BUS604: Innovation and Sustainability

In general, businesses succeed when they can meet people's needs with solutions that people want, and when a rewarding business model can be established around that interaction. In general business ask policy makers for clear and robust long term policy frameworks, in which they can operate and which they can use to guide investments, target innovation, and support business development decisions. The new open UN SDG process initiated in 2012 thus motivated many businesses to engage. The private sector in general hoped to be able to inform, inspire and influence the process to deliver an outcome with much more private sector relevance and appeal compared to the MDGs. 

The private sector hoped that the SDG development process would deliver the desired long term political framework that effectively could enable more private sector contributions to a global sustainable development, which were in better sync with societal needs and long term priorities, and therefore which could help secure the long term license to operate and success of the business. 

From 2013, where the OWG was formally established, to 2015 many representatives from the private sector, including the major business organizations, provided their inputs to the SDG development process. 

With the signing of the SDG's in September 2015 the private sector in many ways got the gift it had asked for. The 17 SDG's, the 169 specific targets, and the thousands of indicators represent a long term political framework for business to contribute to sustainable development. They outline exactly that long-term guideline for what will be needed, accepted, and supported by societies in the coming decades and therefore, consequently, what will be demanded by the markets long term. As such they offer a crystal ball for business to "look into the future" and seek guidance for investments and new business opportunities and they represent a new tool box for innovation and market development. To other companies, who may be in the business of "SDG unfit" solutions, the SDGs provide similar guidance to reduce risk and costs, and in some cases perhaps to transform the company and change its business models into more sustainable versions. 

However, from high level political agreements, like the SDGs, to real and short term market impact is a long distance. A distance which may be overwhelming for many short term focused businesses who may be unfamiliar with the processes of collaborating with the UN and policy makers. 

Progress is certainly being made at the political levels. Since the signing of the goals in September 2015 the 193 individual UN Member States have all begun to develop and implement SDG plans at national level. In July 2016, the first 22 countries volunteered to present their plans. In July 2017, 44 more countries presented their plans and the rest of the UN Member States are due to follow each year until 2020. 

The SDG implementation plans are set to guide and drive country specific focus areas, policies, regulations, financing, stimulus programs, awareness campaigns, and many other activities aimed at delivering to the achievement of the SDGs at national level. Progress reporting and review of the national plans is set to take place at the UN over 5 year cycles. 

Fig 2. Novozymes' strategic journey to SDG alignment 

The SDGs are a gift to business because the economic rewards for delivering on the needs defined in the SDGs are very significant. According to the Business & Sustainable Development Commission the potential economic reward from delivering solutions to the SDGs could be worth at least $12 trillion each year in market opportunities and generate up to 380 million new jobs by 2030. 

The business of the SDGs will not materialize from a CSR strategy disconnected from the business core. Going for the business of the SDGs will require that business leaders weave the SDGs into their long-term business strategies and renew their thinking about stakeholder engagements and how the business is created. Collaboration and Public Private Partnerships (PPPs) will be keys to success for business and for governments in the coming decades.