This archive report was first published on 31 July 2019.
As the world moves towards the year 2030, businesses are being called upon to align their strategies with the Sustainable Development Goals (SDGs). The SDGs, adopted by the United Nations in September 2015, aim to stimulate action in areas of critical importance to humanity and the environment.
By tying their business strategies to the SDGs, companies can meet societal needs, minimize environmental impact, and secure the future of the planet. The goals provide a framework for increased investment in new markets, using them as a 'common language' for progressive enterprises, and an opportunity for long-term partnerships with governments and others.
According to the United Nations, achieving the SDGs will create 380 million job opportunities and unlock at least $12 trillion in opportunities for businesses by 2030. However, businesses that take action to integrate the SDGs into their strategies will have a competitive advantage over those that do not.
Consumer demands are changing, with consumers becoming more responsible in terms of production and consumption. In Kenya, for example, 74 percent of consumers believe that business has a key role to play in achieving the UN targets. Businesses must demonstrate a clear and credible commitment to sustainability to maintain the loyalty of customers and employees.
Managing risks is also a key component of business strategy. By addressing the UN goals, businesses can tackle critical issues such as climate change, poverty, and gender equality, and secure resilient supply chains and stable markets.
The SDGs are also tied to cost reduction through a more efficient use of resources within companies. With the transition from fossil fuels to renewable energy, companies can manage costs against fluctuating fossil fuel prices, ensure a stable supply of energy, and build on their corporate reputation.
Leading companies such as IKEA, H&M, and Google have committed to using 100 percent renewably-sourced electricity within the next 10 years. Investing in renewable energy and efficient water management can reduce waste and improve a company's reputation.
As the CEO of the Kenya Climate Innovation Centre, I urge all businesses to engage with the SDGs as a win-win strategy. By doing so, they can ensure that their business strategies are beneficial to both the company, society, and future generations.
Edward Mungai is the CEO of the Kenya Climate Innovation Centre.
