The United Nations set 17 Sustainable Development Goals (SDGs) in 2015 to address climate change, provide clean water, eradicate extreme poverty and other needs by 2030 with more than 190 countries adopting these. (1)

At the midpoint in 2024, these global goals have developed into a comprehensive framework for business strategy, growth, and risk management.

Companies seeking to embed sustainability can follow the UN’s advice and incorporate the Ten Principles of the UN Global Compact into strategies and operations, with a caveat that good practices or innovation in one area cannot make up for doing harm in another. (2)

The focus is on how businesses can contribute to a healthier planet, stronger communities and more resilient economies, which should also help to ensure long-term profitability and competitiveness.

Long-term success

As the UN advises: “Corporate sustainability starts with a company’s value system and a principles-based approach to doing business. This means operating in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption.

“Responsible businesses enact the same values and principles wherever they have a presence, and know that good practices in one area do not offset harm in another. By incorporating the Ten Principles of the UN Global Compact into strategies, policies and procedures, and establishing a culture of integrity, companies are not only upholding their basic responsibilities to people and planet, but also setting the stage for long-term success.” (3)

The Ten Principles of the Global Compact are derived from the Universal Declaration of Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations Convention Against Corruption.

Tools and resources

The UN Global Compact provides participants with a comprehensive an extensive toolbox (4) and resources (5) that will help your business take action to achieve the SDGs.

Local Networks in over 85 countries provide the platform for business to engage with stakeholders from government, the UN, civil society and communities to map a shared approach. (6)

To align with SDGs, businesses can:

• Set goals: Make sustainability part of core business governance and set targets across all areas.

• Implement sustainable practices: Adopt sustainable supply chain practices that reduce waste and enhance efficiency. Reduce energy usage through efficient buildings and processes.

• Measure, report, communicate: Develop tools and indicators to measure and report SDG performance; identify areas for improvement and engage stakeholders. 

• Assess climate risk and impacts. 

• Engage with stakeholders: Reach out to employees, shareholders, and directors.

• Support environmental policies: Adopt policies to strengthen environmental protection, including clean energy and efficient water usage.

The UN advises that SDGs are a great opportunity for businesses to shape, steer, communicate and report their strategies, goals and activities, bringing a range of benefits. It pinpoints five drivers of financial value:

• Generate new revenue by creating new opportunities for market differentiation, expansion and growth including though innovating to access extremely promising markets which do not yet exist or are in their early days. 

• Employee attractiveness for improved recruitment and retention.

• Increase supply chain resilience by enhancing supply chain sustainability and operational efficiency. 

• Spawn investor interest by increasing attractiveness to a wider range of investors.

• Be “ahead of the curve” in assuring rights to operate by addressing regulatory compliance and managing risks. (7)

Responsible business and investment will be essential to achieving the transformational change embodied in the SDGs. As Heidi Huusko, Head, Environment & Climate at the UN Global Compact advises:

“The SDGs provide a powerful aspiration for improving our world – laying out where we collectively need to go and how to get there. It is clear that responsible business will play a crucial role in fulfilling the SDGs. By doing so, businesses and corporate leaders will not only help build a prosperous, more sustainable world, but also mature new global markets and enter the next era of business.” (8)

Bibliography

1’The 17 goals’ (Accessed December 2024) https://sdgs.un.org/goals

2’Ten Principles of the UN Global Compact’ (Accessed December 2024) https://unglobalcompact.org/what-is-gc/mission/principles

3 ‘The Ten Principles of the UN Global Compact’ (Accessed December 2024)  https://unglobalcompact.org/what-is-gc/mission/principles

4 ‘Your tools to advance the SDGs’ (Accessed December 2024) https://unglobalcompact.org/sdgs/sdg-toolbox

5 ‘Explore our enhanced library’ (Accessed December 2024) https://unglobalcompact.org/library

6 ‘Local Network SDG Action Plan’ (Accessed December 2024) https://unglobalcompact.org/sdgs/ln-action-plan

7’Business and the SDGs’ (Accessed December 2024) https://www.undp.org/sdg-accelerator/business-and-sdgs

8’Align your business with the SDGs in five steps’ (Accessed December 2024) https://unglobalcompact.org/take-action/action/sdg-advocates-letter