SDGs & Business
The SDGs provide an aspirational framework to translate global needs and ambitions into business solutions, which are estimated to be worth $12 trillion globally.
The SDGs need business transparency, accountability, and action
Even though governments will be the ones to fundamentally implement the SDG agenda and framework, the simple fact is that it will not be realized without the private business sector. Take a look below at the critical roles business need to play to achieve global ambitions:
Driving economic growth and employment
The private sector is very well-positioned to improve the lives of individuals in the poorest areas of society worldwide. As per the WBCSD, in developing countries, businesses are responsible for 84% of GDP and 90% of employment opportunities. This gives businesses the scope and the opportunity to deliver on the promise of sustainable and socially inclusive economic development globally.
Developing technology and innovation
The development of breakthrough technology and innovation is a must in order to progress the SDG reality. Fields and sectors that need specific contributions are energy, construction, food, and mobility sectors. Much of this development and innovation will stem from the ongoing creative processes and research and development conducted by companies.
Benefactor of financial investment
According to the United Nations, it has estimated that roughly USD $6 trillion of annual investments are needed to realize the SDGs by 2030. Businesses have a special role to play in meeting these investment needs. Supporting big movements that demand recovery programs that address climate emergencies, collapsing ecosystems, and deficits in social justice can be part of that financial investment.
Mitigating negative impacts of the value chain
Businesses can have huge impacts on realizing the SDGs no matter the industry they are in by mitigating their most outstanding negative impacts on people and the planet. In particular, efforts to ensure corporate respect for human rights throughout the supply chain have the potential to positively impact the lives of some of the most vulnerable individuals in society.
Businesses need the SDGs and vice-versa
While the SDGs need business, this dependence is entirely mutual. Businesses cannot thrive in societies that fail, and long-term success hinges on the SDGs being realized.
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The SDGs represent an ambitious and transformative agenda. Businesses that take an active role in leading this transformation and position the SDGs at the heart of operational decisions will ultimately be better placed to harness emerging market opportunities, manage risks and consolidate an enduring license to operate through to 2030 and beyond.
Doing nothing is a costly option for businesses
With increasing environmental and social changes that have begun to restrain our future growth prospects, failure to take action on the SDGs represent grave business costs. Neglecting to integrate the SDGs poses a long-term regulatory risk and a reputational risk as governments and local authorities move to integrate the SDGs in national policy while stakeholders look to business opportunities to engage meaningfully in the SDG agenda.
High incentives to align business strategies with the SDGs
There are many market incentives for companies who offer SDG innovative technologies and solutions through sustainable and inclusive business models. Moreover, organizations that align themselves and their objectives with the SDGs will also be able to establish a strong "license" to operate, differentiating themselves from competitors and building trust among the authorities, shareholders, and clients.
The SDGs improve transparency and governance
The SDGs create new opportunities for dynamic governance and transparency. Better reporting standards, disclosure, and providing transparent stakeholder information equals better decision-making; improvement in mitigating sustainability risks and impacts, as well as pricing services or products appropriately, all of which are setting the path of the market.
Working together and collaborating is key
Performing business as usual will not achieve the SDGs, nor will the impact by a few individuals or organizations. Partnerships are essential to achieving the Globals Goals as the SDGs will require collaboration across sectors, supply chains, and economic systems, as well as an innovative partnership with governments and civil society.
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A report published by the Business and Sustainable Development Commission describes how pursuing the SDGs could unlock USD $12 trillion in new market opportunities per year by 2030, generating more than 380 million jobs in the process.
380 million new jobs
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$12 Trillion
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Investing ambitions becoming aligned with the SDGs
There are increasingly strong signals that companies which demonstrate having a positive impact on the SDGs ultimately stand to enjoy a range of benefits when it comes to access to capital. Many of the world’s largest institutional investors see the SDGs as a key framework to serve the growing demand for impact investments. They are increasingly seeking to align their portfolios with the ambitions of the SDGs by channeling investments into organizations that can demonstrate robust SDG impact.
Integrating the SDGs enhances risk management
Integrating the SDGs into business strategy and operations can protect an organization against several risks.
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Operational risks: Businesses need to have plans in place to mitigate the risk of feeling the impacts (environmental change, governance, etc) more acutely. Taking steps to address the SDGs is also necessary to safeguard future business performance.
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Regulatory risks: Regulations imposed by governments to reach the SDGs, such as costs on greenhouse gas emissions and other unsustainable business practices could see companies that do not comply, risk paying a price or their licenses.
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Reputational risks: Stakeholders are becoming more conscious about the importance of the Global Goals. Businesses that fail to take action, or report on their progress, risk long-term reputational damage.
What can an individual do to drive sustainable action?
1. Make The SDGs Part Of You
Stay up to date with the sustainable development agenda, campaign, and the Goals that are most relevant to you.
2. Make It Personal
Determine how your individual actions, both in your professional and personal life contribute to the SDGs, and the changes that you can make to play your part in the transformation that is needed.
3. Spread The Word
Engage with your customers, colleagues, friends, and family on the SDG agenda, and the importance of acting sustainable now.
What can a business do to drive sustainable action?
1. Understand How Your Company Interacts With The SDGs
Determine and understand how your company’s activities translate into economic, environmental, and social impacts in relation to the SDGs.
2. Set Goals
Develop targets and objectives towards enhancing positive and mitigating negative SDG impacts.
3. Make Business The Solution Integrate the SDGs at a strategic level, allowing your organization’s potential to develop new business solutions and lead the transformation to a more sustainable environment.
4. Communicate
Be transparent, accountable, and engage in regular reporting practices around your organizations SDG performance and progress.
5. Develop Partnerships
Engage or start initiatives that drive a broad sample of industries and stakeholders together to tackle systemic issues and power change.
6. Sector-Level Partnerships Come together with colleagues and close networks to create a collective vision for the industry and collaborate to realize sector transformation in line with the SDGs.