If companies want to remain relevant for sustainable investment reasons, then they must align their objectives with those of the UN Sustainable Development Goals (SDGs). Investors and companies are eager to get a clear understanding of what it means to be ‘sustainable.’
Major investors have welcomed the SDGs and vowed to invest in ‘Sustainable Development Investments’ in certain areas that contribute towards the Sustainable Development Goals.
Product Assessment Methodology of Aligning with the Sustainable Development Goals
Some SDGs are not relevant to companies because they focus on nation-states. However, there are some sustainability objectives, which are aligned with the SDGs and can be used to assess the impact of a company’s product on sustainable development. The goals are subdivided into social and environmental objectives.
For each specific objective, qualitative analysis is used to determine whether a product or service has an extraordinary impact or not. Qualitative analysis also acts as a reasonable or weighty obstruction to the objectives.
Companies Transformation Strategies In Line With Sustainability
Over the next couple of years, SDGs will affirm their role as the main framework for all sustainable investment decisions and corporate governance. Assessing a company’s sustainable performance should include both the corporate and risk management aspects. An assessment should also be done on the impacts of the products or services that a company produces.
If the products of a company fail to keep up with the pace, then even the companies with the right structures for managing risk management may feel the pressure resulting from the transformation processes.
The SDGs and the effectiveness of their sustainability in companies will continue to be rolled out progressively in 2017. Transformation strategies for companies will supplement the corporate ratings.
The question that most companies should be asking is whether they have appropriate plans in place for reducing or completely eradicating non-sustainable products.