UN Global Compact

Global Compact in Ukraine

The 10 principles of GC
» Human Rights

» Principle 1

» Principle 2

» Labour Standards

» Principle 3

» Principle 4

» Principle 5

» Principle 6

» Environment

» Principle 7

» Principle 8

» Principle 9

» Anti-Corruption

» Principle 10

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Principle 8

What is "environmental responsibility"?

In Chapter 30 of Agenda 21, the 1992 Rio Earth Summit spelled out the role of business and industry in the sustainable development agenda as:

"Business and industry should increase self regulation, guided by appropriate codes, charters and initiatives integrated into all elements of business planning and decision-making, and fostering openness and dialogue with employees and the public."

What is the business approach to environmental responsibility?

Applying the highest standard of responsibility across all operations is not only smart risk management, it can also help cultivate opportunity. By establishing a reputation for environmental stewardship, a company can have greater access to sensitive markets and resources. Consumers, more and more, are demanding to know the consequences of their buying decisions. So too are local civil society groups demanding adequate protection of local resources. By becoming known, because of actions rather than words, as a responsible corporate citizen companies will continue to cultivate their license to operate and open new markets others are denied. To be sure, industries where product differentiation is minimal (petroleum) present unique challenges as the incentive to be responsible is not as high. However, increasingly examples of companies poor record of environmental responsibility are costing them and their reputations millions, if not billions of dollars in lost opportunity and legal and reputational damage.

The Origins of Principle 8

"Environmental threats resulting from the accelerating trends of urbanization and the development of megacities, the tremendous risk of climate change, the freshwater crisis and its consequences for food security and the environment, the unsustainable exploitation and depletion of biological resources, drought and desertification, and uncontrolled deforestation, increasing environmental emergencies, the risk to human health and the environment from hazardous chemicals, and land-based sources of pollution, are all issues that need to be addressed."

Malmц Ministerial Declaration, 31 May 2000

The 1992 Rio Earth Summit acted as a 'wake-up call' for many parts of society, not least of which the business sector. For the first time, a comprehensive group of stakeholders gathered together to discuss the issues raised by the patterns of industrialisation, population growth and social inequality around the world. The conference highlighted the true fragility of the planet and in particular it drew attention to three concerns:

the damage occurring to many natural ecosystems,
the threatened capacity of the planet to support life in the future, and
our ability to sustain long-term economic and social development.

In the ten years since "Rio", the imperative for business to conduct its activities in an environmentally responsible manner has not lessened. On the contrary, as recent analyses of the "state of the planet" indicate, despite progress in some areas (e.g. ozone-depletion, air-pollution in many developed regions, or advances towards reducing greenhouse gases under the Kyoto Protocol) the overall trends are negative and much work still remains to be done. Scientists and experts are reporting disturbing global trends concerning not only vital aspects of our life support system, but also the foundation of our social development system.

Given the increasingly central role of the private sector in global governance issues, the public is demanding that business manage its operations in a manner that not only enhances economic prosperity and promotes social justice, but also ensures environmental protection in the regions and countries where it is based. Through Principle 8, the Global Compact provides a framework for business to take forward some of the key challenges made over 10 years ago.