A growing number of companies are embracing the United Nations Sustainable Development Goals (SDGs). And startups are no exception.
We have a priority that concerns us all, from citizens to industries, from governments to schools: to correct the distortions of the current development model and ensure that growth, from now on, respects the needs of the planet and of people. We have a document that explains how to do it: it is the 2030 Agenda, signed by the 197 member states of the United Nations. But are companies proving capable of truly understanding the Sustainable Development Goals (SDGs) and integrating them into their strategies? And what about startups?
If in recent years we have had the impression of encountering the colourful symbols of the UN's 17 Sustainable Development Goals more and more often, it is useful to know that it was not just an impression. The Responsible business trends 2021 report compiled by Reuters Events surveyed 804 professionals from around the world on the subject: 69 per cent report that their company has integrated the SDGs into its business strategy. Although this figure represents a slight decline from 71 per cent in 2019, it marks a 23 per cent leap forward compared to 2016.
Admittedly, only a minority of these companies (22 per cent) have already completed this process, setting clear targets in writing; for all the others it is still a work in progress. Confirming a trend that had already emerged in previous years, the goal attracting the most attention is the 13th, climate action, to which 65 per cent of companies are devoting efforts. In second place is gender equality (SDG 5), at 54 per cent.
One of the most effective ways to genuinely embrace the SDGs — in deeds, not just words — is precisely to set specific improvement targets and communicate the results achieved in the pages of the sustainability report. The Global reporting initiative, author of the voluntary guidelines widely adopted at international level, has published a practical guide that explains the process to follow, step by step.
The first step is to define priorities — that is, to review the 17 SDGs and the 169 targets underpinning them, and then select those most relevant to one's specific company. Relevant both in terms of risks for people and the environment, and in terms of opportunities to launch beneficial products, services or investments. At this point, the elements are in place to set corporate objectives and strategies capable of contributing to the priority SDG targets. Each indicator must be monitored consistently, gathering quantitative and qualitative data. The milestones reached — as well as those that were missed — must finally be reported to all stakeholders, and this is precisely what the sustainability report is for. Data also provide the fertile ground on which to graft the kind of internal company reflection that is fundamental to building a culture of sustainability.
So far we have spoken about companies in general, but what about startups? One cannot deny that being at the beginning entails considerable difficulties, as an editorial published by Forbes notes. Sustainable choices require resources, personnel, expertise, and can sometimes represent a cost in purely economic terms. That said, various signs nonetheless suggest that even newly founded ventures can only stand to gain from a strategy guided by the 2030 Agenda.
The consultancy firm Akzente and the accelerator TechFounders surveyed 282 startups, half of them German and the other half from other European countries. Almost all of them (87 per cent, to be precise) were founded after that day in September 2015 when the United Nations launched the SDGs. The research yields decidedly encouraging findings. First of all, 86 per cent have already begun reflecting on the relevance of sustainability to their business model. What is more, two in three have gone much further, having already adopted concrete measures to put that sustainability into practice. Equally intriguing is asking them why. For around half (53 per cent), the driving force was external incentives or pressures, but far more (nearly 9 in 10) are motivated by genuine conviction. In their eyes, attention to social and environmental aspects is an integral part of their business philosophy.
Will that be enough when the time comes to look at the bottom line? The secret lies in viewing sustainability not as a cost, but as an investment. Indeed, the overwhelming majority of respondents (83 per cent) have already noticed tangible positive outcomes, above all in terms of customer acquisition (64 per cent) and competitive advantage (61 per cent). "From my point of view," the Forbes editorial concludes, "the opportunities available can only grow, given that consumers and customers are demanding change and our governments continue to set ambitious climate targets."
The concept of the triple bottom line, coined in the 1990s and by now indispensable, refers to precisely this. A company is called upon to create value for people (people), for the planet (planet), and also for its own shareholders and the market (profit). Three dimensions of equal importance. "In many situations, it is possible to do the right thing and make a profit at the same time," says Rebecca Henderson, professor at Harvard Business School. "In fact, we have good reason to believe that solving global problems offers economic opportunities worth trillions of dollars."
Given the intense interest from investors and consumers, a golden moment could be opening up for so-called sustainable native startups — those that have sustainability as the driving force behind everything they do. On one condition: that they are able to translate this founding principle into a solid business. This is where three-dimensional support programmes come in, such as those of LifeGate Way aimed expressly at sustainable startups, which are becoming ever more widespread and well attended.
