In this topic, we want to touch on one of the drivers behind the voluntary carbon markets and environmental markets in general. Ultimately, these voluntary markets exist to supply emissions mitigation mechanisms for companies to reach their corporate commitments. The commitments can be based on internal objectives, standards like SBTI, the UN Global Goals or a combination of the elements that companies see fitting to their values.
Talking of the UN Global Goals, companies may engage with the United Nations Sustainable Development Goals (SDGs) for a variety of reasons. Some of the key motivations for companies to engage with the SDGs include:
- To align their business strategy with global sustainability goals: The SDGs provide a clear framework for addressing some of the world’s most pressing sustainability challenges, such as poverty, inequality, and climate change. Engaging with the SDGs can help companies align their business strategy with these global goals and position themselves as leaders in the transition to a more sustainable future.
- To improve their reputation and brand image: Companies that engage with the SDGs can improve their reputation and brand image by demonstrating their commitment to sustainability. This can help them appeal to consumers, investors, and other stakeholders who are increasingly looking for companies that are focused on making a positive impact on the world.
- To access new markets and opportunities: The transition to a sustainable economy is creating new market opportunities, and companies that engage with the SDGs can position themselves to take advantage of these opportunities. For example, companies that focus on sustainable products and services can tap into growing consumer demand for such products, while companies that invest in renewable energy can benefit from the growth of the clean energy market.
- To improve their environmental and social performance: Engaging with the SDGs can also help companies improve their environmental and social performance by setting specific targets and taking concrete actions to address sustainability challenges. This can help them reduce their environmental footprint, improve their relationships with stakeholders, and better manage risks associated with sustainability issues.
In summary, why do companies engage with United Nations Sustainable Development Goals ?
Engaging with the SDGs can provide many benefits for companies, including the opportunity to align their business strategy with global sustainability goals, improve their reputation and brand image, access new markets and opportunities, and improve their environmental and social performance.
SDGs in climate finance
Lets take a look at the SDGs in context of climate finance. There are several United Nations Sustainable Development Goals (SDGs) that are directly related to climate finance. These include:
- SDG 7: Affordable and clean energy: This goal aims to ensure access to affordable, reliable, sustainable, and modern energy for all. It includes targets related to increasing the share of renewable energy in the global energy mix and improving energy efficiency.
- SDG 13: Climate action: This goal aims to take urgent action to combat climate change and its impacts. It includes targets related to reducing greenhouse gas emissions, strengthening resilience to climate-related disasters, and providing support to developing countries to transition to a low-carbon economy.
- SDG 14: Life below water: This goal aims to conserve and sustainably use the oceans, seas, and marine resources for sustainable development. It includes targets related to reducing marine pollution and protecting marine ecosystems.
- SDG 15: Life on land: This goal aims to protect, restore, and promote the sustainable use of terrestrial ecosystems, forests, mountains, and deserts. It includes targets related to conserving and sustainably using forests, combating desertification, and halting and reversing land degradation and loss of biodiversity.
As we can see, climate finance plays a crucial role in achieving these SDGs by providing the financial resources and investment needed to support the transition to a low-carbon economy and address the impacts of climate change.
Not to mention the fact that by evaluating SDG impacts of an environmental project or activity, the demonstration of SDG impacts can ease the way to unlocking impact finance.
