This report is developed by KPMG with the intention of guiding companies on how to report on the United Nations 17 Sustainable Development Goals (SDGs), as well as benchmark own performance against global leaders. The report proposes quality criteria for reporting on the SDGs and illustrates what good SDG reporting looks like based on an analysis of the 250 largest companies in the world. The report consists of three main sections (1) Understanding the SDGs, (2) Prioritising the SDGs, and (3) Measuring the SDGs.

1. Understanding
   • The reporting should convince investors and other stakeholders that the actions towards the SDGs are based on a comprehensive assessment of the business opportunities and risks.
   • The reporting should illustrate leadership and commitment towards the SDGs as part of the business’s long-term strategy. It should be discussed in the CEO or Chair’s message.
   • The reporting should clearly illustrate the company’s impact on the SDGs, both negatively and positively.

2. Prioritisation
   • Companies should identify and focus on the SDGs which are most relevant to their business and where they might have the greatest impact.
   • The reporting should explain the methodology used to identify the SDGs prioritised by the company.
   • The reporting should go beyond including the relevant goals out of the 17 overarching SDGs, it should also disclose which of the 169 underlying targets are relevant to the corporation.

3. Measurement
   • The reporting should identify and set business performance goals that are directly linked to the SDGs.
   • The reporting should disclose the impact on the SDGs in a manner that is SMART: specific, measurable, achievable, relevant, and time-bound.
   • The reporting should define appropriate indicators to disclose its performance on the SMART SDG goals.

The findings in the report show that 40% of the largest companies globally discuss the SDGs in their corporate reporting. 84% of these companies identify which SDGs are the most relevant to their business.

Geographically, large companies in Germany, France, and the UK are more likely to report on the SDGs, with 83% reporting in Germany, 63% reporting in France, and 60% reporting in the UK.

In terms of industry, consumer-facing sectors are more likely to report on the SDGs compared to heavy industry sectors. 58% of large companies in the utilities and automotive sector report on the SDGs, compared to 30% in Industrials, Manufacturing & Metals, and 28% in Oil & Gas.

The most commonly prioritised SGDs, with 55% or more reporting companies, are:

SDG 13 Climate Action

SDG 8 Decent Work and Economic Growth

SDG 3 Good Health and Wellbeing

The least commonly prioritised SDGs, with 26% or fewer reporting companies, are:

SDG 15 Life on Land

SDG 2 Zero Hunger

SDG 14 Life Below Water

1. The Sustainable Development Goals (SDGs) were launched in 2015 by the United Nations. By 2017, 40% of the top companies globally recognized the goals in their corporate reporting. Out of these, 84% acknowledged the SDGs they considered to be most relevant to their company.
2. The report identifies three areas of importance in relation to the understanding of the SDGs:
   (1) Understand and address the business risks and opportunities related to SDG actions.
   (2) Making the SDG reporting part of the business's long-term strategy.
   (3) Report on both the positive and negative impact the company has on the SDGs.
   
3. The report identifies three areas of importance in relation to the prioritisation of the SDGs:
   (1) Focus on the SDGs that are most relevant to the business.
   (2) Report on the methodology used to identify the relevant SDGs
   (3) Not only report on the 17 overarching goals but also address the relevant 169 targets.
   
4. The report identifies three areas of importance in relation to the measurement of the SDGs:
   (1) Set and report on business performance goals that are directly linked to the SDGs.
   (2) Disclose impact in a SMART manner: specific, measurable, achievable, relevant, and time-bound.
   (3) Define appropriate indicators to disclose performance on the SDGs.
   
5. 8% of the top companies globally reported on business cases for action, and 10% set specific and measurable targets related to the SDGs. These areas were identified as having a great potential for improvement.
6. 75% of the companies that report on the SDGs consider their businesses' impact on the goals, however, it is most commonly focused on the positive impact rather than addressing the negative impact.
7. The most commonly prioritised SDGs are Climate Action (SDG13), Decent Work & Economic Growth (SDG8), and Good Health & Wellbeing (SDG3) (prioritised by 55% or more of reporting companies) . Whereas the least prioritised SDGs are Life on Land (SDG15), Zero Hunger (SDG2), and Life Below Water (SDG14) (prioritised by 26% or less of reporting companies) .
8. Only 20% of the companies that report on the SDGs address any of the 169 individual targets.
9. 39% of the companies that report on the SDGs address the global goals in their CEO and or Chair’s message.