Business 'at heart' of global cooperation, says former UN chief

Kofi Annan, former UN secretary-general, speaks at the opening ceremony of the Global Social Entrepreneurs Forum that runs through Friday in Beijing, Nov 25, 2015. [Photo provided to chinadaily.com.cn]

Former UN secretary-general Kofi Annan called on Wednesday for companies and entrepreneurs worldwide to undertake social responsibility and join together in tackling global economic and environmental challenges that transcend borders.

"Inequality is growing and widening the gap between rich and the poor in many places... and man-made climate change is driving the world to the brink of catastrophe," said Annan. "No country, no matter how successful or powerful, is able to tackle these problems on its own.

"We need to increase cooperation not just between nations, but every sector of our societies. And business must be at the heart of this endeavor," he said during a keynote speech at the opening ceremony of the Global Social Entrepreneurs Forum that runs through Friday in Beijing.

According to Annan, many businesses across the world and in China, particularly mall and medium-sized enterprises accounting for about 90 percent of all businesses worldwide, are undertaking this responsibility by driving innovation, creating jobs and promoting sustainable inclusive growth.

His words came just days ahead of the Paris climate change conference to be held from Nov 30 to Dec 11, during which he hopes decision makers from around the world will agree on an "ambitious and universal climate agreement".

Climate change has been an increasingly pressing issue facing the world, especially when the global economy is still struggling to gain momentum amid meager recovery from the aftermath of the 2008 financial crisis.

"It is not just a serious challenge but also a huge opportunity for the transition to a green economy," said Annan. "Companies are now shifting their way from fossil fuels to renewable energy and driving their research and development of low-carbon technologies".

China continues to play a critical role in clean energy's evolution not just in emerging markets but worldwide. The nation invested $89 billion in clean energy in 2014, the largest among 55 nations surveyed in an independent industry report, Climatescope 2015, representing its commitment to a low-carbon future.

The country has proven the exploration of clean energy power such as solar and wind cannot just drive growth and create jobs, but also provide rural populations with access to electricity, said Annan, adding that economic growth and a zero-emission strategy are actually compatible.

He encouraged companies and entrepreneurs to partner with universities and research institutes to develop energy efficient buildings, smart transportation systems, and climate friendly waste management solutions.

Both business and society could benefit from working together to end poverty, protect the planet, and achieve prosperity for all, said Annan. "Doing good is good for business ....because by raising incomes and removing the barriers which trap people in poverty, you are building the consumer base for your products and services".

Business cannot succeed in a society that fails, he said, praising Chinese companies' efforts and partnerships, particularly in Africa, to help provide the infrastructure and services needed to overcome the continent's many challenges.

"These successes need to be replicated and scaled out," he said while noting that the country's innovative public-private-partnerships can deliver better development including improving access to food and clean water, and to sanitation, health care and education.

The forum, the first of its kind worldwide, was initiated by Beijing Huaxia Management College, China's first free university founded by Jiang Nanxin in 2011. Jiang is also chairman of ShareFar Inc, a management consulting firm in the country.