SDG Industry Matrix: Transportation
The main purpose of the Matrix is to attract and influence the transportation industry to take measures that drive the Sustainable Development Goals (SDGs). The Matrix provides industry specific ideas and leading examples for each SDG, and outlines opportunities for the industry, as well as society, through shared value.
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OVERVIEW
The Sustainable Development Goals (SDGs) are an aspiring plan of actions designed to tackle the current global challenges by the year 2030. The SDGs are a collection of 17 goals that are applicable globally to all nations and people, attempting to address inequality and leave nobody behind. The goals focus on an array of issues including ending poverty, ensuring sustainable consumption and production, and promoting peaceful and all-inclusive societies. These goals can be accomplished by involving the private sector working in collaboration with government bodies, parliaments, United Nations (UN) systems, local authorities, international institutions, civil society, scientific and academic communities and other people.
The Industry Matrix aims to convert the interest stimulated by the SDGs into strategic industry activities which can grow in scale and impact. This is possible through new innovative approaches, encouraging companies to move into new markets, mobilising new collaborations and increasing participation in existing collaborations. The Matrix focuses on “shared value” which represents coming together of market potential, societal demands and policy action to create sustainable economic growth, prosperity and well-being.
The Matrix explores how organisations within transportation such as air transport, railways, shipping, road transport, public transport and stakeholders, engage in sustainable action for the benefit of the company, society and the environment. Many international transport companies are undertaking initiatives and designing projects to enhance their alignment with sustainable development and improve their risk reduction strategies. For example, the Air Transport Action Group (ATAG) has taken actions to address three significant global climate goals across the air travel industry to improve fuel efficiency. It shows a 1.5% reduction in carbon emissions annually until 2020 and is expected to reduce 50% by 2050, compared with 2005 levels. Their work includes strategies to improve technologies such as lightweight materials, fuel efficient engines and alternative fuels.
The transportation industry provides the efficient mobility of people, goods and materials, and are the principle enablers of sustainable social and economic development by connecting people to basic services, jobs, markets and each other. The biggest opportunities for shared value are:
- Inclusive mobility – expanding affordable access to reliable mobility services, thereby expanding market opportunities.
- Resource efficiency – accelerating the adoption of renewable energy and improve resource efficiency in production.
- Safety and security – collaborate with governments and other stakeholders to improve travel safety and security.
- Transport infrastructure – inform government policies and help design, build and operate effective transportation infrastructure.
For example, to address SDG 9: Industry, Infrastructure and Innovation, the company MAN Group installed a photovoltaic system on the roof of its vehicle production halls in South Africa thereby creating its first carbon neutral vehicle plant. Its bus and truck site runs entirely on regenerative energy saving 860 tonnes of carbon dioxide emissions per year. The photovoltaic system generates up to 810,000 kWh of electricity a year which supplies sufficient energy on site to transfer surplus into the local power grid. In addition, their skylights and new insulation reduce energy consumption, rainwater tanks save water, and wastewater is recycled.
The Matrix invites all stakeholders and governments to come on board to help with funding and implementing actions toward the SDGs.
KEY INSIGHTS
- KPMG international and UNGC have collectively developed six industry matrices which provide industry-specific practical examples and ideas for action for each Sustainable Development Goal. They profile opportunities for companies that are expected to create value for shareholders and society. The six areas are: Financial Services, Food, Beverage and Consumer Goods, Healthcare & Life Sciences, Industrial Manufacturing, Transportation and Energy, Natural Resources & Chemicals.
- The SDG Industry Matrix aims to inspire and inform greater private sector participation to drive inclusive, sustainable prosperity. It assists each specific industry to recognise specific opportunities, providing industry specific ideas for action and practical examples for each relevant SDG.
- Companies in the transportation industry such as air transport, railways, shipping, road transport and public transport, can impose changes to create shared value across all 17 of the SDGs.
- Many companies within the transportation industry have already implemented SDG focused actions to increase their value. These practical examples can help guide further change,
- The most significant opportunities for shared value in the transportation industry includes: providing reliable mobility services for the people and goods; adopting renewable energy and improving resource efficiency in production; improving travel safety and security; and providing efficient transport infrastructure.
- The Industry Matrix incorporates various examples of multi-stakeholder partnerships and collaborations which facilitate sustainable development. For example, UNEP Partnership for Clean Fuels and Vehicles, Global Green Freight Action Plan, Future of Fuels and Sustainable Shipping Initiative.
- Projects and initiatives have been implemented by many associations to help guide sustainable development strategies in the transport industry. For example, the International Air Transport Association, International Chamber of Shipping, International Union of Roadways and International Association of Ports and Harbors.
- The SDGs provide an opportunity for companies to create value for their business and society in four ways: developing products, services, technologies and distribution channels to reach low-income consumers; investing in supply chains which are ethical, inclusive, resource-efficient and resilient; improving the skills, opportunities, well-being and hence productivity of employees, contractors and suppliers; and increasing investment in renewable energy and other infrastructure projects.
- Several trends are making these opportunities more compelling for companies: rapid innovation in new technologies; population is expected to rise in developing countries from 5.9 billion in 2013 to 8.2 billion in 2050; income growth and spending power is expected to increase; and governments, businesses, international financial institutions, UN society and civil society are finding new ways to work together.
- The Industry Matrix builds on the recognition that all companies have a responsibility to comply with all relevant legislation, uphold minimum standards and respect universal human rights.
COMPANIES
Things to learn
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