SUSTAINABILITY AND

STRATEGIC AUDIT
SUSTAINABLE
DEVELOPMENT
 Sustainable Development
• Sustainable development is an organizing principle that aims
to meet human development goals while also enabling natural
systems to provide necessa natural resources and ecosystem
se ices to humans.
• e desired result is a society where living conditions and
resources meet human needs without undermining the
planeta integrity and stability of the natural system.
• Sustainable development tries to nd a balance between
economic development, environmental protection, and social
well-being.
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 Sustainable Development
• e Brundtland Repo in 1987 de ned sustainable
development as "development that meets the needs of the
present generation without compromising the ability of future
generations to meet their own needs".

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 Do you know all 17 SDGs?

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 Do you know all 17 SDGs?

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 Do you know all 17 SDGs?

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 Histo
•all United
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economic and
growth – all
while tackling climate
oceans and forests. change and working to prese e our

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 e SDGs build on decades of work by countries and the UN,
including the UN Depa ment of Economic and Social A airs
• In June 1992, at the Ea h Summit in Rio de Janeiro, Brazil, more
than 178 countries adopted Agenda 21, a comprehensive plan of
action to build a global pa nership for sustainable development to
improve human lives and protect the environment.
• Member States unanimously adopted the Millennium Declaration
at the Millennium Summit in September 2000 at UN Headqua ers
in New York. e Summit led to the elaboration of eight
Millennium Development Goals (MDGs) to reduce extreme pove y
by 2015.

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 • In 2013, the General Assembly set up a 30-member Open
Working Group to develop a proposal on the SDGs.
• In Janua 2015, the General Assembly began the negotiation
process on the post-2015 development agenda. e process
culminated in the subsequent adoption of the 2030 Agenda for
Sustainable Development, with 17 SDGs at its core, at the UN
Sustainable Development Summit in September 2015.
• 2015 was a landmark year for multilateralism and international
policy shaping, with the adoption of several major agreements.
• Now, the annual High-level Political Forum on Sustainable
Development se es as the central UN platform for the follow-
up and review of the SDGs.
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 SUSTAINABLE CHALLENGES AND OPPORTUNITIES AMIDST WORLD
ECONOMIC AND SOCIAL

CRISES

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 TSustainable
he COVID-19 pandemic
Development has
Goals launched
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have
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the a liveable
terrible and prosperous
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to hundreds
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from
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the UN Secreta -General. and climate change ”, according to a repo

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 A path forward
Complex, interconnected crises are the new normal. Simply reacting to
crisis after crisis only leads to sho -term xes. We must combine
development and crisis response if we are not to be caught in ‘two steps
forward, one step back’ when it comes to each new challenge.
We will need sho -run emergency measures to contain the looming cost-
of-living crisis. But moving ahead and out of crisis mode is possible with
robust and cumulative responses that build long-term, sustainable and
inclusive ways forward.
Crisis can be turned into oppo unity for a conce ed push towards a
sustainable, inclusive and resilient future.
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 COVID-19 and the SDGs
e 2030 Agenda and the SDGs must remain our global compass.
e poorest and most vulnerable were hardest hit by the pandemic
and the socio-economic responses are uneven. Many developing
countries’ nances have been stretched to breaking point, leaving
them unable to invest in green recove or to adapt to climate change.
And we are just beginning to grasp the implications for governance,
social cohesion, rule of law, gender equality and human rights.

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 While the HLPF will examine the pa icular e ects of COVID-19 on all
the SDGs—they were designed to be interlinked—it will pa icularly
focus on those related to quality education (SDG 4), gender equality
(SDG 5), life below water (SDG 14), life on land (SDG 15) and
pa nerships (SDG 17).

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 Oceans need our help
Even before the pandemic, which has created vast amounts of medical
waste, much of which ends up in the ocean, the science was clear. e
ocean is under threat and needs urgent action. More than half of all
marine species are threatened with extinction by 2100.
e health of the ocean has a direct impact on all the SDGs.
A COVID-19 recove must protect the ocean and suppo those who
depend on it for their livelihoods. UNDP is actively suppo ing local
and national governments as they link their development plans to
ocean protection.
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 e lay of the land
Land resources underpin our societies and economies. T hey provide food,
water, fuel and other essentials to life on Ea h.
Some 1.6 billion people depend on forests for their livelihoods, as well as
shelter, food and medicine. Healthy forests are vital for a range of economic
activities, including agriculture and tourism.
Management of these critical resources has become unsustainable. But the
good news is that restoring land comes with enormous f in ancial
payof fs—the economic returns of reducing degradation, greenhouse
gasses and biodiversity loss could be as high as US$125 trillion to $140
trillion eve year.
Over the next decade, repurposing $1.6 trillion out of the annual $700
billion in per ve rse subsidies given to the fossil fuel and agricultural
industries would enable governments
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 Reimagining the future, together
T he COVID-19 pandemic and the war in Ukraine have shown how fragile
human progress can be, and both have re-emphasized the impor tance of
the SDGs as the blueprint for a liveable and just future for eve body.
T here are no more ‘band aid’ solutions. New, complex crises require re-
writing the rule book. Par tnerships for the SDGs means focusing on the
root causes of challenges and truly understanding how they connect.
UNDP as the lead UN development agency is tapping into its extensive
global network to build solutions that make a dif ference in peoples’ daily
lives. We are investing in an “SDG Push” which will identify ways to fast-
track ef for ts to help countries recover at the same time as building more
inclusive and sustainable societies.
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 Reimagining the future, together
No organization or countr ydo this alone. We need to strengthen existing
par tnerships and forge new ones to learn the hard lessons of the past two
years, and recommit to building a world that is habitable, sustainable and
o ers oppo unities for eve body.

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 WHY SUSTAINABLE DEVELOPMENT IS GOOD FOR BUSINESS?

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 WHAT IS SUSTAINABILITY IN
BUSINESS?
Sustainability in business refers to the ef fect companies have on the
environment or society.
A sustainable business strategy aims to positively impact one or both
of those areas, thereby helping address some of the world’s most
pressing problems.
Some of the global issues that sustainable business strategies help to
address include:
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Some of the global issues that sustainable business strategies help to address
include:
Climate change
Income inequality
Depletion of natural resources
Human rights issues
Fair working conditions
Pollution
Racial injustice
Gender inequality
Although it may sound like it, sustainability in business is not purely altruistic.
As Ha ard Business School Professor Rebecca Henderson notes in the
online course Sustainable Business Strategy, you can't use business to do
good in the world if you're not doing well nancially. Doing well and doing
good are inte wined, and successful business strategies include both.
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 WHY IS SUSTAINABILITY IMPORTANT?
In addition to driving social and environmental change, sustainability
initiatives can contribute to an organization's overall success. It may
seem counterintuitive that spending more money on sustainable
business practices can boost a company’s prof itability, but studies
show that the most sustainable companies are also the most
pro table.
Environmental, social, and governance (ESG) metrics are often used
to determine how ethical and sustainable an organization is.
According to McKinsey, companies with high ESG ratings
consistently outper form the market in both the medium and long
term. While sustainability strategies
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 BENEFITS OF SUSTAINABILITY IN
BUSINESS
1. You ll Protect Your Brand and Mitigate Risks
’
Ending up on the front page because of a scandal is a CEO’s worst
nightmare. Not only do improper practices damage an organization ’s
reputation and cost it customers, but dealing with a public relations disaster
can dive valuable human and nancial resources from the core business.
You don’t want to become the company that allowed an oil spill or
forced employees to work in unsafe conditions. By instituting a sustainable
strategy that protects the environment and your workers, you also protect
yourself from any damaging incidents.

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 BENEFITS OF SUSTAINABILITY IN
BUSINESS
2. Being Purpose-Driven Is a Competitive Advantage
Sustainability doesn't detract from business goals, and infusing your
company with purpose can help attract a motivated, skilled workforce that
drives f inancial success. In a Facebook Live discussion, Henderson noted a
recent study showing that 89 percent of executives believe an organization
with shared purpose will have greater employee satisfaction. Additionally, 85
percent say they're more likely to recommend a company with strong
purpose to others.
Making your company an organization that does good in the
world—rather than just a place that provides a paycheck—can be a
competitive advantage when attracting the best talent.
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 BENEFITS OF SUSTAINABILITY IN
BUSINESS
3. ere's a Growing Market for Sustainable Goods
A 2019 study found that 73 percent of global consumers are willing to
change their consumption habits to lessen their negative impact on the
environment, and sustainable product sales have grown by nearly 20
percent since 2014. Millennials in par ticular are more willing to pay more for
products that contain sustainable ingredients or products that have social
responsibility claims. If your organization commits to sustainable products
and practices, it could gain market share by conver ting sustainability-
minded customers and increasing sales.

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 BENEFITS OF SUSTAINABILITY IN
BUSINESS
4. Cooperative Action Can Drive Change
As an individual, it can feel overwhelming, isolating, or simply
impossible to ef fect change in a meaningful way. T hat’s not the case when
the most innovative, successful, and power ful companies are collaborating
to solve some of the world’s most pressing problems. While governments
struggle to address public goods problems, purpose-driven companies
working together to address these issues have experienced great success.
For example, palm oil is cheap, versatile, and found in about half of all
packaged products, including soap, lipstick, and ice cream. But palm oil
production (pdf) has resulted in record greenhouse gas emissions and
contributed to climate change.
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 BENEFITS OF SUSTAINABILITY IN
BUSINESS
4. Cooperative Action Can Drive Change
In light of this, consumer goods producer Unilever committed to only
using palm oil from cer tif ied sustainable sources in 2008. T he organization
cooperated with its competitors—as well as governments, NGOs, and
indigenous peoples’ organizations—to lead an industr y-wide adoption of
sustainable palm oil. As a result, Unilever continues to be a thriving
organization, and the world has reaped the environmental benef its of
sustainable palm oil ha esting practices.

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 THE VALUE OF SUSTAINABILITY
Sustainability doesn’t mean sacrif icing prof its or putting success on the
backburner. Instead, it has become a crucial element to any organization’s
successful strategy. A business that doesn't factor in sustainability risks is
less successful in several measures, including prof itability, growth, and
employee retention.
By integrating sustainability into your business strategy, you can f in d
success because, rather than in spite, of sustainability.

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 IMPORTANCE OF GOOD LEADERSHIP IN ACHIEVING SUSTAINABILITY

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 It well known that today’s challenges for attaining sustainable
development are complicated, interconnected, and will need
eve one to work towards creating a more sustainable future.
T herefore leaders, rather than providing a solution, “ create
oppor tunities for people to come together and generate their own
answers”
leaders should not only bring people together and encourage
creative par ticipation, but should help people to embrace a
relationship with unce ainty, chaos, and emergence.
Working together to solve problems, even when values are shared,
can be a dif ficult process. Leaders must understand that the
tension, conf li ct and uncer tainty that come from dif ferences
provide great potential for the creative emergence of viable
solutions.
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 To achieve the SDGs, leadership at both the national and
organizational levels would have to adopt leadership styles that
engender a sense of shared responsibility toward the attainment of
the Goals; one that is focused on the long-term, and thus would
establish systems that persistently ensure the pursuance of this
goal in the future; one that understands the need for collective
ef for t(at both the national and organizational levels) toward the
attainment of the SDGs; one that is willing to learn; and, f inally,
one that is in itself ethical, and thus would impress upon followers
the need to behave in a like manner.

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Leadership at Organizational Level
Today, the prioritization of sustainability begins at the top. Leaders
have come to realize that a sustainable business strategy is not
only good for the environment but also bene cial to an
organization’s bottom line.
In turn, boardrooms around the world are now using an ESG
(environment, social and governance) framework for a strategic
review of an organization’s sustainability.

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Reasons Organizations Are Prioritizing
Sustainable Leadership
First, and foremost, businesses are experiencing the immediate e ects of
climate risks both physically and nancially. Approximately 68 out of 77
industries are “signi cantly a ected in some way by climate risk,”
according to the Value Repo ing Foundation.
In the agriculture sector, for instance, the rising temperatures and climate
disasters have led to drought and food insecurity in many areas including
Italy and Latin America. Additionally, climate change is disrupting the
global supply chain, energy companies and so much more.

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 While
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generation, who are even more passionate about ESG issues. especially true among the next

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What Can Leaders Do Today?
Although there is a rise in sustainable leadership roles, such as head of
ESG, director of sustainability and chief sustainability o cer, there is a
need for all leaders and board members to build their competencies
surrounding sustainability.
Investors want to know eve one at the table has a clear understanding of
how sustainability and climate change are also risk management and
nancial issues. Not only this, but stakeholders should know the impact on
the long-term viability of the corporation.

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What Can Leaders Do Today?
Leaders should educate themselves and build their climate-risk
competency, gaining an understanding of indust -speci c global warming,
international debate, risk literacy and more, to showcase their willingness
to engage.
ESG is a framework for many boards around the world. But it sta s at the
top. If you want to stand out as a leader today and in the future, build
your own knowledge and understanding of the business impact of
sustainability.

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 HOW BUSINESSES CAN BE CHANGE AGENTS TO OVERCOME BARRIERS
TO SUSTAINABLE

DEVELOPMENT

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1. Use sustainability as a unique selling point
Consumers are increasingly looking to buy ethically sourced, sustainable
products, especially in the food sector. Brands should use their
sustainability as a point of dif ference to encourage sales, argues Rich
Clothier, managing director of Wyke Farms.
2. ink long term
One of the main cultural barriers across society is the focus on shor t-term
key per formance indicators (KPIs) and budgets. A sustainable business
needs to encourage all those it works with to look at, and reward, long-
term results.
T his idea is perhaps most apparent in the construction industr y, where the
perceived higher cost often blocks the creation of greener buildings. “When
looking at costs across the lifetime of a building, it really makes economic
sense to build a green building, ” says Elaine Trimble, urban infrastructure
economist
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3. Communicate di erently
People become involved with sustainable businesses for a variety of
reasons. For a graduate, it might be the interesting work or the higher
purpose. For an investor, it might be the unique nature of the business and
its growth potential.
Sustainable businesses should, therefore, tailor the way they communicate
with each group, depending on their interests. “Be clear about what’s
impor tant to each, and also what sor tof language and approach will be
most ef fective,” says David Symons, director of sustainable consulting
business WSP Group

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4. Embed sustainability throughout your organization
Changing organisational structures or creating roles, such as sustainability
managers, might only act as a bolt-on, when a complete change in
business culture and managerial priorities is needed. “We have tried to
embed cultural change and responsibility at all levels of decision making,”
says Clothier, adding that sustainable thinking “works best when it is fully
pa of the business’s strategic direction”.
5. Improve management skills
Symons says that sharing knowledge from the exper ts to ever ymember of
staf fis one of the biggest challenges to achieving full sustainability. It is
dif ficult, he says, to f ind the oppor tunity “to give all our design teams a
practical knowledge of our future world, so that they can design to it”.
Good management, however, could make this change happen.
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6. Take risks
Many sustainable businesses have taken risks by investing in systems and
technologies that are not yet mainstream. While it is easier for new
businesses to set up in a sector with more developed systems working and
paying for themselves, it is much tougher for early adopters to raise the
nance for relatively unproven technology.
7. Disrupt old business models
For Ramon Arratia, the sustainability director of f looring business Inter face,
true sustainability comes in the form of Tesla – the American automotive
and energy storage company. Ar thur Kay, the chief executive of bio-bean,
agrees, saying that “disruption has the greatest impact when it inter faces
with and improves existing infrastructure or attitudes”.
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8. Network
T here are a number of regional initiatives, such as Venturefest in Bristol,
that give smaller – and star tup – companies the oppor tunities to meet,
network with investors and establish like-minded and sustainability-
orientated companies
9. Suppo other sustainable businesses
Many businesses tell a pleasing sustainable stor ywhen they sell their own
products, but they might not buy into the sustainability stories presented
by other companies, says Arratia. While some stories can be greenwash, he
says, sustainable businesses can suppor tothers like them by buying their
products.
“Continuing to meet and share experiences even in tough times can inspire
and
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presentation title towards their goals,” said 50
thank you