Mainstreaming Sustainable Development Goals into business models
SUSTAINABLE Development Goals (SDGs) are a successor to the Millennium Development Goals running from 2016 to 2030. About eight years are left to deliver the objectives as set out by United Nations (UN) General Assembly of 2015. Zimbabwe aims to be an upper middle income society by 2030, which coincides with the end period for the SDGs with a key principle of “leaving no one and no place behind” in line with the UN Agenda for Sustainable Development.
The current business operating environment has been challenging and calls for skilled personnel that are key in maintaining organisational sustainability. Both individual and collaborative actions are required on the defining issues of our time. People in the world have joined efforts to make a difference in all facets of their lives, from the food they eat to the clothes they wear. The Covid-19 pandemic has pushed a significant proportion of the Zimbabwean people, about 49 people, into extreme poverty (World Bank, 2022). The first two SDGs specifically target at eliminating poverty and hunger, respectively.
ZNCC, as a business member organisation, has seen it crucial to disseminate information to the vulnerable groups in the businesses community through the ZNCC Training School working in partnership with UNDP Zimbabwe. In November 2022, the Chamber in partnership with UNDP Zimbabwe, undertook three training sessions on how businesses can mainstream SDGs into business models.
Development issues under SDGs have been grouped into five categories: People, Planet, Prosperity, Peace and Partnerships. The categorisation is linked to the interconnectedness of the goals. The recognition of the interconnectedness leads to a holistic view of the challenges and consequently, holistic interventions. The categorisation is as follows:
◆ Goals 1-6 relate to people, their dignity and their human rights (People);
◆ Goals 7-10 seek to promote economic and technological development (Prosperity);
◆ Goals 11-15 aim to ensure sound management of the planet and natural resources while addressing climate change;
◆ Goals 16 aims for peaceful, just and inclusive societies that are free; and
· Goal 17 stresses on global Partnerships for all the Goals.
The 17 SDGs are guiding the world’s development agenda for the period between 2016 and 2030. The SDGs provide a powerful framework if a company looks to improve performance while, having a positive impact on social well-being and protecting the environment. No matter how large or small, and regardless of industry, all companies can contribute to the SDGs. While the scale and scope of the global goals is unprecedented, the fundamental ways that business can contribute remain unchanged. The UN Global Compact asks companies to first do business responsibly and then, pursue opportunities to solve societal challenges through business innovation and collaboration.
Global challenges – ranging from climate, water and food crises, to poverty, conflict and inequality – are in need of solutions that the private sector can deliver, representing a large and growing market for business innovation. In the rush to transform business models and systems for the future, integrity and values will have a huge role to play. For companies wanting to advance the SDG Agenda, the job starts by acting responsibly – incorporating the Ten Principles of the UN Global Compact widely into strategies and operations, and understanding that good practices or innovation in one area cannot make up for doing harm in another.
By mainstreaming SDGs into business models, entrepreneurs have a lot to gain. Companies are facing challenges that limit their potential to grow such as scarce natural resources, weak financial markets, limited local buying power and lack of qualified talent. There is a clear business case for corporates to harness the SDGs to create opportunities to address these challenges across four key themes: growth, risk, capital, and purpose.
There is a positive association between business growth and achievement of SDGs at the macroeconomic level. At the firm level, however, companies should identify how they can contribute to meeting the goals in a way that drives financial performance in the markets they operate in. SDGs 8, 9, and 12 focus mainly on economic growth, employment, sustainable industrialisation, innovation and sustainable production whereas other SDGs also offer business advantages through expanding into new markets, new products, Development issues under and Partnerships. attracting talent and reducing risk from operations. By incorporating SDGs and the UN Global Compact principles into strategies, policies and procedures, companies are not only upholding their basic responsibilities to people and planet, but also setting the stage for long-term success. There is a world of opportunity once companies have taken care of their basic responsibilities.
In other countries, especially in the developed world, companies are continuously transforming business models to serve societal needs and tap into new markets, at the same time driving corporate long-term growth and success. However, it is important to note that all SDGs may not be relevant to every business. Self-assessment of impacts, risks, and opportunities – with sector and geography being key factors — to determine the most significant and strategic goals that can be addressed must be conducted. Beverages companies are investing in improved watersheds by working to replenish the aquifer water they use, thereby also committing to provide access to clean water to people in water-stressed regions. This strategy aligns well with the SDG No. 6 – clean water and sanitation. While providing water supplies to sustain their bottling franchises near those watersheds, they are also investing in their license to operate and thus, strengthen their brands in these communities.
Supply chains are particularly exposed to the effects of climate change and depletion of natural resources, which align to SDGs 12, 13, 14, and 15. Zimbabwe’s manufacturing sector is dominated by Agro-Processing Industries (APIs) and climate change has a significant on the supply chains within the agriculture industry. Zimbabwe is committed to implementing all 17 goals while prioritising 10 + 1 enabler goals.
Reporting to stakeholders in a transparent and ethical manner is fundamental for companies committed to sustainability. A number of stakeholders are driving businesses to be more transparent – from regulators and investors, to consumers, citizens and civil society groups. In conclusion, no one segment of society can achieve the SDGs alone. Increasingly, businesses understand that they must collaborate and co-invest in solutions to shared, systematic challenges.