The Sustainable Development Goals (SDGs), also known as the Global Goals. In September 2015, 193 countries agreed on 17 goals and 169 sub-goals at the United Nations General Assembly. Since the goals are to be achieved by 2030, they are also called the 2030 Agenda.
The 17 SDGs are integrated—they recognize that action in one area will affect outcomes in others, and that development must balance social, economic and environmental sustainability.
The SDGs provide worldwide guidance for addressing the global challenges facing the international community. It is about better protecting the natural foundations of life and our planet everywhere and for everyone, and preserving people’s opportunities to live in dignity and prosperity across generations. The 17 goals cover all three areas of sustainable development: ecological, economic and social.
What is the relevance of the SDGs for business?
Different SDGs are directly relevant to different companies and therefore, the first step is to get to know the SDGs with their sub-goals and to understand their importance for sustainable development and their connection to a company’s objectives. The SDG Compass published by the Global Compact provides a good guideline for companies on how to integrate SDGs into their business strategy.
Companies can integrate SDGs into business strategy:
- Pick the goals that matter the most to your organization
All SDGs are important but a business might not have the capability to implement all of them. Therefore, it’s crucial for businesses to understand they don’t need to integrate all goals into action – especially at once – but they should pick the ones that they can have the most impact on.
- Improve awareness of the goals
Companies can integrate the goals as part of their business strategy by ensuring awareness of SDGs reaches different stakeholders. It’s a good idea to include educational material of the goals to employees, shareholders and even customers. This will ensure the goals are at the forefront when individuals take action within the organisation.
- Prioritise employment opportunities
For most companies, the easiest way to tackle some of the goals is through better employment policies. This means becoming an inclusive employer and reaching out to communities that might not generally get the opportunity to participate in the industry – having apprentice opportunities for young people in poor and ethnic minority communities and ensuring the company has a gender balance in terms of employment.
- Examine supply chains
For a number of companies, the big impact will be on how the company selects and manages its suppliers. Even if the company implements green policies at its office, its suppliers might not share the same values. Therefore, it’s essential for companies to integrate the goals into launching partnerships and engage with suppliers that share the same philosophy.
- Boost transparency
One simple, yet effective way to incorporate the goals into your company strategy is simply by enhancing your transparency. Include more information about where, when and how you are sourcing your business materials, what your hiring criteria are, and so on. This will force companies to look at these questions but also make it easier for consumers to make informed decisions.
- Invest in climate mitigation
Climate mitigation is not as costly as many companies assume. Various service providers like Tesco, provide solutions that improve the value of the product in terms of sustainability without it increasing the price for consumers. Another good example is electric and hybrid vehicles. These vehicles were perceived inferior in performance and more expensive than standard vehicles, but this trade-off has never materialised. Consumers are now often opting for these cars because they provide the additional eco-friendly element.
- Focus on long-term goals
Overall, the SDGs are long-term goals and businesses should view them through this lens. It’s important to look at the benefits of diverting some of the profits to a charity for female empowerment in terms of the long-term impact on the business rather than short-term impact.
Key benefits of the SDGs for companies:
Recognising tomorrow’s opportunities: more and more innovations arise from changes in consumer behaviour (e.g. share economy), but also from increasing pressure from social enterprises that enter the market with innovative, sustainable solutions. This can lead to a further development of business processes or products in terms of sustainability, but also to the development of new types of solutions.
Attractiveness as an employer: Especially for young talents, it is of great interest whether and how a potential employer takes its social responsibility seriously. Companies that are strategically and credibly oriented towards sustainability goals have a better chance of convincing these talents to join them.
New partnerships and synergies: Working together with others on the success of the SDGs is a powerful, unifying element
Positive reputation of the company: Communicating the company’s engagement with the SDGs internally and externally – this convinces employees and external stakeholders and turns them into multipliers or advocates.