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*Karl P. Sauvant, PhD*
*Resident Senior Fellow*
*Columbia Center on Sustainable Investment*
Columbia Law School - The Earth Institute, Columbia University
435 West 116th St., Rm. JGH 825, New York, NY 10027
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"Emerging Markets and the International Investment Law and Policy Regime",
"Sustainable FDI for Sustainable Development", "Towards an Investment
Facilitation Framework: Why? What? When?", "Beware of FDI Statistics!",
"Towards an Indicative List of FDI Sustainability Characteristics", “The
Importance of Negotiating Good Contracts", "A New Challenge for Emerging
Markets: the Need to Develop an Outward FDI Policy”, "China Moves the G20
toward an International Investment Framework and Investment Facilitation", "The
Next Step in Governance: The Need for Global Micro-regulatory Frameworks",
and "The Evolving International Investment Law and Policy Regime: Ways
Forward" *are* available at
https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=2461782 and
http://www.works.bepress.com/karl_sauvant/.





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哥伦比亚大学国际直接投资展望中文版都可以在我们的网站查看:http://ccsi.columbia.edu/
publications/columbia-fdi-perspectives.
*Columbia FDI Perspectives*
Perspectives on topical foreign direct investment issues
No. 227  June 4, 2018
Editor-in-Chief: Karl P. Sauvant ([log in to unmask])
Managing Editor: Marion A. Creach ([log in to unmask])
*MNEs and the Sustainable Development Goals: what do first steps reveal?*
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=f57e287974&e=763bcf158c>
* <#m_-2896646852278939720__edn1>
by
Rob van Tulder and Jan Anton van Zanten** <#m_-2896646852278939720__edn2>

Lisa Sachs, Jeffrey Sachs and Nathan Lobel argued that companies “need to
look beyond profits” because they are increasingly evaluated on their
contributions to society.[1] <#m_-2896646852278939720__edn3> This argument
primarily emphasizes ethical and reputational considerations for
multinational enterprises’ (MNEs) involvement in sustainable development.
In this view, MNEs should mitigate risks by minimizing “doing harm.”[2]
<#m_-2896646852278939720__edn4> This argument can be complemented by
looking at sustainability challenges as an opportunity for companies to “do
good” and create positive change.

In other words, companies need to look beyond *short-term* profits.
Identifying *longer-term* opportunities that can reap a sustainable profit
is intimately related to diverse areas of sustainable development. Such
development is defined as serving the present and future needs of the
(growing) world population, rather than only serving the demands of
existing (effective) markets. The challenge then becomes to redirect
business models in a sustainable direction: from a basis of present profits
to a source for future profits; from a narrow view of short-term
shareholder value to a broader view of business serving the needs of people
and the planet. The 2015 Sustainable Development Goals (SDGs) provide an
excellent framework for developing business models founded on positive
societal contributions.

The SDGs also provide the most coherent sustainable development framework
to date. They break with the prior sustainable development discourse that
particularly stressed the role of governments as donors. The UN agreed that
companies’ efforts are critical in reaching the SDGs. The business logic is
clear: achieving the SDGs can unlock US$12 trillion in business
opportunities annually.[3] <#m_-2896646852278939720__edn5> Can a joint
global agenda trigger the focused attention of MNEs, and are their initial
responses aimed at risk mitigation or opportunity identification?

MNEs’ first steps are supportive. Many were actively involved in the design
of the SDGs. In 2016, 87% of CEOs believed that the SDGs provide an
opportunity to rethink approaches to sustainable value creation.[4]
<#m_-2896646852278939720__edn6> International organizations like the Global
Reporting Initiative and the Global Compact are developing tools to support
companies to “materialize” this ambition, i.e., integrate it in their
strategies.[5] <#m_-2896646852278939720__edn7>

In the authors’ study of the nature of frontrunner MNEs’ initial engagement
with the SDGs, the targets supporting SDG 16 (peace, justice and
institutions) received the highest scores, showing that companies
acknowledge that they cannot do business in a failing society. But they
mainly envisaged their contribution to this SDG through internal,
governance-oriented policies. Indeed, most of the targets that MNEs
actively engage with can be implemented throughout their (value-chain)
operations, such as reducing pollution. More importantly, companies
currently focus primarily on SDG sub-targets that “avoid harm.” For “doing
good” targets, such as providing public goods like infrastructure,
multi-stakeholder partnerships are critical, yet MNEs’ engagement is low.
Amongst the MNEs studied, European MNEs engage with substantially more SDG
targets, making them more supportive for the SDGs’ integrative ambitions.
MNEs in industries with greater negative social and environmental
externalities are more involved with SDG targets that help them avoid doing
harm.

These patterns point to a relatively conservative use of the SDGs as a
future-oriented agenda. The potential of the SDGs to move away from
“avoiding harm” and use the SDGs to “do good” (and reap longer-term
benefits) is not yet achieved. This does not imply that companies do not
want to use the SDGs to align their business models with societal needs. It
shows how difficult it is to unlock the transformational potential of the
SDGs.

Three lessons can be drawn for policy makers:

   - The SDGs that companies engage least with have high degrees of “public
   good” and “doing good” characteristics; the success of these SDGs thus
   depends on a more active stance of governments and requires additional
   (smarter) financial arrangements. The Addis Ababa Action Agenda is an
   example of shaping innovative development-financing solutions.
   - SDGs that require cross-sector partnerships tend to receive less
   attention, which jeopardizes the SDGs’ ultimate achievement; governments
   and civil-society organizations should enhance corporate involvement in the
   SDGs, for example, by inviting companies to partner for SDGs.
   - The relevance of the SDGs for future-oriented corporate strategies
   remains fragile though. It has to be considered whether MNEs’ relatively
   defensive use of the SDG agenda will hamper their effectiveness in
   achieving the SDGs’ transformational ambition. Devising policies for
   unlocking future business opportunities seems imperative.

The SDGs intend to “transform our world.” Selecting and partnering with
companies that are most interested in “doing good” is most likely to
achieve this.

------------------------------
*** <#m_-2896646852278939720__ednref1> *The Columbia FDI Perspectives are a
forum for public debate. The views expressed by the author(s) do not
reflect the opinions of CCSI or Columbia University or our partners and
supporters. Columbia FDI Perspectives (ISSN 2158-3579) is a peer-reviewed
series.*
** <#m_-2896646852278939720__ednref2> Rob van Tulder ([log in to unmask]) is
Professor of International Business at the Rotterdam School of Management
(RSM), Erasmus University Rotterdam, and Director of the Partnerships
Resource Centre; Jan Anton van Zanten ([log in to unmask]) is a PhD candidate
at RSM and a Consultant at Steward Redqueen. This *Perspective* is based on
a longer-term research project on the adoption of the Sustainable
Development Goals into the strategic portfolio of global 500 companies. The
authors distributed a survey among 350 European and North American “Global
500” companies asking for the extent and manner of their contribution to
SDG targets, concentrating on SDG targets that are most relevant to
companies (59 out of 169 SDG targets). These targets were characterized as
aiming at “doing good” or at “avoiding harm,” to capture corporate
intentions. 81 complete responses were received and included in the
analysis. See Jan Anton van Zanten and Rob van Tulder, “Multinational
enterprises and the Sustainable Development Goals: an institutional
approach to corporate engagement,” *Journal of International Business
Policy *(forthcoming). The authors would like to thank Nathalie Bernasconi,
Sol Picciotto and an anonymous reviewer for their helpful peer reviews.
[1] <#m_-2896646852278939720__ednref3> “Corporations need to look beyond
profits,” *Columbia FDI Perspectives*, no. 208, September 11, 2017.
[2] <#m_-2896646852278939720__ednref4> For an elaboration, see R. van
Tulder with A. van der Zwart, *International Business-Society Management:
Linking Corporate Globalization and Responsibilities* (London: Routledge,
2006).
[3] <#m_-2896646852278939720__ednref5>AlphaBeta, “Valuing the SDG prize,”
January 2017.
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=855c358310&e=763bcf158c>
[4] <#m_-2896646852278939720__ednref6> Accenture and UN Global Compact,
“Agenda 2030: a window of opportunity,”* The UN Global Compact-Accenture
Strategy CEO Survey 2016*
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=8094d04fa6&e=763bcf158c>
.
[5] <#m_-2896646852278939720__ednref7> GRI, UN Global Compact and WBCSD,
“The guide for business action on the SDGs.”
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=621dcdbbdd&e=763bcf158c>
*The material in this Perspective may be reprinted if accompanied by the
following acknowledgment: “Rob van Tulder & Jan Anton van Zanten, ‘MNEs and
the Sustainable Development Goals: what do first steps reveal?,’ Columbia
FDI Perspectives, No. 227, June 4, 2018. Reprinted with permission from the
Columbia Center on Sustainable Investment (**www.ccsi.columbia.edu
<http://www.ccsi.columbia.edu>**).” A copy should kindly be sent to the
Columbia Center on Sustainable Investment at **[log in to unmask]*
<[log in to unmask]>*. *

For further information, including information regarding submission to the
*Perspectives*, please contact: Columbia Center on Sustainable Investment,
Marion A. Creach, [log in to unmask]

*Most recent Columbia FDI Perspectives*
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=4873c79272&e=763bcf158c>

   - No. 226, Khalil Hamdani, “Investment facilitation at the WTO is not
   investment *redux*,” May 21, 2018
   - No. 225, Michael J. Enright, “To succeed in China, focus on interests
   rather than rules,” May 7, 2018.
   - No. 224, Axel Berger, “What’s next for the investment facilitation
   agenda?” April 23, 2018.

*All previous FDI Perspectives are available at
**http://ccsi.columbia.edu/publications/columbia-fdi-perspectives/
<http://ccsi.columbia.edu/publications/columbia-fdi-perspectives/>**. *

*Other relevant CCSI news and announcements*

   - *Save the Date: September 27-28, 2018:* This year, CCSI’s Annual
   Columbia International Investment Conference (CIIC) is on “Multinationals
   in the Age of Sustainable Development: New Thinking on the Role of
   International Investment Agreements.” The Conference, taking place
   alongside the 73rd Session of the UN General Assembly in New York, will
   build on a multi-year effort to identify guiding principles and practical
   approaches for aligning international investment treaties with the
   Sustainable Development Goals (SDGs). Additional information will be posted
   shortly on our website here
   <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=6fa6ad79a7&e=763bcf158c>
   .
   - CCSI is still accepting applications on a rolling basis for
   our upcoming executive training: Investment Treaties and Arbitration for
   Government Officials
   <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=eabb807d6d&e=763bcf158c>
(July
   30-August 9, 2018). The program is designed to equip participants with the
   necessary skills, analytical tools, and frameworks to address relevant
   challenges and opportunities, and to encourage a rich dialogue about best
   practices from around the globe. *More information about the training,
   including the brochure and application, is available at the link above.*
   - In January 2018, The *Yearbook on International Investment Law and
   Policy*
   <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=db908b450a&e=763bcf158c>*2015-2016
   <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=8cfabfbf09&e=763bcf158c>
*was
   released*.* The *Yearbook* monitors current developments in
   international investment law and policy, focusing (in Part One) on trends
   in foreign direct investment (FDI), international investment agreements,
   and investment disputes. Part Two, then, looks at central issues in the
   contemporary discussions on international investment law and policy. This
   volume includes a chapter by CCSI's Lisa Sachs, Lise Johnson and Jesse
   Coleman, with CCSI Fellow Kanika Gupta. *For more information, please
   see our website here
   <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=ea03deb2f6&e=763bcf158c>.*

Karl P. Sauvant, Ph.D.
Resident Senior Fellow
Columbia Center on Sustainable Investment
Columbia Law School - Earth Institute
Ph: (212) 854-0689
Fax: (212) 854-7946
*Copyright © 2018 Columbia Center on Sustainable Investment (CCSI), All
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