Sri Lanka consistently ranks among the top ten countries most at risk of extreme weather events like cyclones, floods, and droughts, according to the Global Climate Risk Index. Climate change is outpacing Sri Lanka’s ability to respond effectively, particularly affecting its poorer regions. As an island nation, Sri Lanka is highly vulnerable to climate change and disasters, threatening its unique biodiversity through habitat fragmentation and over-exploitation.
UN agencies warn that extreme heat poses a significant threat, with the number of days exceeding 35°C potentially increasing from 20 to over 100 by the 2090s. Additionally, food insecurity remains a serious challenge, affecting approximately 17% of the population in March 2023.
Rathika de Silva, Executive Director of Global Compact Network Sri Lanka, spoke to Echelon about how the agency is helping businesses adopt impactful actions that avoid greenwashing and instil objectives into core business practices that foster gender equality, climate action, living wage, finance and investment, and water resilience, thereby contributing to the achievement of the Sustainable Development Goals (SDGs).
Launched in 2000 by former UN Secretary-General Kofi Annan, the United Nations Global Compact calls on companies to align with universal principles on human rights, labour, the environment, and anti-corruption, advancing goals such as the UN Sustainable Development Goals (SDGs). With over 9,500 companies and 3,000 organizations across 160 countries, it’s the largest corporate sustainability initiative worldwide.
Corporate sustainability begins with a company’s core values and a principled approach to business. This means operating in a way that meets basic responsibilities regarding human rights, labour, the environment, and anti-corruption consistently across all operations. By integrating the UN Global Compact’s Ten Principles into their strategies, policies, and culture, companies not only fulfil their obligations but also set the stage for long-term success.
What specific actions does the UN Global Compact Network in Sri Lanka encourage businesses to take through the ‘Forward Faster’ initiative, and how do these actions contribute to the achievement of SGDs?
Forward Faster is the result of extensive research and collaboration, demonstrating a strategic shift from speeches on sustainability to actionable initiatives. Forward Faster serves as a global platform, focusing on corporate action and advocacy, particularly in five priority areas: gender equality, climate action, living wage, finance and investment, and water resilience.
By concentrating on these areas, industries can effectively impact multiple Sustainable Development Goals (SDGs). For example, addressing gender equality targets can significantly enhance business performance and contribute to global GDP growth. Similarly, targeting climate action goals can lead to improved efficiency, reduced costs, and enhanced reputation among stakeholders.
Living wage initiatives, though challenging, offer benefits such as decreased turnover, increased productivity, and strengthened supply chain relationships. Moreover, promoting sustainable business practices not only supports employees but also contributes to community productivity and economic stability.
In addressing these priority areas, corporations must commit to sustainable practices and support initiatives like Forward Faster. By signing up, companies can engage in global efforts to achieve the 2030 agenda, contributing to a more prosperous and equitable future for all.
Can you provide examples of how participant companies in Sri Lanka have demonstrated measurable progress in the ‘Forward Faster’ initiative?
While Forward Faster is a recent initiative, we’ve been laying the groundwork with various working groups focusing on climate, gender equality, business and human rights including living wages, as well as water and ocean stewardship. Additionally, we’re planning to initiate a working group on sustainable finance and SMEs, further delving into finance and investment. Another active area is sustainable supply chain management.
We’ve closely collaborated with companies, boasting over 75 signatories to the Global Compact, actively participating in our initiatives. They’ve shown great dedication to the working group structures and have been actively pursuing the outlined agendas.
In terms of climate action, over the past five years, we’ve been promoting the Science-Based Targets initiative in Sri Lanka. This initiative, developed in collaboration with organizations like the World Resource Institute and WWF, underscores the importance of setting science-based targets to avoid greenwashing practices. We’ve conducted accelerators over the past three years to guide organizations in adopting science-based targets, resulting in 14 companies in Sri Lanka embracing this approach and continuing their decarbonization journey. We aim to have every Global Compact participant company aligned with science-based net zero goals by 2030, investing heavily in programmes to achieve this ambition.
We’ve observed significant progress across various sectors. From plantations to fabric manufacturers, apparel, ICT companies, and SMEs, many have committed to science-based targets. This shift is driven by the need to access global markets and become preferred suppliers for major brands. Achieving science-based targets not only reduces the risk of greenwashing but also fosters innovation in processes, systems, and products.
Moreover, in areas like gender equality, our Target Gender Equality accelerator has seen substantial participation over the past five years. Recognizing the challenges faced by companies, we’ve condensed the programme from 12 to nine months. Last year, we introduced new accelerators focusing on business and human rights, as well as SDG innovation. These initiatives aim to create an enabling environment, enhance policy standards, and address supply chain issues.
Our SDG innovation accelerator specifically targets young professionals under 35, encouraging them to develop innovative solutions aligned with the Sustainable Development Goals (SDGs). The overwhelming response, with over 100 registrations this year, underscores the value companies place on our initiatives aimed at accelerating progress towards the SDGs.
In the context of sustainability efforts, what strategies does the UN Global Compact Network Sri Lanka employ to combat greenwashing practices among businesses in Sri Lanka?
As I already mentioned, the comprehensive approach we’ve taken with initiatives such as Science-Based Targets, which were developed collaboratively with esteemed organizations like the World Resource Institute, CDP, and WWF, helps us actualize the Sustainable Development Goals (SDGs) and steer clear of greenwashing practices. By providing businesses with a structured, scientific methodology, we offer a responsible and credible alternative.
Our Climate Ambition Accelerator, which has been operational for several years and is set to continue this year, serves as a prime example. As we move forward, this accelerator will evolve to further assist companies in distancing themselves from greenwashing. Over the decades of our existence, the UN Global Compact has continuously guided and supported companies, ensuring they uphold rigorous standards and avoid such deceptive practices. This commitment remains steadfast as we enter our 25th year.
How does the private sector in Sri Lanka actively engage in informed debates surrounding climate action, influence consumer behaviours, and advocate for policy changes in alignment with the Sustainable Development Goals?
The private sector plays a crucial role in achieving the Sustainable Development Goals (SDGs) across various industries such as manufacturing, plantations, tourism, banking, and finance. The involvement of industry leaders and SMEs is pivotal, as highlighted by initiatives like the Sustainable Development Council of Sri Lanka. Recently, the council launched the Inclusivity and Sustainability for Business (ISB) strategy, garnering participation from a wide array of industries.
Collaborations with relevant ministries and organizations like UNESCAP underscore the commitment to SDGs, ensuring that industry perspectives are integrated into decision-making processes. However, challenges such as increased tariffs and energy costs require careful consideration to avoid disruptions to industries already committed to export markets.
Efforts to integrate the private sector into discussions and decision-making processes are ongoing, exemplified by the establishment of the business council under the Sustainable Development Council of Sri Lanka. This inclusive approach, involving chambers, private sector representatives, the Global Compact, and the UN Resident Coordinator Office, aims to ensure that all stakeholders are engaged in the journey towards achieving the SDGs.
Could you elaborate on the role of multi-stakeholder partnerships in driving corporate sustainability transformation in Sri Lanka, as exemplified by UN Global Compact Network Sri Lanka? What are the key benefits and challenges associated with such collaborations?
Multi-stakeholder partnerships are paramount for achieving the Sustainable Development Goals (SDGs). Collaboration ensures greater effectiveness and avoids working in silos, which ultimately impedes progress. Industries, particularly in the private sector, recognize the necessity of partnering with the public sector and communities to address diverse expectations and challenges related to the SDGs.
Understanding community expectations is crucial, as they may differ from industry perceptions. Therefore, creating an enabling environment is not solely for industry survival but for the benefit of all, emphasizing the concept of just transition. While many companies have engaged in multi-stakeholder collaborations for some time, there’s a need to scale up these efforts and ensure measurable impact.
Measurement is essential to determine effectiveness and productivity. Collaborative efforts allow for pooling resources and setting more ambitious goals, accelerating progress towards the SDGs. Additionally, collaboration reduces resource wastage and confusion among stakeholders, leading to more efficient outcomes.
Partnerships involve various stakeholders, including the public sector, chambers of commerce, UN agencies, and development agencies. These collaborations aim to drive SDG achievement collectively, contributing to a momentum of progress, even if not immediately apparent.