The United Nations (UN) Sustainable Development Goals (SDGs) remain a crucial way for businesses to exercise their social and environmental commitments through a globally recognised initiative. When considering SDGs, businesses should consider not only the country or countries they currently operate in but also their supply chain and any potential plans to enter new markets.
What are UN SDGs?
UN SDGs are a call for action by all countries, poor, rich, and middle-income, to promote prosperity while protecting the planet. Each goal has specific targets and indicators to measure progress, addressing global challenges such as inequality, climate change, environmental degradation, and peace. Organisations can use SDGs to align their sustainability strategies with global priorities, adding credibility to their own commitments whilst actively supporting the development of initiatives around the world. They are devised of 17 individual goals outlined below.
Why businesses should support SDGs
SDGs are multifunctional. Outside of supporting projects to combat global challenges, they serve several other purposes that unlock business opportunities:
1. Exercise Corporate Responsibility through Strategic Alignment
Integrating SDGs into business strategies can help companies align their goals with global priorities, fostering long-term growth in collaboration with fellow businesses, Governments and countries. This alignment ensures that business activities contribute positively to society, the environment, and internal targets. By supporting the improvement of these global initiatives, businesses can demonstrate their commitment to environmental, social, and governance (ESG), enhancing their corporate responsibility.
2. Build Resilience through Risk Management
Businesses can identify and mitigate risks related to ESG, reducing any vulnerabilities to disruption by addressing issues such as resource scarcity, social inequality, and climate change. These actions will help to build resilience in your business. Companies that prepare well, align their strategy with SDGs, and are proactive in addressing global challenges are better equipped to adapt to changing market conditions and navigate through uncertainty.
3. Drive Growth through Innovation
Setting science-based targets offers companies numerous benefits, including, resilience against regulatory changes, increased innovation, a competitive edge, reduced risk, meeting stakeholder and client demands, and establishing market leadership, all contributing to sustainable growth and success in a rapidly evolving market landscape.
4. Attract Investment through Stakeholder Engagement
Showcasing your commitment to SDGs will help you build relationships with your internal and external stakeholders, from employees to regulators. Businesses demonstrating this support transparently and responsibly can drive profitability, too. A Label Insights study suggests that 94% of all consumers are more likely to be loyal to a brand when it commits to full transparency. To add to this, vocalising your SDG alignment can reaffirm your environmental credibility with potential investors, increasing your chances of accessing more capital to further support your company’s growth.
Using SDGs to help your business grow
Organisations should not bypass the potential SDGs have to offer. After all, achieving the goals creates at least US$12 trillion in business opportunities worldwide. To optimise support for SDGs, businesses should strategically select three or four goals relevant to their business operations and align them with their internal operations. Actively supporting these initiatives can connect your business model directly to global social and environmental challenges, creating more opportunities for your organisation to grow sustainably.
Find out more and begin to consider what UN SDGs align best with your organisational goals.
