APEC Global Briefing Report Review- Featuring a recap of G7-G20 & COP26 by G7-G20-APEC- COP GLOBAL BRIEFING REPORTS REVIEW

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Setting new standards Sustainability is at the heart of everything we do at AkzoNobel. It’s vital for the future of our company, our society and our planet. We have a passion for paint which drives our innovation and helps people to overcome the challenges they face every day. Whether we’re developing paint that keeps buildings cooler or coatings that make the shipping industry more efficient, we’re always striving to embrace a more sustainable way of working. That’s why we’ve been top of the Dow Jones Sustainability Index for five out of the last six years. And we’ll continue to use our ambition and imagination to deal more efficiently with the world’s limited resources. Because sustainability is clearly good for business.

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G L O B A L B R I E F I N G R E P O RT R E V I E W CONTENTS

CONTENTS

F E AT U R E S

L E A D S T O RY

F E AT U R E S

PM ARDEN

APEC Leaders Declaration

RALLIES APEC LEADERS ON COVID RESPONSE, CLIMATE CHANGE

APEC ‘A Powerful Example of Commuity’ Business Forum

40 APEC DECLARATION: Aotearoa Plan of Action A plan for implementing the Putrajaya Vision 2040

18 Close of CEO Summit Handover to Thailand An Address from Barbara Chapman

46 G20 ROME Leaders' Declaration

20 Global Experts Speak on the Big Issues at APEC CEO Summit 2021

64 G7 Communique

Prime Minister Concludes Economic Leaders Summit

COP 26 Explained

G7 & G20 Virtual Summit

Digital Economy

140

How the Maldives Persevered: Natural Blessing and Industry Determination

Silence is not an Option for CEOs

Branded Stories

Next Focus for Business Jonathan Haidt

06 08 108 112

32 ‘We all Need to Take Action on Climate Change’

02 07 17 19 23 75 96 111

Sustainability at the Centre of Food Production

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PUBLISHER/CEO & FOUNDER Chris Atkins

LEADERS & CEOs GLOBAL BRIEFING REPORT REVIEW NEW ZEALAND

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CREATIVE DIRECTOR Christian Gilliham christian@cgcreate.co.uk (+44) 7951 722265 EVP OPERATIONS Jennifer Latchman-Atkins

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116 124 126 132

Siyam World Liechtenstein Bank AkzoNobel Issuu

Advertisers Index

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Becamex PMI CPA Canada DirtLocker

EXECUTIVES Phil Cook Ray Baker James Regis Richard Reale Delano Johnson Anthony Leigh Jones

Akzonobel Cat Company Middle East Intitute LSE INC Globus Turkish Airlines CPA Canada

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Siyam World Northwestern University Issuu Kestone Turtle Island SOS, Open Sky Blue & Crosstech

Copyright 2022 the CAT Company All rights reserved. The G7/G20/B20 Publication is a product of CAT Company. No part of this publication can be reproduced without written consent of the publisher Chris Atkins and the CAT Company. All trademarks that appear in this publication are the property of the respective owners. Any and all companies featured in this publication are contacted by CAT Company to provide advertising and/or services. Every effort has been made to ensure the accuracy of information in this publication, however, CAT Company makes no warranties, express or implied in regards to the information, and disclaim all liability for any loss, damages, errors, or omissions.

Celebrating 25 years of Publishing the Authoritative G20, B20 and G7 Global Briefing Reports

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G L O B A L B R I E F I N G R E P O RT R E V I E W VIETNAM B R A N D E D S T O RY

How Vietnam Keeps Up as One of the Fastest Growing Economies in Asia According to the recent report of the International Monetary Fund (IMF), Vietnam is forecasted to be the top outperforming country of the fastest growing ASEAN economies in 2022. With the advantage of multiple FTAs and a golden population structure, Vietnam is not only a safe and attractive destination for workers and investors during Covid-19, but also a vibrant and friendly environment for innovators and technology experts. Located in the heart of the Southern Key Economic Zone of Vietnam,

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Binh Duong has become the manufacturing powerhouse of Asia, a hot spot for global economic growth. •# 1 Industrial province in FDI attraction • #1 Infrastructure PCI Ranking • 12% National Export Value • 13% National Industrial Production • I ntelligent Community Forum’s Global Top 7 Behind Binh Duong’s remarkable industrialization, Becamex IDC has been the key contributor with an

audacious ambition to transform Vietnam’s leading manufacturing hub into an innovation region. As the leading industrial and urban real estate development group, Becamex IDC drives transformation towards an industrialized and innovative socioeconomic ecosystem in Binh Duong, Vietnam. Becamex IDC provides total industrial solutions for customers to set up manufacturing operations with ease. As the leading industrial and urban real estate development

group, we drive transformation towards an industrialized and innovative socio-economic ecosystem in Binh Duong province, Vietnam. We develop large scale integrated industrial parks and towships that enables a complete work-live-play environment for investors, residents and workforce. With deep local knowledge, insights, and government relations, our comprehensive business ecosystem helps empower customers to set up their business with ease. Sharing prosperity Becamex IDC has been the ideal partner for investors as we provide solutions that address our customers’ pain points. Investors can access high standard integrated industrial park and township development solutions, skilled human resources, and forwardlooking infrastructure development.

Which is why, at Becamex, we strongly believe that our customers’ success is our success.

To elaborate more on Becamex achievement in Industrialization, economic and social development. Throughout 30 years of establishment and on-going development, Becamex has continually evolved through various industrialization models, from production clusters to industrial parks to integrated industrial parks and township. Furthermore, innovation services are invested to offer comprehensive support in generating new business and to upgrading existing ones. Today the Vietnam largest infrastructure developer pioneers to bring investors the most progressive industrialization model through the Science and Technology Industrial Park. Becamex Science and Technology Industrial Park - The Next Generation Industrial Park powered by Innovation Science & Technology Industrial Park (STIP) is Becamex’s answer to innovation and industrial transformation imperatives. With a vision to be an innovation center of the Southern Key Economic Zone, STIP creates an ideal platform for talents and innovation stakeholders to create, innovate and collaborate harmoniously. By providing ease of access to education & training, R&D, technology commercialization and advanced manufacturing facilities, this is where technology- and knowledge-intensive activities take place, converging an ecosystem that comprehensively supports innovation activities. The adoption of science & technology in manufacturing activities here will be amplified and replicated to other

conventional industrial parks, effectively upgrading the manufacturing landscape across the country. The master plan of STIP follows four principles: (1) creating collaborative innovation value chain. STIP is the one-stop destination that accommodates activities from science to industrial production. STIP facilitates the productive co-location of academia, industry, and R&D institutions with special allocations for testbeds and prototyping. The infrastructure and master plan will enable seamless connectivity between zones, sub-zones, and buildings, thus encouraging interaction and cross fertilization between industries, institutions, and people vertically and horizontally. (2) An integrated live-work-play environment which allows communities thrive on easy accessibility to everyday activities and services and environments with a holistic live-work-play lifestyle. (3) Sustainability is the core value of STIP development and its community. Extensive Green and Blue networks benefit communities with cleaner environments and enhanced sustainability features. Neighborhood parks, linear parks and green buffers immerse residents and workers in nature while providing access to recreational facilities, amenities and environmental-friendly architectural features. (4) Placemaking where imagination and co-creation is welcomed and encouraged. A vibrant and engaging public realm in key public areas and a variety of leisure amenities attracts talents and facilitates productive exchanges. Active piloting and application of new technologies & solutions to turn STIP into living labs for urban innovation. →

With a vision to be an innovation center of the Southern Key Economic Zone, STIP creates an ideal platform for talents and innovation stakeholders to create, innovate and collaborate harmoniously. 07

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international events in investment and trade promotion, technology & innovation, sports & culture. • Vibrant Living Cluster: Providing predominantly high-quality residential developments and public facilities.

→ STIP has a strategic location with seamless inter-regional connectivity. At the crossroad of the Future HCM Expressway and National Highway 13, the gateway to other cities and regional industrial zones (about 20 minutes away from Binh Duong New City and about an hour away from Tan Son Nhat International Airport). Inside of STIP there are four well-connected clusters:

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• Innovation Cluster: Including a mix of University Faculties, R&D and residential communities. •P roduction cluster: Including factories, data centers and Business Park. •R ecreation Cluster: Providing leisure activities such as sports center, agri-food visitor centers, central library, and theme parks. The Auditorium and Exhibition Hall is an ideal destination for major

Being Vietnam’s largest industrial park developer group, Becamex has an extensive manufacturing network to support global tech corporations to venture into Vietnam. Becamex has been working closely with prestigious oversea and local institutions to foster industry - academic collaboration and facilitate an abundant supply of high quality, future-ready workforce for its manufacturing ecosystem. Contributed to strengthening the local value chain, Becamex provides extensive support to tech startups and SMEs with the forward-looking innovation & entrepreneurship ecosystem. With the experience and spirit of “driving innovation to accelerating growth”, Becamex is looking forward to welcoming innovative partners to Vietnam and STIP, together creating progress, developing shared prosperity, and shaping sustainable values for the community. ◆

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COP26

GLOBAL BRIEFING REPORT REVIEW ROME_ITALY_30-31 OCTOBER 2021

PEOPLE, PLANET AND PROSPERITY ITALIAN PRIME MINISTER

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G L O B A L B R I E F I N G R E P O RT R E V I E W L E A D I N G T H E WAY F O R C H A N G E B R A N D E D S T O RY

An Industry in Transformation By Jacek Olczak

This is a time like no other for corporations and their leaders. A time when the challenges facing our world require global and ambitious action. Companies must build long-term value for a broad range of stakeholders and help create a better, more sustainable future. This is the measure by which our consumers, our employees, our shareholders, and society judge us. And rightfully so. At Philip Morris International (PMI), we have long embraced this mindset of driving positive change. And we have made significant progress on what we know is the biggest positive impact our company can have on

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society: replacing cigarettes with better alternatives for those men and women who would otherwise continue to smoke. For PMI, science has changed our company and is transforming our industry. Today, PMI is a science and technology-minded company developing and making available to smokers science-backed smoke-free products, which, while not risk-free, are significantly better alternatives to cigarettes for those who would otherwise continue smoking. Our ambition is to convince all adult smokers who don’t quit to replace combustible tobacco products, like

cigarettes, with smoke-free products, which are a much better alternative than continued smoking. Such a dramatic paradigm shift does not happen in a day. For PMI, it has required a complete change to our entire business model. We are essentially becoming an electronicsand technology-driven company and transforming our business from the inside out. Delivering a smoke-free future is not a vague declaration. That statement of mission represents a large-scale, measurable effort to transform our business for the benefit of both the tens of millions of men

and women who currently smoke, and public health more generally. • To date, we have invested more than $8 billion USD in research, development, commercialization, and manufacturing capabilities for smoke-free products. • More than 930 R&D positions, including scientists, technicians, and engineers work to continuously innovate and enhance our smokefree portfolio. • In 2020, 99 percent of our R&D expenditure was dedicated to smokefree products, as well as 76 percent of our commercial expenditure. Our vision of a smoke-free future—a world where cigarettes are replaced by less harmful alternatives that do not involve burning and smoke—is one that we are well on our way to delivering.

• In the quarter ended June 30, 2021, smoke-free products accounted for almost 30 percent of our total net revenues globally. By 2025, we aim to be a majority smoke-free business—generating at least 50 percent of net revenues from these products. • As of June 30, 2021, we estimate that 14.7 million adults worldwide have already switched to our leading smoke-free product and stopped smoking. Many others have switched to a variety of smoke-free alternatives that, like regulated e-cigarettes, are better than continued smoking. This is a profound public health achievement and one that can be further accelerated. And we are not stopping there. The science and technology we have developed and acquired in recent years allow us to look beyond nicotine and expand into products and solutions that will have a positive impact on society. Building on the company’s investment and expertise in aerosol chemistry and physics, device technology, clinical research, and best-in-class preclinical safety and inhalation models, PMI is developing a pipeline focused on inhaled therapeutics for medical and wellness applications. By 2025, it is

our ambition that Beyond Nicotine products will generate at least USD 1 billion in total net revenues. Science, technology, and sustainability are at the heart of PMI’s future. Although we are leaders in other areas of sustainability, too, we recognize at PMI that the most significant impact we can have is to keep working on reducing the harm caused by smoking. That must be our first priority. The best decision is always to quit smoking and nicotine use altogether (or better still, never to start). But we know that in any given year, the majority of people who smoke will continue to do so. Better alternatives now exist for adults who would otherwise continue smoking. These people deserve access to these products and to non-misleading information about them. As a company committed to transformative change, we are doing our part, but we cannot achieve a smoke-free future alone. We ask others—including policymakers—to play their role and help accelerate a long-due shift. We can achieve this ambition much faster if everyone plays their role. In fact, with the right regulatory encouragement and support from civil society, we believe we can see an end to the sale of cigarettes in many countries within 10 to 15 years. ◆

Delivering a smokefree future is not a vague declaration. That statement of mission represents a large-scale, measurable effort to transform our business for the benefit of both the tens of millions of men and women who currently smoke, and public health more generally. 11

G L O B A L B R I E F I N G R E P O RT R E V I E W APEC LEADERS L E A D S T O RY

PM Ardern

Rallies APEC Leaders on COVID Response, Climate Change New Zealand Prime Minister Jacinda Ardern opened the 2021 APEC Economic Leaders’ Meeting on Friday by reaffirming her confidence in multilateral cooperation as leaders look to emerge together from the global crisis and set a new path for APEC as a stronger international forum in tackling the Asia-Pacific’s most important challenges. Under this year’s theme, Join, Work, Grow. Together, Prime Minister Ardern underscored the persistent challenges brought by the pandemic and the benefits of collaborative response by all member economies. “There is no single COVID situation in APEC—every economy’s experience is different, and we’re all adapting to our own circumstances driven by our own unique management of the virus.

But nonetheless we face the same fundamental questions,” said Prime Minister Ardern, who chairs APEC in 2021. “How can we get as many people vaccinated as fast as possible? How do we keep our businesses afloat and our people in jobs? How can we resume safe cross-border travel? How do we accelerate economic recovery? How do we ensure overall that we work together to secure an equitable response?” “Today is also a chance to look to the future, as we seek to emerge from this crisis better than before,” Prime Minister Ardern added. “A future where our businesses flourish and our economies offer opportunities for all, where we embrace a green transformation, combat climate change and harness digital technologies. A future where, once

“How can we get as many people vaccinated as fast as possible? How do we keep our businesses afloat and our people in jobs? How can we resume safe cross-border travel? How do we accelerate economic recovery? How do we ensure overall that we work together to secure an equitable response?” GROUPOFNATIONS.COM

protected by vaccination, we are able to deepen our connections for all our benefit.” Leaders will exchange views on the state of the regional and global economy, and against this backdrop, how member economies can deepen cooperation through APEC to accelerate economic recovery. Leaders will also share significant challenges and opportunities that are present in a post-pandemic world and how they can ensure that all share in the benefits for today and for the future. Parallel focus will be on advancing the collective goal of combatting climate change and integrating actions across APEC, including the forum’s work on finance, structural reform, skills development, disaster risk reduction and trade. Leaders will also consider support for small businesses and the

empowerment of vulnerable communities in driving a sustainable and inclusive recovery for the region. “With all that is going on the world, what better moment than now to renew belief in the power of this institution to make us greater than the sum of our parts,” Prime Minister Ardern said. “I hope we can write a new chapter in APEC’s history, and leave the organization stronger and ready to assist us all in tackling our most important challenges.” APEC Leaders will also seek to endorse a plan that spans the next two decades. The plan will be the foundation to realizing APEC’s vision of an open, dynamic, resilient and peaceful AsiaPacific community by 2040. ◆

G L O B A L B R I E F I N G R E P O RT R E V I E W APEC COMMUNITY

APEC ‘A Powerful Example of Commuity’ Business Forum GROUPOFNATIONS.COM

In a year of unprecedented challenge, New Zealand’s leadership in APEC and the APEC Business Advisory Council (ABAC) has helped the region to weather the storm of the pandemic and secure a better foundation for the future, says the New Zealand International Business Forum (NZIBF). “2021 has been a very tough year for international trade,” said NZIBF Chair Philip Gregan. “Supply chains, markets and growth continue to be disrupted by COVID, and many businesses in New Zealand and around the region have struggled. “A bright spot has been the leadership that New Zealand has demonstrated in its chairing of APEC this year. We express our thanks to the Prime Minister, Minister for Trade and Export Growth and their colleagues, very ably supported by officials led by Vangelis Vitalis and Mark Talbot”. Mr Gregan says that APEC’s collaborative approach to shared challenges has contributed to the resilience of the Asia Pacific region. “APEC Leaders issued a strong statement on 12 November which includes some very practical commitments designed to keep trade flowing, markets open and ensure that opportunities are accessible to all, in the region and around the world. The Aotearoa Plan of Action provides some concrete and verifiable processes to implement APEC’s Putrajaya Vision by 2040”. →

Supply chains, markets and growth continue to be disrupted by COVID, and many businesses in New Zealand and around the region have struggled.

G L O B A L B R I E F I N G R E P O RT R E V I E W APEC COMMUNITY

→ Mr Gregan said that NZIBF particularly welcomed APEC’s strong support for the World Trade Organisation (WTO), ongoing commitment to the concept of the Free Trade Area of the Asia Pacific (FTAAP) as well as new undertakings on digitalising border processes, led by New Zealand Customs. “New Zealand exporters depend on openness, the rule of trade law and the ability to do business efficiently around the world. Giving exporters the choice to submit trade documents electronically has helped them overcome pandemic disruptions in many of our markets. New Zealand was successful in encouraging APEC economies to lock in those digital processes. Paperless trading can save time, money and hassle for businesses across the region

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New Zealand exporters depend on openness, the rule of trade law and the ability to do business efficiently around the world. – now and into the future. This is a great outcome for New Zealand exporters” Mr Gregan added. NZIBF has played a role in APEC this year by providing advice and support to the New Zealand Members of ABAC. “We were very proud to support New Zealand’s chairing of ABAC this year. ABAC Chair Rachel Taulelei, strongly supported by our Executive Director

Stephen Jacobi and his team, showed exemplary leadership. The year’s work culminated in an outstanding Report to Leaders calling for ambitious outcomes on regional economic integration, sustainability, the digital economy and greater inclusion for smaller businesses, women and Indigenous people. “New Zealand businesses are used to adversity, but this has been a truly testing year. It has never been more important to continue to champion open markets, reject protectionism and actively support sustainability and inclusion. We will continue to work closely with APEC, ABAC and our partners around the region to build a more seamless, resilient and inclusive Asia Pacific community,” Mr Gregan concluded. ◆

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G L O B A L B R I E F I N G R E P O RT APEC HAND OVER

APEC CEO Summit Closes, with a Hand Over to Next Year’s Host Thailand APEC CEO Summit 2021 Chair

Barbara Chapman

The two day, fully virtual, APEC CEO Summit has come to a close, with New Zealand Chair, Barbara Chapman handing the Summit hosting baton to Thailand’s Dr Poj Aramwattananont. The CEO Summit is one of the world’s biggest

This has been a truly compelling two days of content; of innovative and thought-provoking ideas; and important connections.

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business events and is hosted on rotate by one of the region’s 21 economies. “Next year Thailand takes over as the Chair of APEC and we very much look forward to the possibility of a CEO Summit where delegates may once again be able to meet in person” says Barbara Chapman. This year the Summit has been a fully virtual event, broadcast from Auckland’s Aotea Centre, with over 1000 delegates tuning in from around the world. Ms Chapman thanked the APEC CEO Summit Committee and the Executive Director Jonathan Alver and his team who made this unique CEO Summit

possible. She congratulated them all on the strong and engaging content which included world leaders, keynote speeches from leading academics, and global CEOs, inspirational New Zealand innovation stories and panel discussions on themes such as the primacy of trust, business as a force for good and the sustainability imperative. Barbara Chapman acknowledged the support of Knowledge Partner for this year’s CEO Summit, PwC, and Premier Partners: Contact Energy, Fonterra, Microsoft, and Westpac New Zealand. “This has been a truly compelling two days of content; of innovative and thought-provoking ideas; and important connections” says Barbara Chapman. ◆

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G L O B A L B R I E F I N G R E P O RT R E V I E W APEC LEADERS

Global Experts Speak on the Big Issues at APEC CEO Summit 2021 Over two days in November 2021, some of the world’s most influential political, business and thought leaders came together for the APEC CEO Summit 2021. They discussed ways the region can learn from each other and work together and ensure it emerges from the pandemic stronger than ever. The virtual Summit addressed challenges and opportunities presented by the current situation, with a focus on five themes: the state of the world with, and post COVID; the digital disruption opportunity; the primacy of trust; the future of energy; and the sustainability imperative.

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The state of the world with and post COVID The Summit was set at a complicated economic period as the world rebuilds in the wake of the pandemic. Keynotes from PwC Global Chair Bob Moritz and OECD Secretary-General Mathias Cormann, along with Dr Alan Bollard’s panel discussion on the economic state of the world, helped to decipher the recovery and set the scene for the Summit. While the tone from speakers was optimistic, they cautioned the economy is still significantly impacted by the ongoing disruption of the pandemic. There was, however, a clear consensus from both business and

political leaders that overall, the recovery is providing the region tremendous opportunity. New Zealand Prime Minister Jacinda Ardern, this year’s APEC Chair, said in her opening address: “We have a saying in New Zealand. He rau ringa e oti ai – many hands make light work. “The heavy load of a global pandemic that in equal measure threatens lives and livelihoods has been countered only with an extraordinary commitment to unity, partnership and progress in spite of the challenges.” Former United Nations Development Programme Administrator Helen Clark

reminded delegates that they must work together and grab hold of the positives that can come from standing up to a crisis. “We can strengthen our national systems for pandemic preparedness and response, and we can strengthen the global systems. All of that is good for business,” she said. The digital disruption opportunity While all economies across the APEC region have been impacted by the pandemic, there is clear evidence that those with digital readiness endured the pandemic and rebounded better. Economies with both physical and digital infrastructure have been faster to deploy digital tools in the fight against Covid-19 – including contact tracing, proof of vaccine and digital trade facilitation – which has enabled them to keep their economies more open. The pandemic acted as an accelerant and removed hurdles for innovation. Five years’ worth of technology adoption occurred within the first eight weeks of the pandemic, and the importance of its role as an enabler of trade was reiterated in almost every session at the Summit. In her keynote address, technology entrepreneur Amber Mac cautioned CEOs that “it may feel like there is a thick line between what you do and what big tech does, but as you embrace a tech-first strategy – an obvious path to succeed in today’s digital world – that line will soon begin to blur.” Companies, government, and the public sector were urged to continue to seize the opportunities from digitalisation, with a heavy emphasis that the economic recovery post-COVID will continue to be digitally enabled. Micro, small and medium enterprises

(MSMEs) are particularly vulnerable to the economic impacts of the pandemic. With MSMEs making up over 97 per cent of all enterprises in the region and employing over half the workforce, digital adoption and access to innovation will be essential for all businesses. This was highlighted by Singapore Prime Minister Lee Hsien Loong, who stressed that most SMEs are not as digitally prepared as large businesses, and risk being left behind. He said APEC economies must help SMEs and their workers make the digital transition. The primacy of trust Along with digital adoption, the pandemic has also accelerated the erosion of trust around the world. There is an epidemic of misinformation and widespread mistrust of societal institutions and leaders around the world. This extends to business, and as trust expert and public relations leader Richard Edelman told the Summit, earning trust has never been more important – or more challenging. Edelman explained how consumers, employees and other broad stakeholders are paying more attention to what businesses say and do, and how they respond to issues including climate change, racial injustice, and other societal issues. This call for business to be a force for good in the world was repeated in a keynote address by international human rights lawyer Amal Clooney. She told delegates that we no longer live in a world where businesses can say ‘human rights are none of our business’. “Businesses, big multinational corporations, and tech companies in particular are a key part of our multilateral world of decision-makers,

We have a saying in New Zealand. He rau ringa e oti ai – many hands make light work. The heavy load of a global pandemic that in equal measure threatens lives and livelihoods has been countered only with an extraordinary commitment to unity, partnership and progress in spite of the challenges.” Jacinda Ardern, New Zealand Prime Minister

and each one will decide whether to be a force for good or complicit in abuses of power.” The sustainability imperative The Summit was unique this year, with a political leader from outside the 21 APEC economies asked to give a perspective from outside the region. The conversation between [then] German Chancellor Angela Merkel and Prime Minister Jacinda Ardern traversed the state of the world, COVID-19, digital innovation, sustainability and leadership. One of the key points raised was the need to take the lessons from COVID-19 and to apply them to other critical areas. The pandemic forced governments and businesses to act with urgency and in partnership with different sectors and communities who know their people best. This same principle could be applied to manage other world problems, including climate change, scaling the uptake of renewable energy, and dealing with pressing environmental and biodiversity issues. “Never before have we been able to realise how interconnected we are as a global community,” said Merkel. “That sense of how small our globe actually is when it looks to the spread of such a virus should continue to guide us when we tackle issues like biodiversity and climate protection.” This message was echoed by Canadian environmentalist Dr David Suzuki, who told attendees that the planet is “at code red – and that spells trouble for humans,” and that nature pays no attention to human laws and borders. Viet Nam President Nguyen Xuân Phúc affirmed the strategic importance of sustainable development and climate change response for the region. A similar call was echoed by President of the People’s Republic of China, Xi Jinping. “We in the Asia-Pacific should make its post-pandemic recovery a green one and take the lead in making a sciencebased response to climate change,” he told the Summit – just hours after announcing a plan with the US to work together on cutting greenhouse gas emissions in the crucial next decade. → 21

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The future of energy The APEC region demands around 60 per cent of the world’s energy consumption, and transitioning to new forms of clean energy production and consumption will be an essential part of meeting our climate change challenges. In her keynote address on future energy challenges, Tesla Chair Robyn Denholm told APEC economies that they must act now to accelerate their transition to renewable energy to power utilities, vehicles, communities and homes, adding, we all succeed or fail together in the race to zero emissions. In the panel on future energy solutions, Blackrock Managing Director Renewable Power Group, Asia Pacific, Valerie Speth, told delegates that there is no topic ranking higher than climate change and decarbonisation among her colleagues and investors. “It is the best investment opportunity for the coming decades,” she said. A similar message was shared by President of the Republic of Korea, Moon Jae-in. His administration has closed domestic coal-fired power plants, stopped permits for new ones and cut public funding for new overseas coal power plants. GROUPOFNATIONS.COM

When we start to be in the game of business, we take those values and we apply them to the long-term, not the short. Looking to the future The Asia-Pacific region is home to 270 million indigenous people, making up around 70 per cent of the world’s indigenous population. Yet the full potential of the community’s contribution to the region’s economy remains largely untapped and was disproportionately impacted by the pandemic. The panel on the indigenous economy featured speakers from Aotearoa New Zealand, Canada and Australia, and discussed indigenous leadership and the ethos of putting culture at the centre of decision making. Rangimarie Hunia, Chief Executive Ngati Whatua Orakei Whai Maia, told the Summit that indigenous people have values and approaches that are ancient. “When we start to be in the game of

business, we take those values and we apply them to the long-term, not the short,” she said. “When I hear things like planet over profit, that has been our way of doing since time immemorial.” Continuing the theme of ‘looking to the future’ was a focus on young people, who make up one-third of the region’s population. The Summit had the most ever young people attend as delegates, as well as many younger voices featured in keynotes and panels throughout. One of the most inspiring keynote addresses came from Jerome Foster II – aged just 19 and appointed to US President Joe Biden’s Environmental Justice Advisory Council. He encouraged other young people attending the Summit to know that they “have so much potential… this is the perfect time for you to really step into that, and to merge your passion with what you want to do for a living. “As a young person oftentimes it feels like you’re inheriting an Earth that is completely backwards,” he said. “But it is now our role to figure out how we are going to make that better.” It is the next generation, after all, that are the biggest stakeholders in the work that APEC is doing. ◆

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Prime Minister Concludes APEC Economic Leaders’ Summit

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Prime Minister Jacinda Ardern overnight chaired the APEC Economic Leaders’ Meeting where Leaders from 21 APEC economies agreed to the new Aotearoa Plan of Action. “APEC Leaders are more determined than ever to work together to defeat COVID-19, accelerate the region’s economic recovery, respond to climate change, and build growth that is inclusive of all our people,” Jacinda Ardern said. “As we continue to recover from this global crisis, Leaders acknowledged the opportunity to reset. The new Aotearoa Plan of Action, agreed to by all Leaders, sets out a plan for APEC’s work through until 2040. “The Agenda stays true to APEC’s original mission of growing trade and our economies. While it underpins prosperity in the short term, Leaders have also used the Aotearoa Plan of Action to focus on the choices that will support the Asia-Pacific’s future generations, like decarbonisation and empowering our Indigenous peoples. “As New Zealand’s leadership of APEC in 2021 draws to a close, APEC has united the region in a coordinated response to the biggest economic downturn in 75 years, with a series of results that matter to New Zealanders and the region,” Jacinda Ardern said. APEC Leaders also issued a joint declaration which recognised that in New Zealand’s host year APEC has:

• Rejected vaccine nationalism, with APEC members lowering tariffs on vaccines and related products to combat COVID-19, speeding them through customs, and shunning export bans • Digitised trade processes to reduce paperwork and save businesses valuable time and money, with most of APEC making these measures permanent • Taken practical steps to transition away from carbon, with APEC agreeing a plan to halt the increase in subsidies to fossil fuels that today amount to NZ$500 billion a year • Highlighted Indigenous economies as a driver for recovery, bringing the perspective of the region’s 270 million Indigenous people inside APEC prominently for the first time ever • Committed to find ways to cut red tape, reduce the cost of doing business, and make it faster to start a business. In addition to hosting the APEC Economic Leaders’ Meeting, Prime Minister Ardern spoke at the APEC CEO Summit and the Voices of the Future forum. Together with Rachel Taulelei, she chaired a meeting of APEC Leaders with the business community. Between the Prime Minister and APEC Ministers, bilateral meetings have been held with all APEC economies across the 2021 host year. ◆

“As New Zealand’s leadership of APEC in 2021 draws to a close, APEC has united the region in a coordinated response to the biggest economic downturn in 75 years, with a series of results that matter to New Zealanders and the region.” 25

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Digital Economy The digital economy

President of Indonesia

Joko Widodo

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and micro, small and medium-sized enterprises must become a new source of growth for an inclusive, resilient and sustainable economy, the President of Indonesia, His Excellency Joko Widodo, told the APEC CEO Summit. Introduced by Asia New Zealand Foundation Chair Dame Fran Wilde, President Widodo said the digital transformation came with opportunities, challenges and risks. The pace of Indonesia’s digital acceleration during COVID 19 is estimated to equate to 10 year’s progress in normal times, with around 8.4 million Indonesian MSMEs joining digital platforms as online sales grew. Digital transformation can also increase access to health services and promote the growth and development of start-ups in the health sector. The Indonesian Government continues to foster digital acceleration in sectors to accelerate economic recovery and build resilience against disasters, he said. “We need to narrow the digital divide between APEC economies and domestically. We need to pay special attention to capacity building and quality infrastructure, as well as accessibility and affordability of the digital economy.” “Indonesia is eager to cooperate with APEC member economies and with the business communities in the Asia Pacific region.” ◆

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Silence ‘Is Not an Option’ for CEOs Richard Edelman, CEO of global communications firm Edelman, spoke on the second day of the APEC CEO Summit about the trust landscape, and how in recent years business has become the most trusted institution across the world. Introduced by PwC Chair Keren Blakey, Mr Edelman described how government and the media now trail behind business in a trust survey from 28 countries around the world. “Business is the most trusted because it’s the only one seen as both ethical and competent. Historically it was competent but not ethical,” he told CEOs. One of the major trends he has seen over the past 20 years has been a dispersion of authority away from elites. “We saw a decline in 2008 with the great recession, we then saw in 2016 and 2017 a crisis in trust related to populism.” GROUPOFNATIONS.COM

Historically, he said, people trusted their traditional societal leaders such as CEOs, journalists and political leaders but now it’s becoming experts like scientists, local employers, and peers. Employee newsletters are more trusted than the mainstream media, and societal leaders are not trusted to do what is right. -And that means that “employees are the most important stakeholder for the first time. Historically this has been investors, clients and customers. But now how you treat your employees becomes a vital part of whether you’re able to sell products, and whether you’re able to attract talent.” He said loss of trust in the media was a “sad story.” “It’s a bit like an aeroplane running out of gas. People say they no longer read mainstream media, they rely on social media even if they don’t trust it. And ten times more people share fake news than real news.” More and more, the labour force is choosing to work for employers that reflect their values, and CEOs ignore this at their peril, Mr Edelman remarked. He said that people will leave an employer if they disagree with the company’s values, and the majority of those surveyed choose employment based on their beliefs. “One in three have left a job because you remain silent. Silence is not an option. CEOs have to speak up and represent the best of the world.” Mr Edelman concluded his presentation by urging CEOs to speak up on challenging issues such as human rights and sustainability, and embrace the idea of allowing employees to speak up too. “Make them feel you are advocating for them, then they will stand with you.” ◆

More and more, the labour force is choosing to work for employers that reflect their values, and CEOs ignore this at their peril.

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G L O B A L B R I E F I N G R E P O RT R E V I E W BUSINESS

The Next Focus for Business JONATHAN HAIDT Executives balancing the needs of a wide range of stakeholders including Gen Z workers are in a battle of ‘all against all’, American social psychologist Jonathan Haidt told the APEC CEO Summit on its second day. Professor Haidt said the corporate world had moved from economist Milton Friedman’s model of shareholder primacy to a stakeholder model where executives were expected to balance the needs of many different groups, including customers, shareholders and their staff. The timing was bad, coinciding with two megatrends - the evolution of social media into an extremely toxic GROUPOFNATIONS.COM

form and the arrival of Gen Z, born after 1997, he said. Quoting a New York Times headline ‘The 37 year olds are now afraid of the 23 year olds who work for them’, Professor Haidt said the effects had been felt since 2018. “I’m talking about a small number who are empowered by social media to inflict tremendous damage on anyone they aim their hostility at. I would say Twitter in particular, Slack and other channels, have basically taken intimidation and democratised it, incentivised it and freed it from accountability. “I certainly believe business can be a force for good but I worry what

we’ve done by moving to a stakeholder model just as we entered this peak intensity of social media polarisation and Gen Z activism is that we now have incoherence and a lot of really bad policies being made.” There is no reasonable, rational way for executives to balance expectations. “It doesn’t work. Because in real life it’s a battle of all against all. Executives are saying it’s just so incredibly hard now, so much harder than it was five years ago.” “We’re seeing companies pushing back saying this is crazy. We’re here to make a product. We’re here to serve our customers. We’re not here to fight social issue after social issue.”

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“I certainly believe business can be a force for good but I worry what we’ve done by moving to a stakeholder model just as we entered this peak intensity of social media polarisation and Gen Z activism is that we now have incoherence and a lot of really bad policies being made. At its best, a free market society is a game that you can only win by making other people better off, Professor Haidt said quoting philosopher David Schmidtz. “There’s a lot we can do to make business be a force for good by

minimising the harm it causes incidentally or by design through free market failures - externalities or costs imposed on others and monopoly power which can be broken up by regulators; asymmetrical information where a company can use vast

information to manipulate customers and exploitation of public goods,” he said. “That takes intelligent regulation, social pressure, journalism exposing market failures, trade associations trying to get ahead of things and saying we want our industry to be respected and liked and treated well by regulators. Every society has needs for dynamism characterised by innovation, raised overall wealth, and decency which is about fairness, impacts on civil rights, the environment, he said. “In this way we can keep dynamism and decency even in the age of social media and political polarisation.” ◆ 31

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‘We all Need to Take Action on Climate Change’

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Air Asia CEO Tony Fernandes talked with Tian Wei, China Global Television Network host, about his views on sustainability, and said airline companies are not the only organisations that need to take action on climate change. “We all have to play a part; private industry, government and the public,” he said on the second day of the APEC CEO Summit 2021. He said the airline industry gets enormous amounts of press and negativity. “But actually our emissions are far, far less than say the car industry or the power industry.” Mr Fernandes said that Air Asia has brought in a carbon offset charge so passengers can do their bit, and that education of customers is very important. “The public needs to be educated much more about carbon emissions, about plastic, lots of things. But I think private industry can’t do it by itself. And government can’t do it by itself either. “I think governments have to play a part, as a lot of fuel is wasted in air traffic control and airport planning. So it needs to be the whole aviation ecosystem which takes part in trying to reduce emissions, it isn’t just the airline.” He said the aviation industry was stuck with the same design and combustible fuel they’ve had for about 80 years, and though improvements had been made reducing fuel use and noise emissions, “I’m not sure that I’ll be CEO when we have an electric plane.” On the subject of wider sustainability, Mr Fernandes argued that sustainability should not just be about the environment and climate change. Mr Fernandes was critical of governments in their response to COVID-19, commenting that “if governments don’t get their act together, tourism is finished. Who’s going to fly when you have to do six PCR tests?” He said because it was a global issue, governments should have a worldwide standard for dealing with COVID-19, and that the response has favoured protecting public health rather than balancing the needs of the economy. “So I hope governments will be more coordinated within themselves.” Mr Fernandes also touched on diversity and mental health as being important aspects that APEC should pay attention to. ◆

The public needs to be educated much more about carbon emissions, about plastic, lots of things. But I think private industry can’t do it by itself. And government can’t do it by itself either.

G L O B A L B R I E F I N G R E P O RT R E V I E W FOOD

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Global food producers are putting sustainability at the centre of their business, says Food Industry Asia Executive Director Matt Kovac. Crop and animal production, forestry and food production processes contribute an estimated quarter to a third of total global greenhouse gas emissions and were also major users of freshwater resources. Food producers recognised the need for change, he said. In 30 years’ time it’s estimated that the world’s population will reach more than 9 billion – in 2020 it was around 7.8 billion – which could mean “more food will need to be produced using less of everything, with the added challenge that sustainable food products still need to be nutrient dense to allow people to have that balanced, diverse diet.” “We define it (sustainable food production) as a method that uses processes and systems that are nonpolluting as much as we possibly can do, conserving non-renewable energy and natural resources. That has to be economically efficient and safe for workers and consumers, and all the

while not compromising the needs of future generations.” Forward-leaning companies were making progress, he said. Danone had invested NZD$40 million in achieving 100% carbon neutrality in one of its New Zealand plants. Unilever planned to cut food waste from factory to shelf in half by 2025, five years sooner than a previous commitment to its shareholders. Nestle was working with Food industry Asia and other companies to establish a circular materials laboratory in Singapore, focusing on research into next generation environmentally sustainable packaging. There was no one simple, set of principles as yet to determine whether one product was more environmentally sustainable than another, though a labelling scheme was being piloted in the European Union, he said. Mr Kovac said collaboration between government and the private sector was the way forward: “These are the people we need to bring together to work collaboratively on solutions future generations will be eternally grateful for.” ◆

We define it (sustainable food production) as a method that uses processes and systems that are non-polluting as much as we possibly can do, conserving non-renewable energy and natural resources. 35

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APEC LEADERS DECLARATION We, the Economic Leaders of APEC met on 12 November 2021. The COVID-19 pandemic continues to take lives and impact livelihoods. The evolving nature of the COVID-19 pandemic and its variants will create ongoing uncertainty and an uneven economic recovery across the AsiaPacific region. Responding to this deepest of challenges has been a top priority in 2021. In this regard, we are taking steps to ensure growth rebounds quickly and to boost the global economic recovery. This year APEC economies have reaffirmed their commitment to join together; to respond to the immediate crisis generated by the pandemic through urgent work; and to strengthen our cooperation so that our region can return to growth in a way that is more innovative, inclusive and sustainable. Responding to COVID-19 In July, we met to discuss APEC’s response to the COVID-19 pandemic. We recognised the inequities in widespread access to COVID-19 vaccines, and therefore, we continue to strongly support equitable access to safe, effective, quality-assured and affordable COVID-19 vaccines, diagnostics, therapeutics, and other related essential medical products. Because nobody is safe until everyone is safe, we are determined to ensure extensive immunisation of our people against COVID-19 as a global public good. It remains a priority that we GROUPOFNATIONS.COM

expand vaccine manufacture and supply. In this context, we have demonstrated that trade and investment is a critical enabler for addressing the impact of the COVID-19 pandemic and ensuring our economies recover stronger. APEC members will continue work to: • Support global efforts to share vaccines equitably and expand vaccine manufacture and supply, including through the voluntary transfer of vaccine production technologies on mutually agreed terms. • Facilitate trade in COVID-19 vaccines and related essential medical products, including by embedding digitalised trade facilitation measures and implementing best practices in customs procedures.

We support deeper regional and international collaboration on COVID-19, in a way that puts people at the centre of our response through coordinated, multisectoral approaches and consultation.

• Build understanding and transparency of the types of border measures taken in response to the pandemic and encourage the elimination of unnecessary export restrictions and other non-tariff barriers. • Voluntarily reduce the cost of COVID-19 vaccines and related essential COVID-19 medical goods. • Ensure that the TRIPS Agreement supports efforts to research, develop, invest in, manufacture, and distribute, more COVID-19 vaccines. • Seek a pragmatic, effective, and forward-looking multilateral response to COVID-19 at the 12th World Trade Organization (WTO) Ministerial Conference at the end of this month. Much of the Asia-Pacific’s growth has been stimulated by the ability of people to move across borders for business, tourism, and education. As a result of restrictions on the cross-border movement of people due to the COVID-19 pandemic, unrealised economic activity losses have been substantial. As we each look at reopening without undermining efforts to prevent the spread of COVID-19, we support APEC playing a greater role in promoting information exchange and coordination measures related to cross-border movement of people, including in relation to air and maritime crew, and COVID-19 testing and vaccination certificates. We will work towards tangible outcomes in 2022.

We are strengthening our health systems to respond to the COVID-19 pandemic and prepare for future health threats. We recognise the importance of maintaining ongoing essential health services, improving digital solutions, pursuing increased health equity and our goal to achieve universal health coverage. We support deeper regional and international collaboration on COVID-19, in a way that puts people at the centre of our response through coordinated, multisectoral approaches and consultation. The Road to Recovery While an immediate response to the health challenges posed by the crisis remains essential, we are also now cooperating on policy responses to the significant economic, social and environmental challenges we will face in coming years. We have the opportunity to ensure an economic recovery that includes all our people, supports a more sustainable planet, and ensures that the Asia-Pacific remains the world’s most dynamic and interconnected regional economy. Our macroeconomic policies have played a key role in responding to the impacts of the COVID-19 pandemic, preserving jobs and livelihoods, funding necessary public services and supporting those most affected by the pandemic. With the COVID-19 crisis far from over, we are determined to use all available macroeconomic tools to address the adverse consequences of COVID-19 and sustain economic recovery, while preserving long-term fiscal sustainability. Our economic recovery will be built on a stable, inclusive, sustainable and resilient macroeconomic environment that supports innovation, dynamism and improved productivity. In this respect, we welcome the work of APEC Finance Ministers and in particular, the New Strategy for the Implementation of the Cebu Action Plan, which contributes to achieving our goal of a more financially integrated, transparent, resilient, and connected APEC. We welcome the historic agreement on a more stable and fairer international tax architecture reached in October. We strongly reaffirm our commitment to promoting tax certainty and → 37

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→ tackling tax avoidance and evasion in the APEC region. Structural reform will also be a critical tool for promoting economic recovery. We welcome the Enhanced APEC Agenda for Structural Reform (EAASR), which provides for collaboration on growth-focused reforms designed to be inclusive, resilient, sustainable and innovation-friendly. The pandemic has highlighted how structural reform of services sectors can be a powerful enabler of economic growth and inclusion. We note the uneven progress in increasing services competitiveness in the region and in delivering a more open and predictable environment for access to services markets. We commit to accelerate work in response to the mid-term review with the aim of fully implementing the APEC Services Competitiveness Roadmap (ASCR) by 2025. We have witnessed a remarkable acceleration in digital adoption and transformation across our economies. To sustain this enormous growth potential, we will accelerate the implementation of the APEC Internet and Digital Economy Roadmap (AIDER), further develop digital infrastructure, encourage the development and application of new technologies, and work towards a digital business environment that is open, fair and inclusive, including by narrowing the digital divide. We will also strive to implement structural reforms and increase information sharing regarding our respective domestic policies and practices in support of digital connectivity and inclusion. We acknowledge the key importance of interoperability of digital systems and tools across the region. We will also cooperate on facilitating the flow of data, and strengthen consumer and business trust in digital transactions. Trade should be a pillar for the development and future prosperity of all our people. At this time of extraordinary disruption, the rulesbased multilateral trading system, with the WTO at its core, can play an important role in economic recovery. We will engage constructively to ensure MC12 is a success and delivers concrete outcomes. GROUPOFNATIONS.COM

We will cooperate to enhance further the role of the WTO in establishing rules that support a free, open, fair, non-discriminatory, transparent and predictable trade and investment environment. This approach is at the core of our long-standing commitment to the WTO. We are committed to working together to shape a responsive, relevant and revitalised WTO, in particular through the necessary reform of the WTO, with a view to improving all its functions. Seized of the opportunity presented by MC12, our economies will work together with the wider WTO membership to advance efforts to ensure the organization is delivering for our economies in the twenty-first century. We will advance economic integration in the region in a manner that is market-driven. We support ongoing efforts to conclude, ratify, implement and upgrade trade agreements in the region that benefit our people and our businesses. In this context, we will advance the APEC Free Trade Area of

the Asia-Pacific (FTAAP) agenda in line with implementing the Lima Declaration, to contribute to high quality and comprehensive regional undertakings. We also note that APEC Business Advisory Council considers the realisation of FTAAP its preeminent economic priority. We will intensify efforts to ensure goods continue to flow even under challenging circumstances. APEC’s work on resilient supply chains, quality infrastructure development and investment, as well as on ports cooperation are essential components of this work. We will continue to implement the APEC Connectivity Blueprint to further improve physical, institutional and people-to-people connectivity. We are encouraged by APEC work taking place to strengthen customs cooperation, and to digitalise border processes and increase the uptake of paperless trading. This work contributes to accelerating APEC’s efforts to implement the WTO Trade Facilitation Agreement.

We will cooperate to enhance further the role of the WTO in establishing rules that support a free, open, fair, non-discriminatory, transparent and predictable trade and investment environment. We will strive to ensure our recovery efforts are free from the serious threats of corruption, fraud, waste, and abuse. We will continue to deny safe haven to corruption offenders and their assets. We are committed to effective, practical, and timely cooperation between competent authorities. We will promote transparency, accountability, and integrity as a basis for preventing and combatting corruption. Our Commitment to Sustainability and Inclusion In 2021, the world continues to confront unprecedented challenges posed by the impacts of climate change. We acknowledge the need for urgent and concrete action to transition to a climate-resilient future global economy and appreciate net zero or carbon neutrality commitments in this regard. We commit to work together to ensure that our economic and environmental policies are mutually supportive. APEC has made some progress in strengthening the region’s capacity to

adopt renewable energy and other environmentally sound technologies, as part of sustainable energy transitions that reduce our dependence on fossil fuels. In this context, we will continue to work together to support energy resilience, access, and security in the region. We acknowledge the importance of stable energy markets, and supporting clean energy transitions. Building on this, we commit to leverage APEC’s role as an incubator of ideas and capacity building to tackle climate change. We will further integrate action on climate change across relevant APEC workstreams. We need to support the wellbeing and security of all our people, and their equitable participation in the economy, so that no one is left behind. Recognising the disproportionate impacts of COVID-19 on MSMEs, women and others with untapped economic potential, we are also taking action to drive a more inclusive economic recovery. The La Serena Roadmap for Women and Inclusive Growth is bringing women’s economic empowerment to the foreground, with a significant number of initiatives currently underway across APEC. We support the full and accelerated implementation of this roadmap. APEC has also paid particular attention to the economic empowerment of other groups with untapped economic potential. This year this has included Indigenous Peoples and those in rural and remote areas, among others. We will continue to deepen our cooperation in these areas, where relevant, to ensure their access to economic opportunities, including to improve access to global markets, and encourage the transition of economic actors from the informal to the formal economy. We have provided unprecedented levels of support to all our businesses, including micro, small and medium enterprises (MSMEs), to help them navigate the crisis. We will continue supporting MSME digital empowerment by tackling systemic barriers to entrepreneurship and reinforcing capacity building. We will also deepen our efforts to respond to the impact of the pandemic on labour market participation and the future of work. Digital connectivity and innovation

are critical across our efforts towards an inclusive, resilient and sustainable recovery. We need to continue to narrow the digital divide by promoting digital skills, encouraging the adoption of innovative working methods, expanding access to digital tools and infrastructure, and ensuring our MSMEs and start-ups are able to harness new and emerging technologies and digital eco-systems. We welcome the Food Security Roadmap Towards 2030. This will guide APEC’s work towards our goal of sufficient, safe, nutritious, accessible and affordable food for all. We support efforts to reduce food waste and loss. We will also continue to take concrete measures to implement the APEC Roadmap on Combatting Illegal, Unreported and Unregulated (IUU) Fishing. Looking forward Last year we adopted the Putrajaya Vision 2040, which will guide our work for the next twenty years. We endorse the Aotearoa Plan of Action, which will be key to implementing this Vision. This will inject new momentum into APEC, at a time when our region faces significant challenges. It demonstrates the confidence we have in sharing our individual approaches, working together collectively where we can, and being willing and open to ideas addressing new challenges. The Aotearoa Plan of Action is designed to be a living document. We will monitor our progress and update it every five years. All of this in pursuit of our Vision: an open, dynamic, resilient and peaceful Asia-Pacific community by 2040, for the prosperity of all our people and future generations. We welcome the outcomes of the 2021 APEC Ministerial Meeting as well as the 2021 sectoral Ministerial Meetings for Trade, Structural Reform, Food Security, Health, Women and the Economy, Small and Medium Enterprises, and Finance. We thank New Zealand for hosting APEC in 2021 and we look forward to APEC in 2022, which will be hosted by Thailand. ◆

Haumi e, Huie, Taiki e Join, Work, Grow. Together 39

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APEC DECLARATION Aotearoa Plan of Action A PLAN FOR IMPLEMENTING THE PUTRAJAYA VISION 2040 Our vision is an open, dynamic, resilient and peaceful Asia-Pacific community by 2040, for the prosperity of all our people and future generations. In implementing the Putrajaya Vision 2040, economies will build on APEC’s founding documents, including the 1994 Bogor Goals and the 1995 Osaka Action Agenda. APEC economies remain committed to APEC’s mission and its voluntary, non-binding, consensusbuilding principles, and APEC economies will advance the APEC Putrajaya Vision 2040 with a spirit of equal partnership, shared responsibility, mutual respect, common interest, and common benefit. This Aotearoa Plan of Action sets out individual and collective actions towards achieving our Vision, along with how we will evaluate our progress. Economies will review and adapt the Aotearoa Plan of Action over time to ensure it remains comprehensive, balanced and relevant across all elements of our Vision. It is intended to be a living document. This Aotearoa Plan of Action does not preclude other APEC work to implement the APEC Putrajaya Vision 2040. THREE ECONOMIC DRIVERS TRADE AND INVESTMENT: Objective: “To ensure that the Asia-Pacific remains the world’s most dynamic and interconnected regional economy, we acknowledge the importance of, and will continue to work together to deliver, a free, GROUPOFNATIONS.COM

open, fair, non-discriminatory, transparent and predictable trade and investment environment.” Evaluation of progress: APEC’s trade and investment environment is free, open, fair, non-discriminatory, transparent and predictable. Individual Actions: Economies will take actions to liberalise trade and investment in a manner that it is free, open, fair, non-discriminatory, transparent and predictable. Collective Actions: Economies will: • Progress liberalisation of trade in goods by reducing unnecessary barriers, strengthening trade facilitation, and fostering regulatory reform; • Progress services liberalisation, facilitation and cooperation, including by implementing the APEC Services Competitiveness Roadmap; • Promote the flow of quality investment through steps such as work on investmentfacilitation and liberalisation; • Promote adequate and effective protection and enforcement of intellectual property, including by providing capacity building, particularly to spur economic development and innovation; and • Increase trade predictability and openness by improving economies’ transparency through trade measures and policies.

Objective: “We reaffirm our support for agreed upon rules of the WTO in delivering a well-functioning multilateral trading system and promoting the stability and predictability of international trade flows” Evaluation of progress: Growth of international trade flows in the region become more stable and predictable including with increased coverage of WTO rules, through APEC members’ effective and transparent implementation of existing and future commitments. Individual Actions: Economies will implement their WTO commitments. Where appropriate, economies will also seek to accelerate their implementation, go beyond them, and work on ways to further promote the stability and predictability of trade flows. Collective Actions: Economies will: • Support APEC’s role as an incubator of ideas by advancing new approaches that help deliver a well-functioning multilateral trading system, with the WTO at its core; • Support progress of negotiations at the WTO to deliver a trade and investment environment that is free, open, fair, non-discriminatory, transparent and predictable; • Support implementation of WTO disciplines arising from negotiations, including in prospective areas such as harmful fisheries subsidies, and agriculture negotiations; →

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• Encourage, as appropriate, WTO members’ discussions towards necessary reform of the WTO across all its functions; and • Advance capacity building programmes to support the implementation of and adherence to WTO rules, including transparency and notification obligations. Objective: “We will further advance the Bogor Goals and economic integration in the region in a manner that is market-driven, including through the work on the Free Trade Area of the Asia-Pacific (FTAAP) agenda which contributes to high standard and comprehensive regional undertakings.” Evaluation of progress: Economic integration occurs in the region by advancing the unfinished business of the Bogor Goals in a manner that is market-driven and through the development of high standard and comprehensive regional undertakings. Individual Actions: Economies will continue to support ongoing efforts to conclude, ratify, implement and upgrade high standard and comprehensive trade agreements as appropriate. Collective Actions: Economies will: Complete the unfinished business of the Bogor Goals and further deepen economic integration in the region in a manner that is market-driven; • Effectively advance efforts on the Free Trade Area of the Asia-Pacific (FTAAP) agenda, consistent with the Lima Declaration; • Strengthen APEC’s key role as an incubator of ideas on trade and investment issues in the region; • Advance capacity building programmes and cooperate on best practice for the development of and participation in high standard regional undertakings; and • Carry out discussions on, and studies into, areas of convergence and divergence across all chapters of trade agreements in the region that contribute to high standard and comprehensive undertakings.

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Objective: “We will promote seamless connectivity, resilient supply chains and responsible business conduct.” Evaluation of progress: To promote seamless connectivity, resilient supply chains and responsible business conduct, APEC economies will improve physical, institutional and people-topeople connectivity. Individual Actions: Economies will develop tools and adopt policies that foster seamless connectivity, resilient supply chains and responsible business conduct. Collective Actions: Economies will: • Implement APEC’s Connectivity Blueprint, including by strengthening connectivity and resilient supply chains within APEC, and by cooperating to equip businesses to better understand their supply chains; • Promote trade and investment facilitation for all, including by: 1. fully implementing the WTO Trade Facilitation Agreement, and seeking to build on it where appropriate; 2. working towards digitalising border processes facilitated by application of internationally recognised standards, strengthening customs cooperation and increasing port cooperation; and 3. the adoption and improvement of effective standards and conformance systems, encompassing standardisation, accreditation, metrology, conformity assessment and market surveillance; • Address key infrastructure gaps and enhance connectivity by creating transparent regulatory environments, promoting dialogue, and sharing best practices that enable quality infrastructure development and investment, which remains accessible, sustainable and affordable with respect to life-cycle costs; • Improve digital connectivity in the region; • Promote and cooperate on measures that facilitate the safe cross-border movement of people, particularly in the context of changing pandemic related health and travel measures, so as to strengthen tourism, aviation

and similarly affected sectors; • Strengthen multi-stakeholder cooperation to promote responsible business conduct, particularly with the private sector; and • Promote capacity building to improve physical, institutional and people-to-people connectivity. INNOVATION AND DIGITALISATION: Objective: “We will pursue structural reforms and sound economic policies to promote innovation as well as improve productivity and dynamism.” Macro-economic policies: Evaluation of progress: Growth in the region is based on a stable, sustainable and resilient macro-economic environment for all. Individual Actions: Economies will seek continued improvement in the resilience and sustainability of their macro-economic policies, particularly fiscal and monetary policies. Collective Actions: Economies will: • Promote macro-economic policies, including sound fiscal and monetary policies that are calibrated to combat the negative macro-economic impact of global pandemics such as COVID-19, support recovery, and contribute to future growth through: 1. sharing information and best practice; 2. promoting good regulatory practices and regulatory cooperation; and 3. building capacity to support implementation of commitments, including through the Cebu Action Plan; • Improve fiscal sustainability and transparency to support long-term resilient development and future financing needs; and Collaborate across relevant APEC fora on such issues related to macro-economic policies, including services and the digital economy. STRUCTURAL REFORM: Evaluation of progress: The region sustains positive productivity growth, fostered by continuous growth in innovation.

Individual Actions: Economies will focus their reform efforts on those areas of the economy that have the greatest potential to drive increases in productivity and innovation. Collective Actions: Economies will: • Advance future APEC initiatives on structural reform under the four pillars of the Enhanced APEC Agenda for Structural Reform (EAASR), including through: 1. sharing information and best practice; 2. promoting good regulatory practices and regulatory cooperation; and 3. building capacity to support implementation of EAASR commitments; and • Collaborate across relevant APEC fora on issues related to structural reform, including services and the digital economy. Objective: “To empower all our people and businesses to participate and grow in an interconnected global economy, we will foster an enabling environment that is, among others, market-driven and supported by digital economy and innovation.” Evaluation of progress: APEC’s digital and innovation environment is marketdriven and increasingly connected globally, including through the promotion of interoperability, allowing all APEC people and businesses to achieve increased participation in, and benefit from, innovation and the digital economy. Individual Actions: Economies will strengthen efforts to foster an enabling environment, including by promoting regulatory and non-regulatory approaches that are coherent, interoperable, non-discriminatory, and that foster competition as well as promote innovation. Collective Actions: Economies will: • Identify ways to support resilience and recovery by utilising science, technology and innovation systems, including through capacity building; • Adopt new and emerging technologies to stimulate growth, connectivity

In implementing the Putrajaya Vision 2040, economies will build on APEC’s founding documents, including the 1994 Bogor Goals and the 1995 Osaka Action Agenda. and digital transformation; • Share best practice, and promote approaches for a digital economy that fosters competition and promotes innovation; • Address challenges and barriers to achieving an enabling, inclusive, open, fair and non-discriminatory digital and innovation environment; • Collaborate to develop an innovative digital business environment, including through frameworks and understandings on best practice that encourage the development, application, uptake and management of new technologies; • Deepen APEC’s multi-stakeholder engagement and collaboration on digital issues, especially with business; • Promote measures, interoperable approaches, and the use of digital technologies to facilitate trade and investment; • Promote ecosystems that support MSMEs, including those in the creative industry, to take advantage of the digital economy; and • Support the identification and integration of new and emerging sustainable transportation and mobility technologies and services. Objective: “We will strengthen digital infrastructure, accelerate digital transformation, narrow the digital divide, as well as cooperate on facilitating the flow of data and strengthening consumer and business trust in digital transactions.” Evaluation of progress: The region improves digital connectivity among economies, businesses and people including by enhancing trust and

security in the use of ICTs, accessibility and affordability of digital infrastructure in the region, broadening participation in the digital economy, and cooperating on facilitating the flow of data and strengthening consumer and business trust in digital transactions. Individual Actions: Economies will strengthen their digital infrastructure, accelerate digital transformation, narrow the digital divide, work on facilitating the flow of data, and strengthen consumer and business trust in digital transactions. Collective Actions: Economies will: • Accelerate APEC work and capacity building on the digital economy, including by prompt and effective implementation of APEC’s Internet and Digital Economy Roadmap; • Cooperate on measures to address the digital divide, including facilitating access to digital infrastructure and supporting development of digital skills and digital literacy; • Cooperate to accelerate digital transformation, including by supporting the digitalisation of industries such as services, manufacturing and agriculture; • Promote e-commerce / digital trade, including by supporting the development and implementation of international and regional norms and standards for the digital economy, compatibility of standards, regulations and systems, and supporting discussion and sharing best practice on rules and regulations in e-commerce/digital trade; • Cooperate on facilitating the flow of data and strengthening consumer and business trust in digital transactions; • Cooperate on the provision of consumer protection in the digital environment; • Promote cost-effective mechanisms that support cross-border business-tobusiness engagement, including through electronic transactions and dispute resolution including under the APEC Collaborative Framework for Online Dispute Resolution of Cross Border Business-to-Business Disputes; Stimulate practical application of digital technologies for inclusive and sustainable growth in such areas as trade, finance, public services and healthcare. → 43

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STRONG, BALANCED, SECURE, SUSTAINABLE AND INCLUSIVE GROWTH: Objective: “To ensure that the AsiaPacific region is resilient to shocks, crises, pandemics and other emergencies, we will foster quality growth that brings palpable benefits and greater health and wellbeing to all, including MSMEs, women and others with untapped economic potential.” Evaluation of progress: APEC’s growth is high quality and inclusive, bringing palpable benefits and greater health and wellbeing to MSMEs, women and others with untapped economic potential. Individual Actions: Economies will adopt and strengthen regulatory approaches, sound public sector governance, and take other measures that support economic inclusion, greater health, wellbeing and resilience for all. Collective Actions: Economies will: • Build on APEC’s Agenda on Advancing Economic, Financial and Social Inclusion to enhance economic inclusion for all, including by: 1. Advancing inclusive policies, including under the economic drivers of trade and investment, and innovation and digitalisation, to promote sustainable economic growth opportunities and improve quality of life for all members of society; 2. Advancing gender equality and the economic empowerment of women, particularly through accelerating the full implementation of the actions in the La Serena Roadmap for Women and Inclusive Growth and building on them; 3. Promoting start-ups and advancing MSMEs’ access to finance, global markets, and global value chains as well as assisting in building their capacity to effectively participate in the wider economy; 4. Building on APEC’s work on supporting MSMEs’ and women’s economic empowerment, and cooperate to further develop APEC’s work on other groups with untapped economic potential, such as indigenous peoples as appropriate, people with disabilities, and those GROUPOFNATIONS.COM

from remote and rural communities; 5. Promoting economic and technical cooperation to enhance capacity building and inclusive economic participation; and 6. Sharing experiences and best practice to promote inclusiveness and quality of life, including through: promoting structural reform to remove barriers to economic participation; encouraging the transition of economic actors from the informal to the formal economy; and data analysis. •E nable quality and equitable health access and outcomes for all with a view to achieving universal health coverage, including by strengthening health systems, by cooperating on: 1. preventing, detecting, responding to, and recovering from, pandemics; 2. accelerating equitable access to safe, effective, quality-assured, and affordable vaccines for all; supporting the safe, secure and efficient 3. operation of resilient health related supply chains; and 4. the use of digital technologies that foster health system innovation, such as telemedicine and digital health; • Ensure lasting food security, food safety and improved nutrition for all,as well as reducing food waste and lossin the region by promoting agricultural and food trade, agricultural sustainability and innovation, and implementing the Food Security Roadmap Towards 2030; and •E nhance cooperation to foster secure growth, including by implementing the APEC Beijing Declaration on Fighting Corruption, Santiago Commitment to Fight Corruption and Ensure Transparency, and the APEC Consolidated Counter-Terrorism and Secure Trade Strategy. Objective: “We will intensify inclusive human resource development as well as economic and technical cooperation to better equip our people with the skills and knowledge for the future.” Evaluation of progress: All our people are well equipped with the skills and

knowledge they need to adapt and thrive now and in the future. Individual Actions: Economies will implement policies to ensure equity and inclusion in education and human resource development, including life-long skills development and social protection measures, to provide for widespread participation in the digital economy, inclusive labour markets, and to support swift recovery from economic shocks. Collective Actions: Economies will: • Innovate and exchange expertise on skills and human resource development, and cooperate on sharing lessons and best practice in these areas; • Cooperate to improve the collection and analysis of skills and labour market data sets, including to better assess and bridge skills gaps and mismatches between skills and employment; • Strengthen economic and technical cooperation to intensify capacity building in inclusive human resource development; • Cooperate on the development of skills and literacy for all to accelerate the digital transformation of the region’s economy, including by implementing APEC’s Education Strategy and the APEC Framework on Human Resources Development in the Digital Age; and • Build on existing APEC work on mutual recognition of qualifications to deepen and widen its coverage. Objective: “We will promote economic policies, cooperation and growth, which will support global efforts to comprehensively address all environmental challenges, including climate change, extreme weather and natural disasters, for a sustainable planet.” Evaluation of progress: APEC’s growth and prosperity is achieved on an increasingly environmentally sustainable basis. Individual Actions: Economies, will implement policies consistent with their international obligations to

advance environmentally sustainable and resilient growth, including by contributing to meeting APEC goals. Collective Actions: Economies will: • Cooperate in relevant APEC fora to develop, encourage and exchange best practice policies, and promote capacity building programmes, that address all environmental challenges - including climate change - and support sustainable growth, such as through: 1. structural reform; 2. trade, including APEC’s work on facilitation of trade in environmental goods and services; 3. public finance, including tax policy and rationalising and phasing out inefficient fossil fuel subsidies that encourage wasteful consumption, while recognising the importance of providing those in need with essential energy services; 4. sustainable infrastructure and transport; 5. promoting sustainable growth across sectors and the development of cost effective low and zero emissions technologies, sustainable finance and, if appropriate, carbon pricing mechanisms; and 6. ensuring energy security, access, reliability and resilience through energy transition. • Seek to deliver existing Leaders’ commitments on energy issues: particularly to accelerate progress towards the 2030 target of doubling the share of renewable energy in the APEC energy mix, including in power generation, from 2010 levels by 2030; and to deliver a plan to reduce aggregate energy intensity by 45%, from 2005 levels, by 2035; • Work towards the sustainable resource management of agriculture, forestry and marine resources and fisheries, including by implementing the APEC Roadmaps on Marine Debris, and Combatting Illegal, Unreported and Unregulated (IUU) Fishing, and commitments to combat illegal logging and associated trade; • Further implement the APEC Disaster Risk Reduction Framework; • Advance APEC’s circular economy work; and • Advance work on sustainable tourism.

CONTINUOUS IMPROVEMENT OF APEC AS AN INSTITUTION Objective: “To maintain APEC’s unique position as the premier forum for regional economic cooperation as well as a modern, efficient and effective incubator of ideas, we will embrace continuous improvement of APEC as an institution through good governance and stakeholder engagements.” Consistent with our objectives to embrace continuous improvement of APEC as an institution, and to address key challenges related to good governance and stakeholder engagements, APEC will: • I mprove its governance and organisational structure, with a view to efficiently and effectively delivering upon all elements of the APEC Putrajaya Vision 2040; •E nsure the sustainability of the staffing and resourcing of the APEC Secretariat and Policy Support Unit (PSU), while ensuring that the institution remains financially prudent; •E xplore ways to discuss the possibility of expanding APEC members and observers; •D eepen engagement with ABAC and the private sector, as well as PECC, PIF, ASEAN, and other international and regional organisations; •P romote engagement with a broader range of economic stakeholders, such as NGOs and civil society, to reflect the breadth of the APEC Putrajaya Vision 2040; •R eview and update APEC’s relationship with the APEC Study Centre Consortium; •C ontinuously improve the communication of APEC’s work to the broader public; and •C onsider how to better make use of digital technologies for participation in APEC. REVIEW AND RENEWAL Objective: “We will achieve the vision by 2040, with an appropriate implementation plan and review of its progress.” Highlighting Individual Actions By the end of 2023, each economy will have voluntarily showcased a number

of their individual actions based on the options in this Aotearoa Plan of Action. Individual economies are encouraged to keep their progress on actions up-to-date and inform APEC, via the appropriate Committee, of progress every second year. APEC fora may hold discussions on these as necessary. At the time of their progress reports, economies may also add new actions and remove existing actions as appropriate. Evaluating progress With assistance from the PSU, APEC economies will evaluate progress towards achieving the APEC Putrajaya Vision 2040. Committees will work with the PSU to identify relevant indicators that will support this evaluation. Progress will be reported by Committees every two years through existing reporting processes. Senior Officials will also report progress on areas for continuous improvement to the APEC Ministers’ Meeting every two years. Five-year review of collective actions To ensure the Aotearoa Plan of Action is a “living document” and remains relevant, APEC will review the collective actions and continuous improvement actions every five years, in 2026, 2031 and 2036. Collective actions will be measured in terms of APEC’s progress as a whole. Existing collective actions may be renewed, revised or removed. New collective actions may be added. The collective actions for the following five-year period will be recommended to the APEC Ministerial Meeting for approval. Mid-term review of progress and individual actions In conjunction with the 2031 review of Collective Actions, APEC will also review the individual actions, and how we evaluate our progress towards achieving all elements of the Vision. Fora and sub-fora terms of reference APEC fora and sub-fora will make provision for implementing the APEC Putrajaya Vision 2040, including through this Aotearoa Plan of Action, in their terms of reference, work plans and strategic plans. ◆ 45

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1. We, the Leaders of the G20, met in Rome on October 30th and 31st, to address today’s most pressing global challenges and to converge upon common efforts to recover better from the COVID-19 crisis and enable sustainable and inclusive growth in our Countries and across the world. As the premier forum for international economic cooperation, we are committed to overcoming the global health and economic crisis stemming from the pandemic, which has affected billions of lives, dramatically hampered progress towards the achievement of the Sustainable Development Goals and disrupted global supply chains and international mobility. With this in mind, we express our profound gratitude to the health and care

professionals, frontline workers, international organizations and scientific community for their relentless efforts to cope with COVID-19. 2. Underlining the crucial role of multilateralism in finding shared, effective solutions, we have agreed to further strengthen our common response to the pandemic, and pave the way for a global recovery, with particular regard to the needs of the most vulnerable. We have taken decisive measures to support Countries most in need to overcome the pandemic, improve their resilience and address critical challenges such as ensuring food security and environmental sustainability. → 47

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population in all countries by the end of 2021 and 70 percent by mid-2022, as recommended by the World Health Organization (WHO)’s global vaccination strategy, we will take steps to help boost the supply of vaccines and essential medical products and inputs in developing countries and remove relevant supply and financing constraints. We ask our Health Ministers to monitor progress toward this end and to explore ways to accelerate global vaccination as necessary.

→ We have agreed upon a shared vision to combat climate change, and taken important steps towards the achievement of gender equality. We have also further advanced in our common efforts to ensure that the benefits of digitalization are shared broadly, safely and contribute to reducing inequalities.

3. Global economy. Over 2021, global economic activity has been recovering at a solid pace, thanks to the roll-out of vaccines and continued policy support. However, the recovery remains highly divergent across and within countries, and exposed to downside risks, in particular the possible spread of new variants of COVID-19 and uneven vaccination paces. We remain determined to use all available tools for as long as required to address the adverse consequences of the pandemic, in particular on those most impacted, such as women, youth, and informal and low-skilled workers, and on inequalities. We will continue to sustain the recovery, avoiding any premature withdrawal of support measures, while preserving financial stability and long-term fiscal sustainability and safeguarding against downside risks and negative spill-overs. Central banks are monitoring current price dynamics closely. They will act as needed to meet GROUPOFNATIONS.COM

their mandates, including price stability, while looking through inflation pressures where they are transitory and remaining committed to clear communication of policy stances. We remain vigilant to the global challenges that are impacting on our economies, such as disruptions in supply chains. We will work together to monitor and address these issues as our economies recover and to support the stability of the global economy. We commit to advancing the forwardlooking agenda set in the G20 Action Plan as updated in April 2021 and we welcome the fourth Progress Report. We reaffirm the commitments on exchange rates made by our Finance Ministers and Central Bank Governors in April 2021. 4. Health. Recognizing that vaccines are among the most important tools against the pandemic, and reaffirming that extensive COVID-19 immunization is a global public good, we will advance our efforts to ensure timely, equitable and universal access to safe, affordable, quality and effective vaccines, therapeutics and diagnostics, with particular regard to the needs of lowand middle-income countries. To help advance toward the global goals of vaccinating at least 40 percent of the

5. We will reinforce global strategies to support research and development as well as to ensure their production and swift and equitable distribution worldwide, also by strengthening supply chains and by expanding and diversifying global vaccine manufacturing capacity at local and regional level, while promoting vaccine acceptance, confidence and fighting disinformation. To this end, we commit to refrain from WTO inconsistent export restrictions and to increase transparency and predictability in the delivery of vaccines. We reiterate our support to all pillars of the ACTAccelerator, including COVAX, and will continue to improve its effectiveness. |We support the extension of ACT-A’s mandate throughout 2022 and acknowledge the formation of the Multilateral Leaders Task Force on COVID-19. We welcome the work undertaken by the COVAX ACT-A Facilitation Council Vaccine Manufacturing Working Group and its report aimed at creating a broader base for vaccine manufacturing. In particular, we will support increasing vaccine distribution, administration and local manufacturing capacity in LMICs, including through technology transfer hubs in various regions, such as the newly established mRNA Hubs in South Africa, Brazil and Argentina, and through joint production and processing arrangements. We will work together towards the recognition of COVID-19 vaccines deemed safe and efficacious by the WHO and in accordance with national legislation and circumstances, and to strengthen the organization’s ability regarding approval of vaccines, including

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optimizing procedures and processes, with the aim of broadening the list of vaccines authorized for emergency use (EUL), while continuing to protect public health and ensuring privacy and data protection. As a collective G20 effort, and in light of the enduring vaccination gaps, we commit to substantially increase the provision of and access to vaccines, as well as to therapeutics and diagnostics. We will enhance our efforts to ensure the transparent, rapid and predictable delivery and uptake of vaccines where they are needed. We call on the private sector and on multilateral financial institutions to contribute to this endeavor. We acknowledge the work of the World Bank Group in this respect and of the IMF and the WHO through the vaccine supply forecast dashboard. 6. We reaffirm our commitment to the Global Health Summit Rome Declaration as a compass for collective action and are committed to strengthening global health governance. We support the ongoing work on strengthening the leading and coordination role of an adequately and sustainably funded WHO. We acknowledge that financing for pandemic prevention, preparedness and response (PPR) has to become more adequate, more sustainable and better coordinated and requires a continuous cooperation between health and finance decision-makers, including to address potential financing gaps, mobilizing an appropriate mix of existing multilateral financing mechanisms and explore setting up new financing mechanisms. We establish a G20 Joint Finance-Health Task Force aimed at enhancing dialogue and global cooperation on issues relating to pandemic PPR, promoting the exchange of experiences and best practices, developing coordination arrangements between Finance and Health Ministries, promoting collective action, assessing and addressing health emergencies with cross-border impact, and encouraging effective stewardship of resources for pandemic PPR, while adopting a One Health approach. Within this context, this Task Force will work, and report back by early 2022, on modalities to establish a financial facility, to be designed inclusively with the central coordination role

We reaffirm our commitment to the Global Health Summit Rome Declaration as a compass for collective action and are committed to strengthening global health governance. We support the ongoing work on strengthening the leading and coordination role of an adequately and sustainably funded WHO.

of the WHO, G20-driven and engaging from the outset Low- and Middle-Income Countries, additional non-G20 partners and Multilateral Development Banks, to ensure adequate and sustained financing for pandemic prevention, preparedness and response. 7. We reaffirm our commitment to achieve the health-related SDGs, in particular Universal Health Coverage. We welcome multilateral efforts aimed at supporting and strengthening pandemic preparedness and response, including consideration of a possible international instrument or agreement in the context of the WHO, and at strengthening implementation of and compliance with the International Health Regulations 2005. We commit to pursue a One Health approach at global, regional, national and local levels. To this end, we will enhance global surveillance, early detection and early warning systems, under the coordinating role of the WHO, FAO, OIE and UNEP, and address risks emerging from the human-animal-environment interface, particularly the emergence of zoonotic diseases, while pursuing global efforts to fight antimicrobial resistance, while ensuring access to antimicrobials and their prudent stewardship, and continuing to address other critical

issues, including non-communicable diseases and mental health. Acknowledging the importance of swiftly reacting to pandemics, we will support science to shorten the cycle for the development of safe and effective vaccines, therapeutics and diagnostics from 300 to 100 days following the identification of such threats and work to make them widely available. 8. We reaffirm the importance of ensuring the continuity of health services beyond COVID-19 and of strengthening national health systems and primary health care services, in light of the repercussions of the pandemic on mental health and wellbeing, due to isolation, unemployment, food insecurity, increased violence against women and girls and constrained access to education as well as health services, including sexual and reproductive health, paying special attention to women and girls and to the needs of the most vulnerable. We will continue to support initiatives aimed at fighting AIDS, Tuberculosis and Malaria. We will pursue our efforts to enhance innovation in digital and other health-related technologies, taking into account the need to protect personal health data, encourage voluntary technology transfer on mutually agreed terms, and work with the → 49

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→ WHO towards updating and reinforcing public health workforce operation standards through enhanced health curricula and training materials. To this end, we will pursue our engagement with the Global Innovation Hub for Improving Value in Health and we welcome the launch of the WHO Academy and initiatives such as the Public Health Workforce Laboratorium proposed by the Italian G20 Presidency.

9. Sustainable Development. We remain deeply concerned about the impacts of the COVID-19 crisis, especially in developing countries, which has set back progress towards the 2030 Agenda for Sustainable Development and the Addis Ababa Action Agenda. We reaffirm our commitment to a global response to accelerate progress on the implementation of the SDGs and to support a sustainable, inclusive and resilient recovery across the world, able to promote equity and accelerate progress on all SDGs, recognizing the importance of nationally owned strategies, SDG localization, women

and youth empowerment, sustainable production and responsible consumption patterns, and access to affordable, reliable, sustainable and modern energy for all. We will strengthen our actions to implement the G20 Action Plan on the 2030 Agenda and the G20 Support to COVID-19 Response and Recovery in developing countries, building on the 2021 Rome Update, with particular regard to the most vulnerable countries. We welcome the progress made and reiterate our continued support to African Countries, in particular through the G20 Initiative on Supporting the Industrialization in Africa and LDCs, the G20 Africa Partnership, the Compact with Africa and other relevant initiatives. We remain committed to addressing illicit financial flows. 10. Support to vulnerable countries. We welcome the new general allocation of Special Drawing Rights (SDR), implemented by the International Monetary Fund (IMF) on 23 August 2021, which has made available the

equivalent of USD 650 billion in additional reserves globally. We are working on actionable options for members with strong external positions to significantly magnify its impact through the voluntary channelling of part of the allocated SDRs to help vulnerable countries, according to national laws and regulations. We welcome the recent pledges worth around USD 45 billion, as a step towards a total global ambition of USD 100 billion of voluntary contributions for countries most in need. We also welcome the ongoing work to significantly scale up the Poverty Reduction and Growth Trust’s lending capacity and call for further voluntary loan and subsidy contributions from countries able to do so. We also call on the IMF to establish a new Resilience and Sustainability Trust (RST) – in line with its mandate – to provide affordable long-term financing to help low-income countries, including in the African continent, small island developing states, and vulnerable middle-income countries to reduce risks to prospective balance of payments stability, including those stemming from pandemics and climate change. The new RST will preserve the reserve asset characteristics of the SDRs channelled through the Trust. Our Finance Ministers look forward to further discussion of surcharge policy at the IMF Board in the context of the precautionary balances interim review. 11. We welcome the progress achieved under the G20 Debt Service Suspension Initiative (DSSI), which is also agreed to by the Paris Club. Preliminary estimates point to at least USD 12.7 billion of total debt service deferred, under this initiative, between May 2020 and December 2021, benefitting 50 countries. We welcome the recent progress on the Common Framework for debt treatment beyond the DSSI. We commit to step up our efforts to implement it in a timely, orderly and coordinated manner. These enhancements would give more certainty to debtor countries and facilitate the IMF’s Page 5 of 20 and MDBs’ quick provision of f inancial support. We look forward to progress in the current negotiations

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under the Common Framework. We stress the importance for private creditors and other official bilateral creditors to provide debt treatments on terms at least as favourable, in line with the comparability of treatment principle. We recall the forthcoming work of the MDBs, as stated in the Common Framework, in light of debt vulnerabilities. We affirm the importance of joint efforts by all actors, including private creditors, to continue working towards enhancing debt transparency. We look forward to progress by the IMF and World Bank Group on their proposal of a process to strengthen the quality and consistency of debt data and improve debt disclosure. 12. We reaffirm the crucial role of the Multilateral Development Banks’ (MDBs) long-term support towards achieving the SDGs. Acknowledging the high financing needs of low income countries, we look forward to an ambitious IDA20 replenishment by December 2021, including through the sustainable use of IDA’s balance sheet. We also look forward to the future African Development Fund-16 replenishment. We welcome the launch of the Independent Review of MDBs’ Capital Adequacy Frameworks and the G20 Recommendations on the use of Policy-Based lending, which will help maximize the impact of MDB operations. 13. International Financial Architecture. We reiterate our commitment to strengthening longterm financial resilience and supporting inclusive growth, including through promoting sustainable capital flows, developing local currency capital markets and maintaining a strong and effective Global Financial Safety Net with a strong, quota-based, and adequately resourced IMF at its centre. We look forward to the forthcoming review of the IMF’s Institutional View on the liberalisation and management of capital flows, informed, among others, by the Integrated Policy Framework. We remain committed to revisiting the adequacy of IMF quotas and will continue the process of IMF governance reform under the 16th

General Review of Quotas, including a new quota formula as a guide, by 15 December 2023. 14. Recognizing the importance of strengthening the alignment of all sources of Financing for Sustainable Development with the SDGs and the need to address the related financing gaps, in line with existing commitments, we endorse the G20 Framework for Voluntary Support to Integrated National Financing Frameworks, the G20 High-Level Principles on Sustainability-Related Financial Instruments and the G20 Common Vision on SDG Alignment, noting the importance of transparency and mutual accountability. We also ask our Development and Finance Ministers to further enhance their cooperation. 15. Food security, nutrition, agriculture and food systems. We are committed to achieving food security and adequate nutrition for all, leaving no one behind. To this end, we endorse the Matera Declaration and its Call to Action. We encourage partners and stakeholders to collaborate with or join the Food Coalition launched by the FAO as a means to respond to the impacts of COVID-19 on food security and nutrition. We are concerned by famine conditions and acute food insecurity fuelled by armed conflicts in many parts of the world, particularly in the countries listed in the 2021 Global Report on Food Crises. We will foster sustainable and resilient food systems and agriculture innovation, which are vital to end hunger and malnutrition, eradicate poverty and ensure sustainability, also by increasing access to finance through responsible investment, developing and improving

early warning programmes, reducing food loss and waste along the food value chain, improving livelihoods for small-holder and marginal farmers and better integrating urban-rural interface. We recognize that promoting sustainable food systems, including by strengthening global, regional and local food value-chains and international food trade, will contribute not only to food security, but also make a major contribution to tackling the interlinked global challenges of climate change and biodiversity loss. We acknowledge the outcomes of the Food Systems Summit, including initiatives such as the School Meals Coalition, and invite all partners to contribute to its follow -up, highlighting the importance of reinforced co-ordination in food system policy-making and of improved financing tools for sustainable food systems. 16. Environment. We commit to strengthen actions to halt and reverse biodiversity loss by 2030 and call on CBD Parties to adopt an ambitious, balanced, practical, effective, robust and transformative post 2020 Global Biodiversity Framework at COP15 in Kunming. We welcome the launch of the UN Decade on Ecosystem Restoration 2021-2030, reaffirm the shared ambition to achieve a 50% reduction of degraded land by 2040 on a voluntary basis, and will strive to achieve Land Degradation Neutrality by 2030. We will build on the G20 Global Initiative on Reducing Land Degradation and Enhancing Conservation of Terrestrial Habitats launched under Saudi Presidency and look forward to its upcoming Implementation Strategy. →

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→ We recognize the efforts made by a number of countries to adhere to the Leaders’ Pledge for Nature and to ensure that at least 30 % of global land and at least 30 % of the global ocean and seas are conserved or protected by 2030, and we will help to make progress towards this objective in accordance with national circumstances. We encourage and support others to make similarly ambitious commitments. We will pursue our efforts to ensure the conservation, protection and sustainable use of natural resources and will take concrete measures to end overfishing, deliver on our commitment to end illegal, unreported and unregulated fishing, and combat crimes that affect the environment such as illegal logging, illegal mining, illegal wildlife trade and illegal movement and disposal of waste and hazardous substances. We underline the many synergies in financial flows for climate, biodiversity and ecosystems, and we will strengthen those synergies to maximize co-benefits. In this context, we recognize the importance of work on nature-related financial disclosure.

17. We will scale up and encourage the implementation of Nature-based Solutions or Ecosystem-based Approaches as valuable tools providing economic, social, climate and environmental benefits including in and around cities, in an inclusive manner and through the participation of local communities and Indigenous Peoples. We will integrate the implementation of a One Health approach in relevant policies and decision-making processes. We recognize that water resources are globally at risk due to anthropogenic pressure. We will continue to share innovation and best practices, also as a means to support integrated water resources management, including through the G20 Dialogue on Water and the G20 Water Platform adopted under Saudi Presidency. 18. We commit to intensify our actions to conserve, protect, restore and sustainably use marine biodiversity and reiterate our commitment to the Global Coral Reef R&D Accelerator Platform launched under Saudi Presidency. We highlight the importance of parties to GROUPOFNATIONS.COM

UNCLOS making progress as soon as possible in the ongoing negotiations for an ambitious and balanced international legally binding instrument under UNCLOS on the conservation and sustainable use of marine biodiversity of areas beyond national jurisdiction. In the context of the Antarctic Treaty System, we fully support, and encourage further progress to implement the longstanding commitment of the Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR), recognizing Marine Protected Areas (MPAs) can serve as a powerful tool for protecting sensitive ecosystems representative of the Convention Area, in particular in East Antarctica, the Weddell Sea and in the Antarctic Peninsula. We reaffirm our commitment to prohibit fishing subsidies that contribute to overfishing and overcapacity, in line with the SDGs. In line with the Osaka Blue Ocean Vision, we reaffirm our commitment to end Illegal, Unreported and

Unregulated fishing and to address marine plastic litter, building on the initiatives conducted, inter alia, by the UNEA, in view of strengthening existing instruments and developing a new global agreement or instrument. 19. Acknowledging the urgency of combating land degradation and creating new carbon sinks, we share the aspirational goal to collectively plant 1 trillion trees, focusing on the most degraded ecosystems in the planet, and urge other countries to join forces with the G20 to reach this global goal by 2030, including through climate projects, with the involvement of the private sector and civil society. 20. Cities and Circular Economy. We commit to increase resource efficiency, including through the G20 Resource Efficiency Dialogue and recognize the importance of cities as enablers of sustainable development and the need to improve sustainability, health, resilience and well-being in urban

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contexts as underlined by the Habitat III New Urban Agenda. With the involvement of businesses, citizens, academia and civil society organizations, we will enhance our efforts towards achieving sustainable consumption and production patterns and management and reduction of emissions, including by adopting circular economy approaches, and will support local actions for climate mitigation and adaptation. We endorse the G20 Platform on SDG Localization and Intermediary Cities, with the support of the OECD and UN-Habitat. We will support intermediary cities in adopting integrated and inclusive urban planning; accelerating their transitions towards clean and sustainable energy and sustainable mobility for all; improving waste management; fostering empowerment and decent work for women, youth, migrants and refugees; assisting disabled and elderly persons; enhancing food systems sustainability; and enabling more equitable access to digital innovations. Partnerships like the Coalition for Disaster Resilience Infrastructure could act as a vehicle to accelerate this agenda. 21. Energy and Climate. Responding to the call of the scientific community, noting with concern the recent reports of the IPCC and mindful of our leadership role, we commit to tackle the critical and urgent threat of climate change and to work collectively to achieve a successful UNFCCC COP26 in Glasgow. To this end, we reaffirm our commitment to the full and effective implementation of the UNFCCC and of the Paris Agreement, taking action across mitigation, adaptation and finance during this critical decade, on the basis of the best available scientific knowledge, reflecting the principle of common but differentiated responsibilities and respective capabilities, in light of different national circumstances. We remain committed to the Paris Agreement goal to hold the global average temperature increase well below 2°C and to pursue efforts to limit it to 1.5°C above preindustrial levels, also as a means to enable the achievement of the 2030 Agenda. → 53

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→ 22. We recognize that the impacts of climate change at 1.5°C are much lower than at 2°C. Keeping 1.5°C within reach will require meaningful and effective actions and commitment by all countries, taking into account different approaches, through the development of clear national pathways that align long-term ambition with short- and medium-term goals, and with international cooperation and support, including finance and technology, sustainable and responsible consumption and production as critical enablers, in the context of sustainable development. We look forward to a successful COP26.

23. In this endeavour, informed by the IPCC assessments, we will accelerate our actions across mitigation, adaptation and finance, acknowledging the key relevance of achieving global net zero greenhouse gas emissions or carbon neutrality by or around midcentury and the need to strengthen global efforts required to reach the goals of the Paris Agreement. Accordingly, recognizing that G20 members can significantly contribute to the reduction of global greenhouse gas emissions, we commit, in line with the latest scientific developments and with national circumstances, to take further action this decade and to formulate, implement, update and enhance, where necessary, our 2030 NDCs, and to formulate Long-Term Strategies that set out clear and predictable pathways consistent with the achievement of a balance between anthropogenic emissions and removal by sinks by or around mid-century, taking into account different approaches, including the Circular Carbon Economy, socioeconomic, economic, technological, and market developments, and promoting the most efficient solutions. We acknowledge the efforts made to date, including net zero and carbon neutrality commitments and new and ambitious NDCs and LTSs by G20 members, and those to come by or at COP26. 24. We will deliver national recovery and resilience plans that allocate, according to national circumstances, an ambitious share of the financial GROUPOFNATIONS.COM

We will deliver national recovery and resilience plans that allocate, according to national circumstances, an ambitious share of the financial resources to mitigating and adapting to climate change and avoid harm to the climate and environment. resources to mitigating and adapting to climate change and avoid harm to the climate and environment. We acknowledge the Sustainable Recovery Tracker developed in cooperation with the IEA, encouraging its update. In order to deploy the full potential of zero, low-emission, innovative, modern and

clean solutions, we will collaborate to accelerate the development and deployment of the most efficient and effective solutions and help them rapidly achieve cost parity and commercial viability, including to ensure access to clean energy for all, especially in developing countries.

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We commit to scale up public Research, Development and Deployment. We will increase our cooperation on enhanced country-driven capacity building and technology development and transfer on mutually agreed terms, including through key global initiatives and joint or bilateral projects on the most efficient solutions in all sectors of economy. 25. Impacts of climate change are being experienced worldwide, particularly by the poorest and most vulnerable. We stress the importance of the effective implementation of the global goal on adaptation and will submit adaptation communications. We also commit to scale up adaptation finance, with a view to achieving a balance with the provision of finance for mitigation to address the needs of developing countries including by facilitating mechanisms, conditions and procedures to access available funds, taking national strategies, priorities and needs into account. We recall and reaffirm the commitment made by developed countries, to the goal of mobilizing jointly USD 100 billion per year by 2020 and annually through 2025 to address the needs of developing countries, in the context of meaningful mitigation actions and transparency on implementation and stress the importance of meeting that goal fully as soon as possible. In this regard, we welcome the new commitments made by some of the members of the G20 to each increase and improve their overall international public climate finance contributions through to 2025 and look forward to new commitments from others. We note the Climate Finance Delivery Plan, which shows, based on OECD estimates, that the goal is expected to be met no later than 2023. We also recall the Paris Agreement aim to strengthen the global response to the threat of climate change, in the context of sustainable development and efforts to eradicate poverty, and that one of its goals is to make finance flows consistent with a pathway towards low GHG emissions and climate-resilient development. We encourage International Financial Institutions, including MDBs, to step up their efforts to pursue alignment with the Paris Agreement within ambitious

timeframes, to support sustainable recovery and transition strategies, NDCs and long-term low greenhouse gas emission development strategies in emerging markets and developing economies, and to set out plans to mobilize private finance, in line with their mandates and internal approval procedures, while continuing to support the achievement of the UN 2030 Agenda. 26. We commit to significantly reduce our collective greenhouse gas emissions, taking into account national circumstances and respecting our NDCs. We acknowledge that methane emissions represent a significant contribution to climate change and recognize, according to national circumstances, that its reduction can be one of the quickest, most feasible and most cost-effective ways to limit climate change and its impacts. We welcome the contribution of various institutions, in this regard, and take note of specific initiatives on methane, including the establishment of the International Methane Emissions Observatory (IMEO). We will further promote cooperation, to improve data collection, verification, and measurement in support of GHG inventories and to provide high quality scientific data. 27. We will increase our efforts to implement the commitment made in 2009 in Pittsburgh to phase out and rationalize, over the medium term, inefficient fossil fuel subsidies that encourage wasteful consumption and commit to achieve this objective, while providing targeted support for the poorest and the most vulnerable. 28. We acknowledge the close link between climate and energy and commit to reduce emission intensity, as part of mitigation efforts, in the energy sector to meet timeframes aligned with the Paris temperature goal. We will cooperate on deployment and dissemination of zero or low carbon emission and renewable technologies, including sustainable bioenergy, to enable a transition towards lowemission power systems. This will also enable those countries that commit

to phasing out investment in new unabated coal power generation capacity to do so as soon as possible. We commit to mobilize international public and private finance to support green, inclusive and sustainable energy development and we will put an end to the provision of international public finance for new unabated coal power generation abroad by the end of 2021. 29. As we are recovering from the crisis, we are committed to maintain energy security, while addressing climate change, and guaranteeing just and orderly transitions of our energy systems that ensures affordability, including for the most vulnerable households and businesses. In this endeavour, we will remain vigilant of the evolution of energy markets, taking into account trends over the years, and promote an intensive dialogue. Accordingly, the G20 in collaboration with the International Energy Forum (IEF) will facilitate a dialogue between producers and consumers to bolster the efficiency, transparency and stability of the energy markets. We emphasize the importance of maintaining undisrupted flows of energy from various sources, suppliers and routes, exploring paths to enhanced energy security and markets stability, while promoting open, competitive and free international energy markets. We recognize the role of digitalization in enhancing energy security and market stability through improved energy planning, while ensuring the security of energy systems against risks of attacks, including through malicious use of ICT. In addition to continuing to address traditional energy security challenges, we are mindful that clean energy transitions require an enhanced understanding of energy security, integrating aspects such as the evolving share of intermittent energy sources; the growing demand for energy storage, system flexibility changing climate patterns; the increase in extreme weather events; responsible development of energy types and sources; reliable, responsible and sustainable supply chains of critical minerals and materials, as well as semiconductors and related technologies. → 55

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→ 30. Policies for the transition and sustainable finance. We welcome the agreement by Finance Ministers and Central Bank Governors to coordinate their efforts to tackle global challenges such as climate change and environmental protection, and to promote transitions towards green, more prosperous and inclusive economies. We welcome the introduction of a Pillar dedicated to Protecting the Planet in the G20 Action Plan. We agree on the importance of a more systematic analysis of macroeconomic risks stemming from climate change and of the costs and benefits of different transitions, as well as of the macroeconomic and distributional impact of risk prevention strategies and mitigation and adaptation policies, including by drawing on wellestablished methodologies. We ask the different G20 work streams to act in synergy, within their respective mandates and while avoiding duplication, to inform our discussions on the most appropriate policy mix to move towards low-greenhouse gas emission economies, taking into account national circumstances. Such policy mix should include investment in sustainable infrastructure and innovative technologies that promote decarbonisation and circular economy, and a wide range of fiscal, market and regulatory mechanisms to support clean energy transitions, including, if appropriate, the use of carbon pricing mechanisms and incentives, while providing targeted support for the poorest and the most vulnerable. We welcome the constructive discussions held at the Venice International Conference on Climate and at the G20 High Level Tax Symposium on Tax Policy and Climate Change and we recognise that the policy dialogue on the macroeconomic and fiscal impact of climate change policies could benefit from further technical work.

31. Sustainable finance is crucial for promoting orderly and just transitions towards green and more sustainable economies and inclusive societies, in line with the 2030 Agenda for Sustainable Development and the Paris Agreement. We welcome the establishment of the G20 Sustainable GROUPOFNATIONS.COM

Finance Working Group (SFWG) and we endorse the G20 Sustainable Finance Roadmap and the Synthesis Report. The Roadmap, initially focused on climate, is a multi-year action-oriented document, voluntary and flexible in nature, which will inform the broader G20 agenda on climate and sustainability. We recognise the importance of gradually expanding the Roadmap’s coverage to include additional issues, such as biodiversity and nature as well as social matters, based on mutual agreement by G20 members in the coming years. We welcome the Financial Stability Board (FSB) Roadmap for addressing financial risks from climate change, which will complement the work carried out by the SFWG. We welcome the FSB report on the availability of data on climaterelated financial stability risks and the FSB report on promoting globally consistent, comparable and reliable climate-related financial disclosures and its recommendations. We also welcome the work programme of the International Financial Reporting Standards Foundation to develop a baseline global reporting standard under robust governance and public oversight, building upon the FSB’s Task Force on Climate-Related Financial Disclosures framework and the work of sustainability standard-setters. 32. International taxation. The final political agreement as set out in the Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy and in the Detailed Implementation Plan, released by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on 8 October, is a historic achievement through which we will establish a more stable and fairer international tax system. We call on the OECD/G20 Inclusive Framework on BEPS to swiftly develop the model rules and multilateral instruments as agreed in the Detailed Implementation Plan, with a view to ensure that the new rules will come into effect at global level in 2023. We note the OECD report on Developing Countries and the OECD/ G20 Inclusive Framework on BEPS identifying developing countries’ progress made through their

We reaffirm our commitment to gender equality and emphasize the pivotal role of women’s and girls’ empowerment and leadership at all levels for inclusive and sustainable development.

participation in the OECD/G20 Inclusive Framework on BEPS and possible areas where domestic resource mobilisation efforts could be further supported. 33. Gender Equality and Women’s Empowerment. We reaffirm our commitment to gender equality and emphasize the pivotal role of women’s and girls’ empowerment and leadership at all levels for inclusive and sustainable development. We commit to put women and girls, who have been disproportionately affected by the pandemic, at the core of our efforts to build forward better. We will work on key factors such as equal access to education and opportunities, including in STEM sectors, the promotion of women’s entrepreneurship and leadership, the elimination of genderbased violence, the enhancement of social, health, care and educational services, the overcoming of gender stereotypes, and the uneven distribution of unpaid care and domestic work. We commit to implement the G20 Roadmap Towards and Beyond the Brisbane Goal and to rapidly enhance the quality and quantity of women’s employment, with a particular focus on closing the gender pay gap. We reiterate our commitment to share progress and actions taken towards the Brisbane Goal in the related annual report and ask the ILO and the OECD to continue reporting annually on our progress, taking into account the Roadmaps’ Auxiliary Indicators.

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34. We welcome the hosting of the first G20 conference on Women’s Empowerment and will continue to enhance our concrete measures towards a systemic and cross-cutting approach to gender equality in our national policies, with adequate implementation tools. We will work on women’s empowerment in cooperation with academia, civil society and the private sector. To this end, we support the convening of a G20 Conference on Women’s Empowerment under the upcoming Presidencies. We welcome the work of the EMPOWER Alliance and its engagement with the G20, to be reviewed in 2025. We acknowledge the Women Entrepreneurs Finance Initiative as an important partnership to support women-led SMEs. 35. Employment and social protection. The Covid-19 pandemic has exacerbated inequalities in our labour markets, disproportionately affecting vulnerable workers. In cooperation with social partners, we will adopt human-centered policy approaches to promote social dialogue and to ensure greater social

justice; safe and healthy working conditions; and decent work for all, including within global supply chains. To reduce inequalities, eradicate poverty, support worker transitions and reintegration in labour markets and promote inclusive and sustainable growth, we will strengthen our social protection systems, as outlined in the G20 Policy Principles to Ensure Access to Adequate Social Protection for All in a Changing World of Work. We welcome the G20 Policy Options to Enhance Regulatory Frameworks for Remote Working Arrangements and Work through Digital Platforms. We will work to ensure decent working conditions for remote and platform workers and strive to adapt our regulatory frameworks to new forms of work, ensuring that these are fair and inclusive, leaving no one behind, while paying special attention to addressing the digital gender divide and intergenerational inequalities. We also ask the ILO and the OECD to continue monitoring progress towards the Antalya Youth Goal. We underscore our commitment to further international

cooperation to strengthen safe and healthy working conditions for all workers and welcome the G20 Approaches on Safety and Health at Work. 36. Education. Access to education is a human right and a pivotal tool for inclusive and sustainable economic recovery. We commit to ensure access to quality education for all, with particular attention to women and girls and vulnerable students. We will increase our efforts to make education systems inclusive, adaptable and resilient, and will enhance the coordination between education, employment and social policies to improve the transition from education to quality employment, also through lifelong learning. 37. We recognize the critical role of education for sustainable development, including environmental stewardship, in empowering younger generations with the necessary skills and mindset to address global challenges. We commit to enhance cooperation and to foster stronger, effective measures to this end. → 57

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→ 38. Migration and forced displacement. The impact of the pandemic has confronted us with new challenges with regard to migration in our globalized economies. We commit to take steps to support the full inclusion of migrants, including migrant workers, and refugees in our pandemic response and recovery efforts, in the spirit of international cooperation and in line with national policies, legislation and circumstances, ensuring full respect for their human rights and fundamental freedoms regardless of their migration status. We also recognize the importance of preventing irregular migration flows and the smuggling of migrants, as part of a comprehensive approach for safe, orderly and regular migration, while responding to humanitarian needs and the root causes of displacement. We note the 2021 Annual International Migration and Forced Displacement Trends and Policies Report to the G20 prepared by the OECD in cooperation with ILO, International Organization for Migration (IOM) and United Nations High Commissioner for

Refugees (UNHCR). We will continue the dialogue on migration and forced displacement in future Presidencies. 39. Transportation and Travel. We will endeavor to restart international travel in a safe and orderly manner, consistent with the work of relevant international organizations such as the WHO, the International Civil Aviation Organization, the International Maritime Organization and the OECD. To this end, taking into consideration national public health policies, we acknowledge the relevance of shared standards to ensure seamless travel, including testing requirements and results, vaccination certificates and interoperability and mutual recognition of digital applications, while continuing to protect public health and ensuring privacy and data protection. We reiterate the essential role of transport personnel and the need for a coordinated approach to the treatment of air, maritime and land crews, consistent with public health standards and with the principle of non-discrimination.

40. Financial regulation. We welcome the FSB final report on the lessons learnt from the COVID-19 pandemic from a financial stability perspective and the proposed next steps. While the global financial system has been largely resilient, gaps in the regulatory framework remain which we are committed to addressing, including by completing the remaining elements of the G20 regulatory reforms agreed after the 2008 financial crisis. We are also committed to strengthening the resilience of the non-bank financial intermediation (NBFI) sector with a systemic perspective, and reducing the need for extraordinary central bank interventions, by implementing the FSB NBFI work programme. We endorse the FSB final report on policy proposals to enhance money market fund (MMF) resilience and we will assess and address MMF vulnerabilities in our jurisdictions, using the framework and policy toolkit in the report, recognizing the need to tailor measures to jurisdictions’ specific circumstances, as well as taking account of crossborder considerations. 41. We welcome the progress reported against milestones set for 2021 by the G20 Roadmap to enhance cross-border payments, and we endorse the ambitious but achievable quantitative global targets for addressing the challenges of cost, speed, transparency and access by 2027 set out in the FSB report. We call on public authorities and the private sector to work together to make the practical improvements to achieve these goals. We reiterate that no so-called “global stablecoins” should commence operation until all relevant legal, regulatory and oversight requirements are adequately addressed through appropriate design and by adhering to applicable standards. We encourage jurisdictions to progress in the implementation of the FSB HighLevel Recommendations, and standard setting bodies to complete their assessment of whether to make any adjustments to standards or guidance in light of the FSB Recommendations. We encourage the Committee on Payments and Market Infrastructures, Bank for International Settlements Innovation Hub, IMF and World Bank to

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continue deepening the analysis on the potential role of central bank digital currencies in enhancing cross-border payments and their wider implications for the international monetary system. We thank Mr. Randal K. Quarles for his service as FSB Chair and we welcome the appointment of Mr. Klaas Knot as his successor. 42. Trade and Investment. We affirm the important role of open, fair, equitable, sustainable, non-discriminatory and inclusive rules-based multilateral trade system in restoring growth, job creation and industrial productivity and promoting sustainable development, as well as our commitment to strengthen it with the WTO at its core. Recalling the Riyadh Initiative on the future of the WTO, we remain committed to working actively and constructively with all WTO Members to undertake the necessary reform of the WTO, improving all its functions, and we highlight the need to implement this commitment in practice through an inclusive and transparent approach including tackling the development issues. We commit to a successful and productive WTO 12th Ministerial Conference (MC12) as an important opportunity to advance that reform and revitalize the organization. We will work with all WTO members in the lead-up to the MC12 and beyond to enhance the capacity of the multilateral trading system to increase our pandemic and disaster preparedness and resilience through a multifaceted response, with a view to deliver an outcome on trade and health by MC12, including to work towards enhancing timely, equitable and global access to vaccines. We support reaching a meaningful WTO agreement on harmful fisheries subsidies by the MC12, in line with the SDG 14.6, and we welcome the ongoing work on agriculture. 43. We recognize the importance of sound, predictable and transparent domestic regulatory frameworks for trade in services and investment. We underscore the importance of fair competition and we will continue to work to ensure a level playing field to foster a favourable trade and investment environment. → 59

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→ Reducing trade tensions, tackling distortions in all sectors of trade and investment, addressing supply chain disruptions and fostering mutually beneficial trade and investment relations will be critical as economies respond to and recover from the COVID-19 pandemic. We believ that trade and environmental policies should be mutually supportive and WTO consistent and contribute to the optimal use of the world’s resources in accordance with the objectives of sustainable development. We highlight the importance of strengthening MSMEs’ capacity to become more integrated into the global economy.

44. Infrastructure investment. We recognize the critical role of quality infrastructure investments in the recovery phase. We acknowledge that resilient, properly funded, well maintained and optimally managed systems are essential to preserve infrastructure assets over their lifecycles, minimising loss and disruption, and securing the provision of safe, reliable and high-quality infrastructure services. To this end, we endorse the G20 Policy Agenda on Infrastructure Maintenance. In line with the G20 Roadmap for Infrastructure as an Asset Class, and building on the G20 Infrastructure Investors Dialogue, we will continue, in a flexible manner, to develop further the collaboration between the public and private investors to mobilise private capital. We underline the importance of promoting knowledge sharing between local authorities and national governments to foster more inclusive infrastructure. We will continue to advance the work related to the G20 Principles for Quality Infrastructure Investment. We agree to extend the Global Infrastructure Hub mandate until the end of 2024. 45. Productivity. Digital transformation has the potential of boosting productivity, strengthening the recovery and contributing to broad-based and shared prosperity. We endorse the G20 Menu of Policy Options - Digital Transformation and Productivity Recovery, which provides policy options, shares good practices, promotes inclusion and sheds light on the key role of international → GROUPOFNATIONS.COM

cooperation to make use of the growth opportunities of digitalization. Drawing on the Menu we will continue discussing policies to sustain productivity growth, and to help ensure that the benefits are evenly shared within and across countries and sectors. We recognise the importance of good corporate governance frameworks and well-functioning capital markets

to support the recovery, and look forward to the review of the G20/OECD Principles of Corporate Governance. 46. Digital economy, higher education and research. We recognize the role of technology and innovation as key enablers for the global recovery and sustainable development. We recognize the importance of policies to create an

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enabling, inclusive, open, fair and non-discriminatory digital economy that fosters the application of new technologies, allows businesses and entrepreneurs to thrive, and protects and empowers consumers, while addressing the challenges related to privacy, data protection, intellectual property rights, and security. Mindful of the need to support a better inclusion of MSMEs in the digital economy, we commit to reinforce our actions and international cooperation towards the digital transformation of production, processes, services and business models, also through the use of consensus-based international standards and the improvement of consumer protection, digital skills and literacy. We welcome the results of the G20 Innovation League, as a platform through which multilateral endeavors can boost partnerships, collaboration, co-creation, and private investments in technologies and applications benefitting humankind, highlighting how trade and digital policies can help strengthen the competitiveness of MSMEs in global markets and address the particular challenges they face. We have also begun to address the application of distributed ledger technologies such as blockchain networks to protect consumers through increased traceability. We recognize the growing role that Information and Communication Technologies play in our societies. In this context, we emphasize the need to address the increased security challenges in the digital environment, including from ransomware and other forms of cyber crime. With this in mind, we will work to strengthen bilateral and multilateral cooperation to secure our ICT, address shared vulnerabilities and threats, and combat cyber crime. 47. Well aware of the benefits stemming from the responsible use and development of trustworthy humancentered Artificial Intelligence (AI), we will advance the implementation of the G20 AI Principles, while considering the specific needs of MSMEs and start-ups to encourage competition and innovation, as well as diversity and inclusion, and the importance of international cooperation to promote

We endorse the G20 Menu of Policy Options for digital financial literacy and financial consumer and MSME protection “Enhancing digital financial inclusion beyond the COVID-19 crisis”, with the aim to provide a guide for policymakers in their efforts to lay the ground for new financial inclusion strategies in the post-pandemic world. research, development and application of AI. We welcome the G20 Policy Examples on How to Enhance the Adoption of AI by MSMEs and Start-ups. 48. We acknowledge the importance of data free flow with trust and crossborder data flows. We reaffirm the role of data for development. We will continue to work on addressing challenges such as those related to privacy, data protection, security and intellectual property rights, in accordance with the relevant applicable legal frameworks. We will also continue to further common understanding and to work towards identifying commonalities, complementarities and elements of convergence between existing regulatory approaches and instruments enabling data to flow with trust, in order to foster future interoperability. Recognizing the responsibility of digital service providers, we will work in 2022 towards enhancing confidence in the digital environment by improving internet safety and countering online abuse, hate speech, online violence and terrorism while protecting human rights and fundamental freedoms. We remain committed to protecting the most vulnerable, and acknowledge the G20 High Level Principles for Children Protection and Empowerment in the Digital Environment, drawn from the OECD Recommendation on Children in the Digital Environment and other relevant tools, such as the ITU 2020 Guidelines on Child Online Protection. 49. Financial inclusion. We reaffirm our commitment to enhancing digital financial inclusion of vulnerable and

underserved segments of society, including micro, small and mediumsized enterprises (MSMEs), carrying forward the work of the Global Partnership for Financial Inclusion (GPFI) and implementing the G20 2020 Financial Inclusion Action Plan. We endorse the G20 Menu of Policy Options for digital financial literacy and financial consumer and MSME protection “Enhancing digital financial inclusion beyond the COVID-19 crisis”, with the aim to provide a guide for policymakers in their efforts to lay the ground for new financial inclusion strategies in the post-pandemic world. We welcome the 2021 GPFI Progress Report to G20 Leaders and the 2021 Update to Leaders on Progress Towards the G20 Remittance Target. We support the GPFI in bringing forward the monitoring of National Remittances Plans, also gathering more granular data, and strongly encourage the continued facilitation of the flow of remittances and the reduction of average remittance transfer costs. 50. Data gaps. Improving data availability and provision, including on environmental issues, and harnessing the wealth of data produced by digitalization is critical to better inform our decisions. We take note of the work done so far by the IMF, in close cooperation with the FSB and the Inter-Agency Group on Economic and Financial Statistics (IAG) towards a possible new G20 Data Gaps Initiative and we look forward to its further development. 51. Recognizing the importance of an efficient use of digital tools within public administrations, we will continue to promote agile regulatory frameworks → 61

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→ and will provide digital public services that are human-centric, proactive, easy to use and accessible to all. We welcome the novel emphasis on secure, interoperable and trusted digital identity solutions that can provide better access to public and private sector services while promoting privacy and personal data protection. We will pursue further work on designing digital identity tools, deployable also in emergency scenarios.

52. Recognizing that sustainable investment in quality digital infrastructure can greatly contribute to reducing the digital divide, we will promote universal, and affordable access to connectivity for all by 2025. Recognizing universal, secure, affordable, advanced and wellfunctioning digital infrastructure as an important driver for the economic recovery, we endorse the G20 Guidelines for Financing and Fostering HighQuality Broadband Connectivity for a Digital World, developed with the support of the OECD. 53. We will enhance our efforts to ensure that our research and work forces are able to adapt their skills to the rapidly evolving digital environment and harness the potential of innovation and digital tools whilst upholding shared ethical principles and values. We will also leverage common digital infrastructures to promote research collaboration, open science and higher education. Firmly convinced about the crucial relevance of scientific progress in improving the lives of billions around the world and effectively addressing global challenges, we will also continue to ensure that scientific research, including on digital technology, is carried out in a responsible, safe, transparent, equitable, inclusive and secure manner, taking into account the risks stemming from cuttingedge technologies. 54. We welcome the transformation of the Digital Economy Task Force into a Working Group and invite our Digital Ministers to further their discussions on the digital economy as appropriate. 55. Tourism. Building on the work GROUPOFNATIONS.COM

made in 2020, we will continue to support a rapid, resilient, inclusive and sustainable recovery of the tourism sector, which is among those hardest hit by the pandemic, with a particular focus on developing countries and MSMEs. We endorse the G20 Rome Guidelines for the Future of Tourism, and commit to take action to fulfill its objectives, in particular with regard to safe mobility and seamless travel and sustainability and digitalization. We will explore collaboration in the fields of creative economy and innovation in support of tourism. To this end, we ask our Ministers of Tourism to pursue their collaboration with the OECD, the UNWTO and other relevant international organizations. 56. Culture. Recalling that culture has intrinsic value, we underline the role of culture and of cultural and creative professionals and businesses as drivers for sustainable development and in fostering the resilience and the regeneration of our economies and societies, stressing the importance of international efforts to safeguard and promote culture, with a key role to be played by UNESCO, and the need to support workers, including in the cultural field, also by facilitating access to employment, social protection, digitalization and business support measures. We emphasize the importance of addressing threats to irreplaceable cultural resources and protecting and preserving cultural heritage damaged, trafficked or endangered by conflicts and disasters, recalling the objectives of UNSC Resolution 2347. We ask our relevant institutions to further pursue the G20 cooperation on culture. 57. Anti-corruption. Renewing our commitment to zero tolerance for corruption in the public and private sectors and to achieving common goals in the global fight against corruption, we adopt our 2022-2024 Anti-Corruption Action Plan. We will further strengthen our engagement with other stakeholders such as academia, civil society, media and the private sector, and will continue to promote their important role and active participation in this field. We are committed to fight any new and sophisticated forms of corruption. We

Renewing our commitment to zero tolerance for corruption in the public and private sectors and to achieving common goals in the global fight against corruption, we adopt our 2022-2024 Anti-Corruption Action Plan.

endorse the G20 High-Level Principles on Corruption related to Organized Crime, on Tackling Corruption in Sport, and on Preventing and Combating Corruption in Emergencies, and adopt the G20 Anti-corruption Accountability Report. We reaffirm our commitment to deny safe haven to corruption offenders and their assets, in accordance to domestic laws and to combat transnational corruption. We will also provide competent authorities with adequate, accurate and up-todate information by adopting legally appropriate measures to improve international and domestic beneficial ownership transparency of legal persons and arrangements and real estate, especially trans-national flows, in line with the Financial Action Task Force recommendations. 58. We remain committed to promoting a culture of integrity in the private sector, particularly in their relations with the public sector. In our collective efforts to better measure corruption, we welcome the Compendium of Good Practices on Measurement of Corruption. We will ensure that G20 Countries adapt their regulation and legislation to comply with the relevant obligation to criminalize bribery, including bribery of foreign public officials, and bolster efforts to effectively prevent, detect, investigate, prosecute and sanction domestic and foreign bribery. We will demonstrate

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concrete efforts for the duration of the Action Plan and share information on our actions towards criminalizing foreign bribery and enforcing foreign bribery legislation in line with article 16 of UNCAC, with a view to the possible adherence of all G20 countries to the OECD Anti-Bribery Convention. As a means to further improve international cooperation on anticorruption, we welcome the progress made by the GlobE Network. 59. We reaffirm our full support for the Financial Action Task Force (FATF) and the Global Network and recognize that effective implementation of AntiMoney Laundering/Countering the Financing of Terrorism and Proliferation (AML/CFT/CPF) measures is essential for building confidence in financial markets, ensuring a sustainable recovery and protecting the integrity of the international financial system. We stress the relevance of the risk-based approach of the FATF recommendations with the aim to ensure legitimate cross-border payments and to promote financial inclusion. We confirm our support for strengthening the FATF recommendations to improve beneficial ownership transparency and call on countries to fight money laundering from environmental crime, particularly by acting on the findings of the FATF report. We reaffirm the commitments made by Finance Ministers and Central Bank Governors aimed at sustaining and strengthening the work of the FATF-Style Regional Bodies. 60. We look ahead to Beijing Winter Olympics and Paralympics 2022, as opportunities for competition for athletes from around the world, which serves as a symbol of humanity’s resilience. 61. We thank the international organizations and the G20 Engagement Groups for their valuable inputs and policy recommendations. We thank Italy for its Presidency, for successfully hosting the Global Health Summit, co-Chaired with the European Commission, and the Rome Leaders’ Summit, and for its contribution to the G20 process, and we look forward to meeting again in Indonesia in 2022, in India in 2023 and in Brazil in 2024. ◆ 63

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THE G7 COMMUNIQUÉ Our Shared Agenda for Global Action to Build Back Better

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We, the leaders of the Group of Seven, met in Cornwall on 11-13 June 2021 determined to beat COVID-19 and build back better. We remembered everyone who has been lost to the pandemic and paid tribute to those still striving to overcome it. Inspired by their example of collaboration and determination, we gathered united by the principle that brought us together originally, that shared beliefs and shared responsibilities are the bedrock

of leadership and prosperity. Guided by this, our enduring ideals as free open societies and democracies, and by our commitment to multilateralism, we have agreed a shared G7 agenda for global action to: End the pandemic and prepare for the future by driving an intensified international effort, starting immediately, to vaccinate the world by getting as many safe vaccines to as many people as

possible as fast as possible. Total G7 commitments since the start of the pandemic provide for a total of over two billion vaccine doses, with the commitments since we last met in February 2021, including here in Carbis Bay, providing for one billion doses over the next year. At the same time we will create the appropriate frameworks to strengthen our collective defences against threats to global health by: increasing and coordinating on global →

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→ manufacturing capacity on all continents; improving early warning systems; and support science in a mission to shorten the cycle for the development of safe and effective vaccines, treatments and tests from 300 to 100 days.

Reinvigorate our economies by advancing recovery plans that build on the $12 trillion of support we have put in place during the pandemic. We will continue to support our economies for as long as is necessary, shifting the focus of our support from crisis response to promoting growth into the future, with plans that create jobs, invest in infrastructure, drive innovation, support people, and level up so that no place or person, irrespective of age, ethnicity or gender is left behind. This has not been the case with past global crises, and we are determined that this time it will be different. Secure our future prosperity by championing freer, fairer trade within a reformed trading system, a more resilient global economy, and a fairer global tax system that reverses the race to the bottom. We will collaborate to ensure future frontiers of the global economy and society, from cyber space to outer space, increase the prosperity and wellbeing of all people while upholding our values as open societies. We are convinced of the potential of technological transformation for the common good in accordance with our shared values. Protect our planet by supporting a green revolution that creates jobs, cuts emissions and seeks to limit the rise in global temperatures to 1.5 degrees. We commit to net zero no later than 2050, halving our collective emissions over the two decades to 2030, increasing and improving climate finance to 2025; and to conserve or protect at least 30 percent of our land and oceans by 2030. We acknowledge our duty to safeguard the planet for future generations. Strengthen our partnerships with others around the world. We will develop a new partnership to build back better for the world, through a step change in our approach to investment for GROUPOFNATIONS.COM

infrastructure, including through an initiative for clean and green growth. We are resolved to deepen our current partnership to a new deal with Africa, including by magnifying support from the International Monetary Fund for countries most in need to support our aim to reach a total global ambition of $100 billion. Embrace our values as an enduring foundation for success in an ever changing world. We will harness the power of democracy, freedom, equality, the rule of law and respect for human rights to answer the biggest questions and overcome the greatest challenges. We will do this in a way that values the individual and promotes equality, especially gender equality, including by supporting a target to get 40 million more girls into education and with at least $2¾ billion for the Global Partnership for Education. We shall seek to advance this open agenda in collaboration with other countries and within the multilateral rules-based system. In particular, we look forward to working alongside our G20 partners and with all relevant International Organisations to secure a cleaner, greener, freer, fairer and safer future for our people and planet.

Inspired by their example of collaboration and determination, we gathered united by the principle that brought us together originally, thatshared beliefs and shared responsibilities are the bedrock of leadership and prosperity.

INTRODUCTION 1. We, the Leaders of the Group of Seven, met together in Cornwall, United Kingdom on 11-13 June 2021 at a critical juncture for our people and planet. 2. We acknowledge the ongoing impacts of COVID-19 in our own societies and around the world, and that those impacts have not been felt evenly. We remember all those who have died as aresult of the pandemic and pay tribute to all those continuing to work to overcome the virus. 3. United as open societies and economies and guided by our shared values of democracy, freedom, equality, the rule of law and respect for human rights, we commit to beating COVID-19 everywhere and building back better for all. We are firmly convinced that these values remain the best foundation for the social and economic advancement of all humanity. We affirm that by investing in our people, tackling inequalities, including gender inequality, promoting dignity and championing freedoms, we will release innovation capable of tackling the great challenges of our time. 4. Our agenda for global action is built on our commitment to international cooperation, multilateralism and an open, resilient, rules-based world order. As democratic societies we support global institutions in their efforts to protect human rights, respect the rule of law, advance gender equality, manage tensions between states,

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address conflict, instability and climate change, and share prosperity through trade and investment. That open and resilientinternational order is in turn the best guarantor of security and prosperity for our own citizens. 5. We were joined in Cornwall by the Leaders of Australia, India, the Republic of Korea and South Africa, with whom we have agreed a shared statement on the value and role of open societies. We will continue to work together with these and all our partners in tackling global challenges. We reaffirm our commitment to multilateralism and to working with the G20, UN and wider multilateral system to deliver a strong, sustainable, resilient and inclusive recovery.

HEALTH 6. Our immediate focus is beating COVID-19 and we set a collective goal of ending the pandemic in 2022. The COVID-19 pandemic is not under control anywhere until it is under control everywhere. In an interconnected world global health and health security threats respect no borders. We therefore commit both to strengthen global action now to fight COVID-19, and to take further tangible steps to improve our collective defences against future threats and to bolster global health and health security. This includes strengthening the World Health Organization (WHO) and supporting it in its leading and coordinating role in the global health system.

7. We recognise that the pandemic has left no one untouched, impacting not only physical health but also mental health and social wellbeing. We pay tribute to the extraordinary efforts of first responders, health workers, paid and unpaid care workers, scientists, and manufacturers who have developed and deployed COVID-19 medical tools at a pace few thought possible, opening up a path out of the pandemic. At the same time, we recognise that we have a long way to go to achieve global equitable access to these medical tools, and to manage the risks from new COVID-19 variants which have the potential to reverse our progress. 8. Recognising that ending the pandemic in 2022 will require vaccinating at least 60 per cent of the global population, we will intensify our action to save lives. Our international priority is to accelerate the rollout of safe and effective, accessible and affordable vaccines for the poorest countries, noting the role of extensive immunisation as a global public good. We reiterate our endorsement of the G20 Rome Declaration and the statement agreed by our Foreign and Development Ministers on equitable access. We will work together and with others, leveraging the full spectrum of the capability and capacity we can each deploy to support the global vaccination effort, through finance for and sharing of doses, science, ensuring accessibility through voluntary licensing, manufacturing and ensuring availability through exports, opening supply chains, and supporting final mile delivery. 9. We reaffirm our support for the ACT-A and its COVAX Facility as the primary route for providing vaccines to the poorest countries. Since the start of the pandemic, we have committed $8.6 billion to the vaccines pillar of ACT-A to finance the procurement of vaccines, including $1.9 billion since we last met in February. This provides for the equivalent of over one billion doses. We welcome the recent successful COVAX Summit co-hosted by Japan and Gavi which mobilised financing pledges exceeding the COVAX AMC target. Recognising the urgent need to speed up delivery of doses, we are committing to share at least 870 million doses directly over the next year. → 67

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→ We will make these doses available as soon as possible and aim to deliver at least half by the end of 2021 primarily channelled through COVAX towards those in greatest need. Taken together, the dose equivalent of our financial contributions and our direct dose sharing mean that the G7’s commitments since the start of the pandemic provide for a total of over two billion vaccine doses. The commitments since we last met in February 2021 including here in Carbis Bay provide for one billion doses over the next year. We will work together with the private sector, the G20 and other countries to increase this contribution over the months to come. 10. These commitments build on our wider contributions to the global vaccination effort. These include exports from domestic production, with at least 700 million doses exported or to be exported this year, of which almost half have gone or will go to non-G7 countries, with a commitment to continue exporting in significant proportions; and the promotion of voluntary licensing and not-for-profit global production, which has so far accounted for over 95 per cent of the COVAX supply. 11. We reaffirm our support for all pillars of the ACT-A across, treatments, tests and strengthening public health systems as well as vaccines. As the G7, since our meeting in February, we have committed over $2 billion in total to the ACT-Accelerator (including vaccines), taking our collective commitment since the start of the pandemic to over $10 billion. We support discussions regarding the extension of the ACT-A mandate into 2022, noting the planned comprehensive review to optimise its effectiveness and accountability. Efforts on this scale require close monitoring of progress made by ACT-A with reliable, transparent, up-to-date and clear

information on procurement and delivery to both donor and recipient countries in close partnership with regional organisations. Progress should be reported to the G20 in Rome. 12. In support of achieving our goal, we commit to an end-to-end approach to boost supply of COVID-19 tools, including vaccines, raw materials, tests, therapeutics, and personal protective equipment (PPE), through more production in more places to sustain a global supply network for this pandemic and the next. This will be based on the principles of open trade and transparency, including through terminating unnecessary trade restrictive measures and supporting open, diversified, secure and resilient supply chains. It will be backed up by a practical and pragmatic approach to breaking down bottlenecks that are holding back the efficient use of current production capacity, as well as promoting partnerships to increase capacity further. To this end, we will support the ACT-A Facilitation Council Working Group together with the World Health Organisation (WHO), the World Trade Organisation (WTO), Coalition for Epidemic Preparedness Innovations (CEPI), Gavi, UNICEF and other partners such as the Medicines Patent Pool and the private sector, to coordinate a global vaccine supply network to optimise manufacturing capacities for safe and effective vaccines and other pandemic tools, and to share information about supply chains. Emphasising the need for equitable access to COVID-19 vaccines, we will support manufacturing in low income countries and, noting the importance of intellectual property in this regard, we will engage constructively with discussions at the WTO on the role of intellectual property, including by working consistently within the

We support efforts to accelerate manufacturing capacities of COVID-19tools on all continents, encouraging new partnerships based on voluntary licensing andtechnology transfer on mutually agreed terms and in particular will strive to support African efforts to establish regional manufacturing hubs. GROUPOFNATIONS.COM

TRIPS agreement and the 2001 Doha Declaration on the TRIPS agreement and Public Health. We note the positive impact that voluntary licensing and technology transfer on mutually agreed terms have already made to increasing global supply. We note the positive impact that voluntary licensing and technology transfer on mutually agreed terms have already made to increasing global supply. We will explore all options to ensure affordable and accessible COVID-19 tools for the poorest countries, including non-profit production, tiered and transparent pricing, and sharing by manufacturers of a proportion of production with COVAX, noting the previous precedent of the 10 per cent target in relation to influenza. We support efforts to accelerate manufacturing capacities of COVID-19 tools on all continents, encouraging new partnerships based on voluntary licensing and technology transfer on mutually agreed terms and in particular will strive to support African efforts to establish regional manufacturing hubs. We will continue to work with partners, regional organisations and recipient countries, including through COVAX, to boost country-readiness, and will maintain our efforts to support vaccine confidence. 13. To get and stay ahead of the virus, we commit to continue our investment in cutting edge research and innovation, seeking to ensure that global vaccines remain effective against variants of concern, and that effective tests and treatments are available. To this end, we will boost global surveillance and genomic sequencing and swift information sharing needed to enable the rapid detection to combat the virus and its emerging variants. G7 countries should extend every effort to achieve, wherever possible, a level of genomic sequencing of at least 10 per cent of all new positive COVID-19 samples during the pandemic phase and share genomic sequencing information with existing global databases. 14. Alongside the above, we will continue and enhance our commitments to support fragile countries in dealing with the pandemic and other health challenges. This includes supporting ACT-A partners such as The Global

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Fund and Unitaid which have played a crucial role in delivering lifesaving medical and other supplies, including oxygen, tests, therapeutics and PPE, and assisting countries together with WHO to strengthen their health systems, build capacity, manage outbreaks and prevent disease spread. We call on the World Bank Group and the other Multilateral Development Banks (MDBs) to increase the speed of their financial support, and will continue to support ACT-A in this regard. 15. Alongside responding to the current pandemic, we must act now to strengthen the global health and health security system to be better prepared for future pandemics and to tackle long standing global health threats, including Antimicrobial Resistance. We welcome the Rome Declaration, the measures set out within the Strengthening WHO preparedness for and response to health emergencies’ Resolution as adopted at the 74th World Health Assembly, acknowledge the bold recommendations of the Independent Panel for Pandemic Preparedness and Response (IPPPR), and the work of the International Health Regulations Review Committee (IHR Review Committee) and Independent Oversight and Advisory Committee (IOAC). We look forward to continuing to work with the G20, UN, WHO, WTO and other relevant international organisations, in accordance with their mandates and rules for decision making, to make progress in the swift implementation of recommendations, and to seek the necessary multilateral action, including exploring the potential value of a treaty. We look forward to the special session on pandemic preparedness in the Autumn, as agreed at the World Health Assembly. 16. As G7 countries, we acknowledge our particular role and responsibilities in international efforts to strengthen the global health system, and commit to harnessing our unique strengths to support this. We endorse the G7 Carbis Bay Health Declaration and the G7 Health Ministers’ Communique, and the concrete actions outlined to ensure all countries are better equipped toprevent, detect, respond to and recover from health crises including in alignment with the International → 69

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→ Health Regulations (IHR). We place particular emphasis on: • Improving integration, by strengthening a “One Health” approach across all aspects of pandemic prevention and preparedness, recognising the critical links between human and animal health and the environment. • Strengthening transparency and accountability, including reiterating our commitment to the full implementation of, and improved compliance with, the International Health Regulations 2005. This includes investigating, reporting and responding to outbreaks of unknown origin. We also call for a timely, transparent, expert-led, and science-based WHO-convened Phase 2 COVID-19 Origins study including, asrecommended by the experts’ report, in China. • Improving the speed of response by developing global protocols which trigger collective action in the event of a future pandemic. • Ensuring fairness, inclusion and equity, including the empowerment and leadership of women and minorities in the health and care sectors, and addressing the links between health crises and wider

social determinants of health such as poverty and structural inequalities, and leaving no one behind by advancing the achievement of Universal Health Coverage. • Increasing the resilience of global health systems to deal with outbreaks of emerging and enduring pathogens, including by investing in the health and care workforce worldwide to build capacity and keep health care workers safe. • Strengthening financing models to support longer-term preparedness, sustainable global health and health security, in particular but not limited to the WHO. We will explore options for building consensus this year, around sustainable global health and health security financing, supported by robust financial reporting, increased and defined accountability, and oversight. We ask our Finance Ministers to work with others, the G20 and its High Level Independent Panel (HLIP) to make progress in this regard. We will explore options to strengthen global accountability, tracking and allocation of global health security financing, including the IPPPR recommendation toward a Global Health Threats Council.

17. The G7 has a leading role to play in deploying our collective scientific capabilities as part of an enhanced global health response. Data can play a transformative role in supporting effective early warning and rapid response to health crises. We therefore need to improve the quality and coverage of international, regional and national pathogen surveillance to enable us to gather, share and analyse data to identify new variants in our fight against the current pandemic, and to detect and monitor future pathogens with pandemic potential. We support the establishment of the international pathogen surveillance network - a global pandemic radar - and welcome the WHO’s commitment to work with experts and countries to help achieve this, based on a common framework, including standards and rules for sharing data, that builds on existing detection systems such as the influenza and polio programmes but with greater capacity for genomic sequencing and broader in coverage. We note the report to the Presidency on pathogen surveillance by Sir Jeremy Farrar. To this end we welcome the WHO’s Global Hub for Pandemic and Epidemic Intelligence, as well as additional centres as part of this network. This will also need to be supported by capability building at the regional level, thereby increasing global sequencing and pathogen surveillance capacities across the world. We ask that the WHO reports back to Leaders on the progress of the network by the end of this year as part of the G20 process. 18. It is essential that we maintain and build upon the extraordinary innovation, scientific power, and collaboration that we have seen in the response to this pandemic, including the development of COVID-19 vaccines in just over 300 days. As G7 members we have a particular role to play in seeking to

Alongside responding to the current pandemic, we must act now to strengthen the global health and health security system to be better prepared for future pandemics and to tackle long standing global health threats, including Antimicrobial Resistance. GROUPOFNATIONS.COM

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make safe and effective diagnostics, therapeutics and vaccines even more quickly available in the future. Recognising the unpredictable nature of future health emergencies, in the event of a future pandemic we will seek to create an adequate framework to have safe and effective vaccines, therapeutics and diagnostics available within 100 days, consistent with our core principles around trade and transparency of equitable access, and high regulatory standards. We thank the UK’s Chief Scientific Adviser and his G7 counterparts, the international organisations, industry representatives and expert advisers involved in the partnership on pandemic preparedness convened by the UK Presidency and note their practical proposals. We welcome the 100 Days Mission, and recognise that this will require continued, concerted collaboration between the public and private sectors, and the leadership of international health organisations, to make what has been exceptional during this crisis become routine in the future. We invite G7 Chief Scientific Advisers or equivalents to review progress and report to Leaders before the end of the year.

ECONOMIC RECOVERY AND JOBS 19. Our plans for the recovery from COVID-19 need to put us on a path to strong, sustainable, balanced, inclusive and resilient growth by not only addressing the immediate challenges arising from the pandemic, but also the long-term shifts in the global economy and society, including demographic, technological, and environmental trends, and inequalities between and within countries, many of which have been magnified by the COVID-19 pandemic. Recognising the interconnected nature of these global challenges, we are taking an integrated approach to our shared commitments. 20. To mitigate the impact of the pandemic, we have provided unprecedented support to citizens and businesses, including to retain jobs and support incomes and keep businesses afloat, totalling over $12 trillion including fiscal support and liquidity measures. We will continue

to support our economies for as long as is necessary, shifting the focus of our support from crisis response to promoting strong, resilient, sustainable, balanced and inclusive growth into the future. Once the recovery is firmly established, we need to ensure the long-term sustainability of public finances to enable us to respond to future crises and address longer-term structural challenges, including for the benefit of future generations. 21. We share key priorities including protecting, supporting and creating decent jobs, and investing in quality infrastructure, innovation, training and skills and addressing inequalities. Wewill continue to exchange ideas and share best practices to ensure we learn from each other and update our approaches through different phases of the recovery. We thank Lord Nick Stern for his paper on “G7 leadership for sustainable, resilient and inclusive economic recovery and growth” as commissioned by the UK G7 Presidency. At the heart of our agenda for economic growth and recovery is a green and digital transformation that will increase productivity, create new decent and quality jobs, cut greenhouse gas emissions, improve our resilience, and protect people and the planet as we aim for net zero by 2050. 22. We need a tax system that is fair across the world. We endorse the historic commitment made by the G7 on 5 June. We will now continue the discussion to reach consensus on a global agreement on an equitable solution on the allocation of taxing rights and an ambitious global minimum tax of at least 15 per cent on a country-by-country basis, through the G20/OECD inclusive framework and look forward to reaching an agreement at the July meeting of G20 Finance Ministers and Central Bank Governors. With this, we have taken a significant step towards creating a fairer tax system fit for the 21st century, and reversing a 40-year race to the bottom. Our collaboration will create a stronger level playing field, and it will help raise more tax revenue to support investment and it will crack down on tax avoidance. 23. We recognise the importance to the global economy of safely restarting international travel, by land, air and

sea, and multilateral efforts to achieve this, including new public health guidance on international travel by the WHO, International Civil Aviation Organisation and International Maritime Organisation. We recognise that this will need a set of common standards f or travel including interoperability and mutual recognition of digital applications, testing requirements, recognition of vaccination status including exemptions and comparable criteria for when responsive measures may be required. We welcome G7 Transport and Health Ministers’ ongoing discussions and ask them to deepen cooperation to support a safe reopening. 24. As leaders accountable to all our citizens, we are determined to ensure our plans for recovery build back better for all including by strengthening education and upskilling, and facilitating labour market participation and transitions to ‘level up’ our economies so that no geographic region or person, irrespective of their gender, age, disability, ethnicity, sexual orientation or economic status, is left behind. We recognise this has not always been the case with recoveries from previous global crises, and are together united in our resolve that this time our response should continue to be different. 25. While our support during the pandemic has helped to keep millions of people in employment, the crisis has meant that many have still lost their jobs, and the impact has not felt equally, including with respect to young people, women and disadvantaged groups, as well as atypical and low-skilled workers. The crisis has also shown the importance of social protection systems and the critical role and incredible contribution of caregivers in our societies, often unpaid and often disproportionately women, and the importance of improving decent working conditions for these caregivers as part of our recovery plans. At the same time, technological change is profoundly changing our labour markets. We welcome the contributions of the G7 Employment Taskforce on building back better, greener and more inclusively, including their discussions with social partners and G7 Engagement Groups, including Labour 7, Youth 7, Women 7 and Business 7 → 71

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→ covering how we can prepare our labour markets for the future. One of the highest priorities for our ongoing cooperation will be ensuring our labour markets continue to evolve to respond to these changes and deliver decent jobs and equal opportunities for everyone, while fully respecting the ILO Fundamental Principles and Rights at Work, and taking into account relevant international labour standards. 26. The COVID-19 pandemic has illustrated the risk to economic resilience posed by global crises and shocks. These can manifest from acute shocks, for example as a result of pandemics, and chronically, from challenges such as market imbalances and distortions. Our recoveries must ensure we build back more resilient. As we recover, these risks need addressing in a more coordinated way. We will collaborate more strongly between us and with allies on a new approach to economic resilience. We recognise climate change and growing inequalities as key risks for the global economy. We will consider mechanisms and share best practices to address risks to the resilience of the critical global supply chains, in areas such as critical minerals and semiconductors, reflecting on models used elsewhere such as stress-testing. We will also enhance our cooperation on investment security within our G7 Investment Screening Expert Group, to ensure we are resilient in our openness to all, able to tackle risks in keeping with ourshared principles of open markets, transparency and competition. Our solutions will be built on our shared principles of openness, sustainability, inclusion, innovation and competition will help retain and reinforce the benefits of open markets; without them, we risk a future of normalised volatility and fragmentation in the global economy. To this end we appreciate the work by the G7 Panel on Economic Resilience, and thank the OECD for its work in support, and we will continue to work on the issues highlighted by the Panel.

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FREE AND FAIR TRADE 27. We stand united in our commitment to free and fair trade as foundational principles and objectives of the rulesbased multilateral system. We agree on the need for the world’s leading democratic nations to unite behind a shared vision to ensure the multilateral trading system is reformed, with a modernised rulebook and a reformed World Trade Organization (WTO) at its centre, to be free and fair for all, more sustainable, resilient and responsive to the needs of global citizens. We will maintain a particular focus on ensuring

that the prosperity trade can bring is felt in all parts of our countries and by all peoples across the globe, especially the poor. 28. We support multilateral and plurilateral agendas to address issues in the global trading system itself and shared global challenges. We support G7 Trade Ministers’ efforts in this regard, and look forward to further work in the G20. Looking ahead to the 12th WTO Ministerial Conference (MC12) in November, we will work with other WTO members to make progress on immediate issues

We endorse the conclusions of G7 Trade Ministers on promoting the transition to sustainable supply chains, and acknowledge the risk of carbon leakage, and will work collaboratively to address this risk and to align our trading practices with our commitments under the Paris agreement.

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including reaching a meaningful conclusion to the multilateral negotiation on fisheries subsidies and advancing negotiations on e-commerce. We also welcome the work undertaken towards the conclusion of the negotiations under the Joint Statement Initiative on Services Domestic Regulation by its participants. We support G7 Trade Ministers’ commitments to review our trade policy to ensure it supports women’s economic empowerment, andrecognise the importance of developing a strong evidence base of gender-disaggregated data and analysis. We invite Trade Ministers to support he wider WTO membership to deliver an ambitious outcome at MC12 to bolster women’s participation in trade and economic empowerment. We endorse the conclusions of G7 Trade Ministers on promoting the transition to sustainable supply chains, and acknowledge the risk of carbon leakage, and will work collaboratively to address this risk and to align our trading practices with our commitments under the Paris agreement. We also welcome G7 Trade Ministers’ call to work in the WTO to formulate pragmatic, effective and holistic solutions to support trade in health, as well as their support for open, diversified, secure, and resilient supply chains in the manufacture of COVID-19 critical goods and vaccines and their components. 29. We are concerned by the use of all forms of forced labour in global supply chains, including state-sponsored forced labour of vulnerable groups and minorities, including in the agricultural, solar, and garment sectors. We agree on the importance of upholding human rights and of international labour standards, including those deriving from International Labour Organisation membership, throughout global supply chains and tackling instances of forced labour. We commit to continue to work together including through our own available domestic means and multilateral institutions to protect individuals from forced labour and to ensure that global supply chains are free from the use of forced labour. We therefore task G7 Trade Ministers to

identify areas for strengthened cooperation and collective efforts towards eradicating the use of all forms of forced labour in global supply chains, ahead of the G7 Trade Ministers’ meeting in October 2021. 30. We will provide the sustained effort and momentum necessary to ensure progress is made in the modernisation of the WTO to promote fair competition and help secure shared prosperity for all. We will work together at the WTO and with the wider WTO membership ahead of MC12 to advance the following points: •m odernisation of the global trade rulebook so that it both better reflects, with new rules, the transformations underway in the global economy, such as digitalisation and the green transition; and strengthens rules to protect against unfair practices, such as forced technology transfer, intellectual property theft, lowering of labour and environmental standards to gain competitive advantage, market-distorting actions of state owned enterprises, and harmful industrial subsidies, including those that lead to excess capacity; • s tronger adherence to the existing and modernised rulebook, including through greater respect for and compliance with transparency obligations, and a strengthened WTO monitoring and deliberating function; •a fairer approach to countries’ different responsibilities under the rulebook, including through addressing the arrangements for special and differential treatment so they reflect developments in the global economy but continue to account for the special needs of the least developed and low-income developing countries; •p roper functioning of the WTO’s negotiating function and dispute settlement system, requiring addressing long-standing issues; and, • s upport for the interests of the least developed and low-income developing countries, including in the full implementation of WTO rules to integrate into the world trading system, so that any modernisation of the global trading system supports the social and economic growth and development of these countries.

FUTURE FRONTIERS 31. Future frontiers of the global economy and society - from cyber space to outer space - will determine the future prosperity and wellbeing of people all over the world in the decadesahead. As we are witnessing an increasing divergence of models, this transformation raises important questions about the interaction between economic opportunity, security, ethics, and human rights, and the balance between the role of the state, businesses and individuals. 32. We will work together as part of an ongoing agenda towards a trusted, values-driven digital ecosystem for the common good that enhances prosperity in a way that is sustainable, inclusive, transparent and human-centric. In doing so we will make it a sustained strategic priority to update our regulatory frameworks and work together with other relevant stakeholders, including young people, to ensure digital ecosystems evolve in a way that reflects our shared values. Wecommit to preserve an open, interoperable, reliable and secure internet, one that is unfragmented, supports freedom, innovation and trust which empowers people. If used properly, technologies can help us strengthen health capacities, tackle environmental threats, widen access to education and open new economic opportunities. We will leverage these technologies to advance tech for the common good and promote digital literacy worldwide. We will strengthen coordination on and support for the implementation and development of global norms and standards to ensure that the use and evolution of new technologies reflects our shared democratic values and commitment to open and competitive markets, strong safeguards including for human rights and fundamental freedoms. We also affirm our opposition to measures which may undermine these democratic values, such as government-imposed internet shutdowns and network restrictions. We support the development of harmonised principles of data collection which encourage public and private organisations to act to address bias in their own systems, noting new forms of decision-making → 73

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→ have surfaced examples where algorithms have entrenched or amplified historic biases, or even created new forms of bias or unfairness.

33. We call on the private sector to join us in our efforts and reaffirm our support for industry-led inclusive multi-stakeholder approaches to standard setting, in line with our values and principles which underpin these standards. As such, we welcome the Presidency’s initiative of a ‘Future Tech Forum’ in September 2021 with the support of the OECD. The Forum will convene like-minded democratic partners to discuss the role of technology in supporting open societies and tackling global challenges. The Forum will support efforts to mitigate the risk of regulatory fragmentation and to facilitate coherency of our emerging technology ecosystems, and it will invite proposals for Leaders to consider in appropriate global fora. We support the aim to facilitate dialogue between governments, industry, academia, civil society and other key stakeholders. As such we will continue to take bold action to build more transparency in our technologies, building on the Open GROUPOFNATIONS.COM

Government Partnership. Building on the work of the Global Partnership for Artificial Intelligence (GPAI) advanced by the Canadian and French G7 Presidencies in 2018 and 2019, we will aim to rally all partners around our open and human centric approach to artificial intelligence looking forward to the GPAI Summit in Paris in November 2021. To support effective standard-setting that reflects our core values and principles, we will strengthen our coordination, including by consulting with industry, with regards to engagement with and appointments to Standard Developing Organisations, where appropriate. We commit to better sharing of information and best practice, including between our national standards bodies, enhanced capacity building and support for multi-stakeholder participation in standard-setting. To this end, we endorse the Framework for G7 Collaboration on Digital Technical Standards. 34. We will support cooperation on specific areas in relation to the evolution of future frontiers. Based on the work of our Digital and Technology

Ministers, we agree the focus of our cooperation for this year will be a structured dialogue around specific areas: • Championing data free flow with trust, to better leverage the potential f valuable data-driven technologies while continuing to address challenges related to data protection. To that end we endorse our Digital Ministers’ Roadmap for Cooperation on Data Free Flow with Trust. • Enabling businesses to use electronic transferable records in order to generate efficiencies and economic savings to support the global economic recovery. In support of this aim we endorse the Framework for G7 Collaboration on Electronic Transferable Records. • Taking further steps to improve internet safety and counter hate speech, while protecting human rights and fundamental freedoms, including free expression. We will protect our citizens online and offline, including children and vulnerable at-risk groups, and especially women and girls. We therefore endorse our Digital Ministers’ Internet Safety Principles which aim to set out common approaches to improving online safety. We invite Interior Ministers to work on a G7 agreement on sharing of information and best practice on tackling existing and emerging online forms of gender-based violence, including forms of online abuse. We affirm our support of the Christchurch Call, emphasising the need for respecting freedoms of speech and peoples’ reasonable expectation of privacy and further invite G7 Interior Ministers to continue work on preventing and countering Violent Extremist and Terrorist Use of the Internet begun in Ischia in 2017 and continued in Toronto in 2018 and Paris in 2019. We commit to work together to further a common understanding of how existing international law applies to cyberspace and welcome the work of our Foreign Ministers to promote this approach at the UN and other international fora. We also commit to work together to urgently address the escalating shared threat from criminal ransomware networks. →

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→ We call on all states to urgently identify and disrupt ransomware criminal networks operating from within their borders, and hold those networks accountable for their actions. • Securing supply chains. Recognising the foundational role that telecommunications infrastructure, including 5G and future communication technologies, plays and will play in underpinning our wider digital and ICT infrastructure we will promote secure, resilient, competitive, transparent and sustainable and diverse digital, telecoms, and ICT infrastructure supply chains. • Deepening cooperation on Digital Competition in order to drive innovation across the global economy, enhancing consumer choice. We recognise that there is increasing international consensus that participants with significant market power can exploit their power to hold back digital markets and the wider economy. Therefore, building on the 2019 French G7 Presidency’s common understanding on ‘Competition and the Digital Economy’, we will work together through existing international and multilateral fora to find a coherent way to encourage competition and support innovation in digital markets. 35. Beyond these priorities, we will review whether other areas of collaboration with respect to future frontiers are appropriate. We are committed to the safe and sustainable use of space to support humanity’s ambition now and in the future. We recognise the importance of developing common standards, best practices and guidelines related to sustainable space operations alongside the need for a collaborative approach for space traffic management and coordination. We call on all nations to work together,

through groups like the United Nations Committee on the Peaceful Uses of Outer Space, the International Organization for Standardization and the Inter-Agency Space Debris Coordination Committee, to preserve the space environment for future generations. 36. Underpinning all of these future frontiers, and wider challenges of the coming century, is the importance of scientific discovery and its deployment. We will therefore work together to promote stronger collaboration on research and development, and promote principles of research security and integrity and open science building off the historical levels of collaboration seen in the past year to internationally beneficial results. Central to this should be building a diverse and resilient science and research community, inclusive for all groups including women. Domestically we will seek to redress the imbalance in women’s and girls’ under-representation in science, technology, engineering and mathematics (STEM) which acts as a barrier to access to these growing industries. We will explore how existing and potential new mechanisms and initiatives can support risk reduction, prevention and response to future systemic crises, natural disasters and pace of technological change. As such we endorse the G7 Compact on Research Collaboration and its commitment to: support policies, legal frameworks and programmes to promote research collaboration; promote sharing of research data; explore enhancements to research assessment and rewards for collaboration and knowledge sharing; and develop a common set of principles which will help protect research and innovation ecosystem across the G7 to open and reciprocal research collaboration.

We will explore how existing and potential new mechanisms and initiatives can support risk reduction, prevention and response to future systemic crises, natural disasters and pace of technological change. GROUPOFNATIONS.COM

CLIMATE AND ENVIRONMENT 37. The unprecedented and interdependent crises of climate change and biodiversity loss pose an existential threat to people, prosperity, security, and nature. Through global action and concerted leadership, 2021 should be a turning point for our planet as we commit to a green transition that cuts emissions, increases adaptation action worldwide, halts and reverses biodiversity loss, and, through policy and technological transformation, creates new high quality jobs and increases prosperity and wellbeing. Ahead of the 15th Conference of the Parties of the Convention on Biological Diversity (CBD COP15), the 26th UN Climate Change Conference of the Parties (UNFCCC COP26) and the fifteenth session of the Conference of the Parties to the UN Convention to Combat Desertification (CCD COP15), we commit to accelerating efforts to cut greenhouse gas emissions and keep the 1.5°C global warming threshold within reach, strengthening adaptation and resilience to protect people from the impacts of climate change, halting and reversing biodiversity loss, mobilising finance and leveraging innovation to reach these goals. We welcome and encourage business, civil society and regional commitments to global climate and biodiversity ambition through science based targets, including the Race to Resilience and Race to Zero campaigns. Together we welcome the active role and participation of vulnerable communities, underrepresented groups and will work towards achieving equality, including gender equality, in the climate and environment sector. We will continue our efforts to progress the Equal by 30 Campaign for gender equality in the energy sector. 38. As G7 members, we all reaffirm our commitment to the Paris Agreement and to strengthening and accelerating its implementation through robust national policies and measures and scaled up international cooperation. o this end we collectively commit to ambitious and accelerated efforts to achieve net zero greenhouse gas emissions as soon as possible and by 2050 at the latest, recognising the importance of significant action this decade. In line with this goal, we

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have each committed to increased 2030 targets and, where not done already, commit to submit aligned Nationally Determined Contributions (NDCs) as soon as possible ahead of COP26, which will cut our collective emissions by around half compared to 2010 or over half compared to 2005. We also commit to submit 2050 Long Term Strategies (LTSs) by COP26 and to regularly update these as needed in line with the Paris agreement to reflect the latest science, technological advances and market developments. Recognising the importance of adaptation in our own national planning, we also commit to submitting adaptation communications as soon as possible, and if feasible by COP26. In fulfilling these commitments we will continue to increase our efforts to keep a limit of 1.5°C temperature rise within reach and chart a G7 pathway towards Net Zero economies. We call on all countries, in particular major emitting economies, to join us in these goals as part of a global effort, stepping up their commitments to reflect the highest possible ambition and transparency on implementation under the Paris Agreement. We also note the value of supporting international initiatives such as the OECD’s International Programme for Action on Climate Mechanism (IPAC) 39. To be credible, ambitions need to be supported by tangible actions in all sectors of our economies and societies. We will lead a technology-driven transition to Net Zero, supported by relevant policies, noting the clear roadmap provided by the International Energy Agency and prioritising the most urgent and polluting sectors and activities: • In our energy sectors, we will increase energy efficiency, accelerate renewable and other zero emissions energy deployment, reduce wasteful consumption, leverage innovation all whilst maintaining energy security. Domestically, we commit to achieve an overwhelmingly decarbonised power system in the 2030s and to actions to accelerate this. Internationally, we commit to aligning official international financing with the global achievement of net zero GHG emissions no later than 2050 and for deep emissions reductions in the 2020s. → 77

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→ We will phase out new direct government support for international carbon-intensive fossil fuel energy as soon as possible, with limited exceptions consistent with an ambitious climate neutrality pathway, the Paris Agreement, 1.5°C goal and best available science. To be credible, ambitions need to be supported by tangible actions in all sectors of our economies and societies. We will lead a technology-driven transition to Net Zero, noting the clear roadmap provided by the International Energy Agency and prioritising the most urgent and polluting sectors and activities. • Recognising that coal power generation is the single biggest cause of greenhouse gas emissions, and consistent with this overall approach and our strengthened NDCs, domestically we have committed to rapidly scale-up technologies and policies that further accelerate the transition away from unabated coal capacity, consistent with our 2030 NDCs and net zero commitments. This transition must go hand in hand with policies and support for a just transition for affected workers, and sectors so that no person, group or geographic region is left behind. To accelerate the international transition away from coal, recognising that continued global investment in unabated coal power generation is incompatible with keeping 1.5°C within reach we stress that international investments in unabated coal must stop now and we commit now to an end to new direct government support for unabated international thermal coal power generation by the end of 2021, including through Official Development Assistance, export finance, investment, and financial and trade promotion support. This transition must also be complemented by support to deliver this, including coordinating through the Energy Transition Council. We welcome the work by the Climate Investment Funds (CIFs) and donors plan to commit up to $2 billion in the coming year to its Accelerating the Coal Transition and Integrating Renewable Energy programs. These concessional resources are expected to mobilize GROUPOFNATIONS.COM

up to $10 billion in co-financing, including from the private sector, to support renewable energy deployment in developing and emerging economies. We call on other major economies to

We will lead a technology-driven transition to Net Zero, supported by relevant policies, noting the clear roadmap provided by the International Energy Agency and prioritising the most urgent and polluting sectors and activities.

adopt such commitments and join us in phasing out the most polluting energy sources, and scaling up investment in the technology and infrastructure to facilitate the clean, green transition. More broadly, we reaffirm our existing commitment to eliminating inefficient fossil fuel subsidies by 2025, and call on all countries to join us, recognising the substantial financial resource this could unlock globally to support the transition and the need to commit to a clear timeline. • In our transport sectors, we commit to sustainable, decarbonised mobility and to scaling up zero emission vehicle technologies, including buses, trains, shipping and aviation. We recognise that this will require dramatically increasing the pace of the global decarbonisation of the road transport sector throughout the 2020s, and beyond. This includes support for accelerating the roll out of necessary infrastructure, such as charging and fueling infrastructure and enhancing the offer of more sustainable transport modes, including public transport, shared mobility, cycling and walking. We commit to accelerate the transition away from new sales of diesel and petrol cars to promote the uptake of zero emission vehicles. • In our industrial and innovation sectors we will take action to decarbonise areas such as iron nd steel, cement, chemicals, and petrochemicals, in order to reach net zero emissions across the whole economy. To this end, we will harness our collective strengths in science, technological innovation, policy design, financing, and regulation including through our launch of the G7 Industrial Decarbonisation Agenda to complement, support and amplify ambition of existing initiatives. This includes further action on public procurement, standards and industrial efforts to define and stimulate demand for green products and enhance energy and resource efficiency in industry. We will focus on accelerating progress on electrification and batteries, hydrogen, carbon capture, usage and storage, zero emission aviation and shipping,

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and for those countries that opt to use it, nuclear power. We therefore fully support launching Mission Innovation phase two and the Clean Energy Ministerial third phase. • In our homes and buildings, and also industry, we recognise the need for an urgent step change in the deployment of renewable heating and cooling and reduction in energy demand. This complements required shifts in building design, sustainable materials and retrofits. We therefore welcome the Super-Efficient Equipment and Appliance Deployment (SEAD) initiative’s goal of doubling the efficiency of lighting, cooling, refrigeration and motor systems sold globally by 2030. • In our agricultural, forestry and other land use sectors, we commit to ensuring our policies encourage sustainable production, the protection, conservation, and regeneration of ecosystems, and the sequestration of carbon. We welcome the opportunity to discuss these issues at the COP26 Transition to Sustainable Agriculture Policy Dialogue and UN Food Systems Summit in September. 40. Achieving our collective ambitions of a global green and resilient recovery offers the greatest economic opportunity of our time to boost income, innovation, jobs, productivity and growth while also accelerating action to tackle the existential threat of climate change and environmental degradation. To close the gap between the funds needed and actual finance flows requires mobilising and aligning finance and investment at scale towards the technologies, infrastructure, ecosystems, businesses, jobs and economies that will underpin a net-zero emissions resilient future that leaves no one behind. This includes the deployment and alignment of all sources of finance: public and private, national and multilateral. We recognise the particular challenges of financing the transition to net zero economies poses for developing countries and stand by our bilateral and multilateral commitments to support these partners, in the context of meaningful and transparent decarbonisation efforts. We reaffirm the collective developed country goal to jointly mobilise $100 billion per year from public and private sources, through to 2025 in the context

of meaningful mitigation actions and transparency on implementation. Towards this end, we commit to each increase and improve our overall international public climate finance contributions for this period and call on other developed countries to join and enhance their contributions to this effort. We welcome the commitments already made by some of the G7 to increase climate finance and look forward to new commitments from others well ahead of COP26 in Glasgow. This increase in quantity and predictability is complemented by improved effectiveness and accessibility, and includes more finance contributing to adaptation and resilience, disaster risk and insurance, as well as support for nature and nature-based solutions. We are committed to further enhance synergies between finance for climate and biodiversity and to promote funding that has co-benefits for climate and nature and are working intensively towards increasing the quantity of finance to nature and nature-based solutions. We welcome efforts of the MDBs to scale up their climate and nature finance, urge them to mobilise increased finance including from the private sector, and call on them, Development Finance Institutions (DFIs), multilateral funds, public banks and relevant agencies to publish before COP26 a high-level plan and date by which all their operations will be fully aligned with and support the objectives of the Paris Agreement and the multilateral environmental agreements we support. 41. We also support the transformation underway to mobilise further private capital towards these objectives in particular to support developing countries and emerging markets in making the most of the opportunities in the transition; whilst mitigating and adapting to climate change. We call upon the MDBs and our DFIs to prioritise capital mobilization strategies, initiatives and incentives within their operations. The G7 commits to leverage different types of blended finance vehicles including through our greater strategic approach to development finance, greater collaboration between our DFIs and billions worth of planned commitments towards CIF and Green

Climate Fund, all of which will mobilise billions more in private finance. We also encourage further development of disaster risk finance markets. Towards this, G7 members have committed hundreds of millions worth of new financing for early action, disaster risk and insurance in line with the InsuResilience Global Partnership and Risk-Informed Early Action Partnership (REAP). We commit to establishing the necessary market infrastructure for private finance to support and incentivise the net zero transition. Developing the global green finance market will help mobilise private sector finance, and reinforce government policy to meet our net zero commitments. We support the recently launched Glasgow Finance Alliance for Net Zero, and call on swift, robust delivery of their commitments to reduce real economy emissions. We emphasise the need to green the global financial system so that financial decisions take climate considerations into account. We support moving towards mandatory climate-related financial disclosures that provide consistent and decision-useful information for market participants and that are based on the Task Force on Climate-related Financial Disclosures (TCFD) framework, in line with domestic regulatory frameworks. We also look forward to the establishment of the Taskforce on Nature-related Financial Disclosures and its recommendations. These initiatives will help mobilise the trillions of dollars of private sector finance needed, and reinforce government policy to meet our net zero commitments. We recognise the potential of high integrity carbon markets and carbon pricing to foster cost-efficient reductions in emission levels, drive innovation and enable a transformation to net zero, through the optimal use of a range of policy levers to price carbon. We underline their importance towards the establishment of a fair and efficient carbon pricing trajectory to accelerate the decarbonisation of our economies, to achieve a net zero global emissions pathway. In all this, we will develop gender-responsive approaches to climate and nature financing, investment and policies, so that women and girls can participate fully in the future green economy. → 79

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We support an ambitious post-2020 global biodiversity framework to be adopted by parties at CBD COP15 which sets ambitious goals, strengthens implementation, and enhances regular reporting and review. → 42. Biodiversity loss is an intrinsically linked, mutually reinforcing, and equally important existential threat to our planet and our people alongside climate change. In this context, we acknowledge as the G7 our contribution to the decline of biodiversity and pledge to play our part in its restoration and conservation. We support an ambitious post-2020 global biodiversity framework to be adopted by parties at CBD COP15 which sets ambitious goals, strengthens implementation, and enhances regular reporting and review. We acknowledge our responsibility to support the world in reversing the trajectory of the loss of biodiversity and the natural environments that support it, alongside ensuring that the impact on nature is fully taken into account in our policy decision making. 43. In support of strong outcomes for nature at the Convention on Biological Diversity COP-15 in Kunming and COP26 this year, and noting the Leaders’ Pledge for Nature launched at the 75th session of the UN General Assembly 2020, we adopt the G7 2030 Nature Compact in support of the global mission to halt and reverse biodiversity loss by 2030. The Nature Compact commits us to take action across four key pillars: GROUPOFNATIONS.COM

•F irst, we commit to champion ambitious and effective global biodiversity targets, including conserving or protecting at least 30 per cent of global land and at least 30 per cent of the global ocean by 2030. We will contribute by conserving or protecting at least 30 per cent of our own land, including terrestrial and inland waters, and coastal and marine areas by 2030 according to national circumstances and approaches. These actions will help stem the extinction crisis, safeguard water and food supplies, absorb carbon pollution, and reduce the risks of future pandemics. We also fully support the commitment of the Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR) to develop a representative system of Marine Protected Areas (MPAs) in the Convention area in the Southern Ocean based on the best available scientific evidence. •S econd, we will support the transition to sustainable management and use of natural resources, and use appropriate levers to address unsustainable and illegal activities negatively impacting nature, and therefore livelihoods. This includes stepping up action to tackle increasing levels of plastic pollution in the ocean, including working

through the UN Environment Assembly (UNEA) on options including strengthening existing instruments and a potential new agreement or other instrument to address marine plastic litter, including at UNEA-5.2. • Third, we will work intensively towards increasing investment in the protection, conservation and restoration of nature, including committing to increase finance for nature based solutions through to 2025, maximising synergies of climate and biodiversity finance, and ensuring prominence of nature in both policy and economic decision-making. •F inally, we will prioritise strengthened accountability and implementation mechanisms of Multilateral Environmental Agreements to which we are parties. We will implement the Compact and review our progress against it regularly through existing G7 mechanisms, including at the G7 Leaders’ Summit in five years when we will review options to ratchet up our action and ambition, as needed, to ensure delivery of our 2030 vision. Those G7 members party to the CBD will also champion successful implementation of the post-2020 global biodiversity framework to be agreed at COP15. →

SPECIAL G7 SUMMIT RAPPORTEUR

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GLOBAL BRIEFING REPORT REVIEW CARBIS BAY_CORNWALL_UNITED KINGDOM_JUNE 2021

25 CELEBRATING YEARS

OF G7 PUBLISHING

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GENDER EQUALITY → 44. Gender equality is at the heart of an open, inclusive, and just society. Persistent gaps in gender equality affect access to basic services as well as decent work, equal pay, social protection, education, technology and many other areas. Unequal division of unpaid care responsibilities in the home and low pay for paid care work also limits women’s empowerment, social and economic participation and leadership. Gender equality intersects with other characteristics and our actions need to take account of these intersections in a meaningful way, including tackling racism in all forms and violence and discrimination against LGBQTI+ populations. We recognise the devastating and disproportionate impact of COVID-19 on women and girls, which risks reversing hardwon gains especially with regards to gender-based violence, sexual and reproductive health and rights, education and jobs. 45. The advancement of gender equity and equality are a central pillar of our plans and policies to build back better, informed by three key priorities: educating girls, empowering women and ending violence against women and girls. Achieving gender equality needs to be underpinned by the full, equal and meaningful participation of women in all aspects of decision-making. We are committed to close alignment with the Generation Equality Forum (GEF) and commend the organisation of the first G20 Ministerial Conference on women’s empowerment. We thank the Gender Equality Advisory Council (GEAC) for its work and recommendations, and look forward to receiving the GEAC’s

full report in the Autumn. We agree to a consistent and sustained focus on gender equality to project our global leadership on this issue, and intend to convene the GEAC as a standing feature of all G7 Presidencies. We know that we cannot make true progress towards gender equality without robust data and a way to track it over time. We invite the GEAC to work with existing accountability mechanisms such as the Accountability Working Group and the Taormina Roadmap to monitor G7 commitments to achieve gender equality on an annual basis. 46. We reaffirm our full commitment to promote and protect the sexual and reproductive health and rights (SRHR) of all individuals, and recognise the essential and transformative role they play in gender equality and women’s and girls’ empowerment, and in supporting diversity, including of sexual orientations and gender identities. We commit to working together to prevent and address the negative impacts on access to SRHR from the COVID-19 pandemic, with specific attention to the most at risk, marginalised and inadequately served groups. In recognition of increased violence against women and girls during the COVID-19 crisis, we commit to preventing, responding to and eliminating all forms of sexual and gender-based violence (GBV). We will achieve this through women’s empowerment and by scaling-up implementation of evidence-based, accessible survivor and victim-centred policies, prevention and support programmes, including through our pandemic response and recovery at home, in partner countries and in

conflict zones. We acknowledge our collective responsibility to beneficiaries and partners, their communities, and survivors to do more to address sexual exploitation and abuse in international aid. We condemn GBV against women and girls and denounce the use of sexual violence in conflict situations and underscore that such acts may constitute crimes against humanity or war crimes. We note the varied legal and institutional frameworks which currently address conflict and invite Foreign and Development Ministers to consider how best to strengthen international architecture around conflict-related sexual violence. 47. COVID-19 has exacerbated underlying inequalities, leading to one of the worst education crises in history for children around the world, but especially for the most marginalised and at risk girls. Around 11 million girls from pre-primary to secondary school are at risk of not returning to school. We commit to two new global SDG4 milestone girls’ education targets: million more girls in education by 2026 in low and lower-middle income countries; and 20 million more girls reading by age 10 or the end of primary school by 2026, in low and lower-middle income countries. We endorse the G7 Foreign and Development Ministers’ Girls Education Declaration. These targets should be underpinned by sustainable financing and so today G7 members commit to a combined total pledge of at least $2¾ billion funding over the next 5 years for the Global Partnership for Education (GPE) ahead of its replenishment in July. We call on others to join with the G7 and make ambitious pledges to a fully funded GPE.

Gender equality is at the heart of an open, inclusive, and just society. Persistent gaps in gender equality affect access to basic services as well as decent work, equal pay, social protection, education, technology and many other areas. Unequal division of unpaid care responsibilities in the home and low pay for paid care work also limits women’s empowerment, social and economic participation and leadership. GROUPOFNATIONS.COM

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GLOBAL RESPONSIBILITY AND INTERNATIONAL ACTION 48. We will work together to promote our shared values as open societies in the international system, as reflected in the Statement on Open Societies signed with the Leaders of countries from the Indo-Pacific region and Africa, who have joined us at Carbis Bay, namely, Australia, India, South Africa and the Republic of Korea. Further to this, we commit to: increase cooperation on supporting democracy, including through strengthening the G7 Rapid Response Mechanism to counter f oreign threats to democracy including disinformation; strengthen media freedom and ensure the protection of journalists; support freedom of religion or belief; condemn racism in all its forms; address human rights abuses, including the failure to protect civilians in conflict; oppose the practice of arbitrary detention, including by amplifying the Declaration Against Arbitrary Detention in State-to-State Relations and welcoming its Partnership Action Plan; and recognise the need for

action on corruption, including by sharing information on illicit financial activities, tackling the misuse of shell companies, and curtailing the ability of illicit actors to hide wealth, including in real estate. We support the growth of peaceful, just and inclusive societies by ensuring safe and vibrant civic spaces. For our own part, our discussions have benefited from input from the perspectives and expertise of external engagement groups representing all sectors of society, including the Business 7, Civil Society 7, Labour 7, Science 7, Women 7 and Youth 7. We thank them for their consideration and recommendations across the breadth of our policy priorities. 49. We recognise the particular responsibility of the largest countries and economies in upholding the rulesbased international system and international law. We commit to play our role in this, working with all partners and as members of the G20, UN and wider international community, and encourage others to do the same. We will do this based on our shared agenda

and democratic values. With regard to China, and competition in the global economy, we will continue to consult on collective approaches to challenging non-market policies and practices which undermine the fair and transparent operation of the global economy. In the context of our respective responsibilities in the multilateral system, we will cooperate where it is in our mutual interest on shared global challenges, in particular addressing climate change and biodiversity loss in the context of COP26 and other multilateral discussions. At the same time and in sodoing, we will promote our values, including by calling on China to respect City Energy Analyst Tool human rights and fundamental freedoms, especially in relation to Xinjiang and those rights, freedoms and high degree of autonomy for Hong Kong enshrined in the Sino-British Joint Declaration and the Basic Law. 50. We endorse the statement made by our Foreign and Development Ministers in May. Building on this, in particular to reflect recent developments, we have reviewed the following live issues. 51. We reiterate our interest in stable and predictable relations with Russia, and will continue to engage where there are areas of mutual interest. We reaffirm our call on Russia to stop its destabilising behaviour and malign activities, including its interference in other countries’ democratic systems, and to fulfil its international human rights obligations and commitments. In particular, we call on Russia to urgently investigate and credibly explain the use of a chemical weapon on its soil, to end its systematic crackdown on independent civil society and media, and to identify, disrupt, and hold to account those within its borders who conduct ransomware attacks, abuse virtual currency to launder ransoms, and other cybercrimes. 52. We reiterate our support for the independence, sovereignty and territorial integrity of Ukraine within its internationally recognised borders. We call on Russia to alleviate tensions and act in accordance with its international obligations, and to withdraw the Russian military troops and materiel at the eastern border of Ukraine and on the Crimean peninsula. We remain firmly of the view that Russia is aUrban partySingapore to → 83

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→ the conflict in Eastern Ukraine, not a mediator. We affirm our support for the Normandy Process to secure the implementation of the Minsk agreements, and call on Russia and the armed formations it backs to engage constructively and recommit to the ceasefire. We reaffirm our efforts to strengthen Ukraine’s democracy and institutions, encouraging further progress on reform. 53. We are deeply concerned by the Belarusian authorities’ continuing attacks on human rights, fundamental freedoms and international law, as exemplified by the forced landing of flight FR4978 and the arrest of an independent journalist and his partner. We will work together to hold those responsible to account, including through imposing sanctions, and to continue to support civil society, independent media and human rights in Belarus. We call on the regime to: change course and implement all the recommendations of the independent expert mission under the Organization for Security and Co-operation in Europe’s (OSCE) Moscow Mechanism; enter into meaningful dialogue with all sectors of society; and hold new free and fair elections. 54. We are deeply concerned by the ongoing conflict in Ethiopia’s Tigray region and reports of an unfolding major humanitarian tragedy, including potentially hundreds of thousands in famine conditions. We condemn ongoing atrocities, including widespread sexual violence, and we welcome the ongoing Office of the United Nations High Commissioner for Human Rights (OHCHR) investigations and call for full accountability for reported human rights violations in Tigray and for the perpetrators to be brought to justice. We call for an immediate cessation of hostilities, unimpeded humanitarian access to all areas and the immediate withdrawal of Eritrean forces. We urge all parties to pursue a credible political process, which is the only solution to the crisis. We further call upon Ethiopia’s leaders to advance a broader inclusive political process to foster national reconciliation and consensus toward a future based on respect for the human and political rights of all Ethiopians. GROUPOFNATIONS.COM

55. While acknowledging the increased international mobilisation and the progress in the fight against terrorism in the Sahel, we express our concern about the continuing attacks targeting civilian populations, and the deepening humanitarian crisis. We urge all actors to respect human rights and international humanitarian law. We will deliver on our commitments to renew efforts to address drivers of instability, with a focus on political and civilian dimensions of the “civil surge” agreed upon by the governments of the G5 Sahel and their partners, gathered in the Sahel coalition, at the N’Djamena summit in February 2021. We support

the efforts of the African Union and Economic Economic Community of West African States (ECOWAS) in responseto recent events in Chad and Mali. We reiterate the necessity to create the conditions for timely civilian-led transitions to democratic, constitutional rule in both countries. 56. We confirm our full support for the interim executive authority as it pursues Libyan-led and Libyan-owned stabilisation, facilitated by the UN in the framework of the Berlin Process. Wereaffirm the importance of free, fair and inclusive elections to be held on 24 December. We reiterate the urgent need to implement in full the 23 October

We will work together to promote our shared values as open societies in the international system, as reflected in the Statement on Open Societies signed with the Leaders of countries from the Indo-Pacific region and Africa, who have joined us at Carbis Bay, namely, Australia, India, South Africa and the Republic of Korea.

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ceasefire agreement, including through the withdrawal of all foreign fighters and mercenaries from Libya. All states must comply with UN Security Council Resolutions 2570 and 2571. 57. We call on all Afghan parties to reduce violence and agree on steps that enable the successful implementation of a permanent and comprehensive ceasefire and to engage fully with the peace process. In Afghanistan, a sustainable, inclusive political settlement is the only way to achieve a just and durable peace that benefits all Afghans. We are determined to maintain our support for the Afghan government to address the country’s urgent security and humanitarian needs, and to help the people of Afghanistan, including women, young people and minority groups, as they seek to preserve hard-won rights and freedoms. 58. We call for the complete denuclearisation of the Korean peninsula and the verifiable and irreversible abandonment of the Democratic People’s Republic of Korea’s (DPRK) unlawfulweapons of mass destruction and ballistic missile programmes in accordance with all relevant UN Security Council resolutions. We call on all states to fully implement these resolutions and their associated sanctions. We welcome the readiness of the United States to continue its diplomatic efforts in coordination with all relevant partners and call on the DPRK to engage and resume dialogue. We once again call on DPRK to respect human rights for all and to resolve the issue of abductions immediately. 59. We condemn in the strongest terms the military coup in Myanmar, and the violence committed by Myanmar’s security forces, and we call for the immediate release of those detained arbitrarily. We pledge our support to those advocating peacefully for a stable and inclusive democracy. Recalling ASEAN’s central role, we welcome its Five Point Consensus and urge swift implementation. We reiterate our commitment to ensuring that neither development assistance nor the sale of arms will benefit the military, and urge businesses to exercise due diligence in their trade and investment in the same vein. We reaffirm G7 unity

on pursuing additional measures should they prove necessary. We are also deeply concerned by the humanitarian situation, call for unfettered humanitarian access to vulnerable and displaced populations, support the Humanitarian Response Plan, and encourage others to contribute. 60. We reiterate the importance of maintaining a free and open Indo Pacific, which is inclusive and based on the rule of law. We underscore the importance of peace and stability across the Taiwan Strait, and encourage the peaceful resolution of cross-Strait issues. We remain seriously concerned about the situation in the East and South China Seas and strongly oppose any unilateral attempts to change the status quo and increase tensions. 61. We are committed to ensuring that Iran will never develop a nuclear weapon. We welcome the substantive discussions between Joint Comprehensive Plan of Action (JCPoA) participants, and separately with the United States, to accomplish a return of the United States and Iran to their JCPoA commitments. We support the goal of restoring the nonproliferation benefits of the JCPoA and of ensuring the exclusively peaceful nature of Iran’s nuclear programme. We urge Iran to stop and reverse all measures that reduce transparency and to ensure full and timely cooperation with the International Atomic Energy Agency. A restored and fully-implemented JCPoA could also pave the way to further address regional and security concerns. We condemn Iran’s support to proxy forces and non-state armed actors, including through financing, training and the proliferation of missile technology and weapons. We call on Iran to stop all ballistic missile activities and proliferation inconsistent with UNSCR 2231 and other relevant resolutions, refrain from destabilising actions and play a constructive role in fostering regional stability and peace. We support efforts to pursue transparency, accountability and justice for the victims of Ukraine International Airlines Flight 752, shot down by Iran in January 2020. We reiterate our deep concern over the continued human rights violations and abuses in Iran.

62. We commend the Iraqi Security Forces, including the Kurdish Peshmerga, and Government of Iraq in their success against ISIS and affirm continuing support for those efforts, including stabilisation in liberated areas. We also affirm our support for Iraq’s sovereignty, independence, and territorial integrity. We fully endorse UNSCR 2576 and its call for election monitors to help ensure free and fair elections in October, and encourage all Iraqis to participate in those elections. Finally, we welcome the efforts of the Government of Iraq to hold illegal armed groups accountable for attacks against Iraqi citizens and Coalition personnel who are in Iraq at its invitation solely to train and advise Iraqi forces in their fight against ISIS. 63. We acknowledge the far-reaching impacts of COVID-19 on the poorest countries who already were grappling with the effects of conflict, climate change, socio-economic shocks and a chronic lack of resources and infrastructure. As we advance recovery plans to support our economies and build back better, in line with the 2030 Agenda for Sustainable Development, including through innovative measures and massive budgetary support, developing partner countries, especially in Africa, cannot be left behind. We are deeply concerned that the pandemic has set back progress towards the Sustainable Development Goals and continues to exacerbate global inequalities, and therefore recommit to enhance our efforts to achieve the SDGs by 2030, including by supporting the Addis Ababa Action Agenda (AAAA) and aligning financial flows with the SDGs. We take note of the policy options developed through the Financing for Development in the Era of COVID-19 and Beyond Initiative. 64. The IMF estimates that, between now and 2025, low income countries will need around $200 billion to respond to the pandemic and $250 billion in investment spending for convergence with advanced economies. We reiterate our commitment to implement the G20 and Paris Club Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative. We support fair and open lending practices, and call on all creditors to adhere to these. → 85

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→ We underline the importance of information sharing, and reiterate the need for comparability of treatment for private and other official bilateral creditors in debt treatments. We urge the MDBs to explore all options to unlock additional financing for developing countries, including more efficient and effective use of their resources, further work on balance sheet optimisation and further analysis of their capital adequacy frameworks. 65. We welcome the agreement by G7 Finance Ministers and Central Bank Governors to support a new $650 billion allocation of IMF Special Drawing Rights, urging implementation by the end of August 2021 accompanied by transparency and accountability measures. We encourage the IMF to work quickly with all relevant stakeholders to explore a menu of options for channelling SDRs to further support health needs, including vaccinations, and to help enable greener, more robust recoveries in the most affected countries, supporting the poorest and most vulnerable countries in tackling these urgent challenges. G7 countries are actively considering options that we cantake as part of a global effort to magnify the impact of this general allocation for countries most in need, especially in Africa, including through voluntarily channelling SDRs and/or budget loans, in line with national circumstances and legal requirements. This includes scaling up financing to the IMF’s Poverty Reduction and Growth Trust and the IMF’s review of concessional financing and policies to strengthen its capacity to support low income countries. To support our aim to reach a total global ambition of $100 billion, we call for contributions from other countries able to do so, alongside the G7. We task G7 Finance Ministers and Central Bank Governors to urgently consider the detail of this, including by working with the G20 and other stakeholders. 66. We note with grave concern that the world faces an unprecedented humanitarian crisis as the UN reports that over 34 million people are already facing emergency levels of food insecurity and are one step from catastrophe or famine. In this light, GROUPOFNATIONS.COM

we endorse the G7 Famine Prevention and Humanitarian Crises Compact committed to by G7 Foreign and Development Ministers. We reaffirm our commitment to provide $7 billion in humanitarian assistance, take diplomatic action to promote humanitarian access and the protection of civilians, including women and girls, and strengthen anticipatory and early action in partnership with the UN and World Bank Group. We call attention to the rise in poverty, hunger and malnutrition globally, noting the exacerbating role of the COVID-19 pandemic, climate change, economic shocks, biodiversity loss and increased conflict, and agree further action is needed to reverse these trends and strengthen global food systems. We reaffirm our commitment to the Broad Food Security and Nutrition Development Approach made at Elmau in 2015, and note that responsible investments in food security, food systems, and nutrition are essential to support SDG2 and World Health Assembly nutrition targets. We further encourage strong commitments in these areas to be announced at the G20, the UN Food Systems Summit, COP26 and the Tokyo Nutrition for Growth Summit later this year. 67. We recognise the significant infrastructure needs across low and middle income countries, which have been exacerbated by the COVID-19 pandemic. Reflecting our shared values and shared vision, we will aim for a step change in our approach to infrastructure financing, notably on quality infrastructure and investment, to strengthen partnerships with developing countries and help meet their infrastructure needs. Working together and with others, and by building on and going beyond our existing action, we will develop a partnership to build back better for the world with the aim of maximising impact on the ground to meet the needs of our partners, and to ensure our collective effort is greater than the sum of its parts. This partnership will orient development finance tools toward the range of challenges faced by developing countries, including in resilient infrastructure and technologies to address the impacts of climate change;

health systems and security; developing digital solutions; and advancing gender equality and education. A particular priority will be an initiative for clean and green growth to drive a sustainable and green transition in line with the Paris Agreement and Agenda 2030. Underpinning our approach will be the following key principles: • values-driven vision: we believe that infrastructure development, implementation and maintenance carried out in a transparent and financially, environmentally, and socially sustainable manner - will lead to beneficial outcomes for recipient countries and communities. • intensive collaboration: we will each pursue the necessary actions through our own DFIs, and other relevant bodies, while strengthening collaboration to determine how we can increase the scale and scope of our collective offer to developing partner countries. • market-led: we believe current funding and financing approaches are not adequate to address the infrastructure financing gap and are committed to enhancing the development finance tools at our disposal, including by mobilising private sector capital and expertise, through a strengthened and more integrated approach across the public and private sector, to reduce risk, strengthen local capacities, and support and catalyse a significant increase in responsible and marketbased private capital in sectors with anticipated returns, and to strengthen local capacities, in a sustainable manner, in line with the Addis Ababa Action Agenda on Financing for Development. • strong standards: to ensure our approach and values are upheld, and to drive a race to the top, we will make high standards - across environmental, social, financial, labour, governance and transparency - a central plank of our approach, including by building on multilateral agreed standards on quality infrastructure such as the G20 Principles for Quality Infrastructure Investment. This will help to provide citizens of recipient communities with the long-run benefits they expect and deserve. We emphasise the importance

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of transparent, open, economically efficient, fair and competitive standards for lending and procurement, also in line with debt sustainability, and the adherence of international rules and standards for major creditor countries. • enhanced multilateral finance: we recognise that many MDBs and other International Financial Institutions (IFIs) have evolved to embody the highest standards for project planning, implementation, social and environmental safeguards, and analytical capability. We will work with the IFIs to enhance their catalytic impact and increase the mobilisation of capital needed for impactful and sustainable infrastructure investment, and ensure that the pace of project development and disbursement meets the needs of partner countries. • strategic partnerships: we will ground this initiative in strategic and substantial partnerships between countries, to support innovation and technological development, focused on the most pressing needs. We will work together to take forward an agenda based on these principles and work closely with others, including developing country partners, to ensure that it is developed in an open and collaborative way. We will establish a taskforce to develop practical proposals and report back to us in the Autumn. 68. A central focus of our new strategic approach will be supporting sustainable growth in Africa. Building on the conclusions of the Summit on Financing African Economies that was held in Paris on 18 May 2021 and on the needs expressed by our African partners, we are resolved to deepen our current partnership to a new deal with the African continent, with African states, institutions and expertise at its core. In line with these ambitions, our DFIs and multilateral partners intend to invest at least $80 billion into the private sector in Africa over the next five years to support sustainable economic recovery and growth in line with the AAAA. This builds on the 2X Challenge partnership between G7 DFIs launched in 2018 and the target of an additional $15 billion of new funding for this as announced by G7 Foreign and Development Ministers

in May 2021 to help address the disproportionate barriers that women face to access capital, leadership roles, quality employment and affordable care. We welcome the Alliance for entrepreneurship in Africa that was launched on May 18 and look forward to its first meeting by the end of the year, under the auspices of the International Financing Corporation and in full partnership with all public and private partners willing to invest more in Africa’s future and to leverage its growth opportunities. We ask the MDBs and especially the World Bank to mobilise more private financing into Africa by developing and reinforcing the relevant risk sharing instruments for the benefit of African small and medium-sized enterprises (SMEs). We reiterate our support to the G20 Compact with Africa as a key

framework to enhance the business environment in Africa and call on reform orientated partners to join and strengthen this initiative. We invite G7 Foreign and Development ministers to continue to work with developing country partners and DFIs at the second Foreign and Development Ministers meeting. 69. As open societies we are committed to accountability and transparency, and to upholding the promises we have made. In this spirit, we endorse the 2021 Carbis Bay Progress Report from the G7 Accountability Working Group, reporting on G7 commitments to strengthen health systems to advance universal health coverage and global health. We look forward to the next Comprehensive Progress Report from the G7 Accountability working group in 2022. ◆

CONCLUSION In Cornwall we have revitalised our G7 partnership. Our Shared Agenda for Global Action is a statement of our shared vision and ambition as we continue to collaborate this year and under future Presidencies. As we do so we look forward to joining with others to ensure we build back better, in particular at the G20 Summit, COP26, and CBD15 and the UN General Assembly, and reiterate our support for the holding of the Olympic and Paralympic Games Tokyo 2020 in a safe and secure manner as a symbol of global unity in overcoming COVID-19.

review G L O B A L B R I E F I N G R E P O RT R E V I E W COP26

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Securing a brighter future for our children and future generations requires countries to take urgent action at home and abroad to turn the tide on climatechange. It is with ambition, courage and collaboration as we approach thecrucial COP26 summit in the UK that we can seize this moment together, so we can recover cleaner, rebuild greener and restore our planet. PRIME MINISTER OF THE UNITED KINGDOM BORIS JOHNSON

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Introduction

CLIMATE CHANGE IS THE GREATEST RISK FACING US ALL GROUPOFNATIONS.COM

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Around the world storms, floods and wildfires are intensifying. Air pollution sadly affects the health of tens of millions of people and unpredictable weather causes untold damage to homes and livelihoods too. But while the impacts of climate change are devastating, advances in tackling it are leading to cleaner air, creating good jobs, restoring nature and at the same time unleashing economic growth. Despite the opportunities we are not acting fast enough. To avert this crisis, countries need to join forces urgently. In November, the UK, together with our partner Italy, will host an event many believe to be the world’s last best chance to get runaway climate change under control. For nearly three decades the UN has been bringing together almost every country on earth for global climate summits - called COPs - which stands for ‘Conference of the Parties’.

‘In that time climate change has gone from being a fringe issue to a global priority. This year will be the 26th annual summit – giving it the name COP26. With the UK as President, COP26 takes place in Glasgow. In the run up to COP26 the UK is working with every nation to reach agreement on how to tackle climate change. More than 190 world leaders are expected to arrive in Scotland. Together with tens of thousands of negotiators, government representatives, businesses and citizens for twelve days of talks. Not only is it a huge task but it is also not just yet another international summit. Most experts believe COP26 has a particular urgency. To understand why, it’s necessary to look back to another COP. COP21 took place in Paris in 2015. For the first time ever, something momentous happened: every country agreed to work together

to limit global warming to well below 2 degrees and aim for 1.5 degrees, to adapt to the impacts of a changing climate and to make money available to deliver on these aims. The Paris Agreement was born. The commitment to aim for 1.5 degrees is important because every fraction of a degree of warming results in the tragedy of many more lives lost and livelihoods damaged. Under the Paris Agreement, countries committed to bring forward national plans setting out how much they would reduce their emissions - known as Nationally Determined Contributions, or ‘NDCs’. They agreed that every five years they would come back with an updated plan that would reflect their highest possible ambition at that time. The run up to this year’s summit in Glasgow is the moment (delayed by a year due to the pandemic) when countries update their plans for reducing emissions. But, the commitments laid out in Paris did not come close to limiting global warming to 1.5 degrees, and the window for achieving this is closing. The decade out to 2030 will be crucial. So as momentous as Paris was, countries must go much further to keep the hope of holding temperature rises to 1.5 degrees alive. International climate summits are complex. Here in the UK COP26 team we want to make it as easy as possible for you to understand what COP26 is and what the UK team is working to achieve. In this introduction you’ll find the summary of our goals; explanations of the processes, a glossary for technical phrases and perhaps most importantly, ways for you to get involved.

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THE UK’S LEADERSHIP ON CLIMATE

to be proud of when it comes to acting on climate change. We have shown that climate action can go hand-in-hand with economic growth. Between 1990 and 2019, we achieved record clean growth. In that time our economy grew by 78% and our emissions decreased by 44% over this time, the fastest decline in the G7.

•W e have announced the end of the sale of new petrol and diesel cars in the UK by 2030, putting the UK on course to be the fastest G7 country to decarbonise cars and vans •W e will spend at least £3bn of our international climate finance in the next 5 years on nature and nature based solutions •W e are planting trees on 30,000 hectares of land per year by 2025 •W e have announced plans that put farmers at the forefront of reversing environmental decline and tackling climate change •W e will make climate-related disclosures mandatory across the economy by 2025, with most requirements coming in by 2023 •T he low carbon sector and supply chain provides over 460,000 jobs in the UK. Our ambition is for up to 2 million green jobs by 2030.

• We have decarbonised our economy faster than any other country in the G20 since 2000 • We were the first major economy to put into law that we will reach net zero carbon emissions by 2050 • We are the largest producer of offshore wind energy in the world • We will end direct government support for the fossil fuel energy sector overseas • We are doubling our international climate finance to help developing nations with £11.6bn over the next five years up to 2025/2026

As the world looks to recover from the impact of coronavirus on our lives, livelihoods and economies, we have the chance to build back better. Our Ten Point Plan will help deliver a green industrial revolution - by investing in clean energy, transport, nature and innovative technologies - creating hundreds of thousands of jobs in the process. Leading the world in tackling and adapting to climate change is a major economic opportunity for the UK, that will create new skilled jobs across the country as well as export opportunities for our firms.

The UK has a lot

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SECURE GLOBAL NET ZERO AND KEEP 1.5 DEGREES WITHIN REACH The targets announced in Paris would result in warming well above 3 degrees by 2100 compared to pre-industrial levels. If we continue as we are, temperatures will carry on rising, bringing even more catastrophic flooding, bush fires, extreme weather and destruction of species. We have made progress in recent months to bend the temperature curve closer to 2 degrees; but the science shows that much more must be done to keep 1.5 degrees in reach. The world needs to halve emissions over the next decade and reach net zero carbon emissions by the middle of the century if we are to limit global temperature rises to 1.5 degrees. As part of the Paris Agreement, every country agreed to communicate or update their emissions reduction targets - their Nationally Determined Contribution (NDC) - every five years to reflect their highest possible ambition and a progression over

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URGENTLY ADAPT TO PROTECT COMMUNITIES AND NATURAL HABITATS time. These targets set out how far countries plan to reduce emissions across their entire economy and/or in specific sectors. 2020 marked the first of these five year cycles. This means that countries are expected to update their 2030 targets before we meet in Glasgow. We are calling on all countries to update them so that they are in line with holding temperature rise to 1.5 degrees. It is especially important that developed countries and the largest emitters take the lead. While targets are important, they must translate into action, fast. Which is why developed countries must rapidly phase out coal power, and all countries should commit to not opening or financing any new coal-fired power stations across the world. At the same time, we must work together to provide developing countries with better support to deliver clean energy to their citizens. Forests play a vital role in removing

carbon from the air. Protecting them is critical if we are going to meet our climate goals, and right now they are still being lost at the rate of a football pitch every few seconds. We are encouraging countries to work together to reform the global trade in agricultural commodities (like beef, soy and palm oil) so that sustainable production is rewarded, helping farmers to make a better living while forests are protected. And finally, we need to clean up our air and reduce carbon emissions by switching to driving zero emission cars, vans and trucks. The UK will end the sale of new petrol and diesel cars by 2030. Countries with major car markets should follow our lead. If we send a strong signal to the industry, investment will shift more quickly to new, clean technologies, and all countries will be able to enjoy the benefits sooner.

THE WORLD IS CURRENTLY NOT ON TRACK TO LIMIT GLOBAL WARMING TO 1.5 DEGREES.

Even as we work tirelessly to reduce emissions, further change is inevitable. We know that the most vulnerable are at the greatest risk from climate change, and that they have done the least to cause it. Action to address this and build resilience is needed now, before more people lose their lives or livelihoods. The international community must unite and support people who are most vulnerable to the impacts of the changing climate. We need more action to avert, minimise and address the loss and damage that is already occurring from climate change. Plans and more finance need to be put in place to improve early warning systems, flood defences, and build resilient infrastructure and agriculture to avoid further loss of life, livelihoods and natural habitats. Protecting and restoring habitats is a powerful way to boost resilience to the impacts of the changing climate. They help to build natural storm and flood defences, whilst flourishing ecosystems contribute to sustainable farming and support billions of lives worldwide. All countries should produce an ‘Adaptation Communication’, which is a summary of what they are doing and planning to do to adapt to the impacts of the changing climate, challenges they face and where they need help. These plans will help us learn together and share best practice between countries. The UK has co-developed the Adaptation Action Coalition, in partnership with Egypt, Bangladesh, Malawi, the Netherlands, Saint Lucia and the United Nations Development Programme. The coalition is bringing countries together to find solutions to some of the most challenging impacts of climate change, and we are inviting all countries to join us. 93

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MOBILISE FINANCE

Countries need to manage the increasing impacts of climate change on their citizens’ lives and they need the funding to do it. The scale and speed of the changes we need to make will require all forms of finance: public finance for the development of infrastructure we need to transition to a greener and more climate-resilient economy; private finance to fund technology and innovation, and to help turn the billions of public money into trillions of total climate investment. Developing countries in particular need support. Developed countries must deliver on their promise to raise at least $100 billion every year in climate finance to support developing countries. The OECD estimates that $78.9bn of climate finance was mobilised in 2018. This must include building new markets for adaptation and mitigation and improving the quantity, quality and access to finance to support communities around the world to take action on the changing climate. The UK is doubling our International Climate Finance commitment to at least

£11.6 billion between 2021 and 2025. We want as many countries as possible to follow our lead and increase their commitment through to 2025. Ahead of COP26, we must work to unleash the trillions in private finance that are needed to power us towards net zero by the middle of the century. To do this, every financial decision needs to take climate into account. This includes all private investment decisions, but also all spending decisions that countries and international financial institutions are making as they roll out stimulus packages to rebuild economies from the pandemic. Companies need to be transparent about the risks and opportunities that climate change, and the shift to a net zero economy pose to their business. Central banks and regulators need to make sure that our financial systems can withstand the impacts of climate change and support the transition to net zero. It also means banks, insurers, investors and other financial firms committing to ensuring their investments and lending is aligned with net zero.

TO ACHIEVE OUR CLIMATE GOALS, EVERY COMPANY, EVERY FINANCIAL FIRM, EVERY BANK, INSURER AND INVESTOR WILL NEED TO CHANGE. GROUPOFNATIONS.COM

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WORK TOGETHER TO DELIVER

Doing so will help deliver on our other three goals and show everyone that the world is moving to a resilient, net zero economy. A focus for the negotiations is finalising the rules needed to implement the Paris Agreement, called the ‘Paris Rulebook’. We must find solutions so that carbon markets can enable greater ambition in mitigation and adaptation actions. We must resolve the issues a ound transparent reporting to build confidence in the system and support all countries to meet their commitments. And we must broker an agreement that drives ambition from governments over the coming years to keep 1.5 degrees alive. The UN negotiations are consensusbased, and reaching agreement will depend on leaving no issue behind and making sure everyone’s voice is heard. Which is why we are working hard to remove barriers that prevent everyone

from participating in COP26 and championing the voices of communities vulnerable to climate change, including indigenous peoples and communities grappling with the transition from high carbon activities. However, finalising the Paris Rulebook on its own will not deliver net zero. This decade is decisive and we need to turn ambition into action. Governments, business and civil society (sometimes called ‘non-state actors’) need to work together to transform the ways we power our homes and businesses, grow our food, develop infrastructure and move ourselves and goods around. Which is why we are working hand in glove with the UN H gh Level Champions on Climate Action to catalyse transformation in the global economy. By committing to work together in this way we are laying the foundations for faster progress in the decade to come.

THIS DECADE IS DECISIVE AND WE NEED TOTURN AMBITION INTO ACTION 95

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G L O B A L B R I E F I N G R E P O RT R E V I E W ESG B R A N D E D S T O RY

Accounting for the “S” in ESG Adapted by Gigi Dawe, LL.M

(This article was adapted from The Rise of the Social Pillar: An Introduction to the “S” in ESG published by CPA Canada.)

Environmental, social and governance (ESG) issues are attracting increased attention globally, in private, public and not-for-profit sectors. Investors’ view ESG as a material factor when assessing the long-term value of organizations, and stakeholders’ attention to ESG matters has intensified. Consequently, boards and managements are incorporating ESG practices into business decisions and recently, particular attention is being placed on the “social” pillar of ESG. The universe of social factors The COVID-19 pandemic has further widened social inequities and injustices around the world. The scope of social factors is broad, and includes human rights, diversity, equity and inclusion (DEI), relations with Indigenous GROUPOFNATIONS.COM

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peoples and communities, public health and safety, and privacy and freedoms. One important area, Indigenous peoples and communities, is receiving much justified attention by organizations and governments globally. The United Nations declaration on the Rights of Indigenous Peoples (UNDRIP) emphasize the rights of Indigenous peoples to live in dignity, to maintain and strengthen their own institutions, cultures, and traditions and to pursue their self-determined development in keeping with their own needs and aspirations. Indigenous rights and engagement also have unique importance in the Canadian context. In 2015, to advance the process of Canadian reconciliation,

the Truth and Reconciliation Commission of Canada made 94 calls to action, including Recommendation 92, Business and Reconciliation. “We call upon the corporate sector in Canada to adopt the United Nations Declaration on the Rights of Indigenous Peoples as a reconciliation framework and to apply its principles, norms, and standards to corporate policy and core operational activities involving Indigenous peoples and their lands and resources”. There is broad recognition of the need for demonstrable corporate action with respect to many social issues and failure to address these matters can impact the organization’s financial performance, market value and public opinion. As interest in social factors continues to grow and

market data, and are often accompanied by robust regulation, social issues are less tangible, with less mature data to show how they can impact a company’s performance. According to a 2020 global sustainability reporting survey by KPMG organizations often reference several available voluntary frameworks and standards when disclosing social factors. Organization’s typically chose to use one or a combination of disclosure frameworks. In November 2021, however, the International Financial Reporting Standards Foundation (IFRS) announced the creation of a new standard-setting board—the International Sustainability Standards Board (ISSB) and indicated the release of a draft set of global sustainability standards in 2022. The IFRS Foundation will consolidate the Climate Disclosure Standards Board (CDSB—an initiative of Carbon Disclosure Project (CDP)) and the Value Reporting Foundation (VRF— which houses the Integrated Reporting Framework and the Sustainability Accounting Standards Board (SASB) Standards).

evolve, businesses are presented an opportunity to increase their competitiveness by embedding the management of social issues into their strategy and business processes. Disclosure of Social Factors As stakeholder expectations continue to evolve, the pressure on organizations to report on their social performance grows and reporting frameworks are evolving

to meet those expectations. Stakeholders are demanding transparency and accountability beyond traditional financial reporting. ‘S’ has now moved to front-of-mind for investors and is high on the agenda for company stakeholders and society. The social element of ESG issues can be difficult for investors to assess. Unlike environmental and governance issues which are more easily defined, have an established track record of

There is broad recognition of the need for demonstrable corporate action with respect to many social issues and failure to address these matters can impact the organization’s financial performance, market value and public opinion.

Opportunities for Business As the focus on social matters sharpens, organizations need to evolve their underlying business and reporting practices to meet the growing demand for action and transparency. Organizations can make meaningful advancements with respect to key social matters both within the organization, as well as in the broader communities in which they operate. The United Nations (UN) provide principles, goals, and declarations, which address social matters. One of those is the United Nations’ Sustainable Development Goals (SDGs). The 17 SDGs and specific targets within them are aspirational goals to be achieved by 2030. The United Nations Global Compact (UNGC) provides resources and tools to implement and advance the SDGs. Approached as principles, The 10 Principals of the UN Global Compact can be incorporated into an organization’s strategy, policies and procedures to establish a culture of → 109

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→ integrity; uphold basic responsibilities in the areas of human rights, labour, environment and anti-corruption; and set the stage for long-term success. Organizations that engage in the SDGs to embed relevant goals into their strategy and operations, set ambitious targets and measure and manage impact and contribution in a transparent way. To develop sound social practices, organizations need to address the following key questions: • What social matters are most important to the organization, investors, and broader stakeholder groups (e.g., local communities in which they operate, global supply chains)? •D oes the organization understand the social risks, uncertainties and opportunities in their market, and can it adjust its business model to address them? •H ow does the organization’s business model contribute to positive or negative outcomes for their customers and the communities in which they operate? •H ow does performance on social issues impact an organization’s financial results and access to capital? •W here does the organization stand on key social matters and what are its goals for achieving important social outcomes?

Role of Accountants Finance professionals and in particular professional accountants, have a critical role to play in addressing the above issues through socially focused business practices and effective measurement, analysis, and reporting of social matters. Professional accountants can influence and inform decision-making, by guiding organizations in the management of social matters. Because they play significant roles in governance, risk management and control, business analysis and decision support, they can help organizations address the following areas: • i dentifying which social matters are material to the organization and what social information/ data to report on, including determining materiality of social matters for regulatory purposes and developing metrics to measure impact and performance •a ligning corporate activities with social goals and benchmarking disclosures and key performance indicators against domestic and foreign industry peers • s trategic planning and budgeting and external reporting for the social initiatives •e valuating performance on social issues throughout the supply chain •m anaging competing investor and other stakeholder demands for voluntary disclosure, including determining under which of the

various voluntary disclosure frameworks to report •e stablishing appropriate processes, policies, data collection systems, and internal controls to capture and report meaningful, complete, accurate, and timely social information and, most importantly, measuring the impact of these social factors. The social pillar of ESG is complex with a wide range of multidimensional issues. As the focus on ESG continues to evolve, the accounting profession will play a pivotal role in helping organizations integrate social and environmental considerations intotheir strategy, culture, risk management and business processes. This will include exploration of new and innovative performance measurement and impact assessment tools and approaches to help inform decision-making, which will contribute to the long-term success and sustainability of organizations, and better outcomes for society. ◆

About the author Gigi Dawe, LL.M, is Director of Corporate Oversight and Governance. Chartered Professional Accountants of Canada

1. United Nations Declaration on the Rights of Indigenous Peoples | United Nations For Indigenous Peoples 2. Truth and Reconciliation Commission of Canada. (2015). Truth and Reconciliation Commission of Canada: Calls to action. Calls_to_Action_English2.pdf (exactdn.com) 3. Neilan, P.R. & Fitzpatrick, G. (2020, June 28). Time to Rethink the S in ESG. Harvard Law School Forum on Corporate Governance. 4. KPMG. (2020, December). The time has come: The KPMG survey of sustainability reporting 2020. [Survey]. The Time Has Come: The KPMG Survey of Sustainability Reporting 2020 5. IFRS - IFRS Foundation announces International Sustainability Standards Board, consolidation with CDSB and VRF, and publication of prototype disclosure requirements 6. THE 17 GOALS | Sustainable Development (un.org) 7. How Your Company Can Advance Each of the SDGs | UN Global Compact 8. The Ten Principles | UN Global Compact GROUPOFNATIONS.COM

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Helping businesses navigate climate change

Chartered Professional Accountants (CPAs) can help your organization make more informed decisions — and increase resilience — in the face of climate change. How? By identifying climate-related risks and opportunities. By estimating financial impacts and performing scenario analyses. By advising on long-term business performance. Need a strategic response to climate change? Enlist a CPA. FIND OUT MORE AT

cpacanada.ca/ClimateChange 17-0683

G L O B A L B R I E F I N G R E P O RT R E V I E W EROSION CONROL B R A N D E D S T O RY

Stop Erosion, Save Water and Recycle Plastic while Growing Trees with One Solution Dirt Locker ® Hillside Terracing and Erosion Control By Krista Stewart

With beads of sweat running down his face under the hot Southern California sun, Mark Trebilcock struggled with the hard-packed clay soil and uneven slope on his hillside. No matter what he did to grow the fruit trees and plants he wanted, the only thing growing in his yard were weeds and his aggravation. The soil erosion and inability to keep water at the roots were the main culprits. He had tried multiple store-bought products to mitigate the erosion and keep the plants hydrated, but nothing worked until he created a prototype in his garage that he began to test

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out on his yard. His prototype was the first version of the Dirt Locker®, a hillside terracing device that saved water and stopped the persistent erosion. The Dirt Locker® can also reduce agricultural waste, plant mortality, labor for terracing or maintenance, and consumes waste plastics through recycling. When traveling in East Africa Mark saw the need for an agricultural product to help people grow their food in inhospitable terrain. During his trip through Rwanda and Uganda, Mark began to seriously consider the possibility of developing an

international network for the Dirt Locker®, knowing that it could help mitigate problems like plastic pollution, land availability, and unsustainable agriculture. He learned that in Rwandan culture, it is customary for families to subdivide the property to the children, generation after generation, inevitably leading to less land to a farm which creates a food problem when they are not able to grow enough to feed their families. In addition to the overpopulated land, non-farmable slopes, and erosion deteriorating the little remaining land, Rwanda has become dependent

on outside sources for food instead. He saw an even more dire situation when he went to Haiti as a volunteer of Love A Child ( www.loveachild.com ). This organization has provided help to Haitians in job creation, healthcare, orphanage services, and teaching them agricultural methods. Sadly, deforestation appeared to be the root of many of the island’s issues, which have reduced rainforests to deserts, preventing life on land. Consequently, the soil runoff has also negatively impacted aquatic life. Early in the process development phase, Mark sent several DirtLocker kits to Haiti. There is a hope that they may be part of the revegetation solution for this impoverished nation once deployed. With his own experience and the comments and feedback from expert landscapers, bolstered his confidence to move forward. It seemed like a no-brainer that a product that converts non-arable land into a productive growing environment using scrap plastic had a commercial market. Over the years, Mark continued to tinker and improve the design. He had an opportunity to work on the

product full time. He knew this was his opportunity to commercialize the Dirt Locker®. Mark created a new configuration of the Dirt Lockers® where the pieces could be connected into a network that could be folded flat for ease of transportation and storage. However, the folded units could be pulled up onto a hillside and expanded out like an accordion. The expanded network is a collection of cells, where each cell is a flat terraced growing area used for growing plants or walking/ maintenance access on the hillside once backfilled with soil. The newly formed matrix of terraced cells created by the expanded Dirt Locker® system significantly reduces erosion by retaining water on the hillside for the plants while also maintaining the topsoil. This network of basins acts like a gravity-fed water filtration system that holds the soil while allowing excess water to cascade over to the next cell. The arrangement solves multiple environmental issues such as soil erosion, water use, rainfall/ agricultural runoff, the high mortality rate for plants on hillsides, and pollution since they are 100% recycled plastic. Finally, the connecting hardware was eliminated, further simplifying the assembly/installation process. One point of Raised in Miami, Florida as a teenager, Mark had a passion for gardening and growing food primarily due to his mother’s love for the same and her interest in unique fruit trees. His interest led him to start a small landscaping business although he had to transport his equipment by bicycle,

Both the material selection and Dirt Locker® design benefitted from the concepts of continuous improvement engineering learned from the telecom and medical device industries.

sometimes miles away. The logistical obstacles he overcame as a young entrepreneur motivated him to conceive and implement product/ process improvements. It seemed natural to pursue a degree in Industrial Engineering and Management Systems from the University of Central Florida. Mark maintained his love of landscaping throughout the years, always trying to find solutions to gardening problems. He eventually left the flatlands of Florida and moved to California, where he continued pursuing his passion for gardening and his career in manufacturing excellence for medical devices. Mark’s passion for horticulture and landscaping hit a wall when attempting to grow on the arid, clay slopes of Southern California. It became clear that many people, homeowner associations, farmers, and gardening enthusiasts struggled to produce on slopes. The creative problem-solving methods Mark developed that generated production efficiencies during his years in the telecom, medical device and biopharma industries were employed when Mark was learning how to grow in the mountainous, water starved, hardpacked rocky clay soil in Southern California. The current Dirt Locker® was born after several iterations on that original prototype, and years of evaluating materials, testing, trial, and error. After his experiences internationally, it became vitally important to Mark that the Dirt Locker® was developed so that it requires no special hardware, tools, or skills to assemble and/or install. The product was developed so that the pieces can connect manually with no additional proprietary hardware. Additionally, regardless of its configuration, there is only one SKU in each assembly. Whether the product is assembled into a network of hundreds of pieces, or a ring for an individual plant, only one SKU is used. The only hardware used with the Dirt Locker are commercially available or easily fabricated rebar J-hooks for securing the network to the hillside during installation. The only tools required for installation are common to any landscape project. → 113

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→ In addition to the simple assembly process, the Dirt Locker® is environmentally beneficial and safe to work around. The Dirt Locker® is ecologically friendly in several ways, but at its core is constructed from 100% recycled, post-consumer waste, high-density polyethylene (HDPE). The Dirt Locker® is also food-friendly because HDPE is one of the few plastics approved by the FDA for food storage and preparation. As an example of the positive environmental impact, each Dirt Locker® saves on average the equivalent of 13 milk jugs from the landfill or oceans. In addition, the Dirt Locker® helps recover nearly 100,000 milk jugs monthly. The recycled plastic used in the fabrication of the Dirt Locker only adds to the environmental benefits while in use. The overall efficiencies to the end-user are that the product does not require any special training, tools, or skills to use. Those efficiencies can help the user convert otherwise non-arable sloped terrain into terraced and agriculturally productive hillsides. In addition, the Dirt Locker® does not need the same labor intensity, infrastructure, or cost to install than traditional terracing methods require. Having developed a product easy to manufacture and assemble, Mark was ready to launch the Dirt Locker® commercially in 2018. The product’s demand has grown exponentially, even though marketing is limited to YouTube videos, the www.dirtlocker.com website, Facebook groups, and word of mouth. Our customers have consistently bestowed generous compliments on the product and sales team. In addition, customers routinely comment on the ability of the Dirt Locker® to support the growth of plants in areas where they had previously been unsuccessful. Here are a few of the comments: Bob B. Thousand Oaks CA: The product saved me 70% on my project over traditional solutions and looks better and will save water and plants. Adam MD. North Carolina: Everyone in the neighborhood thinks the lockers are brilliant. Thanks for all of your help! GROUPOFNATIONS.COM

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Srinivas, Georgia: Thank you so much for the detailed response, the wonderful invention, and the service. Gillian, Canada: I LOVE this product. Deborah, Puerto Rico: We will be planting more coffee plants inside of the next set of some Dirt Lockers®. Dan G. Fallbrook CA: I came across your product, and it is exactly what I need! As demand for Dirt Lockers® grew throughout the United States and internationally, the machine used to manufacture the Dirt Locker® in Mark’s garage could not keep up. So Mark expanded his manufacturing capacity by reaching out to his plastics supplier. They had the experience and manufacturing capacity to keep up with demand. They also had the experience with the plastic so there would be no learning curve. Outsourcing manufacturing of the Dirt Locker® proved there are new prospects for the product, including manufacturing the product closer to the point of use, thus reducing carbon footprint through transportation efficiencies. The Dirt Locker® went from concept to reality first with a scaleddown version using a 3D printer with the help of an online CAD program that allowed the interlocking terrace concept validation on a small scale. The scale models demonstrated the effectiveness of the Dirt Locker®, enhancing Mark’s conviction to create a fixture used with hand tools to fabricate the first functional full-scale units. The assembled “handmade” units made networks at his house in California and at his mother’s residence in Florida. These initial installations proved that the product was beneficial and worked as expected. The first large Dirt Locker® project made from 300 Dirt Lockers® was pulled onto a hillside and backfilled with soil in one day. Mark enlisted the help of a local landscape company

and entrepreneur and filmmaker Jon Schneider who created a multiple video of the entire installation and a local landscape company. Jon has since created a library of YouTube videos used for demonstrating the capabilities of the system and as instructional aids for the Do-It-Yourself installer. The five workers quickly assembled most of the 300 units in about 45 minutes after only 15 minutes of instruction. The completed web of DirtLockers initially folded neatly on the sidewalk at the bottom of the hill was quickly expanded up the slope until it covered the face of the hillside. Next, the crew began attaching the final pieces where

The Dirt Locker® went from concept to reality first with a scaled-down version using a 3D printer with the help of an online CAD program that allowed the interlocking terrace concept validation on a small scale.

the contour of the hillside warranted, and before lunch, the network of cells was getting backfilled with improved soil. With the cells filled, the individual terraces could now be safely traversed by workers, facilitating the planting process. The benefits of hillside access using the Dirt Lockers is both demonstrated and succinctly stated in the testimonial by customer Stormy C. on the Dirt Locker® YouTube channel. “Something that the retention wall doesn’t have is steps with an option to walk up and have to access the plants. You are still going to have weeds and overgrowth that need to be maintained.” Stormy C. CA

Once planted, the Dirt Locker® terraced hillside flourished. Approximately six months after planting the hillside, Mark’s neighbors, recalling the bleached lifeless slope, now commented on how much they appreciated its beauty and the enjoyment it brought to their daily walks. During the summer, when temperatures are frequently triple digits, the containment properties of the Dirt Locker® allowed water to penetrate deeper into the hillside, which helped the soil stay hydrated longer. The enhanced soil hydration encouraged the plants to flourish, improving the strength and stability of the slope with time, this was stated

most poignantly by customer Karl B. of New York below. “A standard retaining wall is the strongest it will ever be on the first day that it is completed, whereas the Dirt Locker® system gets stronger over time as the plants root into the dirt which is what makes it strong. It’s a complete eco-system of plantings nd the Dirt Locker system that work together to hold back the hill.” Karl B., NY Mark worked tirelessly in all Dirt Locker’s® design, testing, installation, and manufacturing phases until he was ready to share it with the world. His brother Norman, the owner of Trebilcock Consulting Solutions (TCS), a civil engineering firm in Naples, Florida (www.trebilcock.biz ), had some of his engineers help Mark with drawings and product evaluation. While developing the Dirt Locker® using different manufacturing methods, it was always evaluated for manufacturing in areas with the same availability to technology or skilled workers. For instance, in some geographies, complex machinery may not be realistic. However, a fixture and hand router are possible, especially when the pay rates permit labor-intensive industries allowing the Dirt Locker® to move manufacturing to new regions where it makes economic sense. We have only begun to realize all the benefits of this disruptive technology yet easily applied product. Our objective is to work with professionals globally to find other uses, benefits, and potential enhancements to the Dirt Locker®. ◆ 115

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A Maldivian Dream

Hidden in the midst of the Indian Ocean and located just off the south coast of Sri Lanka, the Maldives is a lush and untouched paradise only relatively recently discovered by the tourism industry. Yet over recent years, it has already bloomed into what has become one of the ultimate escapes for all those seeking the ultimate holiday. The pristine beaches of the Maldives, the powdersoft sands and the tropical climate establish the Maldives as a godsend for anyone looking to head south to seek some respite from the winter, and for the rest, it still remains a once-in-a-lifetime experience year-round. The humble beginnings of Sun Siyam Resort’s awe-inspiring portfolio of chic and stylish resorts, including four-star deluxe and five-star properties, date back to more than twenty years ago when a small travel agency was founded in 1990 by current managing director Mr. Ahmed Siyam Mohamed, planting the seed of what would later GROUPOFNATIONS.COM

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become one of the most forwardthinking, fastest-growing and successful companies in the history of Maldives. Armed with little more than a vision, the vivacity of his entrepreneurial spirit, youth and pure passion, Mr. Ahmed Siyam Mohamed has created and transformed Sun Siyam Resorts into one of the largest and most successful resort groups operating in the Maldives today. Boasting five properties within the archipelago of Maldives and another situated in Pasikudah, Sri Lanka, the Sun Siyam Group currently offers an extraordinary range of accommodations and experiences which cater to all travellers. SUN SIYAM VILU REEF Nestled deep in the heart of Dhaalu atoll and covering an area of an astonishingly tiny 6.63 hectares, Vilu Reef is truly a cozy and private experience like no other, and is only a short 35-minute seaplane ride away

(during the daytime) with domestic options available. This multiple awardwinning resort is covered in dense flora that provides shade, privacy, and soft beaches that open to grand vistas of turquoise-blue waters. Especially crafted for those looking for the ultimate intimate holiday, Vilu Reef is one of the most popular choices for young couples and families looking for a quiet getaway. The 103 beautiful rooms on offer cover 9 different types of accommodation. Inspired by Maldivian culture and the surrounding environment, all the spacious, cool rooms come with deckchairs attached outside so that you can soak up the sun from the comfort of your room, and if you particularly don’t feel like going out, the in-villa dining services are just a phone call away. The awardwinning water villas come with a gorgeous view of the Indian Ocean, while each jungle-wrapped beachfront room opens directly onto the

immaculate beach that envelopes the island via its own private path. Whether you decide to snorkel the lively house reef or kitesurf in the crystal clear lagoon that hugs the island, this romantic retreat is sure to leave you breathless. If you are feeling extra adventurous, don’t hesitate to contact any one of the well trained staff at the on-site dive center to schedule a trip to one of many exciting dive spots nearby. Awarded Tripadvisor’s Certificate of Excellence for 3 executive years, this jewel island marks the beginning of Sun Siyam Resorts and showcases the contemporary Maldivian resort experience par excellence. SUN SIYAM OLHUVELI Step off your flight, into a speedboat, and be whisked away to this serene haven in a mere 45 minutes. Situated in the calm waters of the South Male Atoll, Olhuveli is spread over two islands, with one more adult-only

island slated to open in the near future. Home to one of the most vibrant house reefs in the Maldives, world-class watersports and an iconic shallow water shipwreck just a few minutes away, Olhuveli is nothing short of a dream for watersports enthusiasts and professionals alike. Ranked on oyster.com as one of the best all-inclusive resorts in the world, the exceptional all-inclusive package includes use of non-motorized water sports, various drinks, and other selected services, freeing all guests to roam its tropical jungles and frolic among the palms or wash their troubles away at our remarkable spa. For the gastronomically inclined, a dizzying variety of cuisine awaits you at Sun Siyam Olhuveli courtesy of the 11 bars and restaurants scattered around this tropical refuge, including a buffet restaurant and 3 top notch restaurants that serve exceptional a la carte menus, guaranteeing a delightful dining experience that is sure to satiate

and please any connoisseur’s taste buds. SUN SIYAM IRU VELI The five-star island retreat of Iru Veli lies in the Dhaalu Atoll, undoubtedly one of the most naturally beautiful atolls in the Maldives. Just a 35-minute picturesque seaplane ride away from Malé Airport, Iru Veli, with its thatched bungalows, massive beaches, and very own lagoon, will surely fulfill your wanderlust. Indulge yourself at Iru Veli where all accommodation comes with a private pool attached, many with magnificent lagoon views, while others perch over the calm jade- green waters of the Indian Ocean, where dolphins, bright-colored coral, and tropical fish abound. For the adventurous souls, the SSI-certified dive school, fishing lessons from local fishermen, and exceptional watersports services assure them of their adrenaline rush. → 117

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a marvellous range of drinks and international cuisine, including buffet options with live cooking stations as well as options to enjoy a private dinner on the beach.

→ For pleasure seekers, the gastronomic tasting sessions and pool parties promise great delights, and for those seeking to unwind, the beautiful over-water spa pavilion, where one can restore their body and mind via a melange of rejuvenating spa treatments, awaits. The 125 boutique suites scattered across the island and over the lagoon all feature luxurious interiors. The honey and cream hued interiors are complemented by bright splashes of pink, orange and blue, with some of the rooms featuring outdoor rainfall showers, hanging chairs, roll-top bathtubs and terraces that lead directly into the warm, inviting waters of the lagoon or onto the breathtaking beaches that overlook unbroken horizons. SUN SIYAM IRU FUSHI Sun Siyam Iru Fushi is a 52-acre resort set in the clear waters of Noonu Atoll. There are 151 beach villas and 70 over-water villas here, where contemporary architecture meets traditional rustic thatched roofs and modern creature comforts blend seamlessly with the surrounding nature. GROUPOFNATIONS.COM

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Iru Fushi features a noteworthy house reef and a Nemo garden where guests can enjoy snorkeling with the complimentary snorkeling equipment provided. However, if you genuinely want to experience a singularly unique moment like no other, feel free to contact one of the helpful on-site SSI certified dive center staff. Sun Siyam Iru Fushi is just 5 mi from the Minaavaru dive site, and the famed Inguraidhoo dive site is only 6.2 mi away. The luxurious and elegant villas come with a private terrace, a beach cabana, flat-screens, complimentary toiletries, slippers, and an outdoor rain-shower facility. Free WiFi is available in all the guest rooms and public areas. Guests can enjoy garden views while working out at the 24/7 fitness center. Those who prefer getting their exercise outside might prefer either one of the 2 outdoor swimming pools, and if that’s not enough, the finest water sports experiences, including sailing, windsurfing, flyboarding, and scuba diving, are just a phone call away. This sanctuary is proudly home to a multiple award-winning spa and is simply 45 minutes away by seaplane. 14 food and beverage outlets offer

SIYAM WORLD The pièce de résistance in Sun Siyam Resort’s portfolio, Siyam World is the latest creation of the visionary Maldivian entrepreneur, Mr. Ahmed Siyam Mohamed. Hosting Asia’s largest floating waterpark and many other ‘never-seen-before’ experiences, Siyam World unquestionably marks a milestone in the history of Maldivian as well as international tourism. This Sun Siyam Resorts’ crowning jewel offers a spectacular range of accommodation options, from one-to six-bedroom villas to The Beach House Collection, a residence with its own butler, courtyard, and exclusive options for inhabiting guests. The stunning assortment of accommodation options, ranging from 89 to 3,000 square metres of exquisitely designed living spaces, offers the very best of the Maldives to any and all travellers. Siyam World’s revolutionary WOW! 24-hour Premium All Inclusive plan, which is unprecedented in the Maldives, includes water sports access, dine-around options at any of the 12 restaurants, complimentary bottles of wine delivered to your door daily, and so much more. Book a dive to one of 33 incredible dive spots sprinkled around this island, then sink into blissful reverie at the finest spa in the Maldives, where a curated fusion of Eastern and Western practices from yoga and meditation to Ayurveda, Naturopathy, and Chinese acupuncture are administered by exceptional practitioners handpicked from various parts of the world. Siyam World is spread over 54 acres of abundant vegetation, making it one of the largest resorts in the Maldives. Whether you prefer to meander underneath the soft shade of tropical palms and virginal gardens, mingle with other like-minded globetrotters, or choose to revel in the comfort of your room, rest assured that the bewitching memories made here will be carried fondly for a lifetime. ◆

Heartfelt hospitality Extraordinary experiences Whether you’re seeking quality time with loved ones, or simply craving that feeling of the sand beneath your feet, our team are waiting to welcome you to our island homes. With five luxury resorts in Maldives and a beautiful beach retreat on the east coast of Sri Lanka, we’ll make sure that your dream vacation is well worth the wait. sunsiyam.com

Sun Siyam Iru Fushi Maldives Sun Siyam Olhuveli Maldives Sun Siyam Vilu Reef Maldives Sun Siyam Iru Veli Maldives Sun Siyam Pasikudah Sri Lanka Siyam World, Maldives

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How the Maldives Persevered: Natural Blessing and Industry Determination

The Maldives is unlike any other destination. Scattered like pearls across the crystalline waters of the Indian ocean, the islands of Maldives capture the imagination of travelers across the entire world. The Maldives consists of over a thousand islands dispersed over a length of over 870 kilometers. The islands come in all forms, shapes, sizes, with a uniqueness attached to each island. The scattered islands ensure that each island is naturally social-distanced from each other, and thus the Maldives provide unparalleled safety in these unprecedented times. One of the reasons why the Maldives is gaining such traction across the globe is a result of the uniquelyMaldivian “one-island-one-resort” concept. Unlike many other destinations, resorts in the Maldives are nestled in GROUPOFNATIONS.COM

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their own private islands. In other words, the entire island is the resort. Each resort functions unders strict and stringent safety measures, and the facilities ensure that every single traveler arriving at the resort presents a negative COVID-19 test, adding a layer of protection. In an age of constant distractions and stimuli, the islands of Maldives is a safe haven of tranquility, safety, and peace. Safe Haven Amidst The Pandemic In 2020, the world witnessed full border closures and travel restrictions. The Maldives, like many other destinations, made the difficult decision to close the borders for international travelers to contain the spread of COVID-19 and prioritize the health, safety, and wellbeing of the local population. With stringent safety measures and

immense preparation, the Maldives also became one of the first destinations to re-open the borders for international travelers on 15th July 2020. It is the unique ‘one-island-one-resortconcept, the safety provided by the naturally social-distanced islands of Maldives, and the stringent safety measures in place, that allowed the Maldives to re-open borders for international travelers. The decision was possible as a result of the immense dedication and sacrifice undertaken by the tourism industry, the health sector, and beyond. As a small island nation heavily dependent on tourism, it was not a matter of choice whether the borders opened or not, it was a matter of necessity. The world soon started to recognize the Maldives as a safe haven. A space for travelers to heal, reconnect with the natural world, and with themselves. The World Travel and Tourism Council (WTTC) granted the Maldives ‘Safe Travels Stamp’ in recognition of the efforts to implement enhanced health and safety measures, in line with the WTTC global safe travels protocols. Furthermore, Velana International Airport received the ACI Airport Health Accreditation for consistent measures in line with ACI’s standards in ‘the new normal’. In 2020, Maldives also received the ‘World’s Leading Destination’ award at the Grand Final of the World Travel Awards 2020. It was the first time the Maldives won the award in the history of the island nation. Visit Maldives, alongside industry stakeholders and partners, continued working tirelessly to assure tourists that the Maldives was a safe haven, →

The new genius is a collaborative genius

At Northwestern University’s Roberta Buffett Institute for Global Affairs, we believe that relationships among individuals and institutions—globally and locally—are what generate new knowledge that sparks solutions to global challenges. Learn more at buffett.northwestern.edu.

G L O B A L B R I E F I N G R E P O RT R E V I E W MALDIVES

One of the reasons why the Maldives is gaining such traction across the globe is a result of the uniquely-Maldivian “one-islandone-resort” concept. Unlike many other destinations, resorts in the Maldives are nestled in their own private islands. → and even marketed to closed destinations to keep travelers dreaming about the destination. The awards, accolades, and recognition is truly a testament to the strength, will, and determination of the Maldivian people.

Journey to the Maldives The Maldives also maintained a fine balance between safety and comfort. For travelers, embarking on their journey to the Maldives is an easy endeavour. All travellers arriving in Maldives are granted a free 30-day on-arrival visa with a confirmed booking for a stay at any registered tourist facility. There is no mandatory quarantine on arrival. Furthermore, travellers are required to fill an online health declaration form within 24 hours prior to their departure, as well as have a negative PCR test result, conducted 96 hours GROUPOFNATIONS.COM

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prior to their departure. The regulation applies to all tourists including those who have received the prescribed dose(s) of the COVID-19 vaccine. For a complete and up-to-date requirement for entry, visit imuga. immigration.gov.mv/ethd. The Maldives have also recently launched a campaign in collaboration with the Ministry of Tourism under the name “I’m Vaccinated!”. The ultimate target of the campaign is to make Maldives the destination with the first fully vaccinated tourism sector in the world. As of 22nd September 2021, 93% of resort employees are fully vaccinated. The Way Forward During the pandemic the Maldives found strength in each other in the industry, and worked together as partners and discussed ways on moving

forward. The industry understood intimately that we must all be wellequipped and prepared for crises and uncertainties. The looming climate threat and the effects of environmental degradation are realities that we are confronting, and will continue to confront. Travelers visit the Maldives for the jaw-dropping beauty of our natural environment. This same environment and ecosystems are also the lifeline of the Maldivian people. It is in our best interest to safeguard the land on which we live, and become responsible custodians of the environment. Last year, His Excellency President Ibrahim Mohamed Solih, nominated Addu and Fuvahmulah as UNESCO biosphere reserves. On 28 October 2020, UNESCO’s included Fuvahmulah and Addu Atoll in the Maldives, to UNESCO’s World Network of Biosphere Reserves. Fuvahmulah became the second site in Maldives to be declared a UNESCO Biosphere Reserve, after Baa Atoll, which was declared a UNESCO Biosphere Reserve in 2011. Furthermore this ensures protection within the region and preservation of natural marine life, as well as guaranteeing that the protected areas are developed sustainably. In addition the President has also declared a list of Single-Use Plastics (SUPs) banned for import into the Maldives from June 1, 2021.Banning the use of SUPs in the Maldives is one of the Government’s key environmental pledges and it is hoped that it will help minimize the harmful effects of single use plastics on the country’s vulnerable marine environment and on human health. Uncertainty is inevitable. What matters is how prepared we are for it, and how well equipped we are to deal with the uncertainties that arise. The pandemic revealed that with honest open communication, effective leadership, and strategic planning, we are capable of dealing with anything. The Maldives was a destination that was at the brink of economic collapse last year, and yet, we persevered. It is with the same perseverance and strength that the Maldives moves forward into an optimistic and hopeful future. ◆

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Tomorrow is decided by us today Worldwide, there is plenty of awareness that more sustainability is urgently necessary. The focus now must be on implementation The fight against climate change dominates headlines around the world – and rightly so. Young people are more politically active now than they have been in a long time. The issue has been on the global agenda since long before “Fridays for Future” – but it has become dramatically more urgent. Not least of all, this is because climate change is no longer abstract. Each one of us is feeling the impact of “business as usual” more and more directly every day. Melting glaciers no longer leave any hiker cold. Floods and burning forests are raising more and more fears in our part of the world as well. The impact of climate change is no longer something we hear about only in news reports about faraway countries. The impact is visible on our doorstep every day. Now it is clear to everyone that much more needs to be done – and should have been done long ago.

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Sustainability has arrived in global politics Despite all this, it was not until 2015 that the international community was able to agree on binding targets and deadlines in the Paris Agreement on climate change. Since then, terms such as climate neutrality, decarbonisation, and net zero have dominated the public discourse. The year 2015 was important not only for the fight against climate change, however, but also for more sustainable development as a whole. That year, the United Nations succeeded in adopting the 17 Sustainable Development Goals (SDGs). The SDGs set out a binding, comprehensive, and global sustainability concept. They aim to shape our world by 2030 in such a way that all people will have the same opportunities for a healthy and peaceful life in freedom and security.

So it makes sense to claim that 2015 was the year when sustainability finally arrived in global politics. Certainly, both the Paris Agreement and the SDGs have their weaknesses. Not all countries have signed the agreements or have committed to implementing the same ambitious targets. But this should no longer serve as an excuse. Pandemic as a warning and accelerator The current global pandemic in particular has impressively shown that a comprehensive approach in line with the SDGs is correct and that the social aspects must not be forgotten in the context of the urgent environmental challenges. For example, as human habitats expand, there is more contact between wildlife and humans, making it easier for viruses to spread. The World Bank estimates that up to

another 100 million people may fall below the poverty line due to the medium-term economic impact of the pandemic. Moreover, the progress made thanks to tremendous efforts in public and private education around the world is in jeopardy due to a lack of funds. Finally, the accumulated global public debt is astronomical and far from sustainable. So that we can keep our world worth living in for our children and grandchildren, we not only need to think differently – we need to act decisively. In other words, we need to walk the talk. The envisaged transformation needs all of us, and it poses enormous challenges. The private sector, policymakers, researchers, and society as a whole are all equally challenged. The risks for certain industries are well known. But there is still far too little talk about the opportunities – especially for the financial sector. According to estimates by PwC, the annual global investments required to achieve the SDGs amount to approximately USD 7 trillion. Only one seventh of this amount is currently covered by the public sector. A substantial share must come from the private sector. The recent “Better Business, Better World” report also shows that pursuing sustainable and integrative business models could unlock economic business opportunities worth at least USD 12 trillion per year by 2030, creating up to 380 million jobs. Multifaceted contribution of the banking sector Liechtenstein and its banking sector have committed themselves to implementing the SDGs. Perennial sceptics may once again claim that Liechtenstein, as a small country, is hardly able to make a meaningful contribution. This ignores, however, that the country is home to a broadly diversified, export-oriented economic sector with a strong industrial location and an internationally positioned financial centre. Liechtenstein is one of the most industrialised countries in Europe. Industry and the financial centre alone account for approximately 65% of the country’s gross domestic product. Together, they play an essential role in innovation, research,

and development, but also in mobilising and channelling the funds needed to implement the SDGs. It is no coincidence that the banking sector has set out an ambitious vision in its new multi-year strategy, Roadmap 2025: We want to make a valuable contribution to the transformation of the global economy towards greater sustainability. We are doing this on four levels. Firstly, the ESG criteria for sustainable investments play a decisive role in the banking sector when putting together a sustainable investment portfolio. The greatest weight is currently given to environmental criteria. In terms of the SDGs, goals 6 (clean water), 7 (clean energy), 9 (innovation & infrastructure) and 13 (climate action) are accordingly of great importance from an investment perspective. Here, banks will play an important steering role through an expanded product offering. Secondly, the focus of the individual banks’ own support and promotion measures is primarily on the following SDGs: 3 (health), 4 (quality education), 6 (clean water), and 15 (life on land). Through their own grant-making foundations, the Liechtenstein banks are already very active in these areas, and they are also living up to their social responsibility through their participation in Waterfootprint Liechtenstein and the FAST initiative to combat human trafficking and modern slavery. Thirdly, all banks have very long-term oriented business models based on stability, resilience, and security. The banks comply with

European and international standards in tax matters and on combating money laundering, terrorist financing, and corruption. And last but not least, many social aspects are emphasised by both the Liechtenstein Bankers Association and its members. Work-life balance, new hybrid working models, and the Villa Wirbelwind daycare centre initiated by the banks are just a few examples. Once again in terms of the SDGs, these help support goals 4 (quality education), 5 (gender equality, reconciliation of family and working life, and diversity) and 9 (infrastructure and mobility). The major banks are in a strong position to lead by example. LGT, for instance, as the largest and most international banking group, already presents its contribution to the SDGs in considerable detail on its website and recently committed to net zero as part of the NetZero Banking Alliance. In all of this, the goal set out in SDG 17 – strengthening partnerships and cooperation – is of great importance. Especially as a small country, Liechtenstein depends on this. And also thanks to its short communication and decision-making channels, this cooperation is put into practice both across the private sector and between the private and public sector to an extent hardly seen in any other country. Greater sustainable development requires not only that everyone takes the issue seriously and addresses it responsibly, but also that we implement it together just as consistently, turning words into deeds. ◆

About the Liechtenstein Bankers Association Established in 1969, the Liechtenstein Bankers Association is the domestic and international voice of the banks operating in and out of Liechtenstein. It is one of the country’s most significant associations and plays a key role in the successful development of the financial centre. Member interests are pursued in accordance with the principles of sustainability and credibility. As a member of the European Banking Federation (EBF), the European Payments Council (EPC) and the European Parliamentary Financial Services Forum (EPFSF), the Liechtenstein Bankers Association is a member of key committees at the European level and plays an active role in the European legislation process. Since 2017, the LBA has also been a member of the Public Affairs Council (PAC) with offices in Washington and Brussels and since 2018 of the international network ‘Financial Centres for Sustainability’ (FC4S). Registered in the EU Transparency

bankenverband.li https://www.bankenverband.li/en/ bankers-association/roadmap-2025

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Pioneering a sustainable future for paints and coatings AkzoNobel’s commitment to People. Planet. Paint. Human activity has left an indelible mark on the planet. While centuries of growth and advancement have come at a cost, we have the insights, knowledge and expertise, along with collective responsibility, to limit our negative environmental impact and contribute to a sustainable future for all.

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Just as people, companies, and industries have contributed to increased global warming and its resulting environmental impact, the same people, companies, and industries can lead the change to a circular economy and a more harmonious coexistence with mother nature.

As a leader in our industry AkzoNobel is committed to playing our part in pioneering a world of possibilities to bring surfaces to life while empowering people and minimizing our impact on the planet through the launch of People. Planet. Paint. our approach to sustainable business.

A TRACK RECORD OF SUSTAINABILITY Sustainability is one of our core values and is integrated in everything we do. Whether it’s coatings that protect against bacteria, save energy usage or transform spaces through color, we’re experts in looking beyond the surface in order to bring them to life. Sustainability is integrated in everything we do, and it’s been in our DNA since 1792. Over the years we’ve invested in a broad range of sustainability initiatives and practices designed to reduce our impact on the planet. From being the first company to remove lead compounds from our products to being the first in our industry to commit to the Science-based Targets Initiative that sets carbon emission reduction targets for scope 1, 2 & 3 we are determined to lead the way. We believe that driving the sustainability agenda cannot be done by ourselves and this is why collaboration is important. It plays a key role to move things quicker. We engage and collaborate proactively with our stakeholders to identify opportunities to create shared value. Our key stakeholders, as reflected in People. Planet. Paint. are customers, employees, suppliers and communities, as well as society, industry associations and investors. We’ve become a member in various associations and organizations, which align with our sustainability approach, namely, the World Green Building Council, United Nations Global Compact, Together for Sustainability, RE100, The Dutch Sustainable Growth Coalition, the Ocean CleanUp, SOS Children’s Villages and more. Our efforts have also been recognized by Sustainalytics (assessed as low risk, the best possible rating in our industry), EcoVadis (Platinum rating placing us in the top 1% of all companies studied), MSCI (AAA rating for six consecutive years), Vigeo Eiris (first in our industry), Corporate Knights Clean200 and more. PEOPLE. PLANET. PAINT: THE KEY TO SUSTAINABILITY People: We act with integrity and respect human rights across our operations

and value chain, embracing diversity and inclusion, to transform the communities in which we operate. It’s about ensuring a safe and diverse work environment, developing our talented workforce, embracing our values and our approach to human rights. AkzoNobel supports the Universal Declaration on Human Rights, the UN Guiding Principles on Business and Human Rights, and the Declaration of Fundamental Principles and Rights at Work of the International Labor Organization. Through our AkzoNobel Cares and Let’s Color programs we ran over 1000 projects around the world and trained over 15,000 people in 2019. As an employer, AkzoNobel has been recognized as a Top Employer in multiple countries including the UK, China, Brazil, the US, France, the Netherlands, Sweden, and Poland. By 2025, AkzoNobel expects over 30% of the company’s executives to be female and to have trained over 35,000 community members globally. Planet: Our Planet ambitions are tangible and will enable us to continue making an important contribution to addressing the sustainability challenges faced by our company, customers and broader society. As well as working to cut carbon emissions and reduce waste to minimize impact, we’re also taking proactive steps to improve our ways of working to build better processes for the future. For many years, we’ve been working to operate in a more sustainable way, and we continue to take steps to reduce our environmental impact through reformed value chains. We focus particularly on reducing energy use, carbon emissions, VOCs and waste, while increasing our use of renewable energy and materials.

Our aim is to reduce carbon emissions in our own operations by 50% by 2030 and by 42% across the whole value chain of a 2020 baseline, reduce energy consumption by 30% by 2030, and use 100% renewable electricity by 2030. We also have an ambition to produce zero non-reusable waste and to recycle wasted water at our most water intensive sites. These ambitions are not only achievable but we’re on track to get there. Lastly, we’re always looking for new ways to drive sustainable innovation that brings tangible benefits, delivers a positive social and environmental impact, and enables our customers to reach their own sustainability goals. That’s why we focus on developing our portfolio of paints and coatings with sustainability benefits in our value chain and offering our customers one of the largest portfolios of sustainable solutions in our industry. Paint: We are committed to creating impactful sustainable solutions that bring interior and exterior surfaces of life while also empowering our customers to achieve their own sustainability objectives. From buildings to ships and everything in between, sustainable, highperformance paints and coatings are our lifeblood. Currently, AkzoNobel generates approximately 40% of our revenue from sustainable solutions, which is the highest in the industry. However, it is not enough. AkzoNobel continues to focus on innovation and pioneering new products that have a sustainability benefit. By 2030, AkzoNobel aims sustainable solutions to make up more than 50% of the company’s revenue. A team of 3,000 scientists works closely with customers to develop innovative, sustainable solutions to →

We believe that driving the sustainability agenda cannot be done by ourselves and this is why collaboration is important. It plays a key role to move things quicker. We engage and collaborate proactively with our stakeholders to identify opportunities to create shared value. 127

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→ real-world concerns and challenges. All sustainable solutions are developed with four innovation drivers in mind, productivity, asset protection, surface enhancement, and environmental protection. In order to measure the positive and negative sustainability characteristics of our product portfolio we have the developed our Sustainable Product Portfolio Assessment (SPPA) framework together with several leading chemical companies in the world and the WBCSD (World Business Council for Sustainable Development). This SPPA framework takes a holistic view of product portfolio sustainability, with a focus on developing sustainability advantages that AkzoNobel can offer to customers. The SPPA was instrumental in developing a broad range of sustainable solutions (products and services) that deliver sustainability advantages downstream and now account for 40% of the company’s portfolio. Prime examples are the Eco-premium solutions that offer clear sustainability benefits and outstrip competitors, leading to best-in-class designations. Within our SPPA framework, products are characterized as sustainable for their ability to bring sustainability benefits in one of the following areas: • Health and well-being • Reduced carbon and energy • Less waste • Longer-lasting performance • Reduce, renew and reuse. These sustainability criteria are embedded in our innovation programs. Based on these criteria we focus on creating innovative paints and coatings to reduce fuel consumption, limit heat transfer, amplify light emission, and more, all with minimal VOCs, waterbased products, and other carbonreduction methods. Waste reduction throughout the company’s production cycle is also vital. Waste and water can be reused and recycled, including overspray. High-solid products help reduce packaging waste while powder coatings have a 99% reclamation efficiency rate. Of course, all of these goals must be reached while still GROUPOFNATIONS.COM

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ensuring the best possible performance and durability for customers. To ensure that we’re able to anticipate changes in legislation and remain at the forefront of pioneering innovative solutions we’ve developed, our priority substance program. This multi-award-winning priority substance program is focused on proactively removing hazardous substances from existing products and formulations ahead of legislation, as was the case with removing lead compounds from our products. AKZONOBEL’S SUSTAINABLE SOLUTIONS We take our responsibility as an industry leader seriously and we are committed to applying these lessons throughout the supply chain to address both energy use and air quality. We have made an ongoing commitment to invest in sustainability, innovation and society. The foundations of our work are built on a review of the risks and opportunities within the context of our key market segments to 2030. This has demonstrated to us the need to leverage the latest knowledge across science and society, identify and mitigate our challenges, and develop strategies to make the future better. For example, South East & South Asia is a market experiencing robust economic and population growth. This

demands high levels of construction to meet the demands of a new middle class and rapid urbanization. However, as our research identified, this also means that there is a vast opportunity to pioneer new solutions. Today, AkzoNobel has committed to tackling climate change and helping the company’s customers reduce their own carbon emissions through intelligently designed products and solutions. These include the following: Reduction of Urban Heat Island effect: Cities experience the “urban heat island effect”, especially those cities that are subject to temperatures of 35°C and above throughout the year. This results in growing energy consumption, which is needed to cool down buildings. What many people are unaware of, however, is the fact that the materials used on exterior façades can have a significant impact on the temperature inside a building. When infrared radiation from the sun strikes the surface of a building, some of it is reflected and some is absorbed in the form of heat. This causes the exterior wall of the building to increase in temperature, and this heat is subsequently transmitted to the interior of the building. Thanks to innovative technology and smart formulation modelling software, our researchers have developed strategies to increase the solar reflectivity of our coatings. We’ve carefully managed the pigments we use in our paints to

in a variety of decorative paints, coil coatings and powder coatings within the AkzoNobel portfolio.

We have made an ongoing commitment to invest in sustainability, innovation and society. The foundations of our work are built on a review of the risks and opportunities within the context of our key market segments to 2030.

create striking colors while at the same time significantly increasing the amount of infrared radiation which is reflected by building façades. The result is a difference of up to 5°C between a façade coated with a normal exterior paint and one coated with our Dulux Weathershield Keep Cool products. Computer simulation modelling has also demonstrated energy cost savings of up to 10 to 15 percent, depending on the type of building. And this is achieved simply as a result of less energy being required to cool the inside of the building. This type of cooling effect is available

Cleaner Air: In our work to purify the air around us, we can now use photocatalysis to trigger chemical reactions. In this process, photoactive titanium dioxide absorbs sunlight and reacts with oxygen and moisture to generate highly reactive free radicals, which in turn can contribute to the abatement of noxious emissions from motor vehicles, and decompose harmful gases like nitrogen oxide, sulphur dioxide and VOCs. We closely monitor the cradle to grave lifecycle of our raw materials and finished products to reduce Volatile Organic Compounds, the impact of transportation and other environmental fallout. Reducing Environment Footprints: Reducing the environmental footprint of our coatings is a clear focus of our research programs. We are striving to increase the use of renewable materials and optimize our use of lower carbon footprint raw materials. Another, and perhaps less obvious, way to reduce footprint is through increasing the durability of exterior wall paints. Enabling longer maintenance and repainting cycles helps to reduce building maintenance costs and environmental impact. This is achieved by lowering the use of resources for the paint itself (which will last longer), as well as reducing water use due to less need for cleaning. Both climate and human activities alter the appearance of building façades through UV- driven color fading, erosion, cracking, flaking, dirt and dust pick-up, fungal and algal growth. In tropical urban environments in particular, most exterior wall paints currently last around five to eight years. We are developing solutions to extend this durability to at least ten years and beyond. Our research programs are focused on developing new polymer technologies to best balance weatherability and softness to create products with a longer durability than standard products used on building façades. In

combination with durable pigments that do not fade under strong UV, and smart formulation modelling, we can deliver extended repainting cycles. Resource Use: In addition to encouraging the use of renewable materials, AkzoNobel offers wood coatings that increase manufacturing efficiency. Reduced Temperature Curing: Powder coating traditionally requires baking at very high temperatures to cure. Achieving those temperatures requires immense amounts of energy. However, AkzoNobel’s specially engineered powder coatings can cure at much lower temperatures, reducing energy consumption significantly. Marine Products: AkzoNobel manufactures solvent-free, VOCcompliant, universal primer designed specifically for marine environments. These are critical as international shipping relies more and more heavily on cargo ships and sea-bound trade continues to grow. COMMITMENT IN ACTION AkzoNobel takes the lead in sustainability initiatives. While AkzoNobel has invested in a robust range of sustainable solutions and products, the organization is also committed to creating change across its own operations and broader society. Solar Power Projects To achieve our ambition of 100% renewable electricity by 2030 AkzoNobel is investing in solar energy generation. Recent significant installations include over 1600 panels in Garcia (Mexico) and Barcelona (Spain) as well as more than 5,000 at the Shanghai site and almost 3,000 in Guangzhou (China). Two major projects in China will see the company accelerate its ambition of cutting carbon emissions in half by 2030. We currently use 100% renewable energy (RE) in several different countries, including the UK, Belgium, Spain, the Netherlands, Brazil, Colombia, Ireland, and Estonia and will complete the transfer to 100RE in Europe by 2022. → 129

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→ Green Building Projects AkzoNobel is a proud member of the World Green Building Council (WGBC). According to that organization, 38% of global energy related to carbon emissions comes directly from buildings – 27% of operational emission from heating, cooling, and powering buildings and 11% of embodied carbon in the form of construction materials and activities. As a solution to this challenge, AkzoNobel is focusing on green building design and construction. According to the WGBC, “a green building is a building that, in its design, construction or operation, reduces or eliminates negative impacts and can create positive impacts, on our climate and natural environment. Green buildings preserve precious natural resources and improve our quality of life.” AkzoNobel promotes the development of the green building market through its membership in the WGBC. The organization provides multiple solutions to increase sustainability in the sector, including the use of reflective coatings for building envelopes to reduce heat GROUPOFNATIONS.COM

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transfer and drive down climatecontrol-related energy use. Longerlasting paints and coatings for building interiors and exteriors further reduce energy and resource consumption, as well as the need for repair, cleaning, and repainting. Biobased pollutantabatement paints for air purification as in Dulux Better Living Airclean and primer-cum-topcoat 2in1 paints, Dulux Professional Express, promotes productivity via increasing efficiency by 30%. AkzoNobel is also dedicated to reducing the amount of embodied carbon in the company’s products. It will achieve this through low-bake/UV/ ambient cure coatings, low-VOC/ water-based products, and the use of renewable materials in decorative interior wall paints, metal coatings, and liquid protective wood and coil coatings. Some impacts occur beyond the scope of our processes, with our suppliers and customers. For example, in paints and coatings, more than 98% of our carbon footprint comes from upstream (supplier) and downstream (customer) activities.

According to the WGBC, “a green building is a building that, in its design, construction or operation, reduces or eliminates negative impacts and can create positive impacts, on our climate and natural environment.

Upstream, we know that the emissions from raw materials such as pigments, resins and solvents are our greatest impact, so we have joined forces with suppliers to drive the use of bio-based materials, recycled content, or raw materials produced with renewable energy.

About the Author

Through these initiatives, the company will work towards achieving the World Green Building Council’s three primary goals, which are climate action through the proliferation of net-zero buildings; health and wellbeing to provide healthier places for people to live, work, and play; and resources and circularity to better manage natural resources.

Smart Application: Applying paints and coatings should require less energy and (when possible) rely on innovative techniques and technology.

AKZONOBEL’S PAINT THE FUTURE CHALLENGE In 2019, AkzoNobel launched the Paint the Future Global Startup Challenge. The mission is simple – to change the world of paints and coatings. The challenge features five themes that paints and coatings should embody, including:

Smart Manufacturing and Supply Chain: Paints and coatings should be manufactured, distributed, and applied through an intelligently designed process and robust supply chain. ◆

Enhanced Functionality: Paints and coatings should provide more than basic protection and aesthetics. They should also be more durable than previous formulations. Customer Experience: Paints and coatings should deliver an excellent end-customer experience, including better adhesion, protection, colorfastness, and more.

Circular Solutions: Circular solutions help manage resource use and consumption while focusing on renewables/reusables.

About Akzonobel We’ve been pioneering a world of possibilities to bring surfaces to life for well over 200 years. As experts in making coatings, there’s a good chance you’re only ever a few meters away from one of our products. Our world class portfolio of brands – including Dulux, International, Sikkens and Interpon – is trusted by customers around the globe. We’re active in more than 150 countries and have set our sights on becoming the global industry leader. It’s what you’d expect from the most sustainable paints company, which has been inventing the future for more than two centuries.

Pamela Phua has been General Director of AkzoNobel Decorative Paints Vietnam since 2017. At the beginning of 2021, she was appointed to be Product Management Director, Decorative Paints - SESA, being instrumental in developing and maintaining a product portfolio that satisfies market demands and maximizes margins at competitive costs. Before moving to head Vietnam Paints business, Pamela was the BU R&D Director & Global Director, Exterior Walls. In her 18 years stint in R&D, she has driven the business with new technology development and product implementation across the region, especially in Vietnam market and has successfully launched many innovative products including Dulux Weathershield / Powerflexx, Dulux Pentalite, Dulux Wash & Wear / EasyClean, Dulux Inspire/ Catylac by Dulux and Aquatech. In her global capacity, Pamela implements the functional and production innovation strategy for exterior wall paint. She spearheads the RD&I functional excellence, standards and capability, and the efficient delivery of processes as the approved standards and processes across the globe. Together with a special passion for sustainable development, she has led her teams to innovate paintings products and solutions through increasingly sustainable benefits for AkzoNobel customers and the environment. She also actively gets involved in sustainable activities in projects to create inspiring living spaces for local communities and to promote green architecture trends. Pamela’s expertise and experience has been instrumental in the setting up of industry standards in Singapore. She is the President and Technical Chairperson for the Singapore Paint Industry Association and a management member in the Chemical Standards Council of Singapore. She contributed to the development of various Singapore Standards such as SS 345 (Specification for emulsion paints for decorative paints), SS500 (Specification for elastomeric wall coatings), SS150 (Specification for Emulsion Paints for Decorative purposes), SS 579 (Specification for waterbased sealer for interior and exterior uses) and many others. Pamela currently leads Working Group for Fine Ceramics (for photocatalysis) and Waterbased Standards and participates in the Working Group for Energy Efficient Coatings. She is also an A*Star certified auditor for accredited laboratories in Singapore. With a special passion for sustainable development, Pamela is actively involved in projects to create inspiring living spaces for local communities and to promote green architecture trends. She is an author for the G7&G20 summit publication advocating green developments. She is also a keynote speaker in United Nation climate Change Conferences. Email: Pamela.phua@akzonobel.com Mobile: +65 90279663 Address: AkzoNobel House, 3 Changi Business Park Vista, #05-01 SDingapore 486051 www.akzonobel.com

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G L O B A L B R I E F I N G R E P O RT R E V I E W ISSUU B R A N D E D S T O RY

Page by Page, Digital Publishing Platform Issuu is Saving Trees and Helping Businesses Grow By Joe Hyrkin, CEO, Issuu

The effects of climate change are hard to ignore. From wildfires, droughts, and flooding in the West to rising sea levels and typhoons in the East, companies must realize that finding solutions is not only a governmental and societal problem, but a business imperative. It’s not only about making your office green or employee policies more environmentally friendly, it’s actively seeking ways that your business or government agency can make thoughtful business decisions with sustainability in mind. As a digital publishing company, the nature of Issuu’s business helps improve the environment. Digital publishing saves an immense amount of paper each year, and every piece of paper saved helps repair our planet. As you know, trees serve a vital role in not only converting CO2 to oxygen, but storing much of the world’s carbon. Sustainability matters to us all, and at Issuu, we’ve prioritized it as an important core business value. So we watch our metrics closely, tying them to both revenue and environmental impact. A few months ago we conducted an internal analysis of the aggregate publishing activity happening on Issuu, and the data was inspiring. More than 20,000 new documents and publications are uploaded to Issuu every day. These range in size from two-page sales spec sheets and 10-page real estate brochures to 48-page travel magazines, 300page retail catalogs and 500+ GROUPOFNATIONS.COM

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page textbooks and beyond. In addition to the number of pages, we also take into consideration the number of times a piece of content is read when measuring impact. This is because while someone only needs to upload a publication once to Issuu, in the physical world they would need to print a new copy for almost every reader. Often, people don’t even read every page that is printed in a magazine or book. Yet it still consumes a sheet of paper. Between March 2020 and March 2021, digital documents and publications were read over 1.5 billion times on Issuu. 1,588,139,035, to be precise. However in the digital world, a page not-read has zero environmental impact. So we dug deeper. Using the same subset of data, we tracked over 32 billion pages read. Instead of calculating our impact based on the number of pages published, we used the number of pages read. Next, we considered how many sheets of paper an average tree produces. The industry consensus is 8,333. Of course different tree types and sizes produce differing results, but for our purposes, we took the average. Based on these numbers, we estimate that our Issuu publishing community has saved 3,811,686 trees in the past year alone. This kind of impact from our customers is what makes our everyday efforts worth it. What can your company do to improve your environmental impact? Here are six tips. Reduce business travel, and make necessary trips count Issuu has offices in Copenhagen, Berlin, Braga (Portugal), and Palo

Alto (California), plus many of our U.S. employees work in cities and towns across the country. We work across continents and time zones, nd while nothing replaces in-person relationships, we rely heavily on tools like Slack, Zoom, Loom, and Jira to foster collaboration. When we do have to travel, we condense trips and combine meetings to get the most out of every mile. Encourage the use of public transportation for commuting. During the pandemic, our employees worked mostly from home, which saved countless emissions. But as we reopen our offices, as safety allows, we’re hopeful that public transportation will once again be a popular way to commute to work. Donate extra office furniture and computers to nonprofits and local governments With many companies going remote, you may have extra office furniture and computer equipment on hand. Instead of offloading it to liquidators for pennies on the dollar, research local nonprofits and essential businesses such as hospitals, NGOs, and local governments and donate it. In many cases you may receive a write-off, but more importantly recycling furniture can help both the environment and organizations dedicated to social good. If you make physical goods, reconsider your packaging and shipping Reducing plastic is critical to the preservation of our oceans, and helps landfills. There are many green alternatives available today, and the costs are often comparable or only

Based on these numbers, we estimate that our Issuu publishing community has saved 3,811,686 trees in the past year alone.

solutions may help. And if no one notices, turn off the printer. You’ll save energy with little cost. For larger printing jobs such as trade show collateral, brochures etc., try using digital tools to host your content online, and experiment with QR codes to bridge the gap between in-person interactions and your digital content.

slightly more expensive than plastic. As for shipping? Try to disperse manufacturing to more plants closer to customers, and avoid quick-ship options. If your customers value your product, they’ll wait a few extra days to receive it and you’ll help reduce shipping-based environmental costs.

Reduce paper usage Whether for internal or external use, businesses often use a lot of paper. Try turning off your office printer for a week to easily identify areas of over-printing. If you notice specific employees often printing large files, learn more and see if training in digital

Use Issuu Issuu provides the tools to transform content you might normally print into elegant looking digital formats that can be shared digitally across any channel. Millions of businesses and organizations have jettisoned printing altogether and rely on Issuu’s tools to present their materials and information to their audiences on their device of choice. Issuu provides an alternative that is more convenient, less costly and of course more environmentally beneficial than print. Here at Issuu, we understand just how important it is for larger companies and organizations to make steps towards a more sustainable future. We’re committed to doing our part, and hope you will join us. ◆ 133

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APEC Global Briefing Report Review- Featuring a recap of G7-G20 & COP26

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