A GLOBAL COMPACT FOR SUSTAINABLE DEVELOPMENT

THE POST-2015 DEVELOPMENT AGENDA & THE SDGs

When the United Nations Member States in September 2015 adopt the Post-2015 Development
Framework, including a set of global Sustainable Development Goals (SDGs), business will have
a globally-accepted and practical definition of sustainable development. This will help companies
align their own strategies and practices with global priorities and communicate them, as well
as offer a common platform for dialogue and partnerships with other companies, civil society
organizations and governments.
The SDGs build on the Millennium Development Goals (MDGs) and seek to finish what they set
out to achieve in priority social areas like health, women’s empowerment and education, while
expanding the environmental goals and placing new emphasis on the enabling environment needed
for sustainable development to flourish. For their notable successes, one broad conclusion is that
the MDGs underplay governance and economic factors that are driving forces in achieving social
well-being. The forthcoming SDGs go beyond the MDGs, expand the scope of environmental goals,
and focus on the enabling environment by promising more peaceful, more inclusive and better
governed societies.

WHY ARE THE SDGs RELEVANT TO BUSINESS?

Strong markets and strong societies go hand in hand. Even the most principled and best-managed
companies are challenged to thrive in communities marked by instability, to find skilled labour
where adequate education is lacking, or to withstand natural disasters stemming from climate
change. Successful implementation of the SDGs will strengthen the enabling environment for
companies around the world.
The SDGs hold the potential to guide companies in their long-term investments, strategic
prioritization and goal setting. Whereas all SDGs may not be relevant to every company, there is
a strong and proven business case for companies to contribute to the realization of each SDG, for
example, opening new market opportunities, improving productivity, mitigating risks and improving
a company’s reputation. With the billions of dollars in investments that public and private sector
players are expected to redirect towards the realization of the SDGs, the upside for companies able
to deliver technologies and solutions will likely grow very significantly over the coming years.

ALIGNING GOALS WITH THE SDGs KEY POINTS:

The SDGs represent an unprecedented • THE ACHIEVEMENT OF THE SDGs WILL
opportunity for companies to align their STRENGTHEN THE ENABLING ENVIRONMENT FOR
BUSINESS.
own sustainability goals with goals for
the broader society. This in turn, can be • AS ESSENTIAL ECONOMIC AGENTS AND JOB
an effective tool for communicating to CREATORS, BUSINESS CAN CONTRIBUTE
stakeholders about the company’s role SIGNIFICANTLY TO DEVELOPMENT PRIORITIES.
in society and specific contributions to • BY EMPLOYING MORE RESPONSIBLE AND
the SDGs. To put their sustainability SUSTAINABLE BUSINESS PRACTICES, COMPANIES
goals on record as commitments to the CONTRIBUTE TO THE ACHIEVEMENT OF THE SDGs.
SDGs, companies are encouraged to
• THE POST-2015 AGENDA WILL REQUIRE
submit them to the United Nations at TRILLIONS OF DOLLARS OF INVESTMENT EACH
business.un.org. YEAR – PRESENTING ENORMOUS OPPORTUNITIES
FOR WELL-POSITIONED COMPANIES.
HOW CAN BUSINESS CONTRIBUTE TO THE IMPLEMENTATION OF THE SDGs?
The combined capabilities of private and state-owned enterprises and investors are expected to be
major resources to be tapped in the drive to implement the SDGs. More than ever, businesses will
be invited to contribute, invest and partner.
In all countries, including those that have remained at the base of the economic pyramid,
commitment to a principled-based approach to business can simultaneously drive company success
and contribute to the sustainable development of a society and economy. And by locating core
operations and supply chains in myriad countries and investing in infrastructure and their work force
for the long term, companies can create jobs, generate income, contribute to education and transfer
of knowledge, and have a significant and lasting effect on societies in which they operate.
Companies look to core business, philanthropy, advocacy and partnerships to support society –and
these are all key elements to advance the SDGs. Most importantly, companies should carefully
consider business risks and opportunities related to each SDG, and transform their business
models to avoid doing harm and gradually improve their contribution to the SDGs. For companies
to effectively incorporate sustainability into core business models and strategies, top-level
commitment by management and board is crucial. Effective integration also requires establishing
accountability for sustainability priorities and goals to individual business units and individuals
across the organization.
With its reach, ability to innovate and implementation capacity, business can be a powerful partner
for the public sector and civil society organizations looking to develop and deliver more integrated
solutions to global challenges. Partnership and collective action can often lead to a greater impact
and help overcome systemic challenges.

ENGAGING WITH THE UN GLOBAL COMPACT GLOBALLY AND LOCALLY

The UN Global Compact offers a practical framework for companies around the world to engage on
issues covered by the SDGs.
The UN Global Compact is the world’s largest voluntary corporate sustainability initiative, which
has grown to over 8,000 corporate participants and 4,000 non-business participants based in 160
countries since its launch in 2000. In line with its UN General Assembly mandate to “promote
responsible business practices and UN values among the global business community and the UN
System”, the UN Global Compact calls companies everywhere to voluntarily align their operations
and strategies with ten universally-accepted principles in the areas of human rights, labour, the
environment and anti-corruption, and to take action in support of UN goals.
Businesses are asked to respect and support these principles and goals. At a minimum, the
corporate responsibility to respect means businesses are expected to avoid causing or contributing
to harm in their operations and throughout their value chain. In addition, companies are encouraged
to support UN goals, including the upcoming SDGs, by taking action through their core business
(i.e. products, services and business models), philanthropy, public policy advocacy and partnerships
as discussed above. Already, thousands of UN Global Compact participants around the world
are contributing to global development priorities by aligning with the ten principles and through
partnerships – both with other companies and with civil society, governments and the UN – that
deliver outcomes no sector can achieve alone.
At the core of the UN Global Compact is a CEO commitment, which sends a strong signal
throughout the organization that shifting towards sustainability is a strategic priority. And through
Global Compact LEAD, innovative leadership practices are shaped, including for Boards of Directors.
The UN Global Compact, although voluntary, has a mandatory, annual reporting requirement, the
Communication on Progress (COP), which is a public disclosure to stakeholders on progress made
in implementing the ten principles and in supporting UN goals. Thousands of companies are publicly
reporting on their strategies and activities related to corporate sustainability and sustainable
development.
The UN Global Compact has for over a decade developed a comprehensive global framework that
supports business engagement and platforms, including Caring for Climate, the CEO Water
Mandate, the Women’s Empowerment Principles and Business for
Peace, which drive individual and collective business action related
to specific sustainable development challenges. Each of these issue
platforms has hundreds of business participants from across all
regions of the world and offers a scalable platform for engagement KEY POINTS:
and SDG impact – connecting global frameworks and principles • CORPORATE
with local action and delivery. Each of these platforms has built-in SUSTAINABILITY IS THE
accountability measures. DELIVERY OF LONG-TERM
VALUE IN FINANCIAL,
Global Compact Local Networks exist in more than 85 countries. ENVIRONMENTAL,
Local Networks are key to the Post-2015 potential of corporates SOCIAL AND ETHICAL
sustainability. They perform increasingly important roles in rooting TERMS.
the UN Global Compact within different national, cultural and • COMPANIES HAVE A
linguistic contexts. They are organized and run locally – led by RESPONSIBILITY TO
business but always bringing in key stakeholders. Local Networks RESPECT UNIVERSAL
play a key role in mobilizing companies around the MDGs and the PRINCIPLES AND ARE
ENCOURAGED TO TAKE
upcoming SDGs, in relation to policy dialogue, implementation VOLUNTARY ACTIONS TO
strategies and brokering partnerships at local level. Likewise, the UN SUPPORT UN GOALS.
Global Compact’s integrity measures, namely the COP, constitute
an important accountability mechanism that can contribute to track
progress relating to the SDGs.

AN ENABLING ENVIRONMENT FOR CORPORATE SUSTAINABILITY

A growing number of businesses are committed to integrating sustainability into their organizational
DNA and long-term outlook. However, there is still a need for many more companies to develop
sustainable business strategies and to ensure those that adopt more responsible practices are
adequately rewarded. By creating – both via legislation and soft law - an enabling environment that
fosters corporate sustainability, governments can play an important role in this transition.