This guide follows an approach that aligns with the United Nations (UN) Guiding Principles on Business and Human Rights, the Ten Principles of the UN Global Compact, the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises and the related OECD Due Diligence Guidance for Responsible Business Conduct. It sets out the process of principled prioritisation through which a company can identify the priority Sustainable Development Goal (SDG) targets to focus on.

The SDGs are becoming increasingly important also for investors, as they are an articulation of the world’s most pressing environmental, social and economic issues and, as such, act as a definitive list of the material ESG (environmental, social and governance) perspectives that should be taken into account as part of an investor’s fiduciary duty. This approach assists in integrating the SDGs into reporting processes, including those based on the Global Reporting Initiative Sustainability Reporting Standards (GRI Standards).

To achieve this, the guide outlines a three-step process:
Step 1: Addresses the process of prioritisation of impacts and the identification of SDGs for a company to act and report on.
Principled prioritisation is a process by which a company, can prioritise SDG targets based on an assessment of risks and benefits to people and the environment. The steps below describe the process of principled prioritisation.
1.1 Understand the SDGs and their targets.
1.2 Conduct principled prioritisation of SDG targets.
1.3 Define your SDG related report content.

Step 2: Looks at how to set business objectives, select disclosures and analyse performance.
Based on the outcomes of step 1, the company can now identify and align their objectives and strategies to contribute to priority SDG targets. This step provides guidance on setting objectives, selecting indicators to measure impacts and analysing performance against the SDGs.
2.1 Set business objectives
2.2 Select appropriate disclosures
2.3 Collect and analyse data.

Step 3: Offers tips and guidance on reporting and improving SDG performance.
Based on the outcomes of step 2, this step sets out what is needed for putting together the content of the company’s external report and reflecting internally on implementing change.
3.1 Consider the general features of good practice when reporting SDGs.
3.2 Consider data users’ information needs
3.3 Report and implement change.

Effective corporate reporting is key to building trust and aligning investment through transparency and accountability. Corporate sustainability reporting is a powerful stimulus for internal conversation and decision-making with regard to contributing to the SDGs at all levels within a company.

Reporting, however, is neither the start nor the end of a company’s sustainability strategy and implementation. It’s a strategic tool that; engages stakeholders, supports sustainable decision-making processes at all levels within a company, shapes business strategy, guides innovation and drives better performance and value creation, and attracts investments. These steps are not necessarily meant to be sequential; they can be adapted to specific circumstances.

This guide will help companies take stock of their current actions and discover additional priorities to contribute to achieving the SDGs. It aims to provide guidance for all businesses, regardless of size, sector or operating location. It targets reporting practitioners specifically but is also relevant for other professionals involved in corporate sustainability.

1. There is a strong business case for investing in opportunities aligned with the SDGs, including helping investors secure stable returns, better represent the values of their clients and offer sustainable financial products that differentiate them in the marketplace.
2. There are two entry points through which a company can identify priority SDG targets, by assessing the significant impacts linked to its operations and value chain. The first assesses how priority risks to people and the environment relate to SDG targets. The second identifies SDG targets you can best contribute through beneficial products, services or investments.
3. Step 1.3 aids in creating a confirmed set of priority SDG targets related to the company’s significant impacts and stakeholder inputs. The company can define report content, including an assessment of materiality in line with the GRI Standards.
4. Step 2.1 explains how to set out business objectives that identify strategies and specific objectives that go beyond just avoiding harm, to find opportunities to maximise positive outcomes and minimise negative impacts. For example, a product that supports access to electricity for poor populations but has a high environmental footprint in its production processes, has limited value for sustainable development.
5. Step 2.3 outlines how to collect data in relation to the company’s priority SDG targets. This includes establishing new indicators, disclosing the data both as an aggregate and by region and regularly measuring progress.
6. Step 3.1 considers general features of good practice when reporting on the SDGs. The report provides a checklist of what to set out in the report and defines the four C’s of effective reporting. It also highlights the use of other relevant channels to communicate your sustainability strategy and SDG performance, such as company website, social media channels, podcasts, events, product and service labelling, marketing and advertising.
7. Step 3.2 explains that companies must engage regularly with a broad range of stakeholders throughout the reporting process to stress-test the value of the information reported. When reporting consider the information needs of governments, investors, civil society, consumers, and academia.
8. Step. 3.3 assesses whether you are meeting the objectives set in relation to your priority SDG targets, anticipate performance gaps, reflect on your improvements and include this information in your reports.
9. It is important to look for strategic opportunities to collaborate with peers and others to leverage resources, advocate business responsibility, establish sectoral objectives and initiatives or spread the implementation costs of actions to advance the SDGs.
10. In the appendices there is a useful list of international reporting frameworks and indicators.