WHITE PAPER

Are your sustainability goals a benefit or threat?

UN’s Sustainable Development Goals provide opportunities for companies to use corporate communications to provide clarity for clients.

Much has been said about our journey to reverse climate change, help others out of poverty and create a fair environment for all. This is the biggest challenge to face our generation, and at times it’s been difficult to know just where to start.

The United Nations’ Sustainable Development Goals seem to be a break-through for companies, who now have a framework to demonstrate, how they will face the global megatrends that affect us all. In our corporate communications work we’re seeing the UN’s goals provide clarity, direction and inspiration for many clients. By comparison, it exposes the businesses who don’t have a resolute strategy and could suffer as consequence.

In this whitepaper we will put sustainability in context, describing megatrends, the impact the UN’s goals are having on business strategy and the improvements in corporate reporting. You will also learn how you can motivate staff, to drive your own sustainability strategy.

There’s a call to action in the air. You can’t tune into the news without hearing about the environment, demands for equality, or fairer conditions for the underprivileged. Is it due to expanding communication channels? Is it a generation thing? Or has the world’s collective conscience kicked in and said enough is enough? Probably all of these reasons. Naturally we look to government to solve this, but as economies grow and companies become more powerful, society is turning to businesses for answers and action.

Momentum is building

The arguments for sustainability are a no-brainer. But the challenges seem so overwhelming, that our personal efforts feel like a drop in the ocean. Television images of factory towers billowing pollution, cut with icebergs collapsing into the ocean are so common, they’ve become visual wallpaper, something that we are almost numb to.

From time to time a message cuts through, providing us with a narrative that we can relate to. Former Vice President, Al Gore’s “An Inconvenient Truth,” seemed to break through the malaise. It helped to shape the climate movement we know today, having a tremendous impact on the uptake of solar power, initiatives to improve carbon emissions and judging by all the Tesla’s I see in Norway, it’s accelerated investment in electric cars.

The BBC’s Blue Planet II, televised scenes of fish desperately drowning amongst discarded plastic. This five-minute sequence of Sunday night television, galvanised people overnight to scrutinise their use of plastics, and business responded. UK Supermarket, Waitrose, has recently opened an experimental store, trialling packaging-free shopping, where customers buy loose products and refill their wine bottles. This is a direct result of that famous five minutes of footage.

These vivid examples have cut through the apathy, and rallied joe public to demand more of the brands they support. We’ve reached a tipping point, where there is a huge desire for change, only matched with the overwhelming scale of the problem. Until someone figures out how to break down the problems, define the changes that need to happen and measure the results, progress will be sluggish.

The breakthrough

So it was with welcome enthusiasm, that we saw many of the companies we work with, adopting the United Nation’s Sustainable Development Goals as a way to formulate their sustainability strategies.

These goals identify 17 specific challenges from poverty, to inequality, to climate change, with the ambition to end them by 2030. The goals were launched only two years ago, but we’re witnessing many clients readily adopting these guidelines as a way to demonstrate the profound changes they are making to their businesses. Of course, companies have had these issues on their radar for a long time. Corporate Social Responsibility has been around for decades, but it seemed too open for businesses to interpret in their own way, it lacked a universal standard to make any collective impact.

UN’s 17 sustainable development goals

The key word now is “sustainability” itself. Words evolve over time and take on new meaning. In this context, sustainability means the ability of a business to adapt and compete, against the influence of global megatrends. To date businesses haven’t taken their responsibility in the social scheme of things, as seriously as they might. Ethics might seem like a basic business imperative, (anyone remember Lehman Brothers?) Now ethics has risen to the fore as a megatrend influencing, how businesses are operated at their core.

Now a company’s approach to sustainability, will indicate its resilience in the face of change. It means that reporting is becoming more transparent and integrated, which in turn provides a stronger indicator to how consumers, staff and investors perceive the overall quality of the company.

Confronting megatrends

Some of the global megatrends might seem far removed from everyday life for you and I, but they have strong repercussions for everybody, here are a few examples:

1. Rapid urbanisation: Half the world’s population live in mega-cities like Shanghai, Tokyo, Mumbai etc. Growth in these areas isn’t sustainable. Which lesser populated areas will rise up to compete with them in the not too distant future?
2. Climate change and lack of resources: As the world becomes more urbanised and prosperous, demand for energy, water and food increases. But we only have a finite amount of natural resources available. Where can we find new alternatives to sustain our fundamental needs for survival?
3. Shift in economic power: Russia is in recession, China is slowing down, and whilst India is currently the sixth largest economy, it could rise to second in the not too distant future. Where should business place its focus in future?
4. Social change: In the Western world, people are living longer and yet having less children. This will put more pressure on an aging society and a younger workforce with specialist skills. How do we use our wisdom and skills, to support our expected standards of living?
5. Technological innovation: Increase in connectivity has meant that we now have limitless data on consumer behaviour. This already causes concerns over personal security, but how can it be used to create something good?

These are serious questions that will affect many companies in the foreseeable future. We’re seeing the UN’s sustainable development goals becoming a common blueprint, touching all part of business strategy and in some cases, influencing a review of the whole business model. Here are some of the knock-on consequences as a result of the uptake.

Strengthening local economies

Businesses are encouraged to target opportunities at a local level to support communities, build solid infrastructure and drive financial performance. One of Mission’s clients, KONGSBERG, chose to build their ambitious satellite station in Svalbard, the remote area in northern Norway.

Whilst it might not seem the most “local” of locations, Svalbard is one of the best sites in the world to receive satellite data. Subsequently over 30 countries buy data from them. At the same time the local mining community was in decline, meaning high unemployment and uncertainty for the people living there. With training, the men and women of Svalbard now prosper, as part of one of the fastest growing industries. KONGSBERG has responded to number 8, 9 and 11 of the UN’s sustainability goals, bringing growth to the community and their business.

Assessing investment risk

Investors are now looking at the bigger picture, acting on non-financial information in their review process. As a result, the companies using the UN’s sustainable development goals to demonstrate the viability of their strategy, present themselves as a more favourable prospect.

It’s not too long ago, that the aviation industry looked like the pinnacle of a progressive society, and a key component in the engine of international business. Now, with its use of fossil fuels and extraordinarily high co2 emissions, the industry is under scrutiny. Equally, the highly competitive nature of the industry, means many airlines are not that profitable. If airlines don’t show more determination to support sustainable goals, we could see this once progressive industry, suffer from lack of investment and public support.

Alternatively, Virgin’s Hyperloop One, aims to transport passengers at the speed of a plane, with the convenience of a metro, using clean energy. The high-speed maglev capsule, recently raised US$172 million to further its development. The venture contributes directly to goals: 7,9,11,12,14 and indirectly to many others. Admittedly it sounds far-fetched, but clearly not to investors.

Sustainability attracts green money

Repairing environmental damage, improving education and growing communities across the world isn’t going to be cheap. The UN’s sustainability goals, have helped investors understand and organise investment flows, towards businesses that work within the SDG framework. The World Bank has assigned US$ 23.5 billion to over 100 projects, to help developing countries create ventures, which align with the UN’s goals.

French bank BNP Paribas joined the “Breakthrough Energy Coalition,” which focusses on innovation in the development of clean energy and has been named the “World’s best bank for sustainable finance,” recently committing €135 billion to energy transition ventures.

“We’re committed to creating a better, more sustainable future for our people, planet and communities through the power of sport.” — Nike

Demonstrating purpose

Undoubtably the sustainability goals direct us to higher ambitions, than simply making money. Although without profit, its likely not to happen. What the sustainability goals do is illustrate where a business can have the most impact and inspire a greater purpose for companies to rally around.

Nike has recently amended its original purpose, to reflect the times we live in. On their dedicated purpose website they declare, “We’re committed to creating a better, more sustainable future for our people, planet and communities through the power of sport.” This isn’t some impulsive grab, to score points for political correctness. Nike has always been a purpose driven brand, this move simply reflects a company with its finger on the pulse.

We should acknowledge Nike, for looking beyond the fact that they make sneakers, and view their role as more profound and influential. Sport is one of the things that connects communities and countries, this plays strongly to the UN’s goals of health, wellbeing, education and equality for all. This higher ambition (purpose), can be the very thing that separates a leader from a follower, attracting all the benefits of a motivated workforce, a compelling brand, and the increase in value for all stakeholders.

Trouble for those with empty promises

What the UN’s sustainability goals also do, is expose those companies who aren’t with the program. Some leaders may pay lip-service to it with some hollow claims, but because of the structure of the UN’s guidelines, it’s becoming very easy to compare one company against another, with a clear picture of who is making an effort and who isn’t.

It won’t be long before these businesses will be viewed as out-dated in their views, and lack credibility in their promises to deliver. Their brands will decline, they will struggle to attract the best people, and ultimately be seen as a short-term prospect by investors, or even a liability to be avoided.

How to align your workforce with your sustainability goals

Where sustainability goals can have a real impact is employee engagement. People increasingly look to their employer as a power centre, where the collective efforts of the company has a more meaningful influence, than they ever could have as an individual. If you are seen as a genuine force for good in the world, employees are more likely to be committed, work harder and remain loyal.

By incorporating your sustainability goals into business strategy, you demonstrate that the company is in touch with society. This creates a shared ambition, attracts and retains top talent, facilitates easy communication, reduces recruitment costs and creates a strong culture. Here are eight ways to create effective employee engagement:

1. Clarify your goals: People rally around clear direction. When an objective is not specific, goals aren’t realistic, or the end results are vague, so people lose faith. One of the good things about the sustainability goals is that there are 17, so there are certain to be some targets, that align with your business and employee’s aspirations. If it’s not apparent which goals to support, take a poll to involve staff in the decision making, thereby engaging them further.
2. Be visible: Commitment is paramount to getting employees to believe in your ambitions. If they see that this is well-intended, but the initiative lacks substance, staff will see it as insincere and become negative. Therefore, it’s important to make the ambition visible, something you can’t hide from. Give it a name, a term of reference is good for people to connect with. Share your ambitions and progress in social media, using the name as a hashtag. Make posters in the work environment, to inspire discussions over coffee. Keep constant updates appearing in company communication channels. Keeping the spark of good-will alive and kicking is critical.
3. Make it a date: Fortunately, the momentum for change is well underway, with many days in the year dedicated to building awareness of common causes. International Women’s day, World Health Day, Earth Day, National Simplicity Day and of course month-long events like Pride. These dates can help everybody rally around the cause, and make a culture feel connected to the bigger world beyond. Target the events in the calendar year, which align with your strategy and use them as an opportunity to sustain interest in your common goals.
4. Find ambassadors for your cause: Sometimes leaders are too busy to get involved, in every issue within the business. Whilst this is understandable, it can lead to you being distant from people at the front line. If priorities prevent you from participating, find those special individuals who are respected, the ones that people rally around, and delegate the delivery of the goals to them. These chosen ambassadors, can match your energy and drive to get results. The most important thing is to facilitate the program, then stay connected.
5. Match their commitment: Sometimes leaders feel that if they offer time, for staff to pursue personal causes, that should be sufficient. This can be seen as a lack of conviction. To see momentum in any employee engagement program, you have to lead from the front, and push quietly from the back. If staff can’t agree on initiatives they would like to support, suggest some. When staff are afraid of going too far, empower them to push further. If staff successfully generate money for a donation to a good cause, match it with an equal amount from the company.
6. Experience the issues for yourself: I’ve seen many companies suffer from an insular mindset. They see the same people every day, eat at the same table in the canteen and become comfortable inside the walls of the company. One of the opportunities with sustainable goals, is to connect with the outside world, see the challenges you wish to address at a grass roots level, and make a deeper connection to the cause. This could be anything from inviting a speaker from an NGO, or visiting a local hospital, to having a clean-up campaign with your business neighbours. By framing your strategy beyond the walls of the business, you learn more about the real issues and maybe make some new allies for the cause.
7. Share what you learn: Don’t depend on your own dialogue to represent your causes. The media will undoubtably have a constant stream of news, about the same issues. You can use these, to build knowledge about what are sometimes complex issues. Sometimes a message can sound better, coming from another voice of authority. If you see something helpful retweet it, share inspiring TED Talks, Re-blog news stories that add insight. The more you share, the more others will contribute and the more progress you will make.
8. Review and renew: Don’t let the staff forget why you are doing this. The whole reason for engaging in the sustainable goals movement, is to see radical change by 2030. Like any leadership initiative, you will need to review the progress against the original targets and renew your determination.

Our client, Grieg Seafood, is one of the world’s biggest salmon farmers, recognised as a critical food sources for a sustainable future. They often have to partner, with native communities around the world. This means they take sustainability very seriously, to a point where they have integrated their goals into every aspect of their business model.

When they report on their integrated results of their business they correspond with many of the UN’s key performance indicators. Providing motivation, for staff, and deepens cooperation with communities. This level of engagement, not only sharpens the company’s efforts, but reassures investors that Grieg Seafood is succeeding, at every level of a long-term strategy.

“Clearly the UN has put forward a big ambition, it won’t be easy, but change always brings opportunity for those that are willing to adapt.”

Opportunity for brands

Progressive companies look at the UN’s goals as an opportunity, not a hinderance. The sustainable development goals provide a jumping off point, to point the way towards innovation and reposition brands for the future.

As progress is made, prosperity will flourish in traditionally poorer countries, new markets will emerge with new consumers to connect with. In turn, these countries may become a new source of supply, previously unrecognised.

Probably the most important opportunity are young people. They will naturally inherit the mistakes of previous generations. These people (like millennials), will have a strong generational motivation, born into a challenging world that they didn’t ask for. Businesses that practice a clear sustainability program will most likely gain support from a new generation, deeply motivated to improve conditions for their futures.

Clearly the UN has put forward a big ambition, it won’t be easy, but change always brings opportunity for those that are willing to adapt.

You can get an update on the progress of the UN’s sustainable development goals, through Michael Green’s recent Ted Talk.

This article was written by Gary Swindell, and was first published on Mission’s website. Find out what other fascinating issues we write about.