Blueprint for business leadership on the SDGs: A principles-based approach
Business cannot thrive unless people and planet are thriving. This publication presents a framework for the next generation of business leadership with the intention to foster contribution to the United Nations Sustainable Development Goals at scale.
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OVERVIEW
Business cannot thrive in a world of poverty, inequality, unrest and environmental stress, and so it has a vital interest in ensuring the 2030 Agenda for Sustainable Development (2030 Agenda) is delivered. This includes ensuring that the world is on a path to meet all 17 Sustainable Development Goals (SDGs) that form part of the 2030 Agenda.
This report provides a framework for companies aiming at becoming SDG leaders through utilising available opportunities while contributing to the achievement of SDG targets.
The Blueprint sets forth three key steps contributing to the evolution of business leadership as it relates to the SDGs (prioritise, act, and learn) and expands on the distinguishing qualities of an SDG leader (intentional, ambitious, consistent, collaborative, and accountable).
Each SDG is subsequently reviewed and guidance is provided on the role that businesses can have on addressing those SDGs, the actions necessary to satisfy the five aforementioned leadership qualities, and best practice examples. For each goal, the Blueprint provides a self-assessment map (‘Do your actions satisfy the Leadership Qualities?’) to help companies and business leaders evaluate their level of contribution towards the SDGs, essentially offering guidance to leading practices.
In addition, the report provides clear links between the value of achieving each SDG for both societies and businesses, making a strong business case for the importance of each SDG.
Furthermore, for each SDG, the Blueprint lists important references, resources, reports and frameworks that can assist readers gain a better understanding and further knowledge around the 17 goals.
Overall, the report provides useful and detailed guidance for businesses wishing to commence or further develop their sustainability journey. The Blueprint acts as a comprehensive guide for all business leaders, providing invaluable insights on the importance of achieving the SDGs, the benefits to businesses and actions that companies can adopt to align their operations with the goals.
KEY INSIGHTS
- The SDGs are inherently interconnected; action taken toward one SDG can support or hinder the achievement of others and identifying and addressing these interconnections can help business build holistic and systemic solutions that amplify progress and minimise negative impacts.
- Business opportunity and impact on the SDGs are not mutually exclusive – they can go hand in hand. Estimated at US$12 trillion worth of savings and revenues by 2030, the SDGs present great opportunities for businesses. The following provides business case support for each SDG:
- Goal 1: Ending poverty and greater prosperity means a healthier, wealthier, and more able population that will provide companies with the customers, suppliers, and employees that are needed for sustainable growth.
Goal 2: Businesses can benefit from ending hunger as it allows them to access new and previously underserved markets such as increased demand due in high population growth areas and reducing food waste to improve bottom lines. - Goal 3: Leadership on health and well-being can yield significant returns for businesses that capitalise on trends such as income growth and improved accessibility.
Goal 4: Business leadership in advancing quality education can boost profitability, employee retention, and quality of work. Having a skilled and well-educated labour force to draw from is an advantage for any business as it can bolster innovation and growth as well as attract the best talent. - Goal 5: By supporting gender equality, businesses can unlock vast amounts of economic potential as research suggests that gender diversity helps business perform better. Businesses would find themselves with more productive labour, higher levels of innovation and, a more stable, inclusive and equitable climate.
Goal 6: The case for business leadership on water issues is supported by the key role water resources play in production across industries as over 80% of all jobs globally are dependent on sustainably managed water resources and related services. - Goal 7: Improving access, efficiency, and sustainability in energy supply around the world provides a significant market opportunity for business. Energy efficiency and low-cost renewable energy sources offer cost reduction opportunities for businesses in their own production activities while powering new communities with renewable energy technology supports complementary markets for business products and services.
Goal 8: Businesses have much to gain from providing decent work, as it creates the conditions for healthy, satisfied employees who are more productive, innovative, and loyal. A business that is committed to supporting good working conditions also attracts talent, increases retention, and fares better in competitive markets. - Goal 9: The transition to a green, resilient industrial and infrastructure base globally represents a significant investment opportunity with large rewards for businesses that can position themselves at the leading edge of the sectors that must deliver it.
Goal 10: Reducing inequalities benefits businesses as it helps create a more stable and predictable business environment. It also introduces greater diversity of thought into the workplace, boosting innovation and profitability. Economic research shows that reducing income inequality boosts economic growth. - Goal 11: A concerted effort to improve the sustainability of communities will necessitate investment across a range of sectors including transport, energy, waste management and recreation. Benefits of more sustainable cities and communities include a healthier more productive work force, and improved labour market functioning and market access.
Goal 12: Companies with resource intensive production processes can experience substantial reductions in production costs. While increased consumer demand and government regulation means that companies can gain competitive advantage by supplying sustainable products and services. - Goal 13: It is essential that businesses manage financial, regulatory, and reputational risks in their own operations and supply chains from climate change impacts. In addition, there is a large and growing market for climate change compatible technologies and services. A sizeable opportunity to deliver climate-related investments exists, as well as demand for climate-related investments led by the Paris Agreement.
Goal 14: Maintaining healthy ocean environments is a fundamental precondition for businesses to operate in the long term, and addressing the current challenges provides a significant businesses opportunity. - Goal 15: Healthy natural ecosystems are foundational to many business activities and caring for them can deliver huge benefits to companies. Forests and other highly biodiverse and carbon rich ecosystems have an irreplaceable role in air purification and carbon sequestration, which improves health outcomes for workers and boosts economic productivity.
Goal 16: There is a strong interdependence between business success and the sustainability of the societies in which they operate. An operating environment which is governed by the rule of law provides the basis for commercial certainty and long-term investment, growth, and sustainable development for all.
Goal 17: There are significant revenue opportunities and costs savings from business practices that integrate respect and support for human rights and protection of the planet.
Actions to take
ESG issues
SDGs
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- General Sustainable Development Goals
- GOAL 01: No Poverty
- GOAL 02: Zero Hunger
- GOAL 03: Good Health and Well-being
- GOAL 04: Quality Education
- GOAL 05: Gender Equality
- GOAL 06: Clean Water and Sanitation
- GOAL 07: Affordable and Clean Energy
- GOAL 08: Decent Work and Economic Growth
- GOAL 09: Industry, Innovation and Infrastructure
- GOAL 10: Reduced Inequality
- GOAL 11: Sustainable Cities and Communities
- GOAL 12: Responsible Consumption and Production
- GOAL 13: Climate Action
- GOAL 14: Life Below Water
- GOAL 15: Life on Land
- GOAL 16: Peace and Justice Strong Institutions
- GOAL 17: Partnerships to Achieve the Goal