State of Progress: Business contributions to the SDGs

A 2020-2021 study in support of the Sustainable Development Goals

This research by GRI explores how a sample of 206 GRI reporters (companies reporting on their sustainability performance using the GRI Standards) communicate their support and actions regarding the UN Sustainable Development Goals (SDGs). The study is based on published sustainability reports and information from the reporters’ websites.

The research team rated companies against five criteria: Commitments, Plans, Actions, Progress and Suppliers. For each category, a traffic light system was applied and each company was awarded either a green, amber or a red colour rating for their support of the SDGs. A green rating in any given category equalled to one star, so five stars meant that a company achieved a green rating (the best possible) in all five categories.

• Commitments
• A total of 83 companies (40.3%) were awarded a star for explicitly linking measurable commitments to the SDGs. 74 companies (35.9%) indicating measurable commitments to tackle social and environmental issues that indirectly supported the SDGs were given amber ratings, while 49 businesses (23.8%) were given red ratings for not outlining any specific and measurable commitments to the Global Goals.

• Plans
• 143 companies (69.4%) were awarded a star for their statement of support for the SDGs, and for mentioning which SDGs they prioritised. 27 companies (13.1%) were given an amber rating for showing general support of the SDGs but not clarifying which Goals were most relevant to their business. 36 businesses (17.5%) were awarded a red rating for not expressing any support, through statements, for the SDGs. A star for plans towards the SDGs was awarded to businesses across at least 16 different industries.

• Actions
• A total of 61.2% of the companies researched (126 companies) achieved a star for showing how their positive actions supported the SDGs and addressed social and environmental issues, aligning those actions with a specific SDG. 62 companies (30.1%) were awarded an amber rating for taking actions to tackle social and environmental issues but not aligning them with a particular Goal, while 18 companies, or 8.7%, were given red ratings for not taking any actions in support of the SDGs.

• Progress
• 42 companies (20.4%) were awarded a star for their progress in support of the SDGs, evidencing measurable data of their actions and explicitly aligning them to a particular SDG. 70 businesses (34.0%) achieved an amber rating for progress made towards achieving the Goals, but without an explicit link to any specific SDG. 94 companies (45.6%) were given a red rating for their reporting efforts and progress made. 100% of companies within Aviation, Equipment, Railroad, Retailers and Water Utilities received a star for reporting progress on their contribution to the SDGs.

• Suppliers
• Only one of the companies researched achieved a star for encouraging their suppliers to explicitly support the SDGs. 157 companies (76.2%) were awarded an amber rating for working with their suppliers to tackle environmental and social issues, while 48 companies (23.3% ) were given red ratings for not showing or mentioning how and if their suppliers supported the Global Goals.

Key research findings include:

• Of the 206 companies researched 0.5% achieved five stars, 34.9% were awarded four stars, 14.1% were given three stars, 13.6% were awarded two stars, 7.3% achieved one star and 29.6% were awarded zero stars.
• 83% of companies stated their support for the SDGs.
• The most common Goals supported by businesses were SDGs 8 (Decent Work And Economic Growth), 12 (Responsible Consumption And Production), and 13 (Climate Action).
• 69% of businesses stated which Global Goals were most relevant to their business.
• 40% of the companies researched made measurable commitments towards the SDGs.
• Businesses in Asia Pacific showed the highest level of reporting against the Global Goals.
• Only 13 businesses (6.3%) reported that their current operations may have a negative impact on one or more of the SDGs.
• The largest companies appeared to have more developed reporting against the SDGs.

The study concludes that today, more than ever before, strong international cooperation is necessary to ensure that humanity recovers from the COVID-19 pandemic and achieves the SDGs. Both the global community and businesses play a key role in this recovery, and in creating a more equitable and sustainable post-Covid world.

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This article is based on published information by GRI. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the publication’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.globalreporting.org/media/ab5lun0h/stg-gri-report-final.pdf