Why does AFD support the Global Compact?

Why does AFD support the Global Compact?

The overall approach:  reconciling economic, social and environmental priorities

As humanity became aware that it was at a turning point in its evolution, as much for fighting injustice in economic and social development between Nations as for preserving environment, the international community made a commitment to set up a global partnership for sustainable development.  This commitment was made 14 years ago after the Rio Earth Summit.

AFD has placed sustainable development at the center of its activity, and deals with the issue from three angles of attack: 

  • promoting economic growth,
  • reducing poverty and social inequality and
  • protecting humanity’s common goods, which is to say fighting the major endemics as well as global warming; preserving biodiversity; ensuring international security and also promoting social and environmental responsibility of both corporations as well as of States. 

In keeping with its principles and its commitment to the United Nations Global Compact, AFD seeks to promote a policy of Social and Environmental Responsibility, which deals both with its internal operations as well as those financed by the Agency.  A Social and Environmental Responsibility document will be drafted by AFD in 2006.

The banking sector: a key actor in disseminating good practices

The dissemination of good practices for sustainable development is particularly appropriate for the banking sector.  Banks, which provide services directly to their SME clients, can in fact pass on the same Social and Environmental Responsibility policies that they must respect themselves.  For businesses that wish to export, the Social and Environmental Responsibility label could be a guarantee that European standards are being respected and also a good communication tool.