Business Case

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The Business Case for UNTP implementation

In this section we provide a broad analysis of the key drivers, impacts, costs, and benefits associated with the implementation of the United Nations Transparency Protocol (UNTP) in an overall digital trade facilitation program.

• Stakeholder motivations summarizes the full range of stakeholder types and their motivations.
• Business case for industry details the business value propositions and costs for UNTP implementation by industry at individual company level and provide a simple business case template.
• Business case for government details the business case for governments at both individual agency and national economy levels.
• Community activation program defines a methodology and business case for industry member associations to engage their membership for collective implementation at the community level.
• Value assessment framework is essentially the UNTP business case for UNECE because it defines the UNTP KPIs that will be measures so that global impact can be tracked.

Stakeholder Motivations

The table below provides an overview of the different stakeholders participating in the trade ecosystem, including their role and, key motivating factors and link to the UNTP benefit statement in the Audience, Benefits & Goals section.

Stakeholder	Motivation
Consumers/Consumer Groups - Purchase and use products.	We want to make informed choices about the products we buy, but it's hard to find reliable information about their origins and manufacturing.
Regulators - Enforce compliance with laws and regulations.	We struggle to ensure that all companies comply with safety and environmental regulations because we lack visibility into their supply chains.
Producers and Manufacturers - produce raw materials and manufacture goods.	We face difficulties proving the ethical sourcing and quality of our raw materials to our customers.
Brands and Retailers - Market and sell products to consumers	Our customers want to know where our products come from and how they are made, but it's hard to provide that information.
Recyclers and Refurbishers - Manage end-of-life products.	We often don't have enough information about the materials we receive, making recycling and refurbishment less efficient.
Industry Member Associations - Represent and advocate for industry interests	Our members need support in adapting to new regulations and industry practices, but it's challenging to provide consistent guidance.
Environment and Human Welfare Organisations - Advocate for environmental protection and human rights.	It's difficult to hold companies accountable for their environmental and human rights practices without clear information.
Standards Organisations - Develop and maintain industry standards.	It's challenging to keep our standards relevant and ensure they are adopted consistently across the industry.
Accreditation Bodies and Certifiers - Provide certification and accreditation services	We need a reliable way to verify that companies are truly adhering to industry standards and ethical practices.
Transport and Logistics Providers - Manage the movement of goods.	We need to track shipments accurately and ensure timely deliveries, but our current systems lack the necessary transparency.
Financial Institutions - Provide financial services and investments.	We need to assess the risks associated with our investments, but it's hard to get clear information about companies' supply chains.
Software Developers - Develop software solutions to support transparency.	We want to create solutions that meet market needs, but it's hard to anticipate what businesses require for supply chain transparency.
Consultants & Advisors - Offer various advice services to businesses.	Our clients need help complying with new transparency regulations, but it's difficult to offer the right services without clear guidelines.

Business Case for Industry.

In today's global marketplace, commercial incentives drive business action. With regard to sustainable business practices and products, there is a maturity trend in the way businesses think about value.

• Historically sustainability was a marketing exercise that focused primarily on green labeling to promote sales. This led to an explosion in green-washing and precipitated a race to the bottom of devalued incentives.
• Currently the green-washing explosion has led to a similar dramatic increase in company-level and product-level disclosure regulations to counter green-washing and to support national net-zero promises. For most businesses today, sustainability has moved from a marketing concern to a risk and compliance concern. UNTP has much to offer in support of organizational compliance and due-diligence obligations.
• In future more and more organisations are likely to follow today's leading organisations in placing sustainability at the front and center of their business strategy, profitability, and brand value. UNTP can offer the value chain transparency at scale so that brands can be confident in the implementation of sustainability strategies.

At a high level adopting UNTP offers several key benefits:

• Supply Chain Optimization : Detailed supplier data allows for informed selection of more sustainable and resilient supply options.
• Enhanced Disclosure Accuracy : Access to granular, product-level sustainability data enables precise reporting and provides the key information needed for organisations to select supply so that their year-on-year sustainability disclosures demonstrate a clear improving trend.
• Reputational Risk Management : Transparency in the supply chain helps mitigate risks associated with unsustainable supplier practices.
• Financial Advantages : The financial sector increasingly rewards strong sustainability credentials with improved terms for trade finance and investment capital.

For more information and templates, please visit the Business Case for Industry. page.

Business Case for Government.

The implementation of the UN Transparency Protocol (UNTP) is expected to yield significant economic benefits for participating nations. While the precise impact may vary based on a country's existing trade infrastructure, regulatory environment, and level of digitalization, there are several opportunities for improvement.

• Trade cost reduction : Implementation of the UNTP is projected to reduce trade costs through the standardisation and digitization of processes. This includes streamlining customs clearance, documentation, inspections, and other administrative procedures.
• Enhanced Revenue Collection : Improved compliance and reduced fraud, facilitated by the UNTP's transparency measures, may lead to more effective revenue collection from customs duties and taxes.
• Facilitate Trade Policy Development : Receiving granular data and attributes of what gets in and out of the country and being able to aggregate that data can help policy makers in shaping policy in a more targeted way to enhance their countries competitiveness.
• Foreign Direct Investment (FDI) : Nations adopting the UNTP may become more attractive to foreign investors due to increased efficiency and predictability in trade processes.
• Supply Chain Resilience and Competitiveness : The real-time data and transparency provided by the UNTP can enhance the resilience of supply chains to disruptions and improve overall competitiveness in the global market.

The realisation of these benefits may depend on several factors, including:

• The nation's initial conditions and existing trade barriers
• The extent and effectiveness of UNTP implementation
• Complementary reforms in areas such as infrastructure, governance, and technology

The UNTP is supported by UNECE policy Recommendation 49 - traceability and transparency at scale that defines specific recommendations for member states that wish to reap the economic benefits of increased supply chain traceability, transparency, and trust.

For more information and templates, please visit the Business Case for Government. page.

Community Activation Program.

Supply chain actors are often reluctant to proceed with a specific initiate like UNTP unless they have some confidence that others in their industry are doing the same. There are not only obvious interoperability benefits from industry wide adoption but also cost benefits. For example, it is often the case that a small number of commercial software platforms are commonly used by larger numbers of businesses in a given industry and jurisdiction. So a software vendor that implements UNTP once will benefit all it's customers. Additionally there are often a few standards and a few certifiers that are common to an industry and country. Finally, when a large community is willing to act together, there will often be financial incentives from governments and/or development banks that can assist with initial funding. In short, there are many reasons to approach UNTP implementation at a community level.

The Community Activation Program (CAP) is a methodology and business case for a community level adoption of UNTP including a tool for financial cost/benefit modelling at community level. The CAP is an ideal vehicle for existing industry member associations to bring new value to their members by supporting their connections into global sustainable value chains.

For more information, please visit the Community Activation Program page.

Value Assessment Framework.

Once a community or individual implements UNTP and transparency data starts to flow at scale, it will become important to continuously assess the actual value that is realised. Dashboards and scorecards that measure key performance indicators will energise ongoing action and provide valuable feedback at both community and UN level. Therefore the UNTP defines a minimal set of KPIs that each implementer can easily measure and report to their community - and which communities can report to the UN so that global impact can be measured and mapped to the 169 specific targets defined by the 17 UN Sustainable Development Goals.

For more information, please visit the Value Assessment Framework page.