The success of the 2030 Agenda depends on the active participation of the private sector. Companies actually have a crucial role to play for investments in sustainable projects, the adoption of responsible business practices, and collaboration with governments and organizations.
By embracing the Sustainable Development Goals (SDGs), businesses can enter new markets, enhance brand reputations, build customer loyalty, reduce costs, and position themselves for long-term success. Sustainability is not just an option, but imperative for companies eager to thrive in a changing market.
“Companies are a vital partner in achieving the Sustainable Development Goals. Companies can contribute through their activities, and we call on businesses around the world to assess their impacts, set ambitious goals and communicate the results transparently.” – Ban Ki-moon, Secretary-General of the United Nations at the launch of the SDGs.
Background: What are the SDGs?
In 2015, a historic pact brought the world together: the 2030 Agenda for Sustainable Development. This initiative, adopted by all UN member countries, came into force in 2016 and defines the priorities for a more sustainable future by 2030.
There are 17 Sustainable Development Goals (SDGs) altogether, as an urgent call to action for all countries – both developed and developing. The SDGs recognize that the eradication of poverty and social progress need to go hand in hand with healthcare, education, equality, economic growth, environmental protection and the fight against climate change.
Adopted by 193 nations, these goals aim to “leave no one behind”. With its common language for all stakeholders, sustainability targets in critical areas for humanity, and basis on 5 fundamental principles (Planet, People, Prosperity, Peace, and Partnerships), the 2030 Agenda forges a trail to a fairer, greener, and more prosperous future for all.
SDGs in the world and in Europe
From 2015 to 2019, global progress in realizing the 17 SDGs merely amounted to 0.5% per year, far from enough if they are to be reached by 2030.
Then the COVID-19 pandemic made the situation even worse, with some indicators stagnating or even receding between 2020 and 2021, particularly in developing countries.
Against this scenario, the European Commission has taken a lead in promoting sustainability. The Commission’s ambitious political programme, with the SDGs at the heart of its guidelines, seeks to accelerate progress in all sectors, both within the EU and on a global scale.
The full implementation of the United Nations 2030 Agenda is essential to strengthen global resilience and prepare the world for future challenges. The green and digital transitions shaping the future of society call for an unwavering commitment to the SDGs.
Opportunities for companies
Small and medium-sized enterprises (SME) have a crucial role to play in building a more sustainable and prosperous future in line with the Sustainable Development Goals of the 2030 Agenda.
By integrating the SDGs into their business strategies, SMEs can stand out in the market, generate new opportunities, and contribute to positive changes in society and the environment.
Reducing the cost of capital
Sustainable financing is vital for achieving the sustainability goals, as it funnels private investments into a carbon-neutral, fair, resilient, and resource-efficient economy.
Investors are increasingly seeking to align their portfolios with the SDGs, channelling resources to companies that demonstrate an active contribution to the 2030 Agenda’s objectives. As a consequence, companies with a strong performance in ESG (environmental, social and governance) aspects are held to be more resilient and competitive, thus attracting investment and reducing capital costs.
Reducing operational, regulatory, and reputational risks
In a scenario of growing environmental and social challenges, businesses that fail to adapt run the risk of suffering major setbacks. Whereas alignment with the SDGs offers them tools for a more effective risk management.
Supply chains, for example, are particularly exposed to the effects of climate change and the depletion of natural resources. Which means in other words that prioritizing and managing these risks enables companies to secure their operating licence for the long term.
As the 2030 Agenda approaches its deadline, many governments may introduce new policies to ensure its achievement. Stricter regulations for unsustainable practices could lead to costs for businesses that fail to adapt, while tax incentives and subsidies support those that invest in sustainability.
Evaluating a company’s environmental and social impact, identifying opportunities for reducing resource consumption and greenhouse gas emissions, investing in sustainable technologies and practices, involving stakeholders and adopting a clear and transparent sustainability policy are all now essential for achieving long-term success.
The Sustainable Development Goals serve as a global strategic map for companies to shape, guide, communicate and report on their strategies, objectives, and activities. They are a unique opportunity for businesses to ensure their competitiveness but, above all, take the lead in building a more sustainable and prosperous future for all.