How to Align Corporate Strategy to the UN Sustainable Development Goals
*originally published in May 2017 by Sustainable Brands
With the United Nations Sustainable Development Goals (UN SDGs) fully coming into force in January 1, 2016, it was no surprise that the session at SB’17 Detroit on Aligning Corporate Strategy and Innovation with the SDGs was packed. Participants were eager to learn how corporations are aligning with the SDGs, what challenges they are facing, and, should they too decide to get with the SDG program, where to start.
Interestingly, the panel only had one corporate representative — Novozyme’s Head of Corporate Sustainability, Claus Stig Pederson. The remaining speakers were leading UN figures: Sue Stephenson, Vice Chair, IMPACT 2030, Sue AllChurch, Chief of Participant Relations & Communications, UN Global Compact and Jose Carlos Ferrer Ávila, SDG-F Secretariat, United Nations Development Programme.
Novozyme has been way ahead of the curve in adopting the SDGs as a guiding framework. Stig Pederson explained that from the company’s perspective, there is “…very little conflict on what is good for the world and good for our business. The environment and sustainability are an integrated part of how we run our business. So in 2012 when we heard the invitation to the private sector to be part of the process [to develop the SDGs], we thought this was a great opportunity…and since then we have only gotten more and more excited.”
The other panelists shared their views on why companies should incorporate the SDGs into strategy, urging those in the room to get on board.
It is good for business: This is the first time designing the SDGs engaged the private sector with over 30,000 companies participating; The private sector represents 90% of job creation in the world; and the assumption was that SDGs would be profitable for companies. This has actually been quantified. If the global goals are successfully reached a savings of $US 12 trillion will be realized.
It ignites employees and activates corporate volunteering: Stephenson, shared, “On the human capital side, while all companies are at different stages in their sustainability strategy, from those just starting to companies like Dow and Pfizer, the 17 goals provide an opportunity to ignite employees and activate corporate volunteering around the SDGs.” There is a great deal to align to and ignite around.
Clear metrics that apply to every country: “The great thing about the goals is that they are like the world’s KPIs [key performance indicators]. If we collectively chase these targets we will create the world we want to live in. We don’t need to think about it or re-strategize. Bright people have created these goals and, for the first time, they apply to every country.” — Sue AllChurch
Assuming companies are on board with aligning to support the SDGs, with 17 goals and 169 targets, where do you start?”
1Identify which SDGs are most material, where you can make the greatest impact or where you have the greatest opportunity.
“Think of them in the same way as you would any other KPIs. Start with the one that is most material, where you can make the greatest impact or where you have the greatest opportunity”, shared AllChurch.
Ferrer Ávila: “For selecting your SDG consider what your company is already doing and where you make your money. Select the set of SDGs that are closest to what you do in your business.”
2Dig into the SDG you are targeting and understand the interplay and integration with other goals. Set your own goals.
Stephenson: “The interplay of these goals is what makes them impactful. It is important to look at what sits underneath them to get a stronger sense of the SDGs. For example, many companies start with education, but a child can’t get a good education if they are hungry. This is where the power lies. If you are working on one, you are working on more.”
3 Measure your impact. Track progress and report to others.
As the person who often sits behind the data for reporting I recognize this is one of the greatest challenges. The SDGs, while promising to have significant adoption, present yet another set of goals and targets that companies need to keep track of and report on. To support this effort the UN Global Compact is creating a tool that monitors and tracks progress on targets underneath each of the goals. The hope is, by working with companies, the Global Reporting Initiative (GRI)and the financial community the full tool — which will be launched in September –will serve as a robust tracking mechanism for the 9000 firms working with the UN Global Compact.
I’ll be anxious to see the integration with GRI, and what consideration will be given to integration with other existing frameworks (CDP, SASB, etc.). As companies struggle to meet the demands of tracking and reporting perhaps the SDGs will present an opportunity for greater integration of environmental across all frameworks?
Clearly we are in the early stages of this journey. It will be exciting to see how what progress is made in the coming year(s). Panel discussion focused on corporations at SB’18 Vancouver perhaps?
Addendum: Since publication this great article outlining a detailed process for alignment came out on TriplePundit
