How is the UN supporting China’s Sustainable Development Goals and how are business leaders adapting to meet them?

Ladies and gentlemen,

I thank the Indian Association Business Council for the invitation to speak at the Leadership Talk Series. Many of you are business leaders who have already been engaged or are interested in doing business in China or with Chinese partners, but may or may not be familiar with the United Nations Sustainable Development Goals (SDGs), our priorities in China, and how business matters in the process of achieving them. Today I would like to discuss:

1. what are the Sustainable Development Goals,
2. how the UN is supporting the achievement of the SDGs in China, and what are our strategic priorities,
3. some examples of private sector engagement in the SDGs, and
4. looking ahead, why a new form of multilateralism through Public-Private Partnerships is key to addressing the global challenges we face today.

First, let me introduce you to the Sustainable Development Goals. At the heart of the 2030 Agenda for Sustainable Development adopted by all UN Member States in 2015 are the Sustainable Development Goals, or the SDGs, a collection of 17 interlinked global goals. Designed to be a "blueprint to achieve a better and more sustainable future for all", the 17 SDGs are an urgent call for action by all countries - developed and developing - in a global partnership. The SDGs recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests. The SDGs are the North Star of the international development agenda: bringing the United Nations and its Member States together.

So how is the United Nations supporting the achievement of the Sustainable Development Goals in China, and what are our strategic priorities? For over 40 years, the UN has been a trusted development partner of China and has witnessed the profound economic and social transformations that have taken place since the introduction of reforms in the late 1970s. In the four decades since, the role of the UN in China has shifted from a traditional donor to that of a partner of Government and relevant stakeholders, including business, providing technical support in line with national development priorities. As China transitions from prioritizing rapid economic growth to a more balanced pursuit of “high-quality development”, development that is innovation-driven, coordinated, green, open and shared by all – the UN in China recognizes the synergy between these priorities and the 2030 Agenda.

In response to China’s new development paradigm and following extensive consultations, the UN in China is undergoing a new cycle of cooperation with the Government of China through the UN Sustainable Development Cooperation Framework for 2021-2025 (UNSDCF). The period covered by the UNSDCF is contemporaneous with China's 14th Five-Year Plan. The UNSDCF will support China in realizing the 2030 Agenda for Sustainable Development and will help China respond to new opportunities and challenges presented in three key priority areas: people and prosperity, planet, and partnerships.

Under each priority area, we have identified specific high-level Outcomes. I want to take some time to explain Outcome 5 of the Partnership priority area and an example of our work to deliver this Outcome.

Outcome 5: China’s international financing, investments and business engagements, including through connectivity initiatives, programmes and projects, contribute to SDG attainment in partner countries.

To provide some context, China has steadily increased its international development financing and investments through bilateral and multilateral cooperation. In 2020, China’s foreign direct investment outflow reached USD 153.7 billion and became the largest in the world, covering 189 countries and regions, as 28,000 Chinese investors set up 45,000 enterprises across the globe.

Against this background, the priority for the UN in China is to leverage upon China’s international development cooperation engagements and contribute towards advancing progress on critical global agendas such as the SDGs and the Paris Agreement on Climate Change, while adding value, contributing best practices and ensuring compliance to international norms and standards.

To achieve this outcome, the UN in China’s support includes a) advising State-Owned Enterprises, Private-Owned Enterprises and Civil Society Organizations on applying the ESG (Environment, Social and Governance) principles and sustainable business models; and b) supporting regulatory authorities and national development banks in informing decision making on investment programmes to ensure that they are socially environmentally, economically sustainable and risk-informed. This support is made possible by our colleagues at UN Global Compact.

Launched by former UN Secretary-General Kofi Annan in 2000, the UN Global Compact is our flagship agency for promoting responsible business practices, and the world’s largest corporate sustainability initiative supported by nearly 16,000 corporate members from over 160 countries. During the past 22 years, UN Global Compact has assisted the private sector in finding entry points to partnerships that help accelerate the implementation of the SDGs and better engage in the Ten Principles of the UN Global Compact, including Human Rights, Labour, Environment and Anti-Corruption.

One good example of our work to deliver this Outcome is the ‘Eco Loo Box for All’ healthcare pilot project implemented by the UN Global Compact in China. Through converting cargo containers provided and designed by public and private partners, the ‘Eco Loo Box for All’ provides an affordable, replicable and eco-friendly bio-toilet solutions for people in poverty living in countries of the Belt and Road Initiative (BRI) and the world's least developed regions – contributing to various Sustainable Development Goals including SDG 3 - Good Health & Well-Being, SDG 6 - Clean Water & Sanitation, SDG 13 – Climate Action, among others.

In October 2021, the first phase of the pilot project was successfully installed and put into service in villages of Southwest China. My understanding from our colleagues at Global Compact is that local beneficiaries have welcomed the project. The second phase of the pilot project is now in incubation, aiming to be put into service in at least one country of the BRI.

This pilot project is part of a new “Action Platform on Sustainable Infrastructure for the Belt and Road Initiative to Accelerate the SDGs” set up in response to the appeal made by nearly 40 Heads of State in the Joint Communiqué of the 2nd Belt and Road Forum for International Cooperation that “we call on all market players in the Belt and Road cooperation to fulfil their corporate social responsibility and follow the principles of UN Global Compact”. If interested in learning more about this project, please get in touch with Global Compact colleagues led by Meng LIU, who is at our session today.

Today's world faces a series of tests in responding to the COVID-19 pandemic, the climate emergency, conflicts, and rising inequalities. Humanity faces stark choices as these crises continue to reverse global progress on the SDGs. It is abundantly clear that multilateralism and international cooperation are our best hope of tackling shared challenges. But achieving sustainable development requires a more networked and ‘fit for purpose’ form of multilateralism, bringing in all sectors of society from all Member States, through new Public-Private Partnerships playing a critical role.

Let me talk from personal experience. Kenya, where I served as head of the UN Population Fund and later as Resident Coordinator, faces one of the highest maternal death rates in the world. Tacking this challenge with support from the Government of Kenya, the UN family sought to break the orthodoxy by bringing in five companies: Huawei from China, Merck from the USA, GSK from the UK, Phillips from the Netherlands and Safaricom from Kenya to partner with the UN and the Government of Kenya to address maternal mortality in six high-burden counties. In less than three years, this partnership led to a one-third reduction in maternal mortality in those counties, progress which in many countries would likely take anywhere from 10 to 15 years. This modality of partnership also unlocked a USD 15 million trust fund to generate sustainable impact through the development of telehealth infrastructure. These achievements were highlighted through an invitation to the World Economic Forum in January 2017.

The potential in these forms of Public-Private Partnerships for development is unlimited. Currently, the UN in China is proposing a new SDG Partnership Platform that can leverage the experiences and resources of China to promote rural revitalization, agribusiness development and other priority areas for the SDGs, especially in Africa.

The UN in China is also exploring new opportunities to harness our convening power for public and private stakeholders to create meaningful engagement, exchange knowledge and technologies, and build synergy and coherence to achieve results.

We will also maintain our strong partnership with the Government of China. Last month, I was honoured to meet China’s Foreign Minister, H.E. Wang Yi, at a bilateral meeting. We discussed the importance of the UN-China partnership in the face of setbacks to the SDGs during a time of shared global challenges. We also discussed the proposed Global Development Initiative (GDI) and its potential to accelerate global progress in realizing the promise of the 2030 Agenda for Sustainable Development. As UN Secretary-General António Guterres said, “discussions through the Global Development Initiative can help move the needle on development progress across all countries”. I made a commitment to Minister Wang, saying that as the UN Resident Coordinator in China, I intend to marshal the full intellectual capacity of the entire UN family here in China to ensure that China’s GDI is made a global best practice to benefit the world.

But the SDGs are not simply a lofty ideal for governments but a formidable instrument for the private sector to unlock new markets and the longevity of their operations. Ultimately, sustainability is good for humanity and good for business.

Last month, I was invited to speak at the UN Global Compact Leaders Summit. I was encouraged to see that the panellists agreed that multilateralism, especially through Public-Private Partnerships, is essential for global recovery, and that business can play an important role in achieving the SDGs. The Summit attracted more than 12,000 attendees from over 160 countries, more than 10% of which were attendees from China and India. It is clear that the importance of Public-Private Partnerships and business engagement is increasingly being acknowledged by stakeholders all over the world.

I am happy to report that nearly 1000 business and non-business organizations from India and China have made a commitment to the Ten Principles of the UN Global Compact. But we need more companies and organizations to join, to commit, to act, to influence and to change course. We encourage you to take the initiative to meaningfully embed the SDGs into your business strategy and operations.

Ladies and gentlemen, I conclude by quoting a well-known Chinese proverb, “do not fail to do good no matter how petty the deed, do not engage in evil no matter how trivial the deed”. Whatever the size or scale of your business, your organization can help accelerate the SDGs. Your leadership decisions in adapting to meet the SDGs can enhance brand trust and investor support. With less than eight years left to achieve the SDGs in the Decade of Action, the UN family stands ready to support your efforts.

I hope today’s session can be a catalyst for more dialogue and action in the future to advance new collaborations and realize the 2030 Agenda.

Thank you!