The Importance of SDGs for Business: The Benefits and Implementation Strategy
The Sustainable Development Goals (SDGs), or Global Goals, are the outcome of a historic global agreement among 193 countries outlining the critical challenges and priorities for humanity and the planet to be achieved by 2030. Achieving these goals necessitates united efforts from governments, civil society, the private sector, and committed individuals and communities.
Approximately 10% of the world's population lives in extreme poverty, and 750 million people are still illiterate. Private sector companies can help irradicate these issues and work to achieve the SDGs since they have the resources to drive investments and innovations in the space. In this blog, we will explore why SDGs are crucial for businesses and the benefits they can bring.
Why are SDGs Important for Business?
Strategic planning: The SDGs can help businesses set their strategic purpose in a way that increases relevance and value for shareholders. In Europe, 49% of surveyed companies currently use the SDGs for performance targets as they offer valuable insights for strategic planning and addressing risks and opportunities. The UN Global Compact's local networks are multi-stakeholder platforms set up to achieve the SDGs. These groups can also help businesses make strategic decisions by finding allies, fostering collaborations, and exploring new market opportunities to achieve sustainable growth.
Unlocking new market opportunities: According to the BSDC, embracing the SDGs can unlock $12 trillion in market opportunities worldwide. Developing countries hold over 50% of these opportunities, driven by population growth and increased spending power. Through innovative solutions, businesses can tap into these markets by offering socially and environmentally responsible products and services, clean energy, affordable healthcare, and inclusive education.
Fostering innovation and resilience: Embracing the SDGs encourages businesses to think innovatively and develop sustainable practices through improved efficiency, reduced waste, and optimized resource management. Companies that integrate sustainability into their operations can enhance their resilience and adaptability in a rapidly changing world.
Attracting and retaining talent: Today's workforce seeks purpose-driven employment, and by aligning with the SDGs, businesses can attract top talent passionate about making a positive impact. Employees are likelier to engage with and be loyal to companies committed to sustainable development, fostering a productive and motivated workforce.
Recognizing the importance of the SDGs in business and integrating them into their strategies, organizations can drive positive change, contribute to global sustainability, and unlock new growth opportunities.
Examples of Successful Integration of SDGs
Numerous companies have successfully integrated the SDGs into their operations and experienced positive results:
Unilever
One notable example is Unilever, a global consumer goods company that has aligned its Sustainable Living Plan with several SDGs, focusing on health and hygiene, sustainable sourcing, and reducing environmental impact. The implementation of USLP (Unilever Sustainable Living Plan) is actively reducing expenses, mitigating risks, fostering expansion, and creating new jobs.
Patagonia
Patagonia, an outdoor clothing and gear company, has embraced the SDGs by adopting responsible manufacturing practices, promoting fair trade, and advocating for environmental conservation. Through its commitment to sustainability, the company has cultivated a loyal customer base that aligns with its values and supports its mission. As of 2020, 66% of Patagonia’s materials with water-repellent chemistries are PFC-free, eliminating the toxic and environmentally hazardous compounds from its manufacturing processes.
How can businesses integrate SDGs into their operations?
Integrating Sustainable Development Goals (SDGs) into business operations can present various challenges. Financial barriers often arise as sustainable practices may initially require upfront investments or higher operational costs. This can be particularly daunting for small and medium-sized enterprises (SMEs) due to limited resources and difficulty accessing financing.
However, despite these challenges, businesses can overcome barriers and successfully work towards achieving the SDGs by following these steps:
Develop a clear business case: Emphasize the economic benefits and long-term value of embracing the SDGs. Illustrate how sustainability practices can lead to cost savings, improved efficiency, and an enhanced reputation.
Set achievable targets: Break down the SDGs into actionable targets that align with the company's operations and industry. Businesses can effectively measure progress and drive sustainable change by focusing on specific goals and integrating them into strategic planning.
Foster collaboration: Engage in partnerships and alliances with other businesses, governments, and non-profit organizations. Leveraging collective expertise and resources can help companies overcome challenges more effectively and accelerate progress toward the SDGs.
Educate and engage employees: Create awareness and educate employees about the importance of the SDGs. Foster a culture of sustainability within the organization by encouraging employee involvement, providing training, and recognizing sustainability initiatives.
Supporting the SDGs is a moral imperative and a strategic opportunity for businesses. Companies that align with the SDGs can unlock economic benefits, improve their reputation, and seize new business opportunities. Despite being presented with challenges while integrating sustainability into their operations, following a few strategic steps, like building a business case, setting targets, collaborating, and engaging employees, helps unlock social impact and heightened performance in the long run.
Are you a company looking to drive social innovation to achieve sustainability?
Futurize can foster collaborations between academic institutions and corporates to help you build innovation programs to develop new ideas and projects centered around achieving Sustainable Development Goals. Get in touch with us today!
