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Executive Summary: PIDG alignment to the Global Goals

January 2017

EllenCareyMaginnisCarolineAshley

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Contents AbouttheGlobalGoalsforSustainableDevelopment............................................................................2

WhatdoesitmeanforanorganisationtorelatetotheGlobalGoals?...................................................2

HowdotheGlobalGoalsfitwithPIDGactivities?...................................................................................3

HowshouldthepotentialfornegativeimpactsonGlobalGoalsbetakenintoconsideration?.............5

HowcanPIDGenhancethewayitmanagesandmeasuresitscontributiontotheGlobalGoals?.........8

WhereshouldPIDGgofromhere?..........................................................................................................9

About the Global Goals for Sustainable Development TheUnitedNationsandGovernmentshaveagreed17GlobalGoalsforSustainableDevelopmenttostructureglobalprioritiesuntil2030.TheGoalsrepresenttheworld’sbiggestissuesandsociety’sabilitytoimpactthem,positivelyornegatively.Manyfront-lineorganisations,includingbusinessesandNGOs,recognisethattheyneedtoassesstheirimpactontheGlobalGoalsandreviewtheirstrategyaccordingly.ThisreportfocusesonhowtheGlobalGoalsfitwithPIDGactivitiesandhowPIDGcanimproveitscontributionto,andreporton,thiscommonsetofglobalgoalsandtargets.

What does it mean for an organisation to relate to the Global Goals? ManyorganisationsarestilldevelopingtheirframeworksforhowtheyaligntotheGlobalGoals.Thegraphicbelowillustrateshowsustainableinfrastructuresupportsthe17globalgoalsinverybroadterms.ActivemanagementandmeasurementofcontributiontowardsGoalsrequiresamorefocusedframework.

Figure1:NewClimateEconomy:howsustainableinfrastructuresupportsalltheSustainableDevelopmentGoals1

1http://newclimateeconomy.report/2016/the-sustainable-infrastructure-opportunity/

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Inordertoassesshowanorganisation’sactivitiesrelatetoaspecificGoal,andfacilitateeffectivecontributionstowardsGoals,thisreportprovidesaframeworkthatlooksat:

• Alignment:howPIDG’sactivitiesrelatetothe“essence”ofaGoalascapturedintheoverallframingoftheGoal.

• Contribution:ThescaletowhichPIDG’sactivitiescontributetothespecifictargetsoftheGoal.Thisassessmenttakesintoconsiderationnegative,aswellaspositiveimpacts

• Measuringandreporting:TheabilitytoevidencePIDGportfoliocontributionstotheGoals.

How do the Global Goals fit with PIDG activities? ThePIDGmission2alignswithmanyaspectsoftheGlobalGoals.Whenlookingmorecloselyatalignment,scaleofcontributionandmeasurement(andreporting)ofthatcontributionhowever,thereareanumberofchallengesthatcomewiththeuniquenatureofPIDG.TheseincludePIDG’swiderangeofstakeholders(e.g.donors,privatesector,governments),therangeofsectorscoveredbyprojects(e.g.energy,transport,telecoms)andthedecentralisednatureofPIDGthroughitsvariousfacilities,coveringawiderangeofgeographies.

Acknowledgingthesechallenges,weusetheframeworkmentionedabovetoidentifythemostrelevantGlobalGoalsastheyrelatetoPIDG.Wefirstlookatalignment,howthe“essence”oftheGoalrelatestoPIDGworkandobjectives,followedbydistinctivepositivecontributionandthescaletowhichpositiveimpactisdeliveredagainstspecifictargetsofthatgoal.Negativeimpacts,andPIDG’sabilitytomitigatethem,arethensetoutinTable2.ThealignmentandcontributionassessmentidentifiedsixGlobalGoalstowhichPIDGismostrelevant.

Table1:AssessmentofPIDGalignmentandcontributionforeachGlobalGoal(Goalsarerankedbydegreeofalignment)GlobalGoal Goalalignment-description Contribution-Distinctcontribution(scale)

High-ThisGoalfocusesonpartnershipsthatdeliverincreasedgovernmentrevenues,andmobilisefinancialresourcesandinvestmentfrommultiplepartiesinsupportofpovertyalleviationindevelopingcountries.ThisisthecoreofthePIDGmodelandobjectives.

High-Since2002,$29.1bnofinvestmenthasbeenmobilisedfromprivatesectorinvestorsanddevelopmentfinanceinstitutions,relativeto$2.3bnofinvestmentfromPIDG.Additionally,theconstructionandoperationofPIDGprojectsgeneratesignificanttaxrevenueforgovernments($6.8billionincumulativefiscalbenefitsin2015).

Medium-SustainableurbaninfrastructureisasignificantanddirectresultofthePIDGportfolio,howeverPIDGstrategydoesnotspecificallyfocusonsustainableurbaninfrastructureasapriority.Additionally,resilienceandinclusivity(e.g.affordability)arenotspecificstatedprioritiesforPIDG.

High-PIDGdoesnotcurrentlyclassifyitsprojectsasruralvsurbanbutasignificantnumberofprojectsinthehousing,transportation,water/sewage/sanitationandurbandevelopment/infrastructureprojectsarealignedwiththespecifictargetsofthisGoal.

2Tomobiliseprivate-sectorinvestmenttoassistdevelopingcountriestoprovideinfrastructurevitaltoboosttheireconomicgrowthandcombatpoverty’

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GlobalGoal Goalalignment-description Contribution-Distinctcontribution(scale)

Medium/High-ThisGoalfocusesonqualityjobsandeconomicgrowth,keyaspectsthatPIDGpositivelycontributestodirectly,indirectlyandthroughinducedmeans.OnekeyaspectoftheessenceofthisGoalthatisnotaspecificPIDGpriority(althoughisaddressedthroughapplicationofIFCPerformanceStandard2)isthe“quality”aspectofjobs.

Medium/High-Since2002,224,000directlong-termjobshavebeencreatedbyPIDGfundedprojects.Thisdoesnotaccountforthemillionsofindirectandinducedjobscreated.KeytargetsforthisGoalarefocusedoneconomicproductivityandgrowthandemployment,whichPIDGareknock-onimpactscreatedthroughtheexistenceofreliableinfrastructure.OnekeyelementofafewofthetargetsthatPIDGcannotreportacontributiononisthe“quality”(wage,labourconditions,etc.)aspectofjobs.

Medium/High-WideraccesstoenergyisalargedirectresultofthePIDGportfolio.KeyaspectsoftheessenceofthisGoalfocusonrenewable/cleanenergyandaffordabilityofthatenergy.PIDGdoesnothaveanystatedprioritisationforrenewableenergyprojectsanddoesnotsystematicallyaddressaffordability.

Medium/High–Energyprojectsaccountfor40%ofthePIDGportfolio,withasmallerpercentagefocusedonrenewableenergy.PIDGprojectsapprovedin2015willprovideenergytoover1.7millionpeopleindevelopingcountries.Thiscanbebrokendownintonew(andimproved)access.RelevanttargetsthatarenotspecificallyaddressedbyPIDGincludeaffordability,energyefficiency.

Medium/High-ThisGoalfocusesonpovertyreduction,anultimate(indirect)goalofPIDG.PIDGstrategydoesnotfocusdirectlyonpovertyreduction,butitisacorefocusoftheirworkandexpectedoutcomethroughjobcreationandeconomicdevelopment.TheprioritisationofleastdevelopedcountriesandconflictaffectedcountriesisalsoalignedwithaspectsofthisGoal.

Medium-Thepotentialforpovertyreductioncomesthroughtheknock-oneffectscreatedthroughtheconstructionofsustainableinfrastructureandinclude(1)theimprovedaccesstobasicservices(2)employmentopportunitiesgeneratedthroughinfrastructureprojectsaswellasthrough(3)theeconomicgrowthspurredbyreliableinfrastructure.WhileitischallengingtoevidencethecontributionstothisGoal,PIDGactivitiesdofocusonanumberoftargetsrelatingtotheGoalincludingaccesstobasicservices,improvementsinresilience,andthemobilisationofresourcestodevelopingcountries.

Medium/High-ThisGoalfocusesoninfrastructurethatpromoteseconomicdevelopment,whichisadirectresultandpriorityofPIDGactivities.ThemajorityofPIDGfundedprojectsandthemainobjectiveofPIDGrelatestotheessenceofthisGoal.RelevantaspectsthatarenotspecificallyaddressedbyPIDGincludeaffordability,andvarious

Medium–WhiletheentirePIDGportfolioisfocusedoninfrastructure,PIDGactivitiesdonotrelatetothemajorityofthe12specifictargets.PIDGdoescontributetoelementsofthetargetsthatfocuson:Infrastructure(generally),industrialisation,ICT,African,andleastdevelopedcountries.RelevanttargetsthatarenotspecificallyaddressedbyPIDGincludeaffordability,environmentalconsiderations,etc.

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GlobalGoal Goalalignment-description Contribution-Distinctcontribution(scale)

environmentalconsiderations.

How should the potential for negative impacts on Global Goals be taken into consideration? Allprojectscreatesomedegreeofnegativesocialandenvironmentalimpact.Negativeimpactsareimportanttomeasure(andmanage)inordertosupportanetpositivecontributiontoeachgoal,aswellastoreducePIDGrisks.SevenGoalswerehighlightedasapriorityforPIDGattention,inordertoenhancealignmentwithGoals.Thesepotentialnegativeimpactsrangefromenvironmental,socialandcorporategovernance(ESG)matters(e.g.waterusage,emissions,employmentpolicies)butalsopotentialknock-oneffectsarisingfrominfrastructureprojects(e.g.risingpropertycoststhatresultfromimprovedinfrastructure).ForallthesevenGoalshighlighted,PIDGhastheopportunitytomitigate/lessenthepotentialnegativeimpactthroughitsexisting(oradditional)internalpoliciesandprocedures.

Table2:AssessmentofnegativeimpactsandPIDG’sabilitytomitigatethemforeachGlobalGoalGlobalGoal Potentialnegativeimpact Abilitytomitigate

Asignificantaspecttothisgoalisfocusedonreducingwaterpollution,improvementofwaterresourcemanagementandtheprotectionofwaterrelatedresources.Waterusageisasignificant(potentiallynegative)impactfrommanyinfrastructureprojectsthroughouttheirsupplychain(e.g.fromwaterusedincementproductiontothehigh-waterusagerequiredbysomeenergyprojects).

IFCperformancestandardsaddresswasteandwaterpollution.ThisreportdidnotreviewPIDG’simplementationoftheseandthereforedoesnothaveenoughinformationtoassesswhethertheyaresufficientfromamitigationperspective,butitislikelytobeanareawherePIDGcanmakeasubstantivedifference.

ThisGoalisfocusedontheconservationandsustainableuseofbiodiversityandecosystemswhichcanbenegativelyimpacteddirectlyandindirectlybyinfrastructureprojects,particularlyinruralareas.

TheIFCperformancestandardsproviderequirementstomitigatenegativebiodiversityandnaturalresourceimpacts.ThisreportdidnotreviewPIDG’simplementationoftheseandthereforedoesnothaveenoughinformationtoassesswhethertheyaresufficientfromamitigationperspective,butitislikelytobeanareawherePIDGcanmakeasubstantivedifference.

NegativecontributionstothisGoalcouldcomethroughpoorwages,workersafetyandotheremploymentfactorsastheyrelatetothejobscreateddirectly(andindirectly)throughPIDGfundedprojects.

ThisGoaltouchesonanumberofaspectsthatPIDGcouldpotentiallymanagethroughtheirESGandmanagementprocedures.Theseincludeequalandfairpay/wages,labourrights,secureandsafeworkingenvironments,etc.ThisreportdidnotreviewPIDG’simplementationoftheseandthereforedoesnothaveenough

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GlobalGoal Potentialnegativeimpact Abilitytomitigate

informationtoassesswhethertheyaresufficientfromamitigationperspective,butitislikelytobeanareawherePIDGcanmakeasubstantivedifference.

ThetargetsofthisGoalrelatetoincreasedenergyaccess,butplaceaspecificemphasisonrenewableenergy.Forexample,onespecifictargetofthisGoalis‘By2030,increasesubstantiallytheshareofrenewableenergyintheglobalenergymix’.NegativecontributionstothisGoalcouldcomeintheformoffinancingadisproportionateamountofnon-renewableenergyprojects.

PIDGhasapotentialtomanagenegativecontributionstothisGoalbymanagingtheratioofrenewableandnon-renewableenergyprojectsfunded.

Infrastructureprojectscanhavenegativeeffectsongenderequityunlessproactivelyapplyingagenderscreen.Forexample,constructionprojectscoulddisproportionatelyrestrictwomen’sabilitytocarryoutnormaltasksandincomegeneratingactivitiesand/orlimitsocialcontactandinteractions.ThisisanareawherePIDGprojectscanthereforeproduceunintendednegativeimpacts.

Asindicatedabove,theIFCperformancestandardsproviderequirementstomitigatenegativegenderimpacts.ThisreportdidnotreviewPIDG’simplementationoftheseandthereforedoesnothaveenoughinformationtoassesswhethertheyaresufficientfromamitigationperspective.Havingaspecificgenderlensforprojects(beyondjustcountingthenumberofwomenimpacted)canbothreducethenegativeimpactonwomenandfindwaystomodifyprojectstoamplifypositiveimpact.

NegativecontributionstothisGoalcouldcomethroughpoorwages,workersafety(harassment)andotheremploymentfactorsastheyrelatetothejobscreateddirectly(andindirectly)throughPIDGfundedprojects.Negativeimpactscouldalsocomefromunintendedconsequencesthatcanarisefrominfrastructureprojectsthatcancontributetoinequality(e.g.risingpropertycoststhatresultfromimprovedinfrastructure)

IFCperformancestandardstouchonharassmentandwagematters,butdonotspecificallyrequirefairandlivingwagesordiscussequalopportunitypoliciesforemployees.Additionally,theydonotaddresstheunintendedconsequencesthatcancomefrominfrastructureprojectsthatcancontributetoinequality.

ThisGoaldoesnotspecificallyaddressthereductionofclimateimpacts(e.g.CO2emissions)butratherfocusesonadaptationandresilience.NegativelycontributingtothisGoalcouldbeseenasbuildinginfrastructurethatdoesNOTtakeintoaccountclimateconsiderations.PotentialnegativeenvironmentalimpactsofPIDGprojectsaffectingclimatechangeisaddressedaspartofGG#15.

ThisreportdidnotreviewPIDG’sconsiderationofthesefactors,butitislikelytobeanareawherePIDGcanmakeasubstantivedifference.

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GlobalGoal Potentialnegativeimpact Abilitytomitigate

ThereissomeevidencethattheprioritisationofinfrastructureprojectspursuedthroughPPPs(andsolelythroughtheprivatesector)maybiasgovernmentstowardsbankableprojectsratherthaninitiativeswhichbestrespondtosocialdevelopmentobjectives34.

TheessenceofthisGoalisallaboutpartnershipsinsupportofpovertyalleviation,andPIDGshouldmakesurethattheresultsofpartnershipactivitiesaretargetedtowardsthis.

NegativecontributionstowardsthisGoalcouldcomethroughincreasedemissionsfrominfrastructureprojects,thecreationofpublictransportandotherurbansystemsthatisnotaffordableforlowincomepeopleand/orthedevelopmentofinfrastructureprojectsthatarenotalignedwiththeSendaiFrameworkforDisasterRiskReduction(whereapplicable).

TheIFCperformancestandardsproviderequirementstomitigatepollutionandwastegeneration.ThisreportdidnotreviewPIDG’simplementationoftheseandthereforedoesnothaveenoughinformationtoassesswhethertheyaresufficientfromamitigationperspective.

OneofPIDG’smainobjectivesistoreducepovertythroughimprovedinfrastructureandeconomicgrowth.TheriskofnegativelycontributingtoelementsofthisGoalcouldcomefromsubstandardwagesfromemploymentopportunitiesstemmingfromPIDG,aswellasunintendedconsequencesofinfrastructureprojectsthatpushpeoplefurtherintopoverty(e.g.risingpropertycoststhatresultfromimprovedinfrastructure).TheprioritisationofthesenegativeimpactsisaddressedthroughtheGoalsabove.

IFCperformancestandardstouchonwagematters,butdonotspecificallyrequirefairandlivingwagesforemployees.Additionally,theydonotaddresstheunintendedconsequencesthatcancomefrominfrastructureprojects.

NegativelycontributingtothisGoalwouldequatetothedestructionofinfrastructurewhichisnotwhatPIDGdoes.

ThisGoalisfocusedonreducingwaterpollution,improvementofwaterresourcemanagementandtheprotectionofwaterrelatedresourcesastheyrelatetooceans,seasandmarineareas.WhilethesameconcernsapplyrelatedtoGoal6above,weunderstandthatPIDGprojectshavelessofanimpactonmarinerelatedresources.

TheIFCperformancestandardsproviderequirementstomitigatenegativewaterrelatedimpacts,includingmarineareas.ThisreportdidnotreviewPIDG’simplementationoftheseandthereforedoesnothaveenoughinformationtoassesswhethertheyaresufficientfromamitigationperspective.

3PPPsandtheSDGs:Don’tbelievethehype,JeffPowellPublicServicesInternationalResearchUnit-http://www.world-psi.org/sites/default/files/ppps_and_the_sdgs-dont_believe_the_hype_psiru.pdf 4http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/international-development-committee/dfids-programme-in-nigeria/written/27922.pdf

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GlobalGoal Potentialnegativeimpact Abilitytomitigate

ThisGoalcoversarangeofconsumptionandproductionrelatedmattersthatPIDGprojectscoulddirectlyandindirectlynegativelycontributeto(e.g.wastegeneration).Becausetheseareas,astheyrelatetoPIDG,havebeenaddressedelsewherethisGoalwasnotflaggedasapriorityforPIDG.

TheIFCperformancestandardsproviderequirementstomitigatenegativewasterelatedimpacts.ThisreportdidnotreviewPIDG’simplementationoftheseandthereforedoesnothaveenoughinformationtoassesswhethertheyaresufficientfromamitigationperspective.

NegativelycontributingtothisGoalwouldequatetoinfrastructurethatresultsinincreasedviolence,corruptionandsocialunrest.Thereisapotentialforinfrastructureprojectstoresultintheseimpacts,butitisbeyondtheexpertiseoftheauthorstocommentonthesignificanceandlikelihoodofthis.

ThisreportdidnotreviewPIDG’simplementationofsafeguardsandmitigationstandardsinareasthatrelatetothisGoalandthereforedoesnothaveenoughinformationtoassesswhethertheyaresufficientfromamitigationperspective.

NegativelycontributingtotheseGoalswouldequatetoinfrastructurethatresultsincreasedfoodinsecurity,negativehealthimpactsandreducedaccesstoeducation.Thereisapotentialforinfrastructureprojectstoresultintheseimpacts,butitisbeyondtheexpertiseoftheauthorstocommentonthesignificanceandlikelihoodofthis.

ThisreportdidnotreviewPIDG’simplementationofsafeguardsandmitigationstandardsinareasthatrelatetothisGoalandthereforedoesnothaveenoughinformationtoassesswhethertheyaresufficientfromamitigationperspective.

How can PIDG enhance the way it manages and measures its contribution to the Global Goals? ThefullreportdescribesthreewaysthatPIDGcanreportprogressagainsttheGoals.Theseinclude:(1)ReportingdirectlyagainststandardUNindicators(2)ReportingmetricsthattangentiallyrelatetothestandardUNtargets/indicators(3)CreatingabroaderevidencebasebylinkingPIDGactivitiestoimpactsthroughexternalresearch.ThefollowingfiveresultsmeasurementpracticesareidentifiedaspotentialoptionsforPIDGconsideration:

1. povertyestimation(e.g.anassessmentofaffordabilityandaccessrelatedtotheBoP),2. ‘gap’contribution(e.g.categorisationoftheGlobalGoalgapbeingaddressed),

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3. otherprojecttags(e.g.urbanvsrural),4. commonindicatorsforcommonprojects(e.g.thenumberofMWgeneratedannuallyforall

energyprojects),and5. commonindicatorsfornegativeimpacts(e.g.CO2emissionsforrelevantprojects).

Additionalrecommendationsfocusonimprovedreportingthatcanbedonebeyondprojectlevelmeasurement,includingthroughacademicandexternalevidence(e.g.oninfrastructureandGDPgrowth),throughcompellinganecdotalstories,andbyprovidingcleardocumentationonPIDG’spositionforvariousaspectsthatrelatetotheprioritiesdefinedintheGoals(e.g.exclusionarycriteriaforPIDGfunding).

Where should PIDG go from here? TheframeworkandrecommendationsprovidedinthisreportpresentPIDGwithaninitialmappingofpriorityGoalsandsetofissuesthatcanbetakenfurthertoassessandoptimisecontributionstotheGoals.Thisgoeswellbeyondacommunicationsexercise.Asindicatedabove,manyorganisationsarethinkingabouthowtoalign,contribute,reportandimprovetheirimpacttowardsthesetargets,andtherewouldbemutualbenefitstoPIDGengagementinsuchconversations.TheassessmenttodateshowsthatPIDGservesanimportantanduniqueroleincontributing,inasubstantialway,tothetargetsofsixofthe17GlobalGoalsandcancontributefurtherbyprioritisingandaddressingthepotentialnegativeimpactsthatrelatetosevenoftheGoals.PIDGcanusetheexamples,challengesandrecommendationsprovidedinthisreporttodemonstratealignmentsofar,improvecapacitytoreportonfuturecontribution,andequallytorefineandmagnifytheimpactofPIDGworkonachievementoftheGlobalGoals.