The Sustainable Development Goals (SDGs) set out the UN agenda for people, planet and prosperity by year 2030.
The
17 goals and 169 targets adopted in September 2015 aim to stimulate
action in areas of critical
importance to humanity and the environment.
importance to humanity and the environment.
Businesses
can also use the SDGs to arrive at sustainability, which is the
aspiration of many companies by balancing profitability with social and
environmental impacts.
SDGs also provide a framework
for increased investment in new markets, using them as the ‘common
language’ for the progressive enterprise, and an opportunity for
long-term partnerships with the government and others.
This chain secures the future of the planet and generations.
Tying SDGs to business strategy affords the establishment an
opportunity to meet societal needs and social development while
minimising environmental impact.
The goals will enable
the companies to align to important external standards, such as those of
the International Labour Organisation.
Companies
must realise the market landscape is constantly changing, partly with
the dwindling natural resources, climate change, unsustainable supply
chains, and poor waste management that require continuous innovation.
A
continuous assessment of the value chains to identify gaps will help
companies to thrive and deliver value not only for shareholders and
customers but also the rest.
Business needs the SDGs for they present a compelling growth strategy for enterprise in general and the world economy.
There are opportunities when companies invest in delivering innovative solutions and transformative change.
If
the SDGs are achieved, 380 million job opportunities will be created as
well as unlocking at least $12 trillion in opportunities for businesses
by 2030.
These opportunities favour businesses that
are taking action instead of those that take a back seat on integrating
the SDGs in their strategies.
Consumer demands are
changing as a result of demographic alterations and consumers are
becoming more responsible in terms of production and consumption.
For instance, 74 percent of Kenyans believe that business has a key role to play in achieving these UN targets.
Business
must, therefore, demonstrate a clear and credible commitment to
sustainability to maintain the loyalty of Kenyans as customers and
employees.
For any business manager, risk management is
a key component for no enterprise can succeed if the various risks
facing it are not managed.
Over and above the risks
domiciled within the company, external risks, especially issues such as
climate change, poverty, gender equality in a society need to be managed
and addressing these UN goals will help in tackling such critical
issues and secure resilient supply chains and stable markets.
The SDGs are also tied to cost reduction through a more efficient use of resources within companies.
It is expected, for example, that by year 2030, renewable sources of energy will replace fossil fuels.
The
renewables such wind and solar are becoming cheaper than coal or gas in
countries like India, the UK, Denmark and will soon be the case for
more countries, including Kenya.
With the inevitable
transition from fossil fuels, it makes long-term economic sense for
companies to begin the movement now, hence the recent announcement by
many car manufacturers around the world that they are phasing out petrol
and diesel-fuelled cars.
Leading companies like IKEA,
H&M, and Google have committed to using 100 percent
renewably-sourced electricity within the next 10 years.
Investing
in renewable energy helps companies to manage costs against fluctuating
fossil fuel prices, ensures a stable supply of energy as well as
building on the corporate reputation.
Companies are
also investing in more efficient water management as well as innovating
around circular economies which can reduce waste.
The bigger question remains, though.
Is
your business strategy linked to the SDGs? And, what are you doing to
ensure that the integration is beneficial to both the company, the
society and future generations?
All businesses should strive to ensure that they are engaging with the SDGs as a win-win strategy.
The writer is CEO, Kenya Climate Innovation Centre.
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