ESG’S TO SDG’S: CONNECTED PATHS FOR BETTER FUTURE

The SDGs offer us an integrated perspective to combat the Covid 19 crisis. SDGs were formulated to bring a global consensus on pressing and pervasive social and environmental challenges, which thereby rendered them universality in application and scalability in context, to gauge the impact of ESG investment strategies. SDGs help in mainstreaming the granular acceptance of ESG based investment decisions while anchoring their wider reach in corporate circles.

As businesses navigate through changes brought in by globalization, technology, society and consumer behavior, embedding Environment, Social, and Governance (ESG) factors into their core strategy can help deliver long-term value. The COVID-19 pandemic has reinforced importance of ESG framework as a key approach to long term business resilience and further accelerated the transition to multi-stakeholder approach.

There is need to look at the overarching linkages between the investment case for SDGs and ESG driven investment decisions, and how they can lead to tangible consequences for both the investors and the corporates.

SDGs, ESG Facilitation and Net Zero Emissions

“United Nations estimated that by early 2021 countries representing around 65% of global CO2 emissions and around 70% of the world's economy will have committed to reaching net-zero emissions and carbon neutrality”

ESG_Graph
Source: https://sustainometric.com/esg-to-sdgs-connected-paths-to-a-sustainable-future/

There is a propelling need for all businesses to look through their goals and objectives, to understand how dynamic a role they can play in making the earth a green, safe and pollution-free haven. Several countries have started heading towards creating their economy Net Zero emissions, focussing on ESG aspects and we look forward to bringing about this change in India as well.

ESG considerations can proffer a new strategic lense to view and assess the business decisions under SDG-led scenario. At macro level, linking of SDGs to existing ESG considerations will serve as a common communication medium to shape and articulate business decision-making process and investment strategies.

The SDG dashboards highlight each country's strengths and weaknesses in relation to the 17 goals, presenting performance in terms of levels and trends.

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Source: https://dashboards.sdgindex.org/chapters/part-2-the-sdg-index-and-dashboards

The objective of Net Zero is not just to track and reduce emissions, but to completely stop the carbon emissions by bringing about a balance through absorbing an equal amount from atmosphere.

In the wake of current health scenarios, businesses have been focusing on ways to reduce emissions and creating a pollution-free environment in this decade. The realization to restrain global warming and head towards a 1.5 degrees world is the need of the hour. This will not only help in flourishing the existing businesses but will also up the graph of employment. While 24 of the top Indian companies have already committed to the Net Zero emission approach, we aim to target more companies and fill in the gap that remains.

To eradicate climate changes as a road blockage to achieving SDGs, businesses will have to act responsibly and commit to the net-zero approach.

The Business Statement

“As per the Business & Sustainable Development Commission, sustainable business models related to the SDGs could open economic opportunities worth up to $12 trillion and increase employment by up to 380 million jobs by 2030”

The world has marched into the “Decade of Action”. With less than ten years left to achieve the Global Goals, nations are accelerating the design and implementation of sustainable solutions to the world’s biggest challenges - ranging from poverty and gender inequality to climate change. As well said “A thriving society in a thriving environment” has the triple bottom line factors - People, Planet, and Profits (3Ps) which are increasingly becoming an area of focus worldwide.
Responsible investments by businesses through the allocation of capital on sustainable equipment and other assets like green technology, will ensure long-term "good" and inclusive and sustainable growth. On the other side, investments that may cause harm to the environment, society, or corporate governance in the long term, should be avoided as they can result in a strong ESG proposition. Businesses have a major role to play in recalibrating to an economic system that supports sustainable growth and profits. We must set ambitious goals, measure ourselves differently, account for our actions and collaborate across organizations, industries and regions. It can be concluded that the co-existence and synchronization of ESG considerations with the SDGs can expedite the contribution of corporate groups within the broader space of the Global Goals leading to business growth, and that privilege is almost in investors’ hands. Leading companies are already taking action, but time is of the essence. More must join, so we can move faster, together, into a sustainable future.

Leading companies are already taking action, but time is of the essence. More must join, so we can move faster, together, into a sustainable future.