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Why Sustainable Development Goals Are Important For Businesses
By Kat Sarmiento
Slowly but surely, public consciousness is shifting toward a wide range of pressing issues that the world is facing. Some may see these concerns as separate and unrelated. However, it’s important to recognize that several, if not all, global issues are interconnected. It would be a waste of effort to address only one issue while letting all the others take a backseat. Doing so may look good on paper and in press releases, but may not be the sustainable development action we need from companies. If businesses want to truly make a difference and enhance their ESG (Environmental, Social, and Governance) strategy, it’s best if they align it with the Sustainable Development Goals.
What are the Sustainable Development Goals?
The Sustainable Development Goals (SDGs) are integrated goals aimed to protect the planet and its inhabitants. Adopted by the United Nations in 2015, these seventeen goals are intertwined, emphasizing that sustainability should not be focused on one aspect, say climate action. These seventeen goals include:
- No Poverty
- Zero Hunger
- Good Health and Well-being
- Quality Education
- Gender Equality
- Clean Water and Sanitation
- Affordable and Clean Energy
- Decent Work and Economic Growth
- Industry, Innovation and Infrastructure
- Reduced Inequality
- Sustainable Cities and Communities
- Responsible Consumption and Production
- Climate Action
- Life Below Water
- Life on Land
- Peace and Justice Strong Institutions
- Partnerships to achieve the Goal
The SDGs were designed by the United Nations with the goal that all people will enjoy peace and prosperity by 2030. The diverse list also shows that development must be holistic and target social, economic, and environmental sustainability in order to achieve true sustainability.
Why are Sustainable Development Goals Important For Businesses?
Given their resources and potential impact in the community, it’s abundantly clear that businesses play a big role in achieving the Sustainable Development Goals. Aside from it being a social responsibility, businesses also have a lot to gain by focusing their efforts on achieving these goals. Here are some reasons why you and your organization should be champions for sustainable development.
Better Economic Opportunities
Perhaps one of the most attractive reasons why companies should adopt SDGs in their business strategies is monetary gain. Finding innovative ways to make SDGs more achievable can create new business opportunities. For example, companies that can offer clean energy solutions can tap a whole new segment of the market, like businesses whose ESG goals include lowering their carbon footprint.
Additionally, being both vocal and active in achieving the SDGs will make your business a more attractive business partner or supplier. Businesses have their own ESG strategy and would want to find a vendor whose values align with theirs. Committing your business to the SDGs can give you an edge over your competitors while helping tackle the many issues troubling our planet.
Attracting the Right Talent
Do you want passionate, driven individuals to join your company? If yes, then that’s another driving factor for you to align your business with the SDGs. A socially responsible company can provide employees with not just a means for living (wages), but a sense of purpose. These professionals are more motivated to do well in their roles knowing that they’re contributing to something worthwhile. They are also more likely to stay and grow in a company that has clear and sustainable goals
Earning Customer Trust
Consumers are just as discerning as prospective employees when it comes to choosing companies to engage with. The attention that global problems are getting is not lost on consumers. They, too, are becoming more conscious of their role in achieving the SDGs. This includes supporting socially responsible corporations. The modern consumer has access to abundant information and is savvy enough to see through empty promises of corporate social responsibility and buzzwords. Don’t just invest in communicating how your business is helping achieve the SDGs; make sure you’re actually putting in the time and resources to do so. Doing so is crucial if you want to build a brand that your target consumers will want to support.
Future-proofing Your Organization
Most, if not all, of the Sustainable Development Goals can help secure your company’s future. Helping to achieve these goals is in your best interest if you want to continue your business in the long run. For example, providing inclusive and decent work will help you improve your employee retention rates and mold the next batch of socially responsible leaders in your company.
Working to achieve the SDGs means you’re practicing risk management. The growing attention that global issues are getting is changing and will continue to change the business landscape. To turn the SDGs into reality, new business regulations may arise. Non-compliance can mean costly penalties for your company and a negative hit to your brand equity. Additionally, having the SDGs as additional guiding principles can help you avoid questionable business practices. They can act as your north star, making sure your business strategies are ethical and aligned with global standards. This way, you’re not just trying to be a good business; you’re trying to be a good business that lasts.
It’s important to embrace the role that your business can play to help make the Sustainable Development Goals a reality. By adopting the SDGs, your business can attract the best talent and gain competitive advantages while creating positive impact.
