The word ESG (Environmental Social and Governance) has definitively gained popularity in the latest years. Its use has seen exponential growth among all different industries. It has become more important, driven especially by climate change and social impact thematics. In particular by companies' efforts to seek competitive advantage and differentiation. While in the financial space, investors desire to incorporate non-financial analysis for better returns.
Sometimes there is confusion in using and claiming terms like responsible, sustainable, impact and ESG investing. People and companies can rely on several different ESG features, metrics and data (i.e. carbon footprint, climate change, labour management, corporate governance) when looking to be sustainability compliant. There is still a lack of clear guidelines for followers for better practices, but the United Nations' Sustainable Development Goals, set up in 2015 by the United Nations General Assembly to succeed the Millennium Development Goals, could be considered the vademecum to achieving a better and more sustainable future for all.
The Sustainable Development Goals are included in an UN-GA Resolution called the 2030 Agenda. They represent a call for action to address the global challenges we face, including poverty, inequality, climate change, environmental degradation, peace and justice. Promote prosperity while protecting the planet. They recognize that ending poverty must go hand-in-hand with strategies that build economic growth and address a range of social needs including education, health, social protection, and job opportunities while tackling climate change and environmental protection. They are vital for a recovery that leads to greener, more inclusive economies, and stronger, more resilient societies.
The Sustainable Development Goals, which cover the three dimensions of sustainable development (economic growth, social inclusion and environmental protection), are grouped into 17 interlinked global goals:
1) No Poverty: the economic fallout from the global pandemic has increased global poverty - for the first time since 1990. Circa 10 per cent of the world population, still live in extreme poverty today, struggling to fulfil the most basic needs like health, education, and access to water and sanitation. The first target is to eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day, by 2030;
2) Zero Hunger: the number of people who suffer from hunger began to slowly increase again in 2015. The broad target is to end hunger, achieve food security and improved nutrition, and promote sustainable agriculture;
3) Good Health and Well-being: ensure healthy lives and promote well-being for all at all ages. Before the pandemic, major progress was made in improving the health of millions of people and reducing mortality ratios;
4) Quality Education: obtaining an inclusive and equitable quality education is the foundation to promote lifelong learning opportunities for all, improving people’s lives and sustainable development;
5) Gender Equality: Gender equality is not only a fundamental human right but a necessary foundation for a peaceful, prosperous and sustainable world - i.e. empower all women and girls;
6) Clean Water and Sanitation: clean, accessible water for all is an essential part of the world we want to live in;
7) Affordable and Clean Energy: energy is central to nearly every major challenge and opportunity. It is extremely important to ensure access to affordable, reliable, sustainable and modern energy for all;
8) Decent Work and Economic Growth: Sustainable economic growth will require societies to create conditions that allow people to have quality jobs. It is important to promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all;
9) Industry, Innovation and Infrastructure: investments in infrastructure are crucial to achieving sustainable development. The target is to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation;
10) Reduced Inequality: to reduce inequalities within and among countries, policies should be universal in principle, paying attention to the needs of disadvantaged and marginalized populations - i.e. women are more likely to be victims of discrimination than men for religion, ethnicity and sex;
11) Sustainable Cities and Communities: make cities and human settlements inclusive, safe, resilient, and sustainable. There needs to be a future in which cities provide opportunities for all, with access to basic services, energy, housing, transportation and more - i.e. safe and affordable housing, affordable and sustainable transport systems, inclusive and sustainable urbanization;
12) Responsible Consumption and Production: ensure sustainable consumption and production patterns - i.e. achieve the sustainable management and efficient use of natural resources; reduce global food waste and food losses along production along the supply chains;
13) Climate Action: it represents a global challenge that affects everyone, everywhere. It is important and urgent to action to combat climate change and its impacts by regulating emissions and promoting developments in renewable energy. Currently, climate change is affecting the global community in every nation across the world. The impact of climate change, even via exacerbating the frequency of natural disasters, not only impacts national economies but also lives and livelihoods, especially those in vulnerable conditions;
14) Life Below Water: careful management of this essential global resource is a key feature of a sustainable future. Conserve and sustainably use the oceans, seas and marine resources for sustainable development;
15) Life On Land: sustainably manage forests, combat desertification, halt and reverse land degradation, and halt biodiversity loss. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss;
16) Peace, Justice, and Strong Institutions: promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels - i.e. reduce violence; protect children from abuse;
17) Partnerships: revitalize the global partnership for sustainable development. International cooperation is vital to achieving each of the 16 previous goals.
Despite some governments may fail to support sustainable development, every person or company can have a positive impact by following the goals aforementioned. They can guide our daily file under the economic, socio-political, and environmental dimensions. Commitment and effective actions by all of us are what we only need for peace and prosperity for people and the planet, now and in the future.
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