In honor of the 9th anniversary of the United Nations Sustainable Development Goals (SDGs), ten European Country Networks of the UN Global Compact today revealed the findings of their collaborative effort, the “European Private Sector SDG Stocktake.” This initiative assesses the European private sector’s contribution to the SDGs.
The 2024 study draws on aggregated data from companies across ten European nations where the UN Global Compact operates: France, Spain, the United Kingdom, Italy, Switzerland/Liechtenstein, Greece, Ireland, Bulgaria, Serbia, and Turkey. Conducted in partnership with PwC France and Maghreb, the study evaluates key aspects of sustainability, including knowledge levels, preferred focus areas, implemented actions, and compliance reporting under the Corporate Sustainability Reporting Directive (CSRD).
The findings indicate a growing awareness and integration of SDGs among European businesses, with significant focus on gender equality, economic growth, and climate action, aligning with UN priorities.
Key Findings:
- 69% of European companies possess a deep understanding of the SDGs.
- 59% have adopted a sustainable development strategy that incorporates the SDGs.
- Companies are primarily focused on gender equality (44%), sustainable economic growth (44%), and climate change mitigation (41%).
- 58% of companies recognize a positive effect of the SDGs on their economic performance.
- 26% of European companies do not measure or assess their contribution to the SDGs.
“Many European companies are now embedding the SDGs into their core operations, taking proactive steps to address contemporary challenges. However, the European private sector must enhance collaboration with all relevant stakeholders, which is essential for the success of the 2030 Agenda,” stated Nils Pedersen, Executive Director of the UN Global Compact Network France.
“I am encouraged by the ambitious action plans being developed by the European Union and governments, such as the Green Deal, alongside the efforts of European companies to accelerate the integration of sustainability principles,” remarked Sanda Ojiambo, Assistant Secretary-General, CEO, and Executive Director of the United Nations Global Compact.
Increased Integration of SDGs Among Companies
A substantial majority of respondents (69%) are familiar with the SDGs, with 27% having only a superficial understanding and only 5% unaware prior to the survey. Of the companies surveyed, 59% have a sustainable development strategy that includes the SDGs, while 18% integrate the SDGs informally and 12% have a strategy that does not involve the SDGs. Additionally, 12% lack any strategy.
Focus on Key Priorities
Companies are predominantly taking action in the following areas:
- Gender Equality (SDG 5) – 44%
- Sustainable Economic Growth (SDG 8) – 44%
- Climate Change Mitigation (SDG 13) – 41%
- Health Promotion (SDG 3) – 40%
- Sustainable Consumption and Production (SDG 12) – 39%
- Quality Education (SDG 4) – 36%
Conversely, actions related to ocean preservation (SDG 14) (11%), food security (SDG 2) (13%), and sustainable cities (SDG 11) (17%) are less common.
Positive Impact on Economic Performance
While 32% of companies believe the integration of SDGs has a moderate positive effect on their economic performance, 26% perceive it as significant, and another 26% have not assessed the impact. A minimal 1% feel it has negatively affected their performance. Notably, 42% believe they have achieved a considerable comparative advantage due to SDG integration, while 35% see it as a slight advantage; only 9% report no impact.
Challenges in Measurement and Evaluation
A considerable 26% of European companies do not measure or evaluate their contribution to the SDGs. While 41% have defined performance indicators, they lack public, measurable, and time-bound objectives. Only a third (33%) have established such indicators and objectives.
Connection Between SDGs and Regulations
Among companies reporting an impact from the CSRD, 87% plan to explicitly reference the SDGs in their reports. Additionally, one-third of the companies indicated that they are integrating the SDGs to better navigate sustainability regulations.
Recommendations for European Businesses
The European networks of the United Nations Global Compact provide five recommendations for businesses:
- Directly incorporate the SDGs into business strategies.
- Enhance communication regarding SDGs by implementing progress measurement tools.
- Foster partnerships with various stakeholders, including governments and civil society organizations.
- Educate suppliers on SDG-related issues.
- Align the SDGs more effectively with financial considerations.