The private sector plays a crucial role in achieving the UN’s Sustainable Development Goals (SDGs). The World Benchmarking Alliance (WBA) is developing benchmarks to measure companies’ progress against global challenges, focusing on areas like food and agriculture, climate change, digital inclusion, human rights, and gender equality.

The world faces significant challenges to sustainable development, including poverty, climate change, inequality, and biodiversity loss. These issues require a systems-based approach that considers the interdependencies between different groups and their contexts. WBA has identified seven key systems transformations needed for a more sustainable future: social, agriculture and food system, decarbonisation and energy, circular, digital, urban, and financial system transformations.

The role of business in driving these transformations is crucial. While companies are involved in the SDGs, their contributions are often limited. A shift is needed from simply avoiding harm to actively creating positive impact. Businesses can contribute by adopting sustainable practices, developing responsible technologies, and providing decent employment. Investors also need to consider the broader impact of their investments.

The seven systems transformations

Social transformation

This transformation underpins all others. It emphasises human rights, equality, and empowerment as fundamental to achieving the SDGs. Companies must respect human rights, address inequalities, and promote human development through innovation, decent jobs, and responsible tax practices.

Agriculture and food system transformation

The private sector is key in food production and supply. Businesses can contribute to over a quarter of the SDG targets by prioritising nutrition, environmental sustainability, and producer livelihoods. The current food system faces challenges like undernourishment, malnutrition, obesity, and food waste, which businesses can help address.

Decarbonisation and energy transformation

Energy producers and energy-intensive industries play a pivotal role in decarbonising the energy system. Transitioning to a low-carbon economy requires significant contributions from all industries. Energy is crucial for development but also a major contributor to climate change. Increasing energy efficiency and shifting to renewables are essential.

Circular transformation

This transformation involves shifting to a circular economy where resources are used and reused. It requires changes in product design, resource flows, and value creation. Key industries include materials, capital goods, automobiles, consumer goods, retailing, household products, and technology hardware.

Digital transformation

Digitalisation affects all aspects of life and is a major driver of change. Digital technologies can accelerate the achievement of all SDGs but also pose challenges related to inequality, security, privacy, and trust.

Urban transformation

Business plays a key role in delivering urban infrastructure and services. Sustainable urban growth is crucial for sustainable development, especially in low-income countries. Transforming urban development patterns to ensure inclusivity, environmental sustainability, and resilience is essential.

Financial system transformation

Financial institutions are key decision-makers in resource allocation. They can influence companies’ long-term performance and have a strategic interest in ensuring the SDGs are met. The financial system acts as an enabler of the other transformations described.