UN SDGs a “long way off” ahead of global summit

Despite the UN Sustainable Development Goals being out of reach, Australian companies are performing strongly in key areas of responsible business, says an industry expert. 

Head of the Australian arm of the UN Global Compact – the world’s largest corporate sustainability initiative – Kylie Porter says she is “not very” confident about achieving the 2030 UN Sustainable Development Goals (SDGs).

“We’re so far behind on the SDGs,” says Porter. “Very few countries are going to be able to say that they’ve achieved the SDGs.

“It’s really unfortunate that COVID contributed quite heavily to that as well. It put quite a few of the goals, and the achievement of those goals, even further back. It’s obviously a really massive shame, but that’s the reality. It’s tough. 

“I think that there are potentially – possibly – some goals that we might end up meeting, but I think as a whole, we’re a long way off meeting the SDGs. If we were going to meet them, we need to really up SDG 17, in terms of how we partner and collaborate.”

But while the achievement of the SDGs may be out of reach, Porter says the goals have helped set an agenda for Australian companies, which are demonstrating significant improvement in ESG and sustainability. 

“Particularly over the last two to three years, we’ve seen a really big increase in the SDGs being part of the corporate vernacular, and companies actually understanding that there is an opportunity for the SDGs to become a tool for fundamental change, progress and improvement,” continues Porter.

“There’s a lot of pressure coming from consumers, from investors, but also a willingness and a desire from CEOs and boards for a company to demonstrate how they can have that strong societal impact. 

“There’s more companies understanding that you can have sustainable growth and balance, purpose and profit.”

SDGs: Where to next

“In the world of the UN, next year is like a stocktake of the SDGs,” explains Porter, with the 2023 SDG Summit in September bringing together international heads for a high-level political forum on sustainable development and a comprehensive review of the goals. 

The summit marks the mid-point of the implementation of the 2030 SDGs and is anticipated to signal the start of “a new phase of accelerated progress” towards achieving the goals.

The UN Global Compact is also anticipated to be involved in discussions, particularly to ensure there is private sector engagement in the review.

“The process that they undertook to get to the SDGs was really quite extensive. I understand that was one of the biggest consultations ever undertaken by the UN,” continues Porter.

“In terms of the SDGs, I’d be hesitant to change them. We’ve really only got eight years left, so it’s about educating businesses on what levers they can pull to positively impact on society without having a negative impact on another lever.” 

Defining responsible business

Operating in over 70 different countries, the UN Global Compact aims to advance responsible business practices, helping to advise, guide and shape the private sector’s contribution to sustainable development. It is a call for companies to align strategies and operations with its ten universal principles, as well as to take action on other societal goals, including the SDGs.

The Australian local network, which is also a non-profit, consists of over 250 members, mostly comprising for-profit entities as well as some social enterprises. It has four key focus areas – business and human rights; environment and climate change; bribery prevention and governance; and sustainable development.

So what does responsible business look like? While there’s no one-size-fits-all definition, Porter says it is centred on “businesses being accountable for the impact that they have on society, and ensuring that impact is demonstrating that they are creating a sustainable future… and they’re finding opportunity for positive impact”.

Australian corporates are particularly ahead of the responsible business curve when it comes to labour rights, approaches to corruption, and environmental action including decarbonisation – which Porter says comes down to “businesses understanding the benefit to the sustainable value of their organisation”.

“If you take decarbonisation, for example. A lot of companies set net zero [emissions] targets before the government committed to net zero, because it’s good for business. There’s a huge long-term financial benefit in committing to reducing emissions – and it also has a societal benefit. 

“Having a strong risk management approach to bribery prevention, again, provides you with safeguards, so not only is it protecting the people in the economies in which you operate, but it’s also avoiding major operational risks, which can see companies going through court systems or in lengthy investigations.”

But while Australian companies are performing well, there are clear barriers delaying progress. Namely, being a young and resource-dependent country, says Porter, as well as being influenced by conservative government policies.

“I think where we’ve lagged behind is because we haven’t necessarily had the right directions from government… We’ve been operating in somewhat of a policy vacuum in this space, from a business perspective, so there haven’t been some of those market drivers.

“We’re not necessarily as mature as other markets, and we decide to follow. I don’t think there’s necessarily anything wrong with following and learning, but at the same time, there’s probably some areas that we need to step up.

“I think one of the big considerations is that sometimes these companies are not as strong at storytelling and [talking] about what they’ve actually succeeded in.”

Porter advises three key action items for Australian companies looking to better their responsible business practices. Firstly, set a science-based emissions target to help gauge the best path for the company to reach net zero. 

Secondly, complete the SDG accelerator course through the UN Global Compact to understand which goals the company can best lead on and shape to create change. 

Finally, conduct a thorough investigation into the company’s supply chain, regardless of its size, to identify if they have or are at risk of having modern slavery, and take the steps to address that as needed.