How Many European Companies Integrate SDGs Into Their Strategies

Seven out of ten European companies have an in-depth knowledge of the 17 Sustainable Development Goals ( SDGs ) set by Agenda 2030 and six out of ten integrate them into their corporate strategy, focusing especially on gender equality, decent work and climate change.

That is what emerges from the European Private Sector SDG Stocktake 2024, the report produced by the European networks of the UN Global Compact and presented in New York during the week of the UN General Assembly. The survey involved 1,422 European companies based in 10 countries (Italy, France, Spain, the United Kingdom, Switzerland/Liechtenstein, Greece, Ireland, Bulgaria, Serbia and Turkey), with the aim of measuring their commitment to integrating the SDGs into their business.

European companies demonstrate a strong level of understanding of the SDGs

69% of the companies believe they have a thorough knowledge of them and 59% saying they integrate them into their sustainable development strategy.

This commitment is mainly associated with the desire to strengthen the corporate sustainability strategy (44% of the sample). 32% of the interviewees also highlight the key role of the UN global objectives to better address European regulations, in light of the progressive implementation of new EU directives such as the Corporate Sustainability Reporting Directive ( CSRD ). In this sense, 87% of the sub-sample formed by companies affected by the CSRD declare that they will expressly refer to the SDGs in their sustainability reporting.

The report highlights that the European private sector mainly takes action on SDG 5 on gender equality (44%), SDG 8 on decent work and economic growth (44%) and SDG 13 on climate action (40%).

It is encouraging to note that 39% of the companies interviewed act on the SDGs by integrating them directly into their processes and activities. In general, 58% of the sample believe that this has had a positive impact on their economic performance and 26% even consider it significant.

The study shows, however, that the contribution to sustainable development and the SDGs is not yet measured by companies in a systematic and efficient way, as only a third of respondents have set specific, measurable and time-bound goals to monitor their commitment and action, as well as progress. Furthermore, only 21% of companies have identified the SDGs that are their priorities and have assessed the positive and negative impacts of their activities.

“As the 2030 Agenda approaches its final phase, the urgency of accelerating progress towards the SDGs cannot be underestimated,” said Daniela Bernacchi , Executive Director of the UN Global Compact Network Italy. “European companies have made significant steps in aligning with the goals, but it is clear that we must transform these ambitions into concrete results.”

“The increasingly complex and sustainability-oriented European regulatory framework, which will be effective gradually between now and 2029, offers a unique opportunity to strengthen commitment and make companies’ sustainability results and performance measurable and homogeneous. Collaboration between companies, institutions and civil society will be essential to make Europe a global sustainability model. These public-private-third sector alliances, therefore, are a critical success factor in bridging the gap that still exists with respect to achieving the goals of the 2030 Agenda.”

Where are Italian companies at?

88% of the Italian companies interviewed say they have acquired an in-depth knowledge of the SDGs. In particular, among the companies that have developed a sustainability strategy, 72% say they have directly integrated the SDGs against 10% that say they have not done so: a confirmation of how the 2030 Agenda is an essential framework for most of the private sector. The three main SDGs on which the Italian companies interviewed focus their efforts are SDG 15 (life on land), SDG 3 (good health and well-being for all) and SDG 16 (peace, justice and strong institutions).

Following the entry into force of the decree implementing the CSRD in the legal system, 83% of the Italian companies involved have declared that they will refer to the SDGs in their sustainability reports. To measure their contribution to the global goals, 43% of the companies in the Italian sample use specific, measurable and time-bound performance indicators, while 46% limit themselves to using simple performance KPIs without time objectives and measurability. 11%, however, do not use any type of measurement.

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(Featured image by Annie Spratt via Unsplash)

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First published in ESG NEWS. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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