How Private Sector Businesses Help Achieve SDGs
The U.N. Sustainable Development Goals (SDGs), to be met by 2030, are 17 goals aimed at increasing environmental and socially sustainable solutions to poverty, inequality and injustice, among other things. The goals are both ambitious and achievable but funding gaps hamper the progress of these goals. Through conscious investments toward SDGs, private sector businesses could close this gap. The U.N. Secretary-General António Guterres calls on business leaders to use their positions of power, finance and influence to help meet the SDGs, to the benefit of the entire globe.
The U.N. Sustainable Development Goals
In 2015, the U.N. created 17 Sustainable Development Goals to be achieved by 2030. The overarching aim of the SDGs is, “peace and prosperity for people and the planet.”
The goals principally involve less discrimination worldwide, eliminating poverty, giving more individuals more economic and educational success, increased justice, prioritizing the environment, improving global health and more.
The SDGs are meant for everyone to tackle, from the average person to national governments and major corporations such as private sector businesses.
The Need for SDG Funding
Reaching all 17 SDGs by 2030 will cost between $5-7 trillion per year, according to the United Nations. Although in 2016, development assistance funds hit a high of $142.6 billion, there is still a need for a much greater infusion of funds and a significant need for the support of private sector businesses.
The lack of available funds from the public sector, specifically, is the main reason why there has not been more progress toward the SDGs. Public sector sources of funding are predominantly national governments and government organizations.
Referencing this lack of funding, Guterres lamented the lack of progress made toward the SDGs and urged business leaders in the private sector to step up. “We need business leaders to use their enormous influence to push for inclusive growth and opportunities,” states Guterres. “No one business can afford to ignore this effort and there is no global goal that cannot benefit from private sector investment.”
Businesses Leading Change Through SDGs
Because there is an apparent need for more corporations to invest in SDGs, it is important to recognize those businesses fighting poverty through a commitment to achieving the SDGs.
The U.N. and 30 leaders of multinational companies created the Global Investors for Sustainable Development Alliance in September 2019. They immediately began supporting initiatives for clean energy in Latin America, Africa and Asia, among other goals.
The United Nations Environment Programme Finance Initiative drafted the Principles for Responsible Banking to serve as guidelines for banks to commit themselves to the SDGs. Worldwide, more than 200 banks have committed to these principles. This figure represents more than one-third of the global banking industry. The signatory banks must report on their achievements, goals and growth regarding the principles. They must also accomplish all principle requirements within a set timeline. This ensures tangible strides toward actualizing the SDGs.
The company, PepsiCo, is also making good strides with the SDGs. It is committed to multiple projects in agreement with specific SDGs. The company established a “Green Bond” worth $1 billion in 2019 to do so.
A notable project is the company’s aspiration to restore 100% of the water it uses for manufacturing to areas that are “high water risk.” It aims to do this by water reuse and recycling initiatives, supplying smallholder farmworkers with “water-saving technologies” and sustainable agricultural techniques. PepsiCo cites SDG 6, “Clean Water and Sanitation,” SDG 15, “Life on Land” and SDG 12, “Responsible Consumption and Production,” as aligning with this particular objective.
The Contribution of Foundations
Private sector businesses fighting poverty go beyond business transactions and profitable decisions. Many companies commit to progressing the SDGs by supporting foundations. Top contributing foundations include the Bill and Melinda Gates Foundation, Fidelity Investments Charitable Gift Fund and Gothic Corporation. Total global funding for the SDGs from foundations is upwards of $216 billion.
All these examples of private sector businesses committing to the SDGs prove it is a worthwhile endeavor that needs support on a broad scale. In the words of Guterres, “Corporate leadership can make all the difference to creating a future of peace, stability and prosperity on a healthy planet.”
– Claire Kirchner