Are your sustainability goals an advantage or a threat?
Much has been said about what has been done to reverse climate change, help others out of poverty and create a just environment for all. This is the biggest challenge for our generation, and at times it has been difficult to know where to start.
The UN's sustainability goals seem to be a breakthrough for companies, as they now have a framework that makes it possible to show how they will meet the global megatrends that affect us all. When we work with corporate communication, we see that the UN's goals provide clarity, direction and inspiration for many customers. These goals can also reveal the companies that do not have a clear strategy in this area, which can lead to negative consequences for them in the long run.
In this article, we will put sustainability into context, describe the megatrends, look at the impact of UN goals on business strategies and on what improvements can be made in business reporting. You will also learn how to motivate employees in a way that benefits your own sustainability strategy.
The time is ripe for action. You can not catch the news without hearing about the environment, demands for equality or fairer conditions for the weakest groups in society. Is this happening due to the ever-increasing amount of communication channels? Is it a generational phenomenon? Or is it the world's collective conscience that has struck, so that we say that enough is enough? Probably a factor as to why they're doing so poorly. Naturally, we think that it is the government that must solve these problems, but as the economy grows and companies become stronger, society increasingly turns to companies to find solutions and speed things up.
A movement in strong growth
It is not difficult to buy the arguments for sustainability. But the challenges seem so overwhelming that our personal efforts feel like a drop in the ocean. TV pictures where we see factory buildings pumping out their pollution cross-cut with icebergs collapsing in the sea have become so every day that they have become a visual loss, something we are almost numb and feelingless to.
From time to time there is a message that manages to break through our shell and tells us something that we can relate to. Former Vice President Al Gore's book, "An Unpleasant Truth," was one such breakthrough. It helped shape the climate movement as we know it today, and as such has influenced the use of solar energy, influenced the desire to reduce carbon emissions and has, based on all the Teslas I see in Norway, apparently been involved in accelerating investment in electric cars.
The BBC's TV series The Blue Planet II showed clips of desperate fish drowning in plastic we humans have thrown away. This five-minute sequence on a Sunday night immediately engaged people and made them go after their own plastic consumption. The business community also responded. The English supermarket chain Waitrose has recently opened an experimental store. There they try out packaging-free trade, where customers buy loose products and refill their wine bottles several times. All this is a direct result of these five important minutes of television.
These are examples of communication that brings to life some of the challenges the globe has, which breaks through all our apathy, and activates the man and woman in the street so that they go out and demand more of the brands they use. We have come to a turning point where there is a very great desire for change in an overwhelming problem which, when the truth is told, is even greater. Before anyone understands how to break down the problems, define the changes that need to happen and measure the results, this will be a tedious process.
The breakthrough
We note with great enthusiasm that many of the companies we work with have chosen to use the UN's sustainability goals to formulate their own sustainability strategies.
These goals identify 17 specific challenges and address everything from poverty and inequality to climate change. The ambition is to overcome all these problems by 2030. The goals were launched just two years ago, but we experience that many customers adopt these guidelines to document the profound changes they make in their own business. Of course, companies have had these topics on the radar for a long time. The notion that companies have a real social responsibility has existed for decades, but previously it seemed up to the individual company to interpret this responsibility in their own way, as it lacked a universal standard that would have an overall impact on society.
The UN's 17 sustainability goals
"Sustainability" has become a keyword, and words develop over time and gain new meaning. In this context, sustainability means a company's ability to adapt and compete in relation to the impact of global megatrends. So far, companies have not taken the responsibility they have in society as seriously as they should. Ethics initially seems like a basic necessity in business, but we remember Lehman Brothers and many others? Now, on the other hand, ethics has emerged as a megatrend that affects the core of the company, and thus also how they behave.
Now, the approach a company has to sustainability will give an indication of how adaptable they are when they face change. Reporting has become more transparent and integrated and thus becomes a stronger indicator of how consumers, employees and investors perceive the company's qualities.
Confronting the megatrends
Some of the global megatrends may seem quite far away from the everyday life you and I experience, but they have major consequences for all of us. Here are some examples:
Rapid urbanization: Half of the world's population lives in mega-cities such as Shanghai, Tokyo, Mumbai, etc. Growth in these areas is not sustainable. Which slightly less populated areas will grow so large that they will compete with them in the not too distant future?
Climate change and lack of resources: As the world becomes more urbanized and prosperous, the demand for energy, water and food increases. But we have only a limited amount of natural resources available. Where can we find new options for maintaining our basic survival needs?
An economic power shift: Russia is in recession, China has slowed down, and although India is currently the sixth largest economy, the country may rise to second place in the not so distant future. So where should the business focus in the future?
Social change: In the West, people are living longer and having fewer children. This will put more pressure on an aging society and a younger workforce with specialist skills. How will we use ingenuity and knowledge to maintain people's expected standard of living?
Technological innovation: The ever-increasing number of being connected and always online means that we now have unlimited information on consumer behavior. This already causes a lot of anxiety when it comes to personal safety, but how can it be used to create something good?
These are serious issues that will affect many companies in the foreseeable future. We see that the UN's sustainability goals are increasingly emerging as a common standard, and that it affects all parts of the business strategy and in some cases leads to a completely new review of the business model itself. Here are some implications of this.
Local economies are getting stronger
Businesses are encouraged to concentrate on opportunities at the local level to support communities, build solid infrastructure and manage financial performance. One of Mission's customers, KONGSBERG , chose to build its ambitious satellite station on Svalbard.
While it may not seem like the most "local" place, Svalbard is one of the world's best places to receive satellite data. As a result, more than 30 countries are buying data from them. At the same time, there were bad times for the local mining community, which meant high unemployment and insecurity for those who live there. After receiving training, there are better times for men and women in Svalbard, now that they are contributing to one of the fastest growing industries. KONGSBERG has made an effort within numbers 8, 9 and 11 in the UN's sustainability goals, by bringing growth to a society and the business community there.
Investment risk is assessed in a new way
Investors now look at the whole picture and also act on the basis of non-financial information when going through their processes. One result of this is that the companies that use the UN's sustainability goals to demonstrate how viable their strategy is appear to be a more favorable player.
It is not so long since the aviation industry looked like the very spearhead of a future-oriented society and a very important component of international business. Due to the high consumption of fossil fuel consumption and the extremely high CO2 emissions, this industry is now being studied with a critical eye. In addition, the tough competition within this industry means that many airlines are not so profitable. If the airlines do not show more willingness to support sustainable goals, this once future-oriented industry may experience a lack of investment and public support.
An alternative transport solution is Virgin's Hyperloop One , which aims to transport passengers at the speed of an airplane on a subway that uses clean energy. An additional $ 172 million was recently invested to further develop this high-speed magnetic levitation capsule. This risky project contributes directly to the following sustainability goals: 7, 9, 11, 12, 14, plus indirectly to many others of them. It must be admitted that the project may sound a bit like a castle in the air, but obviously not for investors.
Sustainability attracts green money
Repairing environmental damage and improving the education system and the ever-growing societies around the world is not going to be cheap. The UN's sustainability goals have helped investors to understand and organize their investments towards companies that work within this framework. The World Bank has allocated $ 23.5 billion to more than 100 projects to help developing countries create projects that are in line with UN goals.
The French bank BNP Paribas joined the "Breakthrough Energy Coalition", a group that focuses on innovation in the development of clean energy. They recently committed to invest 135 billion euros in new and greener energy projects, and have been named "The World's Best Bank for Sustainable Economy".
"We are committed to creating a better, more sustainable future for our people, planet and communities through the power of sport."
Nike
The ambitions show strength
There is no doubt that the sustainability goals give us higher ambitions than just making money. But if there is no opportunity for profit here, it is not so likely that something will happen. What the sustainability goals do is to illustrate where a company can have the greatest impact and inspire a larger purpose that companies can gather around.
Nike has recently changed its original purpose to reflect the times we live in. On their website , they state the following: "We are committed to creating a better, more sustainable future for our people, planet and communities through the power of sport." This is not an impulsive move they are making to score points for political correctness. Nike has always been a purpose-driven brand, and this shows that Nike is a company that understands what is going on in society.
We should give Nike recognition that they think much further than just looking at themselves as a company that makes sneakers. They see their role as much deeper and more influential. Sport is one of the things that connects societies and countries, and what they do harmonises well with the UN's goals of health, well-being, education and equality for all. Such a higher ambition (purpose) can be what separates one who leads from one who follows. Nike will be able to enjoy all the benefits you get if you have a motivated workforce, a convincing brand and an increased value for all stakeholders.
Problematic for those who come with empty promises
What the UN's sustainability goal also does is expose the companies that do not follow. Some leaders present outright lies and hollow claims when it comes to sustainability goals, but due to the structure of the UN guidelines, it is very easy to put companies against each other, and thus get a clear picture of who makes an effort and who does not.
It will not be long before the views of these companies will be seen as outdated and unable to deliver what they have promised. It will go bad with their brands, they will have great difficulty in attracting the best people and ultimately be seen as a short-term prospect by investors, perhaps even as a problem that should be avoided.
How to use sustainability goals to create engagement at work
One place where sustainability goals can have a real impact is employee engagement. People increasingly see their employer as a powerhouse where the company's joint efforts can have a greater positive influence than what they themselves can have as an individual. If you are seen as a representative of what is good in this world, it is more likely that employees will be committed, work harder and be loyal.
By including your sustainability goals in the business strategy, you show that the company is in contact with the community it is in. This creates a common ambition, it attracts and takes care of talented people. It makes communication easier, reduces recruitment costs and creates a strong culture.
Eight ways to create effective employee engagement
Clarify your goals: People gather around a clear leadership. When the purpose is not specified, the goals do not seem realistic, or the end result seems so vague that people lose faith in the project. One of the good things about sustainability goals is that there are 17 of them, so there are guaranteed to be some goals that fit with your business and your employees' desires. If it is not clear which goals you should support, it is possible to conduct a poll to involve the employees in the decision-making process, and thus further engage them.
Be visible: Commitment is absolutely essential when you want employees to believe in your ambitions. If they see that what is being done is well-intentioned, but that the initiative lacks substance, people will see it as not very sincere, and thus become something negative. That's why it's important to make your ambitions so visible that you can not hide. Give the project a name, a kind of reference that people think is great to associate with. Share the ambitions and progression of the project on social media, for example by using the name as a hashtag. Make posters in the workplace that can inspire discussions over coffee. Make sure that constant updates are displayed in the company's communication channels. It is extremely important to keep alive all the goodwill the project provides.
Clear space in the calendar : Fortunately, there are many days in the year that are dedicated to creating awareness around various issues. International Women's Day, World Health Day, Earth Day and of course month-long events such as Pride. Such dates can help everyone in the company to gather around an issue they are interested in and build a culture that feels connected to an even bigger world out there that cares about the same thing. Note the events during the calendar year that correspond to your strategy, and use these as an opportunity to maintain interest in the common goals you have.
Get Ambassadors: Sometimes executives are too busy to get involved in absolutely anything that goes on in the business. While this is understandable, it may make you seem too inaccessible to the people in the front line. If various priorities prevent you from participating, ally yourself with special people who are respected and around whom people gather, and delegate the presentation of the company's goals to them. These selected ambassadors should have the energy and drive needed to get results. The most important thing for you is to facilitate the implementation of the program and keep in touch with the ambassadors.
Support your commitment: Sometimes managers feel that if they offer employees time to follow up on their personal issues, it should be sufficient, but this can be seen as a lack of conviction. To bring out the best in employee engagement programs, you need to lead by example as you gently push it forward from behind. If employees can not agree on what measures they want to support, you can suggest something. When staff are afraid to go too far, give them the opportunity to push further. If the staff manages to generate money to be donated to a good cause, the company can provide a similar amount.
Seek out the problems: I have seen many companies that are victims of a narrowed mindset. They see the same people every day, eat at the same table in the canteen and feel very comfortable within the company walls. One of the opportunities you have when it comes to sustainability goals is to connect with the outside world, see the challenges you want to address at the grassroots, and gain a deeper understanding of the cause you support. It can be anything from inviting a speaker from an organization or visiting a local hospital to having a clean-up campaign with neighbouring businesses. By designing a strategy that reaches far beyond the walls of the business, you learn more about the real problems and maybe you can get some new allies when it comes to the cause you support.
Share what you learn: Do not base everything on your own internal dialogue when it comes to the issues you are going to support. The media will undoubtedly have a constant stream of news about the same issues. You can use this information to build knowledge within a topic that is often quite complex. Sometimes a statement sounds better if it comes from an authority in the field. If you see something useful, retweet it, or share inspiring TED Talks, forward blogs and news stories that add insight. The more you share, the more others will contribute and the more progress you will make.
Reassess and renew: Do not let employees forget why you do this. The main reason for engaging in the sustainability goals is that we should be able to see radical changes by 2030. Like any initiative from management, one should assess the progress towards the original goals and make new decisions based on the situation.
One of our customers, Grieg Seafood, is one of the world's largest salmon farmers, in other words, they work with a food source that is critical for a sustainable future. They often have to work with local communities around the world. This means that they take sustainability very seriously, to such an extent that they have integrated their sustainability goals into all aspects of the business model.
When they report on the integrated results of the business, this is in line with many of the UN's most important performance indicators. This provides motivation for the employees and provides an even more in-depth collaboration with local communities. Not only does such a commitment sharpen the company's efforts, but it also assures investors that Grieg Seafood will succeed at all levels of its long-term strategy.
"There is no doubt that the UN has presented very ambitious goals. It will not be easy, but change always provides opportunities for those who are willing to adapt. "
Opportunity for brands
Forward-looking companies see the UN's goals as an opportunity, not an obstacle. The sustainability goals can give the company a springboard when it comes to innovation and repositioning of brands for the future.
If progress is made, prosperity can flourish even in poorer countries. New markets will emerge with new consumers to connect with. Eventually, these countries, which few have noticed in the past, can become a source of new supplies.
The most important opportunity when it comes to sustainable brands is young people. They inherit the mistakes that previous generations made. These people (including the millennial generation ), consist of people with a strong motivation since they are born into a challenging world with problems that they have not asked for. Companies that clearly stand for sustainability will most likely receive support from people who are motivated to improve their own future.
There is no doubt that the UN has presented very ambitious goals. It won't be easy, but change always offers opportunities for those willing to adapt. In a Ted Talk , Michael Green has made a recommendable update on the progress of the UN's goals for sustainable development.
