Study finds corporate progress on UN’s Sustainable Development Goals but room for improvement

New research has revealed that four in five companies studied now include a commitment within their sustainability reports to the UN’s Sustainable Development Goals (SDG), but fewer than half set measurable commitments on how they will meet these targets. The State of Progress: Business Contributions to the SDGs study by the Global Reporting Initiative (GRI) and Support the Goals analysed a sample of more than 200 companies around the world that produced a GRI report in 2020. It specifically looked at how these companies were addressing the SDGs. These are a collection of 17 interlinked global goals designed to be a "blueprint to achieve a better and more sustainable future for all". The SDGs were set up in 2015 and are intended to be achieved by 2030. While the SDGs were adopted by all UN member states, their success hinges on the ability to engage the private sector, said the GRI on releasing the results of the study. “It is clear that by embedding the SDGs within corporate disclosures, businesses can change their ways of working through embracing sustainable strategies and practices,” it added. The latest analysis by the GRI, which helps companies report their on their ESG performance through its GRI Standards, points towards progress on SDGs integration but suggests there is more to do to assess this impact. The study’s findings show that 83% of companies state they support the SDGs and recognise the value of aligning their reports with such goals. In addition, 69% of companies articulate which goals are most relevant to their business, with 61% specifying how their actions support the SDGs. But only 40% of companies set measurable commitments on how they will help achieve the SDGs. And just 20% of those studied include evidence on how they assess the positive impact of SDGs. Peter Paul van de Wijs, GRI chief external affairs officer, said it is encouraging that most GRI reporting companies are committed to align with the SDGs. But he said the “urgent next step is to ramp up the role of the private sector in contributing to solutions for fulfilling the goals”. “This requires more in-depth and quantifiable disclosure, which links SDG performance with business strategy. Doing so not will only increase progress on the goals but it can also unlock opportunities for innovation and collaboration,” he added. Colin Curtis, founder and director of the Support the Goals initiative, which helps reward businesses for supporting the SDGs, said it’s “wonderful” to see that the majority of businesses studied are showing their support. “We now urgently need to see an increase in the number of businesses setting measurable targets that contribute to the SDGs, reporting on their progress and – crucially – helping their suppliers understand how they can get involved,” added Curtis. The GRI study was based on a sample of 206 companies. It analysed their published GRI sustainability reports and information from their websites. It applied the Support the Goals methodology, using a traffic-light system on SDG performance across key areas. The resulting report suggests how companies can improve their SDG communication and performance. It advises companies to provide targets on how they support the SDGs, particularly those that connect most closely to their activities, products or business relationships. It urges organisations to deepen reporting on their positive contributions to the SDGs, while also responding to stakeholder demands for transparency on negative impacts. The report also advises companies to make their SDG data easily accessible by using internationally recognised frameworks. And finally, it recommends more collaboration on SDG reporting, sharing practices both up and down the value chain, while doing more to engage suppliers.