CEOs say business contribution to the 2030 Sustainable Development Goals
(SDGs) is not on track,
according to a new study by the United Nations Global Compact (UNGC) and
Accenture.
Launched today at the UN General Assembly in New York, the UN Global
Compact-Accenture Strategy 2019 CEO study finds that just 21 percent of
leaders believe business is playing a critical role in contributing to the
Global Goals. The study, which draws on insights from more than 1,000 CEOs, is
the world’s most comprehensive research to date on business contribution to the
SDGs.
“With less than 4,000 days remaining until the 2030 target, leaders are not
content with current progress and calling for their sectors and peers to step-up
and turn commitment into action,” said Lise Kingo, CEO and Executive
Director of the UNGC. “The scale of the challenge is unprecedented and requires
all stakeholders — including governments, policymakers, business leaders,
investors, shareholders, civil society and academia — to work together to
accelerate change.”
The UNGC-Accenture Strategy CEO study represents more than a decade of research
on sustainable business; it forms the world’s most comprehensive research to
date on business contribution to the Sustainable Development Goals. The 2019
study draws on insights from more than 1,000 CEOs from 21 industries and 99
countries, including over 100 in-depth interviews, and a further 1,500-plus
senior business leaders who responded to the UNGC implementation survey.
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While progress has been made — the global population is living better lives than
they did a decade ago and infant mortality has declined — advancement in a
number of areas has been sluggish or even reversed. Today, 700 million people
still live in extreme poverty, over 200 million remain jobless and more than 65
million seek refuge. Famine, extreme climate events, overpopulation, water
scarcity,
gender-based
violence
and a rise in armed conflict and extremism continue to define lives around the
world.
CEOs: Challenging environment stalling corporate progress
According to the study, 99 percent of CEOs of the world’s largest companies say
sustainability is critical to the future success of their organization, and 81
percent of companies are taking action to progress the Global Goals. Over 200
companies have approved science-based targets for climate action and a similar
number have made commitments to go 100 percent renewable. CEOs say an
unprecedented shift in public expectations is driving businesses to get ahead on
sustainability to build trust and competitiveness in their markets.
However, these commitments are failing to deliver the desired impact. CEOs say
that business execution is not measuring up to the size of the challenge or
previous levels of corporate ambition. While 67 percent of signatories
committing to sustainability are CEOs, only 48 percent are integrating
sustainability into their business operations. Just 44 percent of CEOs believe a
net-zero
future
is on the horizon for their company in the next 10 years. Over a quarter (28
percent) cite “absence of market pull” as a top barrier to sustainable business
— though recent NYU Stern
research
shows evidence to the contrary — and over half (55 percent) say pressure to
operate under extreme cost-consciousness against investing in long-term
strategic
objectives
is a key trade-off that many are facing.
“Every company’s license to operate is being determined by their individual
contributions to sustainability. The world is looking closely at their action
and impact, with employees, customers and stakeholders alike holding leaders to
a higher
standard
and expecting them to drive bold action,” said Peter Lacy, Senior Managing
Director at . “With sustainability being integral to the competitive
agility
of every organization — as important as growth, profitability and
trust
— it’s time for leaders to ensure sustainability goals are firmly embedded in
corporate strategy and company
purpose.”
Kickstarting a decade of delivery
Nearly three-quarters (71 percent) of CEOs believe that with increased
commitment and action, businesses can play a critical role in contributing to
the Global Goals.
To accelerate progress, CEOs identify three critical requirements:
-
First, an urgent need to raise corporate ambition within their own
organizations to prioritize action against the 17 SDGs.
-
Second, the need for business, governments, regulators and NGOs to come
together to shape realistic, science-based
solutions
to the global challenges.
-
And third, redefining responsible leadership to enable business to be a
leading actor in driving the Global Goals.
The future of responsible leadership
For companies to progress towards a more sustainable future, the CEOs polled highlighted the
leadership qualities that are critical for
success:
-
Pioneering profit through purpose: Growing expectations from consumers,
employees and the public are placing new demands on leaders to serve a
higher purpose in helping ensure a sustainable future. Leading CEOs look
beyond near-term profits in order to meaningfully drive forward the
sustainability agenda, and foster a culture of responsibility and
transparency to demonstrate impact.
-
Galvanizing ecosystems: CEOs must engage their broader ecosystems to
find collective solutions to the SDGs. Given the nature and complexity of
these issues, science-based leadership will play a crucial role in driving
action and impact.
-
Personally committing to sustainability: Responsible leaders take
sustainability personally, hold people to account for sustainability goals,
force the discussion with investors, and lead positive change with
authenticity and integrity.
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Sustainable Brands Staff
Published Sep 24, 2019 2pm EDT / 11am PDT / 7pm BST / 8pm CEST