Glossary
UN GC
The United Nations Global Compact (UN GC) is a voluntary initiative proposed by the United Nations that encourages businesses worldwide to adopt sustainable and socially responsible policies and practices. It is the world's largest corporate sustainability initiative with over 9,500 companies participating from more than 160 countries.
The initiative rests on ten principles derived from key UN conventions, with environment-related principles focussed on precautionary approach to environmental challenges, initiatives to promote greater environmental responsibility, and the encouragement of the diffusion of environmentally-friendly technologies. These principles are consistent with the focus on green and renewable energy and diligent carbon accounting.
The UN GC provides a comprehensive platform for businesses to align strategies and operations with universal principles stemming from areas such as human rights, labor, environment, and anti-corruption efforts. It stimulates the private sector’s contributions toward achieving the Sustainable Development Goals, aiming at a prosperous and equitable existence for all on a healthy planet.
Moreover, UN GC plays a significant role in promoting green energy and renewable resources and mitigates the environmental impacts of businesses. Participant companies commit to set ambitious science-based targets, working towards a range of environmental objectives, including reducing greenhouse gas emissions, managing water use within planetary limits, and reducing waste generation. They are also encouraged to innovate and forge mutually beneficial partnerships, exemplified in the adoption of clean and renewable energy technologies.
In terms of carbon accounting, the UN GC lays strong emphasis on enabling companies to measure, manage and report their environmental impacts transparently. Carbon accounting is an integral part of this commitment to environmental principle. Committed companies are expected to disclose annually to the public their environmental and social performances, ensuring accountability and transparency. This allows stakeholders to track progress and pressure companies to improve their practices continually.
The UN Global Compact, therefore, stands as a robust mechanism to urge businesses worldwide to transition to low-carbon, more sustainable operations, embedding environmental stewardship into their core strategies. By doing so, it not only assures company longevity and competitiveness but also contributes significantly in addressing common environmental challenges.