Corporations contribute substantially to humanity’s progress along a trajectory towards major ecological tipping points, the crossing of which will have huge consequences from an environmental, economic and social perspective. They are also, however, agents for change. Making up around 70% of global GDP and employment, the private sector has huge influence upon the terms of global and national political economies. Indeed, in order to realize the paradigm shift towards a green economy and a sustainable future for all, dedicated leadership from the private sector is indispensable.
The responsibility borne by- and potential represented by- the private sector has been recognized both by corporations themselves and governments the world over. Inspiring initiatives are being implemented by a range of stakeholders to maximise this potential, ranging from the adoption of sustainable business models and green accounting, to innovative consumer engagement strategies, to the promotion of new approaches to valuation and demand. In order to consolidate progress made so far, and build upon existing momentum and commitment to maximise and secure far-reaching change, we need to start translating outstanding cases into a paradigm shift in the way the business is done.
Indonesia is uniquely placed to considerably shape and push the global shift towards a green economy, and its fast-paced economy and favorable demographics provide exceptional opportunities for businesses. At the same time, the protection of its environment, in particular its forests – vital for the global ecological balance – requires serious investment and support to achieve climate change mitigation on a global scale.
The country is at a crossroads whereby the considerable resources that it has at its disposal could be put to use either as a means of accelerating movement along traditional economic development pathways, or as tools to conceptualise and implement an alternative- sustainable- development paradigm. The country has articulated clear intentions to pursue the latter option, anchored by a commitment to reducing national GHG emissions by 26% according to a business-as-usual pathway by 2020. Sustainable landscape management is at the centre of its strategy. With an estimated 87% of the GHG emissions reduction target to be achieved in the forestry and peat land sector, business strategies in these sectors need to adapt rapidly and innovative to drive forward, and consolidate, progress. A particular priority for the country is to align demand for energy with sustainability prerogatives by developing a comprehensive strategy for renewable energy that lays the foundations for human and environmental wellbeing well into the future. The current administration is clearly committed to the promotion of renewable energy as one element of a broader movement to sustainability.
The urgency of protecting Indonesia’s tropical landscapes is underlined from an economic, environmental and social perspective. Doing so also presents an exceptional opportunity for the private sector, for Indonesia and for the world. Thus, a conference of Chairpersons and CEOs is being convened to discuss, confirm and expand the commitment to Indonesia’s Green Economy transition.