How to create an SDG Sustanability report
To date, businesses have released a range of reports to give stakeholders a clear picture of their sustainability initiatives. While some company reports solely disclose environmental
issues, others emphasize the social component. Regardless of the reports' sustainability focus, they have been deemed appropriate
for assessing the corporate sustainability profiles of businesses. The multimodal focus of corporate reporting on sustainability concerns may also enhance communication between businesses and stakeholders.
It is generally known that the first batch of sustainability reports mostly addressed social responsibility issues as a result of persistent demands from various societal groups for better and safer working conditions and the requirement that
businesses behave honorably by paying the required taxes. Following that, corporate sustainability reports mostly addressed environmental issues in response to the Brundtland report's recommendations to save natural resources so that future generations can meet their needs.
Finally, the triple-bottom-line strategy emerged more systematically following the 1992 Rio de Janeiro United Nations Conference on Environment and Development.
The domains of corporate strategy management, accounting, and reporting have been significantly impacted by each of these turning points.
Sustainability Reporting as per SDGs
However, following the United Nations summit in New York in September 2015 for adopting the 2030 Agenda, the idea of sustainable development was recently expanded by the addition of 17 Sustainable Development Goals. According to this reasoning, a wide range of suggestions from international organizations have been made to help businesses incorporate the UN SDGs into strategic management and sustainability reporting. The UN SDGs have been specifically recommended for strategic management of businesses in order to support sustainable development by the Global Reporting Initiative, UN Global Compact, and World Business Council for Sustainable Development.
About the Sustainable Development Goals (SDGs)
The United Nations released 17 Sustainable Development Goals (SDGs) and 169 targets as part of the 2030 Agenda for Sustainable Development. It is agreed that 232 different Indicators would be used to monitor progress toward these Targets. According to the UN Secretary-General, these goals and targets serve as a concrete action plan and road map for success for all people.
The SDGs demand major capital investments. By 2030, it is predicted that US $90 trillion in investments will be required to meet the SDGs. Businesses must report on their SDG-related activities in a way that helps investors make judgments that can promote sustainable development if they want to mobilize this financing.
Linking the SDGs and the GRI Standards
a connection document outlining the GRI Standards' disclosures that can be used to report on particular SDGs and their targets.
The most recent version, which was updated in May 2022, incorporates GRI 11: Oil and Gas Sector 2021 as well as the updated GRI Universal Standards 2021.
Writing a sustainability report has a number of advantages:
- •Make your organization's sustainability impacts transparent.
- •Engage in dialogue with important parties,
- •Establish a baseline to track future changes and decide on improvements to your organization's sustainability performance.
An explanation of the procedure for disclosing data on products, results, effects, and contributions to the SDGs.
Step 1: Define priority SDG targets
- • Understand the SDGs and their targets.
- • Conduct principled prioritization of SDG targets.
- • Define your SDG-related report content.
Step 2:Measure and analyze
- • Set business objectives.
- • Select appropriate disclosures
- • Collect and analyze data.
Step 3:Report, integrate and implement change
- • Consider general features of good practice when reporting on the SDGs.
- • Consider data users' information needs
- • Report and implement change.
SDGs & Sectors: The sectors lens:
The relevance of sectors to SDGs falls into three main categories:1. Sectors with strong linkages to a single SDG
a. Healthcare: In order to fulfill SDG 3 (to ensure good health and well-being for everyone), healthcare corporations will need to collaborate with government agencies and civil society groups.b. Oil & Gas:: Energy corporations' investment decisions will have a significant impact on SDG 7, which aspires to provide cheap and sustainable energy for all. Delivering this SDG will depend heavily on the oil and gas industry, which according to the ICB classification also includes alternative energy.
2. Sectors with linkages to two or more SDGs:
a. Consumer goods, Consumer services and Industrials:Stakeholders will turn to the Consumer Goods and Industrials sectors to deliver on responsible consumption and production as outlined in SDG 12. SDG 2 to end world hunger and SDG 14 to maintain the marine environment will both be expected to heavily rely on agriculture, fisheries, and plantations, which are classified under consumer goods.b. Basic materials: The achievement of SDG 15, which focuses on conserving the natural environment on land, is intimately related to sectors of the economy that deal with the extraction and processing of raw resources. However, because they also use a lot of energy, water, and waste, SDG 12 on responsible production and consumption will also be very important.
c.Utilities: In order to accomplish SDGs 6, 7, and 9—universal access to affordable electricity, clean water supplies, and waste management—this sector will be at the forefront of infrastructure development.
3. Sectors that act as enablers across all SDGs:
a. Consumer goods, Consumer services and Industrials:Stakeholders will turn to the Consumer Goods and Industrials sectors to deliver on responsible consumption and production as outlined in SDG 12. SDG 2 to end world hunger and SDG 14 to maintain the marine environment will both be expected to heavily rely on agriculture, fisheries, and plantations, which are classified under consumer goods.India’s Top Companies and the SDGs:
Companies typically map 12 SDGs, with a minimum of 2 and a maximum of 17.
1. 88% of the businesses that mapped their SDG objectives belonged to the private sector, and 68% of them were manufacturing firms. This demonstrates unequivocally that private businesses are driving the focus on SDG implementation.
2.With more than 85% of the companies reporting them, the SDGs with the highest attention include SDG 5 (gender equality), SDG 8 (decent work), SDG 3 (good health & well-being), SDG 4 (excellent education), SDG 13 (Climate action), and SDG (clean water and sanitation)
3. SDG 14 (Life below water) had the lowest percentage of companies (28%) that mapped it. This is strongly consistent with our ongoing observation that businesses typically allocate funds to the environment, healthcare, and education in their CSR initiatives.
4. We have made an effort to align our scoring with the SDG-related activities of leading corporations. SDG 8 (decent work and economic growth), SDG 9, and SDG 12 were the most visible SDGs (industry, innovation and infrastructure) SDG 13 (climate action)
5.More than 55% of the businesses have listed it as an action item. SDG 1 (No Poverty), SDG 6 (Clean Water and Sanitation), SDG 16 (Peace, Justice, and Strong Institutions), and SDG 4 were other significant goals (quality education). Across businesses, SDGs 5, 4, 6, 3 and 8 were prioritized.
