Companies must devise business models aligned to SDGs: KPMG

Aligning business strategy to the UN Sustainable Development Goals (SDGs) can help organisations design their growth strategies in cognizance with national and global developmental needs, according to a new report by consulting major KPMG.

"This approach will augment businesses to enhance resilience while capitalising on opportunities in a timely manner, thereby ensuring long-term success," said the report titled 'Assimilate, blend, converge for Sustainable Development Goals.'

Blended financial instruments can be used to deliver to the targets of each SDG while ensuring economic gains. These can help bridge the gap by channelising the funds in a more streamlined fashion.

The report says SDGs bring along a strong business case by impacting the bottom line of the businesses by improving their savings or returns through further innovation with the SDGs.

"Therefore, mapping SDGs across the value chain can help businesses achieve the targets while enhancing their footprints."

The mapping of SDGs is a substantial first step towards understanding the relationship between business operations strategy and the social impact that can be created through strategic interventions.

Convergence on sector-specific SDGs should be viewed as an opportunity for businesses to adopt a common goal, said the report.

Road maps elucidating current SDG impact of the sector, SDG touchpoints across the value chain of a sector and prioritising SDGs most relevant for the sector will help companies clearly understand their SDG linked actionable.

The current disconnect between the actions taken by businesses and their progress reporting on SDGs needs to be catered through innovative and novel methodologies uniform to all the sectors. This will help strengthen the dialogue on SDGs progress tracking globally, said the KPMG report.

Santhosh Jayaram, Partner and Head for Sustainability and CSR Advisory at KPMG in India, said organisations are facing multiple challenges that are curbing their potential to grow. These challenges could be by way of natural resources, volatile stock markets, restricted local buying power and lack of skilled talent.

"This is where exists a clear and good business case for organisations to assimilate, blend and harness SDGs to create openings and opportunities to address these challenges," he said.

"The current disconnect between the actions taken by businesses and their progress reporting on SDGs needs to be catered through innovative and novel methodologies. This will be the key to strengthen the dialogue on SDGs progress and tracking the private sector contribution globally," he added.