'Shared Purpose' – A Path to Government-Business Synergy for Sustainable Development

Editor's Note:

The International Business Leaders' Advisory Council for the Mayor (IBLAC) brings together top executives from leading multinationals to share insights on Shanghai's development strategy. Each company brings forward a paper that draws from its global practices as well as local insights. Shanghai Daily has selected and summarized some of the most insightful recommendations for the city.

Sustainable development is not just a popular topic in public discourse; it is a pressing global challenge. At its core, sustainable development seeks to balance three essential pillars: economic growth, social progress and environmental protection. Yet how to achieve this delicate balance remains a significant challenge for governments and businesses alike.

First, cities are at the forefront of the fight for sustainable development. As former United Nations Secretary-General Ban Ki-moon noted, "Our struggle for global sustainability will be won or lost in cities." With over half of the global population currently residing in urban areas, cities account for 60-80 percent of energy consumption and 75 percent of carbon emissions. This concentration of people and resources makes cities the epicenter of sustainability efforts.

Second, governments and businesses are the dual drivers of sustainable development. Traditionally, governments led the charge in sustainable development, responsible for setting policies and enforcing regulations. But in recent years, businesses have become just as critical. The rise of corporate social responsibility has placed the "Triple Bottom Line (TBL)" principle – people, planet, profit – which closely aligns with the essential pillars of sustainable development, at the heart of business strategies, making companies a crucial force in the sustainability movement.

As a global metropolis advancing the development of the "five centers," referring to a global center for economy, finance, trade, shipping and science and technology innovation, Shanghai aims to become "an excellent global city of innovation, humanity and sustainability as well as a modern socialist international metropolis with world influence," as outlined in its Shanghai 2035 Master Plan.

This vision aligns seamlessly with the United Nations Sustainable Development Goal (SDGs): "Make cities inclusive, safe, resilient and sustainable." Realizing this vision requires collaboration between governments and businesses, fostering a productive partnership between public policy and commercial initiatives.

This paper adopts a global perspective, drawing insights from international cities and multinational companies that have successfully promoted sustainable business practices. It provides targeted recommendations to support Shanghai in achieving sustainable development by balancing economic growth, social progress, and environmental protection.

As a driving force behind digital low-carbon transformation and sustainable practices, the Shanghai municipal government has consistently prioritized these goals in urban planning.

This collaborative model, with government leadership and active business participation, has effectively advanced Shanghai's sustainability agenda, offering solid support for achieving the Shanghai 2035 vision. Drawing on international best practices from France and Danone, we present the following recommendations:

Policy innovations to establish a "shared purpose" between government and businesses in sustainability

Achieving sustainable urban development requires a stable, long-term partnership between the government and businesses. Such collaboration should extend beyond project-level cooperation and establish a "shared purpose" framework through legal and policy mechanisms, ensuring shared visions and goals in environmental and social responsibility.

We recommend city leaders to pilot policies to embed environmental and social responsibility into business development goals, enhance transparency in information disclosure for both government and businesses, and scale impact with policies to support government-business co-financing mechanism.

Establish shared platforms: Government-business collaboration for scalable solutions

As China's leading hub for multinational companies, Shanghai is home to 1,016 regional headquarters of foreign enterprises, accounting for 56 percent of the national total as of 2025.

The International Business Leaders' Advisory Council for the Mayor of Shanghai (IBLAC) has long served as a platform for global business leaders to offer strategic advice. Building on this foundation, we recommend establishing a "Sustainability Committee" within IBLAC, where the government and multinational companies can jointly develop sustainability initiatives, pilot projects, and standards.

We also recommend that the government, in partnership with foreign enterprises, regularly host sustainability-themed forums and exchange activities, creating a lasting mechanism for sharing best practices. This platform would enable multinational companies to systematically share their global sustainability experiences.

In the global push for sustainability, a "shared purpose" between government and business is not just an aspiration – it is an essential pathway to achieving balanced development in economic growth, social progress and environmental protection.

Looking ahead, Shanghai is well-positioned to realize its vision of becoming a global leader in sustainable development. Through a deep and enduring alignment with businesses based on a "shared purpose," the city can create a resilient ecosystem where economic growth, social progress, and environmental protection reinforce one another.