Topics in this section: - Intel, Linde lead on targeting Sustainable Development Goals - Targeting the most-prioritized SDGs - Quantitative target shows companies' focus - Benefits of hitching wagon to SDG 3 elusive
Intel, Linde lead on targeting Sustainable Development Goals
Intel and Linde have set targets across at least two Sustainable Development Goals (SDGs), indicating a proactive approach toward aligning with these measures. While many companies discuss the UN's SDGs, few set quantitative targets as these have.
Targeting the most-prioritized SDGs
Companies setting SDG targets can help quantify impact, positioning themselves to meet business opportunities created from shifts to sustainable production and growing investor interest. Intel has set out specific goals to cut emissions and hazardous waste. The company has also set diversity goals within its operations and through its supply chain. Unilever aims to sustainably source all ingredients by 2020, increasing consumer appeal. Goals on climate action (SDG 13), decent work (SDG 8) and responsible consumption (SDG 12) are the most prioritized, according to PwC research. Companies can target multiple goals, varying from the product mix to operational ESG metrics.
Schneider, Prysmian and Legrand target the SDGs through their product mix and operations. Others targeting SDG 13 (climate) include ING and Linde.
Quantitative target shows companies' focus
Intel, Orsted, McCormick and Legrand set targets for gender diversity (SDG 5) for different layers of management, setting them apart from companies that simply pay lip service. Legrand and McCormick score well on gender metrics at the board, management and workforce levels, based on an equally weighted scoring model of the S&P 1200. Intel and McCormick also target reductions in operational water use (SDG 6). While 72% of companies analyzed mentioned the SDGs in their reports, only 23% set meaningful indicators and targets, according to research by PwC.
Benefits of hitching wagon to SDG 3 elusive
Drugmakers are missing an opportunity to signal to investors how they'll capitalize on market opportunities associated with Sustainable Development Goal 3. This "Good Health and Well Being" goal matches the industry's core competency, and 74% of large companies have aligned their reporting with that and other SDGs. Yet disclosure fails to tie performance or targets to market opportunities. Merck leads by reporting on contributions to specific SDG 3 targets, including reducing the global maternal mortality ratio, but doesn't link performance to financial metrics. Investment flows to SDG-related funds, though small, suggest a missed chance to attract capital.
The World Resources Institute estimates that the achievement of SDG 3 will yield $1.8 trillion in revenue and savings.
