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The Latest From USCIB

September 20, 2002

 

Environment/Sustainable Development:

Johannesburg Summit’s Outcome Seen as Largely Positive

 

The U.N.’s World Summit on Sustainable Development (WSSD), which concluded September 4 in Johannesburg, South Africa, made only incremental progress on a number of issues.  For many in private industry, however, the event will be remembered as a long-overdue recognition of  the business community’s indispensable role in sustainable development.

 

 

The U.N. convened WSSD to review progress in furthering environmental, economic and social progress made in the ten years since the 1992 Rio Earth Summit. Over 20,000 people – including more than 700 representatives of the business community – took part in the summit as official delegates or observers.

 

Following over a year of difficult negotiations leading up to Johannesburg, governments reached agreement on a plan of action as well as a political declaration.  They also issued a first list of “Type 2” partnerships, which represent public-private actions in support of the summit’s goals but not requiring formal diplomatic agreement.

 

What impact will the summit have on American companies?  At the September 18 meeting of USCIB’s Environment Committee, members reviewed issues of particular interest to U.S. business, and considered next steps by the U.N. system and by the U.S. government to implement WSSD commitments.

 

Committee Chair George Carpenter (Procter & Gamble) and Norine Kennedy (USCIB), reported on the summit’s highlights.  Overall, they said, WSSD conclusions were positive, with few new targets or onerous measures.

 

Discussion centered on economic development issues, and follow-up is intended to complement the deliberations at last year’s World Trade Organization ministerial in Doha, Qatar and the U.N.’s Summit on Financing for Development, held earlier this year in Monterrey, Mexico.

 

Agreements reached in Johannesburg emphasize the importance of investment to economic growth, and call for an enabling framework for public- and private-sector commercial activity, including good governance, capacity building and market access.

 

American business positions were supported by the U.S. government, which urged voluntary partnership approaches and strengthening rule of law in developing countries, in order to attract investment and improve the implementation of environmental and social policies.

 

One area to watch is corporate responsibility, where the summit’s conclusions called for voluntary approaches and the strengthening of national rules, while also raising the possibility of new international initiatives.  Many activists had called for a binding code of conduct for multinationals.  The U.S. went so far as to announce an "Intepretive Statement" saying that the summit’s outcomes should not be read to justify the initiation of any new treaty negotiation in this area.

 

The Business Action for Sustainable Development (BASD) initiative, launched with strong support from ICC, helped focus business advocacy in Johannesburg.  BASD activities included the convening a high-level business meeting during WSSD, and the maintenance of a "Virtual Exhibit" of examples of business partnerships and technologies designed to promote sustainable development.

 

Many questions remain as to how WSSD outcomes will be implemented by governments and U.N. institutions.

 

WSSD recognized numerous voluntary partnerships to supplement the official outcomes as "Type 2" partnerships.  However, until U.N. Commission on Sustainable Development meets in 2003, how the U.N. will follow-up or monitor these partnerships remains unclear.

 

USCIB plans to organize a business seminar in New York in early December to review government and U.N. implementation plans for sustainable development policy in the year ahead.  We will also issue a more comprehensive assessment of WSSD outcomes in the coming weeks.

 

Staff contacts: Norine Kennedy and Adam Greene

 

More on USCIB’s Environment Committee

 

 





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