The SDGs cover broad challenges such as economic inclusion, diminishing natural resources, geopolitical instability, environmental degradation and the multifaceted impacts of climate change. The Sustainable Development Goals (SDGs) are the fundamental cornerstone to secure future economic and business growth by eradicating poverty in an inclusive way, while protecting the environment. The 17 SDGs are accompanied by 169 specific, global and universally applicable targets. In our industry, we have seen how the goals have shaped the business environment, and for the better. This demonstrates how companies with SDG-aligned business models can benefit directly from new sources of capital.6. Companies may not be able to continue to create capital over the long term if natural, social, financial and manufactured capital is being eroded elsewhere. Investors, regulators and — more broadly — society are increasingly demanding greater transparency around nonfinancial performance of organizations to assess their true long-term value. However, financial institutions have an … The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by all United Nations Member States in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. Sustainable Development Goals – how will they impact your business? In response, businesses must broaden the scope of their reporting and seek new ways of communicating nonfinancial performance. Supply chains are particularly exposed to the effects of climate change and depletion of natural resources, which align with SDG Nos. Especially SDGs referring directly to economic growth, sustainable industrialization, innovation and sustainable production have attracted a lot of attention within major industries. The purpose was to produce a set of universal goals that would help combat the urgent environmental, political and economic challenges facing our world. Review our cookie policy for more information. I was fortunate to attend the UN Summer Academy in Bonn, Germany from August 22-26 to learn more about the Sustainable Development Goals (SDGs). Show article references#Hide article references, Business & Sustainable Development Commission, Nonfinancial reporting advisory and assurance, Building better engagement for the new Sustainable Development,”, World Bank Launches Financial Instrument to Expand Funding for Sustainable Development Goals,”, Climate finance where government and private sector cash has flowed to projects through climate-focused multilateral public funds, Innovative private sector financial products, such as green bonds that have been launched, Identifying the SDGs that have the biggest impact in terms of risk and opportunity over the long term and where the company has the biggest ability to contribute to the progress toward the goals, Determining the levers available to scale impact through changes to business models, procurement strategies, products and services, Publicly committing to the SDGs to tackle relevant goals, Establishing targets and KPIs that are closely aligned with the relevant SDG, Aligning any existing targets and monitoring and measurement methods with these new targets and KPIs, Sustainability strategies are realigned to achieve both corporate goals and the SDGs, Identifying underserved geographies and segments of society, which could benefit from innovative products and services developed in a sustainable way, Investing in education, capacity building and work opportunities to stimulate the economy through increasing the local economic power while preserving the environment, Reducing the link between economic growth and intense use of natural resources and materials through energy and water efficiency, lower carbon, and circular economy ideas, Identifying collaboration opportunities with peers, customers, suppliers, academia and nonprofit organizations, as well as across industries, to achieve mutually beneficial solutions, leverage networks, achieve scale and share responsibility, Partnering with governments, cities and civil society to deploy the financial, technological and human resources of business to promote development, stability and trade, Aligning existing reporting and communication with the SDGs to both discuss performance in the context of the expectations set by the SDGs, and also align disclosures with the language of the SDGs to establish a common dialogue among stakeholders, Developing systems to integrate the management of SDG issues into everyday business decision-making. The SDGs will likely have an important impact on the purpose of many companies around the world. By working through the process of identifying the most relevant SDGs and setting targets and KPIs, it is important for companies to reassess how well existing practices are aligned with the issues and targets. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. Be Intentional About Sustainability. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. To create development that can be maintained and sustained without causing further harm to the environment. We expect to see a redirection of investment flows (both public and private) toward the global developmental challenges framed around the SDGs. Our teams can help you understand risks to supply chains such as human rights issues, resource constraints, climate change and government payments. The surveyed investors use a wide range of nonfinancial information across all stages of their investment decision-making. 12, 13, 14 and 15. According to BNP Paribas, which arranged the bond as part of its own SDG initiative, the return on investment of the bonds is directly linked to the stock performance of companies included in the Solactive Sustainable Development Goals World Index of recognized leaders in their industries on socially and environmentally sustainable issues. They define the agenda for inclusive economic growth through to 2030 and were developed with inputs from business, academia and nonprofit organizations globally. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Goals and targets to advance corporate social responsibility (CSR) and sustainability have been widely embraced by the private sector. The Sustainable Development Goals (SDGs), otherwise known as the Global Goals, are a set of objectives within a universal agreement to end poverty, protect all that makes the planet habitable, and ensure that all people enjoy peace and prosperity, now and in the future. The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by all United Nations Member States in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. According to the IFAC's (The International Federation of Accountants) Sustainable Framework 2.0, accounting is important in the sustainable development process. The financial services sector has the least direct impact on the Sustainable Development Goals (SDGs) compared to all other sectors. The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by all United Nations Member States in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. 1. However, useful tools are emerging for companies to understand better how they can contribute to the SDGs in a holistic way. The Sustainable Development Goals (SDGs) were born at the United Nations Conference on Sustainable Development in Rio de Janeiro in 2012. The Sustainable Development Goals (SDGs) were born at the United Nations Conference on Sustainable Development in Rio de Janeiro in 2012. This is shaped around 3 main factors, being the economy, the social community and the environment. ‘The beauty of the goals is that everyone can contribute, and every contribution, small or big, will make an impact on our world. Focusing purpose. Published: 12:00 AM 8, 9 and 12 refer directly to economic growth, employment, sustainable industrialization, innovation and sustainable production, many of the other SDGs also offer business advantages through expanding into new markets, attracting talent and reducing risk from operations. We recognize that the SDGs may require a new way of thinking. Collaboration will likely be the main enabler for successfully addressing the SDGs and scaling up efforts. EY is a global leader in assurance, consulting, strategy and transactions, and tax services. Trillions of dollars in public and private funds are to be redirected towards the SDGs, creating huge opportunities for responsible companies to deliver solutions.” Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. UNITED NATIONS TRANSFORMING OUR WORLD: THE 2030 AGENDA FOR SUSTAINABLE DEVELOPMENT sustainabledevelopment.un.org A/RES/70/1 Assisting communities to achieve the SDGs also creates opportunities for investors to manage their own risks and build out their portfolios. 16), inequality (SDG No. Multidisciplinary professional services organization. Our commitment to help create a world that runs entirely on green energy is our commitment to help limit climate change, which is central to progressing action on the UN Sustainable Development Goals (SDG). The goals form the core of the UN’s 2030 Agenda for Sustainable Development, a ‘blueprint to achieve a better and more sustainable future for all’ by 2030. Our pragmatic business approach helps organizations build new evaluation frameworks that measure and value financial and nonfinancial outcomes. While SDGs Nos. All Rights Reserved. It is not possible to have a strong, functioning business in a world … With 193 governments agreeing to deliver 17 goals tackling major world issues by 2030, change lies ahead for business, not only to rethink strategy and business behaviour to align with the goals, but also to assess and evidence their impact. Sustainable Development Goals provide business risks lens. Vestre Havnepromenade 5 According to the third EY Investor Survey (2017),3 weak corporate governance, poor environmental performance, resource scarcity, climate change and human rights risks are most likely to alter investors’ decisions. EY | Assurance | Consulting | Strategy and Transactions | Tax. Taking action on the Global Goals DK - 9000 Aalborg - Denmark, Environment, Climate Change and Green Growth, Urban Development and Social Infrastructure, Quality and Business Integrity Management. 3. 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