Voluntary commitment

Voluntary Commitment by UNISDR’s Disaster Risk Reduction Private Sector Partnership (DRR-PSP)

Description

DRR-PSP is a voluntary group of 92 businesses from 36 countries that work with UNISDR to drive solutions for resilient and disaster risk-sensitive private sector activities. DRR-PSP members range from local to global firms and cover diverse sectors including engineering, health care, construction, IT and insurance. PSP members contribute to UNISDR’s mission to enhance resilience and further disaster risk reduction by bringing their knowledge of risk anticipation, risk management expertise and business initiatives in disaster mitigation. All PSP members committed to the 'Statement of Commitment by the Private Sector for Disaster Prevention, Resilience and Risk Reduction', and the 'Call for Action: Five Essentials for Business in Disaster Risk Reduction.'

DRR-PSP believes that there is a clear mutual interest for the public and private sectors to work together, as the private sector relies on the resilience of public infrastructure and services to conduct their businesses, and governments and communities depend on resilient business practices for a stable and sustainable economy .

This voluntary commitment from DRR-PSP describes how our members aim to implement the Five Private Sector Visions for a Resilient Future and how our efforts will match and support the work of governments in implementing the post-2015 Framework for Disaster Risk Reduction.

Private Sector Vision 1: Strong Public Private Partnerships drive disaster risk reduction and resilience at the local and national level.
Private Sector Vision 2: Resilience in the built environment is driven by the public sector raising minimum standards, and enabling the private sector to work voluntarily towards optimum practices.
Private Sector Vision 3: All financial investment and accounting decisions, public and private, are risk-sensitive.
Private Sector Vision 4: A resilience-sensitive public and resilience-sensitive businesses drive each other towards resilient societies.
Private Sector Vision 5: Identification and disclosure of risks carried, and their proactive management, becomes a standard business practice.

Targets

Vision 1-1. Develop a framework for comprehensive disaster planning that addresses infrastructure asset management and natural vulnerability based on type of disaster, private sector businesses in the community, and community physical setting. This tool will be used to bring together public and private sector to develop actions to prepare for probable risks and respond to events. Expected to be available through the UN ISDR; By June, 2016
Vision 1-2. Develop a portfolio of incentives (tax credits, insurance premiums, etc.) and financing mechanisms for the private sector that encourages investments and actions to improve community resilience; including green climate funds; By December, 2016
Vision 1-3. Develop a process and procedure to document best practices in planning, response and recovery actions for natural disasters. This will be a web based platform that the Public and Private sector can easily complete and will be made available to all governments and private sector business units through the United Nations. This will include a mapping process to integrate local business continuity plans with City/County/Regional plans to allow for a comprehensive community plan; By June, 2017
Vision 1-4. Develop a community planning template for coordination of recovery actions which will be based upon the type of disaster threat, local composition of private sector business units, and public sector components that prepare and rehearse for rapid recovery after a natural disaster; By June, 2017

Vision 2-1. Use insurance as a vehicle to share risk information, help develop risk zones, test building standards and more explicitly reward resilience.
Vision 2-2. Use financial risk reporting as a motivator to invest above codes.
Vision 2-3. Create success role models by investing above codes in our own businesses.
Vision 2-4. Assist international organizations in improving and communicating hazard maps.
Vision 2-5. Incorporate building code reviews into international aid project scopes.
Vision 2-6. Develop and publish a private sector guide on resilience and investment in the built environment
Vision 2-7. Develop 3rd party building resilience audit and inspection capabilities.
Vision 2-8. In the residential segment develop and expand grass-roots initiatives to build above code in hazard prone areas

Vision 3-1. Drive the integration of disaster risk and resilience into the financial and accounting system through the 1 in 100 Initiative to identify new and existing public, private, and mutual mechanisms for measuring and accounting for risk in investments. This could involve collaboration with existing initiatives on risk-sensitive investments to sensitize governments and key sectors in both developed and developing countries.
Vision 3-2. Develop a portfolio of financial incentives to improve resilience, including driving the application of disaster and climate risk stress-tests - based on the model developed by the insurance sector - across public, private and mutual sectors; advocating for the reflection of the level of disaster risk in the cost of capital, as to allow those entities with enhanced resilience to burrow at lower interest rates; and exposing resilience as a critical factor in the financial stability of economies through enhanced engagement with financial regulators.
Vision 3-3. Facilitate international dialogue amongst public, private and mutual sectors to develop a framework for improved modalities of cooperation and knowledge-sharing in the fields of risk assessment, evaluation and modelling; financial regulation and accounting; and insurance systems. This will contribute to expanding risk and financial management services across multiple sectors and promoting catastrophe modelling in new regions.

Vision 4- 1. Organize new, or strengthen existing private sector forums, conferences, and seminars at the national level, held at least once a year, to educate companies to: adopt resilient business practices and risk-sensitive business decision-making; and facilitate adoption by disseminating knowledge, tools, and practices identified through Visions 2, 3 and 5. We commit to begin the above in countries in which our members have strong ongoing efforts (such as Japan, the Philippines, Canada, and India) in 2016; and expand to at least 10 countries by 2018. These efforts will be, wherever possible, multi-stakeholder and multi-sectoral.
Vision 4-2. Approach industry associations, as well as chambers of commerce at the national level to accelerate business resilience and risk-sensitive decision-making in key sectors; adapt and “localize” the knowledge, tools, and practices identified through Vision 2, 3 and 5 where necessary towards this aim. We commit to begin the above in 2016 amongst Insurance, Financial, Tourism, Engineering and Construction, Information and Communication Technology, Energy, Real Estate, and Retail sectors in which we already have member strengths; and in countries or regions in which members are represented. Then, expand to address all sectors identified or named in the post-2015 framework and its monitoring and reporting framework, and expand geographically by 2020. Specific targets for 2020 will be set by 2018.
Vision 4-3. Develop and implement projects that support the growth of community resilience at the local level, focusing on business continuity planning of SMEs and local businesses, employee training and education, and outreach to the wider communities in which our members operate in to implement awareness-raising, training and risk assessment, and risk reduction capacity-building. We commit to 5 projects being initiated by members by 2018.
Vision 4-4. Grow our organization to ensure that we can credibly represent the entire private sector, in support of UNISDR and in global discussions on disaster risk reduction and resilience, in order to serve as a conduit between global discussions and corporate, sectoral, community and national level efforts as described above. To this end, we commit to double our membership by 2017; establish formal relationships with existing major global private sector networks such as the World Economic Forum, UN Global Compact, and the International Chamber of Commerce by 2017; establish local networks in at least 5 countries and/or regions by 2017 and more by 2020; and become a resource and partner for national platforms and governments conducting post-2015 framework monitoring, much like Canada's Platform for Disaster Risk Reduction - Private Sector Working group, by 2020. Specific targets for 2020 will be set by 2016.

Vision 5-1. Develop and test the business case or cases for DRR/Resilience disclosure to help increase understanding and acceptance of this as a standard practice. By 2018, then on-going.
Vision 5-2. Working cooperatively across the Visions and with 1 or 2 regional or national governments, help develop, integrate and align the standards, reporting, and auditing systems for full implementation of Vision 5 by Mid-2017. Expanded targets for 2020 will be set in 2018.
Vision 5-3. Develop a recommended framework and tools for voluntary DRR/R disclosure of private companies to leverage best practices and work collaboratively with relevant organizations, industry associations and/or local and national governments with the aim to develop relevant standards and certifications. DRR-PSP aims to coordinate with many of the organizations, industry associations and/or local and national governments that Visions 1 and 4 will focus on. Timeline for implementation: pilot by mid-2016, scale up by 2020.
Vision 5-4. Develop a recommended educational framework and/or tools for DRR/R transparency for corporations and organizations to use throughout their supply chains in order to reach SME’s. This approach will also allow leveraging best practices and working collaboratively to align with relevant local and national governments and/or industry associations to develop relevant standards and certifications at the local level. Timeline for implementation: pilot by mid-2016, scale up by 2020.

Indicators

See description in Targets above.

Means of verification

Annual DRR-PSP progress reports.

Timeframe

See description in Targets above.

Attachments

Project description: Other:

Contact Person

Ms Sandra Wu
Chair, UNISDR Disaster Risk Reduction Private Sector Partnership (DRR-PSP) and UNISDR Private Sector Advisory Group (PSAG)

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