Let’s Talk SDGs

One of the most popular practices, when it comes to sustainable business development is to align the company’s activities to UN’s Sustainable Development Goals (SDGs).

What does that mean? Let’s cover the basics.

In 2015, The United Nations General Assembly set 17 sustainable development goals, also commonly referred to as SDGs. These goals are accompanied by specific targets and are intended to be reached by 2030.  According to the UN, SDGs are defined as a ‘blueprint for peace and prosperity and aims to achieve a better more sustainable future for all people and the planet’. Check out more about the goals and respective targets here.

These are the Global goals. And even though SDGs were the first set up as guidelines for countries, many businesses are actively adopting them for their own strategic development.

Let’s run through couple examples

Company X is producing medical equipment. Organization decides to align its business practices to selected Sustainable Development Goals. As a producer, one of the main goals Company X selected was SDG 12 (responsible consumption and production).

This required big changes in their business model. The Company realized that their customers are seeing a great value in paying for access to the product, not the ownership. With that in mind, the offering was changed from producing the equipment with an intent to sell to a subscription service with the intent to rent. With this new business model, customers have an access to the equipment, an app, and 24/7 support service.

This strategy is increasing the affordability of the product and at the same time reducing the volume of the production. With proper maintenance, the same equipment may be used many times and by many more people in turn contributing to the circular economy as well.

In reality, the process of strategically aligning your company’s business models and long-term goals might be a challenge. The process is not easy or quick, but it is necessary. It might seem that contribution to SDGs or sustainability in general is requiring many sacrifices and mostly for philanthropic reasons, however it is also about creating commercially valuable solutions. In most cases, it is just a smart thing to do.

We can take one more example from the chocolate industry. It is relatively well known fact, that cacao production has a dark side to it. Child labour, slavery, poor working conditions where many farmers are earning less than $2 a day, which is considered to be below the poverty line.

Company Z is producing chocolate and working towards SDGs 1 (no poverty). They decided to make a road map addressing the supply chain. Starting with awareness and deep understanding of the main issues, then tracing all the cacao they buy and paying a fair price for it. Furthermore, company is working on improving farmers education and professionalism and creating strong long-term relationships.

These actions help farmers to gain enough money to improve their living conditions and helps them to escape poverty. Education and professionalism will translate into higher productivity and long-term relationships will build reliable and commercially valuable solutions now and in the future.

So, where your organization can start?

Awareness

Starting with corporate sustainability or SDG’s training is often a good idea since it is important to gain a better understanding of how your company or organization can use SDGs as a tool to work together on global issues.  

Ideas

Encourage workshops and brainstorming sessions to gain ideas and the best ways to incorporate them. Especially, using the bottom-up approach.

Operations

After solid ideas are generated, it might be the perfect time to adjust old business models and rethink ineffective or unsustainable operations. That’s where long-term strategies and plans come in. 

Measurements and reports

To see what is working and what needs further adjustments it is necessary to measure and report the progress. This will also help with the company’s internal and external communications and will keep you on track.