Integrating SDGs in ESG
Endorsed by all 193 United Nations Member States in 2015, the 2030 Agenda and its Sustainable Development Goals (SDGs) focus global efforts and attention on 17 pressing issues.
By addressing potential and actual negative impacts to people and the environment that are linked to its operations and value chains and by contributing to positive impacts that companies can make to benefit people and the environment, businesses can reap benefits for themselves and for the markets they depend upon.
The SDGs are becoming increasingly important also for investors, as they are used to formulate the basis of the material ESG (environmental, social and governance) topics that investors are taking into account as part of their fiduciary duty. There is a strong business case for investing in opportunities aligned with the SDGs, including helping investors secure stable returns, better represent the values of their clients and offer sustainable financial products that differentiate them in the marketplace.
Companies can include specific SDG targets in their materiality analysis. To conduct a prioritization of SDG targets we would recommend to screen the whole company value chain and identify what impacts (positive or negative) are produced by or affecting the company.
Companies can assess and report correspondingly on their SDG-related impacts for their supply chain, direct operations and products and services. This segmentation of information helps better understand where impacts occur, who is affected by them and the level of control the company has to influence these impacts. See example below.
The approach integrating SDGs is part of our analysis module: www.stratesgy.com/analysis
Once finalized, companies can align their objectives and strategies to contribute to their priority SDG targets. This step is part of our integration module: www.stratesgy.com/integration