Better Business Better World

Incorporating the Global Goals into business strategy would make the world more sustainable, inclusive and full of opportunities for everyone. This report is interesting for inclusive businesses since it maps the economic prizes that are available to businesses if the SDGs are achieved. The commission members include leaders from business, finance, civil society, labour and international organisations.

Importance for businesses:

• Describes and quantifies the market opportunities opened up by the SDGs
• Provides guidance for your business for realising these gains

Importance for policymakers:

• Outlines the potential role businesses can play in realising your development objectives
• Gives insight into financing development

In January 2016, the Business and Sustainable Development Commission was formed, which aimed to map the economic gains that could be achieved if the SDGs are achieved, and to describe business’ role in contributing to these goals. The commissioners include leading actors in business, finance, civil society, labour, and international organisations. The commission was designed to last two years, and was disbanded in January 2018, though the work will be carried on through a number of different channels.

Better Business Better World analyses the market opportunities that come with achieving the SDGs, focussing particularly on the four sectors food and agriculture, cities, energy and materials, and health and well-being. Achieving the SDGs in these markets is said to be worth $US 12 trillion a year for the private sector by 2030 and implementing the SDGs could generate an economic prize 2-3 times this worth. Gender parity alone would add at least $US 12 – 25 trillion by 2025. In ICT, education, and consumer goods, another &US 8 trillion per year could gained.

The report goes on to describe the fastest growing business opportunities in the four aforementioned fields, giving examples of successful and innovative business models (e.g. sharing or circular economy, lean service, big data and machine learning, etc.). The report puts large focus on pricing externalities; internalising the externalities (environmental and social) would drive these market opportunities higher.

Another economic benefit of realising the SDGs affects labour markets. In the four fields alone, almost 380 million jobs could be generated by 2030. In pursuing the SDGs, companies are called to help end modern day slavery, child-labour, and hazardous working conditions in their work forces.The report also discussed sustainable financing solutions, and recommends involving the private sector in funding the SDGs, for example though blended finance, which shares the risks between public and private investors.

The report concludes by voicing recommendations for business leaders and policy makers, as it did throughout. In order to renew the social contract, businesses are called to pay their taxes transparently, to create safe working conditions, and to pay fair wages. In order to avoid inhibiting progress towards the SDGs, firms should be sure not to lobby for policies contrary to the global goals. Industries are encouraged to establish pre-competitive agreements to foster sustainability, as no one firm can carry the cost of externalities on its own. Businesses should incorporate the SDGs into their strategy and monitor their contributions to the global goals.

Of course, businesses cannot do all of these things without enabling governmental regulations. Policy makers should ensure that social and environmental externalities are priced, invest more in infrastructure, see that firms are taxed, and align investment regulations with the SDGs.

The role of civil society in this process is to monitor their institutions and businesses continually and to be active in the global discourse.