Global Goals Yearbook 2023 makes SDG impact measurable

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Corporate’s view Businesses have various motivations for managing their impact. Some are driven by a deep-seated desire to create positive change for people and the planet, as this is at the core of their existence. Others may be motivated by concerns about regulatory or reputational risks that could arise from not taking action on sustainability issues. For some companies, managing impact can also unlock commercial value through energy savings, increased workforce retention, or customer loyalty. And there are those who believe businesses should respect society’s values and strive toward living up to these ideals – regardless of financial gain. Depending on each enterprise’s motivation behind sustainable practices, they will set either broad commitments – such as mitigating risk or achieving long-term financial performance goals alongside leaving a positive mark on our world – or more specific objectives that are aimed at supporting particular groups, places, and outcomes while addressing social and environmental challenges head-on. Self-image as Compliance Manager: It is imperative for companies to take action and prevent any harm caused by their operations. The first step toward this goal should be identifying the areas where the organization may potentially cause damage to people’s well-being or natural environment, followed by implementing measures that improve these outcomes in a sustainable manner. By doing so, businesses can align themselves with societal and ecological thresholds while ensuring the long-term sustainability of their practices. Self-image as Concern Manager: Companies have the power to positively impact stakeholders by prioritizing and enhancing the welfare of individuals or a specific community, as well as preserving our natural environment. This is crucial to ensure that we operate within sustainable boundaries set forth by society’s standards and ecological limits. By taking proactive measures to achieve these goals, enterprises can make meaningful contributions toward creating a better future for all involved parties while also safeguarding our planet’s health. Self-image as Changemaker: Companies have the power to positively impact both communities and nature, resulting in sustainable outcomes that were previously unattainable. By taking proactive measures toward sustainability, businesses can improve the well-being of people and protect our environment for future generations. It is imperative that companies prioritize their contribution to sustainable development, as it not only benefits society but also ensures long-term success for themselves. Businesses must not disregard the positive and negative effects they generate. The impact of a company’s distribution network, operations, or supply chain is just as crucial to consider as that of its products or services. In fact, a large business can create significant impacts through its production process alone. So how do enterprises navigate these complex situations? They must make informed decisions regarding whether the achievement of certain positive outcomes outweighs any potential negative consequences in the near term. For example, when producing electricity with various application fields in mind, it may be necessary for businesses to weigh up if this action will result in substantial carbon emissions. However, acknowledging such detrimental impacts does not mean ignoring them altogether; instead companies should actively work toward reducing their harmful footprint over time by setting goals accordingly. Impact valuation serves as a critical tool for organizations looking to estimate the relative value created versus that which is preserved or eroded for stakeholders expressed via common units – thereby ultimately aiding effective decision-making processes. 40 Global Goals Yearbook 2023
METHODOLOGY Investor’s view Investors who are committed to addressing social and environmental issues must recognize that impact management cannot operate in isolation from financial management. The major obstacle is the lack of interoperability between financial and impact management methodologies – an obstacle that poses a significant challenge to investment fund specialists. These experts have their own unique terminologies, frameworks, and datasets that exist independently of one another. Successfully incorporating impactful investments into decision-making processes requires investors to ask four fundamental questions: Investors who limit their approach to impact or financial considerations are missing out on potential gains. However, those seeking a more holistic investment strategy face the challenge of creating a customized plan that integrates social and environmental factors. The process begins with an impact analysis during pre-investment screening using both negative (excluding companies engaging in harmful practices) and positive screenings (including only those meeting minimum standards for positive impact). Once investments pass these tests, most investors make decisions based solely on financial performance. Unfortunately, few investors actively optimize both profit and societal benefits simultaneously beyond initial screening stages. This is where consulting firms like Impact Frontiers come into play by working alongside investors to develop new methods for integrating sustainable management strategies with traditional finance approaches while sharing best practices across industries. As Hannah Schiff from Nuveen says about Impact Frontiers: “Our clients expect us to deliver results through sound fiduciary duty as well as meaningful social change.” Therefore it is crucial to explore innovative solutions that balance economic growth without sacrificing the commitment to sustainability goals. ENTERPRISES AND INVESTORS FACE DIFFERENT TYPES OF IMPACT RISKS 1 Create an impact 2 Create a financial rating / preference preference ranking ranking IMPACT RISK & RETURN FINANCIAL RISK & RETURN 3 In detail: Put them together INVESTMENT LEVEL PORTFOLIO LEVEL Which investments offer more expected impact? How would you measure, set goals for, and communicate the impact of a portfolio of investments? Which investments offer more expected risk-adjusted financial return? How would you measure, set goals for, and communicate the risk-adjusted financial return of a portfolio? RISK-ADJUSTED FINANCIAL RETURN RISK-ADJUSTED IMPACT RETURN Measure, manage, and communicate integrated impact and financial performance of portfolios 5 Determine implications for future investments 4 Source: impactfrontiers.org/norms/ impact-financial-integration/five-stepstoward-integration/ Global Goals Yearbook 2023 41
Page 1 and 2: GLOBAL GOALS GLOBAL GOALS YEARBOOK
Page 3 and 4: “ H.E. António Guterres UN Secre
Page 5 and 6: BEST PRACTICES In alphabetical orde
Page 7 and 8: TOPIC TOPIC Global Goals Yearbook 2
Page 9 and 10: TOPIC No poverty, no hunger, peace:
Page 11 and 12: TOPIC Global Goals Yearbook 2023 11
Page 13 and 14: TOPIC evaluate and track these tran
Page 15 and 16: TOPIC well-known companies are invo
Page 17 and 18: TOPIC “ Now is the moment for cha
Page 19 and 20: IMPACT INVESTMENT “ We believe th
Page 21 and 22: IMPACT INVESTMENT increasingly awar
Page 23 and 24: IMPACT INVESTMENT As impact investi
Page 25 and 26: IMPACT INVESTMENT - Negative screen
Page 27 and 28: IMPACT INVESTMENT nable ss? Global
Page 29 and 30: IMPACT INVESTMENT a sustainable tra
Page 31 and 32: METHODOLOGY METHODOLOGY Global Goal
Page 33 and 34: METHODOLOGY All businesses have bot
Page 35 and 36: METHODOLOGY ENTERPRISE’S ACTIVITI
Page 37 and 38: METHODOLOGY Enterprises must evalua
Page 39: METHODOLOGY When corporations estab
Page 43 and 44: PUBLICATIONS PUBLICATIONS Global Go
Page 45 and 46: PUBLICATIONS United Nations Economi
Page 47 and 48: PUBLICATIONS United Nations Develop
Page 49 and 50: PUBLICATIONS OLDIE BUT GOLDIE: Worl
Page 51 and 52: BEST PRACTICES BEST PRACTICES Globa
Page 53 and 54: The product carbon footprint as a m
Page 55 and 56: “ The chemical sector holds a piv
Page 57 and 58: waste legislation; minimum content
Page 59 and 60: Among its advantages is that “it
Page 61 and 62: The Nespresso business model builds
Page 63 and 64: strategic partnerships with road an
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Page 67 and 68: facilitation of a diverse range of
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Page 79 and 80: AR 3 T FRAMEWORK AVOID Avoid new im
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Page 87 and 88: MEASURING IMPACT - IMPACT TARGETS F
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cals on health. Added to this are t
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• evaluating interventions and th
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a chance of reaching these goals wi
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ANNEX ANNEX Global Goals Yearbook 2
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ANNEX Various THE IMPACT OF A CIRCU
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ANNEX REN THE VALUE OF NATURAL CAPI
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ANNEX Various FINANCIAL INSTRUMENTS
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S ANNEX CORNEL UNIVERSITY, EPLER WO
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ANNEX Merck EQUITABLE HEALTHCARE FO
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ANNEX WHO THE TRIPLE BILLION METHOD
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The United Nations Environment Prog
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CDP is a not-for-profit charity tha
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