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Press Release
Embargoed until 00:01 GMT Wednesday 17th July 2002
Groundbreaking Report Challenges Conventional Wisdom on Role of Business in Emerging Markets
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First large-scale study of evidence from developing countries proves that emerging market companies gain financially from sustainability
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The greatest evidence of benefits were from cost saving and productivity, revenue growth and market access
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Sustainability is not a “one size fits all” endeavor; business size, type, and location help determine where biggest business gains can be made
LONDON, WASHINGTON DC AND SAO PAULO, 17 July 2002
The role of business in sustainable development is a key element in the coming World Summit on Sustainable Development in Johannesburg. A report published today overturns conventional wisdom by showing that it does pay for businesses in emerging markets to pursue a wider role on environmental and social issues.
Available at
Developing Value Report
.
Developing Value: The Business Case for Sustainability in Emerging Markets
challenges the myth that sustainability is only for rich companies in developed nations, and does not apply to the private sector in the emerging markets. Based on more than 240 real-life examples in over 60 countries, the study analyzes the ‘business case’ for sustainability in emerging markets – the opportunity for businesses to achieve benefits such as higher sales, reduced costs, lower risks and enhanced reputation from better corporate governance, improved environmental practices, and investments in social and economic development.
Highlighting examples from businesses in Africa, Asia, Central & Eastern Europe, the Middle East and Latin America the report refutes the argument that the business case holds only in developed markets and pinpoints the many opportunities available to diverse businesses. The case studies cover all types of companies, ranging from a small Latvian dairy to an eco-tourism outfit in Peru to an aluminum smelter in Mozambique.
Examining information across six business success factors and seven sustainability factors, the report finds the greatest evidence for business benefits in emerging markets in the areas of cost reductions, productivity, revenue growth and market access. On the sustainability side, environmental process improvements and human resource management represent some of the most significant opportunities for creating value.
Developing Value
aims to help business people in emerging markets identify these opportunities to increase profits by making progress on sustainability – particularly owners and managers who are relatively new to sustainability. The report finds that every kind of company can find benefits but the best opportunities will depend on the particular drivers, circumstances and priorities of a business. It also provides tools to help managers assess and construct their own case.
The report also calls on other stakeholders like government, NGOs, business customers and investors to strengthen the business case by putting pressure on companies with poor performance and rewarding those which make improvements in their sustainability activities.
www.sustainability.com/developing-value
provides a searchable database of all the case studies analysed for the report and further information, including background details, best practice examples, sustainability tools and sources of expertise. As the business case is constantly evolving, reflecting changing societal expectations,
Developing Value
will continue to track these trends.
The report is the result of a unique collaboration between the International Finance Corporation (IFC), the private sector arm of the World Bank Group; the strategy consultancy SustainAbility; and the Ethos Institute in Brazil.
According to Peter Woicke, executive vice president of IFC, “The report makes clear that sustainability is not an all-or-nothing, one-size-fits-all proposition; that sustainability can increase all elements of the triple bottom line and contribute to the public goods realm rather than simply adding economic costs; and that sustainability is a pragmatic pursuit, not an ideological exercise. In short, this report makes the case that sustainability is about increasing opportunities, not limiting them.”
Peter Zollinger, executive director of SustainAbility adds, "It is often said that the sustainability debate lacks substance.
Developing Value
fills this gap, providing practical examples of how companies have benefited from good environmental and social practices."
CONTACT INFORMATION:
For further information on the report, or for press copies and/or an interview with an author, please contact:
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Kavita Prakash-Mani
SustainAbility
11-13 Knightsbridge
London SW1X 7LY
UK
T: +44-207-245-1116
F: +44-207-245-1117
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Corrie Shanahan
IFC
2121 Pennsylvania Av. NW
Washington DC 20433
USA
T: +1-202-473-2258
F: +1-202-974-4384
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Nelmara Arbex
Ethos Institute
Rua Francisco Leitao, 469
Conj. 1407-CEP
Sao Paulo, SP 05414-020
Brazil
T/F: +55-11-3068-8539
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NOTES:
1. SustainAbility is the longest established think tank and consultancy dedicated to developing the business case for sustainable development. Based in London and New York, the company has pioneered in such areas as green consumerism and corporate reporting. It coined the term ‘triple bottom line’ to describe the emerging challenge for 21st century business.
www.sustainability.com
2. The International Finance Corporation is the private sector arm of the World Bank Group. Its mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses.
www.ifc.org
3. The Ethos Institute of Business and Social Responsibility is an association of small and large Brazilian companies from a range of sectors that are keen on developing their activities in a socially responsible manner. This is achieved through a permanent process of evaluation and improvement
.
www.ethos.org.br
4. The World Summit on Sustainable Development to held in Johannesburg in August 2002 will bring together governments, NGOs, businesses and others to focus on improving people's lives and conserving the natural resources.
www.johannesburgsummit.org
