“All hands on deck” to achieve the SDGs by 2030

Our economy depends on nature. And in no small measure – it’s a $44 trillion dependence, or more than half of the economic wealth generated worldwide, according to the Agence Fran?aise de Développement?(French Development Agency) .

These figures put to bed old arguments that we can’t afford action on climate change and biodiversity loss – the truth is, we can’t afford not to act.

The 17 UN Sustainable Development Goals (SDGs) are the global framework put in place to help us do that – a blueprint for reducing inequality, powering economic growth, and protecting our planet. A global investment plan, if you like.

We’re now halfway between when the goals were set and the 2030 deadline, but with just seven years to go, only 18% of the targets are on track and some are going backwards .

Despite the lack of progress, at the launch of the latest Global Sustainable Development Report last month, UN Secretary-General António Guterres’ speech focussed on a message of acceleration and hope, saying: “This is not the time for incrementalism.? This is the time for transformation — with all hands on deck.”

All hands on deck - the private sector steps up

The SDGs were designed as plan for global governments to collaborate on shared goals for the future, but in the face of slow progress, it has been the private sector that has picked up the baton and run with it.

A new report by Accenture? reveals that 91% of companies now have a public commitment to one or more goals, with 78% having changed their product or service offering to align with one of the goals.

In conversations I have with customers, many are seeking to align their investments with the SDGs and make a demonstrable contribution to achieving their aims by 2030.

It’s little wonder the private sector has backed progress on the SDGs – ESG factors ultimately represent investment and operational risk, and addressing the SDGs is a proactive mechanism to mitigate these issues.

Access to sustainable asset classes

The Accenture report goes on to list 10 key roles business can play in contributing to the SDGs – alongside the contribution companies can make as employers, innovators, and taxpayers, the production of goods and services was a key impact driver.

This puts manufacturers in the spotlight because increasingly capital is being invested in asset classes that can deliver against ESG commitments and align with the SDGs.

As a result, manufacturers are making new sustainable assets classes available to customers and reducing the impact of production processes. But many are going even further, by focussing on selling services across the whole lifecycle of an asset rather than maintaining a focus on increasing the number of units produced and sold.

When manufacturers sell their product-as-a-service, they become partners in extending a product’s life by maintaining responsibility for the asset and selling sustainable services, including operational support, asset management, and end-of-life handling services, like refurbishment and resale.

These add-ons create value for the end customer, while reducing environmental impact through improved efficiency and reduced waste. Both parties become invested in assets remaining operational, in good health, and holding their value for as long as possible.?

Accessing business assets as-a service is becoming a popular way of aligning operational goals with ESG commitments for end users too. It allows customers to transition from asset ownership to use, often removing barriers to investment in sustainable assets.

SDG reporting - a square peg in a round hole

Given its heritage as a government focussed framework, business reporting on SDG implementation is still an emerging area, and with no clear corporate metrics tied to the 17 goals it can be difficult for organisations to substantiate the link between their investments and operational choices and the SDG impact.

This has seen a rise in claims of 'SDG washing' , but rather than a deliberate attempt by organisations to mislead their stakeholders, some of this is due to companies focussing on the positive end results they are working towards, without the tools in place to measure their overall impact.

Access to good quality data is a key component to accurately tracking and measuring success, and this too can be aided by product-as-a-service models that can often include access to an asset management platform or historical usage data.

Interdependent and interconnected

Like nature and our economy, the 17 SDGs are interconnected, so achieving their goals will require collaboration within sectors and across them. Partnerships are crucial to tackling problems of this scale and together we know we can achieve so much more.

There is hope – according to the OECD , it would take less than 1% of global finance to bridge the gap required to reach the aims set out in the SDGs.

Time and time again we see the private sector, driving progress, innovation and change – and this will be no exception.