ACCELERATING
SUSTAINABLE GROWTH

The tropics, a region encircling the Earth's equator, have long been perceived as lush rainforests with exotic animals and unchanging weather. However, they are also often associated with poverty, unstable governments, and environmental destruction. A new report, "The State of the Tropics," provides a deeper and more nuanced understanding of this diverse region.

Changing Perceptions

Historically, the tropics were misunderstood, with Aristotle even claiming that no civilization could thrive there. The report calls for a shift in perspective, urging recognition of the tropics from within and embracing local wisdom and experience. Compiled by 12 institutions, this comprehensive 400-page report delves into demographics, health, science, economics, biodiversity, and climate change..

Population Growth

Currently, the tropics are home to 40% of the world's population and 55% of children under five. Population growth is particularly rapid in Africa. By 2050, over half of the global population and 67% of young children will reside in the tropics. The region is expected to add 3 billion people by the end of the century, necessitating a rethinking of global priorities in aid, development, research, and education.

Economic and Social Challenges

A booming population drives increased demand for food, water, and resources. Tropical economies are growing 20% faster than those in temperate regions but still house two-thirds of the world's extreme poverty. While extreme poverty has decreased in Southeast Asia and Central America, it has doubled in Central and Southern Africa since the 1980s. Despite these challenges, there have been improvements, including a decline in undernourishment, rising life expectancy, and reduced maternal and child mortality.

Health Issues

The tropics face unique health challenges, with diseases like dengue fever and malaria remaining significant threats. These diseases are rarely found in temperate regions but are major health concerns in tropical countries.

Land and Environmental Struggles

Growing populations and consumption have led to land-use clashes. Indigenous groups struggle to maintain control over their lands as corporations seek resources for agriculture, livestock, and commodities. Conservationists are working to preserve vital ecosystems, as the tropics host 80% of Earth's terrestrial biodiversity and 95% of mangrove and coral reef biodiversity. Unfortunately, forest loss continues, especially in Oceania.

Oceanic Pressures

Marine resources in the tropics, including coral reefs and mangroves, face unprecedented pressures. Overfishing and destructive practices have depleted species. Mangroves, crucial for coastal protection and carbon storage, are being rapidly destroyed for aquaculture and development. Climate change and ocean acidification further threaten these ecosystems.

Future Challenges

Climate change poses significant challenges for the tropics, including extreme weather, rising seas, and changing precipitation patterns. These changes could impact agriculture and increase the number of refugees and regional conflicts. The tropics are expanding into temperate zones, which will have implications for water resource management and agricultural systems.

Conclusion

The future of the tropics is one of rising influence and wealth, alongside ongoing struggles with poverty, hunger, health standards, biodiversity, climate change, and resource conservation. The report emphasizes the importance of sustainable development and conservation to safeguard resources for future generations. The tropics hold great potential and influence, making it crucial to address these challenges thoughtfully and effectively.

The rise of conscious consumerism paired which the shocking effects of the pandemic have made global leaders realize that ignoring the climate threat is no longer an option. With growing climate concerns, consumers are increasingly preferring the brands that are adopting the Environmental, Social and Governance measures.

ESG has also shifted the way investors, policymakers and shareholders analyse a company’s chances of surviving in the long term and safeguarding it from an unforeseen future.

What is ESG

ESG is the disclosure of data that tracks a company’s strategies and actions towards three-factor: Environmental, Social and Governance.

Environmental in ESG measure

As the name suggests, environmental (E) assesses the impact of a company’s operations on the environment, activities to reduce carbon emission and its strategies to manage environmental risk. Some examples of environmental factors are natural resource management, carbon emission reduction, and conscious sourcing of raw materials.

Social in ESG measure

Social criteria examine how a company builds its relations with employees, shareholders, investors, customers and dealers. Customer relations, employee health & safety, etc, are included in this social factor.

Governance in ESG measure

Building trust with customers, investors and shareholders is a company’s ultimate goal. The governance factor ensures transparency through audits, internal controls, equal pay, shareholder’s rights etc.

Here’s why ESG is important for businesses

1. Attracts long term investors

Investors who keep ESG points into consideration are not just concerned by the profits of the next quarter but by a company’s long term vision and contribution to the planet. These investors tend to stay to build a company’s value in long term.

As the popularity of ESG is growing, investors are searching for companies with a vision that aligns with the betterment of the planet. Research from Gartner.com states that almost 85% of investors in the US considered ESG factors before investing in 2020.

2. Clear communication with stakeholders

Through ESG, companies can develop channels to communicate efficiently with stakeholders. Activities like company audits, corruption checks and upholding transparency maintain stakeholders’ trust and build stronger relations.

3. Attract best talent

Employees are one of the most important factors that lead to a business’s success and stability. The new-age employees, also known as the millennials, are environmentally conscious and will refuse to work with companies without a strong CSR policy, as per Forbes.

Therefore, companies with a strong ESG base will attract employees who are compassionate and are not only associated with the company for profits but to build a better world.

4. Gives a competitive edge

Companies adapting to the changing socio-economic policies are likely to stay in the competition for longer. For example, companies like Starbucks and Nestle have pledged to be carbon neutral. In addition, these companies have made their packaging more environmentally friendly and are increasingly spending more on CSR activities.

With the after-effects of the pandemic, air & water pollution and the rising threat of global warming, consumers are more mindful of their actions and choose to be associated with the companies that are in line with their values and are choosing the planet over profits.

The Sustainable Development Goals (SDGs) are also known as the Global Goals. These were adopted by the United Nations, in 2015. A universal call to action to end poverty, protect the planet, & ensure that by 2030 all people enjoy peace and prosperity.

Sustainable Development goals are The 17 SDGs are integrated - They recognize that action in one area will affect outcomes in others and that development must balance social, economic, and environmental sustainability.

The 17 SDGs are:

1. No Poverty,
2. Zero Hunger,
3. Good Health and Well-being,
4. Quality Education,
5. Gender Equality,
6. Clean Water and Sanitation,
7. Affordable and Clean Energy,
8. Decent Work and Economic Growth,
9. Industry, Innovation, and Infrastructure,
10. Reducing Inequality,
11. Sustainable Cities and Communities,
12. Responsible Consumption and Production,
13. Climate Action,
14. Life Below Water,
15. Life On Land,
16. Peace, Justice, and Strong Institutions,
17. Partnerships for the Goals.

All countries have committed to prioritizing progress for all those who're the furthest & behind. The SDGs are designed to help with and end poverty, remove hunger, control AIDS, set the right ideals to end discrimination against women & girls.

Though all the goals are broad & interdependent, two years later, on 6 July 2017; the SDGs were made more “workable” & "actionable" by a UN Resolution which was adopted by the General Assembly. The resolution identifies specific targets for each goal to be achieved, along with indicators that will be used to measure progress towards each target. While the rest of the target years lie between 2020-2030; for others, the end date is not yet provided.

The thought, the creativity, the know-how, the technology & the financial resources from all of society is necessary to achieve the SDGs in every context. Only with everyone’s support, we can begin to think of a better tomorrow. Deeply analyzed progress charts & presentations for all the SDGs are published in the form of reports by the United Nations Secretary-General on their official channels. The most recent one is from April 2020.

Along with that, there is also a widespread consensus is that: The progress on all of the SDGs will be stalled if Women's Empowerment & Gender Equality are not prioritized, & treated holistically with all intentions to take them forward. The SDGs are a sign to policymakers as well as private sector executives and board members to work towards gender equality and women empowerment harder as the rest of the other SGDs have deadlines and we will probably miss them if these two prioritized ones don’t get momentum & begin to see some change.

Implementation of the SDGs started worldwide in 2016. This process can also be called "Localizing the SDGs" for the people and territories. For eg; Individual people, universities, governments, institutions & organizations of all kinds work are working separately but one or more goals at the same time which aligns the collective growth in the same direction.

SDGs provide us the framework through which we can move ahead into a more peaceful, prosperous, equal for all, green future. And each country has a role to play in achieving them.