How essential is the private sector in reaching global sustainability? Discussion 2022

Student Name
INSTITUTIONAL AFFILIATION(S)
DISCUSSION

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1. How essential is the private sector in reaching global sustainability? And give
examples
Business sustainability is one term which states whether any company is responding to
their long-term and short-term financial requirements without hampering others or self-
ability. Some people though restrict sustainable development needs with other environmental
issues while many firms use it synonymously with CSR. In both the cases, global
sustainability obliges every firm make intertemporal trade-offs so that intergenerational
equity is safeguarded. Using such approach, many private firms have indulged themselves in
global sustainability practices, including financial instrument tools like grants, loans and
guarantees besides non-financial goals such as technical assistance and policy dialogue
( Bansal & DesJardine, 2014). A more strategic approach undertaken by private firms
realising synergies across global mechanism and practices allows them with flexible
application of resources and mechanisms under different contexts.
Examples include non-financial private sector engagement tools like sustainable business
promotion, policy dialogues and engaging with other business associations that lay direct
partnerships. Flexibility tools at an international level ensure that private sector together
fulfil the purpose behind sustainable development goals and maximise positive impacts on
global partnerships. One real world example that can be given here is the African Guarantee
Fund, a multilateral private sector engagement mechanism which tries to solve the issues
related to inefficiencies, fragmentation and duplication of development assistance required by
African SMEs. Several development finance institutions and donors implement SME
programs like an uncoordinated manner, by offering support in regional levels and by pooling
available resources (OECD, 2016).