CEO Guide to the Sustainable Development Goals CEO Guide to the Sustainable Development Goals

CEO Guide to the Sustainable Development Goals CEO Guide to the Sustainable Development Goals | 2 Contents Foreword

Leading businesses have long been engaged in efforts to integrate The Sustainable sustainability at the core of corporate Development Goals strategy, decision-making and (SDGs) are the product of governance. extensive multi- stakeholder negotiations The SDGs provide us with a new involving a wide range lens through which to translate of sectors, including global needs and ambitions into business. They set out a business solutions. framework of 17 Goals to tackle the world’s most These solutions will enable pressing social, economic, companies to better manage their and environmental risks, anticipate consumer demand, challenges in the lead-up build positions in growth markets, to 2030. secure access to needed resources and strengthen their supply chains, while moving the world towards The Sustainable the delivery of the SDGs. Development Goals (SDGs) are the product of extensive multi- stakeholder negotiations involving a wide range of sectors, including business. They set out a framework of 17 Goals to

tackle the world’s most CEO Guide to the Sustainable Development Goals | 4 pressing social, economic, and environmental challenges in the lead-up to 2030. The Business & Sustainable Through this CEO Guide, we seek Development Commission’s flagship to amplify the key messages of the report, Commission’s report and to help you Better Business, Better World issued earlier this year, points to flaws turn them into action in your company. in our current economic model which In the following pages, we highlight stand to significantly undermine the the key role that business plays with long-term stability and growth regard to the realization of the SDGs, the world needs. outline how your organization can engage and recommend key steps for The SDGs are positioned as you to take to begin aligning with this a compelling new framework critical societal agenda. to reverse this trend. At this time of political and The goals have the potential to economic uncertainty, strong unleash innovation, economic and visionary CEO leadership growth, and development at an is essential to achieving the unprecedented scale and could be transformation needed to usher in the worth at least $12 trillion a year in inclusive and sustainable economic market opportunities and generate up growth that the SDGs represent. to 380 million new jobs by 2030.

CEO Guide to the Sustainable Development Goals | 5 Your company will already have As WBCSD Council Members and We look forward to engaging our embarked on a sustainability strategy. Commissioners of the Business peers across the business community By reporting your progress against & Sustainable Development in this endeavor, and invite colleagues, the SDGs, you will join this global Commission, we believe that more partners and stakeholders to work movement and by reaching out across sustainable businesses are more with us to scale up action towards sectors and supply chains, we can competitive. 2030 and beyond. collectively accelerate this agenda. We will leverage the SDGs platform Of course, none of this can be to catalyze collaborative action accomplished by business alone. at scale through dialogue and Good governance, economic partnerships across sectors, supply incentives, appropriate and robust chains, government, international legal and institutional framework organizations, science and civil conditions and public-private society. partnerships are essential.

Paul Polman Sunny Verghese Svein Tore Holsether Peter Bakker CEO, Unilever and Co-Founder & CEO, Olam CEO, Yara International President & CEO, WBCSD Chairman, WBCSD

CEO Guide to the Sustainable Development Goals | 6 The SDGs provide us with a lens through which to translate global needs and ambitions into business solutions

CEO Guide to the Sustainable Development Goals | 7 e SDGs co th uld ng u vi n ie lo h c c k Business and A $12 trillion Sustainable a year Development in business value across four economic systems Commission alone by 2030

The Business & Sustainable Development Commission brings together three dozen leaders from the private sector and civil society. They have overseen extensive Food and agriculture Cities and urban mobility Energy and materials Health and well-being US$2.3 trillion US$3.7 trillion US$4.3 trillion US$1.8 trillion research that maps the economic prize that could be available to business if the SDGs are achieved. Creating more than 380 million jobs

Source: Business & Sustainable Development Commission Better Business, Better World,

CEO Guide to the Sustainable Development Goals | 8 The Commission’s flagship

The Commission makes reportBetter Business,paints a compelling Better World 6 key recommendations for business leaders picture for aligning with the SDGs and makes a series of recommendations to business leaders. Build support for the SDGs Regain society’s trust and secure as the right growth strategy in the license to operate by working your companies and across with governments, consumers, the business community workers and civil society to achieve the whole range of Global Goals

Incorporate the SDGs into Drive the transformation company strategy to sustainable markets with sector peers

Push for a financial system Work with policy-makers to oriented towards longer-term pay the true cost of natural and sustainable investment human resources

http://businesscommission.org

CEO Guide to the Sustainable Development Goals | 9 The SDGs and the role of business

While business is not being asked In order to drive global progress at The SDGs will not be to deliver the SDGs alone, this the speed required, governments realized without business agenda cannot be realized without will need to regulate in favor of the meaningful engagement by business. disruptive innovation that this agenda The private sector has a critical role demands. But neither business nor The 17 SDGs and the to play as a source of finance, as a government actions alone will be 169 time-bound targets driver of innovation and technological enough to deliver the transformation. underpinning them, development and as a key engine of represent a comprehensive economic growth and employment. We can only realize our joint goals and interconnected of long-term growth and shared framework. It is also important for business prosperity by collaborating across It has resounding to remain mindful of its core all sectors of society. universal relevance for all responsibilities. The baseline for any stakeholders and nations. company should be to ensure that its Its ambitions effectively operations do not hinder this agenda. transform country into Addressing negative social impacts, in every a developing country. particular in relation to human rights, should be a priority for every company.

CEO Guide to the Sustainable Development Goals | 10 Implications for your company

Risks of 2 Capturing 1 inaction opportunities

Doing nothing is The prize of aligning a costly option business strategies with the SDGs

From a business perspective it is important to understand 3 Governance & 4 The need for the implications of the SDGs transparency collaboration across four key pillars Better information Realizing the SDGs is = better decisions beyond the reach of one company

CEO Guide to the Sustainable Development Goals | 11 1 Risks of inaction

Estimated annual global direct economic Doing nothing impact associated with selected global is a costly option burdens Share of global GDP, 2014

Costs of inaction Market disruption Failures in today’s economic model Forward-thinking businesses are are adding to a list of environmental forging ahead with disruptive new and social burdens that restrain future business models that threaten to growth prospects. These burdens radically reshape markets. represent a mounting business cost and ultimately are turning the world Reduced license to operate into a less viable place in which to The latest global report on trust in conduct business. business from Edelman shows a double-digit decline in the Regulatory risk credibility of CEOs in 80% The SDGs reflect future policy of countries over the course of the direction at the international, national last year. and regional levels. Failing to integrate them strategically represents long- Source: Business & Sustainable Better Business, Better World, term regulatory risk. Development Commission

CEO Guide to the Sustainable Development Goals | 12 2 Capturing opportunities

The prize of aligning their business helps governments Value of incremental market opportunities to achieve the SDGs are likely to be in 2030 US $ billions: 2015 values business strategies 2,020 able to consolidate a strong license Food with the SDGs to operate and to differentiate Cities 1,650 themselves from competitors. Energy & Materials New growth markets Health & Well-being 1,345 1,200 1,080 There is a massive market incentive Regaining trust 1,015 for companies who are able to offer 835 Through aligning with the common 735 685 665 SDG-relevant technologies and language and shared purpose of 365 solutions through sustainable and the goals, meeting basic needs and 345 355 inclusive business models. This protecting human rights, companies economic prize is worth at least will be able to forge a new and

US$12 trillion per year by 2030. improved social contract. Other CleanEnergy Healthy Lifestyles Healthy Mobility Systems Mobility Energy Efficiency Energy

SDGs as a policy roadmap Buildings Solutions AffordableHousing Food Loss &Waste UrbanInfrastructure Companies that align themselves AgriculturalSolutions Largest opportunities Largest NewHealthcare Solutions with the SDGs and are able to Services Ecosystem Forest

communicate clearly about how Circular EconomyManufacturing Source: Business & Sustainable Better Business, Better World, Development Commission

CEO Guide to the Sustainable Development Goals | 13 3 Governance & transparency

Better information This will, over time, start to make Integrating externalities in this way more sustainable companies more will inform constructive conversations = better decisions successful. with governments and other Corporate governance implications stakeholders about the evolving role Pricing and integrating externalities There is more work to be done in of business in society. The ability to price both social and translating the SDGs into the language environmental impacts of doing of corporate governance. It’s critical business and integrate them into for companies to use mainstream risk internal strategy and decision-making disclosure models (such as COSO will influence performance and or ISO enterprise risk management reputation. Scenario analysis, such frameworks) to bridge the gap. as that recommended by the Task Force on Climate-related Financial By creating strong performance Disclosures, will further inform you metrics that are compatible and your board on sustainability risks with existing financial disclosure and opportunities. requirements, companies can disclose, discuss and compare their Task Force on Climate-related The International Integrated risks in a clear and meaningful way. Financial Disclosures Reporting Framework

CEO Guide to the Sustainable Development Goals | 14 4 The need for collaboration

Realizing the SDGs is Systemic approach Simultaneous cross-sector Collaboration in action beyond the reach of cooperation will also be needed in one company order to move towards the overhaul of entire economic systems. Sector approach The Global Agri-Business Business as usual will not achieve Alliance: a CEO-led, private sector the SDGs, nor will innovation by a few Public-private partnerships collaboration committed to pioneers. A new course is required for PPPs will drive innovative solutions harnessing the collective strengths of the sector to tackle the SDGs. entire sectors and industries. to unlock the financing that is required to achieve the SDGs. This is beyond the reach of any one company. Realizing the goals means collaboration between a critical mass The Low Carbon Technology of companies at the industry level. Partnership initiative (LCTPi) is a joint public and private initiative to accelerate the development of low-carbon technologies, scale up their deployment and enable the implementation of business solutions.

CEO Guide to the Sustainable Development Goals | 15 Action points

There are a number of actions that you can take to align your At this time of organization with the SDGs and political and plot a course towards unlocking economic the value they represent. uncertainty, strong and visionary CEO leadership is essential

CEO Guide to the Sustainable Development Goals | 16 Company-level Sector-level 1 Risks of 2 Capturing inaction opportunities Understand and measure 3 Come together 3 4 externalities Collaborate with peers and other The need for Develop a thorough understanding stakeholders to frame the SDGs 3 Governance & 4 transparency collaboration of how your company’s business in the context of your sector. activities translate into economic, environmental and social impacts in Roadmaps 4 the context of the SDGs. Set a collective vision for your industry and collaborate on Set goals 1 2 initiatives to realize sector Individual-level Plot a course towards enhancing transformation. positive and mitigating negative Stay informed 1 2 SDG impacts. Issue calls to action 4 Make the SDGs your business. Call for all companies in the sector Keep up with the sustainable Develop business solutions 2 to align, collaborate and report on development agenda to ensure that Apply an SDG lens at the strategic their progress. your organization is well placed to level to harness your organization’s capitalize upon opportunities and potential to engineer business Policy-level pre-empt disruptive risks. solutions that make your company more successful and sustainable. Advocate 1 2 3 4 Spread the word 4 Openly advocate for the Engage your network of peers on Communicate 3 Consider regular and transparent introduction of key policy and this agenda to create a tipping point finance enablers that will help to for business engagement. communication of SDG performance and progress. achieve a tipping point.

CEO Guide to the Sustainable Development Goals | 17 WBCSD as an enabler for action at scale

The good news is that Sector roadmaps there are a growing number WBCSD is taking steps to leverage our of resources to support extensive networks across multiple industries to create sector-specific business in transitioning roadmaps which articulate a common towards growth in line vision towards realizing the SDGs. with the SDGs. These roadmaps will: WBCSD is pursuing initiatives • Identify the most material ways in that promote business which a sector impacts the SDGs; action at scale. These are • Set sector-specific targets and led by our membership of KPIs; 200 leading companies and supported by strong • Flag barriers and explore solutions; institutional partnerships, • Lay the foundations to advocate for including a Global Network both finance and policy enablers. of over 60 business organizations worldwide.

CEO Guide to the Sustainable Development Goals | 18 Redefining Value In order to measure, value and report their true value, true costs and true profits, companies need to go beyond financial capital accounting and incorporate natural and social capital We invite as well. colleagues, partners and WBCSD is developing innovative frameworks and resources to stakeholders to advance non-financial capital work with us to measurement, valuation and reporting, helping companies improve scale up action their decision-making and produce more effective and meaningful towards 2030 external reporting and disclosure. and beyond

CEO Guide to the Sustainable Development Goals | 19 WBCSD Business Solutions WBCSD has a ready-made suite of Business Solutions are: over 40 Business Solutions that are being driven forward by our member companies. These solutions can Scalable help your company strengthen its Replicable competitiveness and resilience whilst contributing to the realization of a wide range of SDGs.

Measurable Impactful

Beyond business as usual

CEO Guide to the Sustainable Development Goals | 20 SDG Compass In collaboration with GRI and the UN Global Compact, WBCSD has developed a step-by-step guide for companies to align their strategies The guide for business action on the SDGs with the SDGs and measure and

Developed by: manage their impacts. It is supported TM by a live and constantly updated inventory of business indicators and tools. The SDG Compass is available in 12 languages.

www.sdgcompass.org/

CEO Guide to the Sustainable Development Goals | 21 Stay informed

The SDG Business Hub consolidates the voice of forward-thinking business. It provides easy access to resources, tools, case studies and insights that support you in the navigation of this dynamic agenda. www.sdghub.com

SDGBusinessHub

CEO Guide to the Sustainable Development Goals | 22 Key WBCSD contacts

Peter Bakker Peter White Maria Mendiluce Filippo Veglio President & CEO Vice President and COO Managing Director, Natural Capital Managing Director, Social Capital [email protected] [email protected] [email protected] [email protected]

CEO Guide to the Sustainable Development Goals | 23 World Business Council for Sustainable Development Maison de la Paix Chemin Eugène-Rigot 2B CP 2075, 1211 Geneva 1 Switzerland