SDGs and Finance – What’s to come
What does the finance sector look like right now?
There is no doubt that the finance sector, being part of the services industry, has a significant impact on our economy. In 2019, the financial services sector contributed £132 billion to the UK economy, and today provides over 1.1 million jobs across the UK (1).
It has also been one of the most resilient sectors during the coronavirus pandemic with economic output being 3% below pre-pandemic levels, as of February 2020 (1). This presents an opportunity for companies in the sector to help support economic growth, rebuild communities and show innovation when developing new products.
For businesses to benefit from this opportunity, they will need to develop a strategy that is centred around sustainable development. This is where I believe, the UNs Sustainable Development Goals (SDGs) will play a pivotal role over the next decade.
What are the SDGs and how are they relevant to us?
The goals have been defined as ‘the blueprint to help achieve a better and more sustainable future for all’. There are a total of 17 goals, which are an urgent call for action by all countries - developed and developing - in a global partnership (2).
Having worked as a sustainability professional in the finance industry in 2018, I soon learnt that the sector lacked awareness of the SDGs. What is often overlooked is the opportunities that lie within the goals, where businesses could have the most impact. I first came across the goals when researching a competitors sustainability report, and I was gripped by the way they highlighted the relevant goals, defined the measures they have in place and monitored their progress. Such a simple and clear message that they have displayed to their stakeholders, recognising their contribution so far.
The goals can work as a guide, a great tool to identify the areas of sustainable development that are most relevant for any business, not just in finance. What makes them easy to use is that every goal has a specific agenda, with a set of targets and indicators that sit beneath them.
I personally believe that the SDGs are a great fit for the finance industry as it keeps the industry accountable for their actions, with a specific focus on their ‘Triple Bottom Line’, balancing People, the Planet and Profit.
But how can the finance industry support the goals?
I mentioned earlier the opportunities that could present themselves for the finance sector by aligning their strategy with the SDGs. From my experience and using the ‘Sustainable Development Goals Industry Matrix’ by KPMG(3), I have outlined the 4 key themes that group together market potential, societal demands and policy action, as well as giving some examples.
What I believe to be most relevant in the current climate is access to finance, tackling the barriers to financial inclusion and increasing efforts to support Goal 1 – No Poverty. This is important across the globe, but the aftereffects of COVID 19 will present a significant challenge in the UK. One example of these challenges would be the efforts to support rough sleepers, with councils and governments providing accommodation in hotels, but this is only a temporary fix. New innovative products and businesses in the finance industry taking responsibility of the challenge ahead needs to be at the forefront of their strategy, to make long lasting sustainable change.
What’s to come?
In the FTSE350, there are some positives in the movement towards aligning business strategy with the SDGs for finance companies. ‘Support the Goals’, an initiative that rates businesses that support the goals, revealed a significant improvement in the finance industry, where the proportion of stars awarded increased from 36.84% to 70% between 2018 and 2020 (5)
As awareness of the goals and sustainability in finance increases, integrating this into your business will no longer be a nice to have. We can already see that new regulations and external requirements are coming to surface, as well as rating platforms that can have a significant impact on your business reputation.
In my opinion, the finance sector is a key influencer in the world of sustainability. The industries and organisations that the finance sector is linked to is vast, and they could act as a catalyst to accelerate progress in making the SDGs 2030 agenda a reality. So, for those working in the finance sector, does your business strategy align with the UNs SDGs, or even sustainability in general? Are you doing enough?
Sarah is a graduate of MA Political Ecology, and spent 4 years at university studying and researching the social, economic, and political implications of environmental issues, including climate change.
Since gaining research experience through university and 3 years of volunteering for Support the Goals, Sarah is passionate about identifying trends in business ESG reporting and SDG support. She finds the most rewarding part is using this research to advise customers, and has worked with many businesses to identify trends in SDG support among their supply chains.
In her spare time, Sarah enjoys volunteering with animals, horse riding, going to the gym, hiking, and travelling.
Sarah is a graduate of MA Political Ecology, and spent 4 years at university studying and researching the social, economic, and political implications of environmental issues, including climate change.
Since gaining research experience through university and 3 years of volunteering for Support the Goals, Sarah is passionate about identifying trends in business ESG reporting and SDG support. She finds the most rewarding part is using this research to advise customers, and has worked with many businesses to identify trends in SDG support among their supply chains.
In her spare time, Sarah enjoys volunteering with animals, horse riding, going to the gym, hiking, and travelling.
What is this?
Sharing your sustainability progress isn’t only a way to engage staff, customers and suppliers. It can be a powerful PR tool. It can help you stay one step ahead of your legal requirements. And it can help you with other ESG ratings like CDP, EcoVadis and Support the Goals. We’ll help you spread the word about the good you do.
Sustainability reporting
Our standalone Reporting service gives you a comprehensive 20-page (approx.) report to share with staff, customers, investors and the press. Comprising your priority goals, commitments, case studies and more, and designed to match your corporate branding, it’s the simplest way to bring all your sustainability work together.
What is this?
You’ll want to measure the results of your actions to assess progress towards your commitments. But what should you measure and how should you do it? When you don’t have the in-house tools, capabilities or expertise, we do.
Our support package can help
It’s not always easy to measure the impact of sustainability actions. There’s a clear formula for carbon reporting, for example, but how do you assess social impact? Where should the data come from? What are the accepted reporting standards? And how should you display your results to ensure people understand it? We and our partners can help you measure the impact of the actions you take.
What is this?
You take the next steps on your sustainability journey. We’ll provide the guide and the map.
Our support package can help
It’s not easy figuring out where to go next on your sustainability journey, or how to get there.
With a TBL support package, you get the expertise, the tools and the guide, and you follow a road we’ve already travelled – many times. It makes setting a direction easier. You follow established best practice so there are fewer dead ends. And with our tracking tool, you’ll always have a clear view of progress made and next steps.
What is this?
Once you’ve identified the sustainability goals that matter most to you, you’ll want to do something about them.
Commit is about setting measurable targets for meeting your highest priority goals. It’s about making the credible, impactful, achievable commitments everyone can buy into. And it’s about agreeing governance, so the right people are accountable for achieving the commitments you agree.
What might this look like?
For example:
• Gender Equality (Goal 5): 50/50 gender split at board level by 2025
• Affordable and Clean Energy (Goal 7): Use only clean energy to power offices by 2030
• Climate Action (Goal 13): Net zero across the value chain by 2035
Our support package can help
A TBL support package gives you access to expert advice that can help you set environmental and social commitments including net zero and science based targets.
If we want a more sustainable world, everyone needs to get involved. That includes your employees. Our experts help you do that in a way that builds understanding and encourages involvement.
We will:
What is this?
How do you know which sustainability/ESG issues to target, and which to tackle first? Identify is about exploring the issues that matter most to your organisation and finding where your actions can make the biggest impact.
How we’ll support you
Our lively half-day workshop explores the issues through the lens of the Global Goals. You’ll end the session with a clear, visual presentation of low, medium and high priority sustainability goals, and get clear guidance on what to do next.
If we want a more sustainable world, everyone needs to get involved. That includes your employees. Our experts help you do that in a way that builds understanding and encourages involvement.
We will:
A circular economy model designs out waste from your business, keeping products and materials in use. Operating a circular economy model can cut costs. Many organisations are now using it to create entirely new revenue streams.
Our experts will show you how, by adapting your processes, you can be part of the circular economy – and do it in a way that’s the right ‘fit’ for your organisation.
For compliance. To meet the standards of a ratings agency. Or simply to be a responsible business. When you need the right sustainability policies and standards, we’ll help you develop ones that are engaging, easy to understand and relevant to your business.
If we’re to create a more sustainable world, everyone needs the skills and understanding to be able to play their part.
Every day, our advisers are helping senior teams understand sustainability within their organisation. They’re teaching suppliers to buy more sustainably or building the skills of new in-house sustainability managers. And they’re helping your employees become more carbon literate so they understand what carbon is and the personal difference they can make in work and at home.
Build the skills and understanding of your people.
Reporting the environmental and social impact of your business is an essential part of governance, openness and transparency, but with so many frameworks, it can be difficult to know which should demand your focus.
Our experts will help you meet the mandatory requirements of regulatory frameworks like SECR. They’ll help you prepare for soon-to-be-mandatory frameworks such as the Task Force on Climate-related Finance Disclosure (TCFD).
And when you’re exploring new, voluntary accreditations with ESG, DJSI or Sustainalytics, or want to improve your ranking with a supply chain framework such as EcoVadis or Support the Goals, they’ll help you choose the framework best suited to your business, boost your rating and gain the badges.
Setting science-based emissions reduction targets consistent with Paris agreement-aligned pathways is how your organisation moves closer to net zero. We’ll help you establish your current baseline, then help you set the targets (including Scope 3) that give your actions direction and purpose.
And as always with our experts, we’ll make the journey easy.
For any large organisation, reporting your Scope 1 & 2 emissions is a regulatory requirement. You meet that requirement by making a Streamlined Energy & Carbon Reporting (SECR) statement part of your annual report.
Our experts can help you with that – and they can help you go further. Our simple, powerful dashboards will make understanding your carbon footprint easy (whether you’re required to report on it or not). And when you want to take the next step in understanding your indirect (Scope 3) emissions, we’ll help you do that too.
Increasingly, your clients and customers demand sustainability not just from the way you operate but from the materials you use.
Our experts in materials and packaging help you understand how sustainable your existing products are. Then we recommend alternatives that deliver improved sustainability whilst protecting production costs and product quality, and keeping customers happy.
A circular economy model designs out waste from your business, keeping products and materials in use. Operating a circular economy model can cut costs. Many organisations are now using it to create entirely new revenue streams.
Our experts will show you how, by adapting your processes, you can be part of the circular economy – and do it in a way that’s the right ‘fit’ for your organisation.
Increasingly, your clients and customers demand sustainability not just from the way you operate but from the materials you use.
Our experts in materials and packaging help you understand how sustainable your existing products are. Then we recommend alternatives that deliver improved sustainability whilst protecting production costs and product quality, and keeping customers happy.
Setting science-based emissions reduction targets consistent with Paris agreement-aligned pathways is how your organisation moves closer to net zero. We’ll help you establish your current baseline, then help you set the targets (including Scope 3) that give your actions direction and purpose.
And as always with our experts, we’ll make the journey easy.
For any large organisation, reporting your Scope 1 & 2 emissions is a regulatory requirement. You meet that requirement by making a Streamlined Energy & Carbon Reporting (SECR) statement part of your annual report.
Our experts can help you with that – and they can help you go further. Our simple, powerful dashboards will make understanding your carbon footprint easy (whether you’re required to report on it or not). And when you want to take the next step in understanding your indirect (Scope 3) emissions, we’ll help you do that too.
Reporting the environmental and social impact of your business is an essential part of governance, openness and transparency, but with so many frameworks, it can be difficult to know which should demand your focus.
Our experts will help you meet the mandatory requirements of regulatory frameworks like SECR. They’ll help you prepare for soon-to-be-mandatory frameworks such as the Task Force on Climate-related Finance Disclosure (TCFD).
And when you’re exploring new, voluntary accreditations with ESG, DJSI or Sustainalytics, or want to improve your ranking with a supply chain framework such as EcoVadis or Support the Goals, they’ll help you choose the framework best suited to your business, boost your rating and gain the badges.
If we’re to create a more sustainable world, everyone needs the skills and understanding to be able to play their part.
Every day, our advisers are helping senior teams understand sustainability within their organisation. They’re teaching suppliers to buy more sustainably or building the skills of new in-house sustainability managers. And they’re helping your employees become more carbon literate so they understand what carbon is and the personal difference they can make in work and at home.
Build the skills and understanding of your people.
You know you need a sustainability strategy – but what next? What’s right for the size and nature of your business? And how can you ensure it drives the right actions?
We’ll help you set a strategy that’s robust and comprehensive because it uses the Global Goals as a framework. And we’ll ensure it’s a good ‘fit’ for your organisation, helping you align people, planet and profit.
For compliance. To meet the standards of a ratings agency. Or simply to show you’re a responsible business. When you need the right sustainability policies and standards, we’ll help you develop ones that are engaging, easy to understand and relevant to your business.
Your social impact is the effect your organisation has on people and communities as a result of its activities and policies.
You’ll already be doing good things in your community. Measuring the effect of your charitable work, volunteering, community outreach projects and more is important because it’s how you explain the difference you’ve made to your employees, customers and investors.
We help you understand how to measure and improve your social impact.
Almost 90% of your environmental and social impact exists not in your operations, but in the goods and services you buy from your suppliers. So if you want to make a real impact with your sustainability efforts, your supply chain needs to be involved. Our advisers can help. They will:
You’ve done great things. Now you need to share them. Communicating your successes is a powerful PR boost for your brand. It’s often a simple way to improve your ratings framework score. And it can help others to understand the importance of the work you’re doing and inspire them to get involved.
Our brand, marketing and communications specialists will help you spread the word with a standalone sustainability report that brings all your ESG efforts together in one document. In addition, we can help you with:
You know you need a sustainability strategy – but what next? What’s right for the size and nature of your business? And how can you ensure it drives the right actions?
We’ll help you set a strategy that’s robust and comprehensive because it uses the Global Goals as a framework. And we’ll ensure it’s a good ‘fit’ for your organisation, helping you align people, planet and profit.
Your social impact is the effect your organisation has on people and communities as a result of its activities and policies.
You’ll already be doing good things in your community. Measuring the effect of your charitable work, volunteering, community outreach projects and more is important because it’s how you explain the difference you’ve made to your employees, customers and investors.
We help you understand how to measure and improve your social impact.
Almost 90% of your environmental and social impact exists not in your operations, but in the goods and services you buy from your suppliers. So if you want to make a real impact with your sustainability efforts, your supply chain needs to be involved. Our advisers can help. They will:
You’ve done great things. Now you need to share them. Communicating your successes is a powerful PR boost for your brand. It’s often a simple way to improve your ratings framework score. And it can help others to understand the importance of the work you’re doing and inspire them to get involved.
Our brand, marketing and communications specialists will help you spread the word with a standalone sustainability report that brings all your ESG efforts together in one document. In addition, we can help you with: