Bangkok--11 Dec--PwC Consulting
Eighty percent of South East Asia's residents are more likely to buy goods and services from companies that are committed to achieving the United Nations-backed Sustainable Development Goals (SDGs), according to a PwC report.
The SDGs were launched in September 2015 to present a roadmap for good business growth for the next 15 years. Covering 17 goals and 169 targets, the Goals shine a spotlight on some of the world's biggest issues, including gender inequality, poverty and climate change.
Business practices across the globe could change significantly as companies back governments in achieving the Goals, according to the PwC report SDGs Paving the Way Towards Market Leadership.
According to the study, 87% of South East Asian residents believe it's crucial for businesses to adopt the Goals, and 97% of businesses plan to address them within the next five years.
Andrew Chan, Sustainability Leader of PwC's South East Asian Consulting Services, says that there's already widespread awareness of the importance of the Goals across South East Asia.
"With 10 UN member states in the South East Asia region, there is a strong expectation for businesses to contribute toward the Goals. Although the prospects appear optimistic, measuring their impact on these Goals and having a continuous implementation strategy is imperative for long-term achievement of the SDGs," he said.
Only 45% of businesses say they plan to assess their impact on the goals, Chan said. That presents an opportunity for companies to do more to ensure sustainable growth and avoid wasting resources.
Sustainable Development Goals:
1) No poverty
2) Zero hunger
3) Good health and well-being
4) Quality education
5) Gender equality
6) Clean water and sanitation
7) Affordable and clean energy
8) Decent work and economic growth
9) Industry, innovation and infrastructure
10) Reduced inequalities
11) Sustainable cities and communities
12) Responsible consumption and production
13) Climate action
14) Life below water
15) Life on land
16) Peace and justice strong institutions
17) Partnerships for the goals
How South East Asian businesses are responding
The business landscape in South East Asia is moving toward greater sustainability.
According to the PwC study, the top three short-term actions businesses will take are: 1) Identify the Goals that are most relevant to the business (56%); 2) Set goals aligned with the SDGs that are relevant to the business (40%); and 3) create a Corporate Social Responsibility team (38%).
Respondents saw SDG 8 -- 'Decent work and economic growth' -- as having the greatest impact on the way they do business.
Malcolm Preston, PwC's Global Sustainability Leader, said the reasons for supporting the SDGs are compelling, and businesses are eager to get involved.
"The idea of businesses prioritising the SDGs that deliver the most financial benefits will no doubt raise some questions among critics. However, what this means for businesses that are actively working on this agenda is that their investment and planning efforts can contribute towards identifying the responsible environmental and societal practices that present the highest growth potential, benefiting society and business performance simultaneously," Preston said.
The SDGs come with complexities but also tangible benefits for businesses. Adopting the SDGs will support CEOs in driving longer-term visions for their organisations, improving the resilience of their business models and increasing opportunities to support national and global objectives.
The SDGs should also be a catalyst for greater innovation, helping companies adapt to future changes.
"In Thailand, we've seen the government and private sector running sustainability projects to alleviate poverty and help communities," said Wasan Chavalitvorakul, People and Organisation partner at PwC Consulting (Thailand).
"To further achieve long-term growth and sustainability that truly fits the SDGs, it's important that companies understand the impact of their operations and prioritise the goals that will benefit their businesses.
"PwC looks forward to working with Thai businesses and the public sector to help them to align with the Goals, particularly with implementation and measuring the impact."
PwC is in the process of developing a 'diagnostic tool' that will show which SDGs are of more relevance given the countries and sectors in which a business operates, and the policies, practices and initiatives that they currently employ.
The tool is being pilot tested and the aim is to launch it formally at the end of November in the run up to the 21st session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), or COP21, in Paris.