The Global Compact: What is the leading initiative in corporate sustainability all about?

On January 31, 1999, then-UN Secretary-General Kofi Annan proposed an idea to business leaders at the World Economic Forum in Davos: “To launch a global compact of shared values and principles that would humanize the global market.” In his speech, Annan urged that the economic realm should not leave the political and social realms behind. 25 years later, the Global Compact operates in 167 countries and includes over 24,900 participating entities, making it the world’s foremost corporate sustainability initiative.

The United Nations Global Compact, UNGC, is a framework providing guidelines for businesses and organizations to adopt practices aimed at humanizing the market. Its primary mission is to accelerate and scale the collective global impact of businesses by encouraging signatories to adhere to its Ten Principles. 

These principles are grounded in foundational documents such as the Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the UN Convention Against Corruption. They serve as a baseline for corporate sustainability, focusing on human rights, labor standards, environmental protection, and anti-corruption. 

To further its goals, the UNGC also leverages the 2030 Agenda and the Sustainable Development Goals—17 global objectives adopted by the UN in 2015, designed as a “plan of action for people, planet, and prosperity.” The Global Compact supports this mission through 61 local networks around the world, which help businesses align with these principles and adapt them to their specific contexts.

Among the 167 countries with the 24,900 participating entities, Brazil, France, and Spain have the largest number of members. Studies indicate that adopting the UNGC improves environmental, social, and corporate governance performance, ultimately leading to positive economic results.

To realize these benefits, companies must integrate the Global Compact’s principles into their daily operations. At MAPFRE, a UNGC member, this is achieved through targeted actions for each of the ten principles, applied throughout the entire value chain. This includes the aim to have all preferred suppliers for home, auto, health, and procurement certified based on ESG (environmental, social, and governance) sustainability criteria by 2024. MAPFRE also actively engages with the 2030 Agenda, conducting regular internal reports, surveys, and evaluations to track the implementation of these policies. This commitment helps advance the principles and SDGs of the Global Compact, driving progress toward comprehensive corporate sustainability.

RELATED ARTICLES: