The Asian Development Bank’s (ADB) Board of Directors has approved a new long-term corporate strategy, Strategy 2030, that sets out the institution’s broad vision and strategic response to the evolving needs of Asia and the Pacific.
“Asia and the Pacific has made great progress over the last half century in poverty reduction and economic growth, but there are unfinished development agendas,” said ADB President Mr. Takehiko Nakao. “Under Strategy 2030, we will combine finance, knowledge, and partnerships to sustain our efforts to eradicate extreme poverty and expand our vision towards a prosperous, inclusive, resilient, and sustainable region.”
ADB’s aspirations are aligned with major global commitments such as the Sustainable Development Goals, the Financing for Development agenda, the Paris Agreement on climate change, and the Sendai Framework for Disaster Risk Reduction. Given the size of Asia and the Pacific, achieving such commitments will depend critically on the region’s success.
Strategy 2030 recognizes that the ambitious global development agenda must be tailored to specific local circumstances. ADB will strengthen its country-focused approach, promote the use of innovative technologies, and deliver integrated interventions that combine expertise across a range of sectors and themes and through a mix of public and private sector operations.
ADB will continue to prioritize support for the region’s poorest and most vulnerable countries. It will apply differentiated approaches to meet the diverse needs of various groups of countries: fragile and conflict-affected situations, small island developing states, low-income and lower middle-income countries, and upper middle-income countries. Across these country groups, ADB will also prioritize support for lagging areas and pockets of poverty and fragility.
Infrastructure investments—particularly those that are green, sustainable, inclusive, and resilient—will remain a key priority. At the same time, ADB will expand operations in social sectors, such as education, health, and social protection.
ADB’s support will focus on seven operational priorities: (i) addressing remaining poverty and reducing inequalities; (ii) accelerating progress in gender equality; (iii) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; (iv) making cities more livable; (v) promoting rural development and food security; (vi) strengthening governance and institutional capacity; and (vii) fostering regional cooperation and integration.
At least 75% of the number of ADB’s committed operations (on a 3-year rolling average, including sovereign and nonsovereign operations) will promote gender equality by 2030. ADB will ensure that 75% of the number of its committed operations (on a 3-year rolling average, including sovereign and nonsovereign operations) will be supporting climate change mitigation and adaptation by 2030. Climate finance from ADB’s own resources will reach $80 billion for the period 2019 to 2030. A new corporate results framework—expected to be ready in mid-2019—will include more targets for ADB’s other operational priorities.
To support the seven operational priorities under Strategy 2030, ADB will expand and diversify its private sector operations to reach one third of ADB operations in number by 2024. “We will expand our private sector operations in new and frontier markets, such as fragile and conflict-affected situations and small island developing states. We will also support more public-private partnerships,” said Mr. Nakao.
ADB’s private sector operations will help improve environmental, social, and governance standards; provide financing that is not available from the market at reasonable terms; improve project design and development outcomes; and mitigate perceived risks. In addition to innovative infrastructure, they will increase support for agribusiness, and support social sectors such as health and education through private ventures.
ADB will continue to be a reliable financier and catalyzer of finance. “A key measure of our success will be the volume and quality of additional resources we mobilize on top of our own financing,” Mr. Nakao added. ADB targets a substantial increase in long-term cofinancing by 2030, with every $1 in financing for its private sector operations matched by $2.50 in long-term cofinancing.
The institution will also work closely with its developing member countries to produce the most relevant knowledge products and services. It will proactively engage in research, provide high-quality policy advice, strengthen countries’ institutional capacity, and expand knowledge partnerships.
As it strives to be stronger, better, and faster, ADB will pursue a dramatic modernization of its business processes by taking advantage of available technology. It will expand its products and instruments, strengthen human resources, and accelerate its digital transformation. ADB is committed to diversity in the workforce, including promoting gender balance and a respectful work environment for all. ADB will institute a “One ADB” approach, bringing together knowledge and expertise across the organization. It will collaborate with civil society organizations in designing, implementing, and monitoring projects.
In preparing Strategy 2030, extensive consultations were carried out with a wide and representative group of stakeholders across ADB’s membership, leading development experts, and civil society organizations.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 67 members—48 from the region. In 2017, ADB operations totaled $32.2 billion, including $11.9 billion in cofinancing.
Demand for Circular Economy Solutions Prompts Business and Government Changes
To truly tackle climate goals, the world must transform how it makes and consumes. To support this effort, circular economy initiative Scale360° has expanded its reach from 2 countries to 20 in 2021, taking its unique approach to circular innovation and collaboration to cities, regions and countries around the world, triggering key changes for businesses and governments in how circularity is prioritised and managed.
Scale360°, established in 2019, leverages innovation ‘hubs’ to bring together leaders in science, policy and business to trigger circular change. They use Scale360°’s unique, tested methodology – the Scale360° Circular Innovation Playbook – to deploy Fourth Industrial Revolution technologies to rethink consumption and production, helping to transform the pipeline of future innovations.
The rapid growth of Scale360° demonstrates the growing demand for guidance on how to enable circular change and collaboration. Highlights from 2021 include:
● Circular Shapers: This initiative, launched this year, mobilised young change-makers in 12 countries to transform their cities into centres of circular economy innovation. Circular Shapers are competitively selected from the Global Shapers Community, a network of young volunteers in 448 city-based hubs around the world.
● Germany: Scale360° Germany is designing a consumer campaign to educate consumers on the environmental impact of ‘white goods’ (e.g., washing machines, etc.) and empower consumers to lengthen the lifespan of their appliances. This project has been developed in collaboration with Kearney and the Circular Valley.
● Singapore: This new program will improve the conditions for circular scalability in Singapore by engaging Singapore’s Deep Tech community and accelerating circular innovation collaborations between startups and corporates. Launched September 2021, this program was developed in collaboration with SGInnovate, a government-backed Deep Tech ecosystem builder and investor.
● Kenya, Bangladesh and India: In these countries, the 2030 Water Resources Group is leveraging Scale360° methodologies, tools and partnerships for scaling up circular economy solutions to improve water resource management in urban, industrial and agricultural sectors. 2030 Water Resources Group is a public-private-civil society partnership hosted by the World Bank Group.
● Argentina: McKinsey.org’s flagship initiative Rethinking Recycling – in partnership with Red de Innovación Local (RIL), a network of 200+ Argentine cities’ municipal decision-makers – will apply tools from Scale360°’s Circular Innovation Playbook to transform Argentine cities’ municipal waste management at scale, aiming to deliver substantive volumes of recyclables and compostables to industry, while also enhancing job opportunities and cost savings for cities.
This momentum comes in addition to the continued evolution of existing programmes. This year, the UAE established a dedicated UAE Circular Economy Council comprising ministers and C-level representatives across public and private sectors. The newly formed cross-ministerial council aims to ensure circular thinking across government is prioritised not only within the Ministry of Climate Change and Environment, but also across the Cabinet, the Ministry of Economy, the Artificial Intelligence Office and local government entities in each emirate. The council serves as a board of advisors for Scale360° in the UAE, and provides a platform for government, business and civil society leaders to share best practices in circular innovation.
“With these changes in place, we can create truly resilient systems that strengthen economies while pursuing the latest innovations,” said His Excellency Dr Abdullah Belhaif Al Nuaimi, UAE Minister of Climate Change and Environment and Chair of the UAE Circular Economy Council.
Chile’s SOFOFA hub, with the support of the country’s Ministry of Environment, is convening the country’s largest industry groups together to accelerate circularity by integrating value chains within sectors such as mining, energy, pulp and paper, food and beverages and more. Additionally, entrepreneurs, innovators and civil society members are actively working together to collaborate and build new circular business models at this critical time for the environment and economies.
“Circularity as a concept is still relatively nascent in this region, despite the critical role it plays in helping us achieve our sustainability targets. This is something we hope to change as part of the global Scale360° network, by integrating circular innovation into our mission of building Singapore’s Deep Tech economy,” said Dr Lim Jui, CEO, SGInnovate.
Such efforts pave the way for collaborations between cities, countries and regions and much-needed system-wide change. “System-wide change requires a system-wide re-thinking of collaboration,” said Shannon Bouton, President and CEO, McKinsey.org. “We are always partnering with those who are best placed to drive and scale change for maximum efficiency and impact.”
The wider adoption of Scale360° principles sets the stage for a more circular future as leaders rethink innovation. Added Scale360°’s Global Lead, Helen Burdett: “With every city, country and region, we are building a flywheel for change.”
More Than 2.5 Billion Trees to be Conserved, Restored, and Grown by 2030
Companies from across sectors are working to support healthy and resilient forests through the World Economic Forum’s 1t.org trillion tree platform. With the launch of 1t.org’s global pledge process this September, over 20 companies have pledged to conserve, restore and grow more than 2.5 billion trees in over 50 countries by 2030.
The trillion trees goal does not replace net-zero emission programmes – business and industries still need to decarbonize to meet our climate targets. 1t.org was launched to support the growing momentum around nature-based solutions, to mobilize the global restoration community and to empower anyone who wants to play a part. The community shares best practices, promotes responsible forestry practices, and scales solutions to have global impact.
Nicole Schwab, Co-Director, Platform to Accelerate Nature-Based Solutions, World Economic Forum said: “We are at a tipping point. It is our collective responsibility to leave behind a planet that is habitable for future generations. The private sector has a key role to play in bringing their expertise to the table and investing in natural climate solutions, such as restoration. It is encouraging to see more and more companies embracing this needed transition towards net-zero, nature-positive business models.”
The initial wave of companies making global pledges to 1t.org include: Amazon, APRIL Group, AstraZeneca, Brambles, Capgemini, Clif Bar, Daterra Coffee, Eni, HP Inc., Iberdrola, Mastercard, Nestle, PepsiCo, Salesforce, SAP, Shell, Suzano, Teck Resources Ltd., tentree, Travelers, Unilever, UPS, VMware, and Zurich Insurance Group. Their pledges can be viewed here as of Thursday 23 September at 16:15 CEST.
“Pledging to 1t.org was a natural fit for UPS,” said Nikki Clifton, president of social impact and The UPS Foundation. “UPS’s commitment to plant more than 50 million trees by 2030, in alignment with the United Nations Sustainable Development Goals, is promoting global equity and well-being for underserved communities in cities and developing countries worldwide. It’s another example of UPS’s 543,000 employees moving our world forward by delivering what matters.”
Companies also work collaboratively through the 1t.org Corporate Alliance to drive impact by committing to leadership, action, integrity, transparency and learning. The alliance allows companies to jointly tackle common challenges and connects companies with 1t.org’s community of innovators, partners and regional chapters.
“1t.org Corporate Alliance discussions have given us valuable insights into how other companies are devising and managing their own restoration and conservation projects. The platform provides a great space for mutual learning and ideas,” said Craig Tribolet, Head of Sustainability Operations, APRIL Group. “1t.org also allows us to share updates on our own journey to champion thriving landscapes, as part of our production-protection approach, and on the progress we have made against our long-term sustainability commitments,” he said.
How Trees Can Play Their Part
Healthy and resilient trees and forests are one part of the efforts needed to combat climate change. Studies have shown trees can reduce urban heat island effects by up to 5°C and energy costs by $7.8 billion a year. Globally, sustainable management of forests could create $230 billion in business opportunities and 16 million jobs worldwide by 2030. From a health perspective, trees absorb 17.4 million tons of air pollutants a year, helping to prevent 670,000 cases of asthma and other acute respiratory symptoms annually. The chance of extreme wildfires occurring also decreases dramatically when forests are managed properly by, for example, growing specially-selected tree species in burned areas and using novel planting techniques for resilience to future wildfires.
1t.org encourages all corporations that have set a Paris Agreement-aligned emissions reduction target to get in touch and submit a pledge.
Lighthouse Partnerships Gain Momentum on Social Justice
Crises in climate, health and inequality are compelling organizations to align business strategies with equity and social justice values.
In a new whitepaper, Lighthouse Action on Social Justice Through Stakeholder Inclusion, the World Economic Forum, in collaboration with Business for Social Responsibility (BSR) and Laudes Foundation, shines a light on emerging corporate momentum supporting stakeholder inclusion and social justice.
Through the case studies of nine “lighthouse examples,” the report chronicles how the following companies and coalitions are establishing stakeholder inclusion models and best business practices in three key areas:
Making investments targeting impacted communities in value chains and ecosystems:
– The Resilience Fund for Women in Global Value Chains (UN Foundation, BSR, Women Win/Win-Win, Gap Foundation, PVH Foundation, H&M Foundation, the VF Foundation, and the Ralph Lauren Corporate Foundation)
– In Solidarity Program (Mastercard)
– Replenish Africa Initiative (The Coca-Cola Foundation)
Influencing public policy and speaking out as corporate citizens:
– Open for Business Coalition (39 major corporations)
– Racial Equality and Justice Task Force (Salesforce)
Applying rigorous accountability practices and sharing power with workers in supply chains and communities:
– Unilever’s Living Wage commitment (Unilever)
– Farmer Income Lab (Mars, ABinBev, Danone, Oxfam, IDH, Livelihoods Fund for Family Farming, UNDP)
– Amul Supplier Cooperative Ownership (Amul)
– Patagonia’s Implementation of Regenerative Organic Certified Standards in its Apparel Supply Chain (Patagonia)
The whitepaper outlines successes and pain points as these leading lighthouse partnerships between business and civil society strive for more meaningful participation with communities most impacted by systemic injustices. Each business is unique in its culture and path to long-term value creation, but all are committed to the belief that stakeholder primacy leads to optimal outcomes.
The time to move forward with these ideals is now, and the conclusion is clear in that, “…the crises of pandemic, protest and social disruption have created an inflection point for many companies to evaluate their corporate sustainability strategies,” said David Sangokoya, Head, Civil Society and Social Justice, World Economic Forum. “Stakeholder inclusion must be at the centre of any corporate action on equity and social justice in our unequal world…positioning business on the path towards redesigning business models that shift power and value towards stakeholder primacy.”
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