SPIEF-2019: FAO supports private and public sector collaboration in achieving global development goals

The Sustainable Development Goals (SDGs) are at the core of the global agenda with three major interrelated and intertwined elements: economic growth, social integration, and environmental protection. To achieve all of the 17 universal and comprehensively transformative goals, close and efficient interaction between business and government is an undeniable must.

To what extent are Russian businesses ready and capable of a meaningful interaction with government institutions in implementing the 2030 Agenda for Sustainable Development adopted by all United Nations Member States in 2015? Are governments willing to support the private sector in promoting the SDGs and related initiatives, programmes and projects?

These key issues were raised during the special session on “Collaboration Between Private and Public Sectors for Achieving SDGs“ held on 7 June within the framework of the St. Petersburg International Economic Forum (SPIEF). The session, organized with the support of FAO and Mars, Inc., featured a keynote presentation by Roberto Ridolfi, Assistant Director General of FAO’s Programme Support and Technical Cooperation Department.

“The 2030 Agenda recognizes that the achievement of the SDGs, including the eradication of poverty (SDG1) and hunger (SDG2) requires a transformation of food systems: we have to change and improve the very way that food is grown, stored, transported, traded, sold and consumed to make these processes more efficient, sustainable and fairer,” Mr Ridolfi said.

“Hence, the SDGs present an opportunity to create a new development model for our economies, aiming not only at stimulating domestic growth, but also at responding to major universal challenges, such as rapid urbanization, digital transformation and sustainable development.”

FACT: Public funding alone is not enough to achieve the Sustainable Development Goals (SDGs), and development and international financing institutions must collaborate more strategically to leverage private investments. The achievement of the SDGs requires leveraging additional finance of USD 2.5 trillion per year, the bulk of which is expected to come from the private sector.

“Achieving this transformation requires a substantial increase in investments in agriculture and food systems,” Mr. Ridolfi noted.

FACT: FAO estimates incremental resources of up to USD 265 billion a year are needed to end poverty and hunger by 2030. This is 0.3 percent of the average projected world income for the period.

“In order to create an investment push in countries where an increase in responsible investments in agriculture and food systems is most needed, we have to address two major challenges: capital scarcity and investment risk, Mr. Ridolfi explained. “Blended finance mechanisms, which directly address the need to catalyze private capital and de-risk investments in the agricultural sector, provide a solution in this regard.”

“States have an important role to play in enabling the private sector to actively contribute to the realization of the SDGs, he continued. “Russia has made substantial commitments in this regard, including in the context of the National Development Goals 2018-2024. In this context, the Russian Federation aims to reduce poverty, increase wages and support high-productivity export-oriented businesses in the basic sectors of the economy, including in agro-industries.”

“Achieving these goals includes the creation of an enabling environment – institutional, legal, policy and the right incentives frameworks – that are conducive to attract responsible investments along agricultural supply chains,” Mr. Ridolfi specified.
“The Russian Development Goals specifically aim to increase the performance and export-orientation of Russian agro-industries. This will require a successful integration of Russia in global food markets. This can be done by successfully addressing consumer preferences, minimizing reputational risks and increasing demand for Russian products,” Mr. Ridolfi pointed out.

“In this context, compliance with different strategies will have to be ensured: maintaining and improving food quality, stimulating export growth and achieving sustainable development for all,” he added.

“The SDGs are no longer an exercise for GR or PR but one of the major preconditions of an efficient model of economy,” Ilya Lomakin-Rumyantsev, representative of the Center of business management at Skolkovo who moderated the session, said. The process of Russian businesses getting involved in the SDG agenda is gaining momentum. “What is in high demand today is proper, precise and articulate guidance on how to achieve the SDGs.”

Originally, the UN appealed to business as an ally with emphasis on the progressive agenda stipulated in the SDGs, their social-ecological dimension, Marina Vashukova, Executive Director, Association National Network of the Global Compact, noted. Today, the main task in Russia is to scale up the transfer to a new model of doing business and to tackle the often “mental hindrances” like the skeptical attitude of some business entities to worrisome forecasts of is ahead if we fail to effectuate the principles of sustainable development.

“The world of tomorrow will be shaped by what we do today,” Allyson Park, Vice President for Corporate Affairs, Mars, Incorporated, underlined. Mars has achieved one of the SDGs goals by reaching a zero level waste landfills. In Russia, this achievement was recorded three years ago and concerned 10 company’s facilities in five regions. Simultaneously, the company has significantly reduced the consumption of water, gas and electricity.

“It’s all about how we involve local communities,” Ms. Park added. Mars launched an enlightening campaign in St. Petersburg under the slogan “Clean city starts with you” targeting young children of 8-9 years old and capitalizing on the support of the local schools teachers’ community.

In order to implement the SDGs, “business should step up and take the leadership role”, Ms. Park underlined accentuating the need for collaboration and partnerships. “Everyone has role to play… We can’t leave today’s challenges for tomorrow’s generations.”

The idea was propped up by Ilya Lomakin-Rumyantsev who invoked the metaphor of the Thanksgiving turkey, generously fed and pampered but not knowing that it will not last forever.

As a wrap-up conclusion of the session, it should be noted that facts and figures show that the share of Russian business entities making commitments to specific SDGs has been on the increase. Nonetheless, it is common for “captains of industry” and the service sector to demand a more pro-active stance on the part of the government. Judging by the discussion at the session, both sides are eager to find common ground, upgrade mechanisms of cooperation and move forward to ensure successful implementation of the SDGs.

7 June, Saint Petersburg, Russian Federation