Dansk
Dear reader. If you are expecting a column on the necessity of the UN SDGs for humanity, read no further. But if you want to read a bit about why and how the SDGs can make your business stronger - hang on a bit longer.
First, a few facts: last year, a survey by Epinion showed that 79% of Danish citizens are aware of the SDGs. The question is, of course, whether this relatively high level of awareness has an impact on customer and consumer behaviour.
My contention is that if you ask the same respondents to name just 3 of the 17 SDGs, very few would get it right. And to top it off: when did you choose a milk in the supermarket because it contributed to SDG 11, 13 or 15? So why bother as a company?
The answer is that the SDGs cannot be used as a gloss on your company's glory. They can, however, be used to ensure that your business is relevant in the longer term. In other words: SDGs don't belong in your marketing department, they belong in your engine room.
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This is because the SDGs have moved from being mere goals to being global megatrends - in part because they are being implemented nationally, regionally and globally in everything from legislation to procurement requirements. And minimum requirements are being raised all the time.
One example is the government's recent agreement on green tax reform, which makes CO2 emissions significantly more expensive for a number of companies. The political debate was not about whether the tax was too high, but that for some industries it was too low. The trend is one-way.
A more mundane example is Formula 1. In the early 90's I had the pleasure of helping a then young talent - now former Formula 1 driver - Jan Magnussen with his first events and sponsorships. Back then, racing cars were roaring petrol guzzlers. In the late 00s, hybrid engines were introduced on the most forward-thinking teams. Last year, Formula 1 announced that races will be run on 100 percent sustainable fuel from 2025. Even on the black circuit, green has become a premise.
The development reminds me a bit of the creation of a cotton candy in Tivoli. Once the pink layers have started to stick to the stick, the next layers go quickly.
This is also reflected in the recruitment of staff. We now see a clear trend that the younger generation increasingly wants meaningfulness in their career choices. And they only need to read the first two paragraphs of the job ad to decode whether your company is using the SDGs as a marketing ploy or in the engine room.
It narrows the recruitment base and thus the skills of those companies that cannot link their strategic efforts to solving today's global challenges. First gradually - then in a hurry.
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A rule of thumb is that if your work on the SDGs can be done in a couple of long days, you'd better drop it. If you want them to matter, take them seriously. It takes effort.
Fortunately, there are so many sub-goals for each SDG that many companies can see themselves in one or more of the goals. The key here is to stay true to your company's DNA.
Window companies can probably rarely contribute to the goal of clean water. And few shoe manufacturers can contribute to ending hunger.
Instead, look at which of the goals your company is already contributing to. For example, window companies and shoe manufacturers can both contribute to SDG 8 on decent jobs and economic growth in developing countries.
The next question is: What will it take for us to contribute even more? The question alone quickly sets in motion thoughts about new market opportunities, which of course need to be complemented by thorough situation analyses and well thought-out business cases.
A classic example is Grundfos, which used the SDGs in this way relatively early on. This meant, among other things, that the company redefined itself from a pump manufacturer to a global supplier of clean water. This created more business opportunities, but still within a manageable strategic framework. Precisely because the change happened in the engine room rather than in the marketing department, it has become a building block rather than bullshit bingo.
Less can do it too. But the prerequisite is that the SDGs and the whole sustainable approach are incorporated as a commercial compass into the company's strategy.
This column was published on Jyllands-Posten's Finans and in Jyllands-Posten, Erhverv on 28 July 2022.
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