Are your sustainability goals an advantage or a threat?
Much has been said about what has been done to reverse climate change, lift others out of poverty, and create a just environment for all. This is the greatest challenge of our generation, and at times it has been difficult to know where to begin.
The UN Sustainable Development Goals appear to be a breakthrough for companies, as they now have a framework that allows them to demonstrate how they will address the global megatrends that affect us all. When we work with corporate communications, we see that the UN Goals provide clarity, direction and inspiration for many clients. These goals can also expose those businesses that do not have a clear strategy in this area, which can lead to negative consequences for them in the long term.
In this article, we will put sustainability into context, describe the megatrends, look at the impact of the UN goals on business strategies, and what improvements can be made in corporate 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 rapidly growing movement
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 Sustainable Development 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 Sustainable Development 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, a company's approach to sustainability will provide an indication of how adaptable they are in the face of change. Reporting has become more transparent and integrated , becoming a stronger indicator of how consumers, employees and investors perceive a company's qualities.
Confronting the megatrends
Some of the global megatrends may seem quite far removed from the everyday experiences of you and I, but they have major consequences for us all. Here are some examples:
Rapid urbanization: Half of the world's population lives in megacities like Shanghai, Tokyo, Mumbai, etc. The growth in these areas is unsustainable. Which slightly less populated areas will grow so large that they compete with them in the not too distant future?
Climate change and resource scarcity: As the world becomes more urbanized and affluent, the demand for energy, water, and food increases. But we only have a limited amount of natural resources available. Where can we find new alternatives to sustain our basic survival needs?
An economic power shift: Russia is in recession, China has slowed down, and while India is currently the sixth largest economy, it could rise to second place in the not-so-distant future. So where should businesses 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 specialized skills. How will we use our intelligence and knowledge to maintain people's expected standard of living?
Technological innovation: The ever-increasing connectivity and always-on-line means we now have unlimited information about consumer behavior. This is already causing a lot of anxiety when it comes to personal security, but how can it be used for good?
These are serious questions that will affect many companies for the foreseeable future. We are seeing the UN Sustainable Development Goals increasingly emerging as a common standard, affecting all parts of business strategy and in some cases leading to a complete rethinking of the business model itself. Here are some of the implications of this.
Local economies are getting stronger
Businesses are encouraged to focus on local-level opportunities to support communities, build strong infrastructure, and drive economic performance. One of Mission's clients, KONGSBERG , chose to build its ambitious satellite station in Svalbard.
Although it may not seem like the most "local" place, Svalbard is one of the best places in the world to receive satellite data. As a result, over 30 countries buy data from them. At the same time, there were bad times for the local mining community, which meant high unemployment and insecurity for those living there. After receiving training, there are better times for the men and women of Svalbard, now contributing to one of the fastest growing industries. KONGSBERG has made efforts within numbers 8, 9 and 11 of the UN's Sustainable Development Goals, by bringing growth to a community and the business community there.
Investment risk is assessed in a new way
Investors are now looking at the big picture and also acting on non-financial information when going through their processes. As a result, companies that use the UN Sustainable Development Goals to demonstrate the viability of their strategy are seen as more favorable players.
It wasn't that long ago that the aviation industry looked like the very spearhead of a forward-looking society and a very important component of international business. Due to its high consumption of fossil fuels and 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 very profitable. If airlines do not show more willingness to support sustainable goals, this once forward-looking industry could experience a lack of investment and public support.
An alternative transportation solution is Virgin’s Hyperloop One , which aims to transport passengers at the speed of an airplane on a subway using clean energy. An additional $172 million was recently invested to further develop this high-speed maglev (magnetic levitation) capsule. This risky project directly contributes to the following sustainability goals: 7, 9, 11, 12, 14, plus indirectly to many others. Admittedly, the project may sound a bit like a castle in the air, but clearly not to investors.
Sustainability attracts green money
Repairing environmental damage and improving education systems and the ever-growing communities around the world will not come cheap. The UN Sustainable Development Goals have helped investors understand and align their investments with companies that projects within this framework. The World Bank has allocated $23.5 billion to over 100 projects to help developing countries create projects that are in line with the UN goals.
French bank BNP Paribas joined the Breakthrough Energy Coalition, a group focused on innovation in the development of clean energy. It recently committed to investing €135 billion in new and greener energy projects and has been named the “World’s Best Bank for Sustainable Economics.”
"We're committed to creating a better, more sustainable future for our people, planet and communities through the power of sport."
Nike
Ambitions show strength
There is no doubt that the SDGs give us higher ambitions than just making money. But if there is no opportunity for profit here, it is unlikely that anything will happen. What the SDGs do is illustrate where a company can have the greatest impact and inspire a larger purpose that companies can rally around.
Nike has recently changed its original purpose to reflect the times we live in. On their website, they declare the following: “We're committed to creating a better, more sustainable future for our people, planet and communities through the power of sport.” This is not some impulsive move they make 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's going on in society.
We should give Nike credit for thinking much further than just seeing 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 communities and countries, and what they do aligns well with the UN goals of health, well-being, education and equality for all. Such a higher purpose can be what separates a leader from a follower. Nike will be able to enjoy all the benefits that come from having a motivated workforce, a compelling brand and 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 your business strategy, you show that your company is in touch with the society in which it operates. This creates a shared ambition, attracts and retains talented people. It simplifies communication, reduces recruitment costs and creates a strong culture.
Eight ways to create effective employee engagement
Clarify your goals: People rally around clear leadership. When the purpose is not specified, the goals don’t seem realistic, or the end result seems so vague that people lose faith in the project. One of the great things about the SDGs is that there are 17 of them, so there are bound to be some that align with your business and your employees’ desires. If it’s not clear which goals you should support, you can conduct a vote to involve your employees in the decision-making process, further engaging 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 the engagement: Sometimes leaders feel that if they offer employees time to follow up on their personal brand issues, that should be enough, 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 while gently pushing forward from behind. If employees can’t agree on what initiatives they want to support, you can suggest something. When employees are afraid of going too far, give them the opportunity to push further. If employees are able to generate money to donate to a good cause, the company can match it.
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: Don’t base everything on your own internal dialogue when it comes to the issues you’re going to support. The media will undoubtedly have a constant stream of news about the same issues. You can use this information to build your knowledge on a topic that is often quite complex. Sometimes a statement sounds better if it comes from an authority on the subject. If you see something useful, retweet it, or share inspiring TED Talks, forward blogs, and news stories that provide insight. The more you share, the more others will contribute and the more progress you will make.
Reassess and innovate: Don’t let employees forget why you’re doing this. The main reason to engage with the SDGs is to see radical change by 2030. As with any leadership initiative, you should assess your progress against your 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 reporting on the integrated results of the business, this aligns with many of the UN’s key performance indicators. This provides motivation for employees and enables even deeper collaboration with local communities. Not only does such engagement sharpen the company’s efforts, it also reassures investors that Grieg Seafood is succeeding 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 presents opportunities for those willing to adapt."
Opportunity for brands
Forward-thinking companies see the UN goals as an opportunity, not an obstacle. The SDGs can provide a springboard for companies to innovate and reposition their brands for the future.
If progress is made, prosperity will flourish even in poorer countries. New markets will emerge with new consumers to connect with. Over time, these countries, which few have noticed before, could 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 will not be easy, but change always presents opportunities for those willing to adapt. Michael Green has made a commendable update on the progress of the UN Sustainable Development Goals in a Ted Talk .