The UN Global Compact is the world's largest corporate sustainability initiative. It marks two decades pushing business on human rights, labor, climate, and equality. With AI accelerating change and a multi-trillion dollar gap still standing between us and the SDGs, the pressure is on to move faster. So joining me to discuss this and more is Sandra Ojambo, CEO and Executive Director of the UN Global Compact and the UN Assistant Secretary General. Thanks so much for joining us. So let's talk first and foremost, two decades, how has the UN Global Compact translated its principles into real business impact?
Well, first, thank you for having me. And as you said, it's actually going on to three decades, 26 years, 25, 26 years. But what we have done is working with 25,000 companies around the world, really look at what value, and by value we mean not just simply social value, but really economic value these 25,000 businesses bring to the world. And you did talk about the areas we work in, environment, equality, human rights and labor. But behind that is companies with extensive market value. And when they demonstrate responsible business, that business, that responsibility permeates through markets and through supply chains. And that's what we want to move, that value that they can give in markets.
So, Dr. Poo, what are you most proud of and where is the strongest momentum today?
Yeah, well, I'm most proud of a couple of things. First, as pertains to where we are right now sitting in the exchange, you know, our numbers show us that 500 of our most traded, largest companies that are traded on global stock exchanges. actually represent about 26% of value on the markets. And that's great. When I talk about the economic value that our companies bring, that's it. We move markets. And if we can move them with responsible business behavior, that's even doubly impactful for all of us.
So we know that AI and technology, it's changing at a rapid speed pace. So how can business ensure innovation strengths rather than setbacks? Specifically, when we talk about like gender equality, when we talk about all these businesses you guys are working with.
Well, let me talk about AI first, because it really is a powerful market force and market shaper. I mean, I think there's definitely two sides to it. AI is going to take us forward in so many ways. What we also look at is how equitable AI is, how accessible it is, so that it actually brings the world and businesses and economies together and doesn't divide it. So really interested about that. Obviously, AI and its energy footprint is a critical discussion point. So how do we make it such that AI doesn't always deplete resources, but actually eventually helps add it back. I think that's really important, too.
So we know that gender equality, that's a big thing you guys focus on. But there are other key priorities right now that you guys have also discussed. We know climate action, sustainability when it comes to financial systems. So why are these areas so critical for businesses today?
Yeah. First, I mean, they're critical because businesses identified them as that. So it's not ourselves at the U.N. saying, do this and do that. You know, our business leaders have identified what they call material sustainability issues. I'll go through them real quick. Why is gender important? Because it's important to have both sides at the table. And statistics have shown us that when boards and when leadership teams are more inclusive, you actually get more inclusive decisions. And so that's important. You know, are there women at the table? And a lot of investors actually also look at that. You know, when you look at climate and you look at energy, so important for the future trajectory of the world. You know, when we talk about investing in decarbonization, investing in green and renewables, those are actual market opportunities. And so businesses want to be sure that we can calibrate the market value and also demonstrate the investability in them. So it's things like that that we look at.
So we're still facing a multi-trillion dollar gap in financing the SCGs. So from the conversation that you've had with CFOs and financial leaders, what's actually shifting in how capital is being mobilized towards climate and sustainable development? And what role should investors, stock exchanges, and capital markets play in this?
Yeah, well, this is a big one. And I think it's where we're stuck and where we're not making enough progress on the sustainable development goals, because it's estimated to read four trillion dollars annually to be able to bridge those divides in the world, you know, between those who have and those who do not have on basics such as education and health, but also on more advanced things such as energy and what the built environment looks like. Why is it important to do that? Because we need money. We need money to invest. in energy, to invest in climate, to invest in sustainable cities, to invest in bridging those divides. And it's not just for governments. Oftentimes we think that these goals are purely for the public sector, but they can involve the private sector. We need to bring together finance and do blended finance opportunities, but also I think demonstrate more importantly that business needs to be at the table. When these instruments, when blended finance is being shaped, when project pipelines are being developed, it's not only for governments to do that. Business needs to be at the table.
So let's talk about looking ahead. So what is the single best action you want business leaders, especially in global markets, to take right now to move faster on sustainability?
Just one. So just one, I would say that we need to re-examine the investment opportunities and the sustainable development goals, because when they were set out in 2015, they were already seen as business opportunities. I think it's clear in energy, it's clear in renewables. We need to see what the investment opportunity is in gender, in water, in sustainable cities, because there is a business case for it. And perhaps we haven't articulated it well enough, but we need to sit together and do that.
Uh, so thank you so much for joining us. Appreciate your time and what you guys are doing. Cause it's definitely life impacting and changing the world altogether. Thank you so much.
Thank you for having me.
