Sustainability
EMBEDDING THE SUSTAINABLE DEVELOPMENT GOALS by Frederik Dahlmann POWER UP YOUR PURPOSE FIVE STEPS TO HELP YOUR FIRM DELIVER THE SUSTAINABLE DEVELOPMENT GOALS
TO THE CORE T
he Sustainable Development Goals (SDGs) were unveiled by the United Nations (UN) as a roadmap to a greener, fairer future.
pursue the SDGs as well as profits. In recent research, my colleagues and I looked at how companies interact with a loose network of emerging for-profit and not-for-profit organisations – including consultancies, investors, financiers, NGOs, and training and development agencies – to become more sustainable. We describe this network as a ‘purpose ecosystem’, which is increasingly driving change in some countries and nudging companies towards adopting the UN’s SDGs as a key influence for their organisational purpose and business strategies. Drawing on this research, my advice to companies can be broken down into five key steps. 1 Prioritise the SDGs Senior leaders need to decide how to prioritise the 17 SDGs, playing to their company’s strengths and values. Companies may agree with all the SDGs, but need to decide which ones could best be furthered through their actions, investments, attention, and resources. Analysis using materiality matrices or stakeholder frameworks can help, as can the UN Global Compact, which has created tools and resources to help companies translate the SDG framework into practices and actions that can be adopted by management. Executives should also review the overlap between the SDGs and firm’s environmental, social and corporate governance (ESG) concerns.
1. Decide which SDGs to prioritise, playing to your strengths. Concentrate on where your
But this crucial plan is in danger of losing its way.
actions and investments will have most impact.
2. Find the commercial opportunities in what society and the environment needs. 3. Align your organisation’s purpose with the SDGs and integrate them into your product development, marketing, and operations.
“Our progress towards the SDGs has faltered and even gone into reverse on some important targets, leaving many behind,” warned UN Deputy Secretary- General Amina Mohammed as she addressed the Arab Forum for Sustainable Development in March. “Unless we act now, all these factors could put the promise to reach the Sustainable Development Goals far out of reach.” That concern is justified. The SDGs aim to improve socio- economic and environmental conditions around the world by 2030. They are essential to avert disaster in the face of global economic and population bigger role in accelerating that process. Many firms are already reassessing their broader purpose and seeking impact beyond the financial bottom line. The young talent they want to recruit desire a deeper purpose in their work, while financiers, equity holders, and governments are eager to avoid the risks of ignoring sustainable decision-making. This creates plenty of external and internal pressure on companies to growth. There has been progress, but not enough. Companies could play a
4. Work with academic institutions, social
movements, NGOs, and regulators to multiply the impact of your actions.
5. Larger companies can work with suppliers to
drive change through their purpose ecosystem.
“Senior leaders need to decide how to prioritise the 17 SDGs, playing to their company’s strengths and values”
Warwick Business School | wbs.ac.uk
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