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Multinationals come together to combat social, environmental challenges at G-7

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Multinationals come together to combat social, environmental challenges at G-7

A group of major multinational companies has agreed to take concrete actions to address inequality and promote diversity in their workplaces and supply chains through a new coalition that will launch at the G-7 Leaders' Summit beginning Aug. 24.

Thirty-four companies have pledged to join Business for Inclusive Growth, or B4IG, an initiative that is being sponsored by French President Emmanuel Macron and overseen by the Organization for Economic Cooperation and Development.

French consumer goods giant Danone SA's CEO Emmanuel Faber is spearheading the B4IG coalition, which comprises organizations with a combined $1 trillion in annual revenue and over 3 million employees globally.

"[The] middle-class is shrinking in most G-7 countries, whereas it is the foundation of market economy around the world. And we know that beyond a certain threshold, inequalities are economically damaging. … With B4IG, our aim is to build a constructive dialogue to advance social inclusion, pilot and scale innovative, inclusive micro-economic business models, and thereby contribute to inform macroeconomic policies," Faber said in a statement.

Under the initiative, the companies will run an OECD-managed three-year program focusing on retraining and upskilling disadvantaged and underrepresented groups across their global operations, with the aim of creating more inclusive working environments. The OECD will also house a B4IG incubator to encourage public-private projects around business models with greater social impacts. It will be funded by G-7 governments and private donors.

The OECD stated that the companies have identified about 50 existing and planned projects with a total of €1 billion in private funding that will fall under the B4IG initiative. The projects relate to issues including increasing women's participation in the workforce, investment in childcare, financial support for small businesses and faster integration of refugees in the workforce.

Alongside Danone, consumer goods giants The Unilever Group, L'Oréal SA, Ikea AB, Henkel AG & Co. KGaA, Mars Inc., Sodexo SA and Keurig Dr Pepper Inc. will ratify the pledge.

Private equity firm JAB Holding Co. Sàrl and financial institutions JPMorgan Chase & Co., Goldman Sachs Group Inc. and BNP Paribas SA are also onboard. Energy companies Engie SA, Suez SA and Veolia Environnement SA; carmaker Renault SA; electrical equipment maker Schneider Electric SE; British conglomerate Virgin.com Ltd.; and consultancy Accenture PLC will also join.

Additionally, 32 fashion and textile businesses, led by French luxury goods maker Kering SA, have agreed to take actions to reduce the environmental impact of their industry. The companies endorsing the Fashion Pact include Adidas AG, Inditex, Hermès, Capri Holdings Ltd., NIKE Inc., Tapestry Inc. and Prada Group.

The companies said they will implement science-based targets to help stop global warming, restore biodiversity and protect the oceans.

President Macron will unveil both the initiatives at the Elysées Palace on Aug. 23. They will be launched during the G-7 summit, which is taking place in Biarritz, France, from Aug. 24-26.