UN Global Compact Network UK
In a world where businesses are increasingly expected to play a pivotal role in driving positive change, the United Nations Sustainable Development Goals (SDGs) provide a universal blueprint for a future that delivers both social transformation and business benefit.
THE 17 SUSTAINABLE DEVELOPMENT GOALS
The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, provides a shared vision to improve lives and save our planet.
At its core are the 17 Sustainable Development Goals (SDGs), which identify how to create the future we want and provide a unique chance for the private sector to rally around a common global agenda.
SMEs ARE THE LIFEBLOOD OF THE UK ECONOMY
Small-to-medium-sized businesses are the backbone of industry. SMEs account for 99% of UK businesses and are responsible for turnover worth over £2 trillion. It is vital that their sustainability ambitions are raised to the standards laid out by the SDGs.
There is a multifaceted business case for smaller companies to embrace sustainability. Stakeholders – from regulators to investors to customers to employees – expect all companies to be improving their sustainability performance and are prepared to reward companies that adopt this agenda and punish those that do not. The successful firms of tomorrow are those that place sustainability at the core of their business model today.
As this integration can seem daunting, the UN Global Compact Network UK has developed the SDG Playbook for SMEs – in partnership with law firm Irwin Mitchell – to help smaller companies unlock the competitive advantages associated with embracing the SDGs in four key steps.
STEP ONE: MAP IMPACTS AND IDENTIFY PRIORITIES
The first step to integrating the SDGs in any organisation should be to assess the positive and negative impacts a business is currently having on the SDGs, throughout the entire value chain, to identify priority areas for action.
Businesses face increasing demands from their stakeholders to be more transparent about their ESG performance. Mapping impact demonstrates that a company is aware of, and managing, its ESG-related risks and opportunities which is essential preparation for future requests to report on progress and measure impact. It is vital that all business impacts are identified and quantified by robust data.
STEP TWO: SETTING AND ACHIEVING AMBITIOUS GOALS
Once SDG impacts have been mapped and priorities defined, the challenge is to internalise SDGs into the core governance of your company, and embed them across all functions within your business – implementing them strategically is key to setting and achieving your sustainability objectives.
The UN Global Compact, in consultation with business leaders and partner organisations, has developed 13 SDG Ambition Benchmarks to simplify the task and translate ambition into action.
These benchmarks are supported with comprehensive reference sheets that include clear pathways and sample actions for companies to take, as well as tools to assess progress against those goals.
STEP THREE: COMMUNICATE AND REPORT
Sustainability reporting continues to develop at a fast pace and creates challenges for businesses trying to design coherent and consistent reporting that meets jurisdictional requirements, as well as investor and other stakeholder expectations.
Reporting on your sustainability goals at the level of ambition required to achieve the SDGs in a comprehensive, transparent way sets a baseline for organisations to build an authentic narrative on the value created for stakeholders as they progress, further helping to secure buy-in.
Resource-stretched SMEs may not have established reporting and data collection mechanisms in line with standards required of larger companies, but they might be asked to provide this information as part of a larger company’s scope 3 reporting requirements, Modern Slavery Statements, or terms of engagement.
STEP FOUR: PARTNERSHIP FOR THE GOALS
The value of collaboration is explicitly built into the design of Agenda 2030, with SDG 17 outlining various partnership targets.
Engaging in partnerships for the Goals can help SMEs decide on how to engage, as well as encourage a sense of shared responsibility across the business. SMEs can explore value chain, multi-stakeholder, and sector-specific partnerships to help build brand reputation, mitigate risk, reduce operational costs, and advance action for the SDGs. The UN Global Compact Network UK offers engagement opportunities for SMEs to connect with industry competitors and peers across sectors to accelerate their progress towards sustainable business development. Through over a hundred events every year, we create networking opportunities to help you find strategic partners to advance the SDGs
[DOWNLOAD THE UN GLOBAL COMPACT NETWORK UK SDG PLAYBOOK FOR SMEs HERE]
