Professional Documents
Culture Documents
71%
of businesses say they are
already planning how they
will engage with the SDGs
13%
of businesses have identified
the tools they need to assess
their impact against the SDGs
41%
of businesses say they will
embed SDGs into strategy
and the way they do business,
within five years
90%
of citizens say it’s important
for business to sign up to the
SDGs
www.pwc.com/sdg
Contents
Foreword 3
Overview 6
Results at a glance 8
Contacts 30
Foreword
2015 is a momentous year for change. It could be a pivotal year in human history turning
the tide on the major social, economic and environmental issues of our times. With the
ratification of the Sustainable Development Goals (SDGs), the way we do business has
the potential to fundamentally shift. A new demand for assessment and accountability
could drive real change across the business community, with a sense check against the
impact on society.
Driven by the UN, the SDGs sense if a CEO wants to be business in a way that resonates
are a set of global goals that on the receiving end of ‘fair’ and can be easily interpreted
governments are expected to regulation and a welcoming and incorporated into normal
adopt. When they sign up to licence to operate. It’s not business operations. No NGO
them, they will look to society, about business implementing speak or political rhetoric, but
and business in particular, the SDGs - it’s about business practical guidance on how
for help to achieve them. It having a strategy that, at to engage and the business
will herald a major change the national level, is goal- benefits of doing so. After
for business. Governments congruent with government all, the investment involved
will want to measure and ambition. for business should not be
monitor progress and manage underestimated. Determining
the effectiveness of their Equally, there is real requirements, accessing the
interventions. In turn, business opportunity here. The SDGs right skills and developing
will need to assess its impact put a spotlight on some of the the right tools, will be top
on the SDGs and review its world’s biggest issues and our priorities to understand and
strategy accordingly. It will ability to shape our impact on deliver impact assessment, goal
need to collect, assure and them, for good or bad. To my setting, strategy development,
Malcolm Preston report new data, evolving its mind, this represents a catalyst operational change and
PwC, Global Sustainability reporting too. for innovation and new market reporting in this new world.
Leader opportunities for the savvy CEO
It would seem sensible that a to embrace and drive growth. Business will also need to
CEO will want to know if their rethink its strategy and change
business operations (across its So how can government get the behaviours to evidence its
value chain) support or detract best from business? There is contribution and, hopefully, be
from the government’s goals. no clear request for support as seen to contribute positively
This just seems to be common- yet, it is early days. But when it to the government’s goals.
comes, it needs to be pitched to
International companies will the Global Reporting Initiative majority. This level of change Secondly, we are already
need to get to grips with the (GRI) who have joined forces to will take many years and seeing governments using
differing priorities of different guide their members through potentially cross the tenure of the draft SDGs to inform the
countries and the national the requirement) and they several CEOs before it becomes development of policy and
policies in place to deliver were keen to hear the business business as usual. Will we see regulation. Those businesses
them. It’s not about tweaking perspective too. a new ‘legacy commitment’ that are aware of and engage
what they do, but looking at emerge with outgoing CEOs with the SDGs are more
core strategy. With no holistic What our analysis shows is wanting assurance that their likely to have alignment with
view or understanding of how that there’s good awareness strategies to embed the SDGs emerging policy, giving them
the SDGs interlink with each of the SDGs that is translating will not be over turned by their more resilient business models.
other or if a positive impact at many levels into great successor?
in one area creates a negative engagement. However, there’s So what’s the starting point
impact in another, it may prove little consistency in approach Our work with business for business? How does this
complex to navigate... there or priorities. Real direction and policy makers in this translate into action and next
will not be a “one size fits all” is needed, written in a way area points to two critical steps? For many, the best place
answer. that’s tailored to resonate business imperatives. Firstly, to start will be to understand
with the business community businesses that align and what impact a business is
We wanted to find out how and inspire action. It’s also engage their strategy with having against each of the
engaged and prepared business clear that this is not going national priorities will most SDGs, recognising that these
is with the SDGs and to to be delivered on day one. likely be given their licence all differ country by country.
understand their current plans Admittedly, with some citing to operate, by governments After all, a business needs
and vision. We shared our an impending data revolution, and citizens alike – those that to understand which of its
thinking with SDG Compass overnight delivery is not do not, or who struggle to activities are preventing or
(the combined working group expected. But what will cause demonstrate alignment with hindering governments from
of the UN Global Compact concern is the potential for the national interest, cannot achieving their goals, or worse
(UNGC), The World Business slow progress as the five year expect equivalent treatment, taking them in the wrong
Council for Sustainable vision reveals significant and so creating competitive direction. Then businesses need
Development (WBCSD) and fundamental gaps for the disadvantage. to understand, strategically,
Peter Bakker, President & CEO, World Business Council for Sustainable Development
End hunger, achieve food security and improved nutrition and promote
sustainable agriculture
Ensure healthy lives and promote well-being for all at all ages
Ensure inclusive and equitable quality education and promote lifelong learning
To better appreciate the opportunities for all
approach global companies
are adopting, with regard to
the SDGs, we conducted two
Achieve gender equality and empower all women and girls
separate surveys this past
summer – one for business and
another for citizens – that were
promoted through social media Ensure availability and sustainable management of water and sanitation for all
and shared with PwC clients,
United Nations Global Compact
(UNGC) members and Global
Reporting Initiative (GRI) Ensure access to affordable, reliable, sustainable and modern energy for all
members. We wanted to know
just how aware companies and
citizens were of the SDGs and Promote sustained, inclusive and sustainable economic growth, full and
how companies were planning productive employment and decent work for all
to engage with them.1 The
reason is simple and pressing.
Build resilient infrastructure, promote inclusive and sustainable industrialisation
Once ratified, governments
and foster innovation
will formulate new regulation,
incentives and strategies to
achieve the SDGs, gaining
momentum to deliver lasting Reduce inequality within and among countries
change.
1 PwC SDG Engagement Survey Strengthen the means of implementation and revitalise the global partnership for
was conducted during June-July sustainable development
2015 and generated 986 business
responses and 2015 citizen
responses. Source: United Nations, Open Working Group; Global Goals, www.globalgoals.org
1 2
92%
Government is seen as having prime
responsibility to achieve the SDGs by
business and citizens alike (49% of business
responders and 44% of citizens ranked
government first)
SDG awareness amongst the business
community is high (92%) compared to
the general population (33% citizens
aware of SDGs)
3 4
Business has already started to There are distinct gaps in how to engage,
take action: especially in areas where tough decisions
71%
are required.
13%
Only 13% of businesses
29%
Only 29% of businesses are
Despite only 10% business responders ranking business have identified the tools setting goals, but what gets
with prime responsibility, 71% business say they are they need measured gets managed,
already planning how they will respond to the SDGs. what’s in an objective gets
done.
5 6
22% 4%
90%
of citizens believe it is
78%
of citizens said they were
22% of business responders say they are doing nothing important that business more likely to buy
right now, but this drops to 4% when thinking about signs up to the SDGs the goods and services
what they’ll be doing in five years. of companies that had
signed up to the SDGs.
“[The SDGs are] new for us. We don’t have enough knowledge about it but
everything that means growth, knowledge and contributing to a better
world is part of our essence and to see that our company obtains recognition
and that it can be sustainable and competitive.”
Engineering & Construction, Kenya
Chemicals Communication Energy, Engineering Financial Healthcare Manufacturing Professional Retail and Technology
Utilities and and Services Services Consumer
Mining Construction
Question to Business:
Q. With an industry focus on a limited number Q. Once developed and shared with your own
of SDGs, is there opportunity for industry industry, are you willing to share best practice
associations to support their members, and with other industries? This would fast track
create best practice and share knowledge? thinking for business on SDGs that they’ve
Can you look to them for advice, support and prioritised lower.
guidance on measuring your contribution to
specific SDGs?
However, at the moment, Prioritising one or two SDGs Also, if the ‘cherry picking’
The SDG framework has companies look set to ‘cherry might make sense internally is driven by the front facing
been devised to be adopted pick’ the SDGs they want to (and might make for good teams in PR looking for strong
as a whole with the business focus on and ignore others sustainability PR) but, from messaging to appeal to the
impact across all 17 goals that don’t meet their corporate an honesty and transparency media, no one is pushing for
intended to be viewed in its priorities or comfort zones. perspective, governments, genuine understanding that
entirety (see Figure 4: The Just 1% of companies we citizens and other stakeholders could embed change and drive
Global Goals). For business, surveyed plan to assess their are likely to be less impressed. business performance that
the aim is to understand the impact on all 17 SDGs – With 90% of citizens we more closely aligns with what
impact of its operations and reflecting the spirit of the SDGs. surveyed saying that it’s governments are trying to
activity, taking into account 34% said they were planning important for business to sign achieve.
its positive and negative to assess some SDGs that are up to the SDGs and 78% saying
effects, and if it offers relevant to their business they would change their buying Can a business really be
help or a hindrance to the (see Figure 5: Business is behaviour because of SDGs, expected to focus on all 17
governments of the markets planning how to assess their public engagement has the SDGs? 44% of the companies
it is operating within. impact on the SDGs). potential to be high. we talked to say they plan to
30%
20%
10%
0%
We have no intention We plan to assess our We plan to assess We plan to assess We plan to assess our Don’t know
to assess our impact impact on the SDGs our impact on some our impact on all the impact on all 17 SDGs
on the SDGs but have not thought of the SDGs and SDGs and indicators and indicators
through how indicators relevant to relevant to our
our business business
Source: PwC SDG Engagement Survey, 2015
assess all or some of the SDGs are. It’s less about picking
that are relevant to them. This the easiest, most obvious or “We will study and understand the SDGs and
could simply be a rational positive ones, and more about how they have touch points and impacts on
cost benefit trade-off and picking the ones that are
potentially a sensible approach material to the business.
our organisation. As a socially responsible
– a recognition that they need The suspicion, considering organisation, we will respond to the SDGs
to start somewhere. the SDG priorities expressed and apply ourselves and implement those
by companies, is that this isn’t that (1) impact the business and (2) can be
Perhaps, but only if those the case at present. most effectively implemented for the common
companies really comprehend
how all 17 SDGs impact good. A focus on local communities around the
their value chain and they operations will be the point of departure for
have thought through how selected SDGs.”
interconnected these goals Metals, Mining & Extraction company, Colombia
Question to Business:
Q. How do you manage your Q. How do you select your Q. Should you cherry pick
stakeholders’ expectations starting point? Do you focus the best SDGs for your
when you want to focus on on the SDGs that are material business or the best ones for
a limited number of SDGs, if to your business? Or the the planet?
the expectation is that you SDGs you can contribute
should know your impact positively towards? Or the
across all 17? How do you SDGs on which you have the
avoid a challenge to your biggest impact?
reputation?
It’s of concern then that some Strong institutions) didn’t growth strategy is all well and
Where business has an impact goals consistently fail to be appear in any top five for good if companies have a fully
it tends to see opportunity prioritised highly regardless of over 80% of businesses. Is rounded understanding of
as well. (see Figure 6: industry (see Figure 7: Which this a reflection of business their sustainability impact and
SDGs – Business impact and SDGs could be left out in the deprioritising them or opportunity. With too many
opportunity) It makes sense cold?). SDG 14 (Life below recognition that achieving companies that isn’t the case.
that those SDGs in the high water), SDG 10 (Reduced other SDGs may potentially
impact/high opportunity inequalities), SDG 1 (No have knock on benefits? Take SDG 14 (Life below
quadrant are more likely to get poverty), SDG 2 (Zero hunger) water), which aims to
tackled first. and SDG 16 (Peace and justice ‘Cherry picking’ goals and conserve and sustainably use
aligning SDG action to business the oceans, seas and marine
45
Decent work and
economic growth
40
35
30
Climate action
25 Responsible
Quality education Industry, innovation and infrastructure
Impact
consumption and
Gender equality Good health production
20 and well-being
Affordable and clean energy
0
0 5 10 15 20 25 30 35 40 45
Opportunity
Q. Is SDG 8 (Decent work and economic growth) a good Q. It’s clear that some SDGs are not on the radar for business.
starting point for the UN to focus on to build and drive Are they covered elsewhere or is there a risk they won’t be
business engagement around the SDGs? What would the achieved? Is a plan of action required to ensure these SDGs
benefit be of driving SDG 8 (Decent work and economic are achieved?
growth) on other SDGs eg. Would it have a positive impact on
SDG 1 (No poverty) and a negative impact on SDG
12 (Responsible consumption and production) perhaps?
3 Department of Economic & Social Affairs, David Le Blanc, Towards integration at last? The sustainable development goals
as a network of targets, http://www.un.org/esa/desa/papers/2015/wp141_2015.pdf
4 World Economic Forum, Bjørn Lomborg, What are the smartest goals for sustainable development? https://agenda.
weforum.org/2015/05/what-are-the-smartest-goals-for-sustainable-development/?utm_content=bufferec136&utm_
medium=social&utm_source=twitter.com&utm_campaign=buffer
Least impact/opportunity (mean index score <15) Moderate impact/opportunity (mean index score 15-20)
Greatest impact/opportunity (mean index score >20)
Source: PwC SDG Engagement Survey 2015.
Q. Thinking about the MDGs, if MDG issues are not being Q. Is there work to be done to communicate that by driving
picked up by business through the SDGs (neither SDG 1 SDG 8 (Decent work and economic growth), SDG 1
(No poverty) nor SGD 2 (Zero hunger) are a strong focus (No poverty) nor SGD 2 (Zero hunger) will be improved?
across the business community), what can be done differently Standing in the shoes of business, will an understanding of
over the next 15 years to engage industry better to make sure the relationships between the 11 SDGs ranked in their top five
these goals are achieved? and the other SDGs, help business better see the true extent
of their role in society? Some work on the interplay of the
SDGs across the Food.Water.Energy nexus has already been
undertaken.5
5 Stockholm Environment Institute, Cross-sectoral integration in the Sustainable Development Goals: a nexus approach, 2014
This is a strong mandate and that general society deem organisation who had signed
Citizens are keen to see reinforces the business case to important rather than focusing up to the SDGs. This increased
business sign up to the take action. But, interestingly, just on the goals where the to 90% for citizens from Latin
SDGs (see Figure 9: Citizens the priorities for business, company believes it has the America.
think it’s very important that whether looking at impact most impact and opportunity?
business signs up to the global or opportunity, are markedly After all, business is dependent To reinforce the point, consider
goals) with Argentina (80%) different to those of the global on society for employees, how citizens and government
and Malaysia (70%) the most citizens we talked to (see customers and its reputation are aligned on the issue of
impatient. Figure 10: Are business and and licence to operate. So if SDG 1 (No poverty) – it’s a
citizens on the same wave business is targeting thinking prime focus for the UN when
length?). SDG 1 (No poverty), towards priorities not on they communicate about SDGs
SDG 2 (Zero hunger) and the consumer agenda, is this but is not a high priority for
SDG 6 (Clean water and indicative of a disconnect in business. On the other hand,
sanitation) are in the top five the way business identifies and SDG 13 (Climate action)
SDGs that citizens cite but values its dependencies? appears in the top five for both
these barely registered with the business and citizen groups.
companies. Citizens also place In the ‘front-facing’ parts of the Could this synergistic view,
SDG 15 (Life on land) and business such as marketing, combined with a potential
SDG 16 (Peace and justice product development and binding climate change
Strong institutions) much customer service, companies agreement at the COP21
higher up their agenda. ignore consumers at their peril. Climate Conference in Paris,
78% citizens reported that they prove to be a tipping point
To what extent should business would be more likely to use in how the world tackles this
be taking a lead from the goals the goods and services of an pressing SDG?
Question to Business:
Q. If it’s important to your customers, your Q. Is SDG 13 (Climate action) the best SDG
stakeholders, should it be important to you? to partner with citizens to achieve, as it’s the
Is there an opportunity to align your focus to SDG with strongest appeal to both groups?
that of your clients?
Russia
UK 44%
67% Germany
France 66% China
53% 49%
UAE
55%
USA Japan
50% 30%
Thailand
Nigeria India 40%
58% 58%
Malaysia
It’s very 70%
Brazil
important for 60%
business to
South Africa Australia
sign up 69% 51%
Argentina
80%
Source: PwC SDG Engagement Survey, 2015 Global 59%
Figure 10: Are business and citizens on the same wave length?
Q. Please rank the five SDGs that could represent a business opportunity for your company in the future (mean index score).
Q. From the list below, please rank the five SDGs that you consider most important to you (mean index score).
45
40
35 B1
Decent work
and economic
30
B2 growth
Business opportunity
Good
Industry,
B5 health B4 C2
25 innovation and Climate action
infrastructure
Responsible
consumption
B3 and well-
being
Affordable and
20 and production clean energy
Sustainable cities C3
and communities Quality education
15 Gender equality
C5
10 Peace and justice Life on land Clean water and sanitation
Partnerships for
Strong institutions C1
the goals
Reduced inequalities
C4 Zero Hunger
5 Life below water No Poverty
0
0 5 10 15 20 25 30 35 40 45
Citizen importance
We’ve taken a look at how the WEF reports it as both high as SDGs, there is much lower
With business seemingly set WEF data stacks up against impact and high likelihood relevance placed on them by
to focus on a small number companies’ opinions on the and business sees it as the business either from an impact
of SDGs, is there more to be SDGs. It creates an interesting priority SDG. Energy and or opportunity perspective.
done to show business how picture. We asked business to climate change both register, When it comes to risk and
SDGs are relevant to their prioritise the top five SDGs by perhaps less so, but already opportunity prioritisation, if
business? Every year the the impact they had on them both business and government business chooses to put several
World Economic Forum (WEF) and the opportunity, while are upping their commitment SDGs on the back burner, they
asks business leaders for their WEF asked business to state if and investments in addressing are going to need to select
views on the greatest risks to they viewed an issue as a risk these goals. carefully to avoid leaving risks
their business,6 both from the (see Figure 11: Comparing WEF unaddressed. If they are not
perspective of the impact it Risks 2015 against business However, WEF Risks 2015 joining the dots about how one
would have on their business perspectives on SDGs). identifies both water and SDG impacts others or positions
and the likelihood biodiversity as being high SDGs into the wider business
of it happening. Employment is a hot button impact and high likelihood, context, a course of action may
issue both from a risk and serious potential disruptors be ruled out unwittingly.
opportunity point of view. to business operations. Yet,
45
Decent work Water crises
and economic
40 growth Failure of
climate-change
35 adaptation
Unemployment or
30
Climate action underemployment
Quality education Good health and Industry, innovation and
25 well-being infrastructure
Fiscal crises
Impact
Responsible
Gender equality
consumption and production
Spread of infectious
20
Affordable and diseases
clean energy
15 Life on land Clean water and sanitation Food crises
Zero hunger
Peace and justice Strong institutions Sustainable cities and communities Energy price shock
10 No poverty Partnerships for the goals
Biodiversity loss and
Reduced inequalities
5 ecosystem collapse
Life below water
Failure of critical
0 infrastructure
0 5 10 15 20 25 30 35 40 45
Failure of urban planning
Opportunity
Source: PwC SDG Engagement Survey 2015; World Economic Forum, The Global Risk Report 2015 RISKS
Question to Business:
SDGs embedded in strategy and way of doing business SDGs embedded in strategy and way of doing business
100%
CSR engagement
90%
Japan
Annual report written in line with the SDGs
20%
No action
10%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0%
Source: PwC SDG Engagement Survey, 2015 Source: PwC SDG Engagement Survey, 2015
95% Brazil
87% India
86% Argentina
85% China
Question to Business:
Q. Will your customers think Q. Will lack of engagement Q. If your customers are
your business isn’t doing with the SDG agenda more likely to buy from
enough to support the SDGs become a reputational issue? a company signed up to the
or doing it fast enough? SDGs, can you afford not to?
13%
Speeding up against the SDGs that are
engagement relevant to their business.
The SDGs could yet be real This is understandable
game changers, fundamentally considering the newness of of the companies
reshaping how global business them, but even in five years,
surveyed have
operates, but it’s clear that only 30% think they will be
using impact assessment identified the tools
business is adopting a wait-
and-see attitude in terms of tools. Assessing impact is that will help them
implementing definitive action. fundamental to valuing assess their impact
the positive and negative against the SDGs
A fear of the unknown and contributions a business makes
the inability to measure and towards the SDGs. Without the
evaluate how SDGs will impact tools identified and in use,
a company is one reason for business will struggle
this reticence. Just 13% of to engage effectively (see
the companies surveyed have Figure 16: What’s stopping
identified the tools that will business engaging?). Source: PwC SDG Engagement Survey, 2015
help them assess their impact
Question to Business:
Q. H
ave you identified Q. Are you clear on how Q. H
ave you identified your
the tools you’ll need to you’ll assess your impact? internal stakeholder
establish which SDGs groups and are they
your business has an on board to deliver the
impact on? strategy that supporting
the SDGs involves?
PwC Indonesia