United Nations Sustainable Development Goals (UNSDG)

About UNSDGs

A United Nations (UN) Conference in 2012 on Sustainable Development gave birth to the United Nations Sustainable Development Goals (SDGs). The SDGs call for states and businesses to tackle challenges for sustainable development through creativity and innovation to make an impact on the community where they operate. The uniqueness of the SDGs is that they can help nations and businesses, whether large or small, to create an environmental/communal impact across the 17 goals. The 17 critical areas or SDGs that the member states of the U.N. aim to achieve by 2030 include the following goals:

Despite a steady development in the achievement of certain targets, a 2020 SDG report explains that meeting the SDGs by 2030 is still a distant reality. 

The Importance of UNSDGs within the Current Market Scenario

For any business, increasing profits and creating sustainable value largely depends on its foundational strategy. These can be value creation for stakeholders, improving the environment where it operates, and creating a positive impact across all organizational levels. The SDGs play a catalyst role in helping a company divest its business in a newer market, prevent organizational and market risks, motivate its employees, help it innovate, and serve society.

By mainstreaming sustainability goals through objectives under the SDGs, businesses can assess and track the impact of their operations on a macroeconomic level and drive sustainable businesses.  According to the Global Reporting Initiative (GRI), as of 2022, 83% of the companies globally recognize the importance of SDGs and support them by aligning their reporting with the SDGs. However, only 40% of these companies set a measurable commitment for the means to achieving these SDGs and only a few disclose evidence that helps assess their positive impact. ESG (Environmental, Social, and Governance)-based investment decisions operate with the primary goal of developing the long-term value of a business by maximizing its investment performance, reducing risk profile, improving reputation, reducing regulatory impediments, and optimizing equity assets. Apart from climate change, ESG issues have received significant attention from investors post Covid-19 pandemic and companies are still finding a way to integrate ESG considerations in their businesses to improve their long-term value.

How ESG assessment can fuel SDG monitoring and tracking process and add value to our clients

SDGs identify a risk area that presents unique challenges for society and businesses to address. Businesses, investors, governments, and even countries are key stakeholders that have the largest impact while addressing these risks. We primarily assist the following stakeholders/consumers:

• Investors and Stakeholders: ESG investors and stakeholders scrutinize ESG risks such as human rights risks, environmental and social performance risks, risks to usage of resources, climate change risks, and corporate governance risks while making investment decisions. SDGs can help investors assess the commitment and impact of companies towards sustainability and track and review their sustainability goals.
• Corporates and SMEs: Integrating SDGs into a firm’s business strategy may widely differ across firms based on materiality and individual business strategies while many firms might indirectly be contributing to achieving these goals without realizing their impact. This may range from a Small-sized Manufacturing Enterprise (SME) taking care of the mental and physical health of its employees (SDG 3) to a large corporate manufacturer ensuring the working conditions of its employees in the supply chain (SDG 8). For startups, SDGs can be a game changer as this can help them innovate their products and solutions directing towards positive change.
• Industries and Sectors: Large industries such as the oil & gas industry and pharmaceutical industry, due to the nature of their businesses, exert a significant impact on the environment and economy. Such industries can identify the influence of their operations by identifying their alignment towards SDGs. Neo Impact report on the impact of 5G IoT industry on the SDGs, where it was found that 5G IoT industry can promote the achievement of SDG 2 by helping farmers adopt precision, 5G IoT-enabled technologies to monitor and enhance crop growth, nutrient levels, soil moisture, and weather patterns.

The SDGs are essentially developed considering social expectations, inclusion towards social and economic well-being, and globally shared values. The SDGs are largely interconnected and integrate certain Key Performance Indicators (KPIs) which offer a realistic framework for mapping ESG by integrating sector-specific ESG factors with environmental and social issues at a broader level. These include climate action, biodiversity, gender equality, and promoting peaceful and inclusive societies, among others.  While standard ESG techniques adopted by companies measure their performance by considering corporate impact, the SDGs can help companies and investors set higher ESG goals and improve their long-term value.

SDG 3: Good Health and Well-being

At the heart of the economic analysis post the Covid-19 pandemic was the healthcare industry which was largely affected by the pandemic in 2020. In the fight against the pandemic, healthcare workers faced a significant threat to their health and well-being, while the modern technology and service industries had the tough task of maintaining the mental health and well-being of their employees working remotely. In the effort to improve the social well-being of communities, aligning a company’s strategy with SDG 3 would be quite important, which companies across the globe have started to recognize.

Various ESG metrics can assess a company’s exposure to SDG 3, such as health and safety initiatives, OHSAS certification, injury rates, flexible working policies, and health care insurance, among others.

SDG 5: Achieve Gender Equality

Achieving gender parity in the workforce may largely vary based on the sector in which a particular company operates. However, many companies strive to achieve gender equality in the workforce to ensure sustainable business practices and women’s empowerment in the workforce. Recent research suggests that the average representation of women in the mining industry is between 8% and 17%; however, Teck Resources, a Canadian mining firm employs around 24% of women in its workforce as of FY 2022, with the figure increasing by around 12% since 2011.

Various ESG metrics can assess a company’s exposure to SDG 5, such as Women’s representation in the workforce, women’s representation in management positions, women on Board, and gender pay gap, among others.

SDG 8: Decent Work and Economic Growth

Investment decision-makers have an eye for knowing how a firm’s supply chain operates, which is a key social aspect. Over the decade, large corporations in the automotive, energy, and fashion sectors have been linked to unethical labor practices within their supply chain including forced labor. Such corporations may bear a negative brand reputation and face regulatory risks to their operations in the long term. Aligning a company’s reporting with SDG 8 can help promote socially responsible practices including ethical sourcing and fair labor practices.

Various ESG metrics can assess a company’s exposure to SDG 5, such as sourcing practices, organizational code of conduct, and employment trends, among others.

SDG 12: Responsible Consumption and Production

Despite improving the living conditions of many, increasing industrialization has contributed to biodiversity loss with continuing destruction of forest cover and key habitats potentially leading to an ecosystem collapse. SDG 12 helps companies assess their impact on the environment through sourcing and helps them innovate and find ways to increase the consumption of recycled resources. For instance, Nike has aligned itself to SDG 12 by making products out of recycled materials thereby ensuring responsible consumption of resources.

Various ESG metrics can assess a company’s exposure to SDG 5, such as Waste management practices, Resource utilization including water, biodiversity management, and recycling ratios, among others.

SDG 13: Climate Action

“Climate Action” is an SDG that holds a very high significance as it helps businesses measure the effects of their business operations on climate change. Organizations may frame programs and policies around emissions to decrease their environmental footprint and limit temperature growth below 1.5°C to 2°C. Emissions have a deep impact on sustainable development as they pose a risk to energy production, availability of water, and extreme weather conditions such as wildfires and floods. By setting targets to achieve climate action goals, companies can reduce their GHG (Greenhouse Gas) emissions, improve finance for renewable energy, and be resilient to climate change. In its efforts to reach a carbon neutrality goal, JetBlue, a U.S.-based low-cost airliner has offset its emissions by aligning its operations to SDG 13. Various ESG metrics can assess a company’s exposure to SDG 5, such as GHG Emissions, Emissions targets, Renewable Energy Consumption targets, scope 1, 2 and 3 emissions, among others.

How Neo Impact can help

Defining and tracking SDGs can be complex as these are interconnected and present a challenge to companies while assessing them individually. A novel approach is essential to analyze and exhibit the operational impact of companies on the planet and community through SDGs. Neo Impact’s dedicated sustainability taxonomy assesses the end-end impact of companies from across 300+ metrics that inculcate, operation and product-specific information. Neo Impact offers a broad range of SDG consulting solutions, including:

SDG Implementation

Neo Impact assists clients with implementing SDG within its operations and products. We employ subject-specific experts to implement, analyze, and develop SDG impact reports.

SDG Tracking

To support clients with mapping and tracking their operational impact in line with SDGs, we incorporate a robust taxonomy and customizable dashboard to view and track their operational impact.

SDG Reporting

Neo Impact helps clients report their performance in line with SDG metrics to its stakeholders using company SDG reports and Thematic SDG reports.

SDG Awareness

Neo Impact’s consulting team conducts SDG awareness and training sessions for management and employees of large corporations and SMEs

SDG Portfolio

We help assess existing portfolio or help in building new impact portfolios aligned with SDGs