How can you use SDGs to create new business opportunities?

Aligning your business strategy with the SDGs offers numerous advantages, ranging from gaining a competitive edge to mitigating future risks. By demonstrating your commitment to social and environmental responsibility through the SDGs, you can attract customers, investors, and partners who share your values. Furthermore, aligning with the SDGs allows you to create value for stakeholders, enhance your reputation, and position your organization as a responsible leader in the global business landscape. Embracing the SDGs is not only a proactive step towards sustainable development but also a strategic choice that can drive long-term success.

Aligning business strategy to the SDGs ensures businesses are guided by its goals and targets which enable direct and indirect contribution to Sustainable Development either in terms of meeting regulatory requirements or value creation for stakeholders. It also provides measurable KPIs for both financial and non financial metrices that can be monitored, tracked and reported. However, it is important for businesses to strategically prioritise the SDGs that are material to its business and stakeholders so that the alignment between business strategy and Sustainability is sustainable over long term

Aligning with SDGs helps you to align with the European market where SDGs is just the first step. I think that as the world keeps evolveing we will se more and more markets using regulation such as EU:s Corporate Sustainability Reporting Directive (CSRD). CSRD requires companies to report on the impact of corporate activities on the environment and society, and requires the audit (assurance) of reported information.

The SDGs are the only globally recognized, universally ratified framework for sustainable development. Adopted by every country in 2015, the 17 SDGs map a clear path towards a resilient future that prioritizes people, the planet, prosperity, peace, and partnerships. 80% of countries have integrated SDGs into their national policies, highlighting their crucial role in guiding sustainable development efforts. By viewing the news through the lens of these comprehensive benchmarks, you will get exceptional insight into business opportunities, transition finance, and policy SDGs are more familiar in Europe and Asia, but awareness and adoption in the US is growing toward global alignment.

By following these steps, you can align your business with the SDGs, reflecting your purpose, driving innovation, and promoting collaboration for sustainable development. - Define your purpose, - Conduct a materiality assessment, - Set ambitious goals, - Foster innovation, - Collaborate with partners, - Engage employees, - Practice transparent reporting, - Inspire and educate others, - Embrace continuous learning.

There are lot's of tools out there and probably every decent consultancy agent has one (so do we). But I would recommend just openly thinking through the companies biggest impact on the world the good, the bad and the ugly. After that see how the SDG:s can help you minimize the bad and ugly and strengthen the good.

Aligning with the SDGs by 2030 is not just about ticking boxes but about genuinely integrating sustainable practices into every facet of your business. It requires commitment, collaboration, and continuous effort but offers the potential for enhanced business resilience, improved stakeholder relations, and a positive impact on the world. If you're unsure of where to start, consider bringing on a Sustainability Business Consultant or adding a Chief Sustainability Officer to your team.

A company's responsibility lies first and foremost in properly addressing the SDGs for which they contribute negatively - i.e. mitigating their negative impacts - which might not be all of them. If all companies were addressing their negative consequences on SDGs, there wouldn’t be so much of a need for the SDGs. This is where the concept of materiality comes into play. A materiality assessment is the first step to identify the most significant issues, and then issues can be linked to SDGs with the outlined tools.

The drive for aligning with SDGs may come from the CSO or employees. However, to be successful the plan needs real support and buy in from company leadership and its board, and to be integrated into the DNA of the company. As the only globally recognized, universally ratified framework for sustainable development SDGs offer an alternative framework from the charged conversations around ESG, which will only heat up in this election year. By looking at business through the lens of these comprehensive benchmarks, you can work more toward a common goal of innovation and informed risk management.

An example I have seen is how some companies used SDGs that are relevant to their business models or values, and develop Call to Action initiatives around that. SDG No 5 on gender equality is frequently used as framework for Diversity and Inclusion programs such as Career Management initiatives.

Stakeholders including businesses, corporations, regulators, consumers all are shifting towards Sustainability. Commercial opportunities on sustainable and green product offerings are key to meet the demand of all over the long term. Risks of not 'greening' the product offerings or ensuring the integratiom of social elements could pose risks to businesses including operational, reputational and financial risks. However, alignment to sustainable and green product demand should be based on strategic engagement with stakeholders to enable operation and production meet the requirement and criteria of stakeholders. SDGs can be used as a useful guidance for criteria completeness but further prioritisation is critical for all businesses

I would ad to this by suggesting to have a look at what is happening at regulatory levels both in the country but also at bigger level such as in Europe or in negotiations between EU and USA for example. Some time it moves slow but the discussions gives hints of where new markets might emerge. Climate adaption and mitigation being obvious once.

One of the most exciting aspects of aligning with the SDGs is the opportunity to identify unmet needs and gaps in the market that align with the global agenda. Tools like the Business Call to Action, Global Opportunity Explorer, and the UNDP SDG Impact Platform can help you explore challenges and solutions in different sectors and regions. To dig deeper, conduct market research, customer surveys, and engage with stakeholders to understand their needs and preferences. By doing so, you can find innovative ways to meet these needs with your products or services. Embracing the SDGs isn't just about following a trend; it's about being responsive to the evolving landscape and addressing pressing global issues.

Innovation is at the heart of using the SDGs to create new business opportunities. It involves developing novel or improved products, services, or business models that tackle social and environmental challenges while generating value for your business and society. Tools like the Business Model Canvas, Lean Startup Methodology, and the Social Business Model Canvas can guide you through the process. Collaborate with NGOs, governments, academia, and other relevant stakeholders to leverage their expertise and resources. Remember that innovation isn't just about coming up with ideas; it's about testing, measuring impact, and scaling your solutions.

Innovative measure is definitely an area where SDGs can be a helpful framework. Apart from leveraging the SDGs to drive collaboration, innovative measures that I have come across in my work include Agile Learning Programs and gamification , both can be effective in leadership development.

Innovation in operation and production should be based on risk assessment as well as stakeholder engagement. Criteria for innovation will eventually determine vision and mission, aspirations and targets for businesses. This must make sense in terms of long term profitability, cost efficiency, boost productivity and value creation for stakeholders Continuous stakeholder engagement is needed to ensure constant improvements and also to maximise opportunity to listen and address the concerns from stakeholders Businesses should also be agile in collaboration, partnership and ready to invest its various capitals for best innovation

Adding a European perspective here perhaps but still might work in other areas as well. Don't underestimate the help you can get from authorities geting through the regulatory jungle, they are often helpful. Also do not focus to much on the tools, decide where you truly wan't to make an impact.

There are so many frameworks, standards, assessments, initiatives and regulations that it is hard to keep up, much less stay ahead. But many of these voluntary reporting options help companies to build credibility and communicate their impact. However, as a former Deloitte assurance provider myself, I do think that companies need to get third party verified before they shout from the rooftops that they have met their goals or targets. Storytelling with photos and case studies of real people within your organization and across your supply chain really bring your company's ESG achievements to life!

Stakeholder engagement is key to coomunicate the progress and achievements and at the same time address all issues that are material to businesses and stakeholders. This includes Sustainability Reporting, press release, media release, one on one interviews and so on. Considerations that need to be factored in communication (disclosures on non disclosures based) includes transparency, credibility, comparability and conciseness. At the same time, businesses need to be careful to ensure no elements of greenwashing through its communication. To do this, guided by international standards can be useful. This of course have to be supplemented by two way review by experts and regulatory bodies so communication is 'sustainable'

When communicating about your contribution to SDGs, beware of SDG washing: - Focus on material SDGs only: Communicate only on actions and results aiming to avoid harm to SDGs that are material to the company - Be clear on the nature of your contributions to SDGs: If you are going beyond acting to avoid harm by intentionally generating a positive impact (contributing to a solution) related to one or several SDGs, report the results separately. Negative impact mitigation is not the same positive impact generation. - Report evidence-based contributions: When reporting on your contributions to the SDGs, ensure that you provide concrete, evidence-based information to support your claims.

In our new media landscape this is a difficult one. Getting to know your audience gets more and more important. Try to tailor your messade and use the media that they use... get help if needed to find them.

Once you've aligned with the SDGs and implemented innovative solutions, the final step is to communicate your impact effectively. Transparency and authenticity are key. Tools like the GRI, Impact Management Project, and B Impact Assessment can help you measure and report your impact in a standardized manner. When communicating your impact, tell your story, share your results, and engage with your stakeholders through multiple channels, including your website, social media, and events. By showcasing your achievements, challenges, and lessons learned, you can increase your visibility, credibility, and trust, inspiring others to join your cause and further amplifying the positive influence of the SDGs on your business and society as a whole.

A business can leverage the SDGs to create new opportunities by aligning its strategies and operations with these global objectives. Firstly, by developing products or services that address specific goals such as clean energy or sustainable cities, a business can tap into growing markets and consumer demand for sustainable solutions. Secondly, by adopting sustainable practices in its operations, a business can reduce costs and enhance its brand image. By integrating the SDGs into its business model, a company can not only contribute to global development but also discover new opportunities for profitability and success.

The Sustainable Development Goals (SDGs) comprise 17 goals and hundreds of targets, serving as a roadmap for addressing some of the world's most significant challenges. Achieving these goals requires partnerships and collaboration. The SDGs offer the private sector an opportunity to work alongside governments, non-profit organisations, and communities. This collaboration not only fosters action on the SDGs, but also promotes more resilient and prosperous businesses, unlocking the potential of partnerships for good.

The SDGs drive innovation. Companies aligning with SDGs are 17% more likely to introduce new products and services, fostering growth and sustainability. They will also attract more talented younger workers and customers. GenZ is ahead of the rest of us in considering reputational issues on everything from climate to diversity for everything from where they work to where they spend and invest their money. And 70% of Gen Z believe that businesses should help address social and environmental issues, showing strong alignment with the SDGs.