Leveraging UN Sustainable Development Goals for Corporate Sustainability Planning

In an era where sustainability has transitioned from a buzzword into a business imperative, companies worldwide are seeking frameworks and strategies to integrate sustainable practices into their core operations. The United Nations Sustainable Development Goals (SDGs) offer a comprehensive roadmap for addressing global challenges such as climate change, inequality, and environmental degradation. For businesses, the SDGs not only represent an opportunity to contribute to global efforts but also provide a strategic framework for developing robust sustainability plans that can drive innovation, enhance brand reputation, and open new markets.

Understanding the SDGs in a Business Context

The SDGs comprise 17 goals with 169 targets that cover a broad spectrum of economic, social, and environmental objectives:

While the scope of the SDGs is quite broad, it also means that companies are likely to find areas of alignment between their business operations and several of the goals. Identifying these alignments is the first step in leveraging the SDGs for sustainability planning.

 Steps for Integrating SDGs into Corporate Sustainability

1. Conduct a Materiality Assessment: Begin by narrowing down the list by assessing which SDGs are most relevant to your business operations, supply chains, and stakeholder expectations. This involves conducting a materiality assessment to identify the economic, environmental, and social issues that are significant to your company and your stakeholders. The outcome of this assessment will help prioritize the SDGs that your sustainability plan should focus on.

2. Set Clear, Measurable Targets: Once you've identified the relevant SDGs, the next step is to set specific, measurable, achievable, relevant, and time-bound (SMART) targets. These targets should align with the broader objectives of the chosen SDGs but be tailored to reflect your company’s capacity, resources, and strategic direction.

3. Integrate SDGs into Business Strategy: Integrating the SDGs into your business strategy involves embedding sustainability into the core of your business operations and decision-making processes. This could mean innovating new products or services that contribute to the SDGs, improving efficiencies to reduce environmental impacts, or implementing social initiatives that benefit communities and employees.

4. Collaborate and Partner: Achieving the SDGs requires collaboration across sectors and industries. Companies can enhance their impact by partnering with governments, non-profits, and other businesses to launch joint initiatives, share best practices, and leverage collective resources. These partnerships can amplify efforts and contribute to the achievement of the SDGs on a larger scale.

5. Report and Communicate Progress: Transparency is key to sustainability efforts. Companies should report their progress towards achieving their SDG-related targets regularly. This not only helps in maintaining accountability but also strengthens stakeholder trust and enhances the company’s reputation. Utilizing frameworks like the Global Reporting Initiative (GRI) or the Sustainability Accounting Standards Board (SASB) can help in reporting progress in a structured and recognized manner.

Benefits of Aligning with the SDGs

• Reputation and Brand Loyalty: Companies that actively contribute to the SDGs can improve their brand image, attracting customers and investors who prioritize sustainability

• Innovation and Market Opportunities: The SDGs can inspire innovation, leading to the development of new products and services that meet emerging market needs

• Risk Management: Addressing sustainability risks aligned with the SDGs can protect companies against environmental, social, and governance (ESG) risks

• Attracting Talent: Companies committed to sustainability are more likely to attract and retain employees who value purposeful work

• Attracting Mission Aligned Capital: Companies committed to sustainability are more likely to attract values-aligned investors

Public Accountability

While many companies have declared sustainability initiatives, far fewer have publicly aligned their sustainability initiatives to the UN SDGs, reducing the ability to quantify impact and measure accountability. Tangible examples of some of the largest companies in the world who are leading the way in aligning with the UN SDGs include:

Nike

Nike has publicly declared their commitment to several SDGs, including:

• Good Health and Well-being (SDG 3): Nike aims to encourage physical activity and healthy lifestyles among children and communities worldwide. The company supports various sports and physical education programs to foster a culture of health and wellness

• Gender Equality (SDG 5): The company has initiatives aimed at promoting gender equality, including support for female athletes, and gender diversity in its workforce

• Responsible Consumption and Production (SDG 12): Nike focuses on creating products in ways that minimize environmental impact. This includes increasing the use of sustainable materials, reducing waste in the production process, and promoting circular economy principles such as designing products for longevity and recyclability

• Climate Action (SDG 13): Nike has been proactive in reducing its carbon footprint through initiatives like using renewable energy in its facilities, improving energy efficiency, and promoting low-carbon transportation

• Partnerships for the Goals (SDG 17): Nike partners with governments, NGOs, and collaborates with other businesses to amplify its impact on sustainable development

Updates are published annually in Nike’s Impact Report.

Meta

Meta’s efforts to work toward the UN’s Sustainable Development Goals are presented in detail on the company’s website. Some of the highlights include:

• Good Health and Well-being (SDG 3): Aligned with thousands of regional partners, Meta's technology facilitated the registration of more than 100 million people worldwide for blood donation notifications, contributing to a 19% increase in donations from first-time donors at partner sites

• Gender Equality (SDG 5): Meta has actively supported women-owned small businesses and worked to build entrepreneurial and digital skills among women globally. Programs like #SheMeansBusiness have equipped over 1 million women in 28 countries with training and mentorship to grow their businesses on Meta's platforms​

• Decent Work and Economic Growth (SDG 8): Meta's projects that their personalized advertising has supported economic growth for over 200 million small businesses and 10 million advertisers worldwide

• Industry, Innovation, and Infrastructure (SDG 9): Meta collaborates globally to increase access to affordable, reliable, high-speed internet, especially in unconnected and under-connected regions

• Climate Action (SDG 13): Meta has publicly committed to a zero-carbon economy and has maintained net zero GHG emissions in its global operations for the past three years. The company is also committed to becoming water positive by 2030, restoring more water to the environment than it consumes for its global operations

LEGO

While LEGO is a privately held company, they have publicly declared alignment with UN SDGs that make the greatest impact on the lives of children:

• Quality Education (SDG 4): LEGO promotes the integration of children’s play in early childhood development efforts and directs 25% of the LEGO Group’s profits towards providing children access to programs that encourage learning through play

• Responsible Consumption & Production (SDG 12): LEGO is reducing single-use plastics from their packaging, is incorporating more sustainable materials into the production of their core products, and reducing the carbon footprint of bringing their products to market

More of LEGO’s reporting on sustainability efforts can be found in their Impact Report.

Double Bottom-Line

When companies design transparent, measurable policies that work toward the UN’s Sustainable Development Goals, they can contribute to global challenges while simultaneously driving growth, innovation, and competitive advantage. The journey towards sustainability is a continuous process that evolves rapidly, but by leveraging the SDGs, companies can ensure their efforts are both impactful and aligned with global priorities, paving the way for a sustainable future.

Keene Advisors, a Benefit Corporation, offers a wide variety of strategic and financial consulting to help companies navigate their corporate directives, including sustainability mandates. Contact us today for a complimentary consultation.

Disclaimer: The content of this publication has not been approved by the United Nations and does not reflect the views of the United Nations or its officials or Member States. This commentary is intended for general informational purposes only. Keene Advisors does not render or offer to render personalized financial, investment, tax, legal or accounting advice through this report. The information provided herein is not directed at any investor or category of investors and is provided solely as general information. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action. Keene Advisors does not provide securities related services or recommendations to retail investors. Nothing in this report should be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product.