Global sustainability challenges demand globally coordinated efforts. The UN Sustainable Development Goals (SDG) are a clear attempt at a decisive framework that looks to help with this. In this article, we share an overview of the roots and principles of the SDGs, as well as practical guidance for businesses seeking to contribute to this global effort.
The United Nations Sustainable Development Goals (SDGs) are a set of 17 global objectives that aim to address the world’s most pressing environmental, social, and economic challenges.
Adopted by all UN member states in September 2015, the SDG’s build on the successes of the Millennium Development Goals (MDGs), which were composed in 2000 and aimed to tackle poverty, hunger, disease, and other global sustainability challenges.
The SDGs address a wider range of economic, social, and environmental issues and are intended to guide global development efforts until 2030.
What are the Sustainable Development Goals?
The SDGs cover a wide range of sustainable challenges that extend across environmental, social, and governance domains, from poverty reduction and sustainable cities, to climate change mitigation and education.
How do the SDG’s benefit businesses?
The goals provide a model for businesses to align their operations with global sustainability efforts in addressing pressing challenges by integrating them into their corporate strategies. As well as contributing to a sustainable future, businesses can also unlock new opportunities for growth, innovation, and profitability.
Why are the SDG’s important for businesses?
The SDG’s set out to help improve the state of the world by addressing challenges that exist today. But, achieving these goals not only presents a global good, but also offers concrete business benefits, such as:
- Improved reputation: Businesses that prioritise sustainability and contribute to the achievement of the SDGs can enhance their reputation among an ever growing community of customers, investors, and other stakeholders. This can lead to increased loyalty, improved brand value, and a competitive advantage in the marketplace.
- Cost savings: Many of the SDGs are related to reducing waste, improving efficiency, and lowering costs. By adopting sustainable practices, businesses can reduce their environmental impact and save money in the process.
- Innovation: Pursuing the SDGs can drive innovation by challenging businesses to find new solutions and technologies that promote sustainable development. This can lead to new products, services, and business models that offer a competitive advantage.
- Compliance: As governments around the world adopt regulations and policies in line with the SDGs, businesses that fail to comply may face legal and financial consequences. By aligning with the SDGs, businesses can ensure they remain compliant and avoid potential risks.
- Employee engagement: Employees, particularly younger generations, increasingly want to work for companies that prioritise sustainability and contribute to social and environmental causes. By aligning with the SDGs, businesses can attract and retain top talent and improve employee engagement and satisfaction.
Examples of SDG-aligned business practices
The UN SDGs cover a wide range of areas, offering businesses plenty of opportunities to align their practices with their goals. Here are six examples of business practices that can be considered aligned with the SDGs:
- Sustainable supply chains: Businesses can work to ensure their supply chains are environmentally and socially responsible. This includes using sustainable materials, reducing waste, and ensuring fair labour practices.
- Renewable energy: Businesses can invest in renewable energy sources such as solar, wind, and hydroelectric power to reduce their carbon footprint and contribute to the SDG 7, which aims to ensure access to affordable, reliable, sustainable and modern energy for all.
- Circular economy: Businesses can embrace the principles of the circular economy, which aims to keep resources in use for as long as possible by reducing waste and increasing the reuse and recycling of materials. This contributes to the SDG 12, which aims to ensure sustainable consumption and production patterns.
- Community engagement: Businesses can work with local communities to create shared value and promote sustainable development. This could include supporting local initiatives such as education programs, health clinics, and infrastructure projects.
- Diversity and inclusion: Businesses can foster a culture of diversity and inclusion, ensuring that all employees are treated fairly and have equal opportunities for advancement. This aligns with the SDG 5, which aims to achieve broader gender equality.
- Sustainable finance: Businesses can use their financial resources to support sustainable development, such as investing in companies that prioritise sustainability or issuing green bonds to fund renewable energy projects. This contributes to the SDG 17, which aims to strengthen partnerships for the achievement of the goals.
Companies actively working towards the SDG’s
While companies who are working towards generally sustainability goals will by default be working towards the UN SDG’s, below are some of the largest companies who have committed specifically to benefit them.
Unilever
Unilever has worked with the SDGs since they were conceived, even helping to ensure the voice of business was heard. The multinational consumer goods company committed to achieving all 17 SDGs and is focused on reducing its environmental impact, improving the livelihoods of its employees and suppliers, and promoting sustainable consumption.
Ikea
Ikea has a sustainability strategy that is aligned with the SDGs, with a focus on promoting sustainable materials, reducing waste, and increasing renewable energy use. The company has also worked with refugees through its skills for employment programme, IKEA social entrepreneurship programmes, and charity partnerships.
Patagonia
Patagonia is a leader in sustainable fashion and has made a commitment to using environmentally responsible materials and production practices. The company has also launched several initiatives aimed at promoting environmental conservation and sustainability.
Towards the end of last year, the outdoor clothing brand made a splash when it announced it was transferring ownership of the business to a charitable foundation dedicated to saving the planet.
Microsoft
Microsoft is committed to achieving several of the SDGs, including SDG 4 (quality education) and SDG 8 (decent work and economic growth). The company has launched several initiatives aimed at promoting digital inclusion and providing training and education opportunities for underserved communities.
Additionally, by 2030, Microsoft has committed to be carbon negative, water positive, and a zero-waste organisation.
How can your business get involved in the UN SDGs?
For companies wanting to advance the SDG agenda, the job starts by acting responsibly – incorporating the Ten Principles of the UN Global Compact widely into strategies and operations, and understanding that good practices or innovation in one area cannot make up for doing harm in another.
The UN Global Compact, a voluntary initiative taking steps to support UN goals, has a toolbox available to help businesses embed the principles into their operations.
For businesses already reporting on their sustainability or looking to do so, frameworks such as the Global Reporting Initiative (GRI) or CDP offer support in setting and achieving sustainability goals. These frameworks provide businesses with a structured approach to measuring and reporting on their sustainability performance, allowing them to better understand their impact on the environment and society, and identify areas for improvement.
By working with these frameworks and embedding sustainability principles into their operations, businesses can not only contribute to global efforts to address pressing issues such as climate change, poverty, and inequality, but also drive innovation, build resilience, and enhance their reputation and competitiveness in the long term.
