Education and partnerships between leaders in governments and private firms will help build effective solutions.
The more stakeholders who take action, the more we can work towards saving our planet.
After the United Nations (UN) released its Sustainable Development Goals (SDGs) [1] framework in 2015, 193 countries joined the global effort to combat climate change and create a more equitable world by 2030.
According to Dr. Ruben Burga [2], an assistant professor in the Department of Management at The Gordon S. Lang School of Business & Economics, the UN SDGs serve as a North Star for organizations, giving managers the freedom to adapt each goal to their firms’ unique place in society. For example, while Canadian firms may focus on diversifying their teams and decreasing carbon emissions, firms in India or Haiti may prioritize the elimination of widespread poverty. “The SDGs are a blueprint for many potential solutions,” Burga says. “Organizations get to lead the charge in practice for how we meet those goals.”
The dialogue surrounding environmental, social, and governance (ESG) practices has gained increased traction among firms in the last few years. In 2020, KPMG reported [3] that out of 5,200 companies worldwide, 80 per cent now release sustainability reports on year-end goals and metrics. The Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB) have also established reporting guidelines to hold firms accountable. These audits offer third-party assurance that a firm is following through on its promises to operate sustainably.
Although the field is ripe for growth, the wide scope of ESG can make it challenging to know where to start. Burga suggests a two-pronged approach that emphasizes education and partnerships between leaders in governments and private firms. “Once we deconstruct the problem into manageable pieces, we can work together to build effective solutions,” he says.
First, firms should continue implementing professional development initiatives centred on environmental and social sustainability. “Any major social change requires helping people understand why the issue is important and why they should take action,” Burga explains. “Employees are some of a firm’s key social and financial stakeholders, so it’s essential that they know how their work impacts the bigger picture,” he adds.
Academic institutions also play a crucial role in promoting sustainability, Burga adds. Every year, more and more programs like Lang are incorporating ESG training into their course curricula. The shift creates a pipeline of future leaders who are equipped to enter the workforce with a passion for sustainability and innovative ideas about how to accomplish those goals.
Second, partnerships are essential for the success of the UN’s SDGs in firms. Burga points to an ongoing effort in the City of Guelph-Wellington as a prime example of successful collaboration. Back in 2019, Guelph-Wellington won a $10 million grant through Infrastructure Canada’s “Smart Cities Challenge” with its proposal to become a more sustainable place to live and work. Now in 2022, Guelph-Wellington’s zero-waste plan [4] to achieve a circular food economy issues a call to concrete action on the part of every firm and resident in Guelph.
“It takes a village to achieve ESG goals,” Burga concludes. “Often, one firm’s efforts can feel small and insignificant. But the more stakeholders who take action, the more the entire picture comes together, and the closer we move toward saving our planet.”
Dr. Ruben Burga is an assistant professor in the Department of Management at the Lang School of Business and Economics. His research interests include organizational leadership in the context of social entrepreneurship and accountability principles and their effect on firm performance.
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Links
[1] https://sdgs.un.org/goals
[2] https://www.uoguelph.ca/lang/people/ruben-burga
[3] https://home.kpmg/xx/en/home/insights/2020/11/the-time-has-come-survey-of-sustainability-reporting.html
[4] https://guelph.ca/2022/01/circular-food-economy-enables-business-growth-increases-food-access-and-lowers-greenhouse-gas-emissions/
[5] https://www.uoguelph.ca/lang/content/webform/subscribe-business-impact-newsletter