarantor of human and environmental

rights everywhere. We are

taking every opportunity to project our

leadership in sustainable development

globally. I believe that – together with

the people demanding a better future

for their children and exercising their

democratic rights across the world – we

can truly make a difference.

Multilateral institutions are not very visible

in the public discussions. It is the hour of the

nation-state. Is this the beginning of a new

political culture and global architecture?

The European Union has multilateralism

in its DNA and will always support

multilateral institutions, which are the

basis of our international order. At the

moment, we are, for example, committed

to finding a global solution for

digital taxation in the framework of the

international process led by the OECD,

because we believe that a common solution

applied internationally constitutes

the best way of achieving fair taxation in

the 21st century. However, we will come

forward with a new EU-level proposal

if no global deal can be reached by the

end of this year.

A good example of well-functioning

multilateralism at the service of the

weakest in our global community is

the Debt Service Suspension Initiative,

which offered 77 countries the chance

to suspend debt payments to their G20/

Paris Club bilateral official creditors

until the end of 2020. This will allow for

an immediate provision of liquidity for

30 Global Goals Yearbook 2020


POLITICAL LESSONS

health, economic, and social spending

to respond to the crisis. It is an important

step forward because it creates an

institutional framework to get China and

other non-traditional creditors on board,

while also making significant progress

toward transparency of debt flows and

conditions on the use of freed-up funds.

In short, the EU will continue defending

multilateralism while working to adapt

it to the new realities of our highly connected

and digitalized world economy.

This is the best way to defend and promote

the fundamental rights our union

is based on globally.

Covid-19 has revealed critical weaknesses and

blind spots, which international organizations

– including the United Nations, governments,

the private sector, and NGOs – must collectively

address. The word “resilience” is used very often

these days. What is the future architecture for

political resilience?

I am a firm believer in the virtue of

democratic accountability. In my role as

Commissioner, I am in constant contact

with the European Parliament, which

directly represents EU citizens. Likewise,

parliaments everywhere have to

remain vigilant and scrutinize their

governments, which will be especially

important in the recovery period as we

rebuild our economies and societies.

With so many flaws in our economic

system exposed and so much at stake,

I also find this a perfect opportunity to

draw up a new social contract. We have

to build a society where we rethink our

relationship with the environment, the

way our economies operate – including

ensuring that corporations pay their

fair share of taxes – how we take care

of our elderly citizens, and how we

help young people to have the best

start in life.

Thank you very much for the interview!

Paolo Gentiloni is a former

professional journalist and

graduated with a degree in Political

Science from the University

of Rome. He was Minister of

Foreign Affairs in Italy before he

became 57th Prime Minister of

Italy from 2016-2018. He has

been serving as European

Commissioner for Economy in

the von der Leyen Commission

since December 1, 2019.

Global Goals Yearbook 2020

31


10 Theses on the

for the State and Society

The coronavirus pandemic has plunged the whole world into a

state of health-related, economic, and social stress. This stress

has made it clear what is working – and what is not.

1.

The state and its international

communities play

the leading role in absorbing

external shocks

such as pandemics.

Dr. Markus Engels

Secretary-General

Global Solutions Initiative

In his book Political Theology, the legal

scholar Carl Schmitt concluded some 100

years ago that the “sovereign is he who

decides on the exception.” Based on this

definition, states and governments have

proven that they are entitled to make decisions

during the coronavirus crisis, and

that they are very capable of doing so,

by taking drastic measures to protect the

populace and putting together aid packages

worth billions. Every day, state-run

institutions have provided information

on the latest developments and issued

recommendations on what should be

done to control the virus.

The pandemic has rocked the plausibility

of predictions foretelling the end of the

state. That is something most people are

bound to be thankful for. After all, the

state – at least in its democratic form

– is a legitimate and neutral arbiter

that makes decisions based on verifiable

criteria, without pursuing its own

business interests.

32 Global Goals Yearbook 2020


POLITICAL LESSONS

2. situation to lead to a

Pandemics are proof

positive that we, as a

global community, are

all affected. But for the

renaissance of multilateralism, it is going

to require a common view that global

challenges can only be solved globally.

We need a new global narrative of kinship

and solidarity.

Joining together in a new spirit of unity

may seem easy if we follow the Hollywood

logic that we have seen a thousand times

before: A global peril befalls humanity,

bringing it together in its hour of need.

This plot has been cinematized countless

times, usually in connection with an

extraterrestrial menace that leads to a

new feeling of brotherhood on the planet.

Although the coronavirus pandemic is

undoubtedly a global threat, it has not led

to a resuscitation of multilateralism. Even

in the European Union, which has been

trying for decades to develop a common

post-national identity (albeit tentatively),

the first reflex was a national one. Once

the Covid-19 crisis has passed, we must

realize that pandemics, climate change,

extinction, and artificial intelligence are

challenges that can only be solved once

and for all through multilateral efforts.

3.

Democratic and federal

states are well positioned

to fight pandemics.

Even though the processes

may look complicated and arduous,

the democratic and federal state has done

a good job of mastering the crisis so far.

In Germany, the Bundestag is actively

involved in crisis management, and the

national government regularly consults

with individual, regional leadership.

Although individuals may try to make

a name for themselves in the fight for

the best approach, and although it may

not always be easy to understand why a

restriction applies in one place but not

in another, Germany’s leaders and parliamentarians

have acted appropriately and

prudently. They have kept the populace

informed and involved, and have avoided

looking for scapegoats. Moreover, local

and county officials have also been providing

information through the local

press on a regular basis, often turning to

social media. If ever there were a need

to prove how important a functioning

government with a legitimate claim to

power from the very top of the chain to

the very bottom is, then the coronavirus

crisis has done so, albeit unwittingly.

4.

Technocracy undermines

the ground rules

of how a democracy

works.

Some have argued that

virologists and doctors are the better

decision-makers. Media appearances by

experts may also have helped to calm the

debate. At the same time, it would be a

fatal mistake to draw the wrong conclusions.

As a matter of fact, only elected

representatives – and not experts – may

make decisions.

Weighing different interests, treading

carefully when it comes to decisions that

could infringe upon basic rights, and

setting priorities based on a plethora of

relevant information are of the essence.

All of that needs to be comprehensible,

well communicated, and subject to checks

and balances. Taken together, this sum

total of needs and wants is what you

would call “politics.”

5.

Populist heads of state

and government are

part of the problem,

not the solution.

It goes without saying

that populist elected officials can

be good crisis managers, just as levelheaded

democrats can fail in a crisis.

During the coronavirus crisis, populists

have displayed a pattern of behavior

that prevents successful management:

focusing on alternative facts, passing the

buck, and making off-the-cuff decisions.

All these behavioral patterns prevent

the world’s brightest minds from working

together and keep the international

community from concerting its efforts.

That makes populists part of the problem.

Nowhere is that more apparent than in

the United States, where the president,

who is completely out of his league, is

floundering his way through the crisis

and is responsible for tremendous suffering.

Whether or not this leads a majority

of voters to turn away from such narcissists

and responsibility dodgers, however,

remains to be seen. So far, some heads of

government have been quite successful

in capturing the hearts and minds of at

least half of their constituents with lies

and finger-pointing. As long as the other

half of the populace is divided into camps

or uninterested in politics, people will

continue to die due to populist public

policy – all because those opposed are

unable to attain a majority. >>

Global Goals Yearbook 2020

33


6. pandemic make new

The dramatic restrictions

of basic rights

in connection with

efforts to fight the

criteria-based approaches to limiting

basic rights a necessity.

In times of crisis and disaster, basic

rights must sometimes be restricted,

and there are procedures in place for

doing so. The current measures are a

massive infringement on the right of

assembly, religious freedom, and occupational

freedom, to name just a few.

That is permissible, provided that these

restrictions are imposed for a limited

time and have been legitimated through

a democratic process – and provided

that opposing viewpoints and protest

are given a forum.

May Minority Report serve as a

warning

However, measures that are difficult

to justify, if at all, have come up for

debate as a result of the coronavirus

crisis. It may well be that an app on

every mobile phone that transmits a

personal movement profile has the

potential to be used to great benefit in

pandemics. That same app may very

well also have the potential to reduce

crime in general. A thermometer worn

on the wrist might help us find our way

out of the Covid-19 crisis. It also might

help save the lives of people who have

a heart attack or stroke. Nevertheless,

such measures are largely incompatible

with our understanding of basic rights.

It is not even necessary to have watched

Steven Spielberg’s dystopian film Minority

Report to grasp the risk of misuse or

the fundamental harm to all freedoms

posed by such measures. Apart from

temporary restrictions in the event of

a crisis, which are legitimized by democratic

processes, basic rights continue to

apply in tough times. They also protect

individuals from the will of the majority.

Opposition has to be possible, even if

the opinions expressed may be wrong.

But because the Covid-19 pandemic

shows that governments have to be able

to act swiftly and flexibly, and because

our societies are now experiencing for

themselves how quickly supposedly

inviolable rights can be restricted, we

need a debate about what kind of protections

of basic rights we want to retain

following this crisis. The Federal Constitutional

Court’s decision on restricting

people’s rights to practice their religion

freely during the coronavirus crisis is a

good starting point and provides initial

orientation.

7. People have noticed the

Public services should

not be subjected to a

doctrine of efficiency.

lack of funding for basic

public services in the past and their

excessive privatization. Decrepit schools

and a shortage of police officers are just

one indication thereof. Germany has

largely been spared a hard neoliberal

hand, which is why the healthcare system

is still well-funded and organized,

and why we have so far seen fewer

deaths than other countries during the

coronavirus crisis.

Globally, however, economic progress is

not always the same as social progress.

That is why the coronavirus crisis also

illustrates how important a social security

net and investments in public

services are. The reluctance or inability

of workers to call in sick to work despite

showing symptoms of illness because

they will not be paid in the event of

absence, or because they do not have

health insurance, accelerates the spread

of disease exponentially.

Furthermore, the digital revolution is

only going to lead to more prosperity

and better lives if we invest enough

money in education and training.

The banking crisis did not trigger

a shift

It is essential to quickly turn the onetime

bonus payments for medical

workers into structural reforms for

adequate pay and working conditions

in the healthcare sector, and to help

generally adapt the healthcare system

to deal with an aging population. Still,

measures to strengthen the healthcare

and education systems are not going

to be enough.

Once the coronavirus crisis is behind

us, we are going to need a new understanding

of what is truly important to

us – and of what aspects of our lives are

so important to us as common, public

goods that we are unwilling to surrender

control over them through privatization.

The banking and financial crisis of 2008

and 2009 did not lead to a fundamental

shift toward more sustainability and

different ways of doing business. The

coronavirus crisis has once again exposed

systemic shortcomings and false

priorities. We ought to learn from crises

and develop a new understanding of

public services and public goods.

34 Global Goals Yearbook 2020


POLITICAL LESSONS

8.

The empowerment of

local communities and

value chains strengthens

the resilience of

societies.

Any calls to toss globalization on the ash

heap of history are mistaken, as are any

appeals to the populace to spend their

future vacations at the local swimming

hole. Indeed, there have long been many

things awry in global trade and mass

tourism fueled by budget airline tickets.

But a supposed return to the “good old

days” is not going to happen. They never

existed in the first place.

Important trade and value chains work

globally, and globally is the only way to

produce a wide range of essential goods.

Excluding entire regions from technological

advancement by way of deglobalization

would be a tremendous injustice

– one that would go well beyond the

injustice done daily by an imbalanced

international trade system.

Local businesses help the world

master the crisis

At the same time, it is important to

strengthen local and regional communities,

because they play a crucial role

in times of crisis. Those who have been

shopping at local supermarkets for years,

those who are familiar faces at local

bookstores and repair shops around the

corner, and those who maintain good

relationships with their neighbors are

better armed to survive the crisis.

Personalized and local initiatives –

people buying groceries for elderly or

at-risk neighbors, at-home offerings

from regional sports clubs and cultural

institutions, and delivery and take-away

services from local restaurants, to name

just a few – have played a vital role in

helping us master the crisis to such a

large extent so far. That is why every

one of us should think about whether

shopping at stores in our neighborhoods

or supporting local culture ought to be

given more weight in future spending

decisions.

9. Most families will agree

The efforts to promote

digitalization raise new

social questions.

that school closures,

digital instruction, and parents subbing

in as teachers are trying for all involved.

Although digital learning offers countless

benefits for students and professionals

to expand their horizons, digitalization

is creating a new social divide. That is

because households with little education

or money are technically ill-equipped to

take advantage of these global education

opportunities. As a result, children whose

parents are digitally well-equipped will

not only emerge from the crisis with

their education futures intact, but they

may also have been able to use their time

at home to gain an even greater edge.

Social inequality is on the rise

This structural inequality may have

nothing to do with Covid-19, but the

pandemic has widened the economic gap

that has been growing for many years

now. If strengthening digital learning

is one of the lessons of the coronavirus

crisis, then efforts should be undertaken

to even out the social impact by providing

children from poorer families with basic

digital tools as a public service.

10.

Overcoming

global

poverty and

strengthening

climate

protection and environmental conservation

efforts will be essential to avoid a

new era of pandemics.

The coronavirus pandemic makes clear

that poorer states are significantly more

affected by the spread of a virus. Often,

they lack a healthcare system and an effective

social safety net. With distancing

and hygiene guidelines virtually impossible

to implement correctly, a humanitarian

disaster is unavoidable. Help is of the

essence. The G20’s debt relief efforts for

lower-income nations is not going to be

enough, even though it is undoubtedly

the right thing to do.

The ecological aspect takes on a whole

new dimension in this context. Protecting

biodiversity, fighting pandemics, and

climate change are not issues that can

be flexibly prioritized from one day to

the next. On the contrary, they are causally

intertwined. Those who demand a

respite from environmental protections

and climate action in light of the coronavirus

crisis are irresponsibly working

in cahoots with lobbyists and have failed

to understand what is actually going on.

Helping the poorest of the poor is an act

of self-preservation. A pandemic outbreak

will have an impact on the entire world,

no matter where it begins. A second

wave of Covid-19 – with a high number

of deaths and infected individuals, and

with a renewed round of restrictions on

public life – would have the potential to

bring even wealthy states to their knees.

The article was originally published in

Tagesspiegel Online on April 16, 2020.

Global Goals Yearbook 2020

35


By Dr. Dominic Lenzi

Global Governance vs.

National Sovereignty:

To Whom Does the

Amazon

Belong?

The Amazon fires show why we need global

governance in the Anthropocene.

36 Global Goals Yearbook 2020


POLITICAL LESSONS

Several months ago, as fires engulfed

large parts of the Amazon,

world leaders, led by French

President Emmanuel Macron,

declared an international emergency and

pledged support to help Brazil. President

Jair Bolsonaro of Brazil responded with

accusations of colonialism and foreign

interference, asserting that the Amazon

is Brazilian territory and no business of

outsiders. One should, of course, take

political rhetoric with a large grain of

salt, especially in our current “post-truth”

era. For instance, roughly 60 percent

of the Amazon is within Brazilian territory,

while Peru controls 13 percent

and Colombia around 10 percent, with

the rest being shared by Venezuela, Ecuador,

Bolivia, Guyana, Suriname, and

French Guiana. But even if the Amazon

does not entirely belong to Brazil, these

claims reflect genuine conflicts between

state sovereignty and global governance,

which continue to hamper responses to

environmental crises. Addressing these

conflicts is especially urgent in the Anthropocene

– the new geological epoch

in which human activity has produced

interconnected ecological problems on

a planetary scale.

Previous international efforts to halt

rainforest destruction have often floundered

due to sovereignty concerns –

whether real or merely perceived. One

high-profile example is the Indonesian

Palm Oil Pledge (IPOP), adopted with

great expectations at the UN Climate

Change Summit in New York in 2014.

This initiative failed due to lobbying

from large palm oil producers and the

perception that the IPOP infringed upon

Indonesia’s sovereignty.

The jury is still out on whether the failure

of the IPOP was bad news for forest

conservation, or merely the demise of

a failed policy mechanism. But what is

clear is that sovereignty concerns played

a significant role in this failure.

These concerns about sovereignty continue

to hamper efforts to improve

global environmental governance. For

example, the carbon stored in the >>

Global Goals Yearbook 2020

37


Amazon, as in other rainforests, has also

long been envisaged to become part of a

global emissions trading scheme under

the UNFCCC’s REDD+ program of the

UN Framework Convention on Climate

Change (UNFCCC). However, sovereignty

again looms large, given the implication

that foreign agents – potentially

including foreign governments – might

end up owning carbon assets within the

jurisdiction of states. At the most recent

Conference of the Parties in Madrid (COP

25), President Bolsonaro claimed that

carbon stored by Brazil’s forests should

count in Brazil’s national emissions

quota, since they belong to Brazil, while

also being traded on an international

carbon market. Although critics have

pointed out that this would amount to

double-counting, the attempt to enclose

elements of a global environmental good

within the boundaries of the nationstate

reflects a paradox in the standard

logic of the nation-state: Annex territory

and be free to exploit its resources. The

problem, of course, is that for any global

environmental resource, “annexation” is

impossible without an effective global

regime – which is precisely what resource

sovereigntists do not want.

Previous attempts to classify something

as a “global common good” continue to

provoke controversy. From a biophysical

perspective, there is no doubt that

rainforests are essential components of

the global carbon cycle. There is so much

carbon stored in rainforests that their

destruction would doom all efforts to halt

climate change, tipping the planet into

a new and dangerous equilibrium, such

as a nightmare “Hothouse Earth” scenario.

However, countries with areas of

rainforest within their borders complain

that recognizing rainforests as common

goods in any jurisdictional sense would

be both unfair and an arbitrary loss of

territorial authority. There is some truth

to these complaints. For instance, any

attempt to classify rainforests as the

“Common Heritage of Mankind” would

require ceding territorial jurisdiction.

This principle was developed following

Maltese Ambassador Arvid Pardo’s proposal

to the United Nations to equitably

38 Global Goals Yearbook 2020


POLITICAL LESSONS

share the mineral resources of the deep

sea bed. The Common Heritage of Mankind

was subsequently enshrined in the

United Nations Convention on the Law

of the Sea, and the Agreement Governing

the Activities of States on the Moon

and Other Celestial Bodies (the “Moon

Treaty”). But because the Common Heritage

requires ceding territorial control

over whatever it governs, the principle

remains controversial, and its extension

has often been blocked by states wary

of any infringement of their resource

rights. Moreover, the current formulation

of the Common Heritage merely

concerns resource exploitation, and it

implies nothing for environmental sustainability

beyond standard protections

against transboundary harm.

The loss of sovereignty implied by the

Common Heritage principle encouraged

the development of the Common

Concern of Mankind, a principle that

registers a need for cooperation to govern

transboundary goods but is non-binding

and implies nothing about territorial

sovereignty. Thus, the UN Convention on

Biological Diversity (1992), the UNFCCC

(1992), and the Paris Agreement (2015)

affirm biodiversity and climate change

to be of common concern, but this does

not require anything from states. Thus,

even if some good can be described as a

“global commons” in descriptive terms,

in legal terms it has proved difficult to

articulate this notion without triggering

sovereignty concerns or without becoming

merely advisory.

The fundamental problem seems to be

the governance structure inherited from

the post–World War II global order,

which was established to ensure state

security against foreign aggression. Of

course, the architects of this global order

were ignorant about most, if not all of

the global environmental challenges we

now face. But as the existence of these

challenges reveals, the common benefits

of environmental goods are not properly

acknowledged by the international order.

Instead, free-riding upon many global

common goods continues, reflecting

the previous order of autonomous states.

States do not enjoy

complete autonomy to

use resources

as they wish, and

all states are

accountable if

their decisions

impose harm or risks

upon others.

Moreover, political rhetoric appealing to

isolationism and national sovereignty

risks dangerous ecological brinkmanship.

It has proved far too easy for critics of

multilateralism to wrap themselves in

a border-bounded nationalism, where

the interests of the state always trump

those of distant outsiders.

But while this global order does not

facilitate effective global environmental

governance, it is untrue that there is little

more than anarchy at the global level.

The assertions of Bolsonaro and others

overstate their case: States do not enjoy

complete autonomy to use resources as

they wish, and all states are accountable

if their decisions impose harm or risks

upon others. Although the international

legal principle of “Permanent sovereignty

over natural resources” does indeed establish

sovereign states’ unrestricted

rights to make use of resources within

their territorial boundaries, since the

Rio Declaration of 1992, states are also

obliged to consider transboundary harms

that might arise from activities within

their territories or in common spaces.

Moreover, states also have duties to cooperate

to address any transboundary

emergencies or risks that emerge. These

obligations and expectations are secured

through a mix of “hard” treaty law and

“soft” customary law, which, along with

informal regimes, constitute existing

global environmental governance. While

enjoying sovereign resource rights, states

are already obliged to consider the interests

of other states, to avoid creating or

exacerbating environmental risks, and

to assist other states should an environmental

problem emerge.

One might ask: If this is so, why has it

proved so difficult to address our global

environmental problems? The short answer

is that although these regimes have

laid the groundwork for future global

environmental governance, their spirit

has yet to become the letter of international

law. Thus, climate change and

biodiversity loss have yet to be brought

under effective global governance, despite

(or according to its critics, because

of) the signing of the Paris Agreement.

Furthermore, many requirements under

international environmental law

remain advisory, and agreements are

voluntarily entered into. States that do

not wish to play along with such governance

regimes can check out or obstruct

by refusing to comply with the spirit of

the law. A cautionary example may be

the International Convention for the

Regulation of Whaling. Signed in 1946

by 15 nations, it has now been ratified by

89 states. Yet, this convention only arose

after whaling ceased to be commercially

viable, and not when the existence of a

problem was first discovered. Moreover,

traditional whaling states such as Norway

have withdrawn from and reentered

the convention several times, and they

have never accepted the moratorium

on whaling signed into action in 1986

under paragraph 10e. Japan, by contrast,

officially pulled out in 2019 after maintaining

a whaling fleet since 1986 under

the clearly false pretence of conducting

scientific research. Although Japan never

produced any credible evidence that

they were conducting scientific research,

or that this research required killing

whales, it took nearly four decades for

the pressure from other signatories to

encourage Japan to withdraw. By withdrawing,

Japan intends to continue commercial

whaling, now without any false

pretence of conducting research. The

Trump administration’s withdrawal of

Global Goals Yearbook 2020

39


the United States from the Paris Agreement

on climate change is another case

of non-compliance, following decades of

obstructing climate governance under

the binding Kyoto Agreement.

One way to strengthen existing environmental

governance is for cases to

be brought that hold some states or

agents responsible for climate-related

harms. To date, there has been a conspicuous

absence of such cases concerning

activities affecting climate change or

biodiversity, such as building fossil fuel

infrastructure or clearing ecosystems.

For climate change, one key stumbling

block seems to be the law’s difficulty in

considering causally uncertain effects

based upon probability estimates. Different

climate models produce widely

varying estimates of the effects of actions

upon the global climate, and they cannot

always be aggregated into compatible

findings. Moreover, the standard model

in law is for actions with clear causes to

be attributed to actors who can be held

responsible. Yet, uncertainty is unavoidable

in estimating the sensitivity of the

planet’s climate system to atmospheric

greenhouse gas concentrations, or in attributing

the harmful effects of climate

change to particular agents, given the

problem of multiple causations.

Among other things, addressing this

challenge requires clarity on admissible

scientific evidence. Recent research on

attribution has proposed a modification

of the standard criteria for determining

risk attribution to capture the incentives

of actors who might select climate

models favorable to themselves, and to

establish clear rules for determining

admissible research as evidence that a

climate risk has been exacerbated. Research

on “carbon-majors,” that is, the

corporations that have emitted the most

CO 2

up until now, could also provide

the basis for such claims. Short of international

cases, there may be more

immediate success in citizen-led cases

against national governments, such

as the successful case brought against

the Dutch government. However, the

Dutch constitution explicitly invites

One way to

strengthen existing

environmental

governance is for

cases to be brought

that hold some states

or agents responsible

for climate-related

harms.

such litigation through a constitutional

requirement that the government secure

a healthy environment – a provision

that many constitutions lack. Nonetheless,

as the climate crisis worsens, it is far

from impossible for such cases to emerge.

Obviously, such a development would

be vigorously opposed by states worried

about becoming newly liable. Although

the spirit of existing laws against transboundary

harm and actions affecting

commons seems to apply to these issues

equally strongly (if not more so), such an

extension requires cases being brought

in order to establish new precedents and

interpretations.

At a deeper level, it has been claimed

for some time that more far-reaching

changes to the international order of

states are required. Although calls for the

establishment of a “world state” are rare,

a more promising proposal may be to

extend the Common Heritage and Common

Concern principles to recognize the

entire planet as the “intangible common

heritage of mankind.” This proposal is

based upon an analogy of nested jurisdiction

and overlapping ownership on the

model of the condominium: States would

enjoy ownership of their territories, just

as individuals own their apartments, yet

aspects such as windows or gardens can

be owned collectively. In this way, it is

claimed that effective global governance

requires recognizing the Earth system

as a legal entity in its own right, but

in a way that does not require nullifying

existing state sovereignty. Of course,

such proposals raise profound moral and

political questions. Yet, from a moral

perspective, it is hard to find convincing

moral reasons for states’ complete sovereignty

over natural resources, whether

one looks at securing the well-being of

citizens, warding off threats, or even a

historical relationship between people

and places. The distribution of goods of

global environmental significance imposes

costs and benefits upon the providers

of a resource and the beneficiaries. Yet,

the distribution of rainforests, as with

the distribution of coral reefs and deserts,

depends on very specific biological

and geological conditions, whereas the

world map was determined by human

occupations, migrations, and conquests,

with little regard for ecological borders.

As a result, from the perspective of any

state, the presence of a rainforest within

its borders is simply random chance. But

states without rainforests have often cut

down their forests and were never asked

to consider the global consequences. For

example, the United Kingdom today has

little more than 2 percent of its original

forests intact. Yet, nations with rainforests

are being asked to preserve far more

than 2 percent, and to do this because

of global consequences. These double

standards are at the heart of debates

about sovereignty and the global commons.

Perhaps until the Global North

ramps up mitigation, rainforest countries

are under no obligation to listen to their

hypocritical demands. However, if all

countries think this way, we ensure a

world of runaway climate change and

mass extinction, likely far beyond the

ability of even the richest countries

to adapt. Although Ecuador’s bid for

funding to offset the lost revenue from

oil extraction in its Amazonian Yasuní

National Park failed amid accusations

of environmental blackmail, it is far

from clear that the principle at stake

tells against Ecuador. Fairness was an

additional reason for the failure of the

IPOP: Indonesian policymakers consid-

40 Global Goals Yearbook 2020


ered it unfair for Indonesia to submit

to stringent deforestation conditions,

when other states were free to do as

they pleased. So if Ecuador is to forego

the same kind of fossil fuel extraction

that countries in the Global North have

long availed themselves of (and continue

to do so, despite current warnings of a

climate emergency), fair compensation

and development aid for non-carbon

projects would seem to be the only just

outcome.

It is morally intolerable that a single

nation could endanger all of humanity

by using natural resources in ways that

are still legally within their power. At

least in theory, Brazil could decide to cut

down all of the trees on its territory. The

architects of such a plan would likely not

survive long, but the mere possibility

that one rogue country could decide to

act in ways that endanger all is an affront

to the post-war order that the permanent

sovereignty principle was supposed to

protect. However, research suggests that

much less than this would be enough

for a global catastrophe: If the Amazon

lost between 20 and 25 percent of its

trees, the entire ecosystem would pass

an irreversible “tipping point,” leading

to its collapse. Humanity simply cannot

afford another decade of complacency on

international rule-making. Addressing

global environmental challenges requires

finding a way around sovereignty concerns,

whether real or imagined, while

ensuring the protection of the global

environmental commons.

Dr. Dominic Lenzi

Philosopher

Working Group on Scientific

Assessments, Ethics and Policy

(SEP)

Global Goals Yearbook 2020

41


Guidance and Arguments

for a More Sustainable World

During Covid-19 Recovery

42 Global Goals Yearbook 2020


ECONOMIC LESSONS

The world as we know is

rapidly changing before

our eyes. The coronavirus

pandemic is a profound

stress test for humanity.

Many of the sustainability

successes already achieved

could fall victim to the

crisis. The most vulnerable

to the crisis are the elderly,

workers in precarious

employment conditions,

and all the people living

in countries with weak

health, economic, and

political systems. What will

be the new normal? What

will happen after corona?

These are frequently asked

questions, but they do not

go far enough. We had

better ask ourselves: What

are the principles that will

organize the future? Four

excellent experts give us an

outlook.

Emily Auckland is UKSSD Network Director. UK Stakeholders

for Sustainable Development (UKSSD) is an open platform that

supports public, private, and voluntary organizations working

toward sustainable development in the UK. UKSSD’s mission is

to inspire and support all stakeholders to transform the UK into

a sustainable society by generating new partnerships and

innovative solutions for sustainable development by convening

and coordinating stakeholders from all sectors; and providing

thought leadership on the benefits for the UK resulting from

action for sustainable development and the implementation of

the Sustainable Development Goals.

Pietro Bertazzi is Global Director – Policy Engagement at

CDP. The Carbon Disclosure Project (CDP) is a not-for-profit

charity running the global disclosure system for investors,

companies, cities, states, and regions to manage their

environmental impacts. Each year, CDP takes the information

supplied in its annual reporting process and scores companies

and cities based on their journey through disclosure and

toward environmental leadership. Through their independent

scoring methodology, they measure corporate and city

progress and incentivize action on climate change, forests,

and water security.

Prof. Dr. Maja Göpel is cofounder of Scientist for future and

Secretary-General of the German Advisory Council on Global

Change (WBGU), which works on the science-policy-society

interface. As Secretary-General Maja Göpel divides her time

between management, public speaking, pioneer engagement,

and networking as well as continued research on system

transformations for sustainable development. Her personal

focus is on new prosperity models, with an emphasis on the

role of paradigm shifts as strategic leverage points,

summarized in her book The Great Mindshift (Springer 2016).

Julian Hill-Landolt is Director, Vision 2050 Refresh,

Sustainable Lifestyles at the World Business Council for

Sustainable Development (WBCSD), which is a global,

CEO-led organization of over 200 leading businesses working

together to accelerate the transition to a sustainable world.

Their mission is to help make member companies become

more successful and sustainable by focusing on the maximum

positive impact for shareholders, the environment, and

societies. Since 1995, WBCSD has been uniquely positioned to

work with member companies along and across value chains

to deliver impactful business solutions to the most

challenging sustainability issues. >>

Global Goals Yearbook 2020

43


Prof. Dr. Maja Göpel

Dr. Elmer Lenzen: Pietro, the IMF speaks of

the biggest crisis since The Great Depression

of the 1920s. Is the present pandemic a black

swan event no one was prepared for?

Pietro Bertazzi: Indeed, I’m afraid this

can be interpreted as a black swan event.

Especially in Europe and in the Western

world, it caught us by surprise. We were

definitely not ready for such a situation.

I was just chatting with a student from

Hong Kong, and she was surprised that

we did not have masks and sanitizers

more readily available in every town.

But now we have been experiencing

a total shift of priorities from all governments

around the world. The first

one has been about saving lives, and

the second one is about the economic

recovery. I believe this is important: We

cannot achieve sustainable development

or tackle the climate agenda without

stability.

Economic recovery is a good catchword. The

Covid-19 crisis shows how fragile societies are.

The interesting aspect for me is to see that it’s

Everybody feels that the

future is much more open

than it used to be.

probably not the stability and inertia that

prevent societal changes, but maybe it’s the

instability. Maya, can we switch to a more

sustainable economic path without the risk

of running a total loss?

Maja Göpel: From a transformation point

of view, the moment when there is less

stability is the moment when there is a

potential for much deeper and stronger

change. Everybody feels that the future

is much more open than it used to be.

How that moment of instability is used

depends on who is putting forward what

kind of ideas, who has influence, and

who gets more to say and to decide.

I keep on using the World Economic Forum’s

global risk report to remind people

that there was a clear understanding

about environmental issues, especially

climate change, being the rising risks on

the horizon. We know that decarbonization

means structural change in basically

all sectors, and this means we are going

to unbundle some of the structures that

are very stable now to build them anew.

Some elements are dying in order for


others to be able to grow, and that is

nothing that is against the economy. It’s

a very liberal idea of creative destruction

as Schumpeter called it.

The other aspect we should talk about

is solidarity: In the beginning, solidarity

was mainly for the people who were

most vulnerable if they got Covid-19. And

then there was a second round where we

have solidarity with the people that are

hit hardest by the anti-Corona measures,

who don’t have a buffer, whose incomes

are declining from one day to the other,

who are really worried because they

don’t have savings that they can depend

on. And this is where my country, Germany,

is really fortunate, because we

do have a welfare state and economicl

performance was so solid that the state

can borrow a lot of cash for very little

money.

So there have been a lot of programs

that are trying to increase solidarity

with those most at risk, both from the

pandemic and from the kind of lockdown

measures. But now we have to really

look at what is the level of solidarity

mid-term, because people are starting

to get very anxious about who gains the

most, now that we are battling about

the biggest stimulus packages. A lot of

people fear that those most connected

to industry – being the incumbents of

the old system – will get most of the

money. So we will go back to the old nor-

44 Global Goals Yearbook 2020


ECONOMIC LESSONS

mal, and the whole transformation that

was already on the way is pushed back.

Let’s talk a little bit later about solidarity and

the transformation of industries. But first I

would like to pick up on what you said about

risks. Julian, in a recently published World

Business Council for Sustainable Development

publication, one can read that all this was very

predictable. It was clear that such a pandemic

could show up, and it was clear that we have

chronic underinvestment in the health system,

we have short-term profit maximization by

many companies, and all these things were

undermining the resilience of society at all

levels. What happened to the highly praised,

sustainable concept of stakeholder capitalism?

Julian Hill-Landolt: We take a different

view of this (and our view is in line with

Nassim Nicholas Taleb’s, who came up

with the black swan concept): the difference

is between predictability and

preparedness. The Covid-19 crisis is behaving

like a black swan because we

were completely unprepared for it, but

it wasn’t a black swan because it was

entirely predictable. There is an international

body called the Global Preparedness

Monitoring Board, co-convened by

the World Bank and the World Health

Organization, to discuss health disruptions

like Covid-19. At the top of their

list last year was our preparedness for

a respiratory viral pandemic. A lot of

the resilience conversation in business

right now focuses on a shift from “just

in time” thinking to “just in case.”

In terms of the stakeholder capitalism

question that you asked, again I think it’s

important to think about preparedness.

The World Economic Forum had made a

relatively strong point at its meeting back

in January with Klaus Schwab releasing

his manifesto about the role of stakeholder

capitalism. Pace and momentum

have been gathering behind the need for

a shift toward a more stakeholder-led

model. The pandemic has brought into

sharp relief the failings of our current

systems – from underfunded healthsystems,

to economic systems that highly

are vulnerable to shocks, to increasing

risks of future public health crises stemming

from climate change or zoonotic

diseases. A move toward a stakeholder

model of capitalism can help to address

some of these failures and WBCSD is

working with its members and partners

to accelerate the shift.

That having been said, there is an urge

to force sustainability factors into all

conversations and decisions immediately.

I think we need to be respectful of the

phase that we are currently in, which is

about “rescue” in the immediate term,

and the phase that we are going to get

into, which is about recovery. And at

the moment, I think its important that

people get help receiving essential medical

care and putting food on the table.

Yes, we need to have conversations about

where stimulus money is going to go

but, at the end of the day, nothing will

recover if you have mass unemployment

and mass public anxiety about the state

of a given society’s economy.

Emily, your expertise centers on the UK’s progress

on the SDGs, on cross-sector engagement,

and localization of Agenda 2030, among

other things. So actually before this crisis or

pandemic started, António Guterres called the

beginning of the year a decade of action to

make the SDGs happen. Instead of action, we

are experiencing a lockdown. Are we expecting

a lost decade in terms of the SDGs, or a swing

in the right direction?

Emily Auckland: It slightly depends on

my mood on the day as to how I answer

that question. In the UK context, we

started this year with UKSSD launching

our action plan for the SDGs with our

network to say: Actually, if we all work

together, we can do this, and this is what

we need to do. So we started with a really

positive outlook, and then obviously

everything has changed since then.

But nevertheless, we have seen some

really positive signs of the types of behaviors

and attitudes that are going to be

necessary for achieving and implementing

the SDGs: The way that businesses

have responded to the crisis, many of

them have had to pivot their product

lines, many of them have developed

really progressive approaches to partnerships

and to communities. If those

behaviors and those attitudes continue,

then maybe we do stand the chance of

making progress with the SDGs.

Similarly, in the United Kingdom, I think

it’s very fair to say that, ever since the

vote on the EU referendum, and leading

up to that, there was division in

our society. The pandemic has created

– certainly at the community level – a

sense of unity in our society that we

haven’t had for a while, and in the face

of that crisis we have come together. If

we can continue to use that community

unity, we have an opportunity to

really localize the SDGs and to achieve

them by 2030. But it depends on what

happens now within government, what

decision-makers take forward in terms

of economic stimulus, what the recovery

program looks like, what happens globally.

It’s not a lost decade yet, but it feels

like it’s just too soon to say either way

what is going to happen next.

Stimulus is a good keyword for passing this

question to Maja. There are billions of euros,

dollars, or British pounds waiting to stimulate

economies and societies. This is probably

a once-in-a-lifetime opportunity because in

this generation, we will not have a second

opportunity to invest so much money. Share

with us your wish list! How should we spend

it to get as much sustainability and as much

Agenda 2030 as possible?

Maja Göpel: I would actually like to

tie it to the points that Julian has made

because chipping away has already happened.

Every company that was sincere

in contributing to sustainable societies

has known about the collaterals. Most

of the businesses I speak to say we need

legal signals so that we can shift, >>

Global Goals Yearbook 2020

45


especially under the pressure of shareholder

orientation and short-termism.

If we can continue to

use that community unity,

we have an opportunity to

really localize the SDGs

and to achieve


them

by 2030.

Emily Auckland

So my wish list is, in particular, a good

combination of public and private money

in order to foster value chains of decarbonization,

circularity and maximum

resource use reduction. Even if we were

expecting a phase where sales will be

lower because of demand not being there

to the same degree, we could have lots

of very, very positive economic activity

in form of transformative jobs, and it

could be financed with public money.

At least that comes into my head. I am

absolutely surprised how little that is

discussed, because it could go straight

into the pain points that we are looking

at: People are totally concerned about

their incomes, totally concerned about

job losses, totally concerned about losing

structures in the economy that have

worked, but they are also concerned

about rebooting the old models that

we know are behind the worldwide risk

society that we have. And in addition, it

is really the moment for strong G7 and

G20 action on finally redirect subsidies

from “fossil fuels into renewable ones.”

Let’s pass the question to Julian. Isn’t it quite

difficult to identify in advance economic sectors

that are not needed in the future?

Julian Hill-Landolt: I totally agree with

what Maja is saying, that there is this

mass of opportunity and we know what

we should do – we had been thinking

about the kinds of transformations that

needed to occur before the pandemic hit.

But as I said, the problem at the moment

is the difference between rescue and

recovery: It’s very hard to suggest that

certain things shouldn’t exist during that

rescue period. And then in the recovery

period is where we have to start asking

questions about where we go. One way

we can influence the direction that we

head in, is through using transformation

of legacy systems, infrastructure, industries

as a way of generating the demand

that will be needed to rebuild economies,

46 Global Goals Yearbook 2020


ECONOMIC LESSONS

with funding going toward things that

line up with our sustainability ambitions.

However, we need to be careful about

trying to remove, in one step, aspects

of our society that we don’t necessarily

agree with. The standard punching bag

for many is the airline industry, which

isn’t really that fair – their proportion

of global emissions is actually not that

enormous. WBCSD does not have any

airline members, so I’m not defending

the airline industry, but the global airline

industry employs about three and a half

million people and represents two or

three percentage points of global GDP.

I think we need to focus on generating

demand in service of our sustainability

goals, rather than destroying where we

don’t think it aligns. It would be cleverer

to link the outcome of what we were

working on to the kinds of things that

are required right now, like recovery,

stability, jobs, etc.

Maja Göpel: Julian, you put your finger

exactly on the wound: There is something

like a license to operate if business

practice is not helping us deliver on the

needs of the people in a sustainable way,

but increases the risks. We cannot say:

We can’t touch them. That is a failure

of the state, and I think it’s really helpful

to look at what Franklin Roosevelt

put forward in his New Deal: The state

needs to stop a race to the bottom and

thus support that the pioneers can up

the level of how business is performing

and not the laggards.

When I listen to European Commissioner Frans

Timmermans, the cure seems very clear: We invest

the money in climate-sensitive technologies,

in the Green Deal, and this will give us in Europe

a competitive advantage. That all sounds too

good. Pietro, does CDP share this view?

Pietro Bertazzi: I am glad that you

mentioned Timmermans because I was

thinking about referring to his recent

statements, where he talked about linking

the recovery to the European Green

Concretely,

we want to

see companies

that have been

beneficiaries

of economic

recovery

policies to

commit to

low-carbon

transition

plans.

Pietro Bertazzi


Deal. He was actually trying to push

environmental safeguards and the environmental

agenda forwards. Because

at the same time, some business associations

have been trying to push back on

this environmental agenda to put the

economic recovery in front. I fully agree

with Maja that we should be thinking

long-term, but unfortunately I believe at

the moment the thinking is still shortterm.

And that’s because we are governed

by fear. During the pandemic, which in

some sense is very similar to a war – you

try to fix just what you see in front of

you.

We do have a wish list at CDP, and of

course it won’t be a surprise to you that

we want to see the economic recovery

be linked to the climate agenda. We

believe in just transitions, and so all

industries should be helped and get recovery

support if the recovery package

is linked to long-term environmental

and climate goals. Concretely, we want

to see companies that have been beneficiaries

of economic recovery policies to

commit to low-carbon transition plans.

The second thing that we would like to

see is getting companies prepared for

the environmental and climate crisis.

How can we do that? We recommend

disclosure aligned with the TCFD recommendations,

which help companies

make assessments about the risks that

climate change poses to financial stability.

Emily, we talked a lot about the recovery of

the economy, but what about the recovery of

communities? >>

Global Goals Yearbook 2020

47


Emily Auckland: In the UK context,

we do have a lot of influential voices

delivering a message to government

that the recovery needs to be a green

recovery. Our position on that is that it

also needs to be a socially just recovery,

and that’s where the SDGs can be helpful.

They should be used as a way to

frame decision-making to check that it is

coherent and that it addresses multiple

challenges at the same time. Those of us

who are more immersed in sustainability

recognize that this is all interconnected,

and that what we are seeing socially in

our communities is a manifestation of

global issues. So I think there is a greater

need for a recognition of the interconnectedness,

of the way that we live at

the global, national, and local levels

when it comes to recovery programs.

We do actually have some really good

leadership within cities in the UK when

it comes to recovery planning. I mean

it’s early stages, but some of what we are

hearing and seeing is certainly a call for

an inclusive, just, and green recovery. We

have city governance that is decentralized,

and they have certain powers, but

they don’t necessarily have all the powers

they need to do what they would like

to do to respond to their local contexts.

That’s why we need locally, nationally,

and regionally relevant responses to

these issues. And if we want to see our

societies come together to address these

challenges, then the SDGs help us have

those conversations, open up those dialogues,

and give us a sense of direction.

You mentioned the importance of dialogues

and participation. But reality is a bit confusing.

We have these days many people going on

the streets fighting for their rights. It sounds

like a fantastic human rights story, but it is

not because some protestors are just angry,

some are conspiracy theorists, right-wingers,

crackpots, etc. Are we facing a kind of very

aggressive debate culture, where it seems to me

that only the loudest voices are being heard?

Emily Auckland: It’s a good point. There

is a huge polarization of views, and I

think perhaps those initiatives, organizations,

partnerships, idealists who are

calling for transformation right now

need to find ways to collaborate. What

I have learned through stakeholder engagement

is that by having a collective

sense of purpose, we are able to overcome

a lot of the differences. Whether

we are talking about political polarization

or whether we are just talking about

the dominance of certain agendas, we

see a tendency to be very protective of

those agendas, and I think we have to

let go of some of that protectiveness

and drop our barriers a bit if we are to

find ways to work much more collaboratively

and influence people. The SDGs

can help us to do that when it comes

to building narratives that are able to

reach and influence a larger number

of people.

Pietro, how can we foster ambition to go the

right way, be it with climate change issues or

other issues?

Pietro Bertazzi: Ambition is something

that we really tackle at CDP, especially

with the support of the Science Based

Targets initiative. The UN Secretary-

General just earlier this week issued the

SDG Progress Report and warned that

Covid-19 could imperil the progress of

the Agenda 2030. Therefore, at CDP we

encourage companies to set sciencebased

targets to make a real impact in

progressing the climate agenda. In an

open letter, more than 150 global corporations

participating in the SbT initiative

urged world leaders to pursue a net-zero

recovery from Covid-19. This is a very

practical example of what Maja was

talking about – transformation of the

system. We can indeed work together

to try to readdress and reorientate the

system at large.

We are living in a complex world, and we have

to find a new kind of narrative to show the

positive side of such a transformation. How

can we pour more happiness and more positive

thinking into Agenda 2030?

For a lot of

people, their

pandemic

has been

absolutely

awful.


Maja Göpel: Make sustainability the easy

outcome, and make it less hard to live a

sustainable life and lead a sustainable

company! I would really love to see people

stop repeating that sustainability is

about bogging down, that sustainability

is about prohibiting, that sustainability

is about less, and not much fun. Most

people, when you talk to them in private,

know that things have to change. So I

don’t appreciate when people’s presumably

relentless needs are being abused in

a discourse that describes sustainability

as something unpleasant. We are far

beyond that point. Sustainability is a

desirable vision for many people, and

this is what we should emphasize and

use new technologies, new ways of doing

things to make it reality: We always talk

about the trade-offs between the social

and the environmental. If there was

anything that has become visible during

Covid-19, it’s the trade-ins between

better environmental surroundings and

less pollution and people’s health and

people’s well-being. This holds true for

richer and poorer people alike.

48 Global Goals Yearbook 2020


ECONOMIC LESSONS

We are going to do that through our

massive advertising budgets, but actually

it’s not our fault if they buy those

products. And governments are saying:

Well that is capitalism, right? It’s up

to free markets, that’s how the system

works.

I have worked in community development

with vulnerable and marginalized

groups, and I think there is very often

an assumption that if someone is on

the breadline that they don’t care about

things. And actually they do, they just

don’t have the platform to say so.

Julian Hill-Landolt: Just one remark: I

just feel we might be using a view of the

public that is not as broad as it needs to

be. I am a committed environmentalist,

I want the world to change. But I

don’t see a world yet in which people

are as open to changes as we (people

working to bring about more sustainable

societies) want them to be. And I

don’t see a world in which people are

sufficiently well-off, stable, and secure

to have the time available to care about

these things, particularly right now. For

a lot of people, their pandemic has been

absolutely awful. There are millions

who have lost their jobs, who don’t

have outdoor spaces to use, who have

no access to healthcare, or who live in

countries with no safety net and therefore

have to keep on working because

they live from one meal to the next. So,

it’s important for us to have empathy

– as governments, as companies, as a

sustainability sector – and have the

right conversations with people. I agree

wholeheartedly with everything that has

been said. But unless we get the public

Julian Hill-Landolt

on board, we won’t see transformation

at the rate and scope required.

Maja Göpel: Here I would like to add

that being forced to do things that are

environmentally harmful is not the

same as not caring about these effects.

That is exactly my point when I say we

need to pull the social and environmental

co-benefits of sustainability proposals

and policies to the forefront. Justice runs

across both domains and to me is a key

building block for acceptance.

I would like to turn to Emily.

Emily Auckland: I’m going to be a mediator

and sit somewhere in between

the two of you because I think that both

points are right. I think that there is

an assumption that people can’t make

the right decisions, and there has been

a history of business and government

behaviors that reinforce that within

society. So we are going to push them

toward these products that are not good

for them and are not good for the planet.

I also think that business and government

have to take really serious responsibility

for their role in consumer

behavior. I heard a quote recently from

Myles Allan, who is the physicist that

came up with the net-zero concept. He

said that we cannot entrust the future

of the planet to the individual decisions

of eight billion people, and I think that

is ultimately it. We can’t say it’s down

to individual choice to change these big,

complex, systemic issues. It is down to

those that have the power and that are

able to pull the right levers for change.

Pietro, what are your remarks or your narrative

for Agenda 2030?

Pietro Bertazzi: Well, actually, I think

we should highlight what is possible,

because there are some niches where

things are actually happening and going

in the right direction, and we should

put a spotlight on those. In Canada, the

government did link their economic

recovery package to the climate agenda.

Companies that want to be beneficiaries

of the recovery funds must disclose

their climate risks in line with the TCFD

recommendations. That’s great. Why

can’t we propose this to other jurisdictions?

The interview was conducted by Dr. Elmer

Lenzen, publisher of the Global Goals Yearbook

and chair of the macondo foundation.

Global Goals Yearbook 2020

49


By Meaghan Muldoon

Covid-19

Makes

ESG Factors

More

Financially

Relevant

The tremendous toll of the

Covid-19 crisis – on health,

economic well-being, and

everyday activity – has

precipitated a widespread

reassessment of the way we

live our lives. While the market

viewed 2019 as a watershed

year for the mainstreaming

of sustainable investing, we

expect that the response to

the Covid-19 crisis in the first

half of 2020 will prove to be

an even more meaningful

test case for – and evolution

of – the global sustainable

investing landscape.

50 Global Goals Yearbook 2020


ECONOMIC LESSONS

Prior to the pandemic,

there were two core hypotheses underpinning

the growth of sustainable

investing. First: that broad sustainable

exposures could not only perform in

line with traditional benchmarks (moving

away from the “financial trade-off”

stigma), but could in fact build greater

portfolio resilience by better weathering

market downturns. Second: that investors

were on the front-end of a long-term,

structural shift in

preferences in favor of sustainability,

which would lead to a major

reallocation of capital and ultimately a

revaluing of assets and risks consistent

with these preferences over the course

of many years.

Market performance and market behavior

during the first quarter of 2020 have

reinforced both hypotheses. The Covid-19

crisis is the first real test for sustainable

strategies during a period of historic

financial

market stress since sustainable

investing has gone mainstream,

and although one quarter is short and

certainly not determinative, what we

observed was meaningful.

First, from a performance perspective,

sustainable strategies demonstrated

more resilience than their traditional

counterparts. From an index perspective,

Morningstar reported that 51 of their 57

sustainable indices outperformed their

broad market counterparts in the first

quarter, while MSCI reported that 15

Global Goals Yearbook 2020

51


ESG

Second, rather than fleeing sustainable

funds in favor of traditional strategies,

the market saw investors accelerating

into sustainable strategies during the

period of massive market volatility, making

the move into sustainability a part

of their portfolio rebalances. In the first

quarter of 2020, global sustainable openended

funds (mutual funds and ETFs)

brought in $40.5 billion in new assets, a

41 percent increase year-over-year. Meanwhile,

US sustainable funds attracted a

record $7.3 billion for the quarter. That

investors used an extraordinary market

drawdown as an impetus to grow sustainable

exposure in their portfolios is

evidence of the persistence in investor

preferences toward sustainability.

With this experience in mind, how do

governments, businesses, investors, and

stakeholders start to understand the

sources of resilience during these past

few months, and how will the experience

of Covid-19 change sustainable investing

as we return to a new normal? What

have we learned?

of their 17 sustainable indices outperformed

over the same period – consistent

across geography and methodology.

In active mutual funds, our research has

found that open-ended funds that score

in the top 10 percent of Morningstar’s

sustainability ratings have significantly

outperformed low-scoring peers (bottom

10 percent). Specifically, a majority of

high ESG-scoring funds landed in the

top half of performance in their Morningstar

category, while low ESG scorers

were more likely to be near the bottom.

Not only has Covid-19 validated the

growing role for sustainable investing

strategies in financial markets, but it has

provided important new information to

existing notions of materiality. Our investment

conviction is grounded in the

expectation that companies with strong

profiles on material sustainability issues

have the potential to outperform those

with poor profiles. The breadth and scale

of the Covid-19 crisis has prompted investors

to reevaluate how environmental,

social, and governance (ESG) information

can be used to help identify investment

opportunities and risks.

52 Global Goals Yearbook 2020


ECONOMIC LESSONS

Case in point: In a mid-April internal survey

of our own investment professionals,

more than two-thirds of respondents said

they believed Covid-19 would make ESGrelated

factors more financially relevant

to a firm’s bottom line going forward,

even in the short term. Equally interesting,

respondents signaled a shift from an

“Esg” focus pre-crisis to an “ESG” focus

moving forward – with the materiality

of S and G considerations seen in heightened

relief during the crisis and response.

The reason for this is clear: The Covid-19

crisis is above all things a health crisis.

Companies – acting under the scrutiny

of public authorities, unions, and

broader society – have had to quickly

plan and adapt to ensure the health and

safety of their employees, demonstrate

commitments to safeguard jobs, and

mitigate the worst consequences of activity

loss for customers and supply chains.

Our research has found that across 15

leading sustainability themes (five each

across environmental, social, and governance

pillars), the strongest relationship

to short-term performance during the

Q1 market displacement was found in

customer relations (“S”), firm culture

(“S”), and board effectiveness (“G”) –

all indicators pointing to adroitness in

pivoting quickly to address immediate

stakeholder needs.

Just as resilience and adaptiveness have

been valued in the near term, maintaining

a strong “social license to operate”

will matter more going forward – particularly

among companies that have

received public support, or those that

have suffered less and may be better

positioned to contribute. Embedded in

this stakeholder focus is the transformation

of the core principles of corporate

governance: Companies are facing pressure

from governments around the world

to cut dividend payments beyond the

lifetime of the crisis, to reassess executive

remuneration, and to overhaul risk

management policies to better prepare

for systemic risks. In the longer run, the

manner in which firms serve their stakeholders

during the Covid-19 outbreak

may prove to be a key differentiator for

companies looking to accelerate out of

the crisis on the back of strong employee

satisfaction, corporate culture, and brand

reputation, especially in regulated sectors

and those that will benefit from

public financial support.

In short, the rising salience of stakeholdercentric

issues in the Covid-19 crisis has

reinforced a shift in the balance between

shareholder and stakeholder capitalism,

with health, social, and employment

concerns moving workers and the community

into the investor’s focus.

Despite the very human nature of the

Covid-19 crisis, its lasting impact on how

investors price sustainability considerations

will not just be an “S” and “G” story.

The experience of a global health pandemic

has also made the slow-moving,

catastrophic consequences of climate

change, deforestation, and other onceabstract

threats to natural capital suddenly

much easier to imagine. As we

move into the new normal, a legacy of

the Covid-19 crisis will be a validation of

the structural shift toward sustainable

strategies, and an evolution of material

sustainability insights focused across E,

S, and G.

A final way the Covid-19 crisis may shape

the future of sustainable investing is an

increased focus on mapping ESG factors

onto the United Nations Sustainable

Development Goals, as governments internalize

new social and environmental

challenges and as stakeholder capitalism

gains traction. The SDG framework is

well-adapted for alleviating the worst

social and economic impacts of the

Covid-19 crisis, as well as the natural

capital issues that lead to the conditions

which make future pandemics more

likely. Better understanding the alignment

between the SDGs and financial

materiality – where doing good also

means doing well – could open a path

for impact objectives to also benefit from

a broader market reallocation to sustainable

strategies.

Meaghan Muldoon

Managing Director

Global Head of ESG Integration

at BlackRock

Global Goals Yearbook 2020

53


The Corona Effect

Four Future Scenarios

How will the pandemic

change the way we live

and do business? The

Zukunftsinstitut describes

four possible scenarios of

how the corona crisis can

transform the world.

1. Total isolation:

Everyone against everyone

→ Welcome to the Super Safe Society! Society

is once again clearly defining itself

as a nation – because security can only

be guaranteed if the boundaries of the

security zone are clearly defined. Security

comes first. Every man for himself. The

state uses all available means to protect

its citizens – even if that means stirring

up deep-rooted fears or artificially

scarifying food. People therefore use all

possible open spaces to grow their own

fruit and vegetables. The black market

and bartering are also flourishing.

→ De-urbanization: The countryside is

gaining power. Those who can, move out

of the city, to feed themselves – and earn

good money by supplying impoverished

city dwellers with food. The trend toward

single life, ever smaller apartments and

co-living, reliance on public transport,

and global commodity flows has made

the urban population dependent. The

urban hipsters have become a precarious

class.

→ Germophobia, the longing for sterility,

has steadily increased mistrust of

products whose origins cannot clearly be

traced. Fruit and vegetables are clinically

disinfected before consumption, and

research into safe packaging is being

conducted at full speed. Imports have

been restricted because the fear of germs

being introduced via products from

abroad is too high. There are fewer exotic

fruits – but many of them can now be

grown in countries where it was not

previously possible, thanks to climate

change. Agriculture and the manufacturing

industry have experienced an

enormous upswing, nearshoring has

been put into practice.

→ What began with recommendations

to cancel large events with more than

1,000 people has developed into a ban

on meetings with more than 10 people,

for the benefit of the people. Public

cultural life has therefore come to an

almost complete standstill. Concerts or

sporting events still take place, but the

audience sits at home and watches the

event from their couch at home – free

of charge, sponsored by the state. Once

popular third places such as cafés are

being avoided, restaurants have become

ghost kitchens, supplying customers with

meals to the highest hygienic standards.

For city dwellers in particular, social

contacts have shifted to virtual space.

54 Global Goals Yearbook 2020


ECONOMIC LESSONS

2. System crash:

Permanent crisis mode

→ Frictions in the multipolar world order

are the order of the day: Mutual

recriminations, aggressive threatening,

and nervous action alternate with efforts

toward openness and cooperation – because

there is nevertheless an awareness

that we are dependent on each other.

Neo-nationalism is on the rise, there is

a constant state of tension.

→ Looking to national sale markets,

nearshoring is becoming a political-ideological

premise. At the same time, however,

dependence on international trade

relations and commodity flows remains.

Both tendencies abruptly and permanently

stand side by side and rub against

each other. Glocalization, too, is only

an expression of the discrepancies

between local and international

markets, which cannot exist

without each other. Global

cities are the most nervous

places in the world:

This is where the tensions

between the regional,

national, and

international flows

of finance, services,

and goods are constantly

felt.

→ High times for

Big Data! The

more uncertain

the times, the

more analysis is

required. The collection

and processing

of large

amounts of data

are experiencing a

continuous boom. The development of

artificial intelligence is being intensified,

especially for the simulation of crisis

scenarios and the control of crises. Consequently,

cybercrime on behalf of the

state is also on the rise – with the aim

of weakening international competitors.

Internally, the state is using technology

for monitoring: predictive analytics, the

data-based prediction of human behavior,

is becoming increasingly important in a

permanently insecure society.

→ Privacy is declining. Individual freedom

of data is increasingly

restricted, and laws

concerning

privacy and data protection have largely

been abolished, both in international exchanges

with other states and in dealing

with one’s own population. Health data

is becoming a matter for the state – and

the population is joining in, as confidence

in the state’s health provision and care

has been waning for a long time. More

and more people are relying on personal

health responsibility, digital health, continuous

self-tracking, and the monitoring

of their vital signs by smart devices that

feed personal health data into government

databases at any time. >>

Global Goals Yearbook 2020

55


3. Neo-tribes:

The retreat into the private sphere

→ People no longer trust state actors and

supranational alliances – nor do they

trust them with the power to act. The

turning away from the global world

community leads to a particularized

we-culture and the increased formation

of neo-tribes. Community is sought on

a small scale, because in the wake of

the corona crisis the trend toward postindividualization

has become attractive

to a broader mass.

→ The fear of infection has spurred a

retreat into the private sphere and the

rediscovery of domesticity. There are

practically no major events anymore, but

there is a lot of streaming, because you

can participate in mega-events via virtual

reality without having to leave your

secure and comfortable home. Neighborhood

help is a top priority, and there are

fixed structures for helping each other in

a crisis. Supplies are shared or exchanged,

special attention is paid to the old and

weak. People are also increasingly moving

to the countryside or smaller towns

– the Progressive Province has reached

its peak.

→ Instead of using public transport, people

are more and more switching to bicycles

or e-scooters. Long-distance travel

has lost much of its appeal – in contrast

to surrounding regions or neighboring

countries. Massive de-touristification

has the effect that entire landscapes

and former tourism hotspots are able

to recover from overtourism. Travel is

no longer taken for granted, but is –

again – seen as something special, also

because it requires a lot of precautions

and planning in post-corona times. Tourism

is turning even more into resonant

tourism.

→ The failure of global retail chains and

mistrust of certain countries of origin

are leading to a fundamental re-regionalization.

More than ever, people are

buying locally, the sharing economy is

gaining momentum in regional networks,

traditional handicraft techniques are experiencing

a renaissance. Urban farming

and cooperatives are replacing capitalist

consumption patterns, and a circular

economy with autonomous ecosystems

is emerging in regional communities.

Concepts such as Cradle to Cradle or

post-growth are naturally embedded in

people’s everyday lives – as practices

that are as desired as they are necessary.

The regional economy functions

completely autonomously.

→ The corona crisis has proven to be a

surprising driver of new work trends

toward more flexicurity: The fact that

flexibility in the workplace was made

possible on a broad scale out of necessity

has permanently changed working

cultures. Home office is now an essential

part of every corporate culture, international

companies arrange meetings in VR

conferences, contracts are concluded via

blockchain. Digital health applications

calculate the potential risk of personal

business meetings in advance – which

are usually not recommended anyway.

4. Adaption:

The resilient society

The corona virus has triggered a selfpurification

of the markets: a collective

reflection on the origin of our goods,

which has stimulated new patterns of

consumption. The breakdown of global

chains of production and action has led to

a rediscovery of domestic alternatives. Stationary

trade, regional products, and supply

chains have experienced an upswing.

Not only has a sensible balance between

online and offline been achieved, but

above all a wise approach to globalized

retail chains, a balance between local and

global trade and a flourishing of direct

trade platforms. Since then, weekly markets,

regional producers, and local online

shops have been booming. The monopoly

position of online retailers such as Amazon

and Alibaba has dissolved in favor

of several smaller players that are less

dependent on global production chains

and more readily available locally. Society

is moving away from mass consumption

and a throwaway mentality toward a

healthier economic system.

→ Corona has made the vision of a new

holistic understanding of health come

true: Health is no longer seen as something

that concerns only the individual

body and behavior. Rather, health is now

viewed more holistically: Environment,

city, politics, global community – all

these factors are important for human

health. World health and individual

health are being looked at as a whole.

This new mindset is turning the entire

healthcare system upside down: Governments,

city planners, and businesses are

working together to create healthy environments

for all people. In this context,

the use of digital health apps has become

a matter of course to share health data

anonymously in real time. Thanks to

predictive health, accurate predictions

can be made, for example about the

likelihood of an epidemic. It is clear

to everyone that individual health can

no longer be viewed in isolation from

environment and society.

→ Global risks require supranational players

who can act in a globally networked

manner. The corona crisis, for example,

has given political power to act a new

weighting. While nation-states have

lost relevance, cities and supranational

56 Global Goals Yearbook 2020


ECONOMIC LESSONS

Impact Map for Scenarios

and Megatrends

Scenario 1

Total isolation

1

Strong megatrends

Driving megatrends

Ambivalent megatrends

Silver Society

3

Scenario 3

Neo-Tribes

Individualization

New Work

Security

Health

2

Scenario 2

System crash

Connectivity

Globalization

Scenario 4

Adaption

4

Neo-ecology

Culture of Knowledge

Mobility

Gender Shift

Urbanization

Source: Zukunftsinstitut, FAS Research

bodies are becoming increasingly important

– a reorganisation in the sense of

glocalisation: The local level (cities, municipalities,

mayors etc.) is directly linked

to global organizations. In this way, local

problems can be solved quickly and creatively,

and global risks can be identified

more quickly and tackled cooperatively.

Overall, since the pandemic, humanity

has perceived itself more strongly as a

global community that must solve challenges

together. For neither an epidemic

nor the climate crisis stops at national

borders. A global identity has emerged,

supported by a fundamental change in

values: solidarity and we-culture not

only with our neighbors, but also at

international and global levels.

→ The corona crisis has led to concrete

lessons in supranational handling of

big data, predictive analytics, and early

warning systems. Artificial intelligence

is now being used more constructively:

not only to contain epidemics at an

early stage, but also to minimize all

possible global risks that do not respect

national borders. Everyone is equipped

with health tracking devices, because

the global exchange of up-to-date health

data allows risks to be detected early on.

The continuous learning from each other

in a multitude of functioning networks

creates global resilience. This new spirit

also shapes the media landscape: Constructive

journalism focuses on solutions

instead of spreading alarmism and fake

news. This also helps to maintain a resilient

and adaptive society that knows

how to deal productively with crises.

Copyright and more information:

Zukunftsinstitut GmbH

Kaiserstr. 53

60329 Frankfurt am Main

Global Goals Yearbook 2020

57


Loss of Species Biodiversity

Every 20

minutes the world adds

3,500

human lives and loses

6 out of 7

marine turtles

are threatened by extinction

one or more species Every 60

m i n u t e s

240 acres

of natural habitat are destroyed

70%

of the world’s known species

risk extinction if the global

temperature rises by

more than 3.5°C

20%

of the world’s species

could be gone in

30 years

75%

of genetic diversity in

agriculture crops

has been lost

Data: www.globalissues.org

58 Global Goals Yearbook 2020


ECOLOGICAL LESSONS

1 out of 4

amphibians birds, conifers,

and mammals are threatened

by extinction

75%

of the world’s fisheries

are fully or over exploited

27,000

species

lost a year

80%

of the decline in biological

diversity is caused by

habitat destruction

Global Goals Yearbook 2020

59


We Are Creating

Conditions for

Diseases such

as Covid-19

to Emerge

As habitat and biodiversity loss

increase globally, the novel

coronavirus outbreak may be just the

beginning of mass pandemics.

By John Vidal

60

Global Goals Yearbook 2020


ECOLOGICAL LESSONS

Mayibout 2 is not a healthy place. The 150 or so people

who live in the village, which sits on the south bank

of the Ivindo River, deep in the great Minkebe Forest

in northern Gabon, are used to occasional bouts of diseases

such as malaria, dengue, yellow fever, and sleeping sickness.

Mostly they shrug them off.

But in January 1996, Ebola, a deadly virus then barely known

to humans, unexpectedly spilled out of the forest in a wave

of small epidemics. The disease killed 21 of 37 villagers who

were reported to have been infected, including a number who

had carried, skinned, chopped, or eaten a chimpanzee from

the nearby forest.

I traveled to Mayibout 2 in 2004 to investigate why deadly

diseases new to humans were emerging from biodiversity “hot

spots” such as tropical rainforests and bushmeat markets in

African and Asian cities.

It took a day by canoe and then many hours down degraded

forest logging roads passing Baka villages and a small gold

mine to reach the village. There, I found traumatized people

still fearful that the deadly virus, which kills up to 90 percent

of the people it infects, would return.

Villagers told me how children had gone into the forest with

dogs that had killed a chimp. They said that everyone who

cooked or ate it got a terrible fever within a few hours. Some

died immediately, while others were taken down the river

to hospital. A few, such as Nesto Bematsick, recovered. “We

used to love the forest, now we fear it,” he told me. Many of

Bematsick’s family members died.

Only a decade or two ago, it was widely thought that tropical

forests and intact natural environments teeming with exotic

wildlife threatened humans by harboring the viruses and

pathogens that lead to new diseases in humans, such as Ebola,

HIV, and dengue.

But a number of researchers today think that it is actually

humanity’s destruction of biodiversity that creates the conditions

for new viruses and diseases such as Covid-19 – the viral

disease that emerged in China in December 2019 – to arise,

leading to profound health and economic impacts in rich and

poor countries alike. In fact, a new discipline – planetary

health – is emerging that focuses on the increasingly visible

connections among the well-being of humans, other living

things, and entire ecosystems.

Is it possible, then, that it was human activity, such as roadbuilding,

mining, hunting, and logging, that triggered the

Ebola epidemics in Mayibout 2 and elsewhere in the 1990s,

and that is unleashing new terrors today? >>

Global Goals Yearbook 2020

61


“We invade tropical forests and other

wild landscapes, which harbor so many

species of animals and plants — and

within those creatures, so many unknown

viruses,” David Quammen, author

of Spillover: Animal Infections and the Next

Pandemic, recently wrote in the New York

Times. “We cut the trees; we kill the

animals or cage them and send them to

markets. We disrupt ecosystems, and we

shake viruses loose from their natural

hosts. When that happens, they need a

new host. Often, we are it.”

Increasing threat

Research suggests that outbreaks of

animal-borne and other infectious

diseases such as Ebola, SARS, bird flu,

and now Covid-19, caused by a novel

coronavirus, are on the rise. Pathogens

are crossing from animals to humans,

and many are now able to spread quickly

to new places. The US Centers for

Disease Control and Prevention estimates

that three-quarters of “new or emerging”

diseases which infect humans originate

in non-human animals.

Some, such as rabies and plague, crossed

from animals centuries ago. Others, such

as Marburg, which is thought to be transmitted

by bats, are still rare. A few, such

as Covid-19, which emerged last year

in Wuhan, China, and MERS, which is

linked to camels in the Middle East, are

new to humans and spreading globally.

Other diseases that have crossed into humans

include Lassa fever, which was first

identified in 1969 in Nigeria; Nipah from

Malaysia; and SARS from China, which

killed more than 700 people and traveled

to 30 countries in 2002–2003. Some,

such as Zika and West Nile virus, which

emerged in Africa, have mutated and

become established on other continents.

Kate Jones, Chair of ecology and biodiversity

at University College London,

calls emerging animal-borne infectious

diseases an “increasing and very significant

threat to global health, security, and

economies.”

Amplification effect

In 2008, Jones and a team of researchers

identified 335 diseases that emerged between

1960 and 2004, at least 60 percent

of which came from non-human animals.

Increasingly, says Jones, these zoonotic

diseases are linked to environmental

change and human behavior. The disruption

of pristine forests driven by logging,

mining, road building through remote

places, rapid urbanization, and population

growth is bringing people into closer

contact with animal species they may

never have been near before, she says.

The resulting transmission of disease

from wildlife to humans, she says, is

now “a hidden cost of human economic

development. There are just so many

more of us, in every environment. We

are going into largely undisturbed places

and being exposed more and more. We

are creating habitats where viruses are

transmitted more easily, and then we

are surprised that we have new ones.”

Jones studies how land-use change contributes

to the risk. “We are researching

how species in degraded habitats are

likely to carry more viruses which can

infect humans,” she says. “Simpler systems

get an amplification effect. Destroy

landscapes, and the species you are left

with are the ones humans get the diseases

from.”

“There are countless pathogens out there

continuing to evolve which at some

point could pose a threat to humans,”

says Eric Fevre, chair of veterinary infectious

diseases at the University of

Liverpool’s Institute of Infection and

Global Health. “The risk [of pathogens

jumping from animals to humans] has

always been there.”

62 Global Goals Yearbook 2020


ECOLOGICAL LESSONS

“We cut the trees;

we kill the animals

or cage them and

send them to

markets. We disrupt

ecosystems, and we

shake viruses loose

from their natural

hosts. When that

happens, they need

a new host. Often,

we are it.”

The difference between now and a few

decades ago, Fevre says, is that diseases

are likely to spring up in both urban and

natural environments. “We have created

densely packed populations where

alongside us are bats and rodents and

birds, pets and other living things. That

creates intense interaction and opportunities

for things to move from species to

species,” he says.

Tip of the iceberg

“Pathogens do not respect species boundaries,”

says disease ecologist Thomas

Gillespie, an associate professor in Emory

University’s Department of Environmental

Sciences, who studies how shrinking

natural habitats and changing behavior

add to the risks of diseases spilling over

from animals to humans.

“I am not at all surprised about the

coronavirus outbreak,” he says. “The

majority of pathogens are still to be

discovered. We are at the very tip of

the iceberg.”

Humans, says Gillespie, are creating the

conditions for the spread of diseases by

reducing the natural barriers between

virus host animals — in which the virus

is naturally circulating — and themselves.

“We fully expect the arrival of

pandemic influenza; we can expect largescale

human mortalities; we can expect

other pathogens with other impacts. A

disease like Ebola is not easily spread.

But something with a mortality rate of

Ebola spread by something like measles

would be catastrophic,” Gillespie says.

Wildlife everywhere is being put under

more stress, he says. “Major landscape

changes are causing animals to lose

habitats, which means species become

crowded together and also come into

greater contact with humans. Species

that survive change are now moving

and mixing with different animals and

with humans.”

Gillespie sees this in the United States,

where suburbs fragmenting forests raise

the risk of humans contracting Lyme

disease. “Altering the ecosystem affects

the complex cycle of the Lyme pathogen.

People living close by are more likely

to get bitten by a tick carrying Lyme

bacteria,” he says.

Yet, human health research seldom

considers the surrounding natural

ecosystems, says Richard Ostfeld, distinguished

senior scientist at the Cary

Institute of Ecosystem Studies in Millbrook,

New York. He and others are

developing the emerging discipline of

planetary health, which looks at the

links between human and ecosystem

health.

“There’s misapprehension among scientists

and the public that natural

ecosystems are the source of threats to

ourselves. It’s a mistake. Nature poses

threats, it is true, but it’s human activities

that do the real damage. The health

risks in a natural environment can be

made much worse when we interfere

with it,” he says.

Ostfeld points to rats and bats, which

are strongly linked with the direct and

indirect spread of zoonotic diseases. “Rodents

and some bats thrive when we

disrupt natural habitats. They are the

most likely to promote transmissions

[of pathogens]. The more we disturb the

forests and habitats the more danger we

are in,” he says.

Felicia Keesing, professor of biology at

Bard College, New York, studies how

environmental changes influence the

probability that humans will be exposed

to infectious diseases. “When we erode

biodiversity, we see a proliferation of

the species most likely to transmit new

diseases to us, but there’s also good evidence

that those same species are the

best hosts for existing diseases,” she wrote

in an email.

>>

Global Goals Yearbook 2020

63


“Wet markets

make a perfect

storm for

cross-species

transmission of

pathogens.”

The market connection

Disease ecologists argue that viruses and

other pathogens are also likely to move

from animals to humans in the many

informal markets that have sprung up

to provide fresh meat to fast-growing

urban populations around the world.

Here, animals are slaughtered, cut up,

and sold on the spot.

The “wet market” (one that sells fresh

produce and meat) in Wuhan, thought

by the Chinese government to be the

starting point of the current Covid-19

pandemic, was known to sell numerous

wild animals, including live wolf pups,

salamanders, crocodiles, scorpions, rats,

squirrels, foxes, civets, and turtles.

Equally, urban markets in west and

central Africa see monkeys, bats, rats,

and dozens of bird, mammal, insect,

and rodent species slaughtered and sold

close to open refuse dumps and with

no drainage.

“Wet markets make a perfect storm for

cross-species transmission of pathogens,”

says Gillespie. “Whenever you have

novel interactions with a range of species

in one place, whether that is in a

natural environment like a forest or a

wet market, you can have a spillover

event.”

The Wuhan market, along with others

that sell live animals, has been shut by

the Chinese authorities, and the government

in February outlawed trading and

eating wild animals, except for fish and

seafood. But bans on live animals being

sold in urban areas or informal markets

are not the answer, say some scientists.

“The wet market in Lagos is notorious. It’s

like a nuclear bomb waiting to happen.

But it’s not fair to demonize places which

do not have fridges. These traditional

markets provide much of the food for

Africa and Asia,” says Jones.

“These markets are essential sources of

food for hundreds of millions of poor

people, and getting rid of them is impossible,”

says Delia Grace, a senior

epidemiologist and veterinarian with

the International Livestock Research

Institute, which is based in Nairobi,

Kenya. She argues that bans force traders

underground, where they may pay

less attention to hygiene.

Fevre and Cecilia Tacoli, principal researcher

in the human settlements research

group at the International Institute

for Environment and Development,

argue in a blog post that “rather than

pointing the finger at wet markets,” we

should look at the burgeoning trade in

wild animals.

“It is wild animals rather than farmed

animals that are the natural hosts of

many viruses,” they write. “Wet markets

are considered part of the informal

food trade that is often blamed for

contributing to spreading disease. But

[…] evidence shows the link between

informal markets and disease is not

always so clear cut.”

Changing behavior

So what, if anything, can we do about

all of this?

Jones says that change must come from

both rich and poor societies. Demand

for wood, minerals, and resources from

the Global North leads to the degraded

landscapes and ecological disruption

that drives disease, she says. “We must

think about global biosecurity, find the

weak points, and bolster the provision

of health care in developing countries.

Otherwise we can expect more of the

same,” she says.

“The risks are greater now. They were

always present and have been there for

generations. It is our interactions with

that risk which must be changed,” says

64 Global Goals Yearbook 2020


ECOLOGICAL LESSONS

Brian Bird, a research virologist at the

University of California, Davis School

of Veterinary Medicine One Health Institute,

where he leads Ebola-related

surveillance activities in Sierra Leone

and elsewhere.

“We are in an era now of chronic emergency,”

Bird says. “Diseases are more

likely to travel further and faster than

before, which means we must be faster

in our responses. It needs investments,

change in human behavior, and it means

we must listen to people at community

levels.”

Getting the message about pathogens

and disease to hunters, loggers, market

traders, and consumers is key, Bird says.

“These spillovers start with one or two

people. The solutions start with education

and awareness. We must make

people aware things are different now.

I have learned from working in Sierra

Leone with Ebola-affected people that

local communities have the hunger and

desire to have information,” he says.

“They want to know what to do. They

want to learn.”

Fevre and Tacoli advocate rethinking

urban infrastructure, particularly within

low-income and informal settlements.

“Short-term efforts are focused on containing

the spread of infection,” they

write. “The longer term — given that

new infectious diseases will likely continue

to spread rapidly into and within

cities — calls for an overhaul of current

approaches to urban planning and development.”

The bottom line, Bird says, is to be prepared.

“We can’t predict where the next

pandemic will come from, so we need

mitigation plans to take into account

the worst possible scenarios,” he says.

“The only certain thing is that the next

one will certainly come.”

This article was originally published by Ensia.

Global Goals Yearbook 2020

65


CAUGHT ON

66 Global Goals Yearbook 2020


ECOLOGICAL LESSONS

There comes a point in most actors’ lives when the journey,

the profession, the lifestyle that has served them so well,

and for so long, ultimately becomes less interesting.

The catalyst for this could be one of many things – age, family,

burnout, perhaps even a shift to another part of an industry

that is perennially asking more and more of its leading lights.

Why actor Edward Norton’s shift toward

a vision for our planet has been a

career in the making.

By James Evans

For Edward Norton, the stimuli responsible for making a change

were beginning to stack up after a particularly fervent period

of moviemaking in the first decade of the new millennium.

Through Red Dragon, Kingdom of Heaven, The Illusionist, and The

Painted Veil, the Boston-born actor’s output was unsustainably

high, and notwithstanding perhaps one or two film projects

that did not hit the mark, the deep-thinking Yale graduate

always seemed to engage and enchant cinemagoers with

informed, intelligent drama.

And yet, as a passionate, driven, dynamic, and respected

environmentalist, activist, social entrepreneur, and orator of

positive global initiatives, Norton, justifiably, began to see the

value in cinema diminish.

“When you have a perspective that runs across two very polarized

parts of culture, they will only, over time, become more

separated,” he begins. “Trying to justify, validify the importance

of a fight scene in a movie junket at a posh LA hotel, when

on the next page of your diary you have an environmental

project that will preserve, change, and perhaps even save lives

… that becomes a very different thing to try to balance up.

“The reality, of course, is you don’t attempt to balance it up.

The reality is you accept one is more important than the other,

and you let that guide you.”

Norton’s investment in social and ecological change is not a

charitable signup, nor a PR stunt; nor is it provoked by guilt

stemming from years of living the high life. The reality is

that the trappings of wealth and the adulation of fame have

never been of particular interest to Norton, whose yearning

for privacy goes far beyond that of most other actors in the

profession. >>

Global Goals Yearbook 2020

67


alance. From the World Surf League to

International Day for Biodiversity and

the Friends in Europe exhibition, each

has garnered direct support from the

star, typifying the actor’s desire to stay

grounded to a variety of different causes.

More than that, his dedication toward

world health has been a lifelong devotion,

and he is certainly happy to use his

fame to publicize the issues surrounding

renewable energy, biodiversity, illegal

poaching, and even affordable housing,

knowing that while his actions may not

provoke direct policy change, they can

certainly prompt action in others. “I

don’t want to be that guy who brings

about an end point purely on the basis

of him being famous. I feel that cheapens

the whole ethos – it misses the point.

Genuine change is a mechanism based

on listening to and trusting the voice

of the smallest, most timid person in

the room. If the point they are making

is correct, then that is enough. Who

you are and how many movies you’ve

been in should never come into it. What

we’re talking about are not geopolitical

questions or issues born out of celebrity

trends – they are binding, common

challenges for everyone on this planet.”

Of course, Norton is smart enough to

know the strength of influence, and the

effect a prominent, recognizable personality

can have in galvanizing movement

and action, but he counters: “The modern

environmentalist can build a platform

purely based on their viewpoint – they

don’t need to have done something

spectacular or headline-grabbing in a

previous life. In that respect, we are in

a dynamic era of activism.”

For someone so revered in environmental

circles, it is perhaps surprising to find

that Norton is only a light user of social

media, until you factor in his craving of

privacy. “I just don’t find my private life

relevant or even that interesting,” he

says. “There are so many better things

to talk about.”

Sure enough, as well as the headlinegrabbing

initiatives, in 2019 the actor

also supported various small organizations

in their efforts to strike the right

Norton – who has a six-year-old son,

Atlas, with his wife, Canadian film producer

Shauna Robertson – is President

of the American branch of the Maasai

Wilderness Conservation Trust, which

supports sustainable tourism and wildlife

preservation in Kenya. He is also CEO of

Baswood Inc., a green wastewater treatment

alternative he and his partners are

currently selling and building around

the United States. In addition, he is a UN

Goodwill Ambassador for Biodiversity.

“As is often the case in life, things accumulate

around you and it’s easy to keep

adding new challenges without necessarily

relinquishing older ones,” he admits.

“That was certainly the way I was brought

up, with a variety of positive influences

around me and the encouragement to

bring about change. I was very fortunate

to be raised in a family of doers … of

activists and entrepreneurs. They have

all had a very, very heavy commitment

to social impact, long before someone

had even thought of a name for it.

He continues, “My grandfather was very

well-known – he was a commercial real

estate developer called Jim Rouse. The

Rouse Company was really one of the first

developers of enclosed retail shopping

malls – and according to some people,

my grandfather coined the term ‘shopping

malls.’ Even in the 1960s, when he

68 Global Goals Yearbook 2020


uilt Columbia Maryland, which was

the first planned community, he had

an incredible sense of how developers

and urban planning needed to have

progressive values.

“It’s interesting, in modern life, the phrase

‘shopping mall’ is taken to represent bad

things, but you have to consider the fact

this was social change on a colossal scale,

and it’s hypocritical to demean that

just because it was consumerism. The

fabric of the movement was the same,

and it’s those sorts of qualities we need

to embrace.”

Norton’s father was a former US Attorney

for Maryland, who went over to become

the litigator and Head of Public Policy for

The Wilderness Society. He founded the

Grand Canyon Trust, among others, and

remains one of the Senior Advisers for

the Environment at TPG, an American

investment company. “However they

have gone about it, the reality is I have

spent a lot of my life around people who

care about society and the environment

… right the way through to my mother,

who was a teacher. They were using their

smarts to think about how to work on

social problems, but they were also very

entrepreneurial. I think that’s a good

mix – I’m okay with that.”

As far as current projects go, Norton

remains dedicated to promoting sustainable

tourism with the Maasai in Kenya.

“Across everything I do, I probably find

Kenya the most engaging, and I’ve been

going there for many years. My sister

once worked for an American travel

company that organized climbs up Mt.

Global Goals Yearbook 2020


ECOLOGICAL LESSONS

I don’t want

to be that guy

who brings

about an end

point purely

on the basis

of him being

famous.

I feel that

cheapens the

whole ethos –

it misses

the point.


Kilimanjaro, and on one such expedition

I decided to accompany her. That’s when

I met Luca Belpietro, who is the founder

of the Maasai Wilderness Conservation

Trust and was also running Campi Ya

Kanzi, a tourist resort in Kenya.

“People believe conservation is the concept

of leaving something alone, but it’s

not always that way. In this case, Luca

was trying to create a much different,

more enhanced kind of tourist experience.

Now I have both friends and family

who live there and I go every year for

fun as well as for environment-related

meetings. I look forward to every visit

there and it’s my favorite place in Africa.”

The fact that Edward Norton has rebelled

against the plastic glamour of the entertainment

industry is, in many ways,

very satisfying. Of course, he is not alone,

and alongside him, Leonardo DiCaprio,

Robert Redford, Gisele Bundchen, and

others are treading a new path that

challenges our perception not just of

the individual, or the industry, but the

world around us.

“In film, in environmentalism … whatever

it is, I never want to feel that I am

going through the motions or repeating

myself. I’ve had periods where I’ve asked

myself, ‘What am I doing?’ and that’s

very troubling.

“What I’m certain of now is there will

always be more to do, and for someone

entrenched in the idea of changing the

world for the better, that’s not such a

bad emotion.”

69


Paradigm Shifts,

Reactance, and

Fighting Our

Demons

Humanity knows more than ever about climate change –

but we are lazy when it comes to action. Constant

admonitions and calls to act in a climate-conscious manner

often leads to the opposite. In this essay, the well-known

sociologist and social psychologist Harald Welzer explores

the question why we fear climate change, but often do

nothing about it.

“My Madcap Trip around the World” was

the title of a full-page article in Germany’s

daily tabloid newspaper Bild on

Sept. 12, 2017. In it, reporter Michael

Quandt wrote about his journey to “four

continents and eight cities” in just five

days, flying 40,200 kilometers in the

process. Because he relied solely on lowcost

airlines, the entire trip cost a mere

€1,827. His accounts were sprinkled with

tales of excursions, from dromedary

riding in Dubai to savoring a shaved

ice at Waikiki Beach – all of it backed

up by the obligatory Instagram photos,

of course.

>>

Prof. Dr. Harald Welzer

Sociologist, Executive Director,

Futurzwei Foundation

Professor for Transformation

Design at the University of

Flensburg

70 Global Goals Yearbook 2020


Global Goals Yearbook 2020

71


Another full-page article in the technology

and motoring section of Germany’s

Frankfurter Allgemeine Zeitung (FAZ) informed

readers on May 14, 2019, about

“explorer ships,” the new “pinnacle of

yacht-building excellence.” This particular

class of yacht is designed for active,

adventurous, and very wealthy individuals

who love exploring uncharted territory,

such as the Arctic. The ships have

a lot to offer: “The SeaXplorer 75 will

provide suites for up to 12 passengers.

The first specimen, measuring exactly

76.9 meters long and 14 meters wide, is

under construction. The buyers – keen

skiers, surfers, and divers – will find an

arsenal of sporting and leisure equipment

on board: surf equipment, diving

chamber, dive support boat, ski room

with avalanche safety equipment, two

snowmobiles, four personal watercraft,

a submersible, a rescue boat, a luxury

tender, and two inflatable outboard boats.

A roughly 11-meter lift raises the two

Airbus ACH 125 helicopters, with a maximum

takeoff weight of 4,000 kilograms,

from the double below-deck hangar to

the certified helideck.”

Both stories report on different iterations

of the enlargement of global reach

today, depending on income bracket. The

sociologist Hartmut Rosa uses the term

“global reach” to describe a marker of the

modern age: As prosperity grows, and

with each new technology, the ability

of an individual to avail oneself of the

world increases. A hundred years ago,

it was not unusual for a person to have

never left their village, or at least to have

never been farther than the next largest

city – a situation that today would be

strange and require some explanation.

Well into the second half of the 20th

century, long-distance or foreign travel

was mainly an experience had by soldiers

on military campaigns. Except for

a few very wealthy individuals, everyone

else stayed home their entire lives.

Mass tourism did not start in Germany

until after World War II, initially with

Italy as the dream vacation destination,

followed later by Spain, Tunisia,

and Turkey, depending on the price

class. During the Nazi era, the trips offered

by the leisure organization “Kraft

durch Freude,” or Strength Through Joy,

provided a preview of the mass tourism

yet to come. Things really took off

during the postwar “Wirtschaftswunder,”

or economic miracle, and have yet to

quiet down. The example presented

by the Bild reporter impressively illustrates

that even round-the-world trips

are no longer the exclusive domain of

the upper classes. That, in turn, is bad

news for the super-wealthy. After all,

increasing global reach is a part of their

status-confirming consumption patterns.

If everyone can do it, then the edge

that sets them apart starts to dwindle.

An upgrade is the logical consequence,

and explorer ships deliver just that. But

mass consumption is also playing catchup.

Thanks to Hurtigruten, people can

venture into purportedly untouched

regions by cruise ship, following in Roald

Amundsen’s footsteps.

72 Global Goals Yearbook 2020


ECOLOGICAL LESSONS

What determines our actions?

Why am I telling you this? First, the

ecological problems of the present day,

and climate change too, are ultimately

due to the fact that expansive luxury

consumption unleashes its destructive

power especially when it becomes mass

consumption. It goes practically without

saying that the owners of the SeaXplorer

75 are doing more than their fair share

to destroy the environment. But the damage

caused by the hundreds of thousands

of tourists on a shoestring budget who

are following in the footsteps of the

wealthy is several times worse. Second,

the stories in Bild and the FAZ are being

told because they profess expanded

global reach as good news – as something

we should strive to reproduce.

That is the more important aspect in

the following thoughts and reflections.

It is precisely in this way that “imperial

modes of living” – as the political scientists

Ulrich Brand and Markus Wissen

have termed such global consumption

– are propagated as being worth striving

for. In media, advertising, business, and

The underlying issue

immediately becomes

clearer if we replace

the word “growth”

with the term “increased

consumption.”

It is precisely this

pattern of permanent

growth in global

consumption that is

bringing the 20th

century model of

civilization into such

difficulty in the 21st

century.

politics alike, increased global consumption

is still seen as desirable and is both

subsidized and promoted accordingly.

To this day, the majority of people view

cruising the seas, monstrously oversized

SUVs, enormous flat-screen TVs, and spacious

country-house kitchens in which

no meals are ever cooked neither as

a nightmare nor as an anachronism.

In fact, the opposite is true: For most

people, it evokes a spontaneous sense

of “I want that too.”

And that is ultimately the point. According

to standard theories of economics

and politics, growth is not simply an

economic necessity, it is essential to

maintain a stable society. The underlying

issue immediately becomes clearer

if we replace the word “growth” with

the term “increased consumption.” It

is precisely this pattern of permanent

growth in global consumption that is

bringing the 20th century model of

civilization into such difficulty in the

21st century.

If we look into how we encourage citizens

in hyperconsumerist societies such

as Germany to act with a sustainable

and environmentally friendly mindset,

we must account for the fact that one’s

own efforts will stand in stark contrast

– or even be completely negated – by

stories such as those described above.

After all, stories of global reach, such

as the one about the explorer ships, are

everywhere – simply glance at the travel

section in any magazine or newspaper

and the constant background noise that

is online advertising. Faced with such

excess, it appears quite audacious to

present frugality as some sort of alluring

counterpoint.

Striving for improvement by establishing

a conscience is misguided, too. Consciousness

is only loosely linked to our

actions, as we can easily see if we correlate

concerns about the environment

and the climate with the rapid increase

in our consumption of this very environment.

The spread of environmental

consciousness has been accompanied by

continuous GDP growth. In other words,

more materials have been extracted and

processed at a greater energy cost, more

goods have been handled and transported

around the world, and more emissions

and waste have been generated. These

flagrant contradictions have been made

socially acceptable by explaining that

greater prosperity is a prerequisite for

reducing environmental impact and by

allowing products to become “greener.”

In the end, an enormous hybrid SUV appears

just as eco-friendly as a cruise ship

powered by natural gas. All this ignores

the fact that the only way to make such

products sustainable is to not have them

at all. But that is how capitalism works:

It is capable of gently swallowing up

any aspect of society that was originally

critical of it. Even environmental consciousness

can be commodified.

Any remaining concerns that may arise

when we as individuals do things that

we know to be wrong are astoundingly

easy to cope with. People can go >>

Global Goals Yearbook 2020

73


through their lives embracing the most

blatant of contradictions without so

much as batting an eyelid. The human

ideal based on a desire to live without

contradiction has seeped its way into our

collective mindset from the theories of

moral philosophy and theology, but in

truth it is a complete falsity. Our behavior

varies wildly in different situations, as

the requirements that are set of us in our

jobs, in sports, within our families, and

among our friends vary, and because the

roles we are expected to fill are constantly

changing. The functional differentiation

found in societies based on the division

of labor has produced a human character

that is highly adaptable and capable of

taking on changing – and often even

contradictory – roles with aplomb. The

sociologist Erving Goffman devoted his

life’s work to demonstrating this and

deciphering the social choreography

that governs the relationships, roles, and

performances of its participants. Ignoring

borderline pathological actions, it makes

no sense to place human activity in a

context that does not take into account

the situation in which it occurs. In turn,

modern societies are incapable of dealing

with normal pathology. Someone who

always has the same response to different

requirements in different situations will

soon end up in a secure psychiatric unit.

Human adaptability is not pathological

variation. Instead, it is precisely what

all social and educational institutions

produce in modern societies because

they need adaptability in order to function.

Moral convictions do not guide

our behavior, but rather show us what

justifications we can use to bring our

incorrect actions into line with a correct

consciousness.

added texture by the cultural and social

framework of our existence, and its rules

are so effective at determining our reality

because they are almost never the

product of conscious consideration. It is

impossible to criticize or cast into doubt

something of which you are not aware.

The social rules of our everyday lives

by no means form the sole unconscious

backdrop to our values and expectations.

Modern societies, in particular, are

structured from top to bottom through

all manner of rules, regulations, and

infrastructure. The “assumptive world”

(Alfred Schütz) in which we live confers

cultural obligations upon us and

generates bonds of which we are also

not aware. Every culture provides its

members with standards of behavior,

expectations, and emotions, all of which

are only effective because we tend not

to ever call them into question. That is

why efforts to change such standards are

so ineffective if the approach is purely

cognitive – in other words, if they focus

on areas where people can draw on

conscious experience. Because habits and

idiosyncrasies go beyond any threshold

of consciousness, it is often futile to

appeal to a sense of understanding and

reason. According to Kant, the world

only functions in the tiny segment of

reality that covers wakeful consciousness.

Understanding rarely influences

our behavior because behavior is rarely

based on understanding.

Reactance

Significant socio-psychological events

such as these generate a peculiar tension

between bad news, such as the latest

climate data, and the reality in which

we live. Every date, every diagram, every

passionate plea from climate scientists

such as Mojib Latif and Hans Joachim

Schellnhuber is interpreted as a threat

to our way of life. The more seriously

they are taken, the less indifferent their

impact. Paradoxically, negative headlines

from the scientific world have an effect

that is the complete opposite of the one

intended: Instead of encouraging us to

change our lifestyles and cultural models,

fear and an aversion to loss cause us to

cling to them even more and attempt

to extract every last drop. How else can

we explain why cars have become larger

and more resource-intensive, instead

of smaller and more efficient, since

the problem of climate change reared

Understanding rarely

influences our

behavior because

behavior is rarely

based on

understanding.

Routines and habits – in other words,

“mental infrastructure” – are further

factors that guide our day-to-day actions.

Very little of what we do is the result of

our conscious decisions. In fact, our actions

are predetermined by the material

and cultural standards that make up

the world in which we live. The world

in which we grow up in is the world

we perceive unquestioningly. It is given

74 Global Goals Yearbook 2020


ECOLOGICAL LESSONS

its head? The same applies to tourism,

which has become more expansive and

escapist than ever before, with everything

from electric mountain biking to

cruises through the Arctic. In psychological

terms, when presented with data

showing us that we must change our

hyperconsumerist lifestyle, we react in

the complete opposite way to how we

are supposed to.

This is something that only the members

of society who are true believers

in the science did not expect. After all,

it is only the members of the scientific

community who believe, owing to their

detachment from the broader perspective,

that knowledge guides our actions.

Indeed, a brief glance at their own lives

– as frequent flyers and, as higher earners,

seasoned practitioners of resourceintensive

lifestyles – is all it takes to

disprove the theory.

It is high time we stopped issuing pleas

and warnings, not only because those

who have been exposed to them repeatedly

over the past few decades have long

since taken them into account in their

habits and personalities, without even

the slightest change being implemented

in the economic and social system in

which they live, but also because the

desire for global consumption actually

increases with the intensity of pleas and

warnings instead of decreasing.

Conditions for the paradigm shift

As long as this system – let us call it the

expansive cultural model – continues

to prevail as it does now, there cannot

and will not be any paradigm shift

toward sustainable, environmentally

friendly economies and lifestyles. This

is not about will and perception. It is

about patterns of behavior, about making

use of and shaping our world, and

about guiding our understanding of it.

In Marx’s terms, our social being determines

our consciousness. A paradigm

shift toward a reductive cultural model

is essential if we are to accept and deal

with the challenges stemming from the

looming danger of climate change and

It is high time we

stopped issuing

pleas and warnings,

because the desire

for global

consumption

actually increases

with the intensity of

pleas and warnings

instead of

decreasing.

all the other urgent ecological crises

on the road ahead. This cannot take

place through the idealistic forming of

consciousness; it must be the product

of changing behaviors. It may sound

tautologous, but research shows that

this is exactly what is needed. When a

new service is offered that is better than

the original service, people will opt for

the new service without the aspect of

sustainability playing any kind of role

in their decision. A prime example of

this thinking is Swiss Railways, whose

services are widely used by Swiss citizens,

resulting in the lowest passenger car

use in Europe in relative terms, simply

because the trains offer the best mobility

service when it comes to comfort,

service quality, and reliability. The fact

that trains are the most environmentally

friendly form of transport is an added

benefit for its users, which they can

either appreciate or ignore completely.

The sustainability transformation is a

combination of practices of this nature

that have proven successful in the past

or are currently enjoying success. It is a

heterotopic process, as we build on many

elements that are enshrined in society

and must not be changed or abandoned,

such as the division of powers, suffrage,

and the rule of law. The transformation

is not one single process either. It is a

modular project consisting of a multitude

of smaller transformations that,

in an ideal scenario, interact to form

concrete utopias. The 20th century and

techno-utopian ideals, such as the safe

use of nuclear energy, have provided

many a lesson that master plans to satisfy

human desires usually have lethal

consequences. Project Civilization is not

over and remains ongoing. But neither

does it have a finite goal or an ultimate

solution. Society must be adaptable to

changing conditions and requirements

and deal with mistakes and collateral

damage – and so be correctable.

Unlike the old modern ideal, this cannot

be a project just for the experts, with

technical and scientific elites drawing

up plans that are then imposed upon

society by politicians. It must be developed

and scrutinized in all areas of life.

Never have there been more groups,

initiatives, cooperatives, and collectives

that embrace different economic values

and lifestyles in the western world than

right now. These unifying structures

do not take the form of popular theories,

manifestos, or iconography. They

are instead expressed in local, practical

behaviors. There are transition towns

all over the world acting as petri dishes

for alternative, local economic models,

and urban gardening is also becoming

ubiquitous. Both of these movements

are methods of requisitioning public

space for social and ecological purposes.

Other examples include repair cafés,

citizen cooperatives, zero-packaging

shops, community-supported agriculture,

economies for the common good,

residential projects, and eco-villages, all

of which are experiments in a concrete

utopia. Their value is derived in the fact

that they can be experienced and trialed,

and not because they only exist on paper.

The clarity offered by such experiments

of alternative economics and lifestyles

is one of their greatest virtues. As Erik

Olin Wright said, it is about building

“emancipatory alternatives in the spaces

and cracks within capitalist economies”

and fighting for their proliferation.

Source: Aus Politik und Zeitgeschichte 2019,

No. 47-48, p. 16-20, CC-BY-NC-ND-3.0

Global Goals Yearbook 2020

75


GOOD PRACTICE SECTION 1: LIST OF ATTENDEES (FROM A - J)

Companies are listed in alphabetic order

Arab African International Bank

Audi

BASF

Bayer

Beaulieu International Group

Bosch Group

Business Keeper

CEMEX

Clariant

EDF Group

Elomatic

E.ON

Green Delta Insurance Company

Inditex

iPoint-systems

Solely responsible for the editorial contributions under the

heading “Good Practice” are the companies themselves.

Named articles do not reflect the opinions of the publisher.

Knorr-Bremse

K+S

KYOCERA

macondo foundation

MAN

Merck

MTU Aero Engines

Netafim

Nomura Group

pervormance international

Philip Morris International

Sakhalin Energy

SAP

Symrise

Vonovia

Wilo Group

78

80

82

Arab African International Bank

Audi

BASF

76

Global Goals Yearbook 2020


GOOD PRACTICE

84

Bayer

86

Beaulieu International Group

88

Bosch Group

90

Business Keeper

92

CEMEX

94

Clariant

96

EDF Group

98

Elomatic

100

E.ON

102

Green Delta Insurance Company

104

Inditex

106

iPoint-systems

Global Goals Yearbook 2020 77


AAIB’S COVID-19

INTEGRATED RESPONSE

For more than 55 years, as one of Egypt’s largest banks, Arab African International Bank (AAIB)

has not only grown financially but also developed a deeper commitment to support community

needs. With the emergence of the Covid-19 pandemic, the Bank has been working hard to uphold

its commitment to the Sustainable Development Goals (SDGs).We recognized the critical need

to act with urgency to support our people and communities hit hardest by the impacts of the

pandemic, where the Bank undertook several procedures and precautions to contain the spread

of the virus and manage its economic impacts

By Dalia Noureldin, AAIB

Covid-19 has created an increasing

number of challenges to individuals,

communities, and businesses. As the

health crisis has been affecting lives and

rocking economies all over the world,

AAIB quickly adapted and implemented

an integrated strategy that considers

the needs of its employees, clients, and

society to make the best of this situation

Supporting the Vulnerable and the

Valuable

To manage the virus and its socioeconomic

impacts, AAIB undertook a coordinated,

comprehensive approach to face the repercussions

of the outbreak and address the

needs of all impacted community groups

– from patients to medical professionals

and vulnerable groups struggling to stay

afloat – where the value of the Bank’s

contribution amounted to 51 million

Egyptian pounds (EGP).

Initially, AAIB partnered with the Ahl

Masr Foundation to cover the needs

of the health sector, prioritizing governorates

with limited resources and

capacities to help them withstand the

pandemic. Both entities collaborated in

three mega projects.

The first project was to fully purchase

and install four intensive care units

featuring state-of-the-art equipment, including

ventilators to support all patients

and ensure they receive the medical care

they need. The second project involved

providing medical staff in nine hospitals

with 6,480 units of medical gear

(known as personal protection equipment,

or PPE) given their role on the

frontlines while standing up against the

pandemic so they could operate safely

in this critical period.The third initiative

was to inaugurate a new, fully equipped

quarantine hospital with the capacity

of 150 beds to complement the initiatives

and precautions undertaken by the

Government to manage this crisis.

To manage the spread of the virus, the

government undertook several precautionary

measures, among which were

partial lockdowns and curfews. These

measures, despite their importance,

resulted in severe social and economic

impacts on several groups, especially on

daily-wage workers. Accordingly, AAIB

proudly participated in the Federation

of Egyptian Banks’ initiative to support

these vulnerable groups who have been

affected by the pandemic.

78

Global Goals Yearbook 2020


Uninterrupted Business with High

Hygiene Standards

Our customers are at the heart of everything

we do, so we have been working

to ensure they are kept safe, supported,

and satisfied.

To ensure their safety, all employees

and clients entering the branches are

required to wear facemasks and have

their temperatures screened. Adding to

this, plexiglass shields were placed on all

customer service desks in all branches to

maintain social distancing and protect

our colleagues and customers. We also

installed sanitization towers at the entrances

of our branches so that clients

entering can sanitize both their hands

and shoes.

In addition, our Business Continuity

Manual has been put into action to

ensure that we provide seamless and

uninterrupted services with no delays

during the pandemic and thereafter.

Additionally, acknowledging that it is not

just a health crisis but a socioeconomic

one as well, AAIB followed the comprehensive

range of support initiatives

introduced by the Central Bank of Egypt

during the Covid-19 outbreak. AAIB

postponed secured and unsecured loan

installments and credit card minimum

payments for six months automatically

with no commission or late payment

fees. In addition, to make transactions

easier for clients, all ATM cash withdrawals

and balance inquiry fees have

been exempted and debit card limits for

cash withdrawals and purchases have

been raised. Adding to this, all Point of

Sale fees have been waived among all

merchant clients.

The Bank also conducted awareness campaigns

on its social media platforms to

provide its clients with safety tips to

follow not only in banking transactions,

but also in their daily activities among

which were using masks and disinfectants

and promoting contactless payments.

Supporting employees in and

beyond the workplace

AAIB has put strict measures in place

prevent and slow the spread of Covid-19

within the workplace. Among these

measures have been awareness campaigns,

encouraging social distancing,

dealing with suspected, vulnerable or

confirmed Covid-19 cases, and ensuring

intense cleaning and sanitizing in all

offices and branches.

We have stepped up social distancing

measures in our offices and limited the

work capacity of employees in the office

to a maximum of 50 percent. We also

introduced work-from-home practices to

limit our employees’ exposure without

compromising their ability to remain

connected and productive while working

securely. For employees working on site,

they are exposed to daily temperature

screening prior to entering the building

and are obliged to wear facemasks.

For employees feeling unwell, there

are clear instructions to not show up

before calling the Bank’s doctor. All

employees suspected of being infected

are not allowed to enter the premises

until taking a polymerase chain reaction

(PCR) test. If the results are positive, the

whole department/branch is closed and

sanitized and all employees there must

take the PCR test. Also, if an employee is

well but has an infected family member,

they have to stay home.

In addition, to ensure employees receive

the appropriate care if it is needed, access

to any hospitals is enabled by using the

Bank ID card, which is also used to sign in

instead of fingerprints. Also, a Covid-19

exceptional leave has been provided to all

pregnant women and staff with critical

or chronic health conditions.

To guarantee that all these measures are

known by employees, awareness campaigns

are circulated continuously via

email and SMS. Additionally, awareness

signs have been placed in trafficked areas

with all the measures to be considered

in different situations.

Leadership involvement:

A caring culture

The Bank has also established a dedicated

Crisis Management Committee,

which is composed of members from

the highest managerial levels, to assess

and quickly respond to current and future

changes.. Additionally, a new Head

of Security, Health and Safety Matters

was hired to ensure that the highest

safety, stability and security standards

are implemented.

There is no doubt we are living in an

unprecedented time in which Covid-19

has taken over the global agenda. With

the situation changing in real time, we

are following the global situation very

closely and are committed not only to responding

effectively, controlling the virus

and its socioeconomic consequences of

the virus, but also to accelerate up our

learning curve to enhance the business

resilience in the future. Although much

uncertainty is ahead, one thing we are

sure of is that collaboration and solidarity

make us stronger.

Global Goals Yearbook 2020 79


AUDI: DEVELOPMENT OF

A QUALITY SEAL FOR

SUSTAINABLE BATTERIES

The transportation sector is one of the greatest contributors to greenhouse gas emissions worldwide.

Audi has therefore set itself the goal of reducing its carbon footprint by approximately

30 percent by 2025 (compared with the reference year 2015 and over the entire product life

cycle.). This entails significantly reducing CO 2

emissions, which is why Audi is particularly

committed to electric mobility. Since the aim is to reduce the environmental impact of each new

model over that of its predecessor throughout the entire life cycle, the company is creating a life

cycle analysis for vehicles and working to ensure a sustainable battery value chain as a member

of the Global Battery Alliance (GBA).

By Dr. Stefanie Augustine, Josef Schön, and Christoph Praun, Audi

Do you drive to work or visit grandparents

who live 200 kilometers away?

Mobility is a basic human need, and

the demand will continue to rise: The

International Transport Forum anticipates

that passenger transport on the

whole will triple by 2050. Thus, we need

sustainable solutions to counteract the

impact this will have on the climate.

Electric mobility is one way to make both

private and public transportation more

ecological. But how environmentally

friendly are electric cars, really?

Life cycle assessment: Electric cars vs.

combustion-engine vehicles

A life cycle assessment (LCA) can tell us

how environmentally friendly an electric

car is compared with a similar vehicle

with a combustion engine, as well as

where there is opportunity for improvement.

This analysis maps the environmental

impact of a vehicle throughout

the entire product life cycle – from raw

materials extraction and production,

through the utilization phase, all the

way to recycling. Among the important

key figures included here is the amount

of greenhouse gas emissions incurred,

which is measured in the form of CO 2

equivalents. Audi is currently preparing

this type of LCA for the purely electrically

powered Audi e-tron 55 quattro,

which has been available from dealers

since March 2019. The analysis of this

car initially shows that CO 2

emissions

generated during the manufacture of an

Audi e-tron are twice as high as during

production of a comparable vehicle with

an internal combustion engine (Audi Q5

2.0 TFSI quattro S tronic): In the case of

the Audi e-tron, emissions amount to

around 20 metric tons of CO 2

equivalents,

whereas the production of the Audi Q5

incurs just under 10 metric tons.

However, CO 2

emissions level out after

about just half of the car’s total mileage.

This is because the electric car’s utilization

phase – even when it is being

“refueled” with today’s EU electricity

mix – emits significantly less CO 2

than

a comparable vehicle with an internal

combustion engine in this segment. If the

vehicle is powered purely with electricity

from reusable sources, then almost

no emissions are generated, since electric

vehicles drive locally with zero CO 2

emissions. At the end of its product life

cycle (calculated as 200,000 km), and depending

on the energy source, the Audi

e-tron has then emitted about 20 to 35

metric tons of CO 2

into the atmosphere.

However, this figure would be much

higher for a comparable vehicle with

an internal combustion engine.

Two paths to optimization

Two important recommended actions

aimed at making electric cars more environmentally

friendly can be derived

from this LCA comparison. On the one

hand, using “green” electricity to charge

an electric vehicle during the utilization

phase is recommended to keep CO 2

emissions

as low as possible. On the other

80

Global Goals Yearbook 2020


hand, the manufacturing process must

be optimized, because battery production

in particular is very energy-intensive. In

fact, it is regarded as the main cause of

CO 2

emissions during the production of

an electric car. Audi is therefore committed

to significantly reducing this

particular piece of “CO 2

baggage” and,

for instance, requests that its cell suppliers

use green electricity. In addition,

the company is also looking at measures

in the value chain that have an impact

long before they reach the car.

Responsible battery value chain

That is why Audi is an active member

of the GBA, a multistakeholder platform

that currently consists of more than 70

members from the public and private

sectors. It was launched in 2017 under

the umbrella of the World Economic

Forum. The goal of the GBA is to establish

a sustainable and more environmentally

friendly value chain for batteries.

According to initial findings, this would

save approximately 30 percent of greenhouse

gas emissions within the transportation

and energy sector by 2030. At the

start of 2020, the GBA published 10 guiding

principles for a sustainable battery

value chain. Collaborating in this initiative

is extremely important to Audi, as

demonstrated by the following statement

from Hildegard Wortmann, Member of

the Board of Management, Sales and

Marketing, Audi:

“For Audi, batteries are key on

our way to carbon-neutral

mobility. To ensure that this

technology is thoroughly

sustainable, we welcome and support

the GBA initiative and our

common principles. We believe in

the power of join the GBA

as well. Audi is striving for a

reliable “sustainability

performance seal,” carried out

by robust stakeholder engagement,

which stands as a global

reference for clean and

ethical produced batteries.”

Greenhouse gas potential [t CO2 eq.]

50

45

40

35

30

25

20

15

10

5

Legend

Production Utilization Recycling

0 km

Audi e-tron 55 quattro*

efficiency 265 kW

(MY2019)Electricity

from renewable sources

Audi Q5 2.0 TFSI*

quattro S tronic

185kW (MJ 2017)

In addition to its general commitment to

the GBA, Audi is also actively involved

in the GBA’s initiative aimed at creating

what is being referred to as a Battery

Passport. The passport represents a

digital image of a physical battery and is

intended to serve as a quality seal for a

sustainable battery value chain. Thus, it

contains key information about relevant

environmental criteria. When implementing

the passport, consideration is

given not just to CO 2

emissions, but to all

the sustainability aspects that are relevant

within the value chain, including the

responsible procurement of raw materials

such as cobalt. The focus is especially on

social and societal risks, such as respect

for human rights and the prevention of

child labor or occupational risks. In the

end, the Battery Passport is intended to

ensure that the entire battery value chain

100,000 Km

200,000 Km

Audi e-tron 55

quattro*efficiency

265kW (MY2019) EU

electricity mix

Audi Q7 3.0 TDI*

quattro tiptronic

200 kW (MY2016)

(NEDC)

* Audi e-tron: Combined power consumption in kWh/100 km: 24.3–21.0 (NEDC); 26.6–22.4 (WLTP),

combined CO2 emissions in g/km: 0. Audi Q5 2.0 TFSI (model year 2017 // NEDC) and Audi Q7 3.0

TDI (model year 2016 // NEDC): Vehicles are no longer offered for sale. Fuel/electric power

consumption and CO₂ emission figures for current models can be found on page 110

is sustainable, verifiable, transparent, and

plausible. However, there is a great deal

to do on the path to achieving this quality

seal: The measures were implemented

recently and the GBA aims to publish

the first version of the Battery Passport

by the start of 2021.

Commitment to the SDGs

By participating in the GBA, Audi is not

only contributing to upholding the Paris

Agreement, but it is also doing its part to

achieve the UN Sustainable Development

Goals. This particularly applies to Goal

8 (Decent work and economic growth),

Goal 12 (Responsible consumption and

production), and Goal 13 (Climate action).

Audi has also expressly committed itself

to the Sustainable Development Goals as

part of its sustainability strategy.

Global Goals Yearbook 2020 81


SHAPING THE CIRCULAR

FUTURE OF E-MOBILITY

Electric mobility – powered by renewable energy and in combination with circular economy

concepts – plays a decisive role in the transition to a climate-friendly society. Cathode active

materials (CAM) are key to making e-mobility a practical reality for everyone. By 2025, BASF’s

innovations in battery materials aim to double the driving range of midsize cars, from 300 to

600 km, on a single charge and reduce the charging time to 15 minutes. At the same time,

BASF is contributing to a circular value chain by providing efficient recycling technologies to

regain valuable metals used in batteries for electric vehicles (EVs).

By Daniel Schönfelder and Tim Ingle, BASF

In 2018, BASF announced the construction

of a battery materials precursor plant

in Harjavalta, Finland. The plant is being

constructed adjacent to the nickel and

cobalt refinery owned by Norilsk Nickel

(Nornickel), with whom BASF has a longterm

supply agreement for nickel and

cobalt feedstocks. It will utilize locally

generated renewable energy sources, including

hydro-, wind-, and biomass-based

power. The precursors of the cathode active

materials (PCAM) from the Harjavalta

plant will be used in BASF’s new battery

materials production site in Schwarzheide,

Germany. The new plant is part

of a multi-step investment plan to support

the European EV value chain. This

state-of-the-art plant will produce CAM

82

Global Goals Yearbook 2020


with an initial capacity that enables the

supply of around 400,000 full EVs per year

with BASF battery materials stemming

exclusively from European sources. The

Schwarzheide plant’s modular design and

infrastructure will allow for the rapid

scale-up of manufacturing capacities, enabling

BASF to meet increasing customer

demand for the European EV market. The

start-up dates for the two plants in Finland

and Germany are planned for 2022. These

European plants will complement existing

facilities in Asia and North America,

making BASF the first CAM producer with

a local presence that serves customers in

three key regions.

BASF’s sustainability strategy and targeted

investments are aligned with the objectives

of the European Green Deal. We

will contribute to a competitive circular

value chain for e-mobility and, in particular,

batteries. The New Circular Action

Plan – with sound implementation of

the “strategy for a sustainable and smart

mobility,” including battery regulation –

is key for a regulatory environment that

fosters European economic growth and

balances the environmental footprint.

As a producer of CAM for electric vehicles,

BASF is already looking into the use of

recycled raw materials in its production,

thereby closing the loop in the battery

value chain. We provide proprietary

recycling technology to significantly

increase extraction efficiency, which

complements our CAM portfolio for

lithium-ion batteries. Our innovations in

recycling processes enable high-efficiency

lithium extraction. Due to the relatively

high scrap rates in the manufacturing

processes along the battery value chain

for EVs, sizable quantities of recyclable

materials are available even today. We expect

a scale-up of the global EV market in

the coming years when large amounts of

batteries reach the end of their lifecycles,

making recycling an important market

requirement. In this context, one major

advantage of battery materials recycling

is that it complements the sourcing of

virgin metals from mining. A closed loop

for battery materials keeps them in the

use phase for a longer period and reduces

the waste of precious resources at the

end of the battery’s life. What is most

important in terms of climate protection:

Recycled batteries have a lower carbon

footprint compared to those made of

primary raw materials.

Together with its partners, BASF has taken

concrete steps toward developing innovative

and sustainable battery recycling. One

step is the development of new lithiumion

battery recycling capabilities. This

will make it possible to respond to the

strong growth in this global market over

the coming years and to secure the supply

of raw materials required for this energy

transition. In early 2020, BASF signed a

cooperation agreement with the partners

Fortum and Nornickel to plan a battery

recycling cluster in Harjavalta, Finland.

This would enable a successful closed loop

cycle to reuse the critical metals present in

used batteries. BASF is focused on bringing

solutions concerning high-efficiency

lithium extraction for battery recycling

within this cooperation. It intends to use

recycled materials from the processes developed

by the companies in its planned

battery materials precursor plant in

Harjavalta. Using metals from recycled

batteries to produce battery materials

offers significant reductions in CO 2

during

the production of EVs. Additional

CO 2

reductions can be achieved by using

electricity from renewable sources in

Finland for the recycling process. The

establishment of a circular value chain

further contributes to BASF’s ambitious

sustainability target to achieve CO 2

-neutral

growth until 2030.

In addition, BASF is partnering with

Eramet and SUEZ in the “Recycling Li-ion

batteries for electric Vehicles” (ReLieVe)

project, which will receive substantial

funding of €4.7 million from EIT Raw

Materials (European Institute of Innovation

and Technology), a consortium

initiated and funded by the European

Union, and the three members. The

objective is to develop an innovative,

closed-loop process to recycle lithiumion

batteries from EVs and to enable the

production of new lithium-ion batteries

in Europe. As of January 2020, and over

a two-year period, the ReLieVe project

will carry out a series of activities for

the large-scale development of this innovative

process and the structuring of

an integrated industrial sector: from the

collection and dismantling of end-of-life

batteries going into recycling, all the way

to the manufacturing of new electrode

materials. BASF will contribute to the

project with expertise in cathode material

production. The virtuous recycling

process meets the essential challenges

of sustainable performance through its

savings on raw materials.

BASF and its partners are preparing for

the battery materials recycling market

scale-up by increasing recycling yields

and building an integrated value circle.

BASF is also actively involved in the

World Economic Forum’s Global Battery

Alliance (GBA), which it cofounded in

2017. The GBA has around 70 members,

all of whom are committed to creating a

socially responsible, ecological, economically

sustainable, and innovative value

chain for batteries. The GBA is committed

to fostering a circular approach to batteries,

including their design and the use of

recycled materials to drive greenhouse

gas reductions. This commitment would

be based on a wide range of considerations,

including performance safety, longevity,

material efficiency, safe and easy

disassembly, a design based on lifecycle

analysis, and on state-of-the-art technologies.

It also embraces the use of recycled

materials to drive market support for

economically viable circular material

flows, when available and appropriate.

Global Goals Yearbook 2020 83


PROSPERITY AND PROGRESS

IN HARMONY WITH THE

EARTH’S LIMITS

For half a century, humanity has consumed more resources and generated more emissions than

nature can cope with. This has led to climate change, water scarcities, and a loss of biodiversity.

What’s more, the world’s population continues to grow and life expectancies are increasing.

Although mankind has made tremendous progress in recent decades and livelihoods have

improved on a global level, poverty, inequality, illness, and hunger remain the most urgent

challenges of our time. Nonetheless, there is overwhelming scientific evidence that humanity

cannot continue at the current level of resource consumption. The world must find a new

balance between production and protection.

By Matthias Berninger, Bayer

Bayer’s leading businesses of health and

nutrition represent a unique combination

of two life science fields that are

system-relevant for addressing these

challenges. We have made bold commitments

for inclusive growth and sustainable

development in line with the

UN Sustainable Development Goals and

have anchored them in our strategy and

operations. This undertaking meshes

perfectly with our vision “Health for all,

Hunger for none.”

The global population continues to rise.

By 2050, it will grow by another two billion,

reaching an estimated 9.7 billion

people. Society must ensure that more

people have access to nutritious food

and healthcare, while at the same time

conserving natural resources, protecting

biodiversity, and reducing greenhouse

gas emissions.

This is precisely why we decided to anchor

sustainability more firmly in our

Group strategy. As a key player in the

fields of healthcare and nutrition, we

have a particular impact on “Zero hunger”

(Goal 2) and “Good health and well-being”

(Goal 3) and will also play our part in

the fight against poverty (Goal 1). In

addition, we are intensifying our focus

on empowering women (Goal 5), redoubling

our efforts to reduce greenhouse

gases and tackle the impacts of climate

change (Goal 13), and protecting life on

land (Goal 15).

Sustainable intensification of

agriculture

According to the UN, by 2050 food production

needs to increase by 50 percent

relative to 2012 in order to cope with the

predicted population growth. With current

production standards, this cannot

be achieved; there is simply not enough

arable land available.

We need a social consensus that focuses

on a science-based agricultural revolution

rather than on a romanticized

approach. We do not regard small and

large producers as rival forces, and the

same applies to ecological and conventional

agriculture, and traditional and

genetically optimized seeds. We firmly

believe that a combination of all these

approaches is needed.

We are therefore innovating to sustainably

increase crop yields on already

existing acreages. For instance, our

researchers are working on improving

the climate resilience of crops, for example

corn with shorter stalks that do not

break in the event of a storm, thus pro-

84

Global Goals Yearbook 2020


tecting the harvest. In another pioneering

project, we are collaborating with

partners to develop plants that produce

the nitrogen they need themselves and

no longer have to be fertilized artificially.

Empowering smallholders

Farmers harvesting rice in India:

Bayer wants to provide increased

support for smallholder farmers, who

are the mainstay of food production

in many developing and emerging

countries.

In low- and middle-income countries

(LMICs), smallholder farmers are essential

for local food supplies, but they often

suffer from hunger, malnutrition, and

poverty themselves. By 2030, we aim to

support 100 million smallholder farmers

by improving access to agronomic

knowledge, products, and services. In

doing so, we will increase their yields

and incomes as well as contribute to

fighting poverty in rural areas.

Women are central to boosting

socio-economic development

Experts consider the lack of women’s

empowerment as one of the main factors

hindering successful socio-economic

development in LMICs. Today, more than

200 million women in developing countries

have an unmet need for modern

contraception, an essential component

of family planning. This is not only central

to women’s health, but also gives

them greater autonomy over their lives,

which can have a positive ripple effect on

families and communities. As the leading

women’s healthcare company, our

goal is to provide 100 million women in

LMICs with access to family planning by

2030 by contributing to multistakeholder

programs and ensuring the supply of

affordable, modern contraceptives. In

this way, we want to improve women’s

health, rights, and economic status – a

large step toward gender equality.

Access to everyday healthcare

More than half of the world’s population

today has no access to adequate

self-care products and services, and this

figure could potentially rise to five billion

people by 2030. Besides helping current

patients avoid illness, expanding access

to everyday healthcare also improves the

health of younger generations, reduces

costs, and offers the chance of a better

future. As a leading Consumer Health

company, we will expand access to everyday

healthcare for 100 million people in

underserved communities around the

world by 2030. Our proven consumer

brands will drive this ambition.

Carbon-neutral operations and

reduction of GHG emissions along

our value chains

Bayer has set out to become carbon

neutral by 2030 and reduce emissions,

including in our value chain. With that

in mind, we have joined Science Based

Targets, an initiative that promotes increased

energy efficiency and a switch

to green energy.

Agriculture currently accounts for about

a quarter of the world’s GHG emissions.

As such, the biggest contribution to

reducing greenhouse gases can be made

by our customers. We will help farmers

cut GHG emissions from their fields

by 30 percent per kilogram of yield by

2030 through the use of eco-friendly

products and technologies. This pledge

is unprecedented in the industry, as is

our endeavor to also reduce the environmental

impact resulting from the

use of our crop-protection products by

30 percent.

A special challenge lies in finding effective

ways to offset unavoidable emissions.

With our digital innovations, which enable

us to determine exactly what is happening

on and in the field, right down to

the smallest furrow, we want to lay the

groundwork for a new line of business for

farmers across the globe. We furthermore

intend to establish a private market for

sequestering CO 2

in the ground. Combining

cultivation methods that retain a lot of

CO 2

in plants and soil will enable farmers

in food production to benefit from an

additional source of income.

Economic success and sustainability

go hand in hand

We consider attaining these sustainability

targets to be just as important

as meeting financial goals. That is why

they are anchored in the remuneration

models for the Board of Management and

other managerial staff, as well as in our

company’s decision-making processes. In

accordance with our purpose of “Science

for a better life,” we want to help people

thrive on a healthy planet. In our eyes,

economic success and sustainability go

hand in hand.

Global Goals Yearbook 2020 85


NEXT-GENERATION

NONWOVENS GO

SUSTAINABLE

Nonwoven textiles do not loom large in the consumer’s mind, but they are big in the industrial

world. Their applications include industries such as healthcare, automotive, geo-engineering,

construction, agriculture, filtration, dredging, disposable, as well as durable carpeting and more.

As such, the average person is likely to encounter them in their day-to-day life more than they

may think. Unfortunately, their manufacture is traditionally resource-intensive, but Beaulieu

Fibres International’s UltraBond fibre can change this.

By Maria Teresa Tomaselli and Valérie Bouckaert, Beaulieu International Group

UltraBond is a bonding staple fibre that

eliminates the need for latex or other

chemical binders in nonwovens. The traditional

downside of nonwoven fabrics

that need latex is that they cannot be recycled

without substantial downgrading

and loss of performance, so nonwovens

that bypass the need for latex in their

manufacture now have a clear path to

the circular economy.

In industries such as event carpeting, this

is a major advantage, considering that

annually, 120 million square meters of

event carpet ends up in incinerators or

landfills. In addition, UltraBond-based,

thermally bonded fabrics allow for cost

savings due to their greater rest value

after use, and they require lower energy

and water consumption levels during the

manufacturing process than chemically

bonded fabrics. But how does UltraBond

work?

No latex needed

Nonwoven carpets and needlepunched

fabrics are typically produced by interconnecting

man-made staple fibres into

a felt. To achieve a strong enough bond

of the fibres to withstand installation

86

Global Goals Yearbook 2020


and usage, an extra component such

as latex is added. The felt is submerged

into a dispersion tank, after which the

remaining water is evaporated using

an energy-intensive thermal process.

UltraBond does not work this way and

only needs thermal treatment.

The UltraBond fibre is specifically

designed to have a lower melting temperature

than normal polypropylene

than normal polypropylene (PP) fibres:

140°C for UltraBond versus 160°C for

regular PP fibres. PP fibre can be blended

into an existing nonwoven composition,

and the bicomponent PP fibre guarantees

additional strength and stiffness without

requiring additional blends with other

raw materials.

Saving 20 million liters of water a year

A traditional fibre application such as

exhibition carpet uses 0.2 liters of water

per square meter to make bonding

agents such as latex work. By taking

latex out of the equation, UltraBond also

bypasses the need for water. Looking at

the event carpet market in Europe alone,

this could potentially save 20 million

liters of water per year.

UltraBond’s manufacturing process

saves a whopping 93 percent of energy

expenditure because no water needs to

be evaporated. This obviously reduces

energy costs and lowers the carbon footprint

(by 35 percent).

Flagship product on board

UltraBond is already being used in products.

One of them is the Rewind recyclable

event carpet, which was launched by

Beaulieu International Group at the end

of 2019. Crucial to Rewind’s success was

that the UltraBond-based carpet would

match – or even exceed – traditional

event carpet performance in terms of

sturdiness, anti-piling, and color evenness.

It passed its first test with flying

colors: It was used at the COP 25 Climate

Change Conference in Madrid from

December 2 to 13.

THE ALCHEMY OF

ULTRABOND

Blending of PP fibres + UltraBond

oven

PP Fibre

UltraBond

Bicomponent fibre UltraBond

Low melt

sheath

oven

High

strength core

Maria Teresa Tomaselli, General Manager


Beaulieu Fibres International, comments:

Filtering the future

We see textile flooring as just

the beginning. We look forward

to exploring the potential of this

unique thermal bonding fibre in

other nonwoven or textile

applications, such as laminated

nonwovens or as an alternative

to dry powders.

UltraBond-based fabrics have the potential

to branch out in other markets. On

top of the environmental benefits, the

thermally consolidated UltraBond fibres

in nonwovens are on a level with latexbonded

nonwovens in terms of stiffness,

without affecting porosity. UltraBond

fibres can become attractive alternatives

in technology sectors such as water and

air filtration industries, life sciences,

and geotextiles. All of them are looking

for sustainable alternatives to current

solutions.

In the flooring world, further applications

for contract flooring are also possible,

for example in showrooms, office

spaces, museums, and other areas that

experience high-frequency foot traffic.

The average person will not notice the

difference with traditional PP fabrics,

but the environment will.

ULTRABOND’S

SUSTAINABILITY

ADVANTAGES IN A

NUTSHELL

• Reduced energy consumption:

Curing latex is energy-intensive, but

because of the absence of latex,

less heat is needed.

• No water consumption: As a consequence

of not needing water (traditionally

one of the key agents in

the latex bonding process), Ultra-

Bond-based PP event carpets can

save as much as 20 million liters of

water a year.

• Lower CO 2

emissions: Using Ultra-

Bond in the manufacturing process

of nonwoven needlepunch fabrics

lowers CO 2

emissions by an average

of 35 percent, potentially cutting

back up to 10,000 tons of carbon

emissions for the European event

carpet market alone.

• Contribution to the circular economy:

Latex-bonded PP cannot be

recycled, but UltraBond-based products

can. Not only does this reintroduce

pellets into the economy after

recycling, it also removes waste

from landfills and lowers carbon

emissions from incinerators.

WHO IS BEAULIEU

INTERNATIONAL

GROUP?

Beaulieu International Group was

founded in 1959 in Belgium and is a

global producer of flooring solutions,

engineered fibres, yarns, and technical

textiles as well as polymers. It

employs nearly 5,000 people worldwide.

Beaulieu International Group

enjoyed a 2019 turnover of €2 billion.

Beaulieu Fibres International, the

brand that created the UltraBond

fibre, has production facilities in

Belgium and Italy.

Global Goals Yearbook 2020 87


ADVANCING WITH FORESIGHT:

CLIMATE ACTION BEYOND

COMPANY BOUNDARIES

Bosch is dedicated to playing a pioneering role in climate action. In 2018, the board of

management adopted an ambitious CO 2

strategy: Bosch aims to be climate neutral worldwide as

of 2020 in order to make a concrete contribution to the 2015 Paris Agreement of the United

Nations, which seeks to limit global warming to 1.5°C. On top of its objective to make its more

than 400 locations climate neutral as of 2020, Bosch is going a step further: The company has

additionally set itself an ambitious target for lowering indirect emissions in order to reduce its

carbon footprint – even beyond company boundaries.

By Torsten Kallweit and Annette Wagner, Bosch Group

Bosch knows that many changes, new

approaches, and innovations are needed

quickly to effectively support climate action.

As the efforts to achieve energy efficiency

also contribute toward becoming

more cost-efficient, the company also sees

major opportunities. The climate goal of

being carbon neutral by 2020 refers to the

energy generated by the company itself

and the energy volume purchased for its

more than 400 locations worldwide – this

covers engineering, manufacturing, and

administrative facilities (Scopes 1 and 2

of the Greenhouse Gas Protocol). Here

Bosch can directly influence the reduction

of greenhouse gases and make a major

impact in a short time. The company is

also setting itself an emission reduction

target for the upstream and downstream

stages of the value chain (Scope 3) of 15

percent by 2030, focusing on the categories

of purchased goods, logistics, and the

use of products sold. In addition to this

specific goal, Bosch wants to make an active

contribution to ensuring that its value

chain will also be climate neutral by 2050.

Climate neutrality as of 2020

Despite the challenges from Covid-19,

Bosch is maintaining its long-term strategic

course and continuing with its

systematic pursuit of becoming carbon

BOSCH CLIMATE GOALS

Purchased goods and logistics

Scope 3

Own generation

and purchased energy

Scopes 1 and 2

Use of products sold

Scope 3

Energy efficiency

New clean power

Green electricity

Carbon offsets

neutral. When it comes to achieving

this target, Bosch is making progress:

Already by the end of 2019, all German

sites had become carbon neutral. To this

date, Bosch has achieved 70 percent of

its target on a global scale. By the end

Climate neutrality as of 2020

Science Based Targets

initiative (SBTi)

– 15%

by 2030

88

Global Goals Yearbook 2020


of 2020, 100 percent carbon neutrality

will have been achieved, and Bosch’s

worldwide development, manufacturing,

and administration activities will no

longer leave a carbon footprint.

To make this a reality, the company is

investing in energy efficiency, increasing

the proportion of renewables in its

energy supply, buying more green power,

and offsetting unavoidable carbon emissions.

Bosch is also making progress in

improving the quality of its measures to

maintain carbon neutrality until 2030.

For instance, the share of carbon offsets

in 2020 will be significantly lower than

planned – just 25 percent.

holistic supply chain network design

is intended to strengthen the regional

procurement and production of goods

and avoid air transport. In addition, by

increasingly combining freight, Bosch

wants to reduce transport and optimize

routes and capacity utilization. Product

design geared to energy efficiency

is already contributing to the reduction

of emissions with regard to how

products sold are used. In 2020, Bosch

wants to identify additional potential

for further reducing the CO 2

emissions

of its products. On top of that, Bosch

has already decided on a measure for

the category of associates’ transport:

Starting in 2020, Bosch will make air

travel of all associates carbon neutral

by using carbon offsets. The costs will

be included directly in the airfare.

Torsten Kallweit and Annette Wagner lead the

Bosch Group’s corporate EHS and sustainability

departments. Torsten Kallweit is also CTO of

the newly established Bosch Climate Solutions.

For more information, please visit:

sustainability.bosch.com

Climate action along the value chain

To ensure its own efforts have a multiplier

effect on the economy, Bosch

also set a target for reducing its Scope 3

emissions – which means tackling emissions

in the upstream and downstream

activities along the value chain.

Upstream emissions in the Bosch value

chain concern categories such as purchased

goods and services, logistics, associates’

commutes, and business trips.

Downstream emissions are mainly

caused by the use and disposal of products.

To calculate the carbon footprint,

Bosch has analyzed all Scope 3 categories

of the Greenhouse Gas Protocol and

focused on those that account for the

largest share of CO 2

emissions. These

are purchased goods, logistics, and the

use of products sold. In order to live up

to self-imposed standards, Bosch wants

to reduce CO 2

emissions by at least

15 percent by 2030, or more than 50

million metric tons per year. To this end,

Bosch has agreed on a target with the

Science Based Targets initiative, making

Bosch the first automotive supplier to

commit to a measurable target.

To achieve this, Bosch will identify

the supplier groups creating the largest

volumes of CO 2

emissions in order

to work with them on mitigation

measures. In the field of logistics, a

Bosch intends to increase own power generation

from renewable sources of energy such as

photovoltaics and wind to 0.4 TWh in 2030.

CLIMATE SOLUTIONS FOR THE ECONOMY

To make its experience available to other companies and to help them progress

toward carbon neutrality, Bosch pools the knowledge of nearly 1,000 Bosch

experts worldwide and offers access to the results of more than 1,000 energyefficiency

projects of its own in a new advisory company called Bosch Climate

Solutions. The newly established operating unit develops tailored solutions for

customers and shows how to strike the right balance between economic and

ecological considerations. “We want to make our experience available to other

companies, to help them progress to carbon neutrality,” says Dr. Volkmar Denner,

Chairman of the Board of Management of Robert Bosch GmbH. In doing so, Bosch

enables companies to develop their own climate protection plan: from the

analysis of the carbon footprint to the concept and throughout the implementation

of a dedicated reduction plan.

Global Goals Yearbook 2020 89


FROM WHISTLEBLOWING TO

COMPLIANCE SOLUTIONS

The field of compliance has undergone major developments over the last 20 years. Although

in the beginning the importance of business ethics was not recognized, or even rejected, and

compliance was only seen as a set of regulations, the understanding of a value-oriented

corporate culture gradually grew. This was accompanied by the development of compliance

software to support people who want to report misconduct without fear of retaliation, and thus

to help build better ethics in businesses.

By Kai Leisering, Business Keeper

Twenty years ago, when it all started

under the supervision of the UN, states

and businesses shared a vision of making

the world a better place. They agreed on

goals that would enable – and promote

– progress in people’s social and ecological

conditions, and therefore would

improve the quality of life for everyone.

An integral part of the defined measures

has been fighting corruption – an evil

that challenges equal chances for all

people regarding wealth, employment,

and a healthy environment. Those who

developed the early initiatives realized

that defining common rules for ethical

behavior and business ethics can be a

strong foundation on which to build.

Over time, this has led to global policies

and legislation that have incorporated

basic principles to fight corrupt practices.

But what are these rules, which are just

written down on paper, able to change?

Missing awareness for corrupt

actions

Kenan Tur was an early pioneer. Being

involved in the discussions about how

to support global initiatives on fighting

corruption, he became aware that these

rules needed to include the possibility

for people to speak up without having

to fear retaliation and negative consequences,

especially when pointing out

misconduct. Motivated by his belief that

even a single person can make a difference,

he decided to develop the world’s

first web-based whistleblowing software,

and thus gave birth to Business Keeper.

Business Keeper was founded with the

goal of protecting the identities of people

who have information about possibly

corrupt actions within their organizations

and want to report them without

being publicly labeled as an informer.

At the beginning, Tur’s idea was rejected,

and he experienced resistance from

nearly all the big players. This included

the suggestion that no malpractice was

occurring, and there was denial that a

corruption problem even existed. But

conviction and passion kept him going.

Perhaps as a result of the numerous corruption

scandals that have become public,

an important positive development has

been the common understanding of some

of the leading companies worldwide,

namely that committing to the fight

against corruption requires organizational

measures. These measures include,

for example, appointing people at the top

of the organization’s hierarchy to assume

responsibility, to define guidelines and,

in the end, to implement a Compliance

Management System. This led to whistleblowing

systems becoming standard and

an accepted best practice instrument in

the fight against corruption. Decades

later, in 2020, this is considered normal,

and some might have even forgotten that

this was not always so.

Business ethics require new

compliance tools

Over time, compliance has grown into

something bigger. Whereas compliance

focused only on fighting corruption in

the early days, it has now become the

central governance function in organizations

and includes many other areas,

ranging from competition law to data

privacy, and from IT security to employees’

90

Global Goals Yearbook 2020


www.business-keeper.com

health and safety. At the same time,

compliance continues to include new

developments such as sexual harassment,

#metoo, manipulation of technical

processes, and many other topics.

There has also been a change in scope:

Whereas at the beginning, the focus was

mainly to look at the internal organization

and ensure the proper behavior of

employees, compliance now extends to

anyone related to an organization, be it

persons within global supply chains or

anyone acting on behalf of – and in the

name of – the organization. Nowadays,

all of these are part of the governance

structure and should be covered through

defined measures.

This development has led to growing

levels of compliance within organizations

while raising awareness that

the relationship between costs spent

for compliance and achieving goals

needs to be balanced. For compliance

departments, this has required efficient

processes and applications that allow

processes to be implemented which

cover large numbers of people in and

around the organization. At the same

time, the processes allow for managing

people with a small number of compliance

officers.

Business Keeper has remained aware

of these changing requirements and

new challenges, and therefore it has

continued to enhance the suite of software

solutions to help organizations.

This includes evolved case management

and reporting solutions, software that

allows for automating and supporting

third-party due diligence processes, as

well as an application that allows for the

easy handling of benefits and gifts, and

any other relevant approval processes in

organizations on a local or global scale.

After 20 years, compliance has become

an extremely important element for

companies of all sizes and in all industries.

No one any longer questions

that business ethics are important and

relevant. Looking back over the last 20

years, good progress has been made

compared to when it all began – but

there is still a long way to go.

BUSINESS

KEEPER

As the first provider of electronic

whistleblowing systems

and the European market

leader in compliance software,

Business Keeper has developed

integrity and compliance

applications to help fight whitecollar

crime such as corruption,

money laundering, and other

crimes against society for

more than 20 years.

The company collaborates with

leading experts and participates

in numerous networks

to help customers integrate

various aspects of whistleblower

protection in an optimal

manner, and to support them

in matters of ethics and compliance.

Global Goals Yearbook 2020 91


WE CONTINUE TO GO

FURTHER AND CONTRIBUTE

TO OUR 5 PRIORITY SDGs

At CEMEX, we live our purpose of building a better future, which is embedded in our strategy,

operations, and our culture. CEMEX has a rich history of contributing to the well-being of those it

serves through innovative building solutions, efficiency advancements, and efforts to promote

a sustainable future.

By Martha Herrera, CEMEX

Our approach to the UN Sustainable

Development Goals

The SDGs represent business opportunities

for CEMEX and contribute to the

2030 Agenda for Sustainable Development

of the United Nations (UN). Our

sustainability goals are aligned to the

five priority SDGs for our company. They

are designed to enhance CEMEX’s economic,

environmental, social, and governance

pillars and contribute toward

the achievement of a better and more

sustainable future for all.

As a leading building materials company,

we recognize and embrace our responsibility

in the development of sustainable

cities and the generation of shared

values among communities. As part of

this purpose, we collaborate very closely

with field experts, authorities, customers,

suppliers, NGOs, and other stakeholders

so that our products and solutions not

only address all of our customers’ construction

needs efficiently and effectively,

but also accomplish those needs in the

most sustainable way.

Social entrepreneurs from our

Social Innovation Award

Global Goals Local Business

regional event end of 2019

92

Global Goals Yearbook 2020


Building upon our commitment to the

SDGs, in collaboration with a multidisciplinary

group within CEMEX, we connected

stakeholders’ objectives, risks, and

financial and non-financial indicators to

set our five priority SDGs, upon which

we can contribute even further toward

achieving the UN’s established goals of

Agenda 2030. Our five goals are focused

on the promotion of decent employment

and economic growth (Goal 8); innovation

and infrastructure development

(Goal 9); climate change mitigation (Goal

13); environmental and ecosystem conservation

(Goal 15); and the advancement

of sustainable cities and communities

(Goal 11). We devised internal output

indicators in order to keep track of our

contributions toward selected targets. In

2019, we selected our main actions and

programs, and we are currently working

to unify them in order to further increase

our SDG contributions.

Collaborating and sharing best

practices with UN initiatives

CEMEX is a member of the United

Nations Office for Disaster Risk Reduction.

In 2019, we led the ARISE Mexico

Forum: Resilience for All. During the

forum, we promoted resiliency through

disaster risk management within companies

to generate value for society.

We further protect integrity and wellbeing

by integrating disaster prevention

through appropriate training, policies,

and infrastructure involving our

employees, communities, national

and local governments, academia, civil

society organizations, and multilateral

organizations.

We continue to lead the UN Global

Compact (UNGC) in Mexico, inspiring

and motivating business leaders to join

this initiative and promote inclusive

prosperity and sustainable development.

In 2019, through our role in the Global

Compact Network in Mexico, we led

the signing of a collaboration agreement

between the government of Mexico,

the private sector – represented by the

Business Coordinating Council – and

the local Global Compact Network in

Mexico and led Making Global Goals

Local Business – Mexico, where more

than 800 participants shared best practices

to collaborate and play a more active

role in the achievement of the SDGs.

We will continue pursuing our purpose

of building a better future, ensuring a

sustainable growth to further advance

the SDGs and mitigate impacts and risks,

by operating in a more agile way, seeking

disruptive innovation and collaboration

with organizations that also are guided

by their purpose and are committed with

the UN SDGs.

Agreement signed by government, private

sector, and the UNGC on Agenda 2030

Global Goals Yearbook 2020 93


Enabling a Circular

Plastics Economy

One of the biggest environmental threats of our time is plastic waste. Governments across

the globe must take immediate action to reduce plastic waste and increase recycling levels.

Industry partners along the value chain as well as consumers will need to change their

behaviors and established paths, primarily concerning packaging. Clariant’s answer to these

challenges is EcoCircle, a circular plastics economy initiative.

By Dr. Bettina Siggelkow, Clariant

There is no doubt that we enjoy the

benefits of plastic every day – not only in

packaging, for example for food preservation.

However, we are constantly facing

the consequences of improperly

handled plastic waste, which is polluting

our environment and damaging flora

and fauna across the globe. It is therefore

necessary to act now to dramatically

reduce plastic waste and to start

seeing it as a raw material source for

new products. At Clariant, the circular

economy is a central element of our

sustainability strategy. We are convinced

that only through the close collaboration

of industry partners across the value

chain can a circular plastics economy

be realized. Sustainable results for a

circular economy require that products

are considered cost-efficient, not only

for direct application, but also when it

comes to their purpose along the circular

value chain. This opens up a new dimension,

offering potential for product and

business model innovations.

EcoCircle – A Circular Plastics

Economy Initiative

A key aspect of collaborating to achieve a

circular plastics economy is the outreach

of industry partners to all players along

the value chain. This includes brand

owners, polymer producers, designers,

retailers, sorters, recyclers, and converters

– partners that, so far, have only had

limited direct interaction. These types of

cooperation are more complex, not only

due to the amount of project partners,

but also due to the different positions

within the value chains and there being

significant differences in legal frameworks,

specifications, and culture. This

often makes communication across the

new circular value chain challenging.

For a successful transformation toward a

circular value chain, it will be key to overcome

the gap and create a framework

to allow for joint project management.

Clariant has developed competencies to

effectively orchestrate the approach and

foster projects along the value chain to

drive successful product development

for a new circular value chain.

To help facilitate innovation and cocreation,

Clariant is setting up Centers of

Excellence. The integration of the knowl-

That is why Clariant created the Eco-

Circle initiative to address these challenges

and support the development of

a circular plastics economy. It combines

four key elements: collaboration across

the value chain, co-creation, technology,

and distinction.

94

Global Goals Yearbook 2020


edge on the main recycling pathways

(mechanical/chemical recycling) will

not only speed up product development,

but also allow for predicting behavior

within a circular value chain. Integrating

these considerations right from the start

during product development will, in the

future, be a key aspect for the industry

in successfully transforming the value

chain toward a circular economy. The

first center will be located in Pogliano,

Italy, and will focus on product design

and mechanical recycling for polyolefins

in supporting circular product design.

Plastic waste to be considered the

new raw material

Plastic packaging is by far the single

largest challenge to be solved. On the

one hand, it requires the largest amount

of plastic; on the other hand, it has the

shortest lifecycles in use. It accounts for

about 57 percent of the 250 million tons

of plastic waste produced globally every

year, of which only 10–20 percent is recycled,

and almost all of it is downcycled

to lower-value applications. To increase

the recycling rate, it is crucial to preserve

the quality of the plastic resin to enable,

for example, turning a plastic bottle into

a new plastic bottle using recycled plastic.

Many companies and organizations have

already announced concrete targets in

this direction, such as achieving 100

percent recyclability of their packaging

and using between 25–50 percent of

recycled plastic in their packaging by

2025. Achieving these targets will require

a change in collaboration approaches

among partners across the different value

chains in order to create new products

and establish new value chains that

include consumer involvement.

The role of consumers returning

plastic for recycling

On the path to a circular plastics economy,

consumers play an important role.

An extensive education of the global

population is required in order to send

the message that plastic waste is not

garbage, but an important raw material

source for future production. Independent

of the way in which plastic waste is

collected in different countries, the effective

and improved execution of recycling

efforts will be key. Consumers need to be

encouraged to collect plastic waste. This

can be done by creating an easy-to-use

system to collect and dispose of plastic

waste, enabling further economically

viable and feasible processing. With

no collection system in place, plastic

waste ends up in landfills, consumer

acceptance levels will remain low, and

the leakage of plastic waste into the environment

will take place. The success of

establishing a circular plastic value chain

is therefore based on congruent actions

taken by industry, governments, and

consumers. A joint education program

run by the industry and local authorities

will help to create the fundamental

shift in perceptions and understanding

within today’s society. This is one of the

fundamentals of the Alliance to End

Plastic Waste, which Clariant joined,

together with more than 30 companies.

These companies have pledged to invest

more than $1.5 billion in projects

to reduce plastic waste in the environment

by focusing on rivers and oceans,

expanding the recycling infrastructure,

and ensuring the required mobilization

of politicians and society.

Harmonized quality system for

recyclates

One of the fundamental drawbacks of

using recyclates in packaging today is

the availability of high-quality recyclates,

which are compatible with the processing

and quality requirements of brand

owners, converters, and consumers. Recyclates

show reduced quality because of

reduced polymer properties, color, and

odor. Counteracting the quality issues

concerning post-consumer recyclates

(PCR) starts with the packaging design,

for example avoiding different polymer

types in one packaging. Including the

impact on the recycling process in the

packaging design is a new approach

that can only be managed with a good

understanding of the circular value chain.

Value chain cooperations – one of the

key elements of Clariant’s EcoCircle initiative

– will play an important role in

this transition. Additionally, Clariant

is developing solutions for some of the

functional and critical performance issues

with PCR materials through additive

solutions as well as using adsorbent and

detergent technologies to help with the

purification in the recycling process, resulting

in higher-quality PCR. In addition

to product innovation, a harmonized

approach to defining recyclate quality

– similar to how it was done in the

paper industry some decades ago – will

facilitate the purchasing and usage of

recyclates. This will enhance the suitability

of reclaimed plastics for consumer

or industrial goods that are in popular

demand.

Global Goals Yearbook 2020 95


CARBON NEUTRALITY,

NATURAL RESOURCE

PROTECTION, WELL-BEING,

AND ECONOMIC DEVELOPMENT

On May 7, 2020, during its Annual General Assembly, EDF passed its raison d'être or purpose

through its by-laws. This purpose sums up the Group’s determination to take up the dual

challenge of economic recovery especially in light of Covid-19 and France and Europe’s goal of

achieving carbon neutrality.

By EDF Group

The CEO of EDF, Jean-Bernard Lévy, was

invited to address the UN Global Compact

on EDF’s actions during the Covid-19

health crisis. He expressed two firm

personal beliefs about what “the world

after Covid-19” might look like: a world

which shows more solidarity that – in

France at least – will put public services

back at the center of the model of society;

and a world that will see a greater outcry

from society to fight climate change with

determination.

The fight against climate change is

quite rightly central to EDF’s recently

announced purpose. This position is

reinforced by EDF’s decision to join

the 10 percent of companies that have

written their purpose into their articles

of association.

“We believe that reducing

our impact on

biodiversity and fighting

climate change go hand

in hand. That’s the idea

behind our purpose, to

build a net zero energy

future with electricity

and innovative solutions

and services, to help

save the planet and drive

well-being and economic

development.”

Jean-Bernard Lévy, CEO and Chairman,

EDF Group

This stance is backed up by concrete

measures. EDF Group has upped its 2030

(on the basis of its 2017 direct emissions)

target for direct CO 2

emission reductions

from 40 percent to 50 percent, and it has

committed to achieving carbon neutrality

by 2050. It has also committed to

reducing emissions relating to the energy

use of its customers and suppliers by

obtaining independent certification from

the Science Based Targets initiative. On

average, over the past decade, EDF has

invested between €12 billion and €15

billion a year in renewable and nuclear

power generation, energy services, smart

grids, and mobility (investments excluding

Group acquisitions and disposals). In

2019, 97 percent of these investments

went towards helping decarbonize the

electricity system, and 95 percent of

96

Global Goals Yearbook 2020


ACCELERATION IN DEVELOPMENT OF RENEWABLES

Target of 50 GW net installed capacity in 2050 in GW

50

50.0

+1,2 GW / yr

20

18.0

15

+2.1 GW / yr

10

+0.7 GW / yr 9.6

6.8

5

0

2015

2019

2023

2050

EDF Group also formally set out its

voluntary action plan on the “Entreprises

Engagées pour la Nature – act4nature

France” platform, created by the French

government via the OFB, the country’s

biodiversity agency. It is also engaged in

the act4nature international initiative,

which brings together French companies

that have global operations. EDF Group’s

commitments include:

• Monitor – and ultimately limit – soil

sealing when converting its former

fossil-fired power plants in France;

• In the nuclear sector in France and

the United Kingdom, action plans to

conserve and enhance biodiversity in

outstanding environments in partnership

with local actors;

• Work with the IUCN to develop wind

and solar power guidelines by 2021

that favor biodiversity;

• Reduce water and soil pollution by

pursuing its program to halt the use

of phytosanitary products at all of its

industrial sites;

• Continue to counter the proliferation

of invasive alien species, with priority

given to stepping up actions in Corsica

and French overseas territories;

• Work together with researchers to build

its future R&D actions on the effects of

water temperature on aquatic organisms;

its R&D operating budget in France

(€485 million) was dedicated to electricity

system decarbonization and transition.

Climate goals that go hand in hand

with biodiversity conservation

On June 15, 2020, EDF Group signed

up to the call for collective action to reverse

nature loss launched by the World

Economic Forum, the International

Chamber of Commerce, the World

Business Council for Sustainable

Development, the UN Global Compact,

the International Union for Conservation

of Nature (IUCN), and the Business

for Nature coalition, under which CEOs

from all over the world call for curbing

biodiversity erosion and reversing the

loss of the planet’s essential systems.

• Review its biomass policy in 2020 to

include new commitments in favor of

biodiversity;

• Extend the scope of its green-bond eligible

investments for biodiversity (to a calendar

depending on market conditions);

• Raise awareness of biodiversity issues

among the general public and EDF

employees.

EDF will report annually on the progress it

has made on its CSR goal for biodiversity

through its various publications.

Global Goals Yearbook 2020 97


THE NYK SUPER ECO SHIP

2050 IS THE VISION OF AN

EMISSIONS-FREE SHIP

By Elias Penttinen, Elomatic

In 2018, the Japanese shipping company

NYK launched its challenge for attaining

CO 2

-neutral shipping by 2050. NYK

referred to the International Maritime

Organization (IMO) goals, which state

that greenhouse gases from shipping

must be reduced by at least 50 percent

from 2008 levels. In 2012, although

shipping is the most energy-efficient

way of transporting goods, the share of

its global CO 2

emissions was 2.2 percent.

Prior to the announcement by the IMO,

NYK and its technology development

arm, the Monohakobi Technology Institute,

had already approached Elomatic

for a development roadmap toward a

more environmentally friendly operation.

The showcase vessel for the study was a

Pure Car and Truck Carrier (PCTC), which

is known as the NYK Super Eco Ship 2050.

Compared to current designs, energy

savings of 70 percent were achieved. An

emissions-free operation was reached

using primary fuel produced with

renewable energy.

The challenge of an emissions-free

operation

In principle, an emissions-free operation

requires a fuel with neutral or no

CO 2

emissions. The challenge is that

such fuels are rare, expensive, and in

most cases difficult to store. They also

are energy inefficient when the entire

footprint – from the primary energy

source to the bunker fuel on board the

ship – is considered. Therefore, the

use of alternative fuels in shipping

requires highly efficient ships and a

highly efficient operation of the fleet

and its logistical chain.

Minimal resistance is the key to

improvements

For a typical merchant ship, the biggest

power demand is for overcoming the

resistance of the ship. Resistance originates

from the need to move the ship

through water and air, with the former

being the dominating component.

The hull’s (the main body of a ship)

volume and shape are critical for reducing

resistance. The hull has to provide

buoyancy to carry the weight of the ship

and its cargo. To minimize the volume

of the hull, it is important to minimize

the weight while maintaining the cargocarrying

capacity. The weight without

cargo of the NYK Super Eco Ship 2050

was reduced by 30 percent using topology

optimization, the potential of 3-D

printing in manufacturing, and material

developments.

The other purpose of the hull is to provide

sufficient stability for the vessel,

which is especially critical for a PCTC.

In our vision, ships will have active

devices that provide sufficient stability

in a similar manner as fighter jets. In

the NYK Super Eco Ship 2050, this has

been done with gyro stabilisers.

The vessel is equipped with pontoons

that can be deployed if required. This

allows it to remain stable during emergencies

and other abnormal situations.

These developments will allow the hull

shape to be optimized with a greater

focus on resistance. Overall, the reduction

in vessel resistance is 35 percent.

Machinery and propulsion

Efficiency is the most important aspect

in prime movers, power distribution,

and propulsion equipment.

Hydrogen fuel cells were selected as the

prime movers of the vessel. Due to the

fuel cells and hydrogen fuel, a lot of

auxiliary equipment can be removed,

and therefore the maintenance requirement

is reduced. The electricity from the

fuel cells is fed into a highly efficient,

low-voltage DC grid.

Conventional propellers have been

replaced by flapping foils that mimic the

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Global Goals Yearbook 2020


several ways. It can reduce the required

power consumption on board when used

for air conditioning and cold equipment

in the kitchen. It can also improve the

efficiency of power distribution through

superconducting and reduce the surface

temperature of solar panels.

Outside view of the ship featuring solar panels and pontoons

Other sources of waste originating from

the ship’s operation are stored on board

the vessel and unloaded at port. This

improves the environmental footprint

of the vessel and reduces the amount

of equipment required onboard, such

as incinerators.

Operation

An inside view from a cargo deck featuring innovative use of materials

movement of fishtails to deliver greater

efficiency than screw-type propellers. The

flapping foils are driven with efficient,

permanent, magnetic electric motors.

Another important aspect is the creation

of renewable energy on board the

vessel. By 2050, solar power will be

the most cost-efficient new source of

energy at land-based as well as maritime

installations. Therefore, the ship area is

optimally utilized for solar panels that

can rotate to follow the sun for the best

possible efficiency. Fifteen percent of the

vessel’s energy demand will be covered

by solar panels.

Zero waste

One way to increase efficiency is to

eliminate all sources of waste. Excess

heat from machinery is already being

utilized today to produce electricity, but

the NYK Super Eco Ship 2050 will go one

step further. As the need for heating the

ship’s spaces decreases, there is no need

to heat the bunker fuel, the exhaust fume

temperature can be low, and therefore

most of the excess heat can be used to

create electricity.

Waste cold that originates from liquid

hydrogen bunker fuel can be utilized in

Operational efficiency has a major impact

on emissions from shipping. Already today,

weather routing, just-in-time arrival,

as well as advanced power and energy

management are used to some extent

and will be standard procedure by 2050.

The optimization will be done across

entire logistical chains. For example, port

arrivals will be optimized between all

vessels heading to port, and shore-based

logistical chains will be aligned with the

arrival of vessels. Also, cargo for feeder

vessels will be moved directly from one

vessel to another, reducing the duration

of the port stay for vessels.

Time between bunkering will be another

important change in vessel operations.

As most alternative fuels require more

storage space compared to current fuels,

bunkering will need to be more frequent.

The vessel will require a capacity of

21 days compared to several months for

current vessels in order to keep costs and

space demands reasonable.

Conclusions

The NYK Super Eco Vessel 2050 is a

source of inspiration and an idea for

further discussions. The vessel clearly

demonstrates the importance of energy

efficiency for the adoption of alternative

fuels. To achieve the 2050 target, a development

roadmap should be produced

and followed – an example set by NYK.

Global Goals Yearbook 2020 99


E.ON IS MAKING THE

INTERNET MORE

SUSTAINABLE

Digitization is integral to business and everyday life. The volume of data processed by data

centers is growing continually, which increases electricity consumption as well as carbon

emissions. But E.ON is showing how data centers can become more efficient and sustainable.

Its innovative solutions help customers make their data centers greener.

By Ilke Rangette, E.ON Business Solutions

Digitization – from cloud services and cat

content to streaming and cryptocurrencies

– accounts for a big part of (business)

life. But it has drawbacks: As data centers

process more and more data, they require

immense amounts of electricity. This leads

to higher costs as well as higher carbon

emissions, which contribute to global

warming. The Berlin-based Borderstep

Institute for Innovation and Sustainability

calculates that data centers in Germany

used almost 13 billion kilowatt-hours

of electricity in 2017, about as much as

a major city such as Berlin. No end is in

sight. The Shift Project, a think tank in

Paris, expects global energy consumption

for digitization and related technologies

to increase by 9 percent annually.

Unlike a home or office computer, servers

cannot simply be switched off. To ensure

uninterrupted data flow, data centers

operate 24/7. Nearly all the electricity

they consume is converted into heat. This

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Global Goals Yearbook 2020


heat must be cooled, which itself is an

energy-intensive process. But it is possible

to make cooling more sustainable as well.

Innovative systems from E.ON

E.ON offers practicable, customized solutions

that enable companies of all sizes

to make their data centers more efficient.

E.ON’s individually tailored microgrid

systems optimize energy consumption

and supply. Its energy-generation solutions

are embedded, redundant, and

scalable. This ensures that customers

have a reliable and flexible power supply

that can be adapted to their individual

needs. Examples include sustainable

storage and energy technologies such

as solar and combined heat and power

(CHP). The latter utilizes a data center’s

waste heat, which can reduce energy

costs by up to 20 percent.

Fuel cells are another promising option.

“E.ON is one of the few companies in the

world that has experience building and

operating utility-scale fuel cells, which

are an important element in our portfolio

of B2B solutions,” Anthony Ainsworth,

CEO of E.ON Business Solutions says.

“The industry is showing great interest

in fuel cells, which not only make the

power supply climate-friendlier but also

almost entirely eliminate the emission of

nitric oxide and particulate matter. We’re

convinced that this clean technology can

be used on a large scale.”

Alongside efficient heating, ventilation,

and air conditioning (HVAC), waste-heat

utilization plays a key role in making

data centers more sustainable. “E.ON

has developed a state-of-the-art district

heating technology called ectogrid tm ,

which is ideal for data-center infrastructure,”

explains Andrea Miserocchi,

Head of Segment Sales for Data Centers,

Telecoms & Media at E.ON Business

Solutions. Data centers can export their

waste heat to the local district heating

network, providing good neighbor energy

with no additional environmental

impact.

The Binero project: A green data

center in Sweden

A green data center is already in operation

in Vallentuna, a town located about 20

kilometers north of Stockholm, Sweden.

It was developed jointly by E.ON and

Binero Group AB, a Swedish supplier of

digital infrastructure services. The objective

was not just to make the internet

greener but to deliver benefits to Binero

and the community as well. Development

therefore focused on energy-efficient

technologies and cooling systems as

well as energy recovery. E.ON provided

the solutions.

The new data center has a redundant

design with two separate systems for

both power and cooling. Each of the

dual systems is individually capable

of supporting full IT operations. This

reduces the likelihood of outages and

simplifies maintenance. The data center

is connected to the regional electricity

network and has its own on-site switching

equipment to convert from high

to low voltage, which facilitates large

power draws. The electricity is 100 percent

sustainable and comes from wind

and other renewable sources. The data

center is also equipped with a modular

uninterruptible power supply (UPS).

In addition, Binero Group recycles its

data center’s waste heat, which is piped

into E.ON’s district heating network.

This enables Binero both to conserve

energy and support the local community.

When the facility is fully connected, its

waste heat will meet the heating needs of

about one-third of Vallentuna’s roughly

30,000 residents.

Sustainable solutions for cities and

communities

E.ON uses these technologies to design

highly efficient solutions that reduce

customers’ energy costs, increase the

availability of their energy supply, and

improve their sustainability performance.

Cities and communities benefit

as well. “We combine our infrastructure

with other E.ON services – such as district

heating, charging points for electric

vehicles, solar panels, energy storage

devices, and demand-side response –

to develop sustainable solutions for

city districts in large European cities,”

Miserocchi adds.

These activities also enable E.ON to

make an important contribution to

the achievement of the UN Sustainable

Development Goals (SDGs), primarily

Goal 7 (Affordable and clean energy), Goal

11 (Sustainable cities and communities),

and Goal 13 (Climate action). In addition,

E.ON’s solutions for data centers help

achieve Goal 9 (Industry, innovation, and

infrastructure) and Goal 12 (Responsible

consumption and production).

Global Goals Yearbook 2020 101


THE SDGs AS A WAY TO BUILD

RESILIENCE

The last few months introduced a completely new world to us when the pandemic started. The

novel coronavirus has wreaked havoc on society while putting the lives and livelihoods of millions

into disarray. The toll that the coronavirus has taken on people is very painful. The actions taken

to stop the vigorous spread of the pandemic has left a massive impact on the global economy and

the prospects for sustainable development.

By Md. Moniruzzaman Khan, Green Delta Insurance Company

Bangladesh was not spared from this

easily transmitted deadly virus. With

the very first Covid-19 case, detected

on March 8, 2020, Bangladesh started

its journey as a country with steadily

increasing cases. Since then, businesses

and operations have come to a complete

halt to reduce the number of deaths, and

the economy started to drop drastically,

jeopardizing economic forecasts and

targets for 2020 and 2021.

There is no doubt that the world economy

has entered a stage where it will take

years to recover – not only for developed

economies but especially developing and

least-developed countries. Countries such

as Bangladesh have to be very proactive

to rebuild themselves to overcome their

internal crises. With the sudden closures

of workplaces, people at all levels have

been challenged to adapt to the rapid

changes in industries.

While following the footsteps of the

global leaders and their examples, Green

Delta also started to work toward building

a better future and utilizing the crisis

for opportunities. These timely initiatives

were undertaken to make the best of the

sudden lockdowns and use the resources

that Green Delta had created to build

a resilient workforce. This ensured its

contribution to the economy as well as

minimize the impact of the pandemic

at the company level.

The following offers a glimpse of how

Green Delta initiatives provide a framework

for achieving resilience and will

also help achieve the SDGs in a postpandemic

era:

Building a Resilient Workforce:

Decent Work and Economic Growth

(Goal 8)

Most of the initiatives taken by Green

Delta during the lockdown were centered

on building a workforce that could serve

even if the situation got worse. Starting

with creating massive awareness regarding

safety measures and good practices

among the employees and community

as well as clients and valued customers,

Green Delta has enforced social distancing

at its workplaces and informed

personnel about taking care of their

surroundings during the crisis.

While ensuring a healthy work environment,

Green Delta has offered unique

approaches to ensure the health and

safety of employees.

Soon after workplaces were closed, employees

were trained to carry out their

duties for the company while working

from home. There were a number of

online training sessions, motivational

sessions, and awareness-creation sessions

to keep the spirits of the employees up

and to increase employee engagement

through various online platforms.

Thus, Green Delta believes that building

a resilient workforce can help to reduce

the negative impacts on profits. It is

also helping to strengthen the current

workforce to cope with the prolonged

aftermath following the crisis.

Ensuring Good Health and Well-

Being: Good Health and Well-Being

(Goal 3)

As the pandemic spread across the country,

creating a health hazard throughout

the entire population, the impact was

much stronger on mental health, as

everything started to shut down and

human life became immobile under

strict lockdowns.

Green Delta looked after the mental and

physical well-being of its employees as

well as the community at large so that

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Global Goals Yearbook 2020


they could cope with immobilization

and the sudden changes in lifestyle due

to the outbreak. Purchasing personal

protective equipment for project managers,

ensuring safety measures for client

handling, as well as conducting online

mental wellness and yoga sessions are

a few of the measures that were initiated

and regularly monitored during

the initial closure of operations.

Addressing the Community at Large:

Reduced Inequalities

(Goal 10) and Sustainable Cities and

Community (Goal 11)

Green Delta not only ensured good

practices and mental health among its

employees and communities, it also

extended initiatives to support the communities

that are in the most vulnerable

positions due to the pandemic and the

weakened economy. Green Delta has created

a CSR fund to support 1,500 farmers

through a project called “Amra Korbo Joy”

and distributed gifts in the form of cash.

The Green Delta family contributed one

day of their salaries to stand with the

farmers through this project.

workforce, but it will also facilitate digitalizing

the operations and service offerings.

This helped us to open our first fully

functional digital platform. This eases

the process of payments by partnering

with multi-financial service companies

and will help Green Delta adapt to future

crises in a post-pandemic world.

Heading toward the unknowns of postpandemic

uncertainties in the future,

Green Delta has aimed to build a resilient

workforce and partnerships to

cope with the negative impacts of this

pandemic while harnessing the power

of togetherness and using insurance as

a risk-mitigating tool to cushion against

the financial losses faced by companies

and households. Green Delta believes

that together we can make it through

these difficult times and learn from our

experiences to create a better world.

Green Delta believes that being in the

position to help the most vulnerable

provides an opportunity to make a contribution

while keeping the system running.

Partnerships for a Resilient Future:

Partnerships for the Goals (Goal 17)

As the people, institutes, and businesses

look for ways to recover from the losses

that the pandemic has already created,

Green Delta kept their goals straight and

decided within a short period of time

to become operational while following

the new norms of the workplace. This

crisis pushed the company toward rapid

adaptation and opened new doors to

partnerships to create a better future

while overcoming internal and external

turmoil. During this crisis, Green Delta

has partnered with digital service providers

to ease the process of delivering

efficient services. This not only helped

during the initial lockdown period of the

Together we can make

bigdifference

Farmers are the backbone of the nation.

We have initiated a fund to help

the farmers who are affected by

the COVID-19 pandemic.

Let's Come Forward

log on to

amrakorbojoy.net

Global Goals Yearbook 2020 103


OUR PARTNERSHIP WITH

THE ORGANIC COTTON

ACCELERATOR

Sustainability is a key aspect that is considered in all steps of our business model and product

life cycles. This affects all stages of our global supply chain – design, raw material supply,

manufacturing, quality control, logistics, and point of sale through physical stores and

e-commerce.

By Javier Losada, Inditex

We are aware of the necessary global

contribution to a sustainable society. For

this reason, we collaborate with different

stakeholders and maintain alliances

with diverse international organizations

to succeed in implementing our social

and environmental sustainability strategies.

This allows us to maximize our

positive impact throughout the value

chain. Furthermore, we believe that the

future of sustainability must increasingly

move toward an open approach whereby

collaboration is the pillar on which the

industry evolves – an approach that

Inditex has been developing for years.

In this sense, Inditex is a founding partner

of the Organic Cotton Accelerator

(OCA; www.organiccottonaccelerator.

org.), which stands as “the only multistakeholder

organization fully dedicated

to organic cotton. As a global platform,

we’re committed to bringing integrity,

supply security, and measurable social

and environmental impact to organic

cotton.”

Cotton plays a key role in Inditex’s sustainability

strategy; it is the second-most

used raw material in the world, the first

with a natural base (26 million tons in

2018/2019; Preferred Fibers & Materials

Market Report 2019, Textile Exchange),

and it is widely used in our products

at Inditex.

Organic cotton is highlighted as one of

the best sustainable alternatives to conventional

cotton; however, it represents

only 0.7 percent of all cotton production

in the world (Organic Cotton Market Report

2019, Textile Exchange). There is still

so much to be done to encourage and

enable organic cotton farming to help

meet the demand for this fiber.

OCA’s Farmer Engagement and Development

(FED) program allows for sourcing

and capacity-building at the farm level.

Brands, retailers, and implementing

partners (IP) work together to change

the organic cotton market and deliver

prosperity, integrity, and best practices

at the farm level.

The FED program is currently focused on

India, where 47 percent of the world’s

organic cotton is produced. The program

links brands to nominated farm groups,

creating a secure market and premium

payments for the farmers and facilitating

third-party-validated impact data

while making future investments in

farmer training. IPs will be responsible

for providing non-GMO (genetically

modified organism) seeds to nominated

farm groups, training them in organic

practices and offering general management

and support throughout the growing

season.

At Inditex, we participate in several FED

projects in collaboration with more than

5,900 small farmers. Their training in

organic practices helps preserve local

biodiversity, soil enrichment, the use

of natural pesticides and fertilizers, and

prevents the use of GMO seeds.

The FED program puts organic farmers

first, helping to make organic farming

a viable choice for cotton growers in

India – where most of the project farmers

are small landholders – with a high

dependence on cotton farming for their

family incomes.

Organic practices usually bring lower

levels of crop productivity as well as

increased pest risks, so incomes are lower

than with conventional farming. While

remaining aware of the challenges, the

FED program’s primary goal is improving

business for organic cotton farmers

as well as promoting organic cotton in

India. The FED program advocates the

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Global Goals Yearbook 2020


At Inditex, we focus on our clients and

look toward the excellence of our products,

which protect human rights and

create social value, while ensuring that

all of our items meet the strictest health,

safety, and environmental sustainability

standards. OCA’s FED program aligns

with our goals and enables us to take

steps forward in our sustainability journey.

We are committed to the protection of

biodiversity through the responsible

and sustainable management of natural

resources as we reflect on our Biodiversity

Strategy, which is based on the principles

of the United Nations Convention on

Biological Diversity.

payment of a premium over the market

price, which, in combination with lower

production costs, ensures that farmers

receive a competitive and higher net

annual income from organic cotton

when compared to conventional

cotton farming under similar conditions.

Production costs can be reduced because

farmers are trained to produce their

own natural fertilizers and pesticides.

This creates the possibility for farmers

to generate extra income if they can

sell their surplus production locally to

other farmers. In due course, this could

potentially reduce their credit dependency

and help them achieve financial

solvency as well as reduce their exposure

on the open market.

In summary, the FED program offers

several benefits for organic cotton smallholder

farmers and the environment.

In terms of livelihoods, organic cotton

improves farmers’ incomes, which are

based on a premium and involve cost

reductions; decreases credit dependency;

and encourages capacity-building on the

ground, thereby generating new local

opportunities for farmers as producers

of natural pesticides and fertilizers.

Organic farming also produces benefits

for the environment, enhancing the use

of local seed diversity, which enables

improved soil health and biodiversity.

When organic farming principles are

followed, the land has improved soil

health, retaining more nutrients, which

enables increased moisture retention.

Organic farming can also help fight climate

change due to using less energy

and reducing greenhouse gas emissions

associated with growth.

Farmers in the FED program recognize

that following organic farming principles

improves the quality of the soil they

cultivate and increases their incomes,

meaning less dependency on financial

institutions.

By 2025, all cotton to be used in our

products will come from sustainable

sources (i.e., it will be organic, BCI cotton,

or recycled).


Sustainability is a

never-ending task

in which everyone

here at Inditex

is involved and in

which we are

successfully

engaging all of our

suppliers; we aspire

to playing a

transformational

role in the industry.

Pablo Isla, Executive Chairman

of Inditex, Annual General Meeting

of Shareholders, July 2019

Global Goals Yearbook 2020 105


DIBICHAIN: TRANSPARENT

MATERIAL CYCLES WITH

BLOCKCHAIN

As a resource-saving economic model, the circular economy offers a sustainable alternative to

previous economic strategies. But it also presents companies with major challenges. Digital

technologies are very promising in this context. In the project DIBICHAIN, the software company

iPoint, in cooperation with industrial partners, is researching how blockchain technology can be

applied to the circular economy.

By Dr. Katie Boehme, iPoint-systems

In times of climate change and increasing

scarcity of resources, sustainable

management is becoming more and

more important. This also means that

companies, in particular, have to rethink

their business approaches. The circular

economy is considered to be particularly

resource-saving, and therefore futureoriented.

The central idea of a circular

economy is the establishment of closed

material cycles: Instead of disposing of

materials or components of products

at the end of their useful lives, they are

returned to biological or technical cycles.

Recycling, dismantling, and reusing are

the main focus; ideally, there is no waste.

This saves valuable resources.

However, the necessary processes of a

circular economy are highly complex and

very challenging for companies. In order

to implement them in a truly sustainable

and efficient manner, it is necessary

to factor in the complete life cycle of a

product or substance. All physical material

flows must be analyzed, evaluated,

and finally interpreted across the entire

product cycle. The collection of data

along the supply chain is also complex

and effortful. An example: A smartphone

contains hundreds of individual parts.

These, in turn, consist of more than

60 different natural resources and materials.

If you want to make the supply

chain completely transparent, you have

to trace every single one of them back

to their point of origin. This is not only

complicated and time-consuming, but

also involves high costs. Another point:

All data collected in the context of the

circular economy and along the supply

chain must be up-to-date, transparent,

and tamper-proof.

Blockchain as key technology

For the software company iPoint-systems,

digital technologies have great potential

in this context. Blockchain is particularly

promising, explains iPoint CEO Joerg

Walden: “We are convinced that blockchain

technology can be of great benefit

for these challenges and for the development

of circular economy systems.

Because with blockchain, information

can be made available to all users of the

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Global Goals Yearbook 2020


system in a controlled manner, virtually

in real time. The intellectual property of

each individual is still protected, and the

user retains data sovereignty. Only by

consensus can the rules regarding the

visibility of the data be changed. In this

way, virtually everything and everyone

is connected with each other, which

enables completely different innovation

cycles and business models.”

Blockchain not only simplifies the information

flow within the company

and with stakeholders. The data is also

tamper-proof. Once verified, it cannot

be changed or manipulated without the

system noticing and the participants

agreeing. The transaction can be cryptographically

secured. In the blockchain,

data is stored decentrally. This eliminates

dependence on a single server, and several

systems monitor the data flow.

Project DIBICHAIN

So far, however, not enough research

has been conducted on how blockchain

technology can be applied to the circular

economy. In order to change this,

iPoint is participating in the DIBICHAIN

research project with the industrial partners

Altran Deutschland, Blockchain

Research Lab, CHAINSTEP, and Airbus.

The main objective is to investigate the

potential of blockchain for the digital

representation of product cycles –

especially with regard to decentralization,

reliability, and counterfeit protection,

but also carbon footprint, sustainable

production, and recycling. As part of the

German Federal Government’s blockchain

strategy, which was adopted in

September 2019, DIBICHAIN is funded

within the framework of the measure

“Resource-efficient recycling management

– innovative product cycles” (ReziProK)

of the German Federal Ministry of Education

and Research (BMBF). The research

project started in July 2019 and has a

duration of 36 months.

The first step of the DIBICHAIN project

is the development of a software

demonstrator based on blockchain technology

using the example of a bionic

component produced by Airbus. The

project team will use it to evaluate the

suitability of blockchain for the circular

economy. “The evaluation of the developed

demonstrator is intended on the

one hand to develop a knowledge base

for the application of a blockchain for

the circular economy, and on the other

hand to reveal starting points for further

projects in order to tap the full potential

of blockchain and other distributed

ledger technologies in the context of

the circular economy,” says Sebastian

Galindo, Project Manager at iPoint.

Many years of expertise from iPoint

iPoint is supporting the project with important

expertise: “With our constantly

growing ecosystem of 55,000 companies,

iPoint is contributing cutting-edge

technology know-how to the research

project as well as many years of experience

with players, due diligence processes,

and problem solutions in the

downstream area,” says Walden. For the

software company, DIBICHAIN is not the

first research project centered around

blockchain technology. In early 2018,

iPoint launched “SustainBlock,”

a blockchain project in

the area of conflict

materials that makes the supply

chain digitally traceable, and thus

more transparent. The SustainHub

community platform also provides

customers with a software solution for

efficient and simple communication

and data acquisition in the supply chain.

The system can also be used to manage

other compliance requirements in the

environmental, social, and materials

areas, such as the REACH Regulation

(Registration, Evaluation, Authorisation

and Restriction of Chemicals) and the

Restriction of Hazardous Substances

(RoHS) Directive.

Not only customers and project partners

benefit from iPoint’s many years of

experience. With its software solutions

and research projects, iPoint also makes

an important contribution to the UN’s

Sustainable Development Goals. iPoint’s

business model and business portfolio

pay particular attention to both Goal 8

(Decent work and economic growth) and

Goal 12 (Responsible consumption and

production), whereby the DIBICHAIN

project additionally addresses SDGs 13

(Climate action) and 16 (Peace, justice,

and strong institutions).

Global Goals Yearbook 2020 107


GOOD PRACTICE SECTION 2: LIST OF ATTENDEES (FROM K - Z)

Companies are listed in alphabetic order

Arab African International Bank

Audi

BASF

Bayer

Beaulieu International Group

Bosch Group

Business Keeper

CEMEX

Clariant

EDF Group

Elomatic

E.ON

Green Delta Insurance Company

Inditex

iPoint-systems

Solely responsible for the editorial contributions under the

heading “Good Practice” are the companies themselves.

Named articles do not reflect the opinions of the publisher.

Knorr-Bremse

K+S

KYOCERA

macondo foundation

MAN

Merck

MTU Aero Engines

Netafim

Nomura Group

pervormance international

Philip Morris International

Sakhalin Energy

SAP

Symrise

Vonovia

Wilo Group

110

112

116

Knorr-Bremse

K+S

KYOCERA

108

Global Goals Yearbook 2020


GOOD PRACTICE

118

macondo foundation

122

MAN

124

Merck

126

MTU Aero Engines

128

Netafim

130

Nomura Group

132

pervormance international

134

Philip Morris International

138

Sakhalin Energy

140

SAP

142

Symrise

144

Vonovia

146

Wilo Group

Global Goals Yearbook 2020 109


DRIVING RESPONSIBILITY

AND SHAPING TOMORROW’S

TRANSPORTATION

Knorr-Bremse is committed to contributing to a more sustainable society. As the global market

leader for braking and other systems for rail and commercial vehicles, we drive forward innovations

for sustainable system solutions in the mobility sector. In doing so, we play a key role in

enhancing safety, efficiency, and reliability on rail tracks and roads around the world – each and

every day. In order to make a positive contribution to the economic, social, and environmental

challenges of our time, we are putting a special focus on 5 of the 17 UN Sustainable Development

Goals that can be influenced by our business. One example is our recently renewed climate

strategy, which contributes to Goal 13 (Climate action).

By Stefan Bräuherr, Knorr-Bremse

For more than 115 years, Knorr-Bremse

has been the industry visionary, driving

innovation in mobility and transportation

technologies with an edge in connected

system solutions. As global market leader,

we see ourselves as a role model and try to

live up to that expectation – in the way

that we do business, as well as with our

products. This is where the UN Sustainable

Development Goals come into play.

In 2018, a two-phase process comprising

“top-down” voting by the top 160 managers

worldwide and a “bottom-up” ballot of

the global workforce culminated in the

selection of five SDGs. Knorr-Bremse sees

Goals 5, 8, 9, 12, and 13 as the areas where

we can make the biggest difference. For

instance, our approach to tackling Goal

13 (Climate action) is holistic: By implementing

our renewed climate strategy

(Scopes 1+2), we are trying to reduce the

environmental footprint of the transportation

industry, and we are continuing and

supporting our own efforts. In the past,

we contributed to emissions reductions

through our energy-efficiency program

and by shifting progressively to generating

KNORR-BREMSE CLIMATE STRATEGY 2030


CLIMAT E NEUTR ALIT Y

F R O M 2 0 2 1

GOAL: TO HALVE OUR

CO 2

EMISSIONS BY 2030

Average reduction of Scopes 1

and 2 emissions by 4.2 percent per

annum in relation to the reference year 2018.

Three levers to achieve a reduction:

Energy efficiency

Improvement of

energy efficiency

and switch to

low-carbon fuels

50.4 % CO 2

B Y 2030

– 4.2 %

PER Y EAR 100

%

Renewables own

generation

Gradual increase of

share of own-generated

renewable energy

GOAL: CLIMATE

NEUTRALITY

By further increasing the

proportion of renewable

energy we use above the

4.2 percent target

and, as necessary,

offsetting any

remaining

emissions

Renewables purchase

Expansion of renewable

energy purchasing,

making use of power

purchase agreements,

green energy products

and certificates

The new Climate Strategy 2030, which supersedes the

climate protection objectives set in 2015, represents a true milestone for Knorr-Bremse.

110

Global Goals Yearbook 2020


and procuring renewable energies at all of

our locations. In Germany and Hungary,

we are already at 100 percent. The SDGs

provide valuable guidance for the strategic

roadmap that will take us there.

Commitment to carbon neutrality

from 2021 onward

Reducing the environmental impact of

our production processes by using energy

more efficiently is a key aspect of

our approach. The new Climate Strategy

2030, which supersedes the climate protection

objectives set in 2015, represents

a true milestone for Knorr-Bremse. In

our climate strategy formulated in 2015,

Knorr-Bremse committed itself to achieving

climate-neutral, organic growth by

2020 at its 43 most energy-intensive sites.

With our new climate strategy, we have

set the ambitious target of cutting our

locations’ CO 2

emissions by 50 percent

by 2030 at the latest. In our view, we can

achieve the most by focusing strongly on

CO 2

reduction – to contribute to more

climate-friendly mobility.

To achieve the goal of halving our CO 2

emissions by 2030, we are working on

the energy efficiency of our production,

using more self-generated renewable

energy, and expanding the purchasing

of renewable energy as a whole. This

goal is based on the Scopes 1 and 2

requirements of the Science Based Targets

initiative to follow a 1.5°C reduction

pathway. We also want to go one step

further: Knorr-Bremse has pledged to

make all of its sites carbon neutral from

2021 onward by maximizing the share

of renewable energy and offsetting the

remaining emissions. In fact, with this

climate strategy, Knorr-Bremse wants to

contribute to achieving the goals of the

Paris Agreement.

Contributing to the SDGs –

an imperative for every global player

Stefan Bräuherr,

Head of Corporate

Responsibility at

Knorr-Bremse,

signed the Climate

Pact² in October

2019.

Knorr-Bremse can and will play an active

part in making our environment more

sustainable. Our products and systems

are destined to become the mobility solutions

of the future. Their competitive

edge today is in part due to our customers’

demands for more sophisticated solutions,

focused on safety and customer benefit

as well as on sustainability. Employees’

and society’s expectations regarding sustainable

industries are steadily increasing

– and we always aim to surpass

them. In fact, Knorr-Bremse already offers

solutions to the challenges ahead of

us, which puts the company in a strong

competitive position and makes it attractive

to investors and employees. We

are making a large contribution to more

environmentally friendly products and

have structures and processes in place

that are designed to optimize the way

we use energy and materials, thus reducing

potential negative effects for the

environment and society. The action we

are taking in this area is guided by Goal 9

for sustainable industry, innovation, and

infrastructure, and Goal 12 for sustainable

consumption. We want to further

develop sustainability and make it a decisive

factor in our technological leadership

and market position. Our products and

systems for rail transportation form an

intrinsic part of climate-friendly mobility

solutions due to weight-reduction and

energy-efficiency measures. This applies

equally to commercial vehicle solutions,

where we were early to realign all our

product development activities toward

efficiency and low-energy consumption.

Always a step ahead – hybrid

transformation for rail vehicles

Rail transportation plays a key role in

the mobility of the future. However, in

some places it is hard to electrify stretches

of track for rail vehicles. Kiepe Electric,

a subsidiary of Knorr-Bremse, has been

working on affordable and immediately

available alternative drive systems for

diesel multiple units. Kiepe has developed

a modular concept for mild and full

hybrids with a range of modules with

which to supplement existing diesel propulsion

systems – including batteries.

Full-hybrid trains with diesel engines and

transformers for operating in overhead

mode can be upgraded using traction

batteries with a capacity of 300 kWh or

more. And diesel trains with hybrid capability

can be upgraded to mild-hybrid

units. In this respect, Kiepe provides integral

modular systems expertise that can

achieve energy savings of up to 25 percent.

Conscious use of resources –

remanufacturing helps to conserve

raw materials

The industrial reconditioning of old and

used products is an important part of

Knorr-Bremse’s business. What is known

as “overhaul” in the rail division is called

“remanufacturing” in the truck division.

At Knorr-Bremse’s truck site in Liberec,

Czech Republic, the benefits of this procedure

can be seen in huge numbers on

the board at the factory gate: 1.9 million

kg of CO 2

, 7.9 million kWh of energy, and

more than half a million kilos of material

were saved through remanufacturing last

year. The raw materials used in the electronic

components of commercial vehicle

brakes – rare earths, gold, and silver –

get a new lease of life. Remanufacturing

is a huge factor in making our company

more sustainable. Simultaneously, it provides

our development engineers with

valuable information about real-world

wear and tear and the damage sustained

by various parts. It is therefore just one

more example of how Knorr-Bremse aims

to make tomorrow’s mobility safe and

sustainable at the same time.

Global Goals Yearbook 2020 111


THE K+S BRINE CHALLENGE:

APPROACH TO CREATE

SUSTAINABLE SOLUTIONS

Minimizing the impact on nature of activities associated with the extraction and processing of

raw materials is a group-wide goal at K+S. We act by reducing the piling of solid waste from

potash mining and the related formation of brine solution. Our long history of developing

solutions to deal with the formation of brine solution from potash tailings piles has made us an

expert in this field. By combining our expertise with an innovative crowdsourcing initiative, K+S

collaborated with the public and searched for new approaches. We called this initiative the K+S

Brine Challenge.

By Dr. Arne Schmeisky and Janina Beduhn, K+S

By using modern technology and crowd

intelligence, new approaches and better

solutions for overcoming different problems

can be found. In the case of the “K+S

Brine Challenge,” it was all about finding

ways to address inevitable tailings from

mining potash. In line with Sustainable

Development Goal 17 (“Strengthen the

means of implementation and revitalize

the global partnership for sustainable

development”), people from all over the

world took part in a contest to find solutions

to protect bodies of water. The approach

led to a more innovative way of

working together and used the “wisdom of

many” to improve K+S’s tailings covering

systems. K+S offered global partnerships

to improve the impact on bodies of water

and ensure a transfer of knowledge

between multiple stakeholders.

Reducing the impact on water caused

by potash mining

Mining is known to have a high impact

on water by either consuming a lot of

water or by using bodies of water to

discharge wastewater. Potash mining is

no exception concerning water consumption,

since all potash mining companies

have to cope with solid and liquid tailings

that accumulate during mining and

production processes. The best available

technique to dispose of large amounts

of solid tailings in the potash mining

sector is to dump it onto tailings piles,

which consist mainly of sodium chloride.

Since these tailings are out in the open,

rainfall, combined with the salt tailings,

results in a brine solution that needs

to be disposed of. This brine solution,

together with other liquid wastes from

production processes, is usually disposed

of in one of two different ways, through

deep-well injections or discharged into

surface waters such as rivers and oceans.

Depending on the size of the river and

the amount of wastewater that needs to

be disposed of, this technique might affect

the total concentration of salt within

the river. To keep the effect on aquatic

life as well as the ecosystem of the river

to a minimum, K+S is developing new

techniques to minimize the buildup

of wastewater during the production

processes as well as at the sites of the

tailings piles.

To make a measurable contribution toward

achieving the Sustainable Development

Goals (SDGs), K+S wants to keep the

amount of its solid residue from potash

mining to a minimum and further limit

the formation of salt water by covering

the tailings. We promote the efficient

use of natural resources and the avoidance

of waste (Targets 12.2 and 12.5), as

well as the sustainable use of land and

inland freshwater ecosystems (Target

15.1). We have also set ourselves the

following targets:

• From 2030 onward, it will be possible

for up to 3 million metric tons of residues

to be used for purposes other than

112

Global Goals Yearbook 2020


ainfall

collected brine

solution

collected brine

solution

tailings pile

tailings pile

collecting ditch

collecting ditch

being deposited onto tailings piles. In

this regard, there are plans for finding

alternative uses for tailings pile material

and preventing residues.

• By 2030, an additional 155 hectares of

tailings piles will be covered to further

reduce or prevent tailings pile runoff.

Covering of tailings piles as a viable

solution

The central aspect of reducing the formation

of brine is to use different methods

to cover the piles and prevent rainfall

from coming into contact with the salt

tailings. Over the past few decades, K+S

has developed several techniques to

cover the tailings piles and prevent most

of the rainfall from dissolving the salt

tailings. The idea is that water is stored

within a covering layer and evaporates

over time. Different methods for covering

with and without vegetation have

been tested and implemented, depending

on the properties of the respective

site, such as size, height, geological conditions,

location of the piles, and so on.

Using covering techniques to minimize

the environmental impact is state of

the art in the management of waste

dumps and landfills; however, it is not

common in the field of potash mining.

These techniques cannot simply

be transferred to tailings piles due to

the size and the properties of these salt

deposits. Years of experience as well

as many research and development

projects have made K+S the leading

expert in the field of covering potash

tailings piles. The expertise has been

gathered through collaboration with

many experts working in the fields

of statics, construction, geology, and

biology, among others.

To get new inspiration, to raise awareness,

and to include a broader spectrum

of experts, K+S chose to pursue an innovative

crowdsourcing approach. >>

Global Goals Yearbook 2020 113


REDUCING WATER IMPACTS ALONG THE K+S VALUE CHAIN

In the context of its strategic sustainability program, the K+S Group also takes the SDGs into account. In principle, the

SDGs are on an equal footing. However, because of our focus as a producer of raw mineral materials, we exert a

stronger influence on some SDGs than on others. Impacts occur within the K+S value chain and on a product level.

Reducing water impacts from extraction and production: The extraction and production of our potash and raw salt

materials are associated with high levels of water usage. Therefore, K+S has set itself ambitious environmental goals

and closely monitors its progress to achieving these goals. We promote the efficient use of natural resources and the

avoidance of waste (Targets 12.2 and 12.5) as well as the sustainable use of land and inland freshwater ecosystems

(Target 15.1).

Fostering employee engagement on water management: In addition to the strategic activities of the company, we

value the commitment of all employees and encourage them to act responsibly. At our European sites, we strongly

support the “TuDu’s” campaign and its English equivalent, the “Good Life Goals,” which is named with regard to the

SDGs. We call on all employees to submit ideas that promote the sustainability of K+S via our online ideas management.

Naturally, this includes ideas on sustainable water management.

Collaborating for water protection: In line with

Goal 17, we enter into global partnerships

at the project level to improve our

impact on water protection.

A prominent example is our

recent crowdsourcing

challenge to reduce saline

wastewater from

tailings: the “K+S Brine

Challenge.”

Saving water

through the use

of products:

With our range

of mineral

fertilizers and

the development

of

systemic

solutions, K+S

makes a

significant

contribution to

fertile soils and

the nutrition of a

growing world

population: Goal 2 (No

hunger). Additionally,

our fertigation products

enable a precise application

of the water-soluble fertilizers

through an irrigation system.

Business Ethics

Health &

Safety

Compliance &

Anti-Corruption

Sustainable

Supply Chains

Energy &

Climate

People

Diversity &

Inclusion

Waste

Human

Rights

Water

Environment

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Global Goals Yearbook 2020


Crowdsourcing discovers the

“wisdom of many”

Crowdsourcing is an innovative way to

create solutions to problems by asking

participants from all over the world for

their input in an idea competition. This

is done with an internet platform where

people can register as problem-solvers.

The problems are described by the respective

companies and the requirements and

limitations for valid solutions are stated

in a so-called challenge. The problemsolver

can hand in their ideas, which are

then evaluated by the platform provider

and the company looking for a solution.

The best ideas are awarded a prize.

The advantage of using an established

crowdsourcing platform is that the community

of registered problem-solvers of

the platform is addressed, and anyone in

the world with internet access can join

the challenge as well. Registered users log

in as experts for a certain field, allowing

the crowdsourcing provider to forward

their challenges to the relevant users.

However, addressing non-experts via

social media is also an option and opens

the challenge up to an even broader

audience.

The K+S Brine Challenge as an enabler

for sustainable innovation

Usually, crowdsourcing covers a broad

variety of technical problems. The idea

is to find solutions for defined problems.

Today, crowdsourcing is used more and

more to address environmental and sustainability

issues in addition to technical

questions. To approach the issue of

minimizing brine formation from the

BRINE CHALLENGE IN A NUTSHELL

9

months

18

K+S departments

2

external jurors

tailings piles, K+S combined a technical

with an environmental question in the

Brine Challenge crowdsourcing project.

The challenge went as follows:

1. Raising the question: The K+S Brine

Challenge crowdsourcing project focused

on “How can K+S reduce the

brine formation at the tailings piles?”

2. Defining the challenge: The challenge

had to be defined with a short and

clear description of the background

that covered technical facts such as

the height, composition, and location

of the tailings piles. Apart from

the technical facts, the problem itself

– rainfall leading to the solution of

salt, creating brine that needs to be

disposed of – had to be an essential

part of the challenge description.

3. Informing on the state of science:

Since several technical solutions for

covering tailings piles already existed

and the aim of the Brine Challenge

was to create new solutions, these

current methods were added to the

background information of the challenge.

Solutions for the problem that

had been tested before, but had failed,

were described in the background

information to prevent solution providers

from turning in similar ideas.

The contents for the challenge were

developed together with different

teams of K+S and the crowdsourcing

provider.

4. Setting up an online platform: The

challenge was set up on a microsite

on the crowdsourcing platform and

made accessible to the public over a

44

ideas

12

countries

2

winners

period of three months. The participants

had access to the background

information and were able to create

a draft for their solution. A midterm

Q&A session with K+S experts gave the

participants the chance to ask specific

questions for additional background

information.

5. Evaluating the ideas: After the challenge

was closed, the submitted solutions

first went through a compliance

check by the crowdsourcing provider.

The ideas were then evaluated by K+S

experts and finally by a jury of K+S

experts and two university professors.

44 ideas and two promising

solutions

A total of 44 ideas were submitted for

the Brine Challenge, offering a wide variety

of solutions. Covering tailings piles

is a topic that requires a lot of insight

into topics such as geology, construction,

materials, processes, and biology,

so finding a solution is quite difficult.

Because of the complexity, none of the

submitted ideas proposed a totally new

and viable covering system, mainly due

to technical limitations.

However, two ideas were identified as

having the potential to improve the

already existing covering systems. So

the Brine Challenge was able to verify

that the current systems in place are

state of the art. The two winning ideas

will continue to be tested to see if the

incorporation into any of the existing

covering systems is technically and economically

feasible.

This project showed that by combining

company knowledge with crowd intelligence,

new ideas that might improve

existing processes are generated. By using

a crowdsourcing approach for environmental

issues, companies are able to

raise awareness of different challenges,

thereby creating support for existing

solutions to problems and, in the best

case, being able to create new technologies

for a better future.

Global Goals Yearbook 2020 115


KYOCERA’S APPROACH TO

SUSTAINABILITY AND

CLIMATE PROTECTION

Sustainability and climate protection are the central challenges of our time. KYOCERA is

working on making document management processes more digital, ecological, and economical.

By Annette Neth, KYOCERA

Since the company was founded in 1959,

the sustainable use of resources has

been firmly anchored in the company

and product philosophy. The foundation

stone for this was laid by Group founder

Dr. Kazuo Inamori, who sees respectful

treatment of nature and love for people

as the basis for entrepreneurial action:

Respect the divine and love people.

According to Dr. Inamori, a company

must not only act in a social but also in

an environmentally friendly manner.

Technology and responsibility for people

and the environment are inseparable.

Accordingly, the entire KYOCERA Group

is committed to the goals of sustainable

corporate development and climate

protection.

KYOCERA has been named a “Supplier

Engagement Leader” by CDP, an international

non-profit organization. The

reason for the award is the company’s

initiative to reduce greenhouse gas emissions

throughout its supply chain. The

Kyocera Group has set itself the goal of

reducing greenhouse gas emissions – including

internal emissions and emissions

116

Global Goals Yearbook 2020


from its supply chain – by 30 percent

by March 31, 2030, compared to levels

from fiscal year 2013.

In Germany and Austria, the company’s

climate protection strategy also includes

the climate-neutralization of products

through “Product Carbon Footprints.”

Kyocera Germany has been the only

manufacturer to offer all customers only

climate-neutral original toner since 2013.

The hardware has also long since been

made CO 2

-neutral by compensating for

all CO 2

emissions that arise from the

extraction of raw materials, production,

transport, and recycling. In total,

Kyocera has saved well over 260,000

metric tons of CO 2

.

Kyocera offsets this amount by investing

in three international climate protection

projects. All projects have been awarded

the Gold Standard. This guarantees

that not only is a contribution made to

climate protection, but that the living

conditions of people in the regions are

also improved in the long term.

In addition to the cooker project in Kenya,

the Kyocera Print Green program also

promotes the installation of biogas plants

in Nepal, which allow for cooking with

biogas instead of firewood, and the construction

and sale of climate-friendly

solar cookers in Madagascar to counteract

deforestation on the ground.

With ECOSYS technology, Kyocera printers

use toner as their only consumable

– unlike the competition. This is

achieved by using particularly durable

components that remain in the system

throughout the product’s life. The result:

up to 75 percent less waste compared to

other manufacturers.

Our participation in the Alliance for Development and Climate

makes us proud and is an important incentive to continue our

commitment to sustainability.

With our philosophy, we are working to promote our social

commitment, build relationships of mutual trust, and strive for

sustainable growth. At the same time, KYOCERA strives to contribute

to the healthy development of society.

We have been successful with our PRINT GREEN program since 2013.

We are pleased that we have been supporting great climate protection

projects since then and, of course, that our climate-neutral products

are so well received by customers and partners.

Daniela Matysiak, Environmental and CSR Manager

“at KYOCERA Document Solutions Germany

As part of its commitment to climate

protection, Kyocera has made the Corporate

Carbon Footprint 2020 climate

neutral for the German sales company.

To this end, the CO 2

footprint of Kyocera

Document Solutions Deutschland GmbH

was first calculated using the official

guidelines of the “Greenhouse Gas Protocol,”

according to which both direct

and indirect emissions are considered.

In addition to the strategic expansion of

its own commitment to climate protection,

Kyocera is working with other companies,

NGOs, and ministries on various

initiatives to anchor the topic of climate

protection more firmly in German business

and to promote it, for example

in “Business does climate protection”

and in the Alliance for Development

and Climate, which was initiated by the

German Federal Ministry for Economic

Cooperation and Development and focuses

on avoidance, reduction, and compensation.

In the “Business does climate

protection” dialogue forum, Kyocera is

working with other German companies

to develop solutions and guidelines as

well as offer support to further promote

climate awareness and sustainability in

German companies.

Kyocera is also involved in environmental

and species protection. To this end,

the document management provider

is cooperating with the Beefuture bee

initiative and is giving three colonies at

its Meerbusch site a new home. This is

because about half of the bee species that

live in Germany are threatened. More

than 80 percent of the native flowering

plants depend on the pollination of bees.

The consequences for the ecosystem

would be devastating. Sustainability

has always played a major role in the

Kyocera Group.

For more than 30 years, the company has

been a partner of Deutsche Umwelthilfe

and has received several awards for its

commitment. The settlement of the bee

colonies makes a valuable contribution

to the protection of species. Kyocera

is thus sending out a clear signal and

making its contribution to the preservation

of biological diversity. Over the

year, Kyocera bees produce around 45

kilograms of honey, which is given to

the employees as a gift.

Global Goals Yearbook 2020 117


HOW RESILIENT ARE YOUR

SUPPLY CHAINS?

The ESG Stress Test helps regions to understand the full spectrum of environmental-, social-,

and governance-related risks and to manage and disclose them effectively.

By Dr. Elmer Lenzen, macondo foundation

What?

The ESG Stress Test is a public–private

partnership (PPP) initiative to promote

both technological innovation and

sustainable development. We support

regional governments and their local

industries in testing their highly complex

supply chains against ESG criteria,

thereby making them more resilient. In

addition to digital data collection and

evaluation (including AI technologies),

capacity-building and trainings improve

the quality of cooperation between social

and business partners. The direct usability

of the results is an essential goal:

The ESG Stress Test is a practical answer

to the needs of the Paris Climate Accord

and the UN Sustainable Development

Goals (SDGs).

The technological architecture is

based on the award-winning software

CSRmanager – a comprehensive webbased

solution for sustainability, climate,

and risk management. Automated data

collection, consolidation, reporting, and

management capabilities make disclosure

and controlling efficient, accurate,

and intuitive.

Why?

Extreme weather events, intolerable

working conditions, risks of human

rights violations, the use of hazardous

substances, etc. – sustainability is no

longer a niche issue but an important

reality in everyday business (see the WEF

Global Risks Report 2019). It names central

risks, but also opportunities in the

value- creation process. No wonder that

legislators, investors, consumers, and

procurers of larger companies are paying

more attention to compliance with

environmental, human, and labor rights

118

Global Goals Yearbook 2020


as well as questions of good corporate

governance. Experts use the expression

of so-called ESG (environmental, social

and governance) criteria.

In a globalized world with highly complex

levels of production, compliance

with these ESG criteria is becoming increasingly

challenging and, at the same

time, more critical for each company:

The more that production steps and processes

are relocated to the supply chains,

the more that risks are outsourced. Digitalization

and political uncertainties

aggravate this development.

for such reports is increasing both in

terms of quality and scope: In a recent

statement, European Commission Executive

Vice-President Valdis Dombrovskis

provided details on the implementation

of the Green Deal Investment Plan –

including strengthening sustainability

reporting by companies. He set out

that the EU’s Non-Financial Reporting

Directive is to be reviewed, and the EU

will establish “clear reporting standards”

to “scale up sustainable finance at the

level that the world needs”. >>

Entities – including businesses, governments,

and nonprofits – therefore face a

rapidly evolving landscape of ESG-related

risks that can impact their profitability,

success, and even survival. Given the

unique impacts and dependencies of

ESG-related risks, sustainability expert

macondo publishing has launched a

public–private partnership initiative

to develop digital platforms that help

organizations better under- stand the full

spectrum of these risks and to manage

and disclose them effectively.

Drivers

To measure corporate sustainability and

make it transparent, companies prepare

appropriate reports. The legal obligation

Global Goals Yearbook 2020 119


Reporting at regional level is becoming

more difficult: The OECD is helping

to guide local and regional leaders in

developing policy approaches and action

plans to localise the SDGs. What

is lacking is a concrete instrument to

address these drivers on the part of

policymakers (e.g. the EU) and regional

actors (e.g. the OECD). Our project approach

comes into play at exactly this

point.

How?

1. You are a city, a regional government,

a business association or a large

company with international supply

chains.

2. You want to test crucial parts of your

business/your economic area for their

resilience in the light of different

crisis scenarios.

3. You work together with us on the

implementation of the ESG stress

test. Results and findings must made

available to the general public and

academic purposes.

1.

Risk-management

2.

framework 1

Data mining and

referent standards 2

Governance and

culture for

ESG-related risks

Strategy and

objective-setting for

ESG-related risks

Information, communication,

and

reporting for ESGrelated

risks

Performance for

ESG-related risks

Review and

revision for ESGrelated

risks

Connecting the business context and strategy to risk identification

means understanding of internal and external challenges

like climate change and other megatrends, SWOT analysis

and impact and dependency mapping among others.

Risk identification by working with KPIs and international

reporting standards – this is the starting point for threats or

opportunities to achieving strategy and business objectives.

1

COSO/WBCSD: Enterprise Risk Management (ERM) framework,

Oct. 2018

2

Global Reporting Initiative Standards S2016, ISO 14001:2015-11, ISO

50001:2011, EMAS III, ISO/DIS 45001.2:2017, UNGC Organisational Capacity

Assessment Instrument (OCAI), HR Reporting and Assurance Framework

Initiative (RAFI), SA8000:2014, EN ISO 9001:2015, ISO 26000 CR, EFFAS/

DVFA ESG-KPI Scope1, Greenhouse Gas Protocol: SCOPE 1 & 2

120

Global Goals Yearbook 2020


4. You are responsible for

a) ESG training with local partners,

b) translation into local languages where

necessary,

c) obtaining a sufficient number

of firms to generate meaningful data.

5. The participating companies

a) get full access to the benchmark

data generated in the project

b) receive a detailed written analysis

of their test results

c) pay a small one-time fee

INQUIRY

macondo foundation

Dr. Elmer Lenzen, Chair

mail@macondo-foundation.org

Dahlweg 87

D - 48153 Münster, Germany

3.

Projection of

4.

scenarios 3 Scenarios 4

Community

involvement

Discrimination

Human Rights

Employee Rights

Human health and safety

3

Climate Action

2

1

0

Wages, benefits,

pensions

Affordable and

clean Energy

Sustainable Cities

and

Communities

Peace, Justice, and

strong Institutions

Best case scenario

Average case scenario

Worst case scenario

Measures

Certificate

Capacity

building

+ Infrastructure

Responsible

finance

The World Economic Forums Global Risks Report 2020 is

listing various short-term and long-term risks. They are

grouped into 5 categories: economical, environmental,

geopolitical, societal and technological risks. As part of a

comprehensive 2019-2020 perception survey, key risks were

listed for each of these categories according to probability

and impact. The ESG Stress Test is using these risks and

categories by using scenario techniques including checks of

plausibility, consistency and decision-making utility.

Visualization based on the planetary boundaries concept,

which involves Earth system processes as well as environmental,

social, and governance boundaries.

3

US National Intelligence Council: Global Trends 2030: Alternative

Worlds, NIC 2012-001; 2018 EU-Wide Stress Test – Methodological

Note by European Banking Authority (EBA)

4

Visualization based on the “Donut-Modell” by Kate Raworth

Global Goals Yearbook 2020 121


THE NEW MAN TRUCK

GENERATION: WHEN GOOD

BECOMES GREAT

How can truck drivers work comfortably, digitalization processes be simplified, and emissions

lowered? Digitalization and sustainability are the key trends transforming the transportation

industry. With its new MAN truck generation, MAN has designed the best possible vehicle for

its customers, enabling them to overcome market upheavals and live up to their social

responsibilities when it comes to sustainable development and protecting the environment.

By Peter Attin, MAN

Around the world, the majority of all

goods are transported by trucks. According

to a study by Roland Berger, freight

transportation makes up 70 percent of all

transportation in Europe and the United

States, and 75 percent of transportation

in China. Despite the significance

of the transportation industry, many

companies within it are working inefficiently,

for example as a result of unnecessary,

empty runs. The problem?

Free loading space and cargo do not

always coincide. As a result, companies

are unable to exploit their full potential

while continuing to incur high costs for

operating their vehicle fleets. One of the

solutions to this problem is to use digital

applications: “Digital services do make

our customers’ businesses considerably

more efficient and help them to realize

higher margins. The flipside, however,

is that they are more complex, which

causes problems for a lot of our customers,”

explains Joachim Drees, Chief

Executive Officer of MAN Truck & Bus.

“Sustainability is another issue of crucial

importance. Lawmakers are calling for

122

Global Goals Yearbook 2020


a significant reduction in CO 2

emissions,

with a target of 15 percent by 2025 and

30 percent by 2030.”

Simplifying business

MAN has set itself the goal of shaping this

transformation process in a responsible

way. After all, for MAN, being fit for the

future means understanding global challenges

and identifying the opportunities

and risks with regard to sustainable development.

“We make a conscious effort

to address what is expected of us by our

customers, policymakers, and society at

large and offer specific answers. We aim

to ensure that human beings are at the

center of everything we do. This aim

is strongly guided by the Sustainable

Development Goals and the UN Global

Compact, which we joined back in 2010,”

Drees explains.

By launching the new MAN truck generation,

the company has introduced

vehicles to the market that enable customers

to implement the sustainability

and digitalization requirements of their

industry without difficulties. For example,

the new vehicle uses 8 percent less

fuel in long-haul transportation than

its predecessor with the Euro 6c engine,

which lowers emissions and thus also

reduces operating costs. It also features

improved load capacity (up to 230 kg

extra) and optimized uptime. “With

MAN ServiceCare, we are offering proactive

maintenance management that

makes it possible to further increase

vehicle availability considerably, thanks

to forward planning and an intelligent

system for bundling servicing appointments,”

says Drees.

To ensure that the technical standards of

the new truck do not become obsolete in

a few years’ time, the company is using

a brand-new electronics architecture, enabling

additional sensors and functions

to be retrofitted. This makes it possible

to integrate alternative drives, new assistance

systems, and automation functions.

Fully connected, the truck offers an infrastructure

that is open to future digital

applications. “We are giving them [the

customers] the best complete package on

the market and making their job easier.

That’s exactly what our brand promise

is all about. That’s what we mean when

we say: Simplifying Business.”

Focus on the driver

The fact that MAN modernized its entire

product portfolio and not just one vehicle

model is testament to the dimensions of

the market launch of the new MAN truck

generation in February 2020. Not an easy

task when you consider that developing

a truck is more complex than developing

an automobile. Around 2,100 MAN

employees in total were involved in this

project over the years. On top of that, the

company also brought in 150 customers

from different countries to work out

their requirements and integrate these

into the new vehicle. The company’s

last launch of these proportions was the

MAN TGA in 2000.

When working on the new MAN truck

generation, the developers paid particular

attention to the driver cab interior,

which was redesigned completely. That

was made possible due to 10 years of

research and development with more

than 740 test users. “We deliberately

made truck drivers the focal point of

the development process. Our task was

to find ways of making the driver’s job

easier and also improving the conditions

he works and sleeps in at the same time,”

explains Stephan Schütt, responsible for

modernizing the driver cab in his role

as lead developer of the cab/chassis. The

result? The right driver cab for every

area of application, with a focus on ease

of use, ergonomics, and high levels of

driving comfort with sufficient mobility.

All of these are important when it comes

to attracting new employees. After all,

there is currently a shortage of 50,000

drivers in the European transportation

industry.

Individual configurations

Individualization and specific adjustments

to vehicles are key success factors,

given how extremely fragmented the

transportation and logistics industry

is. Moreover, customer requirements

are becoming increasingly more varied

within the framework of modern logistics.

With this in mind, MAN’s future

approach to configuration will focus

a lot more on the transportation tasks

and the specific needs of its customers.

“What matters is that we have become

a lot more efficient: We now offer 10

percent more variants, but 20 percent

fewer parts,” Drees explains.

Global Goals Yearbook 2020 123


ELIMINATING

SCHISTOSOMIASIS BY 2030:

LEAVING NO ONE BEHIND

More than 10 years ago, the World Health Organization (WHO) stepped up its fight against

neglected tropical diseases and set out a roadmap, with various international alliances

supporting these targets. From the very outset, Merck has been deeply dedicated to the cause

and has been investing considerable resources to move towards the fulfillment of the ambitious

roadmap targets. In these endeavors, the company has been focusing on the treatment and

elimination of schistosomiasis, a parasitic infection. In addition to the medicine which Merck has

been providing for many years, a pediatric formulation will soon be available, allowing children

under the age of six to be treated as well.

By Manfred Klevesath, Merck

Nearly two billion people across the

globe are affected by neglected tropical

diseases (NTDs), primarily populations

living in tropical and subtropical climates.

Although most of the 20 NTDs

identified by the WHO are essentially

treatable, the endemic areas severely

lack the financial resources – or even

the healthcare infrastructure – needed

to combat these infections. In 2011, the

WHO laid out its NTD Roadmap detailing

targets to be achieved by 2020. Now

this agenda is being updated with goals

for the next 10-year period. With deep

involvement from Merck, the WHO has

created a new NTD 2030 Roadmap that

is scheduled for launch in the end of

of 2020.

In order to combat NTDs, all relevant

international actors must join forces

and pull together. To this end, the London

Declaration on Neglected Tropical

Diseases was launched in 2012,

signed by international stakeholders who

made a commitment to jointly control

or, where possible, eliminate 10 of the

diseases named in the WHO roadmap.

Merck has supported the London Declaration

from the very beginning and

collaborated to help drive progress.

One of the most serious NTDs is schistosomiasis,

a disease Merck has been working

especially hard to defeat. To bring

together the numerous organizations

124

Global Goals Yearbook 2020


engaged in this fight, the company initiated

the Global Schistosomiasis Alliance,

which is developing holistic solutions to

advance the control and elimination of

this serious parasitic disease.

Merck donates up to 250 million

tablets per year

Also called bilharzia, schistosomiasis

is a parasitic flatworm infection that is

particularly difficult to control. The WHO

estimates that more than 240 million

people per year require treatment, with

approximately 200,000 deaths annually.

Schistosomiasis takes a particularly

heavy toll on children.

The disease can be treated effectively

with a drug from Merck, which donates

up to 250 million tablets a year to the

WHO – totaling more than one billion

since 2007.

However, medicine donations and drug

treatment alone are not enough to eliminate

schistosomiasis. It will take an integrated

approach that includes access

to safe drinking water, sanitation, and

hygiene. In addition, vector control can

disrupt the life cycle of the parasites in

the snails that serve as an intermediate

host.

Health education is also a key component

of these efforts. Merck engages in a variety

of partnerships to provide support

for preventive healthcare. For instance, it

has joined forces with the NALA Foundation

and the Ethiopian Federal Ministry

of Health to run a pilot in the Bench

Maji region of southwestern Ethiopia.

There, they are testing how to reduce the

spread of schistosomiasis by distributing

customized educational material and

improving water, sanitation, and hygiene

facilities through a community-based

approach. The village communities are

deeply involved in these efforts. Since

the end of 2017, the hygiene awareness

campaigns have reached 250,000 people

in southwestern Ethiopia, almost half of

whom are school-aged children.

Expanding networks to fight

schistosomiasis

The overall results from the past 10 years

show that efforts to control and eliminate

schistosomiasis have been thoroughly

successful. For instance, 71 percent of all

children in need were treated for the disease

in 2017, and the prevalence – that

is, the proportion of people infected with

schistosomiasis – declined significantly.

Dr. Johannes Waltz, head of the Merck

Schistosomiasis Elimination Program,

says, “Going forward, it may thus actually

be possible to eliminate schistosomiasis

in some parts of Africa if systematically

diagnosed and treated.”

In the immediate future, Merck intends to

step up its activities to eliminate schistosomiasis

on all levels. “We want to optimize

our tablet deliveries, make the tablets

accessible to further impacted populations

– especially young children – and

take a more integrated approach,” says

Dr. Waltz, detailing the next set of goals.

The aim is to have a suitable drug to treat

schistosomiasis in children under six

available by 2022. Since 2012, Merck has

been collaborating within a consortium

to develop a pediatric version. Scientists

are working on an optimal formulation

of praziquantel, which is the standard of

care treatment for pre-school children.

The new medicine – a small, orally dispersible

tablet – was successfully tested

in a clinical Phase II trial in Ivory Coast.

The pivotal Phase III study in children

three months to six years of age is ongoing

in Ivory Coast and Kenya.

Internally, Merck consolidates its research

and development activities to

improve schistosomiasis treatment under

its Global Health Institute, which also

coordinates the development of other

new medicines and vaccinations against

infectious diseases. Founded in 2017,

the Global Health Institute has played

a big part in helping Merck achieve

its commendable fourth place in the

Access to Medicine Index, which assesses

20 of the world’s largest research-based

pharmaceutical companies on their

actions to improve access to medicines in

more than 100 low- and middle-income

countries.

Through its numerous efforts to defeat

schistosomiasis, Merck is helping

achieve Sustainable Development Goal

3, which prioritizes people’s health and

well-being. The company’s activities

particularly support SDG Target 3.3,

which focuses on eliminating NTDs

by 2030.

Global Goals Yearbook 2020 125


PAVING THE WAY FOR

EMISSIONS-FREE FLIGHT

MTU Aero Engines began working on ways to make flying more environmentally sustainable

long before the current debate on climate action got underway. In fact, the company has been

pursuing a roadmap for sustainable product development for years, mapping out a route toward

a significant reduction in aircraft engines’ fuel consumption, CO 2

emissions, and pollutant

emissions. MTU’s long-term goal is to make aviation emissions-free.

By Ute Schwing, MTU Aero Engines

Aviation opens the door to worldwide

mobility, contributes to growth and prosperity,

and connects people and cultures.

However, flying has its consequences,

especially for the climate. MTU is rising

to this major challenge and doing its part

to shape tomorrow’s aviation industry by

developing innovative, low-emission propulsion

concepts. Emissions-free flight

is the ultimate goal. The only way to

achieve this is if the entire industry pulls

together and policymakers implement

the appropriate framework.

Pioneering approach to climate action

In its development of products and

technology, MTU focuses on reducing

engine fuel consumption levels and,

by extension, CO 2

emissions. This is

something the company can directly

influence through the development

and production of its flagship components

– high-pressure compressors

and low-pressure turbines. MTU is also

conducting research into new propulsion

concepts that will pave the way for

aviation to become emissions-free. Fuel

consumption and CO 2

emissions are

directly proportional and major factors

in the impact that aviation has on the

climate. In its Clean Air Engine agenda,

MTU defines specific goals for 2050 that

lay the groundwork for emissions-free

flying in the long term.

The company is committed to meeting

the goal set out in the Paris Agreement of

2015 to limit global warming to less than

2°C. In its “Technology roadmap toward

emissions-free flight,” MTU presents a

possible path to achieving the long-term

goal of zero-emissions aviation. In addition,

the use of sustainable aviation

fuels (SAFs) can significantly reduce CO 2

emissions both from the aircraft fleet

already in service and from new engines.

MTU advocates the introduction of SAFs.

A big step in the right direction:

The geared turbofan engine

With the first generation of the GTF

Engine Family, which MTU develops

and manufactures together with Pratt

& Whitney, the partners have, in fact,

exceeded MTU’s initial climate target

of a 15 percent reduction in CO 2

emissions

(achieving 16 percent with the

PW1100G-JM, which powers the A320neo,

for example). Since 2016, this engine

family has been successively introduced

in various models for a total of five aircraft

applications. This first generation

has already enabled airlines to save more

THE IMPACT OF AVIATION ON THE CLIMATE

The United Nations Intergovernmental Panel on Climate Change reports

that the climate impact of air traffic is due mainly to CO 2

emissions, ozone

production as a consequence of NO x (nitrogen oxide) emissions, and the

formation of contrails and cirrus clouds. Since CO 2

emissions have the greatest

effect on the climate, developing energy-efficient engines is one of the solutions

with the greatest potential to cut the levels of this greenhouse gas. New

combustor concepts can significantly reduce NO x emissions, while the choice of

flight route is one means of curtailing the formation of contrails.

126

Global Goals Yearbook 2020


SUSTAINABLE CONCEPTS FOR HEAT ENGINES

Engine concepts that MTU is pursuing in a joint

effort with universities:

• Composite cycle concept: An additional piston

compressor and piston engine significantly increase

air compression. In turn, this further reduces fuel

consumption and CO 2

emissions. The advantage: The

design of the aircraft would not have to be changed to

accommodate such an engine. The big challenge: The

high pressure and temperature ratios in the engine

increase NO x emissions.

• Water-enhanced turbofan (WET engine): It employs a

heat exchanger to use the energy from the engine’s

exhaust gas stream. It works by evaporating water

in a heat exchanger and injecting the vapor into the

combustor for the turbine to generate additional power.

A condenser is used to obtain the requisite water from

the exhaust gas. Wet combustion of this kind massively

reduces NO x emissions. It also cuts fuel consumption and

CO 2

emissions to a large degree and greatly limits the

impact of contrails on the climate. The challenge: How to

integrate the required condenser into the aircraft.

1. Development

Clean Air Engine (Claire)

New technologies for

improved sustainability

and longer product

service lives

2. Production

Environmental management

(mostly compliant with

EMAS and/or ISO 14001)

Production processes that

conserve resources, such

as additive manufacturing

3. Service life

MTU-developed Engine

Trend Monitoring

MTU repairs, such as

ERCOAT eco (patent erosion

protection for compressor

blades)

3. Recycling

Solutions tailored to older

engines for disassembling

and recycling components,

such as SAVE Plus and

VALUE Plus , for effective

end-of-life management

Sustainability standards

for suppliers

than three million metric tons of CO 2

in flight. It also marks a big success in

terms of airborne pollutants, cutting

NO x emissions by 50 percent. Following

the promising launch of the new geared

turbofan engine, MTU is pursuing an

evolutionary approach: As part of the

company’s Clean Air Engine agenda,

geared turbofan technology is set to be

further refined to create an ultra-highbypass

engine. This technology development

work could be completed by 2027.

Electric propulsion systems

Battery-electric propulsion systems enable

emissions-free aviation – provided

the power is produced sustainably. Currently,

however, battery-electric engines

are not technically feasible for existing

commercial passenger aircraft. Today’s

battery concepts do not offer anywhere

near the energy density of conventional

kerosene. One possible concept for longer

distances would be hybrid propulsion

systems combining electric motors, generators,

gas turbines, and batteries. The

disadvantage is the addition of significant

extra weight, plus energy conversion

losses.

A viable alternative: Sustainable fuels

Sustainable fuels have the potential

to neutralize CO 2

emissions generated

by aviation and can already be used in

today’s infrastructure. Currently, only

biomass-based fuels are available in

larger quantities. The disadvantage is

that they stand in direct competition

with food production. Experts believe

that there is greater potential for synfuels

that are produced using renewable

electricity or sunlight. At the moment,

however, sustainable fuels cost many

times as much as standard kerosene.

Does the future belong to the fuel cell?

A highly promising emerging technology

is hydrogen-powered fuel cells, which

emit nothing but water. This concept

uses hydrogen as its energy source and

employs electric motors to drive the

propulsors. Hydrogen has a very high

energy density, so fuel cells could conceivably

also power long-distance flights.

As things stand, however, they are not

suitable for use in larger aircraft. Nevertheless,

in light of their potential, MTU

is pursuing this concept as a long-term

solution.

Learn more:

sustainability.mtu.de/report2019/en/

mtu.de/company/corporate-responsibility/

Global Goals Yearbook 2020 127


NETAFIM’S COMMUNITY

IRRIGATION PROJECTS

Transforming the Lives of Thousands of Smallholder Farmers

and Delivering on 10 SDGs

By Natan Barak, Netafim

The challenge

In the drought-ridden state of Karnataka,

India, no rain means more than just no

crops. It means that smallholder farmers

may have to sell their land – their only

asset – to repay the loans they took out

to buy seeds and fertilizer.

It is a pattern repeated across many developing

countries, where smallholder

farming accounts for a large portion of

food production and is the basis for the

local economy. Millions of farmers feel

trapped by poor education, lack of access

to water, climate change and droughts,

and outdated farming practices, and they

see poverty as their inevitable destiny.

Reducing dependency on rainfall for crop

production is a key factor for financial

stability and bettering the lives of millions.

This can be achieved with modern

irrigation systems and equitable access

to water. But how can that be done efficiently

in huge numbers when each

individual lacks the financial capacity

to pay for a modern irrigation system

and also has limited ability to adopt

new farming practices and technologies?

Our solution – the Community

Irrigation model

The Community Irrigation model, developed

by Netafim, brings together the

public and private sectors in a joint effort

that brings water, efficient irrigation

equipment, knowhow, new practices

and, above all, hope and prosperity to

these large communities. Community

Irrigation is unique in the way it leverages

economies of scale and organizes

individual smallholder farmers into “irrigation

communities,” along with a fiveyear

commitment by Netafim to operate

the project and train farmers before

handing it over to local communities.

This enables regional government to

implement the large-scale water infrastructure

necessary to bring water to the

water-starved regions. It also gives famers

the modern agricultural practices needed

to set in motion positive knock-on effects

to reverse the cycle of poverty, thereby

creating new employment opportunities

in agricultural production, processing,

transport, and marketing, as well as

reducing rural migration.

An example – the Ramthal project

For the 7,000 smallholder farmers living

in 22 villages in Karnataka, the biggest

single problem was a lack of water that

was distributed fairly.

In the Ramthal Community Irrigation

project, we installed 2,200 km of bulk water

supply and 77,000 km of pressurized

drip irrigation lines across a phenomenal

11,700-hectare area, delivering 11,000 m 3

of water at uniform flow rates every hour

from the pumping station directly to the

plant’s roots – with no evaporation loss.

Providing smallholder farmers with

resource-efficient drip irrigation systems

and digital farming tools enabled them

to double crop yields and increase crop

quality on the same, or even less land

– while using less water, less fertilizer,

and less energy.

This is the power of Community Irrigation,

a model that is directly improving

the livelihoods of 202 villages, 97,000

farmers, and more than 106,000 hectares

of farmland across India. Similar projects

are now being rolled out in Zambia and

Zimbabwe.

The Community Irrigation model

and the SDGs

The 17 UN Sustainable Development

Goals call on us all to work together

to end poverty, protect the planet, and

ensure equitable prosperity. At Netafim,

it is our mission and privilege to have

a business strategy that directly contributes

to delivering 10 of the 17 SDGs,

and that is what we have done in Karnataka

over the last few years with our

Community Irrigation model.

A key aspect of the SDGs we are promoting

is their interconnectedness. Working

in the field of agriculture, every day we

witness how farming, food security, and

the environment are all inextricably connected.

This enables Netafim to make

life-changing impacts on communities.

Thanks to Netafim’s Community Irriga-

128

Global Goals Yearbook 2020


tion model, farmers have a sustainable

water infrastructure for growing more

and better harvests and are no longer

hostage to droughts and erratic rainfall.

Lakshmi Sajjan, a farmer from Rakkasagi

Village in Karnataka, participated in the

Ramthal Community Irrigation program.

She said: “Before drip irrigation, we used

to get good returns only if it rained well.

When rains failed, we lost investment

on seeds, fertilizer, and labor cost. With

no other option, we were forced to sell

our land to repay our loans.”

In the words of Mahantesh Halabar, a

farmer in Belgal Village: “This project

has helped us better our living standards.

Because of an assured two crops and

guaranteed returns, young farmers are

returning to the villages.”

Through policy support and cross-sector

collaboration and solutions development,

we can help farmers to mitigate the growing

challenges of climate change. We can

make it economically viable for smallholder

farmers to receive the modern drip

irrigation systems and digital farming

tools, and the agronomic knowhow

and training needed to achieve higher

sustainable farming incomes. By increasing

incomes, farmers and their families

can gain access to better sanitation,

education, and healthcare in a way that

balances economic, social, and environmental

sustainability. Our core message

is one of empowerment and optimism.

Putting simple-to-use technologies in the

hands of farmers really does transform

the lives of so many while supporting

Netafim’s mission – to Grow More with

Less TM !

Ramthal, India, Community Irrigation project – training farmers

Ramthal, India – women make up 50% of the agricultural labor

force in the developing world.

NETAFIM’S COMMUNITY IRRIGATION PROJECTS ADDRESS THE FOLLOWING

10 SDGs:

Goal 1: No poverty – by transforming subsistence farmers

into commercial farmers and increasing farmland productivity

and income per farmer.

Goal 2: Zero hunger – by eliminating dependency on rain and

increasing agricultural yields.

Goal 5: Gender equality – by empowering women, who make

up 50 percent of the agricultural labor force in the developing

world.

Goal 6: Clean water and sanitation – by saving water for AG

(responsible for 70 percent of global usage) and preserving

its quality through integrated water resource management.

Goal 8: Decent work and economic growth – by increasing

crop yields and the adoption of modern farming skills and

capacity-building of farmers, farming becomes economically

and professionally attractive to a younger generation,

increasing incomes for family-run farms.

Goal 9: Industry, innovation and infrastructure – by developing

a new path to Digital Farming and related technologies.

Goal 13: Climate action – by reducing agriculture’s negative

greenhouse gas impacts caused by flood irrigation.

Goal 15: Life on land – by combating desertification and

transforming arid land into green and arable land.

Goal 16: Peace, justice and strong institutions – a world with

less hunger, equitable water distribution, less farmer debt,

and land constraints is a world with fewer conflicts and

stronger farming communities.

Goal 17: Partnership for the goals – by bringing together

public and private entities to achieve massive transformation

and by facilitating partnerships between farmers and markets

for their produce.

Global Goals Yearbook 2020 129


A BETTER FUTURE: ESG-

RELATED ISSUES THROUGH

OUR CORE BUSINESS

Since its founding in 1925, the Nomura Group has contributed to economic growth and social

value creation by supporting the development of capital markets and promoting the circulation

of money. At the core of these efforts is our social mission to help enrich society through our

expertise in capital markets, based on “Our Founder’s Principles,” a set of guiding principles laid

out by the Group’s founder, Tokushichi Nomura, and ingrained in the Group’s corporate

philosophy.

By Nomura Group

A rich natural environment and healthy

social environment are the foundation

of economic and business development

as well as people’s lives. Without such

a foundation, it is not possible to fulfill

Nomura Group’s social mission of helping

to enrich society. We are expanding

our products and services and strengthening

our global expansion based on the

recognition that the protection of the

global environment and the promotion

of various initiatives are essential for the

maintenance and development of both

the economy and society.

In January 2019, we established the

“Nomura Group ESG Statement” to further

promote the realization of a sustainable

environment and society by

informing stakeholders of our approach

to environmental, social, and governance

(ESG)-related activities and our envisaged

response to environmental and

social risks. The financial system – the

driving force of the economy – enables

financial flows that contribute to environmental

and social sustainability. We

recognize that we play an important role

as a leading global financial institution

in conducting securities and investment

banking business. Through our core

business, we create a better future by

addressing ESG-related issues, including

combating climate change, promoting

innovation, and supporting regional

revitalization. In the meantime, we believe

that it is important to let as many

stakeholders as possible know that the

financial services business can contribute

to sustainable society from a variety of

approaches.

Toward sustainable finance

development

The first Green Bond issued by the

European Investment Bank, in 2007, is

now firmly rooted in Japan. At the early

stage, our clients were cautious about the

significance of the Green Bond, including

its cost. However, as the number of bonds

issued has increased rapidly in recent

years, there is a growing tendency to

use green bonds. In Japan, the first green

bond from a domestic company was issued

by the Nomura Research Institute as

the lead manager of Nomura Securities

in September 2016. Given the growing

interest in ESG among domestic and

overseas issuers and investors, Nomura

Group has appointed ESG specialists both

in Japan and overseas and has built up

a track record of underwriting bonds.

In Japan, we underwrote Obayashi

Corporation, Sustainability Bonds of

Japan Railway Construction, Transport

and Technology Agency, and Green

Bonds of Shimizu Corporation and

the Japan Housing Finance Agency

in 2019, and Green B