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LeadershipforTransitionandRio+20

Howtobringpartnershipstothenextlevel?

ByRaymondVanErmen

18July2012.

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SummaryEuropean Partners for the Environment facilitated four think‐tank meetings during2011and2012onbehalf of theResourceEfficiencyAlliance, hostedby theEuropeanEconomic and Social Committeeprior toRio+20. The themeswere: oceans, thenewfrontier; responsibility & accountability; environment and poverty, transformativepartnerships,theEuropeansatRio+20;LeadersandFrontRunnerspreparingRio+20.AtRio+20,EPErepresentativesPeterGlynnandRaymondVanErmenconcentratedon‘partnerships’andtheroleofbusiness,tradeunions,civilsocietyandpublicauthoritiesinthiscontext.Thisreportissummarizingour2011‐2012findingsandproposalsforthenextsteps.Rio+20 shouldnotbe judgedonlyon the finaldeclaration ‘TheFutureweWant’. If theGreenEconomy‘top‐down’approachattheUNconferencehasbeenafailure(‘thegreeneconomyisanewformofcolonialism’,accordingtoMr.EvoMorales,PresidentofBolivia),the ‘bottom‐up’approachtothegreeneconomyinthecontextofpovertyeradicationatRio +20 is a success story. The 700 side events have demonstrated the extraordinaryvitalityandtalentsofmyriadsofinitiativesandorganizations.TheUNshouldcapitalizeonthem.Thisiswhythe2022globaleventshouldbea‘SummitofPartnerships’.Despitethefactthatthefinaldeclarationstatesthatsustainabledevelopment"canonlybeachievedwithabroadallianceofpeople,governments,civilsocietyandprivatesector,all working together to secure the future we want for present and future generations"(§13), the UN approaches to ‘partnerships’ and the public authorities and businessmulti­stakeholder value chain partnerships approaches are all in their infancy. Thepartnershipconcept is therightway tostructurerelationships,withgovernmentsandothersgoingforwardtoacceleratethetransitionandfacilitatemassivechangealongthevaluechain.There is a move towards a new generation of partnerships. Previously, some werepushing ‘partnerships’ to avoid State intervention or Convention negotiation. Otherswere against partnership, mainly referring to public‐private partnerships. Today thenewapproach topartnershipsrefers to ‘valuechainpartnerships’betweenpublicandprivatesectorandcivilsociety.Thenewpartnershipgenerationdoesnotquestionthespecificroleofpublicauthorities.Itisinclusivebutdoesnotsubvertthestatutoryauthorityofagovernment.Partnershipsdo recognize the importance of the private sector, trade unions and civil society’respective roles. They empower partners through information. They take care of theweak link and support champions. They help partners to look ahead, secure a justtransition and decent jobs. They are open‐coordination platforms exploring togetherandwithsocietyhowtoinnovate,bestcatalyzesocietyeffortsaswellasthemarketandscaleup.AConventionwouldcreatethe‘confidenceframework’needed.Itwoulddefinegoals, indicators,rulesandcreatetheconvergencemechanismstosecureascaleeffectandmassivechanges.

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Partnerships are not addressed by ‘The FutureweWant’, which is a gap. This iswhythere should a ten years roadmapwith (i) a ‘Convention Framework on Partnerships’adoptedtogetherwiththe‘SustainableDevelopmentGoals’(SDG’s)and(ii)a‘SummitofPartnerships2022’.The ‘Convention Framework on Partnerships’ should be designed to build trust, putprivatesectorandcivilsocietyonanequalfooting,acceleratechange.Itshouldfocusonpartnershipscontributingtoagreeneconomyinthecontextofpovertyeradicationandsustainable development. It should link with the major issue of responsibility andaccountabilityofthepublicandprivatemarketactors.FrontrunnercountriesshouldbedeterminedtogoaheadifaUNconsensusisoutofreach.ThedraftFrameworkConventionwouldprimarilyfocusonthesetting‐upofareportingand cooperation system among the green economy and good life for all multi‐stakeholder partnerships in the context of sustainable development and povertyeradication.Itspurposewouldbetofixtheconditionsforaccesstopublicfundingandcreate synergies between the multi‐stakeholder partnerships that contribute to theimplementationofparagraphs13,55,58,71and73oftheRio+20Declarationandapplytherecommendationsinparagraphs46and47.With theeventsgeneratedby thedebt andeuro crisis, theEuropeanUnionhas lost agreatdealof its lustreand international influence inthe faceofemergentcountries; ithasanumberofassetstoturntogoodaccountatinternationallevelifitcan–fasterandbetterthantheothers–proposenewgovernancemodelsandimplementthemathome.AtRio+20 side eventsEuropean front runnershavedemonstratedparticular skills onwhichwe shouldbuild.A ten‐year strategy isproposedand thenext steps relating topartnershipswhichshouldbeonaEuropeanroadmapareproposed.Itincludesi.a.(i)aBlueEconomyPilot ‘ResponsibleUseoftheSeasDynamicMulti­stakeholderJointReviewSystemtobelaunchedby2014duringtheGreekEUPresidency,afterconsultationwiththeinterestedpartiesduring2013(ii)aCovenantofBanks,PensionFundsandInsuranceCompanies2013tomobilizeprivatecapitalinsupporttoEurope2020objectives(iii)apost2014EUSustainableDevelopmentStrategybasedonaMulti­stakeholderAgreementforGoodLifeforAllinanInclusiveEuropeMysincerethankstocolleaguesandfriendswhowerekindenoughtogivetheiropinionandsuggestionsonthepreliminarydraftsofthisreport:PeterGlynn,BriceLalonde,MichelPrieurandGenevièveVerbrugge.Ofcourse,Iamsolelyresponsibleforitscontent.

RaymondVanErmen

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RaymondVanErmen

As European Environmental Bureau Secretary General (Brussels) and Treasurer of theEnvironment Liaison Committee International (Nairobi), he was one of the players inchargeof theEnvironmentalNGO’spreparationofRio1992withconferences inNairobi,Tunis, ‘Bridging the gap, fromVienna toBudapest’, ‘TheBergenConference’, ‘TheParisConference Roots of the Future’ which adopted the YaWananchi Agenda. He attendedRio1992,Rio+5,Johannesburg2002,Rio+20.

AsEEBSecretaryGeneral,hehasbeeninvolvedinseveralprocessessuchasGreeningtheEU Treaty or the Arhus Convention and has designed European Partners for theEnvironment,togetherwithClaudeFusslerfromDowEurope,MichelMiller,ETUC,KonradOtto­Zimmerman, Iclei,BedrichMoldan,DavidRehling,GeraldineWalsh,ElliasNellasasNGOs,representatives,ClausStuffman(formerDGEnvironment)asExecutiveDirectorandJacquelineAloisideLarderel­UNEPasgodmother.

Lateron,asEPEExecutiveDirector,hehasbeeninvolvedinseveralpartnershipinitiativesandthinktankmeetingssuchastheEuropeanWaterPartnership(EWP)andworkedonissueslikesustainablebanking,sustainabletrade,empoweringcitizens&marketactorstoacceleratethesustainabilitytransition,anewsocietalpact,valuechainmanagementandthenexusfood­water­energy­rawmaterial­climate­poverty,etc.

Tableofcontents:

1. Introduction2. Vision3. Toacceleratethetransition,Europeansskills.4. Anewgenerationofpartnerships5. Transformativepartnerships6. Partnershipsforthegreeneconomy&goodlifeforall7. Trust.8. Scalingup.Anactionplan2012‐2022atUN

8.1.Resourcesharingforagreeneconomyinthecontextofpovertyeradication8.2.Sharedvalues.NaturalCapital8.3.GlobalGreenGrowth8.4.Convention‐framework.Fivepillars8.5.The2020SummitofthePartnerships.

9. Expectedobstacles.Lessonsfromthefront.RoleofFrontRunners.10. Anactionplan2012‐2022atEUlevel

10.1AEUCASRS10.2ABlueEconomyPilot10.3APactofCompaniesandanewregulatoryframework10.4 A Pact of Banks, Pension Funds and Insurance Companies and a newregulatoryframework10.5PartnershipwithResourceEfficiencyAgenciesandClubofEnterprises

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10.6TheEUSustainableDevelopmentStrategypost2014HomagetoMrAlmirNogueiradeAmorimandMrJoãoLuizTellesPenetra,twofishermenwhoweremurderedtwodaysaftertheirparticipationon19JuneinameetingatPeoples´Summitdiscussingtheimpactsofbigprojects(basicallyoil,miningandsteel)intheRiodeJaneiroState.AlmirNogueiradeAmorimand JoãoLuizTellesPenetra,or “Pituca”ashewasknown,werebothleadersoftheAssociaçãoHomensdoMar–AHOMAR(AssociationofSeaMen)whichwassetupin2009todefendtherightsofthefisher­folkworkinginRiodeJaneiro,andparticularlythoseaffectedbytheconstructionofagaspipelineforPetrobras.Sincethefoundingoftheorganisation,itsmembershavereportedbeingsubjectedtodeaththreats, physical attacks and killings. According to AHOMAR’smembers, the attacks areperpetratedbypeople linked todeathsquads, securityguardshiredby thecompanies inchargeofbuildingpipelinesandmilitiasoperatingintheregion.On24and25June2012the bodies of human rights defendersMr Almir Nogueira de Amorim andMr João LuizTellesPenetrawerefoundfollowingtheirdisappearanceon23June2012.

Source:‘www.ejolt.org–environmentaljustice&ANPED

1.IntroductionEuropean Partners for the Environment facilitated four think‐tank meetings during2011and2012onbehalf of theResourceEfficiencyAlliance, hostedby theEuropeanEconomicandSocialCommitteepriortoRio+20.Wewishtoexpressoursincerethanksto the EESC President, the EESC Sustainable Development Observatory and the EESCstaff and all the individualswho took part in the events andmade such a significantcontribution.Thethink‐tankthemeswere:Oceansthenewfrontier(December2011);Responsibility&accountability (April 2011);Environment andpoverty, transformativepartnerships,theEuropeansatRio+20(June2012);LeadersandFrontRunnerspreparingRio+20,themajorconferenceofDecember2011.TheseeventshavebeensponsoredbytheFrenchMinistry of Ecology, the ADEME Agency and the GRONTMIJ Company. the Union ofGreekShip‐ownersandtheEuropeanWaterPartnership.Wearegratefultothem.Despitethefactthatthefinaldeclarationstatesthatsustainabledevelopment‘canonlybeachievedwithabroadallianceofpeople,governments,civilsocietyandprivatesector,all working together to secure the future we want for present and future generations’(§13), the UN approaches to ‘partnerships’ and the public authorities and businessmulti­stakeholdervaluechainpartnershipsapproachesasexploredinOECDortheWorld

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EconomicForumpapersareallintheirinfancy.Partnershipsarenotaddressedby‘TheFutureweWant’,whichisagap.AtRio+20‘howtobringpartnershiptothenextlevel’hasbeendebatedinseveralsideevents.Threemajorreasonsexplainthisneed:

1. Weneedmassivechange2. Weneedsystemicchange3. Weneedgreen‐economyandgood‐life‐for‐allvaluechainpartnerships.

Rio+20hasbeenaformidable‘marketplace’wherekeypartnersfromallovertheworldhavebeenconfrontingtheirexperiencesandpresentingnewinitiatives.Wearereallyina fascinating era of both social and technological innovation. An era for a new socialcompact (sustainable growth development model). Race to the top for innovationrelatingtoinclusivenessandbottom‐upsocialchangewerepresented.Europeans,andsometimeschangeagents fromspecificEUMemberStates,areplayingleadingrolesinshapingpartnershipsandhavedemonstratedspecialskillsatRio+20,somebecause theyhave learned tough lessons (suchas the failureof theCopenhagenClimate Change Conference), others because they have developed a long tradition ofmulti‐stakeholder dialogue (such as the Dutch Covenant system), some because theyhave a leading position in leading institutions and networks, a few simply because oftheirpersonalleadership.Thisreportexploreshowtoleveragetheseimportantassets.Many partnership best practices exist. There is a need to bring them to full scale formassive changes. For this to happen, Rio+20 has been the opportunity to learnmoreabout some UN initiatives and their plans, but none will succeed if we are limitingourselves to what is in place and what the Declaration ‘The future we want’ isaddressing.NowisthetimeforLeadershipforTransition,weheardinRio.Whyisitnothappeningatthescaleandpacelevelneeded?askedtheUNEPExecutiveDirector.The UN is still searching for the best way to meet these needs and the Rio+20 finaldeclarationdoesn’tgiveastrategy.Thisiswhy,buildingontheConference2011andworkshop2012hostedinBrusselsbythe European Economic and Social Committee and European Partners for theEnvironment prior to Rio+20 and the side events attended, this report presents EPERio+20 findings and the strong messages heard during side events and makes twomajorproposalsforthetenyearstocome.Independently from theRio+20 final conclusions, theobjective is todemonstrate thatEuropean Interested Parties, precisely because the EU influence in Rio+20 wasdecreasing, have and should been taking steps to implement what they arerecommending at UN level. The challenge is to join forces and bring together keystakeholderstobringthetransformativechangeweneedintheworld1.

1UNSecretaryGeneralBanKi‐moonattheEUSustainableEnergyforAllSummit.16April2012.Brussels.

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2.VisionIn 2022 theUN SecretaryGeneral presents the ratified FrameworkPartnershipConventionand100,000certifiedpartnershipsforagreeneconomyand‘benvivir’totheGlobalPartnershipSummit.Thesepartnershipshavebeenakeyleveragetolarge­scale implementation of paragraphs 13, 55, 58, 71, 73, 226 of the Rio+20Declaration(2012)andappliedtherecommendationsinparagraphs46,47,283.Partnershipsaregatheredtogetherin“baskets”.Thebasketthatbringstogetherthehighestnumberofmillionsofparticipantsisthe“youth”basket.The Convention sets the framework for multi­stakeholder partnerships forsustainabledevelopment:objectives(theSustainableDevelopmentGoals–SDGs),conditionsforaccesstopublicfunding,reportingandreviewmechanisms.Itcreatestheconvergenceneededformassive,large­scalechange.Thetransitiontowards a well­being society for all and the transition in the energy andenvironmentalfieldshavebeenacceleratedthankstothesepartnerships.LaunchingthedraftFrameworkConventiondatesbackfromtheautumnof2012when thePresidentof theFrenchRepublic gathered together leading initiativesandpartnershipsinParistolaunchtheprocesswithBrazil,thehostcountryofthe1992and2012UnitedNationsconferences,theEUandseveralgovernments.The draft Framework Convention has been adopted by the 2015 UN GeneralAssembly together with the SDGs, then submitted for ratification, while existingpartnershipshadtobebroughtintolinewithdefinedrulesandobjectivesby2022.In 2022, when the Global Partnership Summit takes place, the Convention hasbeenberatified,thepartnershipscertifiedandasystemmakingthepartnershipactorsaccountablehasbeenestablished.Thechangeisclear,thetransformationprocessspeededupandthetransitionasuccess.3.Toacceleratethetransition–EuropeanSkillsAtRio+20therewere700sideeventsandparallelsessions.Obviouslythisreportcannotpretendtoreflectneitherallofthemnorevenasignificantpart.Thisreportisbuildingi.a.on:

twoworkshopsandoneconferencehostedbyEPEinBrusselsinviewofRio+20 theRioUNGlobalCompactBusinessForum theInternationalLawyersConference UNDESARiodaysonpartnerships TheGreenEconomyCoalitionevent TheEESCSustainableDevelopmentObservatorymeetingsinBrussels.

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Anyothercontributionismostwelcomed.While theEU influenceon theofficialnegotiationprocess isperceivedas ‘decreasing’,fromthemeetingsattendedatRio+20,afewkey‘drivers’(EUCountriesandInitiatives)emergedwithwhichitissuggestedtobuildsynergies:

TheDutchareveryactiveatUNlevelinthefieldofUN‐Businesspartnerships2. The Danes, following the trauma of the Copenhagen climate conference, have

embraced a new strategy based on ‘Sustainia vision’ and ‘global green growth’presentedattheBusinessForum.

The British have pushed for (but failed) a UN Convention on Companies’sustainabilityreportingandshouldremainveryactive in thedomainaswellas‘globalgreengrowth’.

TheFrenchClubRio launchedbytheCommittee21got theparticipationof thePresidentof theFrenchRepublic and4Ministers twice in12days.TheFrencharealsokeyplayersintheinternationalenvironmentallawyersnetwork.

The Greeks have been able to facilitate a side event for the Mediterraneanattended by Prince Albert II of Monaco, representatives from Greece, Cyprus,Malta,France, Italy,Spain,severalUNagenciesanda largevarietyof interestedpartiesfromboththeNorthandtheSouthofMedRegion.

TheGermanswereparticularlyvisibleintheBusinessForum. European Business people are playing key roles in business coalitions such as

WBCSD,ICC,PRIandinnewcoalitionswhichhaveemerged:IntegratingESGintoExecutive Pay, Financing Global Green Growth, Principles for ResponsibleInsurance, CEOWaterMandate, Natural Capital Declaration, 5 Stock exchangesinitiative,GreenIndustryPlatform,sustainableagricultureprinciples,etc.

European Trade Unions were key actors in the International Trade Unionscongress.

European MEPs and MPs have been key players in the conference of Globallegislators.

The European Economic and Social Committee and the Committee of Regionshaveplayedamajorroleintheirrespectivefieldsofaction.

Europe’sexperiences indealingwithconsensusbuildingdemonstrateskillswhichwillbeusefulforleadingthetransitionneeded.4.WeneedanewgenerationofpartnershipsAccording to a German report entitledPartnerships for SustainableDevelopment;WhyandHowRio+20MustImprovetheFrameworkforMulti­stakeholderPartnerships3:

2 TheDutch expertise in developing transformative partnerships and scale‐up (Ten based pyramids asHubsofpartnership):

1. AndrévanHeemstra,GCLocalNetworkNetherlands2. MyrtilleDann,BoPinnovationCentre3. MarcvanAmeringen.

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The CSD database lists 349 partnerships that are working in areas relating tosustainabledevelopment.ManymoreareinplaceinEuropeandoutsideEuropewiththesupportofEuropeaninterestedparties.

37%ofCSDpartnershipswerefoundwithoutoutputatallintermsofthecriteriaapplied4.

Another formof partnerships iswhat is called public‐private partnerships (PPP’s), “aformofgovernancethatpools theresourcesof thevariouspartners toprovidecollectivegoods” such aswater service. There is a great deal of controversy surrounding thesekindsofpartnerships5.Transformativepartnerships:manyofthestructuralanswersliewellbeyondthelimitsof anyGovernment, Companyor other interestedparties’ own influence, in particularwhen addressing the nexus food‐water‐energy‐raw material‐climate‐poverty. “Multi­companypartnershipswithgovernmentsandotheragenciesthereforebecomeimportantifthebusinessistrulytohelptakealeadintheecologicaltransition.ThePPPsconsideredtoday are not the same sort of public­private­partnerships that became popular in the1990’s in the water sector whereby a private firm works on a water service deliverycontract forapublic­sectorutility. Insteadnew formsofPPPs seem to engendermoreasenseofpartnershipatthestrategiclevelbetweenmultipleprivate­sector,civil­societyandgovernmentplayers–anactiondialoguetotackleacommonresourceproblemfacingallof them and which is ultimately the responsibility of the host government to create aframeworkfor”6.TheEuropeanInnovationPartnerships(EIP)initiatedbyDGResearchand Innovation are a very interesting approach from this perspective. The WorldEconomicForumisexploringamechanismtoACT,amarriageoffact‐basedAnalysisandmulti‐stakeholderCoalitionbuilding leading toawater‐sectorTransformationprocessin a country that was keen to engage in such novel cross‐sector, public‐private‐civilactivity.7The proposals below do not address the ‘public‐private partnerships’ between onepublicauthorityandacompany,asdefinedintheexistingguidelinesdevelopedatUN,OECD and EU levels. The proposals are focused on multi‐stakeholder partnershipsbasedon"sharedvalue"8,anewdefinitionofthenotionofperformance9,newformsof"transparency","dialogue","cooperation"and"partnerships"fora"fair"and"inclusive"transition.Thisisafantasticsourceofinnovationsandconsequentlyofprosperityandabundance!ThreemainreasonsasunderlinedatRio+20are:

systemicchanges

3SWPResearchPaper2012.GermanInstituteforInternationalandSecurityAffairs.MarianneBeisheim.4 Public‐Private Partnerships for Sustainable Development. Emergence, influence and legitimacy.Chelthenham2012,PhilippPattberg.5SWP.6WaterSecurity.Thewater‐food‐energy‐climatenexus.TheWorldEconomicForumWaterInitiative.7 Water Security. The water‐food‐energy‐climate nexus. The World Economic Forum Water Initiativep233.Seeaswellasthe‘DavosInitiative’principlesp236.8Creating sharedvalue.MichaelE.Porter,ProfessoratHarvardUniversity, andMarkR.Kramer, seniorfellowoftheCSRinitiativeatHarvard’sKennedySchoolofGovernment,co‐foundedFSG.9ThePerformanceEconomy.WalterR.Stahel.EdPalgrave.SecondEdition,2010.

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fullscaleandmassivechanges value chainmanagementwhich requires a paradigm shift in theway business

workswith an increasing number of companies having to co‐operate,with theneed of multi‐stakeholder approaches, keeping value chain partnerships inEuropetoreducedisruptions.

Thiswas the themeof theConference ofLeaders, Champions andPioneers of SustainableDevelopmentandGreenEconomythattookplaceinBrusselson21December2011withthesupportoftheFrenchEcologyMinistry10.Theavenueexploredattheconferencefocusedon‘sharing’tobedonesimultaneouslyinthreecloselyinterconnectedfields:sharingofnaturalresources,sharingof financial resources andsharingofknowledge.AtourDecember2011conferenceweidentifiedthreecategoriesofsuchmulti‐stakeholderpartnerships:

knowledgepartnerships standard‐settingpartnerships servicepartnerships.

5.TransformativepartnershipsAs far as the business sector is concerned, the outcomes of the Rio+20 CorporateSustainabilityForumaremoreinterestingthantheOfficialConferencefinaldeclaration.Theyaddress‘transformativesolutions’11.Transformationchallenges:

Cooperationatvaluechainisadriver Businessneedstobepartofaninclusiveworld Marketalonecan'tdelivertheprotectionofthecommons.

Transformativemeans:

Systemicissue Corecompetencesofallpartnersarecomplementary Appropriatesetofpartnersandtrust Buildingpartnershiptoscaleupandreplicate.

At the December 2011 conference we defined transformative partnerships as"permanent cooperation between state actors and non‐state actors that aim tomakecollectivegoodsavailableandcontribute to sustainabledevelopment in thecontextofpovertyeradication".

Transformativepartnershipswillbekeytodesigninganintegratedsystemformanagingthenexuswater‐energy‐food‐rawmaterial‐climate‐povertyandrelatedchallenges.Suchpartnershipsshouldprovidenewmechanismsforcross‐institutionalcollaboration.

Transformative partnerships offer good prospects for being learning institutions andgenerateeco‐innovation.

10Forfurtherinformation,seewww.epe.be11Rio+20CorporateSustainabilityForum.OverviewandOutcomes. Innovation&Collaboration. PublicPolicyRecommendations.CommitmentstoAction.21June2012.

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TransformativepartnershipsareontheUNagendainparticularforsectorssuchas:• Waterstewardship(fromsitetoareaofinfluence)• Food• Cities• Buildings.

Transformativepartnershipsarefocusedonsystemicchange:

Follow‐up to a Meeting at Davos Groups of Companies and groups of publicauthorities

MeetingbetweenBanKimoonandUnileverCEO LaunchingofUNbusinesspartnershipservice.

Keytrendsandgaps:

Pacetooslow Large‐scalePPPneeded.

Toaccelerate:

Focusinvestmentonkeyareasandnewinnovativefinancingmechanism Incentivestoshareknowledgebetweencompanies,opensource Qualitycontrol Newengagementmodel Model board driven, Board’s fiduciary duty should include corporate

sustainability12.UNpartnershipserviceplatformforUN&business:themajorneedsare:

Anareafordialogueonsharedvalues Therightpartnershipmodel Anaccountabilityworkingsystem.

Coordination and glue: a Task force of 16 companies andUNDPhas been establishedafterDavos2010.AReporthasbeen launchedat theUNGeneralAssembly2011.ThePartnershipservicehasbeenlaunchedatDavos2012withtheinvolvementofUnilever,KPMG,Novonordisk,UNDP,etc.:

8guidingprinciples Mission:buildingonUNrole NeedforUNandbusinesstoworktogether Themes:Child,energyforall,etc.

TaskForceObjectives:

Createsharedvalues Buildpartnerscapacityandaneffectivecollaborationmodel Strengthencoherenceandintegrity.

Fourservices:

Integrityandduediligence,therightpartners SupportLife cyclepartnership, data, glue, accountability execution,monitoring,

evaluate

12CorporateSustainabilityForumreport,page25.

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Understand,thelearning Buildcapacity,notgovernancestructure.

Thechallengesare:

Resultsframeworkisneeded Investmentandtiming Collaborationinclusiveness connectingsupplyandusers(energy) Newregulationforgettingprivateinvestment Companiesmanagement:fromCEOcommitmenttoboardengagement Incentivesandrewarding.

6.PartnershipsandtheGreenEconomy“Notocapitalismandthegreeneconomy.YestoaBenVivirSociety.”ThisbannerattheSummit of the Peoples and the difficulties that EU civil society groups members ofCONCORD had with their counterparts in non‐EU countries are a major signal:sustainabledevelopment isaboutagood life forall societyandagreeneconomy.Thepartnershipsshouldreflectthisagendainanintegratedmanner.HowtoaddresstogethertheeliminationofextremewealthandpovertywasaddressedatRio+20sideeventsandthis‘jointapproach’isinteresting.Rarelysofarwerethetalksaboutbothextremewealthandpovertyandtheirinterconnection,betweencountriesaswell asbetweengroupswithin society.This seems to change. Inclusivegrowthwithinthe green economy, through social mobility and social justice, will become veryimportant.Thereisaneedforspecialindicatorsrelatedtotherighttocommongoods,accessandaffordability.Green economy. What is progress? A key question to move forward addressed inparticularby theGreenEconomyCoalition13.Theeconomy isnotworkingandtippingpointsarecloser.There isaneedtoreaffirmmarketgovernancebyethicsandhumanrights in shaping our future and Green economy. How do we get there? It is aboutleadership at State andCommunity levels (cities aswell as community of faiths). Keydecisionsregardinginvestmentswhicharecriticalinshapingourcollectivedestinyhaveto be taken. There is a need for establishing a framework for justice for all and forconfronting the greed economy. Thismeans capital control, rules and regulations forbanks,financecontrol,atransactiontaxandstatebudgetcoherence.AtourDecemberconference2011weunderlinedthattobeinnovative,efficientaswellastoscaleupandacceleratethetransitiontowardsagreeneconomyinthecontextofpoverty eradication, partnerships themselves should continually evaluate theirperformanceand implementrelevantchanges.Criteria tomeasure theeffectivenessofindividualandcollectiveeffortsshouldbedesigned.

TheconclusionsofRio+20andespecially§58reflectaverystronglackofsupportfrommanyUNMembersforthegreeneconomyapproachproposedbytheUNandsupportedbytheEU.Thebestwaytodesignaconfidence‐buildingprocessandtomoveforwardis13TheGreenEconomyPocketbook.Thecaseforaction.

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to get partnerships to the next level inmany sectors in order to demonstrate that agreen economy strategy in the context of poverty eradication and sustainabledevelopment works and meets the requirements defined in §58. This is whypartnershipsareneededinsectorssuchas:

Water Agriculture Procurement Trade Investment Energy Cities Resourceefficiency.

7.TrustAsstatedbyPierreSané,PresidentofImagineAfricaInternationalattheGlobalCompactevent,"thepresenteconomicandfinancialcrisisisprimarilyacrisisofvaluesandgreed,the rules of engagement have changed, business should lead by example, human rightsshouldbepartoftheDNAofcorporationsandcriticalgeneofsustainability".Trustneedstobebuiltwithinsociety,whileasenseoffrustrationisgrowing.Weneed:

toempowerpeopletogettosharedvisionandgoals toidentifycomplementarycompetences todemonstratetransparencyandintegrity,predictability, tosecureresponsibilityandaccountability.

Partnerships shouldmeet and theUNConventiononPartnerships should refer to thenineprinciplesforagreen,fairandinclusiveeconomy–thenewsocialcontractfortheeconomy–asproposedbytheGreeneconomyCoalition14:

TheSustainablePrinciple TheJusticePrinciple TheDignityPrinciple TheHealthyPlanetPrinciple TheInclusionPrinciple TheGoodGovernanceandAccountabilityPrinciple TheResiliencePrinciple TheEfficiencyandSufficiencyPrinciple TheGenerationsPrinciple.

8.ActionPlan2012­2022atUNlevelThelegacyofRio+20shouldnotbelimitedtothefinaldeclarationwhilethesideeventswerefullofinnovativeapproachesandexcitingdevelopmentsintermsofpartnerships.ThisiswhytheoutcomeofRio+20willbeaddressedhereattwolevels:

14ibidem.

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How to bring ‘partnerships’ to the next level, building on the successful sideeventsandinitiativeslaunchedatRio+20?

Should the UN envisage new approaches giving more recognition totransformativepartnerships?

WeshouldexploreifandhowEuropeanscanbuildastrategyfor2012‐2022intwosteps:

AUN‘ConventionFramework’ 2015 forPartnershipsbetweenMarketActorsto advance the Green economy in the context of sustainable development andpoverty eradication. Such a Convention would link the SDG’s process withpartnerships.

AUNSummitofPartnershipsin2022.TherearefivemajorargumentsinfavourofaUNConventiononPartnershipsbetweenMarketActorsoftheGreenEconomy:

TheRio+20conferenceconclusionsdonotaddresspartnerships. The conference conclusions provide no leverage to secure the scale effect and

massivechangesneededtoacceleratethetransition The value of the ‘green economy in the context of the poverty eradication’

propositioncanbebestdemonstratedthroughpartnerships A Convention would create a framework for the implementation of the

SustainableDevelopmentGoals AConventionwouldmakemajormarketactors,privateandpublic,accountable.

AtourDecember2011conferencewestressedthatsincetheultimateresponsibilityforproviding citizens with key basic needs (food, shelter, water) and key governanceservices lies with the State, Recipient Countries and Donor Countries should ensurefrom the outset the monitoring and evaluation of the partnerships for sustainabledevelopmentthattheysupportinanopendialoguewithallinterestedparties.Wealsoagreed that partnership efficiency requires responsibility and accountability of publicandprivateactors, transparency, inclusivenessandfairness, inparticularbecausepartofcivilsocietyfightingagainst‘privatizationofmultilateralsystem’seespartnershipsasanenemy(WaterStewardshipAlliance).Partnerships along the value chain are needed but they will not work without anaccountabilitysystemforeachpartnerinthechain.Thevaluechaininvolvesprivateandpublic actors. Naturally, although we are all market actors, this accountability systemmustnotapply toeveryonebutonly focuson thosemarketactorswhichhaveastrongleverageeffectinthevaluechain.Thismeansprivatemarketactorstogetherwithpublicmarket actors which, apart from their legislative power, have leverage relating to themarket economy, such as public procurement or investment. These public authoritieshave binding duties in relation to the common good and to public goods, hence theimportance of the objectives in the field of green or sustainable public procurement.Anotherpointisthefactthatinadditionto‘buyers’or‘investors’,theseactorsmayalsobe‘communitiesofagentsofchange’ thatcanact throughtheir levers inorder tomobilizebuyersandinvestorsandcreatetrust.

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These public and private market actors of partnerships towards a green economy canaccelerate the major transition needed if they are able to do so and this would be thepurpose of the Convention‐framework to design a Collective Accountability SystemicReviewSystem(CASRS)toenter intoadialoguewithstakeholdersandreport totheminorder to make progress towards sustainable development. The CASRS system shouldinvolve:(i)majorpublicbuyers(publicprocurementfromgovernments,citiesandregions,forexample)andprivatebuyers(throughtheirpurchaseofproducts&services,includinginthefinancialandadvertisingfields,ortheguidelinesthattheyimposeontheirsuppliers),(ii) both public and private financial institutions, (iii) the major groups (in the UNframework)andlarge‘communities’orsocietalorganizationswhicharealsostakeholderson the market or may have an impact on the market or on trust (the community ofsignatoriesofCDP15,PRI,networksofcitiesandregions,universityandcollegenetworks,TVchannels,press,religious16andphilosophicalcommunities,majorNGOs,bloggers,etc.).Despitepositivedevelopmentsandshiftingtrends,corporatesustainabilityaspracticedtodayisinsufficient–aquantumleapisneeded.ThisiswhyweneedleveragesuchasaConventionwithrewardingmechanisms.There aremultiple issues at stake: ensuring a scale effect for the green economy nichemarketswhile creating a framework for greater transparency and traceability, changingperformancecriteriaandhavinganintegratedapproachwithinthevaluechain–hencetheimportanceof the conceptsofcontributivedemocracy17, responsibility about the "bindingcapacity to act"18 and transformative partnership. The objective is also to reintroduce anumber of topics in performance criteria such as common goods, collective rights, thesustainabilityofproducts,sustainableconsumptionpatternsandalong‐termperspective.8.1.ResourcesharingforagreeneconomyinthecontextofpovertyeradicationSharingresourcesinthreefields(sharingnaturalresources,sharingfinancialresourcesandsharingknowledge)isneeded.Itimpliesapositiveandevenoptimisticvision,inspiteofthehugechallengesahead.Thispositivevisionshouldbedevelopedalongthetriplelinesof"adesire for growth", in keeping with a philosophical approach: to grow in terms of ourcapacity to manage complexity, to grow in terms of human awareness of ourinterdependencyandwhat itbringsasnewformsof freedomandabundance, togrowinourprosperity,ethicsandjoyoflife.Anewvisionisalsotakingshapewithregardtoa"lessself­centredindividual,betterawareofinterdependencies",the"me­us"19.Sharingnaturalresourcesshouldbebasedonaleapconcerningalltypesofinnovation:technology, business model, use patterns. There is therefore an essential link to beestablished with the sharing of knowledge and innovation. This process no longeroccursalongaNorth/South linebutalsoalongaSouth/SouthandaSouth/North line.15 CarbonDisclosure Project, a community of investors asking businesses to report on three themes: climatechange,waterandwood.16Anexamplewouldbetheleverageeffectofalltherelevantmarketplayerswhichwouldimplementtheroadmapproposedtothem,eitherthrough"TheIslamicprinciplesrelatingtotheconservationofthenaturalenvironment"byKingAbdulAzizUniversityinDjedda,1983,orthroughtheCaritasinVeritateEncyclicalbyBenedictXVI,2009.17AphrasefromGillesBerhault,PresidentofComité21France.18MyriamRevaultd’Allonnes,ibidem,p37.19Laré­alliance.Ilyaunesuiteànotresociétéindividualiste,FrançoiseBonnal.Ed.Payot,2008.

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Such an investment in a low‐carbon, resource‐efficient society actually implies adifferentmanagementoffinancialresources.In the three fields of natural resources, financial resources and knowledge, ‘sharing’involves a new cooperation method, new partnerships. Ethical rules within theframework of globalization are essential. Ethics and efficiency come together tounderlinethatlying,afairlyharmlessprobleminalimitedgroup,becomesascourgeinlargesocialorganisationssuchastheoneweneedfororganizing‘sharing’.Thisiswhysteering, control and reporting issues togetherwith rewarding schemes are crucial atEuropeanandgloballevels.Likewise,thenewtoolswhichtheinformationsocietyputsatourdisposalhavedeeplychangedthecontextoftheempowermentissuesince1992,whensendingasinglemailwas a whole adventure. The Internet revolution and its aftermath, such as newapproacheslike‘crowd‐sourcing’(openoutsourcing),theroleplayedtodaybybloggersastrustbuilders20andotherB2Bs,havetransformedthemarket.Thewholepotentialtosteerittowardssustainabledevelopmentisstilllargelylyingfallow!8.2.Sharedvalues"Equityistheoverarchingdemandfromthecivilsocietyworldandmustbethefoundationof the collective global response. We call for equity within generations, equity acrossgenerations,andequitybetweenhumansandnature.For thisweneed to revertback tomaking individual and societal decisions based on equity and ecological factors andnotmerelyonmonetaryfactors"21.A Natural Capital Declaration signed by 37 banks, investment funds and insurancecompanieswaspresentedatRio+20.This initiativewascriticizedby theSummitof thePeoples.ReadersshouldbeawarethatfinancialexpertsworkingontherestructuringoftheFinancialIndustryinEuropearesharingthesamestrongopposition.This isatimewhenresponsiblecitizens,withintheframeworkofaconcertedapproachamongmarketactorsofpartnershipstowardsagreeneconomyaboutthedefinitionandindicators of performance, should push for the introduction of shared values, businessmodels, rewarding schemesand the issuespertaining toanewhumanist synthesis forafairer,morefraternalworld:(i)interdependencyandsolidarity,oneplanet=onecountry;(ii) recognition of needs and the universal human access rights to healthy food, waterservices,energy,shelterandparticipation;(iii)environmental footprint, thewater‐food‐energy‐rawmaterials‐climatenexus; (iv)protectionofcommongoods; (v)consumptionpatternsandlifestyles;(vi)sharinglandresourcesandmanagingterritories;(vii)sharingfinancialmeans;(viii)sharingimmaterialresourcesandknowledge.8.3.GlobalGreenGrowthInRio+20theDanishGovernmentannouncedthe3GF2012 eventof9‐10October2012inCopenhagen on Resource Efficiency and Growth. The Global Green Growth Forum is apartnership between the governments of Denmark, Korea and Mexico, leading global20Summeruniversity2011,ACIDD.21People’sTreatiesattheRioSummitofthePeoples.

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corporations and international organizations. Special attention will be directed at public‐privatepathwaysofactiontothecommitmentsonsustainablegrowthofRio+20andtheG20.Giventheissuesatstake,theRio+20follow‐upprocessshouldbeanopportunityfortheworldandforEuropeforfocusingandmobilizingcitizens’energyontheleversfornewgrowthandnewabundancewhichareactuallymadepossiblebysharingaswellasbythevisionofacirculareconomy,thecapacitiesoftheinformationsocietyandthenewbusinessmodels,includingfinancialones.Sharingthisnewimpetus–thisdesireforgrowth–andthepotentialities forthisnewabundanceisanadditionalreasonforanewmechanismtobecreatedfor"sharingideas,ambitions, problems and resources". This would be the role of the UN Convention‐framework and its collective accountability systemic review system (CASRS) forreporting and dialogue that should be established at world and regional levels(includingEuropean level). Launchingadraft conventionon theaccountabilityof thepublicandprivatemarketactorsinvolvedinthesepartnershipsforagreeneconomyinthecontextofpovertyeradicationshouldbeabletocreateavirtuouscircle.8.4.Convention­frameworkFivePillarsThe Convention – withmonitoring, reporting, verification and rewardingmechanisms–shouldbebasedonfivepillars:1. Objectives: Specific ‘sustainable development goals’ and timetable, includingsustainable consumption goals, which would incorporate and expand theMillenniumObjectives.Thesustainabledevelopmentgoalswouldbebasedon:(i)recognition of universal human needs and the access rights to food, water,services, energy, shelter and citizens’ information and participation, (ii) newaccountingrules.

2. Accesstoinformationwithinthenewcontextoftheknowledge‐basedsocietyandacooperationproject.

3. Reporting and rewarding including finance, performance rewarding schemes(bonuses, stock options, etc.) in connection with environmental, social andgovernancecriteria(ESG).

4. Monitoring and verification:a systemwhichwouldbe supportedby governments,UN agencies and environmental agencies andwould be provided in particular bysustainabledevelopmentratingagencies.

5. Dialogue:avirtuouscirclewouldbestartedandamplifiedbydialogue–onthebasisofreports–amonginterestedparties.ItwouldbeinitiatedbytheHigh­LevelForumatUNlevel, theResourceEfficiencyPlatformatEUlevelandtheopencoordinationmulti‐stakeholderplatformswithin thevaluechain inspecificareas/fieldssuchasthe energy‐food‐raw materials‐water nexus, oceans, transports, finance, urbandevelopment,sustainablelifestylesandyouth.

Amongthesepartnerships,manyarethosewhichbelongtoanewgenerationofmulti‐stakeholder partnerships, involving in particular buyers, investors and consumers asactors in the green market economy. In order for these partnerships to avoid beingaccusedofreflectingthe“privatizationofmultilateralorganizations”whileenablingthe

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massive, large‐scale change needed to accelerate the transition towards a newdevelopmentmodel,aframeworkisrequired.This framework should constitute a ‘system’ with a vision, objectives, indicators, areportingmechanismandlabelling/certification.ThedraftFrameworkConventionpresentedheredoesnotcover:

public‐privatepartnershipsbetweenapublicauthorityandprivate company intheareaofinfrastructuresandservices.Thesearecoveredbyguidelines,alistofwhich isannexedtothisdocument.TheConventionproposedhereaimsto linkmulti‐stakeholderpartnerships (not thepublicsectoror thebusinessworld) toSDGsandestablishadialoguesystemamongstakeholdersatworldlevel.

reporting by the governments of UN Member States, except when these actwithin the frameworkof greeneconomypartnershipson themarket asbuyers(publicprocurementofgoodsandservices)orinvestors(statecompanies).

ThedraftFrameworkConventionwouldprimarilyfocusonthesetting‐upofareportingand cooperation system among the green economy and good life for all multi‐stakeholder partnerships in the context of sustainable development and povertyeradication.Itspurposewouldbetofixtheconditionsforaccesstopublicfundingandcreate synergies between the multi‐stakeholder partnerships that contribute to theimplementationofparagraphs13,55,58,71and73oftheRio+20Declarationandapplytherecommendationsinparagraphs46and47.8.5.The2022SummitofPartnershipsIn1992and2012theOfficialUNConferenceCenter,theBusinessForum,theConferenceofCitiesandtheSummitofthePeoplestookplacefarfromeachotherasparalleltracks.By2022,theSummitofPartnershipsshouldbetheplaceunitingtheseparalleltracks.InviewofsuchaGlobalSummitofPartnerships, targetswouldbe fixedsuchas100,000certified partnerships for a green economy in the context of sustainable development andpoverty eradication. They would be listed in a background document to the GlobalPartnershipSummitandtheircontributiontotheSustainableDevelopmentGoalsassessed.TheSummitwould reviewhow thesepartnershipshavebeenakey leverage to large‐scaleimplementationofparagraphs55,58,71and73oftheRio+20Declaration(2012)andappliedtherecommendationsinparagraphs46and47.Partnershipswhicharegathered together in “baskets”wouldhavededicatedsessions.The basket that brings together the highest number ofmillions of participants is the“youth”basket.TheUNSecretaryGeneralwouldopentheSummit.

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9.Expectedobstacles–HardlessonsThe failure of the campaign towards a UN Convention on Companies SustainabilityReportingisfulloflessons.According to the Global Compact, CSR is reaching a criticalmass and "Greenmust beclean"(anti‐corruption).ThisisprobablywhysomeUNMembersandsomepartsofthebusinesssectordidnotwantany‘convention’onSDcompanyreporting.WeshouldexpectthataUNConventiononPartnershipswillfacethesameopposition.ThisiswhyseveraloptionsshouldbeconsiderediftheUNConvention‐frameworkfailssuchas:

AconventionlimitedtointerestedGovernments GuidelinesratherthanaConvention.

In our opinion, as we all know that the perspective of such a UN Conventionagreement reached by consensus is limited, a group of Front­Runner Countries,including theEU, shouldannounce right from the start,priorto thenegotiations,thattheywouldgoaheadintheformofa‘reinforcedcooperation’betweenFront­RunnerCountries,shouldaUNconsensusnotbereached.10.EUAstheUNConferencehasnotagreedonapartnershipmonitoringschemeandcorporatesustainabledevelopmentreporting,theconclusionsbelowareimplementingatEUleveltheEUproposalsinviewofRio+20andtherecommendationsoftheGermanreportabove.10.1.AEuropeanCASRSThe initiative to establish a Convention at United Nations level should be relayed byregional initiatives such as those which the European Union should take. Morespecifically, the EU should have its own CASRS managed by the Transition PlatformannouncedbytheCommission22.Withtheeventsgeneratedbythedebtandeurocrisis,theEuropeanUnionhaslostagreatdealofitslustreandinternationalinfluenceintheface of emergent countries; it has a number of assets to turn to good account atinternationallevelifitcan–fasterandbetterthantheothers–proposenewgovernancemodelsthatcanfosterthesharingofthethreeabove‐mentionedtypesofresources.ThisiswhyweneedaEuropeanCASRS.At our December 2011 conferencewe required public private partnerships involvingEuropeans,aperformanceassessmentthatistransparentandcanbemonitored,onthebasis of agreed indicators in line with EU targets and commitments and the ParisDeclaration on Aid effectiveness which calls for a ‘managing for results’ approach indevelopmentcooperation.22EUResourceEfficiencyTransitionPlatform–Communicationconcerning theroadmaptoa "Resource‐EfficientEurope",COM(2011)571final.

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TheEUCommissionhas identified five areas forEurope’spresence inRio side events(with key goals, targets backed up by figures, win‐win‐win demonstration) and theEnvironmental Council has adopted conclusions requesting "concrete actions withagreed timeframes. The EU should design a EU partnership strategy in support to thegreeneconomy in thecontextof sustainabledevelopmentandpovertyeradication in thefollowingareas":

Accesstoenergy Waterefficiency Ecosystemserviceandsustainablelandmanagement Oceans/seas Resourceefficiency,waste.

Asfrom2013,theEUshouldinitiateanannualevaluationatEUlevelofpartnershipsforsustainable development related to these five priority areas identified by theCommission (see above) and the nexus water‐food‐energy‐raw materials‐climatechange‐povertywith the participation of the EU andMember StatesDonor Countries,Companies,TradeUnionsandNGOs.Such a joint performance evaluation should be designed in the form of a cycle andshould address: (i) funding, eco‐innovation and new technologies, (ii) sustainableconsumption, (iii) value chain management, (iv) how to scale up and replicate pilotprojectsthathavereceivedapositiveevaluation,(v)coordinatedmeasurestobuildupstatecapacitiesinthepartnercountries.Otherpovertyandenvironment issuesareor shouldbeaddressedaswell in termsofpartnership areas related to sustainable management and restoration of naturalresourcesinthefieldof:

Food Nutrition Sustainableagriculture Fisheries Forestry Sustainablecities Chemicals.

Climatechangestrategiesshouldnotbeseparatedorexcludedfromtheforwardagenda.The 5 areas identified for Europe’s presence in Rio and the natural resource fieldsidentified are all materially impacted by climate change, and much of the strategiesalreadyputinplacebygovernmentsforclimatechangearedirectedattheseissues.10.2.ABlueEconomypilotAfter theEuropeandtheGlobalBlueEconomy laboratory(2December2011)with theparticipationofDGMARE,anewmeetingon3April2012addressedwhetherandhow,beyondaEUregulationonCompaniesSustainabilityReportinginitiatedbyDGInternalMarket, a ‘convergenceof initiatives’ shoulddesignanOceansCollectiveAccountabilitySystemicReviewSystem(CASRS)tosecurea‘responsibleuseoftheseas’tobefacilitatedbyorwiththesupportofDGMare.

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Onlyafewmajorcompanieshavegoalsabouttheresponsibleuseoftheseas(unlikee.g.on carbon footprint). This needs to change andmandatory Environmental Social andGovernance (ESG) reporting related to responsible use of the seas should be in place.Fromthispointofview,wewelcometheforthcomingproposalsofDGInternalMarketrelating to extra‐financial reporting and integrated reporting. This system shouldaddressresponsibleoperation,safety,saferdrillingandenvironmentalmanagement.Itshould also address the nexus relating to oceans as food‐energy (oil, gas, renewableenergy)‐rawmaterialandworkingresponsiblyinallregionsoftheworld.Furthermore,wewelcomethepledgesmadebyEuropeanCommissionerMrsDamanaki,in Barcelona on 2 April 2012 for the efficient involvement of companies and otherstakeholderswithmarineresearch, innovationinsupportingtheBlue,GreenEconomyandcreationofnewjobs.WewelcomethePrincipleforResponsibleInvestmentsinitiativetofostersustainablefisheriespoliciesandincreasetransparencyregardingcompanies’seafoodsourcingpractices, calling for increased transparencybycompanies into theirfishsourcingpolicies,coveringbothwildandfarmedfish.Butthequestionofresponsibleinvestments and the seas should be extended to the other Blue economy business asoffshoreexploration,etc.To stimulate activities and investments in relation with a Blue Economy, theCommissionshouldlaunchapilotDynamicMulti­stakeholderJointReviewSystembasedon sustainable goals for oceans and the role of the Financial Community and largecompanies:

(i) Blue Economy Targets: Sustainable Development Goals and timetables,includingSustainableConsumptionGoals

(ii) AccesstoInformation:accesstoinformationshouldbesecuredandaEuropeanOceansResponsibleManagementObservatoryshouldbeinplace

(iii) Reporting and Rewarding: Companies reporting, rewards (i.a. bonus)linked with Environmental, Social and Governance (ESG)performances

(iv) MonitoringandVerification:(projectsscreeningforseveralsectorssuchassustainable fishing, shipping, dredging, etc.) on the basis of 'OceansResponsibleInvestments/CompaniesGuidelines'

(v) BlueEconomyMulti­stakeholdervaluechainopen­coordinationplatform.A ResponsibleUseoftheSeasDynamicMulti­stakeholderJointReviewSystemshouldbelaunchedby2014duringtheGreekEUPresidency,afterconsultationwiththeinterestedpartiesduring2013.10.3APactofCompaniesandanewregulatoryframeworkTheEUshouldconsidera‘EUBusinessPact’builtupontwomainelements:

A EU regulation on large‐scale companies sustainability reporting & ESGperformanceandrewardingschemestobelinkedwiththeSDG’s

TheRio+20CorporateSustainabilityForumrecommendationsandcommitmentstoactionputinpracticeatEUlevel.

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Public‐Private Partnerships between the European public authorities and companiesshouldbelinkedwiththeCompaniesBoardsignatureoftheEUBusinessPact.ItissuggestedtohostaPEP21think‐tankmeetingonthisproposalduring2013.10.4 A Covenant of Banks, Insurance Companies and Pension Funds and a newregulatoryframeworkAHigh‐LevelConference isorganisedbyGLOBE‐EUandGLOBE‐Europe23,associationsof Members of the European and National Parliaments, with EPE and the confirmedsupport of theMinisters of Finance of, i.a., Belgium and Finland. The Conferencewillprovide a unique opportunity for European Commissioners, European Ministers ofFinance, Members of the European Parliament and Member States Parliaments,FinancialSector representativesatpublicandprivate levelsandcivil societyactors todebateontherequiredinitiativestomobilizeprivatecapitalinsupporttoEurope2020ObjectivesandtolinkitwiththepostRio+20agenda.TheEUfacesanannualfundinggapofbetween€150‐250billionformeetingtheEU20‐20‐20 targets and between €250‐350 billion for meeting the more ambitious 30%emissions reduction scenario. An ambitious green investment programme associatedwith Europe 2020 and a Roadmap 2050 which could generate as many as 6 millionadditional green jobs should be funded by the private sector (by far the largestcomponent)makingcommerciallyprofitableinvestments.However,theeconomicandfinancialarchitectureunderpinningEurope’stransitiontoalow‐carbon, resource‐efficient economy is incomplete. For example, current policieshave yet to reduce the risks around low‐carbon infrastructure to the point whereinvestmentwillflowatthescaleneeded.Theresultisanunwillingnesstoinvestbytheprivatesectorinmanycriticallow‐carbonareas.Investor caution is amplified by the overall economic slowdown and the impact offinancial regulation and deficit reduction on the availability of private and publicinfrastructurefinance.ThisnotonlyaffectsEurope’sabilitytomeetitsclimatetargets.Inthemediumtermitcouldhaveseriouseconomicandenergysecurityimpacts.ThereforethereisanurgentimperativetounderpinEurope2020goalswithaseriesoffinancialreformswhichwillencouragelong‐terminvestmentsandenableprivateinvestmenttoflow.With the new European treaty putting very strict limits on structural deficits – andgrowing caution among private investors – we believe that decisions made in 2012could be critical in determining whether Europe can deliver the scale of investmentimpliedbythe2050roadmaps.FinanceMinistershaveseveralmeansattheirdisposalasmembersoftheECOFINandatnational level to encourage a long‐term investment strategy. It should lead to a

23Tentativedate:January23rd,2013.

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EuropeanCovenantofBanks,InsuranceCompaniesandPensionFunds,inspiredbytheCovenantofMayors,andanewregulatoryframework.10.5PartnershipswithResourceEfficiencyAgenciesandClubsofEnterprisesFromtheworkshophostedby theEuropeanEconomicandSocialCommitteeandEPEwith the support of ADEME on 5 June 2012, it became very clear that Clubs ofEnterprisessuchasthoseinplaceinFrance,GermanyortheUnitedKingdom,willingtobeactiveinthegreeneconomyfieldatgloballevelandbepartofpartnerships,shouldexchange best practices, if not coordinate their efforts. This should be the themeof anewthink‐tankmeetinghostedbyEuropeanPartnersfortheEnvironment.10.6TheEUSustainableDevelopmentStrategynextsteppost2014Truly sustainable forms of governance? Existing governance mechanisms at Europeanleveldonotmeettheneeds.Newopencoordinationmechanismsareabsolutelyessential,particularly in four areas: (i) the financial architecture, including the taxation system,long‐terminvestmentconditionsandEUexposuretocarbon‐intensiveinvestmentswhichmayconstitutesystemicrisksforthefinancialsystem;(ii)theobjectivessetatworldandEuropean levels (public authorities and companies), especially in the fields of climate,energy,efficientresourcemanagement,sustainableconsumptionandecologicalfootprint;(iii) strengtheningresilience inEuropeand themanagementof systemicrisks linked tothewater‐energy‐food‐rawmaterials nexus and the scarcity problems for a number ofnatural resources and climate risks; (iv) innovative public/private/civil societypartnershipsamongEuropeansaswellasbetweenEuropeansandtheotherregionsoftheworld,forwhichaneco­systemforinnovationshouldbeestablished24.Thisshouldbethecase, in particular, for cooperation between the UE and – say – China, just as forpartnershipsonpovertyandgreeneconomy inseveralareassuchasaccesstoelectricityviarenewableenergies.New processes have been introduced tomobilize stakeholders, such as theGrenelle del’Environnement in France, theCovenants in theNetherlands and thePact ofMayors atEuropeanlevel.IntheEUtheCommissionhaslaunchedpartnershipsforinnovation.Butitwon’tbeenough!IthasbeenproposedtotheEuropeanCouncilPresident,theEuropeanCommission President and the EUDanish Presidency, on themodel of the Grenelle del’Environnement in particular, that a negotiation for aMulti­stakeholder Agreement forGoodLifeforAllinanInclusiveEuropeshouldbelaunched.Thisproposalshouldbeagainontheagendaforthepost‐2014EuropeanelectionasthenextstepindesigningtheEUSustainableDevelopmentStrategy.If we are serious and determined to accelerate the transition, if we want to give afollow‐up to the Rio+20 Declaration (§85) roadmap green economy and sustainabledevelopmentand if theEuropeanUnionwants toaccelerate the implementationof itsown roadmap, the Europe 2020 Strategy, a CASRS will be the driving force for

24SeetheopinionoftheResourceEfficiencyAlliance(www.epe.be)aboutthepartnershipon"Innovationand EfficientWaterManagement" launched by the European Commission under the flagship initiative"InnovatingEurope"(2/12).

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acceleration, the place for dialogue around a new Societal Pact25 made necessary byshifting to a low‐carbon, resource‐efficient economy and responding to the financialcapitalismcrisis.TheCASRSwillalsobetheplacewherenewobjectiveswillemergefromthegrassrootswhilebeingthe lever forsystemic innovationsandredirectingfinancetowardsa long‐term perspective as well as the lever for shared values and new prosperity. It is nolongerenoughforustobecontentwithdoingwhatwecanonourlocalpatch,workinginsilosorwithintheframeworkofabilateraldialogueorabusiness/NGOpartnership26.Wemust be part of an open­coordination system linking initiatives from the top andthosefromthegrassroots,wemustbepartofthemanagementofthewholevaluechain,both upstream and downstream… without forgetting the weakest link. We are allinterdependentandwemust learn tomanage this interdependency inorder tobettershare out the three types of financial, natural and knowledge resources, (re)creatingabundanceandensuringprosperityforall.

25 See for exampleWorld in Transition. A Social Contract for Sustainability. German Advisory Council onGlobalChange,2011.26 This is why it is becoming so important to be involved in a value chain, a type of participationencouragedbytheCASR.

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Annex.Public‐PrivatePartnerships(PPP)guidelines.

• EC2003_GUIDELINESFORSUCCESSFULPUBLIC–PRIVATEPARTNERSHIPShttp://ec.europa.eu/regional_policy/sources/docgener/guides/ppp_en.pdf

• GuidelinesforeffectivePublicprivatePartnership(PacificEconomicCooperationCouncil)http://www.pecc.org/resources/doc_view/1404‐guidelines‐for‐effective‐public‐private‐partnerships

• GUIDEBOOKONPROMOTINGGOODGOVERNANCEINPUBLIC‐PRIVATEPARTNERSHIPS_UNEconomicCommissionforEuropehttp://www.unece.org/fileadmin/DAM/ceci/publications/ppp.pdf

• GovernanceinPublicPrivatePartnershipsforInfrastructureDevelopmentDraft,UNhttp://www.unece.org/fileadmin/DAM/ie/Wp5/docs/guidelines.pdf

• OECDPrinciplesforPrivateSectorParticipationinInfrastructure,

http://www.oecd.org/dataoecd/41/33/38309896.pdf

• AGUIDEBOOKONPUBLIC‐PRIVATEPARTNERSHIPININFRASTRUCTURE,UNESCAPhttp://www.unescap.org/ttdw/common/TPT/PPP/text/ppp_guidebook.pdf

• CommissionCommunicationonPublicPrivatePartnerships‐Frequentlyaskedquestionshttp://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/509&format=HTML&aged=0&language=EN&guiLanguage=en

• TheEPECPPPGuide,EuropeanPPPExpertiseCentre(ECandEIB)http://www.eib.org/epec/g2g/index.htm