The Sustainable Development Goals revolve around five areas: people, planet, prosperity, peace and partnership.
By meeting sustainability goals, a company can reduce its environmental impact, cut costs and better access financing.
There are three aspects to take into account when implementing a sustainability strategy: economic, environmental and social.
There are many companies on the market that are demonstrating that responsible development measures are not only socially and environmentally viable, but also economically.
Implementing a sustainability policy helps harmonize business country code philippines mobile objectives with community and environmental concerns.
Obstacles related to the implementation of corporate social responsibility may be due to a lack of awareness and a shortage of human and financial resources.
More details below.
What is sustainable development?
Sustainable development is development that enables present and future generations to meet their needs equally. This means that society, government and all businesses have an impact not only on the present but also on the future they are shaping and must work together to find a balance between economic growth, environmental protection and social progress.
What are the Sustainable Development Goals?
There are 17 Sustainable Development Goals (SDGs), which have been adopted by all UN Member States as the 2030 Agenda. They focus around five areas: People, Planet, Prosperity, Peace, Partnership.
Why are Sustainable Development strategies key for SMEs?
Opportunity to access new markets - Many large companies and public institutions are required to report on whether their suppliers meet sustainability goals, so they pay particular attention to this aspect when selecting business partners. They may prefer to work with entities that operate in line with an ESG strategy, making small and medium-sized companies with a sustainability agenda more attractive and sought after by large organisations.
Minimize your impact on the environment - Incorporating sustainability initiatives can include resource savings, energy efficiency, waste management, or investing in eco-friendly packaging or sustainable products. This improves the company's reputation, contributes to environmental protection, and reduces the company's costs.
Reduce operating costs - Saving energy and water and reducing waste have a positive impact on cost reduction, which promotes business growth and helps to better achieve its sustainability goals.
Strengthening relationships with business partners - The ESG strategy also takes into account the development of local communities and sustainable supply chain management, so that better business conditions can be achieved, procurement costs reduced, brand image improved and, consequently, the environment protected.
Improving the company's image - By implementing a sustainability strategy, a company not only differentiates itself in the market, but also gains access to more customers and investors by minimizing the risk of negative perceptions.
Increase competitiveness - Meeting sustainability goals helps to increase innovation and brand appeal, production efficiency and access to new markets. It makes the company stand out more in the SME market.
Increased innovation - Implementing sustainability policies can lead to the need to develop new technologies, production processes, etc., increasing creativity and innovation in operations. Innovation can enable you to become a leader in the green transformation, opening up new business opportunities and attracting new customers.
Better access to finance – More and more investors are paying attention to sustainability and may therefore favour companies that demonstrate this approach. In addition, EU regulations such as the European Green Deal make companies that demonstrate a track record of sustainability more likely to receive funding or grants for innovative business strategies.