UN Sustainable Development Goals (SDGs)

Provide Universal Goals

Define Targets and Indicators

Guide Action and Investment

Foster Partnerships

Millennium Development Goals (MDGs)

The SDGs build on the Millennium Development Goals (MDGs), which were in place from 2000 to 2015. While the MDGs focused primarily on developing countries, the SDGs are universal and apply to all countries.

Rio+20 Conference

The 2012 Rio+20 Conference on Sustainable Development initiated the process to develop the SDGs, calling for a set of sustainable development goals that would build on the MDGs and converge with the post-2015 development agenda.

Adoption in 2015

The 2030 Agenda for Sustainable Development, including the 17 SDGs, was adopted by all UN Member States in September 2015. The agenda came into effect on January 1, 2016, with a target date of 2030.

Inclusive Process

The SDGs were developed through the most inclusive negotiation process in UN history, involving governments, civil society, business, and other stakeholders from around the world.

Targets

There are 169 targets across the 17 SDGs. Targets are specific objectives that define what needs to be achieved for each goal. They are:

• • Specific - clearly defined objectives
• • Measurable - can be quantified
• • Achievable - realistic within the timeframe
• • Relevant - aligned with the goal
• • Time-bound - to be achieved by 2030

Indicators

There are 231 indicators to measure progress toward the 169 targets. Indicators provide the metrics for tracking progress:

• • Data-driven - based on measurable data
• • Standardized - consistent methodology
• • Global - applicable across countries
• • Regularly reported - annual progress monitoring

Monitoring and Reporting

The UN publishes annual progress reports on the SDGs, tracking progress toward the targets using the indicators. Countries submit voluntary national reviews to share their progress and challenges.

Materiality Assessment

Companies should conduct a materiality assessment to identify which SDGs are most relevant to their business and stakeholders. This helps focus efforts on the goals where the company can have the greatest impact.

Setting SDG-Aligned Targets

Companies can set targets aligned with specific SDG targets, such as reducing emissions (SDG 13), improving energy efficiency (SDG 7), or increasing gender diversity (SDG 5). These targets should be specific, measurable, and time-bound.

Integration into Strategy

SDGs should be integrated into corporate strategy, operations, and decision-making. This includes considering SDG impacts in product development, supply chain management, investment decisions, and stakeholder engagement.

Measurement and Reporting

Companies should measure and report their progress toward SDG-aligned targets. Many companies use sustainability reports to disclose their SDG contributions, often referencing GRI Standards or other frameworks.

Stakeholder Engagement

Engaging with stakeholders on SDG alignment helps ensure that company efforts are aligned with stakeholder expectations and contribute meaningfully to sustainable development.

Different Purposes

• • SDGs: Global goals for sustainable development - provide the context and vision
• • ESG: Reporting frameworks for corporate sustainability - provide the standards and metrics

Complementary Relationship

SDGs and ESG frameworks are complementary. SDGs provide the global context and goals, while ESG frameworks provide the reporting standards and metrics for companies to disclose their sustainability performance and contribution to the SDGs.

Alignment and Mapping

Many ESG frameworks, including GRI, have mapped their standards to the SDGs. Companies can use ESG reporting to demonstrate their contribution to specific SDGs, creating a clear link between corporate disclosures and global goals.

Investor Perspective

Investors increasingly consider both SDG alignment and ESG performance when making investment decisions. SDG-aligned investing focuses on contributing to global goals, while ESG investing focuses on managing ESG risks and opportunities.

Progress Off Track

Many SDGs are off track to be achieved by 2030, particularly environmental goals like climate action and biodiversity. The COVID-19 pandemic has also impacted progress on several goals.

Data Gaps

Data availability and quality vary across countries and indicators, making it difficult to accurately measure progress and compare performance.

Corporate SDG-Washing

Some companies engage in SDG-washing by claiming alignment with SDGs without meaningful action or impact. This undermines the credibility of SDG reporting.

Complex Trade-offs

Progress on some goals may conflict with progress on others, creating complex trade-offs that require careful balancing and prioritization.