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Sustainable Development Goals
Companies will explore new development possibilities and decrease their risk profiles by inventing and delivering solutions to meet the SDGs. Companies may utilize the SDGs as a framework to define, steer, communicate, and report on their plans, goals, and actions, allowing them to reap a variety of benefits. These are some examples:
Identifying future commercial opportunities
Global sustainable development challenges are already creating market opportunities for companies that can develop and deliver innovative and effective solutions, such as:
– Innovative technologies to increase energy efficiency, renewable energy, energy storage, ‘green buildings,’ and sustainable transportation;
– The replacement of traditionally manufactured and processed products with ICT and other technology solutions that reduce emissions and waste;
– Meeting the the SDGs seek to drive global public and private investment toward the issues they represent.
This will help to expand markets and make finance available to firms that can provide relevant technology.
Increasing the worth of corporate sustainability
Corporate sustainability has a well-established commercial case. Companies can protect and create value for themselves by integrating sustainability considerations across the value chain, for example, by increasing sales, developing new market segments, strengthening the brand, improving operational efficiency, stimulating product innovation, and reducing employee turnover.
Global efforts by governments and others to achieve the SDGs will reinforce financial value drivers of company sustainability, such as:
– The imposition of taxes, penalties, and other price mechanisms to absorb present externalities inside the firm. This will provide economic incentives for businesses to use resources more effectively or transition to more sustainable options.
– Younger generations, in particular, place a premium on ethical and inclusive business practices, and sustainability performance is emerging as a critical component in the “battle for talent.” Employee morale, engagement, and productivity may improve further in businesses that take action to achieve the SDGs.
– Consumers throughout the world are increasingly basing their purchase decisions on their view of a company’s sustainability performance, and the SDGs may amplify this trend.
Developing stakeholder relationships and staying current on policy developments
Stakeholder expectations as well as future policy direction at the international, national, and regional levels are reflected in the SDGs. Companies that align their goals with the SDGs may connect with consumers, workers, and other stakeholders more effectively, while those that do not face rising legal and reputational consequences.
Companies that contribute to the SDGs are more likely to: – Increase stakeholder confidence.
– Improve their operating license.
– Lower legal, reputational, and other commercial risks.
– Prepare for the expenses or obligations imposed by future laws.
Stabilizing societies and markets
Businesses cannot thrive in failing societies. Investing in the SDGs strengthens the cornerstones of corporate success.
The successful implementation of the SDGs will assist in: – Lift billions of people out of poverty, consequently expanding global consumer markets.
– Improve education, resulting in more skilled and engaged employees.
– Make progress on gender equality and women’s empowerment, resulting in a ‘virtual emerging market’ with the population and purchasing power of China and India.
– Ensure that the global economy functions securely within the planet’s capacity to deliver key resources such as water, fertile soil, metals, and minerals, therefore maintaining the natural resources on which businesses rely for production.
— Encourage transparent and well-governed institutions, as well as open and rule-based trade.
Using a common language and a single goal
The SDGs offer a standard framework of action and vocabulary that will assist businesses in communicating their impact and performance to stakeholders more uniformly and effectively.
The SDGs may also aid in the formation of more successful collaborations with governments, civil society groups, and other businesses since they give a cohesive sense of objectives and purpose across all elements of sustainable development.
Engage with governments by paying the appropriate taxes.
At first sight, the majority of the SDGs appear to be more about governments than enterprises – protecting the environment, providing great education, ensuring comprehensive health care, building sustainable communities, and so on. Governments, on the other hand, are cash-strapped as a result of complex tax-dodging strategies or tax benefits offered to entice enterprises to their territories. Although tax evasion is lawful, it has reached immoral proportions. Too many businesses are freeloaders, making use of vital physical and social infrastructure while failing to pay their fair portion of the price. Paying the proper tax in the right jurisdiction at the right time is an investment, not a “burden” to be avoided. The investment pays out in the form of a healthy, robust society in which to do business. Corporate citizens must correctly record how much companies implicitly contribute to SDG-framed environmental and social good by including the amount of income and property taxes, less any government subsidies or special incentives, in their accounting. Companies utilize their taxes to cooperate with governments to enable all of the SDGs, in the spirit of SDG #17: Partnerships for the Goals. This might be the most important contribution most firms make to the SDGs.
Adopt SDG-impactful business models
Companies with purpose-driven “impact business models” can produce environmental and social value through restorative operating procedures, goods and services that help people contribute to the SDGs, inclusive employment practices, and other constructive endeavors.