DNV Report: 20 years UN Global Compact: Uniting business in the decade of action 2030

Building on 20 Years of Progress
UNITING BUSINESS
IN THE DECADE
OF ACTION

2
UNITING BUSINESS IN THE DECADE OF ACTION
This report has been prepared by DNV GL in close cooperation with the UN Global Compact.
The contributions of the project team are acknowledged in the appendix.
We wish to thank representatives of the organizations listed below, who made a significant
contribution to this work through participating in research interviews and providing case studies.
The participating organizations span the various sectors covered in chapter 5.
ABB
Anglo American
ArcelorMittal
Ayala Corporation
Banco Bradesco
BASF
Bayer
bioMérieux
BMW Brilliance
CEMEX
Cermaq
C.P. Group
DBS Bank
Distell
Equinor
FUJIFILM Holdings
Corporation
GSK
GSMA
HSBC
Huawei
Iberdrola
International Council on
Mining & Metals (ICMM)
Kering
Koç Holding
LEO Pharma
L’Oréal
Maersk
Mahindra Group
Nestlé
Norsk Hydro
Norwegian Shipowners’
Association
Novo Nordisk
Oceana Group
PRI
Singtel
Tata Chemicals
Telenor
Turkcell
UPM
Volvo Cars
Yara International
ORGANIZATIONS THAT PARTICIPATED IN RESEARCH INTERVIEWS
AND PROVIDED CASE STUDIES INCLUDE:
Uniting business for a better worldyears
ABOUT THIS REPORT
The year 2020 marks the 20th anniversary of the United Nations Global Compact and the fifth year
since the launch of the UN Sustainable Development Goals (SDGs). The UN Global Compact and DNV GL,
an independent provider of sustainability and risk management services, have worked together to
assess the progress made by the UN Global Compact business participants to date and looked
ahead to what systemic changes are needed to reach the Sustainable Development Goals by 2030.
ACKNOWLEDGEMENTS:

3
CONTENTS
CONTENTS
1 FOREWORDS 4
2 EXECUTIVE SUMMARY 8
3 UN GLOBAL COMPACT LOOKING BACK ON A 20-YEAR JOURNEY 24
4 PROGRESS TO DATE 42
5 SUSTAINABLE TRANSITION NEEDS: SHIFTING GEARS FOR 2030 56
5.1 ENERGY, NATURAL RESOURCES AND BASIC MATERIALS 58
5.2 INDUSTRIAL MANUFACTURING 70
5.3 FOOD, BEVERAGE AND CONSUMER GOODS 78
5.4 HEALTHCARE AND LIFE SCIENCES 86
5.5 MOBILITY AND TRANSPORTATION 94
5.6 TELECOMMUNICATIONS AND TECHNOLOGY 102
5.7 FINANCIAL SERVICES 110
6 KEY FINDINGS ACROSS THE SYSTEMS 118
7 A CALL TO ACTION FROM THE UN GLOBAL COMPACT 124
APPENDIX: METHODOLOGY, PROJECT TEAM AND REFERENCES 132

4
From its inception, the United Nations has
embodied a vision of international cooperation
among Governments and peoples to build a
more peaceful and prosperous world for all.
The business community, too, must answer that
call. It is for this reason the United Nations
Global Compact was created at the turn of the
millennium to guide and inspire companies
everywhere to join in tackling humanity’s most
pressing challenges.
Now, as the UN Global Compact marks 20 years
of uniting business for a better world — having
grown from 44 business participants to more
than 10,000 companies, 3,000 non-business
signatories and 68 Local Networks — the
challenges we face are as great as any in the
history of the United Nations. The COVID-19
pandemic, with its twin health and socio-economic
crises, has swiftly and dramatically upended
lives and livelihoods in nearly every corner of
the globe. It has exposed global fragilities and
laid bare the rampant inequalities that were
already making life difficult for the most vulnerable.
Upholding the core promise of the 2030 Agenda
for Sustainable Development — to leave no one
behind — has never been more urgent.
The UN system is fully mobilized to save lives
and ease suffering. Moreover, we know that
recovery must not aim to simply go back to old
ways and business-as-usual. We must work as an
international community to build more sustainable
and inclusive societies to withstand future shocks.
The Ten Principles of the UN Global Compact in
the areas of human rights, labour, environment
and anti-corruption continue to show their
immense value. Over its 20-year history, the
Compact has guided companies of all sizes and
from all regions to embed a principles-based
approach to doing business. It has also brought
the voice of responsible business into global
agenda-setting discussions, including on the
Sustainable Development Goals and Paris
Agreement on Climate Change.
The Compact has pioneered standards and
guidance through the Science Based Targets
initiative, the Business Ambition for 1.5°C
campaign, the Women’s Empowerment Principles,
and the UN Guiding Principles on Business and
Human Rights. It has developed a set of Principles
for Responsible Investment, which has more than
2,300 signatories, as well as a body of Principles
for Responsible Management Education designed
to equip tomorrow’s responsible business leaders
with sustainability acumen and awareness. And
the Compact’s Local Networks have built up
a strong presence to advance public-private
dialogue and action. Where once "do no harm"
was a common approach for the global business
community, today we are arriving at a new
landscape of elevated expectations and
responsibilities.
FOREWORD
António Guterres
United Nations
Secretary-General

5
At this pivotal moment, there is great scope for
the United Nations and the business community
to do even more as partners for a brighter future.
By bringing together the universality of the
United Nations, the formidable capacities of the
private sector and our common global reach,
we can help the vulnerable, rescue the planet
and promote stability and shared progress. We
do not yet know how we will find our way out of
today’s crisis, but with determination, big ideas,
unity and hope, we can recover better and
build a more resilient world.
Now, as the UN Global Compact
marks 20 years of uniting
business for a better world . . . the
challenges we face are as great
as any in the history of the United
Nations. Upholding the core
promise of the 2030 Agenda for
Sustainable Development — to
leave no one behind — has never
been more urgent.
FOREWORD

6
Twenty years ago, the late UN Secretary-General
Kofi Annan had the vision and foresight to initiate
a global compact of shared values and principles
between the United Nations and business to
give the global market a human face. If we fail
to make globalization work for all, he cautioned,
it will work for none.
This year we celebrate the 20th anniversary
of the United Nations Global Compact in the
shadow of COVID-19, with the words of Kofi
Annan ringing in our ears. We do so with the
understanding that the human community is
completely interconnected and interdependent.
That without solidarity, especially with those
most vulnerable among us, we all lose.
Now is the time to get it right and the UN Global
Compact is ready to take on the challenge.
What started out as a bold vision together with
44 pioneering companies has today grown to
become the world’s largest sustainable business
initiative. With 68 Local Networks, more than
10,000 businesses headquartered in 160 countries,
representing more than 70 million employees
worldwide, we have become a global movement
of businesses and stakeholders united to create
the world we want. Guided by our Ten Principles,
and with the 17 Sustainable Development Goals
and the Paris Climate Agreement as our lighthouse,
the UN Global Compact is here to lead the largest-
ever business model transformation towards a
new normal.
Together with DNV GL, we have taken the
opportunity to take stock of the first 20 years of
progress to lay the foundation for the next ten.
Some things stand out:
Since the 2030 Agenda for Sustainable
Development was adopted, we have seen
sustainability turn into a strategic business
agenda anchored with the CEO. Today the vast
majority of businesses have policies covering
all Ten Principles, and are taking action towards
the SDGs.
But policies alone make little difference when
goal setting and ambition are not ambitious
enough to deliver the impact at the scale that we
need, across all of the SGDs. The good news is
that CEOs know that they and their peers need
to ramp up ambition and they recognize the
SDGs as crucial for the future of their businesses.
What is also clear is that the Ten Principles and
the SDGs are not yet deeply enough integrated
into the corporate purpose, governance and
strategy of the majority of businesses. Therefore
they are not sufficiently visible in decision-
making and action.
While businesses widely recognize their positive
contributions to the SDGs, their negative impacts
are significantly under-recognized. This partly
stems from the fact that only a minority of
companies apply the Ten Principles to assess and
FOREWORD
Lise Kingo
CEO & Executive
Director
United Nations
Global Compact

7
FOREWORD
address their risks and impacts. This is particularly
true for the social dimensions — human rights and
labour, where only a fraction of companies use
the Ten Principles to drive change in their global
supply chain. The lack of impact assessments
against the Ten Principles and the SDGs, not
least in the supply chain, may explain why the
SDGs that address poverty, hunger and reduced
inequalities are glaring by their omission.
This is important to take note of, because
COVID-19 has exposed the vulnerabilities of a
global market that has allowed social inequalities
to widen for two-thirds of the global population.
With half the world’s population employed in
the informal sector without any social protection,
1.6 billion people are presently facing the risk
of seeing their livelihoods disappear and close
to 50 million people are being thrown back into
extreme poverty. Business leaders of the future
need to understand that the key to stable markets
is social equality.
With many other crises looming large, from
climate change, biodiversity loss and the erosion
of planetary resources, let’s use COVID-19 as our
wake-up call to put the world on track to create
the world we all want.
Most importantly, we need the most senior
leaders — CEOs, their executive teams and the
boards — to use their power to become activists
for social change. My message to you is: don’t
underestimate the power of your own example.
Your voice. Your organizational footprint in the
world. You have the power to bolster the resolve
of policy makers to prioritize sustainable
development. Leadership is about having the
courage to be the change. Indeed to insist
on change.
In the Decade of Action — let’s put people first!
Lise Kingo
With less than 4,000 days remaining until the 2030
target, we must step up and turn commitment into
action. The time is now to raise SDG Ambition for
people, planet and prosperity and create a new normal.

8
2EXECUTIVE SUMMARY

10
.
EXECUTIVE
SUMMARY
Achieving the needed change requires a ramping up of
both ambition and action among all companies, whether
they operate within the energy, healthcare, food,
finance, transport or other systems.

11
EXECUTIVE SUMMARY CHAPTER 2
Making an impact
From the clamour of school children protesting
the lack of action on the climate threat, to the
disconcerting new normal of the pandemic and,
most recently, the calls for justice and equality
around the world, the events of the past year have
rocked us. As they should. These events underline
that the Sustainable Development Goals are not
just ideals to aspire to, but fundamentals in creating
a just society, with equal opportunity for all on a
planet that is habitable. Time is running out. The
Decade of Action must start now.
When the UN Global Compact asked us to create
this report, we asked ourselves how we could shed
new light on the progress made and the needed
direction onwards. Interviews were conducted with
companies that actively participate in the work of
the UN Global Compact. These were held during
the height of COVID-19 lockdown measures, with a
multitude of short-term survival priorities to attend
to, emphasizing the importance the business
community places on sustainability issues.
In our research into the UN Global Compact
participants, we found that awareness of the
SDGs is high. Within the systems they are part of,
companies share a focus on the SDGs that are most
pertinent to them. The research confirmed that the
Ten Principles have been embedded in corporate
practices among the companies interviewed,
and that progress has been made in adapting
policies and principles over the past twenty
years. To deliver deeper change in sustainable
business, the business community needs to
move from policy commitments to action that
can lead to actual performance improvements.
We found widespread support for the work of the
UN Global Compact and a belief that the Global
Compact has an important role to play in the nexus
between political, business and NGO worlds.
There is, however, an opportunity to expand its
reach in regions where participation is low.
As we mark the 20th anniversary of the
UN Global Compact, we note the progress
made, but also that there is much more to do.
Our previous work assessing the likelihood of
achieving the SDGs (Future of Spaceship Earth,
2016) and forecasting the energy future towards
2050 (Energy Transition Outlook, 2019) has
shown that step-changes, beyond incremental
improvements, are needed to deliver the world
humanity wants. Companies and the systems
they are part of are moving broadly in the same
direction, but not in a concerted effort. Achieving
the needed change requires a ramping up of
ambition among all companies, whether they
operate within the energy, healthcare, food,
finance, transport or other systems.
Most importantly, this is the decade in which
humanity will either succeed or fail in delivering
on the 17 Sustainable Development Goals. Failure
cannot be an option.The Decade of Action requires
all companies to take a deep look at where we
are falling short and set industry-specific goals,
standards and execution plans. This is how we will
contribute to the transformation needed.
With only ten years left to reach the Sustainable Development Goals, we need to accelerate from
decades of ambition to a Decade of Action.
Remi Eriksen
Group President and
CEO, DNV GL

12
The UN Global Compact:
building a worldwide initiative
The year 2020 marks
the 75th anniversary of
the United Nations and
the 20th anniversary
of the UN Global
Compact. It also kicks
off a new Decade of
Action to deliver the
17 Sustainable
Development Goals —
the boldest agenda for
humanity ever adopted
A GLOBAL MOVEMENT
OF SUSTAINABLE
COMPANIES TO CREATE
THE WORLD WE WANT
10,000
FROM 44 TO
BUSINESS PARTICIPANTS
The United Nations Global Compact is the world’s largest corporate sustainability initiative. Launched
in 2000 as a special initiative of the UN Secretary-General, the mission of the UN Global Compact is to
mobilize a global movement of sustainable companies and stakeholders to create the world we want.
THE VOICE OF
BUSINESS AT THE UN
Businesses that join the initiative commit at the CEO-
level to align their corporate strategies and operations
with Ten Principles on human rights, labour,
environment and anti-corruption and take actions to
support the Sustainable Development Goals (SDGs).
Through providing authoritative guidance, training,
tools and support, and connecting stakeholders
across the globe, the UN Global Compact enables
businesses of all sizes and from all sectors to
achieve their sustainability objectives.

13
METHODOLOGY
The "Uniting Business in the Decade of Action"
report is based on a research frame developed
by DNV GL's sustainability experts on behalf of
the UN Global Compact.
The underlying premise of the research is that
systemic change is needed if we are to deliver
on the SDGs in this Decade of Action. By looking
at business contribution in sectors that correlate
to systems, we can obtain new and more business-
relevant insights into the current status, the action
required and associated barriers and enablers.
Seven systems were examined to answer three
fundamental objectives:
1. Looking back on 20 years of embedding
the Ten Principles
2. Progress on the SDGs and changes needed
to achieve the 2030 Agenda
3. Looking ahead to the Decade of Action
and what companies need to do to propel
the Decade of Action.
DNV GL gathered evidence from the UN Global
Compact Annual Implementation Survey 2020
(including new ‘systems’ questions) supported
by 40 interviews with UN Global Compact
participants from around the world, the majority
at the Chief Sustainability Officer level. This was
combined with a trend analysis of surveys since
2010, an in-depth look at selected participants'
self-assessment through their Communication
on Progress (CoP), additional data from the UN
Global Compact and wider desktop research.
The research was conducted between February
and May 2020. The UN Global Compact provided
content covering its own history, descriptions
of key initiatives over the last years and stories
from their Local Networks in chapter 3. The call to
action in chapter 7 was also provided by the UN
Global Compact. Participants in the UN Global
Compact provided case studies. For more details,
please see the Methodology section on page 134.
RESEARCH TEAM
DNV GL has a dedicated global practice of more
than 250 experts focused on sustainability
matters. These experts leverage the knowledge
of 12,000 DNV GL employees in over 100
countries working with many thousands of
businesses every day, from predicting the
energy transition challenges and opportunities
over the next decades to ensuring that food
supply chains can be trusted and that the world's
shipping fleet is safe.
Because we work in almost every sector, on
almost every sustainability topic, we recognize
many of the challenges being faced by
business in achieving the SDGs. These insights
have informed our approach to this research.
7SYSTEMS
1. Energy, natural
resources and
basic materials
—
2. Industrial
manufacturing
—
3. Food, beverage
and consumer
goods
—
4. Healthcare
and life
sciences
—
5. Mobility and
transportation
—
6. Telecommunications
and technology
—
7. Financial services

14
Progress to date
More than 90 per cent of companies
have embedded the Ten Principles and
have policies and practices in place. This
universal ethical framework serves as
guidance for operationalizing corporate
responsibility and 73 per cent of companies
state that upholding the Ten Principles
is how they take action to deliver the
Sustainable Development Goals.
There is widespread agreement that
policy is not enough. The next step is to
move from policy to action and embed
the Ten Principles into company strategies
and operations to advance sustainability
outcomes and deliver on policy
commitments.
A majority of companies — 84 per cent
— also report taking specific action to
advance the SDGs. Most companies
report taking action towards Goal 8:
Decent Work and Economic Growth,
Goal 3: Good Health and Well-being,
Goal 12: Responsible Consumption and
Production and Goal 13: Climate Action.
Moreover, participants recognize the
business potential of the SDGs, with 61
per cent developing products and/or
services that contribute to them.
Businesses now need to fully embed the
SDGs within their strategies, operations,
through supply chains and in
communications. Currently, only 46 per
cent are embedding the SDGs into their
core business and only 37 per cent are
designing business models that contribute
to the SDGs.
There is improvement in tracking
progress on SDG actions with 45 per
cent of companies tracking actions, (up
from 40% in 2019). Also, 57 per cent of
companies are measuring the impact of
their own operations but very few extend
this to suppliers (13%), raw materials
(10%) and into product use (10%).
Importantly, only 31 per cent are tracking
the negative impact.
There remains a key gap in analysing
impacts across the Ten Principles. While
62 per cent of companies conduct
environmental impact assessments, only
18 percent of companies conduct impact
assessments for human rights, 25 per cent
conduct them for anti-corruption and 29
per cent conduct them for labour rights.
More ambitious corporate targets are
needed if we are to achieve the 2030
Agenda — 39 per cent of companies
say they have targets they believe are
sufficiently ambitious, science-based
and/or align with societal needs. We
also note that only 15 per cent of survey
respondents have targets that have been
approved by the Science Based Targets
initiative.
We can drive more change with a stronger
voice from business in multi-stakeholder
dialogue. Only 35 per cent publicly
advocate the importance of action on the
SDGs and only 52 per cent are engaging
in partnership projects with public or
private organizations.
In pursuing its vision — to mobilize a global movement of sustainable companies and stakeholders to
create the world we want — the UN Global Compact is helping businesses around the world to prepare
for and adapt to the transformations needed to achieve the 2030 Agenda. The ultimate goal is for
business to enhance its environmental, social and governance outcomes.
of companies participate
in the UN Global
Compact as a way to
increase trust through
a public commitment
to sustainability
83%

15
The way we can move the dial is not by
producing another sustainability report.
It is about demonstrating actions that
bring us closer to delivering desired
outcomes. — Novo Nordisk

16
The Ten Principles of the UN Global Compact are well integrated into businesses at a policy level and
are driving responsible business practice. There is, however, room for improvement. Businesses can be
more ambitious in their commitments and deliver more action to improve sustainability outcomes.
HUMAN RIGHTS
1 Businesses should support and respect
the protection of internationally proclaimed
human rights; and
2 make sure that they are not complicit
in human rights abuses.
LABOUR
3 Businesses should uphold the freedom
of association and the effective recognition
of the right to collective bargaining;
4 the elimination of all forms of forced
and compulsory labour;
5 the effective abolition of child labour; and
6 the elimination of discrimination in respect
of employment and occupation.
ENVIRONMENT
7 Businesses should support a precautionary
approach to environmental challenges;
8 undertake initiatives to promote greater
environmental responsibility; and
9 encourage the development and diffusion
of environmentally friendly technologies.
ANTI-CORRUPTION
10 Businesses should work against all forms of
corruption, including extortion and bribery.
The Ten Principles provide a common framework
for operating responsibly and ethically.
Derived from UN Declarations and Conventions,
these universal principles represent the
fundamental values that businesses should
embed into their daily strategies and operations.
They are recognized as such by 74 per cent of
companies surveyed, who state that upholding
these Ten Principles helps them to take action
on the SDGs.
More than 90 per cent of survey respondents
have corporate policies in place that reflect the
four issue areas of the Ten Principles: human
rights (90%), labour (94%), environment (94%)
and anti-corruption (90%). Many reported that
the Ten Principles are deeply embedded in their
environment, health and safety policies, supplier
code of conduct and other governance-related
documents.
But policy alone is not enough to drive change
and there is a gap between levels of policy
implementation and action to embed the Ten
Principles into company operations and strategies.
Companies need to understand and act on their
impacts more. For example, while 62 per cent of
companies conduct an environmental impact
assessment, impact assessments are only
conducted by 18 per cent for human rights,
25 per cent for anti-corruption and 29 per cent
for labour.
We also need to see further extension and
integration of these policies across the supply
chain to deliver deeper change in sustainable
business; only 17 per cent of respondents require
supply chain partners to adhere to the Ten
Principles of the UN Global Compact.
THE TEN PRINCIPLES:
The Ten Principles of the
UN Global Compact

17
Overall policy in place
Employee training
Complaints/grievance mechanism
Employee performance assessment
Risk assessment for suppliers/subcontractors
Operational guidance notes
Human rights risk assessment
Work-life balance measures
Employee training
Collective bargaining on employment/working conditions
Inclusion of people with disabilities
Reliable age verification mechanisms
Labour rights impact assessment
Avoid exclusion of union members from employment
Environmentally-friendly technologies and solutions
Resource efficiency
Environmental impact assessment
Employee training
Make public commitments
Consider externalities in investment decisions
Employee training
Anonymous hotline for reporting corruption
Sanctions for corruption by employees
Monitoring performance
Anti-corruption impact assessment
Record facilitation of payments and gifts
0 10 20 30 40 50 60 70 80 90 100
LABOUR
ENVIRONMENT
ANTI-CORRUPTION
HUMAN RIGHTS 90%
94%
74%
65%
64%
37%
60%
29%
28%
94%
72%
70%
62%
62%
31%
18%
90%
56%
54%
45%
31%
25%
22%
53%
%
51%
35%
23%
23%
18%
To deliver deeper change in sustainable business, participants need
to move from policy commitments to action that can lead to actual
performance improvements.

18
Looking ahead to the Decade of Action
It is widely accepted that the scale and pace of change to deliver the Sustainable Development Goals
has not been large enough or fast enough to date. At this point in time — with ten years to go — the world
is not on track to achieve the SDGs. We need a Decade of Action to reverse this predicament.
For businesses, now more than ever, it is time to ramp-up action in all areas of their operations and
value chains to support the delivery of the SDGs.
Awareness and adoption of the SDGs are
widespread amongst UN Global Compact
participants, with 84 per cent taking action on
the SDGs. There is a strong focus on Goal 8:
Decent Work and Economic Growth, Goal 9:
Industry, Innovation and Infrastructure, Goal 12:
Responsible Consumption and Production, Goal
13: Climate Action and Goal 3: Good Health and
Well-being.
We are seeing bold leadership. Awareness of the
need for action is growing and 237 companies
(as of June 5, 2020) have signed up to the UN
Global Compact Business Ambition for 1.5°C
campaign1
and have set Science Based Targets
aligned with limiting global temperature rise to
1.5°C above pre-industrial levels.
However, to reach the pace of change needed
to deliver the 2030 Agenda, we need to do more
and to go faster. The UN Global Compact/
Accenture CEO survey in 2019 noted that 71 per
cent of CEOs agree business can play a critical
role in contributing to the SDGs, but only 21 per
cent agreed they are playing a critical role now.
Mirroring the findings of the CEO survey, less
than a third of companies surveyed in 2020
consider their industry to be moving fast enough
to deliver priority SDGs by 2030.
Companies are significantly under-recognizing
their negative impact on the SDGs compared
to how widely they recognize the potential for
positive contribution. While action to accelerate
positive progress is just as important, it is essential
to recognize and sufficiently reduce or eliminate
negative impacts.
The SDGs have not yet motivated the step-change
in ambition which is needed to achieve them.
Corporate goals are generally not sufficiently
ambitious. Only 39 per cent of companies say they
have targets they believe are sufficiently ambitious
to deliver Agenda 2030, are science-based and/or
align with societal needs.
With only 46 per cent of companies embedding
the SDGs into their core businesses and only 37
per cent designing business models to support
them, businesses need to embed the SDGs
deeply within their strategies and operations,
through supply chains and into communications.
Many companies still struggle to identify how to
implement the socially focused SDGs, such as
reduced inequalities, gender equality, peace,
justice and strong institutions. Companies need
better guidance on measuring and reporting
their impact on delivering the social SDGs.
To deliver system-level change, common ambitions
and aligned actions need to be implemented
by a majority of companies within a sector or
system. In fact, our research shows that even for
the most highly prioritized SDGs, around half
of companies surveyed say there is an agreed
vision and approach to deliver — indicating
far more work is needed to organize systemic
change.
Companies and industries need commonly
agreed, business-relevant and sector-specific
SDG ambitions, goals, standards and practical
guidelines to help them align, coordinate and
focus — and ultimately support the delivery of
the SDGs by 2030.
of survey respondents
are taking action on the
SDGs, but only
are embedding them
into their core business
46%
84%
1 https://unglobalcompact.org/take-action/events/climate-action-summit-2019/business-ambition
2 https://unglobalcompact.org/news/4535-05-18-2020

19
Key enablers for system-level change
Key recurring themes shed light on the enablers
businesses most commonly consider will help
them to enhance action to deliver the SDGs.
• An operating environment that incentivizes
SDG action is essential — one that shares or
reduces both risks and the investment needed
to deliver fundamental sustainable change. This
includes enhancing demand from customers
and consumers and creating the right
regulatory and market signals for companies
to respond to, including the SDG-linked
prioritization of finance.
• Clear metrics can help provide clarity for
businesses. The research clearly shows a
desire for suitable metrics that measure
company contribution to individual SDGs
at a global and sector level.
• Industry-level cooperation is critical to
overcoming the gap between sector-level
ambition and the step-change needed to
reach the SDGs.
• Collaboration at all levels within and across
sectors, including public-private partnerships
(PPPs), is a key enabler for system-level
change. Goal 17: Partnerships for the Goals
needs greater focus and promotion to deliver
the systemic change needed. This is the SDG
that enables us to deliver the rest.
SYSTEM VIEW: HOW PREPARED ARE THE SYSTEMS TO DELIVER ON
THEIR PRIORITY SDGs?
Recognizes the challenge
Has a vision for transition
Has an agreed approach
to deliver
This is the average response across all industries for their systems. See page 53 for a ranking of the SDGs by individual companies.
1009080706050403020100%
#4#1 #5#3#2
SDGs RECONIZED
AS MOST RELEVANT
AND SIGNIFICANT
BY SURVEY
RESPONDENTS FOR
THEIR INDUSTRIES
PERCENTAGE OF
COMPANIES THAT
AGREE THEIR
INDUSTRY...
All of the industry Most of the industry Some of the Industry Not sure
CEO-LED CLIMATE
ADVOCACY
Recently, we have
seen leading CEOs
advocating for change.
In the largest ever
UN-backed CEO-led
climate advocacy effort,
150 CEOs reaffirmed
their own science-
based commitments to
achieving a zero-carbon
economy in May 2020.
They called on
Governments to match
their ambition as they
develop COVID-19
recovery plans². We
encourage more of this,
as only 35 per cent of
companies publicly
advocate the importance
of action in relation to
the SDGs — a figure that
is down from 53 per cent
in 2018

20
System priorities
MOST PRIORITIZED SDGs KEY FINDINGS
TELECOMMUNICATIONS
AND TECHNOLOGY
63% 58% 57% 48% 46%
• Strong leadership through the telecommunications and
technology industry association, which has made a sector-wide
commitment to the SDGs and created a low-carbon roadmap
• Key focus on gender equality
• Complete alignment between goals being prioritized and those
with the greatest positive impact
• Very little acknowledgement of negative impacts, particularly on
the environment and responsible consumption
FINANCIAL
SERVICES
76% 59%59% 53%54%
• Target setting is lagging behind
• There is very little acknowledgement of negative impact
or respondents are unaware of impacts
• Products and services are being developed to support the SDGs
• On a system level, social goals have some focus
• Only 3% acknowledge negative impacts on Goal 10: Reducing
Inequalities, despite the sector being instrumental to advancing
this SDG
FOOD, BEVERAGE
AND CONSUMER
GOODS
72% 67% 57%78% 50%
• Only 21% believe the sector is moving fast enough to meet
the SDGs
• Only 29% of companies have conducted assessments of the
negative impacts along the supply chain
• 45% of the companies are yet to set targets to progress Goal 3:
Good Health and Well-being, despite strong links
• The current market is fragmented and does not support smaller
players to act sustainably
HEALTHCARE AND
LIFE SCIENCES
72%94% 72% 67% 61%
• Only 75% of companies are taking action on the SDGs
(lowest of all systems)
• Strong alignment between priority goals and those where the
sector has a positive impact
• A large percentage of companies are setting targets but are
behind on developing products and services to support them
ENERGY, NATURAL
RESOURCES AND
BASIC MATERIALS
66% 58%69% 66% 55%
• A high percentage of companies are setting targets to
advance priority SDGs
• However, only 6% have an emissions reduction target approved
by the Science Based Targets initiative
• Goal 13: Climate Action is the #1 priority, yet 11% of companies
feel that this is an area of significant negative impact
59% 56% 54% 52% 52%
INDUSTRIAL
MANUFACTURING
• SDGs where companies feel they are having the most positive
impacts are well aligned with those goals being prioritized
• Target setting is variable across the SDGs, e.g. only 23% have an
SBTi approved target despite Goal 13: Climate Action being a
top priority
• There is a high level of action or engagement; many companies
are developing products and services to support the SDGs
75% 63%71% 58% 50%
MOBILITY AND
TRANSPORTATION
• A large number of businesses are taking action, but only 50%
are aligning core business strategy with the goals
• Climate action is both a priority with targets set to progress it
and an area where negative impacts are being acknowledged
• Target setting is lagging behind in other areas
• On products and services, the system performs more consistently

21
LEAST PRIORITIZED SDGs ENABLERS OF SYSTEMIC CHANGE
11% 9% 9%
• Need to recognize and report on negative impacts on the SDGs
• Need to achieve more scale with the shared low-carbon
roadmap at industry level
• Need for more collaboration to solve shared problems
20% 17% 8%
• Common impact measurement framework of financial
investments for the SDGs
• Better connection of green finance and digital services
• Centralized system to identify public and private investment
flows, aligned with country development plans
22% 20% 17%
• Need for regulation to level the playing field and encourage
innovation
• High cost of sustainable products must be addressed
• Accelerate digitalization and improve traceability to support
transparency across the value chain and drive producer
responsibility
22% 17% 6%
• Although there is a strong vision to deliver on the SDGs, the
industry does not have an agreed approach for transition
• Need for standardized metrics to track progress against priority
SDGs and support impact-based reporting
• Multilateral collaboration to address the SDGs must be scaled
23% 20% 14%
• Strategies to mitigate negative impacts on SDGs
• More collaboration needed to standardize metrics and reporting
• Long-term ambition needs to be translated into near-term steps
12% 9% 8%
• Standardized metrics to track collective action and progress
towards the SDGs are required
• A conducive policy environment is needed that supports clean,
socially inclusive and healthy industry processes
25% 21% 8%
• Industry-government collaboration needed to create a roadmap
for success for this system
• Increase collaboration throughout the value chain
• Need for greater action on human and labour rights
The percentages below reflect the extent to which companies participating in the UN Global Compact Annual Implementation
Survey 2020 indicated they are currently prioritizing each SDG. There are high levels of commonality amongst the most prioritized
SDGs across systems. This means that a number of SDGs are left behind with very few companies focusing on them and are
therefore an area where greater attention is needed (e.g. Goal 1, 2, 10, 14 and 15).

22
A call to action from the
UN Global Compact
With less than 4,000 days remaining until the 2030 target, businesses urgently need to accelerate
transformation towards a sustainable future and address the interconnected and growing challenges
to health and well-being caused by inequality and climate change.
Leading companies are already influencing their sectors, peers and Governments to step up and turn
ambition into action and policies. It is time for all companies to drive the transformational changes
required to create the world we want. We call on all companies to:
• Fully integrate the Ten Principles: implement the Ten Principles deep into business strategies,
operations and value chains as a foundation for driving sustainability.
• Raise SDG Ambition: raise ambitions to meet the needs of society and the planet by fully integrating
sustainability informed by a principled-based approach to the SDGs.
BUSINESS BENCHMARKS FOR THE DECADE OF ACTION:
Gender balance at all levels of management
100 per cent of employees earn a living wage
Science-based emissions reduction targets in line with a 1.5°C pathway
Net-positive water impact in water-stressed basins
Zero waste to landfill and incineration
100 per cent resource recovery, with all products and materials recovered and recycled
or reused at end of life
Zero discharge of pollutants and hazardous materials
Land degradation neutrality, including zero deforestation
100 per cent of raw materials sourced sustainably according to the highest possible standards
Zero instances of bribery
• Advocate for Ambitious Policies and Engage in Collective Action: the change we need to see
in the Decade of Action will not happen through incremental improvements and adjustments
to ‘business-as-usual’. Along with these ambitious changes, we need more CEOs to advocate for
SDG-aligned policies and influence national plans to deliver the Paris Climate Agreement by
illustrating their own ambitious commitments. Only by working together — across business, finance,
civil society, UN and Governments — will we be able to tackle the world’s biggest challenges.

23

24
3UN GLOBAL COMPACT
LOOKING BACK ON A
20-YEAR JOURNEY

25
UN GLOBAL COMPACT LOOKING BACK ON A 20-YEAR JOURNEY CHAPTER 3
MOVING CORPORATE
SUSTAINABILITY FROM
THE FRINGES TO THE
MAINSTREAM
The United Nations Global Compact is a call to companies to align strategies and
operations with universal principles on human rights, labour, environment and
anti-corruption and take action to achieve the Sustainable Development Goals
by 2030.
In this section, we delve into examples which illustrate how the UN Global
Compact has created change over the years and helped to advance sustainable
business through thought leadership and global and local initiatives across a
number of key issues areas.

26
A brief history of the UN Global
Compact since 2000
The UN Global Compact provides a universal
language for corporate responsibility and an
authoritative framework for businesses everywhere,
regardless of size, complexity or location. It calls
upon and guides businesses to:
• Act responsibly by aligning business
strategies and operations with Ten Principles
on human rights, labour, environment and
anti-corruption
• Take bold actions and find new business
solutions to support the 2030 Agenda and its
17 Sustainable Development Goals
• Advance the case for responsible business
practices through advocacy and outreach
within their sphere of influence to peers,
partners, employees, consumers and the
public at large.
The initiative reports to the UN Secretary-General,
who is also chair of its multi-stakeholder board.
Today, 20 years after its launch, the UN Global
Compact has more than 10,000 companies and
3,000 non-business signatories based in over
160 countries and 68 Local Networks, working
together to drive a principles-based approach
to the Sustainable Development Goals.
Launched in 2000 as a special initiative of the UN Secretary-General, the mission of the UN Global
Compact is to mobilize a global movement of sustainable companies and stakeholders to create the
world we want.

27
Companies sign up to
the UN Global Compact
at the CEO-level and
commit to communicate
their sustainability
progress every year.
Companies that fail to
report are delisted from
Joiners
Delisted
10 475
8 394
6 337
2 251
44
2000 2005 2010 2015 2019
COMPANY ENGAGEMENT WITH THE UN GLOBAL COMPACT
71,764,909
PEOPLE WORK FOR GLOBAL
COMPACT PARTICIPANTS
54%
OF FINANCIAL TIMES
GLOBAL 500 COMPANIES

28
Local Networks around the world
USA
406
Businesses
COLOMBIA
320
Businesses
ECUADOR
131
Businesses
BRAZIL
565
Businesses
ARGENTINA
226
Businesses
MEXICO
428
Businesses
The 68 Global Compact Local Networks advance the implementation of the Ten
Principles and business engagement on the Sustainable Development Goals at the
national level. They facilitate outreach, learning, policy dialogue, collective action
and partnerships. The Networks scale action locally, helping to unite companies with
communities and authorities to work together and address pressing issues.
Countries that
joined from:
2000 – 2005
2006 – 2010
2011 – 2015
2016 – 2020
Number of
Business Participants: Less than 150 Between 150 and 300 More than 300 Top 25 Countries

29
UK
403
Businesses
GERMANY
475
Businesses
DENMARK
372
Businesses
NORWAY
128
Businesses
SWEDEN
321
Businesses
TURKEY
154
Businesses
FRANCE
1183
Businesses
SPAIN
1314
Businesses
SWITZERLAND
134
Businesses
NETHERLANDS
132
Businesses
ITALY
235
Businesses
CHINA
261
Businesses
INDIA
145
Businesses
EMIRATES
121
Businesses
LEBANON
120
Businesses
KENYA
129
Businesses
AUSTRALIA
146
Businesses
JAPAN
300
Businesses
KOREA
144
Businesses
Countries that
joined from:
2000 – 2005
2006 – 2010
2011 – 2015
2016 – 2020
Number of
Business Participants: Less than 150 Between 150 and 300 More than 300 Top 25 Countries

30
Innovation and Thought Leadership
Guided by the Ten Principles, UN Global
Compact multi-stakeholder groups have shaped
best practice in many critical areas across social,
environmental and governance spheres.
Scaling Globally
From the original 40 companies that started
the UN Global Compact, the global reach has
extended to 68 Local Networks and more than
10,000 companies and 3,000 non-business
signatories, enabling collective scaling of best
practice to a significant extent. The UN Global
Compact has contributed to building awareness
and scaling action globally across the breadth of
the socio-economic system, focusing on:
• Social sustainability covering decent work
and global supply chains, human rights, due
diligence and gender equality
• Environmental protection including ocean,
water and climate action
• Driving good governance through promoting
anti-corruption and business commitment to
justice and strong institutions.
Enabling Environment
The environment in which businesses are acting
is becoming more supportive of sustainable
practices. Consumers, employees, young people
and the investment community are pushing for
change. The UN Global Compact helps to drive
this with 3,182 companies in policy discussions
with local government in 2019.
How the UN Global Compact
creates change
Since its launch in 2000, the UN Global Compact has worked towards change through thought
leadership, scaling best practice and action globally and creating an enabling environment for
sustainable change.
CREATING CHANGE
CREATING
CHANGE
INNOVATION AND
THOUGHT LEADERSHIP
SCALING
GLOBALLY
ENABLING
ENVIRONMENT
Change across key issue areas
As the largest organization for private companies
compelled to pursue sustainable change, the UN
Global Compact is able to mobilize its participants
in all corners of the world and sectors of the
socio-economic system. The following nine
topics are some of the key areas where the UN
Global Compact has called on its participants
to induce change.

31
Human rights
Business and Human Rights Dilemmas Forum
(2015) — an online resource to support business
efforts to respect human rights in their
operations and supply chains.
Human Rights: The Foundation of Sustainable
Business (2018)
CEO Roundtable series (2018) — in celebration of
the 70th anniversary of the Universal Declaration
of Human Rights, the CEO Roundtable of global
leaders discussed business progress on equality
and human rights, focusing on concrete actions
to close the inequality gap and advance human
rights as a driver for successful business.
The UN Global Compact has launched over 8
learning experiences on the Academy, including
on various topics relating to human rights.
Guidance for Global Compact Local Networks
on National Action Plans on Business and
Human Rights (2017) aims to help Global
Compact Local Networks get involved in their
country's development of a National Action
Plan on business and human rights.
The Local Network Business and Human Rights
Group was also formed in 2018 to share learnings
across UN Global Compact Local Networks.
As of 2020, 42 networks are participating.
INNOVATION AND THOUGHT LEADERSHIP
SCALING GLOBALLY
ENABLING ENVIRONMENT
In 2018, the world celebrated the 70th
anniversary of the Universal Declaration of
Human Rights (UDHR). Drafted in 1948 in
the aftermath of World War II, the Universal
Declaration remains as relevant today as ever
before, presenting an ambitious vision for a
world in which all human beings live in dignity
and freedom. Despite the revolutionary impact
of the Universal Declaration, there is still a long
way to go before respect for human rights is
truly universal.
The UN Global Compact’s Principles 1 and
2 are derived directly from the Universal
Declaration, calling on business to respect
and support internationally proclaimed human
rights and to ensure they are not complicit in
human rights abuses.
Content for this section was provided by the UN Global Compact.

32
Climate Action
The Business Ambition for Climate and Health
Action Platform provides a collaborative space
for companies and key stakeholders to tackle
both climate mitigation and resilience, while
putting a human face on climate change.
Over 30 major companies and five institutional
partners are creating thought leadership and
momentum at the intersection of climate and
health. The Platform will work with the World
Health Organization (WHO) to create a new
framework for a human rights-based assessment
of climate-related health impacts and mobilizing
joint action for a 1.5°C future of health.
Caring for Climate (UN Global Compact, UNEP
and UNFCCC) mobilizes business leaders and
convenes the annual high-level meetings on
climate change at COP, inviting senior executives
of business, industry, finance, civil society, the
United Nations and Government to ramp up
corporate action.
The Science Based Targets initiative (CDP, UN
Global Compact, WRI and WWF) has been
driving ambitious corporate climate action since
2015, with nearly 900 companies taking climate
action aligned with the Paris Agreement,
of which over 370 companies have approved
science-based targets.
Launched in 2019, the Business Ambition for
1.5°C campaign invites the most visionary
leaders to commit their companies to set
science-based targets aligned with a 1.5°C
pathway in the lead up to COP26. To date, more
than 240 companies have committed and over
100 companies have 1.5°C approved targets.
The "Ambition Loop" is a positive feedback loop
in which bold Government policies and private
sector leadership reinforce each other and
together take climate action to the next level.
Uniting Business and Governments to Recover
Better — With more than 170 CEOs representing
companies in the Science Based Targets initiative
and its Business Ambition for 1.5°C campaign,
this is the largest ever UN-backed CEO-led
climate advocacy effort. Companies are urging
Governments to align socio-economic recovery
from the COVID-19 pandemic with climate
science and reaffirming their own science-based
commitments to achieving a zero-carbon
economy well before 2050. The statement is
available in all six UN languages and Portuguese.
SCALING GLOBALLY
Echoing the words of UN Secretary-General
António Guterres, climate change is undoubtedly
the defining issue of our time. We are at a critical
juncture, where climate change is moving faster
than we are and every half degree makes a world
of difference. The private sector has a key role to
play in sending strong market signals and scaling
innovative solutions to present concrete, realistic
plans towards a zero-carbon economy.
Ambitious business leaders are recognizing that
taking climate action is the best way to build
healthier communities, consumers, businesses
and economies. The voice of business leaders
needs to join that of the UN Secretary-General
in calling on governments to make the right
choices as they rebuild their economies.

33
Ocean
The Sustainable Ocean Business Action Platform
is taking a comprehensive view of the role of the
ocean in achieving the 17 SDGs. The aim is to
explore attractive, viable solutions and best
practices for the sustainable use and management
of the ocean.
The Sustainable Ocean Principles promote a
healthy and productive ocean for current and
future generations and provide a framework
for responsible business practices in the ocean.
Companies signing on to the Sustainable Ocean
Principles commit to assess their impact on the
ocean and integrate the Principles into their
overall strategy.
The Global Goals, Ocean Opportunities 2019
report elaborates on the role of business in
securing a healthy, productive and well-governed
ocean. The interlinkages between the ocean
and the SDGs are also further explored.
To drive ambition and accelerate ocean-based
solutions, 5 Tipping Points for a Healthy and
Productive Ocean by 2030 were identified.
These tipping points represent a set of tangible
objectives for the ocean to support the
achievement of the 2030 Agenda.
The Blue Bonds reference paper identifies
opportunities for the market to secure capital for
ocean-related projects and companies that
have made, or are planning to make, a significant
contribution to the SDGs. The Sustainable Ocean
Principles serve as a baseline of expectations for
issuers of Blue Bonds. The 5 Tipping Points set
clear KPIs to deliver on the SDGs.
The UN Global Compact Networks in France,
Japan, Brazil, Colombia, Indonesia, Mexico,
Spain, Norway, Korea and Turkey are engaged
in the ocean work. This has encouraged more
companies to become signatories of the
Sustainable Ocean Principles.
Local Network consultations advance
implementation of the Sustainable Ocean
Business Action Platform frameworks at the
national level.
By identifying ten ambitions for the ocean in
the Ocean Stewardship 2030 report, the Action
Platform is providing clear recommendations
towards ocean actions for Governments and
businesses to make a meaningful difference in
the next ten years and deliver on the SDGs.
SCALING GLOBALLY
There is an urgent need to protect and restore
the health of the ocean, which is rapidly
deteriorating due to major threats including
climate change, pollution, habitat destruction
and poor governance. Businesses are
increasingly recognizing their responsibility
to assess their impact on ocean health and
incorporate it into their overall strategy.
The ocean work of the UN Global Compact
accelerated following the first-ever UN Ocean
Conference in 2017. As the world looks to provide
the necessary resources to achieve the SDGs, the
role of business to advance ocean sustainability
will be critical in areas of decarbonized shipping,
sustainable global trade, low-carbon foods and
renewable energy.

34
Water
Launch of the Water Resilience Pledge &
Coalition — a CEO-led initiative committed to
reducing water stress by 2050 by achieving
net positive water impact, water-resilient value
chains and raising global ambition and leadership
on resilience. The Coalition has committed to
reaching the half-way mark by 2030.
The Water Security through Stewardship Action
Platform is aimed at advancing cutting-edge
company practices on water stewardship to
contribute to the achievement of Sustainable
Development Goal 6: Clean Water and Sanitation.
Launch of Site Water-Targets Guidance enabling
companies to set relevant and meaningful
targets informed by local catchment contexts
for locally positive outcomes.
The paper Corporate Water Resilience in Uncertain
Times was released to support companies in
thinking about how to manage the uncertainties
introduced to water cycles by climate.
Launch of the Guidance for Companies on
Respecting the Human Rights to Water and
Sanitation.
The CEO Water Mandate is mobilizing business
leaders on water, sanitation and the Sustainable
Development Goals. Nearly 180 endorsing
companies of the CEO Water Mandate commit
to continuous progress against six core elements
of stewardship and in so doing understand and
manage their own water risks.
The CEO Water Mandate helped launch the
WASH4Work partnership in 2016, aimed at
mobilizing businesses to take action on water
access, sanitation and hygiene in the workplace,
in their supply chains and in the communities
where their workers live.
Launch of the Water Stewardship Toolbox in
2016 to help facilitate greater uptake of water
stewardship activities by all actors.
Pioneered collective action model on water
stewardship and developed tools to enable this,
including the Water Action Hub and the Guide
to Managing Integrity in Water Stewardship
Initiatives.
In 2016 and 2018, Global Compact Brazil,
Colombia, Sri Lanka and South Africa
Networks and the CEO Water Mandate, for
which the Pacific Institute is co-secretariat,
collaborated to identify strategies to engage
with companies in these respective countries
to proactively address local water challenges.
In 2018, the Global Compact Network India
and the CEO Water Mandate collaborated
on a local convening in the Noyyal-Bhavani
basin, working with the textile sector on water
challenges.
SCALING GLOBALLY
Freshwater challenges around the world are as
wide-ranging as they are pervasive. Today, more
than 2 billion people live in river basins where
water demand outstrips supply, known as
water-stressed areas. By 2050, that number is
expected to jump to 5 billion. Water challenges
include not only water scarcity, but also pollution,
flooding, access to drinking and sanitation
services and more. All of these challenges are
and will continue to be exacerbated by climate
change, which will have destructive impacts.
Addressing this challenge will require all sectors
of society — particularly the private sector — to
take an active role. Over the past decade, the
work of the CEO Water Mandate has focused on
mobilizing businesses to take action to address
the water crisis, working in partnership with
governments, the UN system, civil society, and
local communities.

35
Labour
The Decent Work in Global Supply Chains Action
Platform has convened representatives of
business, Global Compact Local Networks,
government and United Nations partner
agencies (ILO and UNICEF) to build the case for
improving decent work in global supply chains
and to demonstrate how respect for human
rights and labour rights is critical to achieving
the SDGs.
Business: It’s Time to Act. Decent Work, Modern
Slavery & Child Labour offers a quick overview of
the steps businesses can take to help eliminate
modern slavery, while highlighting key resources,
initiatives and engagement opportunities to
support business action.
A 6-Tier Commitment on advancing decent work
globally was endorsed by many of the Chief
Procurement Officers within companies
participating in the Action Platform (2017-2019).
The Decent WorkToolkit for Sustainable Procurement
(2020) supports companies, procurement
professionals and suppliers to advance decent
work through purchasing decisions.
How Procurement Decisions can Advance
Decent Work in Supply Chains — covers best
practices for sustainable procurement and
provides guidance on engaging with suppliers
around the topic of decent work.
Interactive Map for Business of Anti-Human
Trafficking Organisations (2018) — a resource
for companies to navigate emerging partners
and improve coordination on the eradication
of human trafficking.
Country Dialogues on Decent Work (2019)
— Global Compact Networks UK, Italy, France,
Bangladesh and Sweden gathered local business
and stakeholders to discuss how to best leverage
supply chains to address decent work deficits.
These dialogues served as consultations on the
Decent Work Toolkit for Sustainable Procurement.
Country Workshops on Goal 8 — UN Global
Compact partnered with the CSR Centre of the
Embassy of Sweden in China on a series of
workshop events in Shanghai and Shenzhen,
China. These events explored the interconnections
between the SDGs with a practical deep dive
into Goal 8, including responsible procurement.
SCALING GLOBALLY
The labour principles of the UN Global Compact
(Principles 3, 4, 5 and 6) are championed by the
International Labour Organization (ILO) and state
that businesses should uphold the freedom of
association and the effective recognition of the
right to collective bargaining; the elimination of
all forms of forced and compulsory labour; the
effective abolition of child labour; and the
elimination of discrimination in respect of
employment and occupation. Despite progress,
decent work deficits remain alarmingly
widespread — 24.9 million people are trapped in
forced labour, 152 million children are estimated
to be in child labour, 80 per cent of countries
violate the right to collective bargaining, 54
countries deny or constrain freedom of speech
and assembly and hundreds of millions of
people suffer from discrimination in the world
of work.
Over the past years, the UN Global Compact
has mobilized business to put greater emphasis
on respecting human rights and fundamental
principles and rights at work by leveraging their
supply chains and taking collective action to
address decent work deficits. Goal 8: Decent
Work and Economic Growth is of central
importance to leaving no one behind, as decent
work is essential to achieve a sustainable, just
and equal society.

36
Gender
Established by the UN Global Compact and UN
Women, the Women's Empowerment Principles
(WEPs) (since 2010) offer guidance to businesses
on how to advance gender equality and women’s
empowerment in the workplace, marketplace
and community. The WEPs have helped over
3,000 companies make progress towards gender
equality and women's empowerment over the
past decade. The WEPs are informed by
international labour and human rights standards.
TheWomen’s Empowerment Principles Gender
Gap Analysis Tool (since 2017) supports companies
of all sectors and sizes in discovering how they
are contributing to advancing gender equality
and helps them to identify what further steps can
be taken to translate the WEPs into action. The
Global Trends and Opportunities Reports are
based on aggregated data from the WEPs Gender
Gap Analysis Tool and highlight progress and
opportunities for improvement.
Target Gender Equality (since 2020) is a gender
equality accelerator programme for companies
participating in the UN of the UN Global Compact.
Through facilitated performance analysis, capacity
building workshops, peer-to-peer learning and
multi-stakeholder dialogue at the country level,
Target Gender Equality will support companies
engaged with the UN Global Compact in setting
and reaching ambitious corporate targets for
women’s representation and leadership,
starting with the Board and Executive
Management levels.
The Panel Pledge (since 2016) is an effort to help
put an end to all-male panels and bring gender
balance to conferences and events, highlighting
the importance of amplifying women's voices. To
take the pledge global, the UN Global Compact
encourages its Local Networks and signatories
around the world to make their own pledges.
"Ring the Bell for Gender Equality" (since 2015)
is an initiative that encourages investors and
businesses, through a series of worldwide
events, to scale-up efforts to achieve gender
equality in their markets, industries and
organizations. Around the world, stock exchanges
ring opening or closing bells to celebrate
International Women’s Day in March of each
year alongside the Commission on Status of
Women (CSW). The initiative is a partnership
between IFC, Sustainable Stock Exchanges (SSE)
Initiative, UN Global Compact, UN Women, the
World Federation of Exchanges and Women
in ETFs.
Global Compact Local Networks carry out
activities specifically focused on advancing
gender equality and promoting the Women's
Empowerment Principles at the local level.
SCALING GLOBALLY
Gender equality is at the heart of human rights
and essential to a wide range of 2030 Agenda
objectives. When it comes to advancing gender
equality, business has an important role to play
and much to gain. When women are empowered,
economies grow and businesses thrive.
Yet, progress on Goal 5: Gender Equality remains
alarmingly slow. It is estimated that it will take
257 years to close the economic gender gap at
the current pace of change. While gender equality
has emerged as a top corporate sustainability issue,
most companies have not sufficiently translated
this commitment into action. For example, women
remain critically underrepresented in business
leadership roles.More women may lead Fortune 500
companies than ever before, but they still represent
only 7.4 per cent of the CEOs on the ranking.

37
Anti-Corruption & Global Governance
Peace, Justice and Strong Institutions Action
Platform (launched in 2018) — shaping the
way Governments, civil society and business
collaborate in strengthening this critical
foundation to achieve the SDGs.
Business for the Rule of Law Framework (2015)
— the framework seeks to advance the rule of
law by engaging responsible business to support
the building and strengthening of legal
frameworks and accountable institutions.
Guide for General Counsel on Corporate
Sustainability (2015) — provides practical guidance
and examples to in-house counsel in their emerging
role as key change agents in advancing corporate
sustainability issues within their respective
organizations. This is one of the most downloaded
resources in the UN Global Compact library.
Guide for General Counsel on Corporate
Sustainability Guide v2.0 (2019) — builds on the
original 2015 version.
Anti-Corruption Call to Action — an appeal by
the private sector to governments to promote
anti-corruption measures and implement policies
that will establish systems of good governance.
The Call to Action urged Governments to
underscore anti-corruption and good
Governance as fundamental pillars of a
sustainable and inclusive global economy
and include them as important tenets of the
now-adopted 2030 Agenda for Sustainable
Development. Over 250 companies and
investors worldwide have signed on to the
Anti-Corruption Call to Action.
Siemens Integrity Initiative First and Second
Funding Round Projects: the UN Global Compact,
in collaboration with various organizations
including the Global Compact Local Networks,
carried out activities specifically focused on
advancing anti-corruption collective action
efforts in Brazil, Egypt, India, Japan, Kenya,
Nigeria and South Africa. The Third Funding
Round Project, "Scaling up Anti-Corruption
Collective Action within Global Compact Local
Networks", was launched in 2019.
Anti-Corruption Working Group: the UN Global
Compact convened a global multi-stakeholder
group to undertake cross-sectoral and collaborative
efforts to strengthen anti-corruption practices at
the global and local levels.
Business for Peace is a platform of close to 150
leading companies and business associations from
37 countries, dedicated to catalyzing collaborative
action to advance peace. Recognizing the
importance of local knowledge and ownership
of issues related to peace, Business for Peace has
adopted a locally-driven approach with Global
Compact Local Networks playing a central role.
SCALING GLOBALLY
Governance is the systems and processes that
ensure the overall effectiveness of an entity —
whether a business, Government or multilateral
institution. Over the past two decades, companies
have engaged with the UN Global Compact
through three critical areas of governance:
anti-corruption, peace and rule of law and
through the framework for Goal 16: Peace,
Justice and Strong Institutions.
Principle 10 of the UN of the UN Global Compact
on anti-corruption asserts that businesses should
work against corruption in all its forms, including
extortion and bribery. Companies are challenged
to join peers, Governments, UN Agencies and
civil society to respect and support the promotion
of accountable, transparent and inclusive
institutions and ensure just and peaceful
societies for all.

38
Sustainable Finance
The UN Global Compact and Principles for
Responsible Investment (PRI) have developed a
tool — the Value Driver Model — for companies
to better assess and communicate the financial
impact of their sustainability strategies and
help investors integrate sustainability data into
their existing investment processes and issued
ESG Investor Briefings, designed to improve
company-investor communications on material
ESG information.
SDG Bonds — Leveraging Capital Markets for
the SDGs encourages major players in the
investment value chain to build a market for
mainstream SDG investments, with enough
scale, liquidity and diversification to attract large
institutional investors and finance a broad set of
private- and public-sector activities in support of
the Goals. The first SDG-linked bond was valued
at US$ 1.5 billion.
Building on the work of the Financial Innovation
Action Platform, the CFO Taskforce for the SDGs
is a new UN Global Compact initiative, focused
on providing a platform for Chief Financial
Officers to integrate the SDGs into corporate
finance.
Who Cares Wins (2004) — a joint initiative led
by the UN Global Compact, IFC, and Swiss
Government that helped launch the Principles
for Responsible Investment (PRI), now the largest
responsible investment initiative in the world.
Founded by the UN Global Compact in 2009 in
conjunction with the PRI, UNEP FI, and UNCTAD,
the Sustainable Stock Exchanges initiative now
boasts 102 participating exchanges, covering
over 50,000 listed companies with over US$ 88
trillion in market capitalization.
The UN Alliance for SDG Finance — together,
the UN Global Compact, the UN Environment
Finance Initiative (UNEP-FI) and PRI constitute
the largest networks of private and financial sector
constituencies — corporations, investors, banks
and insurers — dedicated to promoting the SDGs.
Local Networks in Brazil, Indonesia, Italy and
South Africa worked with the UN Global Compact
and PRI to host SDG Investment Forums in
2019. The objective of the Forums is to enhance
dialogue at the local level between investors,
companies, the UN and Governments on
investments to advance the SDGs.
INNOVATION AND THOUGHT LEADERSHIP SCALING GLOBALLY
The UN Global Compact has been at the forefront
of developing the responsible investment market,
which has grown to approximately US$ 31 trillion
in assets under management as of 2019. There is
now a recognition in both the academic and
financial communities that ESG factors
are material to the financial performance of
companies, making it critical for CEOs and CFOs
to understand and take action on these issues.
It has been estimated that achieving the SDGs
by 2030 will require roughly US$ 5-7 trillion of
annual investments. This leaves us with a financing
gap of between US$ 2.5 and US$ 3 trillion annually
and, for each year we fail to close the gap, the price
tag grows. As corporate sustainability initiatives
increasingly become part of core business
strategy, leaders are rethinking the future of
corporate finance and corporate investments to
advance social good.
Value Driver Model

39
SDG Integration
Blueprint for Business Leadership on the SDGs
The Blueprint for Business Leadership on the
SDGs (2017) illustrates how leadership qualities
of Intentionality, Ambition, Consistency,
Collaboration and Accountability can be applied
to a business strategy, products, value chains and
partnerships to create impact on the SDGs.
Integrating the SDGs into Corporate Reporting
(2018) — a practical guide outlining a 3-step
process to embed the SDGs into existing
business and reporting processes.
SDG Compass (2015) — a practical alignment
tool for companies on how they can measure
and manage their contribution to the
realization of the SDGs.
SDG Ambition (2020) — a Global Impact Initiative
aimed at challenging thousands of companies to
raise their level of ambition to meet the needs of
society and the planet. Through Global Compact
Networks across 68 countries, companies will
assess performance, identify risks and discover
new opportunities across business units and
functions to take ambitious action towards
the SDGs.
SDG Action Manager (2020) — a web-based
impact management tool that brings together B
Lab’s B Impact Assessment, the Ten Principles of
the UN Global Compact and the SDGs to enable
meaningful business action through self-
assessment, benchmarking and improvement.
Framework for Breakthrough Impact on the
SDGs (2019) — a toolkit for business to leverage
the SDGs to uncover new products, services and
business model opportunities.
Young SDG Innovators Programme (2019) — an
accelerator programme for future business
leaders and changemakers to develop and drive
innovative solutions towards the SDGs through
new technologies, initiatives and business models.
Making Global Goals Local Business (MGGLB)
— the UN Global Compact collaborated with its
68 Local Networks on a series of MGGLB events
convening hundreds of leaders from business,
civil society, government and the UN to direct
collective action towards the Ten Principles and
the SDGs. Since 2016, the UN Global Compact
has recognized cohorts of SDG Pioneers under
the MGGLB campaign — business leaders working
at any level of their company who are using
business as a force for good to advance the SDGs.
SCALING GLOBALLY
Business cannot thrive unless people and the
planet are thriving. This includes ensuring that
the world is on a path to meet all 17 Sustainable
Development Goals. The 2030 Agenda for
Sustainable Development is a plan of action for
people, the planet and prosperity. The SDGs are
universal, transcend borders and apply across
the workplace, marketplace and community.
Business cannot thrive in a world of poverty,
inequality, unrest and environmental stress and
so it has a vital interest in ensuring the 2030
Agenda is delivered.
Successful delivery of the 2030 Agenda requires
engagement from all businesses. The Ten
Principles and their four pillars of human rights,
labour, environment and anti-corruption are a
vital set of business values that strongly align
with the SDGs. In order to advance the
integration of the SDGs across business strategy
and operations, the UN Global Compact has
developed tools and resources to scale business
impact.

40
Local Network Action
CLIMATE: BRAZIL
Global Compact Network Brazil has had a strong
focus on advancing the climate agenda over
the last years. Business Ambition for 1.5°C is an
international campaign that invites companies to
commit to greenhouse gas emissions reduction
targets in line with science and the Paris
Agreement. The Brazilian Network hosted the
campaign launch in June 2019, at a CEO
Roundtable promoted in Rio de Janeiro with the
presence of the Secretary-General's Special Envoy
for the Climate Summit, Ambassador Luis Alfonso
de Alba. In October 2019, the international
initiative was adapted to a national engagement
campaign, #TakeThisPen (#AceitaEstaCaneta),
created in collaboration with AlmapBBDO.
The campaign gained national visibility in Brazil,
increasing public awareness of climate issues and
encouraging more than 20 organizations with
operations in Brazil to sign the agreement and
establish concrete climate targets. The Brazilian
Network’s efforts to increase the number of local
signatories continues. #TakeThisPen was showcased
at COP25 — the annual UN climate conference
— as an example of successful engagement and
was also used by Mr. Gonzalo Muñoz, Climate
Champion for COP25, to recruit other large Latin
American organizations to sign the commitment.
HUMAN RIGHTS: GERMANY
Core to the work of the Global Compact Network
Germany is supporting companies in the
implementation of human rights policies and
practices. It does so in various ways, including by
providing a platform for continuous exchange and
peer learning among companies, the development
of practical guidance notes, capacity-building on
the use of practical solutions and tools and by
holding informative online and in-person
sessions. In 2018, the Network conducted a
series of pilot training sessions on business and
human rights in Ethiopia, Ghana and Tunisia (the
latter in cooperation with the Tunisian Local
Network). Given that some of the key human
rights challenges for German businesses are
related to supply chains, the trainings
were aimed at suppliers and subsidiaries of
German companies as well as local businesses
in the three countries. Participants learned about
current developments and relevant frameworks
in the field of business and human rights.
They discussed the implications for their own
businesses and supply chains and were provided
with practical tips and tools on how to start
developing a human rights approach while
realizing the business benefits of enhanced
social sustainability.
LABOUR: BANGLADESH
The Global Compact Network Bangladesh has
made significant efforts in educating small and
medium-sized enterprises (SMEs) about
sustainable practices in business operation and
supply chains. In 2019, Global Compact Network
Bangladesh and BRAC Bank Ltd partnered with
the International Labour Organization (ILO) to
hold workshops with 60 small and medium-sized
enterprises (SMEs) from the manufacturing, trade
and service sectors in Bangladesh. The workshops
covered supply chain sustainability, management
and traceability, with a focus on the Ten Principles
of the UN Global Compact. After the workshops,
the partners organized "SME Sustainability Day
2019", in collaboration with UNICEF Bangladesh
and DBL Group. The event was geared towards
advancing the participants’ understanding of the
importance and impacts of operating in a
sustainable manner. The focus was on sharing
practical ways of putting sustainability at the
core of business strategies, identifying gaps and
challenges by sharing good practices and diving
deeper into decent work and human rights as
core elements of sustainability. After the flagship
event, UNICEF Bangladesh hosted factory visits to
local companies to enable SMEs to gain hands-on
experience.

41
GENDER: TURKEY
Raising awareness of gender equality issues
across Turkish businesses has been a key focus
for Global Compact Network Turkey. From 2017
to March 2020, Turkey ranked first in the world of
the signatories to the Women’s Empowerment
Principles (WEPs). Building on this, the Network,
in cooperation with UN Women Turkey and the
UNFPA, developed the WEPs Implementation
Guide, available in English and Turkish. The
guide includes a self-assessment module,
a roadmap and a training module to support
companies in transforming their operations,
production and service processes in a gender
equal way. In 2019, the Network held training on
the WEPs for human resources and communication
professionals in Turkey’s fifth largest city, Bursa,
educating participants in ways ways to implement
the WEPs in their companies.

The Network is rolling out a UN Global Impact
Initiative called "Target Gender Equality", focused
on supporting companies. The Turkish Network
continues to develop partnerships to encourage
gender-equal business in Turkey.
SDG INTEGRATION: SPAIN
The Spanish Local Network has made continuous
efforts to promote corporate social responsibility
and sustainable development among small and
medium-sized enterprises (SMEs) since its
inception in 2004.  
Recently, the Spanish Network signed an
agreement with the Spanish Confederation
of Small and Medium Enterprises — the most
important employer in the country — and another
one with the National Chamber of Commerce
to promote the 2030 Agenda, the Global Goals
and the new national and European policies on
sustainable development among SMEs.  
In addition to ongoing training and advice to
partner SMEs related to the Ten Principles and
Global Goals, the Local Network in Spain has
published a Guide for SMEs on the Sustainable
Development Goals in collaboration with the
General Council of Economists of Spain. The
Network also launched a website in partnership
with the Official Credit Institute, providing SMEs and
self-employed workers with information on the
2030 Agenda and relevant business opportunities. 
ANTI-CORRUPTION: KENYA
Kenya has taken important action to tackle
corruption, including the passing of the Bribery
Act, 2016 — the first legislation adopted in the
country targeting the private sector. Global
Compact Network Kenya has made significant
contributions to the nation’s anti-corruption
efforts, engaging with thousands of businesses
to raise awareness of the Bribery Act and support
these companies to understand and adhere to the
Ten Principles of the UN Global Compact.

Over the last years, the Kenya Network has
conducted large outreach programmes — they
have worked with hundreds of representatives
of large companies that are UN Global Compact
participants, small and medium-sized enterprises
(SMEs), Government and civil society to help
tackle corruption and achieve sustainable change.
In 2018, the Network launched a toolkit to
promote business compliance with the Bribery
Act and help strengthen the implementation of
the Code of Ethics for Business in Kenya. Over
700 companies across Kenya have signed up to
the Code. The Kenya Network mentors SMEs in
using the toolkit to conduct self-assessments of
their anti-corruption practices and move towards
closing the gaps to ensure ethical conduct and
compliance.

42

43
PROGRESS TO DATE CHAPTER 4
4PROGRESS TO DATE

44
PROGRESS TO DATE
With 10,475 participants, the UN Global Compact — and companies’ desire to
adopt sustainable practices — have significant traction in today’s world.
In this section, we look beneath the record numbers committing to the Ten
Principles to understand how effectively participants are embedding the Ten
Principles in their strategy and operations and how they are approaching the
Sustainable Development Goals (SDGs).

45
The value the UN Global Compact
has delivered to business
Some of the main reasons companies participate
in the UN Global Compact are outlined below.
Participation in the UN Global Compact supports
stakeholder trust in companies.
At 83 per cent, the most common reason by
some margin that survey respondents say they
participate in the UN Global Compact is "to
increase trust through a public commitment to
sustainability." This figure has grown from 74 per
cent in 2010.
Other reasons participants give include helping
to "acquire knowledge to advance sustainability
in operations and strategy" (66% in 2020, up from
29% in 2010), indicating that opportunities to learn
about sustainability and knowledge provided by
the UN Global Compact have been a growing
area of benefit for participants. The "universal
nature of the Ten Principles" is also seen as a key
reason (55% in 2020, down from 66% in 2010).
The decreasing importance of the Ten Principles
as a universal framework for sustainability perhaps
reflects that the Sustainable Development Goals
are a growing reference point for a wide range of
sustainability issues.
Less significant reasons for participant involvement
include, "pressure from external stakeholders"
(13%), "investor efforts to evaluate sustainability
performance" (13%) and "establishing links with
the United Nations" (16%).
Almost three quarters
of respondents "agree"
or "strongly agree" that
has played an important
role in driving the
implementation of
sustainability policies
and practices
say the UN Global
Compact has been
"significant" or
"essential" in spreading
corporate sustainability
worldwide
Over half feel it has
played an important
role in shaping their
company’s vision
Participants in the UN Global Compact widely agree that it has played a significant role in establishing
sustainability within their organizations and has been significant in spreading corporate sustainability
around the world (see side bar).
51%
59%
71%
THE UN GLOBAL
COMPACT HAS
PLAYED A DISTINCT
ROLE IN
ESTABLISHING
SUSTAINABILITY
WITHIN COMPANIES
TOP REASONS COMPANIES ARE PARTICIPATING
IN THE UN GLOBAL COMPACT
Increase trust through public commitment
to sustainability
Acquire knowledge to advance sustainability
into operations and strategy
Universal nature of
the Ten Principles
Networking with
other organizations
Address business opportunities
and risks
% 0 20 40 60 80 1002020 2015 2010
83%
66%
55%
35%
32%
81%
55%
60%
33%
31%
74%
29%
66%
39%
37%

46
0 10 20 30 40 50 0 10 20 30 40 50 60 70 80 90 100
Assessing progress against
the Ten Principles
Policy-action gap
But policy alone does not deliver change and
action to embed responsible business practices
is not keeping pace with policy commitments.
In some cases, action lags behind significantly.
It is clear that to deliver deeper change towards
sustainable business, participants need to move
beyond policy and take action that will underpin
a better understanding of impacts and lead to
performance improvements.
Across the four areas of the Ten Principles, less
than 50 per cent of survey respondents are
addressing the majority of indicators for practical
action on human rights, labour, environment and
anti-corruption. For example, less than 30 per
cent of respondents across human rights, labour
and anti-corruption have conducted an impact
assessment. For environment, the figure is higher
at 62 per cent.
Training and awareness programmes for employees
is an area of positive performance and action has
been taken by the majority of survey respondents
(above 50%). Monitoring and evaluating
performance vary by area, with only 29 per cent
monitoring human rights performance up to a
high of 48 per cent for labour (environment is
44%, anti-corruption, 31%). Specific details
on action relating to the four areas of the Ten
Principles are covered on pages 48 and 49
and also at a system level in chapter 5.
The Ten Principles promote a commitment to responsible business by participants. This is best illustrated
by the fact that more than 90 per cent of UN Global Compact participants have established policies
in relation to the four areas of the Ten Principles.
ACTION TAKEN TO EMBED CORPORATE RESPONSIBILITY WITHIN
STRATEGY AND OPERATIONS (2020)Least common action
Most common action
38%
26%
Incentivizing and disincentivizing
corporate responsibility
25%
Change business model to more
deeply embed sustainability
14%
Using price of negative
impacts in decision making
28%
Managed transition away from negative
impact products and services
88%
Publicly communicate commitment
to corporate responsibility
77%
Communicate commitment
to an internal audience
72%
Establish/adjust policies to
incorporate vision and goals
71%
Set measurable
sustainability goals
71%
Values reflected in
Code of Conduct
HUMAN RIGHTS
90% 2020
94% 2015 • 88% 2010
LABOUR
94% 2020
96% 2015 • 96% 2010
ENVIRONMENT
94% 2020
96% 2015 • 98% 2010
ANTI-CORRUPTION
90% 2020
91% 2015 • 86% 2010
HUMAN RIGHTS
ENVIRONMENT
Policy implementation
by survey respondents
relating to the Ten
Principles
This figure represents
a selection of the
most common and
least common actions
companies are taking
to embed corporate
responsibility within
strategy and
operations (2020)
Engage in multi-stakeholder
consultations

47
How are companies utilizing
the Ten Principles?
Interview participants highlighted that the
Ten Principles are useful as a foundation for
establishing a corporate sustainability approach
and are used as a framework to refer to in
sustainability reporting.
Many believed that the Ten Principles are an
entry-level requirement for companies and that
quantifiable or specific measures should be
set to strengthen the value they deliver. Here
is where the SDGs, in conjunction with the
Ten Principles, could play an important role
as they represent a framework to scale action
and ambition.
Key factors relating to the Ten Principles ranked by the number of times they were referenced in interviews with companies.
#6Driving ambition
at the business
level
#1Driving business
implementation of
sustainability policy
and practices
#2Framing internal/
external communication
about sustainability
performance
#3The Ten Principles
are used in our
Communication
on Progress
#4Driving actions
and targets
#5Shaping our
company’s
vision

48
Good progress in policy implementation across the four areas of the Ten Principles is evident, but
as with the overall results, practical action to deliver change is lagging behind policy in many areas.
HUMAN RIGHTS
Policies relating to human rights are in place
for 90 per cent of survey respondents, with
70 per cent saying the UN Global Compact
has had an impact on their approach in this
area (on a scale of moderate to essential
impact). Non-discrimination, workplace
health and safety and gender equality are
the impact areas most commonly addressed
in company policies, each with over 90 per
cent coverage. Areas with lower coverage in
policies include adequate standard of living
(45%) and forced displacement (23%).
There is a stark contrast, however, between
the extent of policy implementation and
actions to understand impact and enhance
performance, as shown in the graphic.
Progress in each area
of the Ten Principles
Policy
Employee
training
Complaints/grievance
mechanism
Employee performance
assessment
Risk assessment for suppliers
/subcontractors
Operational
guidance notes

Human rights
risk assessment
% 0 20 40 60 80 100
90%
35%
53%
23%
51%
23%
18%
LABOUR
Policies relating to labour issues are in place
for 94 per cent of survey respondents, with
64 per cent saying the UN Global Compact
has had an impact on their approach in this
area (from moderate to essential impact).
Compared to the human rights theme, the
labour topics covered most by company
policies score lower. Safe working conditions,
non-discrimination, equal opportunities
and recognizing that all workers are free to
form/join a trade union of their choice are
the impact areas most commonly addressed
in company policies, each with over 80 per
cent coverage. Areas with lower coverage
in policies include not using or benefiting
from forced labour (68%) and not using or
benefiting from child labour (69%).
Policy

Work-life balance
measures
Employee
training
Collective bargaining on
employment/working conditions
Inclusion of people
with disabilities
Reliable age verification
mechanisms
Labour rights
impact assessment
Avoid exclusion of union
members from employment
% 0 20 40 60 80 100
94%
64%
74%
60%
65%
37%
29%
28%
1 Support and
respect the protection
of internationally
proclaimed human
rights;
2 make sure that they
are not complicit in
human rights abuses.
3 Businesses should
uphold the freedom
of association and the
effective recognition of
the right to collective
bargaining;
4 the elimination of
all forms of forced and
compulsory labour;
5 the effective abolition
of child labour; and
6 the elimination of
discrimination in respect
of employment and
occupation.

49
ANTI-CORRUPTION
Policies relating to anti-corruption are
in place for 90 per cent of survey
respondents, with 63 per cent saying the
UN Global Compact had an impact on their
approach in this area (from moderate to
essential impact). The majority (72%) have
taken anti-corruption into account in their
overall corporate code or principles and
62 per cent have an explicit anti-corruption
policy. However, 45 per cent of respondents
do not have a zero-tolerance approach to
anti-corruption and 58 per cent do not have
a code of ethics for suppliers.
Policy
Employee
training
Anonymous hotline
for reporting corruption
Sanctions for corruption
by employees
Monitoring
performance
Anti-corruption impact
assessment
Record facilitation
payments and gifts
% 0 20 40 60 80 100
90%
45%
56%
31%
54%
25%
22%
ENVIRONMENT
Policies relating to the environment are in
place for 94 per cent of survey respondents,
with 71 per cent saying the UN Global Com-
pact has had an impact on their approach
in this area (from moderate to essential
impact).
High-scoring elements within policies include
sustainable consumption and responsible
use (76%), performance targets and indicators
(68%), voluntary charters or codes (59%)
and cleaner and safer production objectives
(59%). Awareness of the need for climate
action is increasing fast, but action is lagging
behind. Fewer than half of companies report
greenhouse gas emissions and strategic
climate change data (44%) and less than a
quarter have fully integrated climate change
policy into their overall company strategy
and operations (29%).
Policy
Environmentally-friendly
technologies and solutions
Resource
efficiency
Environmental impact
assessment
Employee
training
Make public
commitments
Consider externalities
in investment decisions
% 0 20 40 60 80 100
94%
62%
72%
62%
70%
31%
18%
IN FOCUS: CLIMATE ACTION — TARGET SETTING
Two-thirds of respondents (67%) have a
commitment to reduce greenhouse gases (GHG),
but half of them have set a target — whether
intensity targets, absolute targets, or both. Only 15
per cent of emissions reduction targets have been
initiative (SBTi), but 33 per cent have a target they
consider to be science-based but that has not been
approved by the SBTi. Of those respondents that
have a reduction target, 27 per cent are planning to
align this target with science in the next two years.
For the half of the respondents that do not have
an emissions reduction target, 41 per cent plan
to introduce one in the next two years, but one-
third felt that, although important, it was not an
immediate business priority. The primary drivers
of action on climate change in companies were
energy use (69%), company mission/core values
(51%) and the impact of public targets (48%).
7 Businesses should
support a precautionary
approach to
environmental challenges;
8 undertake initiatives
to promote greater
environmental
responsibility; and
9 encourage the
development and
diffusion of
environmentally friendly
technologies.
10 Businesses should
work against corruption
in all its forms, including
extortion and bribery.

50
IN FOCUS: Supply chain progress
The number one
challenge companies
report for advancing
to the next level of
performance is extending
their sustainability
approach through
the supply chain
#1
Reflecting this challenge, very low numbers
of survey respondents are taking action to
embed corporate responsibility within their
supply chains, other than including corporate
responsibility expectations in relevant supplier
documents (71%). In all other areas, less than
30 per cent of companies are taking action.
Added to the low levels of action, almost no
progress has been made in the past decade,
with minimal change over this time. Actions
such as rewarding suppliers, reviewing and
commenting on supplier remediation plans
and including corporate responsibility
expectations in relevant documents have
increased marginally, but only by a maximum
of four percentage points in ten years. Other
action, such as training staff and assisting
suppliers in setting and reviewing goals,
have decreased in the last ten years.
The biggest challenge that companies report in advancing to the next level of implementing the Ten
Principles and action to advance the SDGs is extending their sustainability approach through the supply
chain (47% of respondents).
ACTIONS TAKEN TO EMBED CORPORATE REPONSIBILITY
IN SUPPLY CHAINS (2010-2020)2020
2015
2010
Include corporate expectations in relevant documents
Provide training for suppliers on relevant issues
Review and comment on supplier remediation plans
Reward suppliers that perform well on business
and corporate responsibility criteria
Assist suppliers in setting and reviewing goals
Provide resources to suppliers for specific improvement projects
% 0 10 20 30 40 50 60 70 80 90 100

51
Extending the Ten Principles to suppliers
Only 17 per cent of respondents require supply
chain partners to adhere to the Ten Principles of
the UN Global Compact. For those that do not
require suppliers to adhere to the Ten Principles,
40 per cent stated it was not a priority and 32 per
cent said a lack of knowledge on integrating the Ten
Principles into procurement practices was a barrier.
Other reasons cited included: no clear link to
business value (29%); lack of capacity (26%);
lack of financial resources (15%); and corporate
responsibility data not being available (12%).
This shows scope for the UN Global Compact
to enhance participants' capacity to promote
sustainability within their supply chains.
First-tier supplier focus
Companies conducting corporate responsibility
due diligence in their supply chain are
overwhelmingly doing this with first-tier suppliers.
Supplier due diligence is primarily completed
through self-assessment questionnaires (44%) or
reviewing publicly available sustainability reports
(36%) rather than by auditing. Due diligence audits
of suppliers by company staff are conducted by
33 per cent of respondents and only 17 per cent
use independent third-party auditors.
In terms of the SDGs, it is a similar story. Only
45 per cent of companies have conducted an
assessment of positive impacts relating to the
SDGs along the value chain and only 31 per
cent have assessed negative impacts. The
majority are focused on impacts relating to
company operations (57%) compared to 13 per
cent looking at suppliers and 10 per cent at raw
materials.
FOR WHICH ENTITIES IN THE SUPPLY CHAIN DO YOU CONDUCT
CORPORATE RESPONSIBILITY DUE DILIGENCE?
HOW COMPANIES ARE CONDUCTING DUE DILIGENCE
IN THEIR SUPPLY CHAIN
First tier suppliers
Second tier suppliers
All tiers
Largest suppliers, based on contract values
Suppliers identified through risk assessments
% 0 5 10 15 20 25 30 35 40 45 50
48%
7%
30%
33%
Audits by company staff
Review documentation provided by supply chain
partner that is not publicly available
Audits by third party
Verification of remediation activities
% 0 5 10 15 20 25 30 35 40 45 50
33%
30%
17%
12%
38%
Only 17 per cent of
companies require
supply chain partners
to adhere to the Ten
Principles
17%

52
The impact of companies on the
Sustainable Development Goals
Focus on positive contributions and less
recognition of negative impacts
Less than half of respondents have assessed
the positive (45%) and negative (31%) impacts
of their operations in relation to the SDGs. Even
fewer have assessed supply chain impacts on the
SDGs (13%) and the impact of raw materials (10%).
This shows considerable scope for companies to
enhance their understanding of impacts across
the value chain and to take action that will deliver
positive change to support the SDGs.
Actions through product development and business
models growing, but not at the pace needed
Almost two-thirds of respondents (61%) develop
products and services that align with the SDGs, a
significant jump from 48 per cent in 2019. Fewer
are designing business models to contribute to
the SDGs, with 37 per cent stating they do this,
but this is still up from up from 29 per cent a year
ago. Some interviewees highlighted that the SDGs
are used as a common framework to communicate
the sustainability contribution of their products
and services to their key stakeholders. However,
the SDGs are not used to a large extent to drive
business ambition at the moment.
Collaboration is key
Progress cannot be achieved alone. Business
has a particular role to play in strengthening
collaboration across value chains. The 2020
survey shows that 34 per cent of companies are
engaged in collective action within the UN Global
Compact Network and most find this helpful.
At 84 per cent, a high proportion of survey respondents state they are taking action to advance the SDGs.
But with ten years remaining to achieve the SDGs, the fact that 46 per cent do not align their strategies
with the SDGs raises significant concerns for the level of business support to achieve the Goals. In addition,
only 29 per cent of businesses feel that their industry is moving fast enough to deliver the SDGs by 2030.
of respondents state
they are taking action
to advance the SDGs.
But 46 per cent do not
align their strategies
with the SDGs
84%
HOW ARE COMPANIES TAKING ACTION TO CONTRIBUTE TO THE SDGs?
2020
2019
Core business: upholding the Ten Principles
of the UN Global Compact
Core business: aligning core business
strategy with the SDGs
Core business: develop products and/
or services that contribute to the SDGs
Core business: design business
models that contribute to the SDGs
Social investment and philantrohy: voluntary financial
contributions to charitable organizations and/or not-for-profit
Advocacy and public policy: publicly advocate
the importance of action in relation to the SDGs
Collaboration and partnerships: participate in
industry collaborations to advance the SDGs
% 0 10 20 30 40 50 60 70 80 90 100
46%
43%
73%
59%
61%
48%
37%
29%
55%
50%
35%
29%
43%
35%

53
#1
#2
Locally, 61 per cent are engaged in a UN Global
Compact Local Network.
At 58 per cent, sharing practices and experiences
with peers is the main reason respondents
engage with a Local Network. Other reasons
include networking with other companies (50%)
and assistance with implementing the Ten
Principles (45%). It is clear that collaborative
action provides positive momentum, but it needs
to be significantly expanded from current levels
to scale-up and accelerate progress.
Challenges
Beyond challenges extending corporate
responsibility action within the supply chain,
other challenges that companies are facing in
progressing towards the SDGs include how to
implement strategy across business functions
(33%), lack of financial resources (32%)
and competing strategic priorities (30%).
Encouragingly, very few companies state that
a lack of support from top management (7%)
or lack of recognition from investors (9%)
are challenges for delivering progress in
implementing the Ten Principles and the SDGs.
Prioritizing the SDGs
Companies are selecting and prioritizing
SDGs based on their business type, impacts
and stakeholder input. The table below shows
the percentage of respondents that have
prioritized each SDG.
When companies prioritize an SDG, there appears
to be a correlation between this priority a company
applies and the level of action they take. However,
the number of companies prioritizing certain SDGs
remains low. This includes those related to poverty
and living standards — Goal 1: No Poverty, Goal 2:
Zero Hunger,and Goal 6: Clean Water and Sanitation
— and relating to environmental impacts — Goal 14:
Life On Land and Goal 15: Life Below Water.
The amount of action taken on these SDGs
remains minimal. A greater focus is needed to
ensure that, even if companies are focusing on
a smaller number of priority SDGs, the bigger
picture covered by all 17 SDGs is still considered.
SDG RANKING
The SDGs act as a guiding
compass across all of C.P. Group’s
businesses in Thailand and the
overseas; it helps steer us through
troubled times and enables us to
deliver value to all stakeholders
sustainably. — C.P. Group
RANK (1-17) Prioritizing
the SDGs (%)
65%
55%
61%
59%
Positive: 91
No impact: 5
Negative: 1
Don’t know: 3
Positive: 85
No impact: 7
Negative: 2
Don’t know: 6
90 per cent of companies prioritizing Goal 8 mandate
equal pay for equal work, but only 63 per cent extend
workforce policies to contractors and the broader
supply chain
Only 61 per cent of the companies prioritizing Goal 3
provide healthcare for all employees
Target
setting (%)
Recognizing impact
on the SDGs (%)
Key highlights

54
#3
#4
#5
#6
#7
#8
#9
#10
the SDGs (%)
54%
54%
53%
49%
42%
40%
38%
34%
78%
69%
69%
60%
52%
69%
61%
59%
Positive: 72
No impact: 14
Negative: 7
Don’t know: 7
Positive: 78
No impact: 13
Negative: 3
Don’t know: 6
Positive: 83
No impact: 10
Negative: 2
Don’t know: 5
Positive: 79
No impact: 16
Negative: 1
Don’t know: 4
Positive: 72
No impact: 17
Negative: 3
Don’t know: 8
Positive: 64
No impact: 25
Negative: 3
Don’t know: 8
Positive: 70
No impact: 20
Negative: 1
Don’t know: 9
Positive: 67
No impact: 22
Negative: 1
Don’t know: 10
One-third of companies prioritizing Goal 13 have
committed to setting a 1.5-degree Science Based
Target (34%), and 40 per cent have committed to
or set a net-zero target by 2050 or earlier
Of the companies that are prioritizing Goal 12, 70 per
cent are deploying circular models for consumption
and 70 per cent are reducing or reusing all waste in
production and operations, including food waste
Only 69 per cent of those that prioritize this SDG have
set targets, and only 43 per cent require a minimum of
30 per cent of women on their board
80 per cent of companies that have prioritized Goal 9
ensure sustainability of all business infrastructure and
capital projects in accordance with established criteria
and 69 per cent also extend their core expertise to
improve national infrastructure
77 per cent of companies that are prioritizing Goal 17
are co-investing with communities where employees
live and work; 82 per cent also collaborate across the
value chain to meet the SDGs
Only 31 per cent of companies that have prioritized
Goal 7 have 100 per cent renewable energy in their
operations, but 50 per cent strive to be energy positive
87 per cent of companies that are prioritizing Goal 4
are working with institutions to define the skills they
need and help build the future workforce pipeline
Of the companies that prioritize Goal 11, 97 per cent
ensure they are positively contributing to the
communities in which they operate
Target
setting (%)
Recognizing impact
on the SDGs (%)
Key highlights

55
#11
#12
#13
#14
#15
#16
#17
the SDGs (%)
33%
28%
24%
22%
21%
18%
13%
58%
59%
58%
52%
56%
51%
48%
Positive: 73
No impact: 17
Negative: <2
Don’t know: 16
Positive: 59
No impact: 27
Negative: 4
Don’t know: 10
Positive: 55
No impact: 30
Negative: 2
Don’t know: 13
Positive: 61
No impact: 22
Negative: <2
Don’t know: 16
Positive: 47
No impact: 31
Negative: 7
Don’t know: 15
Positive: 50
No impact: 28
Negative: 3
Don’t know: 19
Positive: 35
No impact: 40
Negative: 7
Don’t know: 18
Of the companies that have prioritized Goal 10, 81
per cent strive for the diversity of the workforce to
be representative of the communities in which they
operate; 83 per cent ensure products and services
are accessible to people with disabilities
Of the companies that have prioritized Goal 6, 77 per
cent maintain water stewardship in policies and
practices; 83 per cent have a goal to be net-positive
impact on water
Of the companies that have prioritized Goal 16, 91 per
cent support strong institutions and apply progressive
non-discriminatory practices in all countries in which
they operate
85 per cent of companies that currently prioritize Goal
1 implement and promote living wages where they
operate
89 per cent of the companies that prioritize Goal 15
agree to no deforestation or destruction of critical
habitats in threatened areas (including via their
suppliers)
Of the companies that are prioritizing Goal 2, only 54
per cent reported increasing productivity, efficiency
and nutrition profiles of all food in their operations and
portfolio
Of the companies that currently prioritize Goal 14, only
52 per cent extend producer responsibility through
the end of life of products but 84 per cent ensure that
operational waste (both inputs and outputs) does not
end up in the oceans
GENDER EQUALITY – OPPORTUNITY FOR IMPROVEMENT Despite Gender Equality being a priority SDG for 53 per cent of
respondents in the 2020 survey, there is a disconnect between prioritization and action. Only 69 per cent of those that prioritize this SDG
have set targets, and only 43 per cent require a minimum of 30 per cent of women on their board. A higher percentage of respondents
have committed to pay equity (73%) and have sexual harassment policies (69%). Only 14 per cent have signed the CEO statement of
support for the Women’s Empowerment Principles, although 31 per cent say that they have made an alternative public commitment. At
37 per cent, it is a similar picture for companies take action by ensuring leaders are committed and held accountable for gender equality
and having policies in place to respect and support women. Only 42 per cent are providing diversity and inclusion training.
Target
setting (%)
Recognizing impact
on the SDGs (%)
Key highlights

56
5SUSTAINABLE
TRANSITION NEEDS:
SHIFTING GEARS
FOR 2030

57
SUSTAINABLE TRANSITION NEEDS: SHIFTING GEARS FOR 2030 CHAPTER 5
THE SYSTEMS
Incremental change by individual companies will not deliver the business contribution
needed to reach the Sustainable Development Goals (SDGs). Fundamental change
is needed at a system level — whether energy, finance, healthcare, transport, or
food. This is the premise of the research and seven systems were assessed for their
readiness to support delivery of the SDGs by 2030.
Through new questions in the 2020 UN Global Compact Annual Implementation
Survey and interviews with sustainability leaders, companies within the seven
systems below were questioned on their individual understanding, priorities and
approach to the SDGs. They were also asked how their sector, as a whole, was
prepared to shift gears in the Decade of Action. Specifically: does the sector
recognize the challenge of meeting the 17 SDGs? Is there a collective vision to
meet the Goals? And is there an agreed industry-wide approach to deliver the
vision? In this section we outline the system-by-system findings.
58 Energy, natural resources and basic materials
70 Industrial manufacturing
78 Food, beverage and consumer goods
86 Healthcare and life sciences
94 Mobility and transportation
102 Telecommunications and technology
110 Financial services

58
ENERGY, NATURAL RESOURCES
AND BASIC MATERIALS
As the resource base and energy provider for the global economy, this system faces
change on a massive scale in the coming decades. The system is central to the transition
to a zero-carbon future and its position as an engine of economic growth will need to
be aligned with meeting the Paris Agreement on Climate Change and the Sustainable
Development Goals. Sub-sectors within the system include:
1 International Resource Panel, 2019.
2 DNV GL Energy Transition Outlook 2019
X3
The planet’s resources are being
extracted three times faster than
in 1970, a period in which
population has only doubled1
2028
The world is forecast to
overshoot the 1.5°C carbon
budget in 2028 and the 2°C
carbon budget in 2049²
90%
Resource extraction and
processing cause over 90% of
global biodiversity loss and
water stress1
26%
Extraction and primary
processing of metals and other
minerals is responsible for 26%
of global carbon emissions¹
SCALE IMPACT
• Oil and gas
– Oil and gas producers
– Oil equipment, services and distribution
– Alternative energy
• Chemicals
– Commodity chemicals
– Specialty chemicals
• Basic resources
– Forestry and paper
– Industrial metals and mining
• Utilities
– Electricity
– Gas, water and multi-utilities

59
About the system
The system is intimately connected to the global
economy, closely following economic cycles,
and has a strong relationship to human and
societal development. It is also characterized by
significant environmental impacts.
The energy industry includes an energy mix
spanning from oil and gas to renewables sector.
The industry as a whole needs to transition
towards a zero-carbon, resilient future. For
example, the oil and gas industry provides
affordable energy, employment, fiscal revenues
and improved infrastructure in communities
around the world in the production phase alone
(IPIECA, 2018). Similarly, extraction and processing
of basic materials has been shown to support
GDP growth and create jobs in both developed
and developing economies (OECD, 2019).
The energy, natural resources and basic material
system’s economic and social benefits, labour
footprint and environmental consequences tie it
closely to most of the Sustainable Development
Goals (OECD, 2019).
The energy, natural resources and basic materials system supplies the raw materials and resources that
underpin all industries — from manufacturers of consumer and industrial products to those involved in
construction and infrastructure. Characterized by natural resource extraction and industrial processing,
it is a particularly wide-ranging system, covering oil, gas and renewable energy, utilities, basic
materials, chemicals and commodities.
Now the challenge is formulating where we want to go and where we
can go — using the SDGs as a frame. We have chosen those SDGs on
which we can have the most impact. How much impact will be down
to us judging technical feasibility and availability of resources. – BASF
OF GLOBAL EMISSIONS
ARE UNPRICED
According to the
Carbon Pricing
Dashboard (World
Bank, 2019), 57 carbon
-pricing initiatives have
been implemented
or are scheduled for
implementation, with
46 national jurisdictions
covered. In 2019, these
initiatives covered
20% of global GHG
emissions, leaving 80%
of global emissions
unpriced
80%

60
The challenge
Balancing progress and impact
Due to its inextricable links with economic
development, the system affects environmental
and social challenges. The energy, natural
resources and basic materials system needs to
resolve how to continue providing vital
resources and economic opportunity for a growing
global population, while minimizing its impact on
society and the environment. In the policy arena,
it will be a challenge to strike a balance between
sustaining economic growth and limiting the
environmental impacts of this system (OECD, 2019).
Combustion of fossil fuels extracted by the oil
and gas sector is responsible for more than 89
per cent of global carbon dioxide emissions
(Hmiel et al., 2020). Other industries in this
system are also significant energy users and
greenhouse gas (GHG) emitters. For example,
the chemicals sector is the largest industrial
consumer of oil and gas (IEA, 2020), steel
production emits 7–9 per cent of global GHG
emissions (World Steel Association, 2020) and
mining emits 4–7 per cent of GHGs (McKinsey,
2020). The transition to a zero-carbon economy
will fundamentally change the face of this system.
A renewable future?
The system, therefore, has equal scope to deliver
significant progress towards achieving the SDGs.
Baseline projections show non-fossil energy
sources are set to increase exponentially,
supporting universal access to affordable,
reliable and sustainable energy sources. In 2017,
19 per cent of the energy mix was from non-fossil
sources — this is expected to grow to 44 per cent
by 2050 (DNV GL, 2019).
Peak energy will be a turning point around 2030
as energy efficiency outpaces economic growth.
Electrification, powered by renewable sources, is
the biggest contributor to reduced energy intensity.
DNV GL’s Energy Transition Outlook predicts a
rapid rise in electrification, with solar and wind
providing most electricity by 2050. Half of all
passenger vehicle sales will be electric by 2032.
But the predicted energy transition will not bring
us in line with the ambitions of the Paris Agreement
and extraordinary policy action is needed to limit
global warming to well below 2°C. More information
on the energy transition can be found in the "In
Focus" feature on page 64.
DNV GL PREDICTS
A STAGGERING
GROWTH IN
ELECTRIFICATION,
with wind and solar
sources providing most
of that electricity by
2050. This future will
not, however, bring us in
line with the ambitions
of the Paris Agreement
WORLD PRIMARY ENERGY SUPPLY BY SOURCE
Historical data source: IEA WEB (2018)
World primary energy supply by source
Units: EJ/yr
FIGURE 4.3.1
1980 1990 2000 2010 2020 2030 2040 2050
0
100
400
500
600
300
200
700
Hydropower
Wind
Solar PV
Biomass
Solar thermal
Geothermal
Nuclear fuels
Natural gas
Oil
Coal
Source: DNV GL Energy Transition Outlook 2019. Historical data: IEA WEB, 2018
Growth that is
inclusive and
protective of
the planet is at
the heart of the
challenge that
we face.

61
Progress against the Ten Principles
Responses from the energy, natural resources
and basic materials system showed that, across
the Ten Principles, more than 90 per cent of
respondents have policies in place. This system
performs better than others in terms of
implementing action, especially relating to
environment and labour, however good practice
needs to be scaled to amplify impact on the SDGs.
The system performs particularly well on
conducting lifecycle assessments (54% vs 31%
overall) and environmental risk and impact
assessments, both of which are over 20 per cent
above average for all respondents. Overall, the
system is also ahead on integrating environment
into strategies and operations (22% vs 14%),
climate change (49% vs 29%) and water manage-
ment (25% vs 23%).
Interviews from sectors such as chemicals report
that the UN Global Compact has helped
businesses to understand complex policies
relating to human rights.
"When it comes to human rights policy, we have
taken the guidance of the UN Global Compact to
help us identify the elements to take forward and
implement" (Tata Chemicals).
How is the system performing?The UN Global
Compact
provides a series
of networks and
a meaningful
framework
to help
companies
achieve the
SDGs. They
have been
producing
best practice
guidelines on a
range of topics
for years.
–Equinor
Policy
Disclosure of human rights policies and practices
Policy
Frameworks for industrial relations and collective bargaining
Multi-stakeholder dialogue
Avoid exclusion of union members from employment
Policy
Employee training
Water footprinting
Life-cycle assessment and costing
Advocating more ambitious policies
Policy
Employee training
Terminate supplier contracts if corruption occurs
Supply chain/subcontracting arrangements
Engage in collective action
POLICY COMMITMENT AND ACTIONS TO EMBED THE TEN PRINCIPLES
IN THE ENERGY, NATURAL RESOURCES AND BASIC MATERIALS SYSTEMOverall responses
System responses
Human rights:
Labour:
Environment:
Anti-corruption:
% 0 10 20 30 40 50 60 70 80 90 100

62
SDGs prioritized
by companies in
the system
Targets set to
progress the
SDGs
Products and
services to support
the SDGs
Business action aligned with the SDGs,
but ambition not raised
A large number of businesses (85%) within the
system are currently taking action on the SDGs.
Some of the interview data suggests that although
initiatives and action are being aligned with the
SDGs, the SDGs are not provoking higher
ambition within companies, "A while ago we
announced an investment in wood-based
biochemicals to replace oil-based glycols. This
is in line with our strategic direction towards
the future beyond fossils and is thus obviously
related to SDG 13" (UPM).
Prioritizing the SDGs
Three of the most prioritized SDGs are ones where
businesses recognize their potential for positive
impact. The energy, natural resources and basic
materials system does a better job than most other
systems of recognizing its negative impact on
the SDGs, although the level of recognition is
still relatively low. Only 6 per cent of businesses
in the system have a carbon emissions reduction
target approved by the Science Based Targets
initiative. This is the only system where Goal 13
ranked as the number one priority goal,
reflecting the closeness of the system to the
climate challenge.
Target setting above average, but scale needed
Target setting for priority SDGs is generally higher
than in other sectors and over 60 per cent of
respondents set targets. Similarly, other than Goal
8, products and services supporting the SDGs
are also widespread. Despite this positive action,
43 per cent of the system's respondents stated
that progress was not moving fast enough to
deliver the SDGs.
40%
HOW COMPANIES IN THE ENERGY, NATURAL RESOURCES AND BASIC
MATERIALS SYSTEM ARE APPROACHING THE SDGS
Higher priority for negative impact.
Goal 13 is the highest priority goal; it is
also one where respondents somewhat
recognize their negative impacts
Need for stretching targets.
Although climate targets are common,
only 6% have set an approved Science
Based Target
Products to support the SDGs. Many
companies are focusing on products and
services to support the SDGs, although
this is lagging behind for Goal 8
of the system
reported that impact
assessments of
their sector on the
SDGs have been
completed and
understood
Individual business action on the SDGs
84% 70% 81% 66% 69%
70%89% 47% 83% 83%
76%82% 79%87%90%
#1 #2 #3 #4 #5
15% 14% 11%
Companies overwhelmingly recognize their positive
impact on the SDGs: percentage of companies reporting
a "significant" or "somewhat significant" positive impact
on the SDGs
There is some acknowledgment of
negative impacts: percentage of
companies reporting a "significant" or
"somewhat significant" negative impact

63
6%
Only 6 per cent of
businesses in the system
currently have a carbon
emissions reduction
target approved by the
Science Based Targets
initiative
Recognize the challenge
A vision for transition
Agreed approach to deliver
% 0 10 20 30 40 50 60 70 80 90 100
59%
49%
49%
60%
Percentage of respondents
that say this SDG is a priority
for their whole system:
HOW READY IS THIS SYSTEM TO DELIVER
IN THE DECADE OF ACTION?
System view on delivering change
Survey respondents delivered insights into
how well prepared they thought the energy,
natural resources and basic materials system
is to deliver the SDGs in the coming Decade of
Action.
Alignment on level of challenge and ambition
required, but action is lagging behind
There is some alignment between the SDGs
individual companies are prioritizing and those
that respondents say are a priority for their
sector as a whole. In particular, Goal 13: Climate
Action and Goal 7: Affordable and Clean Energy
were highlighted as priorities for the sector. For
Goal 13, 74 per cent of respondents stated the
sector recognizes the climate challenge and 69
per cent that there is a vision for the transition
needed. The scores were only slightly lower for
Goal 7, with 67 per cent saying the challenge is
recognized and 63 per cent that there is a vision
for transition. This is good alignment given the
links between affordable and clean energy and
climate action within this system.
Significant way to go in coordinating
systemic change
In each of the priority SDGs for the system, more
than, or close to, 60 per cent of respondents say
the challenge is recognized and there is a vision
for transition. The scores for an agreed approach
to deliver the vision are consistently lower, showing
there is a significant way to go in coordinating
systemic change. "Most in the industry do
recognize the level of challenge and the level
of ambition, but not all are concerned about
impacts" (UPM).
DECADEOFACTION
2020
2030
Recognize
the challenge
A vision
for transition
Agreed approach
to deliver
1
2
3

64
IN FOCUS: The energy system
Rapid transition is forecast, but progress not
meeting the Paris Agreement ambition
DNV GL’s Energy Transition Outlook predicts a
rapid transition in the energy sector in the next
30 years as the dual challenges of doubling
energy demand and transition to a low-carbon
economy play out globally. By mid-century,
almost half the global energy mix (44%)
is forecast to come from non-fossil sources, more
than doubling from just 19 per cent in 2017.
A staggering growth in electrification is also
predicted — particularly within transport,
manufacturing and buildings — enabling the
journey to a low-carbon future. Electricity demand
is expected to double by 2050, with wind and
solar providing most of this power. But despite
these advances, projections show that the
energy sector will not meet the ambitions of the
Paris Agreement.
The Energy Transition Outlook forecasts that
although greenhouse gas emissions from energy
use will peak in 2025, they will be far off net zero
by 2050. The forecast concludes that limiting
global warming to well below 2°C needs
extraordinary action — advancing energy efficiency,
renewables and carbon capture well beyond the
"best estimate" future scenario.
The COVID-19 pandemic will cause significant
disruption to energy demand patterns in the
short term. The view of DNV GL’s Energy Transition
Outlook team is that this is unlikely to alter the
nature or pace of the longer-term energy
transition. It will, however, leave Governments
and industry with tough policy choices. In the
short term, Governments will need to prioritize
between cheap fossil fuel for economic and
job recovery, or direct stimulus packages and
investment towards renewable energy.
ENERGY SECTOR
COMPANIES THAT
HAVE SET, OR
COMMITTED TO SET,
A SCIENCE BASED
TARGET (SBT):
Electric and
energy-related:
- 20 committed
- 10 set "2C" target
- 5 set "Well below
2C" target
- 0 set "1.5C" target
Oil and gas:
- 3 committed to setting
a Science Based Target
- 0 with targets in place
Gas utilities:
- 3 committed to setting
a Science Based Target
- 0 with targets in place
out of 876 total
companies with a
commitment to
or existing Science
Based Targets
Iberdrola is an electric utility company. It is one
of the largest wind power producers worldwide
and a major solar power operator, with 34,000
employees around the world.
Twenty years ago, Iberdrola changed its business
model to work towards a more sustainable
energy model. In line with its commitment to
decarbonization, Iberdrola closed 15 carbon and
fuel plants and has set Science Based Targets
to reduce its emissions. It has committed to
reducing CO2
intensity emissions by 30 per cent by
2020 compared to 2007 levels, lower emissions by
50 per cent by 2030 and to be carbon neutral by
2050. In support of Goal 7, Iberdrola has
also committed by 2030 to bring electricity to
16 million people who lack energy access.
In order to achieve these goals, Iberdrola has
made management accountable by linking the
remuneration and bonus of the highest management
to specific objectives in support of its priority
Goals 7 and 13. Iberdrola also revised its Corporate
Governance System to reflect this and integrate the
SDGs as part of the corporate philosophy.
In response to the COVID-19 pandemic, Iberdrola
has added its voice to the calls for a ‘Green recovery’.
This is the idea that the Government stimulus needed
to recover from the pandemic should encourage
a transition that is climate-neutral, resilient,
sustainable and inclusive. Iberdrola has committed
to accelerating its investments in renewable energies,
digitalization and electrical mobility to boost
economic and employment recovery.
CASE STUDY: LINKING IBERDROLA’S BUSINESS STRATEGY TO THE
SUSTAINABLE DEVELOPMENT GOALS
Iberdrola has focused its efforts on the two SDGs where they can have most impact: access to electricity
(Goal 7) and the fight against climate change (Goal 13). To ensure progress, the goals have been added
to their business strategy.
Iberdrola is amongst
170 companies urging
Governments to lead
the way for a net
zero recovery from
COVID-19
net
0

65
A)
High level of
awareness of
change required
Good knowledge
of change required
Awareness of
change required
Minimal
understanding
B)
No Yes
A) Level of awareness on the SDGs at Board and
Leadership team levels. UN Global Compact participants
within the energy sector (oil and gas, utilities, alternative
energy companies) reported high levels of awareness of
the SDGs and good recognition of the change required to
deliver them by 2030.
B) Percentage of survey respondents taking action
on the SDGs. Matching this awareness, 87 per cent state
they are taking action to address the SDGs. Progress is
also being monitored at the highest level, with more than
half (57%) stating that sustainability is regularly addressed
at board meetings.
HOW ARE UN GLOBAL COMPACT PARTICIPANTS CONTRIBUTING
TO THE ENERGY TRANSITION?
13%
87%
14% 18%
39% 29%
A B
#1 #2 #3 #4 #5
THE ENERGY SECTOR IS PRIORITIZING ITS MOST MATERIAL ASPECTS,
HOWEVER A MORE COMPREHENSIVE PLAN TO CONTRIBUTE TO THE
ENERGY TRANSITION IS MISSING...
Respondents in the
energy sector are
prioritizing their most
material impacts, with
Goal 7: Affordable and
Clean Energy, Goal: 13
Climate Action and
Goal 8: Decent Work and
Economic Growth
among the most highly
prioritized SDGs
Absolute target
Intensity target
Both Absolute and
Intensity targets
None
Not sure
PERCENTAGE OF COMPANIES
THAT HAVE SET TARGETS TO
REDUCE EMISSIONS
Within the oil and gas and utilities sectors, only 21 per
cent have not yet set an emission reduction target. The
majority of companies (57%) have set either an absolute or
intensity target. Of these companies, 69 per cent claimed
their target is aligned with science, however these targets
have not yet been approved by the Science Based Targets
initiative (SBTi). None of the companies currently have an
approved Science Based Target within these sectors.
21%
21%
25%
7%
25%

66
• Cost on a diverging path
Solar and wind are reaching cost and
performance parity, becoming the cheapest
electricity options in many regions. Global
markets are accelerating the spread of new
technologies, creating a self-reinforcing cycle
of falling costs through further deployment.
‘Plus-storage’ projects are also reaching
parity as battery costs plunge.
• Influential sub-national governments
and corporations
Cities are procurement powerhouses for
projects that support renewable-energy-
powered transport and promote renewables-
based heating and cooling and energy
storage systems. Global networks, such as
the C40, help with diffusion of best practices.
www.c40.org
• Energy security
Renewable energy and battery technologies
strengthen local energy security by exploiting
distributed, domestic resources. Renewables
diversify the energy mix and enable
substitution of fossil-energy imports.
• New markets and business models
New service-based models, enabled by
digital technologies, are growing. Examples
include energy service companies that
are providing services to reduce energy
consumption rather than units of delivered
energy; urban 'mobility-as-a-service’ offerings,
including electric cars, bicycles and scooters;
pay-as-you-go companies are offering access
to energy services in areas with poor access;
and platforms for peer-to-peer (P2P)
trading and flexible services, which enable
matchmaking and localized energy trading.
• Investors eyeing climate risk
The cost of climate risk is moving up
the financial world’s agenda.
The recommendations of the Financial
Stability Board’s Taskforce on Climate-
related Financial Disclosures (TCFD) will
mainstream the need to provide transparent
market information on the financial impacts
of physical climate-related risks and from
low-carbon transition. Collectively, supporters
of the TCFD manage almost US$ 110 trillion
in assets (Carney, 2019). Added to this,
investor appetite for fossil fuels is waning,
based on high capital requirements, weak
or potentially risky returns and the fear of
stranded assets — issues brought into sharp
focus by the COVID-19 pandemic. Post-
pandemic, it is likely the cost of capital
for fossil fuel companies will rise and the
availability of plentiful, cheap capital will
continue for cleaner technologies.
• Technological progress
Embedding digital technology deep in
industrial and energy systems supports the
coordination of energy supply and demand
sectors in real time. This enables new ways
to integrate renewables into the energy
system and to optimize resources across
borders and energy carriers.
DRIVERS
IN FOCUS: the transformation
of the energy system
Global energy use
will peak by 2030,
yet emissions will not
reduce enough to stay
within 1.5C
2030

67
• Subsidies and lack of externality pricing
A political blind spot is that fossil fuel
subsidies outmatch support for renewables
by a ratio of four to one (Irena et al., 2018).
An estimate of implied global fossil fuel
support is US$ 5.2 trillion, or 6.5 per cent
of world GDP (IMF, 2019a). Carbon prices
will remain modest, with regional prices
varying between US$ 25 and US$ 60 per
tonne CO2
in 2050. Subsidies for renewable
energy will decline as prices become
competitive.
• Conflicting priorities
In developing coal-based power generation
to improve energy access (Goal 7: Affordable
and Clean Energy), nations accelerate climate
change, air pollution and acidification of
oceans. This counteracts other SDGs, in-
cluding Goal 3: Good Health and Well-being
Goal 13: Climate Action, and Goal 14: Life
Below Water. The decline in international
cooperation, along with the fading promise
of US$ 100 billion-a-year in climate finance
for developing regions, is hindering climate-
compatible developments.
• Extraordinary policy uncertainty
Although renewable energy technologies are
becoming less dependent on Government
support, decarbonization projects face
continued transition risks related to policy
making and implementation.
• Lobbying for status quo
Forbes (2019) reports that the world's
five largest publicly-owned oil and gas
companies spend approximately US$ 200m
annually lobbying to control, delay,
or block climate-motivated policies.
DNV GL’S ENERGY TRANSITION OUTLOOK
predicts a rapid transition unfolding within a generation:
by mid-century the energy mix will be split almost equally
between fossil and non-fossil sources.
THE ENERGY TRANSITION IS AT A CRITICAL AND COMPLEX JUNCTURE
OF OPPOSING FORCES — POLITICAL, ECONOMIC AND TECHNOLOGICAL.
THE LIST BELOW PRESENTS SOME OF THE STRONGEST DRIVERS OF,
AND BIGGEST BARRIERS TO, THE TRANSITION.
BARRIERS

68
1. Standardized metrics informed by science
Standardized metrics, especially those
informed by science, are not currently
embraced and and businesses are reporting
progress on the SDGs against multiple
frameworks. Like others, a key challenge for
this system is the fragmentation of reporting
using different frameworks. For example, a
major chemicals company stated that its
"strategy and target-setting use multiple
frameworks — the six capitals model, Ten
Principles, CDP, SBTi etc. Our reporting is
informed by lots of frameworks."
Interviewees suggested that Science Based
Targets can give the SDGs rigor — at least for
measuring and reporting impacts for SDGs
relating to the environment. Yet only six per
cent of the energy, natural resources and basic
materials system have adopted a target
initiative. Meanwhile, 49 per cent report they
consider their targets to be aligned with
science, but they are not yet approved.
"For us, understanding what science is advising
has been very helpful to frame our ambition —
when it comes to environment, human rights,
renewable and clean energy and a lot of
targets related to decent work conditions and
safety" (Equinor).
2. Little focus on short-term performance
Leadership within companies is essential,
but company leadership within sectors is also
important. It can set the pace, encouraging
others to set ambitious targets and play
a role in the sustainable transition of a sector
or wider system. While relevant and necessary,
focusing on long-term ambition has been
identified by some as a distraction from
delivering change in the short- to medium-term,
"There is too much focus on announcements
and ambitions, and not enough focus on
delivery and what is happening on the ground"
(Equinor).

3. Digitalization
Society and industry at large are on the cusp
of a new digital era. Businesses must improve
connectivity across the value chain, embracing
digitalization to increase the accessibility and
sustainability of energy and natural resource
systems and helping to improve security and
privacy. Those that do not adopt new practices
and link the value chain to digital
will fall behind.
"Fifteen years ago we were solely a paper
company and one of the biggest in the industry.
We still are, but already at that time saw the
world is going digital and we need to change
our business strategy quickly" (UPM).
4. Multi-stakeholder collaboration
System-level change cannot be achieved by
companies and organizations acting alone.
As value chains become more complex,
companies must work with others to ensure
that the transition to meet the 2030 Agenda
targets is accelerated. Yet, only 52 per cent
of respondents in the system reported they
take part in industry-specific collaboration to
advance the SDGs.
"Bringing industry together in a pre-competitive
space to set sustainability commitments and
support delivery against them can be incredibly
effective. Collaboration, especially with
stakeholders, is key to strengthening the
sector’s environmental and social performance"
(ICMM).
Sustainable transition needs
Multi-
stakeholder
collaboration
across industry
value chains
is key to
delivering the
transformations
needed. — BASF

69
UPM is a biofuel, paper and pulp company
headquartered in Finland. Its products rely
on the sustainable management of forests. Well-
managed forests play a key role in protecting
carbon and water ecosystems.
To ensure that the forests they manage are not
only regenerated, but retain natural biodiversity,
the company has developed key biodiversity
indicators and measures based on a comparison
of natural and commercial forests. UPM conducted
a gap analysis identifying the key differences
between these two forest types. The analysis was
used to set targets and create an action plan to
increase biodiversity in its forests.
UPM has set eight different indicators to monitor
and each has a corresponding metric. Surveys
show that the majority of trees in the company's
forests are pine trees (62%). One of the metrics
aims to increase the share of broadleaved trees
from 11%. The company also runs a project to
improve the natural habitats of certain species
such as ospreys and other birds of prey.
External assessments are conducted to monitor
the indicators and note any changes in forest
structure. The assessments are used to evaluate
the impact of logging and land use and ensure
that the company's forestry management targets
are adhered to.
CASE STUDY: UPM’S 2030 TARGETS AIM TO ENHANCE BIODIVERSITY
SUSTAINABLE
DEVELOPMENT
GOAL 15
Protect, restore and
promote sustainable
use of terrestrial
ecosystems, sustainably
manage forests, combat
desertification and
halt and reverse land
degradation and halt
biodiversity loss
The forest products company UPM has set a target to enhance biodiversity in company-owned forests
in Finland while safeguarding the capacity of the land to produce wood.
GOOD PRACTICE
The ResponsibleSteelTM
Standard, launched in
2020, is the first multi-stakeholder framework for
responsible, low-carbon steel making.
Steel is a vital material for growth in new energy
systems, transportation and the cities of the
future — but the steel industry is also responsible
for seven per cent of global greenhouse gas
emissions. The Standard requires certified
members to sign up to the Paris Agreement,
and to "have a credible and documented plan
for the achievement of its corporate level GHG
emissions target(s)". This is a positive step forward
to achieve accountability for actions at an
industry level.

70
INDUSTRIAL
MANUFACTURING
Turning raw materials into products for businesses and consumers alike, this system is
the industrial heartbeat of the world economy. It delivers more than US$ 13 trillion
in output annually and employs almost a quarter of the world's workers.
The industrial manufacturing system includes the following systems:
• Construction materials
• Aerospace and defence
• General industrials
• Electronic and electrical equipment
• Industrial engineering
• Industrial transportation
• Support services
1 UNIDO, 2020
2 ILO, ILOSTAT database
3 World Resources Institute, 2020
US$ 13.5 TRILLION
World manufacturing
production in 20181
23% OF 3.3 BILLION
Employed globally in
manufacturing in 20192
Countries with 17% of the
global population account for¹ 55%
of manufacturing output
Industry responsible
for 19% of freshwater
withdrawal globally³
SCALE IMPACT

71
About the system
Industrial manufacturing is concentrated in
developed economies, with China, the USA,
Japan and the EU having the highest proportion
of industrial facilities and output. In 2017,
developing and least developed countries
accounted for only 2.8 per cent and 0.8 per cent
of global manufacturing production respectively
(UNIDO, 2020).
Almost a quarter of the world’s working population
is employed in manufacturing and this system
has enormous influence over many of the SDGs.
On the social side, industrial manufacturing
is reliant on healthy and skilled workforces to
design, structure, plan and manage production.
Environmentally, the raw materials, energy and
water used in production mean the system has a
significant footprint on natural resources and our
environment. Many high-impact basic materials,
such as steel, cement and chemicals, are direct
feedstocks for manufacturing.
The human and environmental capital used in
industrial manufacturing, along with the processes
and technologies utilized, have the potential
to influence nearly all the SDGs. Directly and
indirectly, through its influence on societies and
other business sectors, industrial manufacturing
will a play a huge role in how we transform our
economies over the next decade.
Industrial products are the backbone of society,
providing everything from the smartphone in your
pocket to the materials used to build your home.
Using labour, machines, tools, chemicals and biological processing, the industrial manufacturing system
transforms basic materials into products on a vast scale. Industrial products are the backbone of society,
providing everything from the smartphone in your pocket to the materials used to build your home.
Our communities, cities and infrastructure are reliant on industrial engineering for their
construction and servicing.
Almost a quarter of
the world's working
population is employed
in manufacturing
and this system has
enormous influence on
many of the SDGs
of businesses within the
UN Global Compact
are from industrial
manufacturing sectors,
representing the largest
cohort
34%

72
The challenge
Uneven benefit
In development terms, industrialization is
acknowledged as a key driver of economic
growth and sustainable development (UNIDO,
2015). It is essential for delivering technological
progress and transformation and expanding
human capabilities through job creation, education
and skills development. It also has the power
to improve quality of life by producing goods
essential for nutrition, health care and other
human needs (UNIDO, 2020).
Despite the steady trend of industrial manufacturing
relocating from industrialized nations to the
developing world, the pace of change and
delivery of benefits from industrialization is
unevenly distributed across the globe.
Manufacturing Value Added (MVA) per capita — a
key indicator of manufacturing output — is closely
associated with a wide range of human development
indicators. The highest rates of MVA are created in
North America, Europe and Japan, while
developing and emerging economies do not
benefit to the same level, as shown below
(UNIDO, 2020).
Yet, it is clear that the impact of industrial
manufacturing in enhancing human development,
and therefore supporting the SDGs, is not evenly
distributed. They are not reaching developing
countries where economic and social challenges
are often greatest. A key challenge, therefore,
is to ensure that the benefits of industrial
development reach all parts of the world and
the people who need it most.
Significant footprint
As a significant user of raw materials — including
finite earth minerals, chemicals, energy and water
— industrial manufacturing is associated with
negative environmental impacts, such as pollution,
climate change, habitat destruction and over-
exploitation of natural resources.
For example, steel, cement and chemicals —
key feedstocks for industrial manufacturing
— are the top three sectors for greenhouse gas
emissions. Approximately 8 per cent of global
emissions come from cement, 7–9 per cent from
steel and 7 per cent from industrial chemicals
(MIT, 2019; World Steel Association, 2020;
(Global Efficiency Alliance, 2018).
At the opposite end of the spectrum, industrial
manufacturing can address environmental
challenges through innovating at scale, including
step-changes in industrial process efficiency
and enabling the shift to renewable energy and
electrification.
Manufacturing Value
Added (MVA) per
capita across different
countries (in USD)
217
888
1,561
3,065
5,157
44,349
The pace of change
and delivery of benefits
from industrialization
is unevenly distributed
across the globe

73
More than 90 per cent of survey respondents
in the industrial manufacturing system have
adopted policies relating to human rights,
labour, environment and anti-corruption. In each
area, the adoption of policies is greater in this
system than in all the other systems combined.
Interviews point to the breadth of the Ten
Principles and how they are "most important
for driving sustainable policies and practices."
However, practical action to deliver on policy
commitments is lagging behind in all areas, even
for the best scoring actions such as employee
training. Comparing action by participants in
the system with all Global Compact participants,
specific areas need greater focus. These include
monitoring human rights performance (24% vs
30% for all participants); monitoring and evaluating
environmental performance (39% versus 44%); and
water footprinting (21% vs 32% overall).
How is the system performing?
IN THE INDUSTRIAL MANUFACTURING SYSTEMOverall responses
System responses
Human rights:
Labour:
Environment:
Anti-corruption:
% 0 10 20 30 40 50 60 70 80 90 100
Policy
Employee training
Policy
Working conditions and terms of employment
Vocational training and counseling
Policy
Environmental management systems
Public commitments to environmental actions
Assessing impact and taking action for a healthy ocean
Policy
Sanction system for employee corruption breaches
Record instances of corruption
Country-level reporting on profits, taxes and subsidies
21%
Only 21% of companies
within the Industrial
manufacturing system
conduct water footprint
analysis vs. 32% overall,
despite strong impacts of
the system on freshwater
withdrawal

74
Growing action
Since the launch of the SDGs five years ago,
UN Global Compact participants are increasingly
taking action. In the industrial manufacturing
system, 83 per cent of companies are now working
to support the SDGs, up from 60 per cent in 2015.
Increasing prioritization of the SDGs
Awareness of the SDGs is high in this system.
Although companies overwhelmingly report
positive impacts across the 17 SDGs,there is a lack
of recognition of potential negative impacts.
There is, however, alignment between where the
system sees scope for positive contributions and
the SDGs most often prioritized by companies.
As a result, a high percentage of companies are
taking action on the priority SDGs, with 86 per
cent reporting they are developing products
and services that support the SDGs.
Scale and ambition are lagging behind
Despite the prioritization, target setting varies
for the priority SDGs. It is important to recognize
interlinkages within target setting. For example,
we cannot deliver on Goal 13: Climate Action
(85% of surveyed companies reporting targets
on), without suitable targets for Goal 9: Industry,
Innovation and Infrastructure (with 57% reporting
targets on).
In many cases, corporate targets lack the level
of ambition needed to deliver the SDGs by 2030.
For example, 36 per cent of companies in this
sector have committed to setting Science Based
Targets, but so far 23 per cent have actually had
these approved by the Science Based Target
initiative. Meanwhile 37 per cent have either
committed to setting or already set a net zero
emissions target for 2050. Positive progress is on its
way, and we need more companies to follow suit.
83%
2020
60%
2015
HOW COMPANIES IN THE INDUSTRIAL MANUFACTURING
SYSTEM ARE APPROACHING THE SDGs
Percentage of companies
taking action on the
SDGs in industrial
manufacturing
Prioritizing positive impact
SDGs where companies say they have
the most positive impact are the most
prioritised
Variable target setting
Only 23% of companies have an approved Science
Based Target
High levels of action or engagement
Many companies are developing products and
services to support the SDGs
88%92% 87%96%100%
#1 #2 #3 #4 #5
8%8% 7% 7%
on the SDGs
But very few acknowledge negative impacts:
percentage of companies reporting a
"significant" or "somewhat significant"
negative impact
57% 58% 53% 74% 85%
88% 62% 63% 84% 76%
Targets set to
progress the
SDGs
Products and
services to support
the SDGs
SDGs prioritized
by companies in
the system

75
System view on delivering changeOur industry
(aluminium)
has developed
a low-carbon
transition
roadmap to
2050. Writing
up a roadmap
to 2050 is not
the most
difficult . . .
execution is
difficult.
— Norsk Hydro
Survey respondents delivered insight into
how well prepared they thought the industrial
manufacturing system is to deliver change that
will help to achieve the SDGs in the coming
Decade of Action.
Greater recognition and action required
For industrial manufacturing, the challenge
posed by the system's priority SDGs is not fully
recognized. Goal 13: Climate Action leads the
way on awareness, with more than 70 per cent
stating "all" or "most" of the industry recognizes
the climate challenge.
Enhanced social focus
Compared to economic and some environmental
SDGs, socially focused SDGs are less highly
prioritized within the industrial manufacturing
system. This is despite employing a quarter of the
world’s workforce and having significant impact
on areas such as human rights and inequality.
Collective vision
Only around half of participants believe there
is a collective vision for the transition needed
in the coming decade to achieve the system's
prioritized SDGs. This is surprising for Goal 13:
Climate Action, which is the SDG where the
challenge is most widely acknowledged.
2020
2030
Recognize
the challenge
A vision
for transition
Agreed approach
to deliver
1
2
3
49%
49%
48%
53%
% 0 10 20 30 40 50 60 70 80 90 100
DECADEOFACTION

76
CREATING A SUPPORTIVE FOUNDATION
FOR TRANSITION
1. Metrics
Standardized metrics to track collective action
and qualify progress towards the SDGs are
required. This will help guide action, increase
scale and enhance performance. Only 17 per
cent of survey respondents "agree" or "strongly
agree" that there is a clear set of standardized
metrics to track the system's collective impact
on the SDGs. This is one reason why the level
of engagement on the SDGs by the system as
a whole has been slow. Country-level metrics
could also help companies understand how
to deliver the most impact within their
organizational footprint.
2. Enhancing collaboration,
reducing market barriers
At a system level, collaboration holds the key
to success at scale. About 42 per cent of survey
respondents "agree" or "strongly agree" that
stakeholder collaboration across the industry’s
value chain is delivering solutions for the
priority SDGs. Yet 36 per cent "agree" or
"strongly agree" that competition and current
market conditions make it difficult to collaborate
with industry peers.
"Our more than 500 partnerships and strategic
alliances worldwide have proven a key success
factor in multiplying our positive impact on
society and in the creation of sustainable
communities" (CEMEX).
4 Increased consumer and client demand
The level of demand by consumers and clients
for green products, practices and services is
weak. Interviewees call for a greater market
pull if businesses are to act and offer sustainable
alternatives.
"It is time for the next decade; we need much
more focus on consumer demand. We need
to stimulate consumers to ask for sustainable
products" (Norsk Hydro).
5. Bold and visionary leadership
Meaningful business action on the SDGs
requires disruptive leadership. Companies feel
they have most positive impact when leaders
embrace innovative solutions (e.g. using
artificial intelligence, automation, digitalization,
new leasing and service business models).
"Disruptive innovation is required and industry
leadership to scale and speed up change."
6. Advocacy and transparency
A global-local compact to deliver the SDGs
requires greater advocacy and transparency
to promote action and to disclose progress
on them. Expressing the benefits of acting on
the SDGs can help those involved relate to the
potential long-term value to be gained from a
sustainable transition,including how it can support
their own needs and meet specific targets.
"Business cases and networking, and
understanding what is happening in the
outside world is valuable to us."
KEY OPPORTUNITIES
FOR INDUSTRIAL
MANUFACTURING TO
SHIFT GEAR FOR 2030
• Circular economy
models across
industries: scaling
up of waste as value
models
• Electrification of
industrial processes
(e.g. zero emission
hydrogen steel-
making)
• Digital revolution,
Artificial Intelligence
(AI) and automation
are transforming
manufacturing
• Fairly sharing the
costs of transition
Businesses in the industrial manufacturing system must urgently accelerate progress on the SDGs.
To do this, core pillars that can advance positive trends and facilitate new directions must be established.
Changes in public policy and the allocation of capital are also required, especially where the costs of
transition are high and markets fail to incentivise positive action towards the SDGs. At the company level,
there are clear opportunities to provide products and services that deliver positive change, especially if
circular business models are embraced. Brave and disruptive leadership is needed to deliver these shifts.

77
CEMEX’s purpose is
to build a better future
by promoting
sustainability and
resiliency in cities and
communities, thus
improve the quality of
life and well-being of
society
These five goals are Goal 8: Decent Work and
Economic Growth; Goal 9: Industry, Innovation
and Infrastructure; Goal 13: Climate Action;
Goal 15: Life on Land; and Goal 11: Sustainable
Cities and Communities. CEMEX devised a set of
internal output indicators in order to keep track
of contributions to selected targets.
CEMEX has named climate change as a particular
priority. As a result, they have reduced net specific
CO2
emissions by more than 22% compared to
their 1990 baseline; sourced 30% of the cement
operations’ total electricity consumption from
renewable sources of energy; and reached an
alternative fuel substitution rate of 28%.
In order to step up their impact, CEMEX recently
defined a more ambitious Climate Action Strategy
and established a new 2030 target to reduce
net specific CO2
emissions by 35% compared to
their 1990 baseline. The new target is aligned
with the International Energy Agency’s roadmap
to reducing CO2
emis sions and what is expected
from the cement industry in order to contribute
to the Paris Agreement.
As a founding member of the Global Cement
and Concrete Association, CEMEX actively works
to rally the industry to set ambitious goals. They
are also active participants of the UN Global
Compact local network in Mexico and collaborate
in pursuance of the SDGs.
CEMEX is headquartered in Mexico and produces building materials such as concrete, cement and
aggregates globally. They have selected five priority SDGs to work towards that are directly related
to their company’s impacts, risks and opportunities.
BARRIERS AND ENABLERS
• Disruptive leadership and innovation
Work is going on in terms of innovation and
transformation, but it is not disruptive enough; visionary
leaders who drive disruption and embrace innovation
play can help scale action. "Different perspectives and
inclusive thinking are key drivers for disruptive
innovation" (CEMEX)
• Perceived value of change
Solutions support the recipient’s hierarchy of needs
• Public policy and regulation
To incentivize businesses to act, the business case must
be built. Progressive regulation is key in enabling a level
playing field in the industrial manufacturing system
• Connectivity and cooperation
Networks in place that promote multi-stakeholder
cooperation, from sharing information and establishing
new partnerships to sharing investment risks can
help drive transformation. "Multi-stakeholder
collaboration across industry value chains is key
to delivering the transformations needed" (BASF)
• Political or economic systems
Political and economic systems are not currently set
up to support action on the SDGs. A conducive policy
environment is needed that supports clean, socially
inclusive and healthy industry processes — and
disincentivizes those that are not
• Green finance
Financing, such as green bonds and tax subsidies, must
be available to stimulate investment
• Balanced communication
A better balance between the negative and positive
impacts of business on the environment and society
must be communicated
• Management and leadership
Lack of CEO and senior commitment impacts the
business case. "We need to have more leadership in
the industry"
BARRIERS ENABLERS
CASE STUDY: INTEGRATING SDGs INTO BUSINESS STRATEGY

78
1 UNECE, 2018
2 Allied Market Research, 2019
FOOD, BEVERAGE AND
CONSUMER GOODS
Responsible for feeding and clothing the world and providing everyday products for
cleaning, washing, entertainment and leisure, this system touches on the life of every
person on the planet. With a huge supply chain and high labour intensity, the system
comes with a significant environmental and social footprint. The food, beverage and
consumer goods system includes the following systems:
• Beverages
• Food production
• Household goods and home construction
• Leisure goods
• Personal goods (clothing, accessories, footwear and personal products)
US$ 15.4 TRILLION
estimated size of the global FMCG
market by 2025, dominated by
food and beverage²
1 IN 6
people worldwide employed in
the fashion industry alone. 80% of
the labour force are women¹
820 MILLION
Seafood can nourish a growing
world population, including
820 million people who are
food insecure today
20%
At the sector level, apparel is
responsible for 20% of global water use
and 10% of global carbon emissions¹
SCALE IMPACT

79
Source: WWF Living Planet Report, 2018
About the system
Beyond products and services, the value chain
associated with this system provides employment
and economic opportunities for billions of
people worldwide. The system’s composition
means it has a crucial role in supporting many
of the SDGs, including moving the most vulner-
able out of extreme poverty and hunger and
stewardship of the world’s natural resources.
However, with a high concentration of labour
intensive, low-skilled jobs, there are issues to
manage linked to labour rights, workplace
standards and human rights. It also relies heavily
on global biodiversity and ecosystem services to
sustain the supply of raw materials and resources
on which it depends. For example, agriculture —
which makes up a large proportion of this system
— employs some two billion people worldwide
(WRI, 2019a) and is responsible for around 70
per cent of global fresh-water consumption and
25 per cent of global greenhouse gas emissions
(GHG) worldwide (Daly, 2020).
This system is, therefore, one of both immense
opportunities and immense challenges.
The food, beverage and consumer goods system creates a vast array of products and services, from
those essential for human survival to those required for basic standards of comfort, cleanliness and
quality of life.
SINCE 1950…
20%
of the Amazon rainforest
has been cleared to mainly
make way for agriculture
60%
decline in vertebrate
species populations
worldwide
6 billion
tonnes of fish and seafood
have been extracted from
the world's oceans
While substantial
environmental impacts
from food occur in the
production phase
(agriculture and food
processing), households
influence these impacts
through their dietary
choices and habits.
This consequently
affects the environment
through food-related
energy consumption
and waste generation
(United Nations, 2020)

80
The challenge
Intense pressure on planetary resources
As demand for food and consumer goods has
risen in recent decades, the planetary resources
on which this system heavily relies have come
under significant pressure. The long-term viability
of the system is vulnerable if the resources it
relies on continue to be depleted at current rates
— a challenge that will only be exacerbated with
population growth and economic development.
…and the pressure continues to grow
The added pressure of a growing population —
forecast to exceed 9.5 billion people by 2050
— is clear. Improved living standards and growing
affluence, while supporting a range of SDGs, add
to the challenge.
Estimates suggest the global middle class will
grow to 5.4 billion by 2030, an 80 per cent
increase from three billion in 2015. This will be
accompanied by "increased demand for the
clothes and goods that define middle class
lifestyles," and, at current consumption rates, this
will require three times as many natural resources
by 2050, compared to 2000 (UNECE, 2018).
The World Resources Institute’s "Creating a
Sustainable Food Future" report (2019) delivers
a similar assessment. At current levels of
efficiency, feeding the world in 2050 would
mean "clearing most of the world’s remaining
forests, wiping out thousands more species and
releasing enough GHG emissions to exceed the
Paris Agreement targets of well below 2°C above
pre-industrial levels; and to pursue efforts to limit
the increase to 1.5°C — even if emissions from all
other human activities were entirely eliminated."
The challenge is clear; the need to provide for
a growing population of increasingly affluent
people without destroying the natural systems
on which humanity and all living things rely.
The difficult balance of achieving the SDGs
related to poverty, hunger, equality and standards
of living and the SDGs tackling environmental
impacts is clear within this system.
To achieve the aims of the UN Global Compact
and deliver on the SDGs, drastic action is needed
to halt or reverse current rates of resource use
and biodiversity while enhancing lives and
livelihoods in this system. Effort and cooperation
across businesses and between organizations
involved in the manufacture, production and
distribution of food, beverage and consumer
goods will be pivotal to progress.
The challenge
is clear; the
need to provide
for a growing
population of
increasingly
affluent
people without
destroying the
natural systems
on which
humanity
and all living
things rely.
Oceana has aligned its sustainability
approach with the Ten Principles, the SDGs
and South Africa’s National Development Plan.
It is a founding member of the Responsible
Fisheries Alliance, aimed at connecting the
industry across global supply chains by
engaging and raising awareness among
maritime staff and suppliers.
Oceana has also created a Marine Academy
to encourage collaboration between the fishing
industry and Government. This equips the seafood
ecosystem, from large- to small-scale fishers, to
promote sustainable fishing practices and
business-related skills, creating better job
opportunities and promoting business
development in coastal communities.
Fresh water accessibility continues to threaten
livelihoods in South Africa. In 2019, in response
to continued drought predictions due to climate
change, the Oceana Group invested in two
desalination plants on the west coast, enabling
daily production of 1.4 million litres of potable
water and subsidizing fresh water and job
security for neighbouring communities.
CASE STUDY: PROTECTING OCEAN RESOURCES
OCEAN PRINCIPLES
In September 2019, the
UN Global Compact
launched a set of
Sustainable Ocean
Principles as a
framework for
responsible
business practices.
Complementing the
Ten Principles of the
UN Global Compact,
the principles consider
the complexity faced
by responsible ocean
businesses seeking
to expand use of
the ocean while
safeguarding its health
and productivity
Food security is a global challenge, intensifying with climate change, population growth and the rising
cost of food. Oceana Group, a fishing company headquartered in South Africa, upholds food security by
producing essential products efficiently and promoting responsible fishing practices.

81
In all areas except human rights, more than 90 per
cent of survey respondents within the system have
policies relating to theTen Principles.Policy adoption
for human rights is 87 per cent, the lowest figure
for any of the systems covered by the research.
The most common reason stated for company
involvement in the UN Global Compact is to
increase trust through a public commitment to
sustainability (81%), especially on public-facing
issues such as human rights, gender equality,
responsible sourcing and nutrition.
As with all systems, action to deliver on policy
commitments and fully embed the Ten Principles
is lagging behind. In most areas, action within
the food, beverage and consumer goods system
is in line with that of all survey respondents, with
some exceptions.
Actions showing outperformance include
human rights risk assessments (36% vs 26%
overall); applying human rights within supplier
arrangements (38% vs 31%); collective
bargaining (75% vs 64%); and country-level
reporting on profits, taxes and subsidies (31% vs
23%). Action areas where the system is behind
include employee training on labour rights
(55% vs 65% overall); monitoring labour rights
performance (41% vs 48%); and sanctions for
corruption by employees (35% vs 45%).
How is the system performing?The UN is the
birthplace of
the SDGs
and the Ten
Principles of
the Global
Compact . . . it
is a foundation
of corporate
sustainability.
If you want to
work effectively
on a global scale,
it is a natural
space to be
engaging with
leading
businesses.
– Cermaq
Policy
Employee training
Human rights risk assessment
Policy
Employee training
Reliable age verification mechanisms
Policy
GHG and strategic climate change reporting
Industry/issue specific initiatives
Emissions trading
Policy
Human rights:
Labour:
Environment:
Anti-corruption:
IN THE FOOD, BEVERAGE AND CONSUMER GOODS SYSTEM
Overall responses
System responses
% 0 10 20 30 40 50 60 70 80 90 100

82
Broad base of action, but work to do
Compared to all survey respondents, more food,
beverage and consumer goods companies are
acting on the SDGs, with 87 per cent taking action
compared to an average of 84 per cent. Despite
this, only 21 per cent of respondents believe their
system is moving fast enough to meet the SDGs.
Inconsistency with supportive regulation and
public policy (46% of respondents) and market
competition preventing collaboration (52%) are
seen as key barriers to progress.
Some recognition of negative impacts
Survey respondents overwhelmingly identified
where they can have a positive impact on the SDGs
compared to the SDGs where they have a nega-
tive impact. The food, beverage and consumer
goods system is more aware of its negative
impact on the SDGs, than some other systems.
There is a clear alignment between the SDGs
where companies see scope for a positive
contribution and those SDGs most often prioritized
by companies.Goal 13: Climate Action, is the only
SDG within the top five where respondents see a
"significant" or "somewhat significant" negative
impact. Interviewees suggested climate change
is a more tangible issue for the system, "We need
to break the traditional silos and mobilize around
a holistic agenda delivering a greener, smarter
and fairer world. For us that implies a focus on
zero hunger while at the same time delivering a
climate-neutral value chain” (Yara International).
Even with this enhanced focus, only 15 per cent of
respondents have set a Science Based Target and
18 per cent a net-zero target.
89%
2020
Percentage of
respondents in the food,
beverage and consumer
goods system taking
action to advance the
SDGs in 2020
HOW COMPANIES IN THE FOOD, BEVERAGE AND CONSUMER
GOODS SYSTEM ARE APPROACHING THE SDGs
Companies overwhelmingly recognize their positive impact
on the SDGs: percentage of companies reporting
on the SDGs
Targets set to
progress the
SDGs
Products and
services to support
the SDGs
Some negative impacts are being
prioritized. Companies are prioritizing
Goal 13, an area of negative impact, but
only 15% have set science-based targets
Variable target setting to support
priority SDGs. Despite an obvious link,
45% have not set a target for Goal 3:
Good Health and Well-being
Majority developing products supporting
priority SDGs. However, around 40% of
companies are still not marketing products
and services that align with Goal 13
72% 61% 55% 76% 59%
62%81% 61% 77% 65%
70%82% 76%88%91%
#1 #2 #3 #4 #5
11% 9% 6%
SDGs prioritized
by companies in
the system

83
Survey respondents delivered insight into how
well prepared the food, beverage and consumer
goods system is to deliver system-wide change
that will help to achieve the SDGs by 2030.
Enhanced supply chain focus
Compared to other systems, the food, beverage
and consumer goods system has a greater focus
on responsible supply chain issues. Some 60
per cent of system respondents use supplier risk
assessments to improve supply chain understanding,
compared to only 40 per cent for all systems
combined. Interview responses suggested this
enhanced focus is linked to the need for
the industry to demonstrate social compliance
and ethical practices; "At the industry level, the
biggest focus is on social compliance and that’s
because in order to have products listed you
need to adhere to ethical trade practices.
This is a best practice approach to doing good
business" (Distell).
Social focus, but
Although interviewees reported that the social
SDGs were high priorities for the system,
recognition of the challenge for Goal 3: Good
Health and Well-being, and Goal 5: Gender
Equality, only stands at around 50 per cent. This
shows more work is required to engage companies
on the change required to deliver these SDGs.
Regarding gender equality, only around 30 per
cent agreed that there was an industry-wide
vision and approach to deliver. This suggests that
although the system is somewhat aware of the
gender challenge, there is currently little consensus
on how to address it.
2020
2030
Recognize
the challenge
A vision
for transition
Agreed approach
to deliver
66%
60%
43%
1
2
3
75%
We need to
break the
traditional silos
and mobilize
around a
holistic agenda
delivering
a greener,
smarter and
fairer world.
– Yara
International
for their whole sector:
% 0 10 20 30 40 50 60 70 80 90 100
DECADEOFACTION

84
FOR TRANSITION
1. Science Based Targets and industry
group involvement
To deliver action and impact at scale, the system
requires industry-relevant targets that are
linked to the SDGs and based on a robust
methodology. Science Based Targets, set in
collaboration with key industry bodies and
non-profit organizations, are preferable.
Alignment between science and policy is also
needed, where science leads the policy agenda
towards meeting the SDGs. This can also help
signal to investors where to direct finance — to
areas where it is needed across the value chain,
for example initiatives or projects on climate
action, human rights and modern slavery.
"Through our industry body, we set up an SDG
platform where we were able to have better
engagement on the ground and facilitate more
action, such as setting collective targets for the
agriculture industry" (Distell).
2. Industry-wide collaboration and multi-
stakeholder engagement
Scaling up action on the SDGs across whole
value chains requires industry-wide
collaboration. This is important because the
food, beverage and consumer goods system
is vast and complex. Goal 17: Partnerships is
key if the system’s complexities are going to
be addressed and, encouragingly, companies
are prioritizing Goal 17. Combining insight from
stakeholders across the value chain can also
help to create a theory of change and drive
innovation across the system.
"Scale is both an opportunity and challenge
for us. We are the world’s biggest food
company so our impact is huge, yet we are
just a fraction of a disaggregated and complex
food system. So systemic change is only
possible through collective action" (Nestle).
"When we launched the new vision and
mission, the first element was what we
called "collaborative", linked to Goal 17. We
embraced that early on" (Yara International).
3. Digitalization
Digitalization is essential to connect actors
within the value chain more efficiently and
to enhance traceability from raw materials to
manufacturing to end product. Digital solutions
can support producer responsibility and help
customers and consumers to understand the
environmental and social footprint of products.
"On the digital side, we adopted traceability
technology like blockchain and we work with
feed suppliers to track key ingredients. iFarm
is a concept we are developing now, which
uses smart data to help improve our
sustainability and animal welfare" (Cermaq).
4. A level playing field
The current market is uneven and does not
support smaller players to act sustainably.
Many such players do not recognize the
challenges or urgency of the SDGs. Regulation
to level the playing field and encourage
innovation and sustainable practices by
smaller stakeholders is required.
"The bigger players have the capacity to work
on these questions. The smaller scale operators
do not have the same ability to bend — this is a
governance and regulation issue" (Cermaq).
KEY OPPORTUNITIES
FOR FOOD, BEVERAGE
AND CONSUMER
GOODS TO SHIFT
GEARS FOR 2030
• Operationalize a
theory of change.
Embed values
based on the SDGs
throughout the value
chain to truly adhere
to social and ethical
practices
• Align science and
policy to set industry-
level Science Based
Targets. This can help
re-direct finance to
areas where it is
really needed across
the value chain and
stimulate industry-
wide innovation to
support change
• Industry think tanks
and local networks to
support innovation,
establish metrics,
drive action and
create engagement
on the ground
level to stimulate
entrepreneurship in
the system
• Digitalization and
smart data to
enhance traceability
and drive producer
responsibility
Although the system is showing signs of progress and recognizes the need for change, industry leaders
have emphasized that it is still "on the verge" of a large-scale transition (UN Global Compact-Accenture
Strategy, 2019). Given the dynamics of this system, including relying on complex global supply chains
and large workforces, collaboration across the value chain and in partnership with Governments and
industry groups will be essential for delivering meaningful change.

85
• Pre-competition mandates
"To do good industry-level innovation, you need
a pre-competition mandate to effectively change
product standards and definitions." (Distell)
• Co-governance and collaboration models
"Collaboration between universities, research
institutions, industry and policy makers can really
create change" (Cermaq)
• Digitalization and improving traceability
To support transparency across the value chain and
drive producer responsibility
• Balanced communications to ensure sustainable
choices are made
"There are knock on effects of certain moves. Moving
away from eating meat, for example, may have a knock-
on effect on the amount of fertilizer used. But in general,
the message of having enough food for everybody is a
positive message" (Yara International)
• Lack of industry-specific metrics that are
science-based metrics
"There is no clear set of standardized metrics"
• Need for fairly distributed green finance
To help to stimulate innovation, especially among
smaller players in the system
• Lack of science-led regulation and supportive
public policy
Businesses require regulation that supports action
and incentivizes change by large and small companies
in the system. Policy needs to be led by science
• Lack of leadership
"Industry leadership at scale and speed of change is
required: there has been some high-level discussion
that we need to go faster, which is a positive
development"
• Access to and demand for products can be costly
There are often high costs associated with more
sustainable products, which can dampen demand
BARRIERS ENABLERS
Some of the biggest challenges within aquaculture
include ensuring fish health and welfare, the loss
of livestock through the spread of diseases
such as sea lice, and the escaping fish which
potentially contaminate natural fish stocks in the
rest of the ocean.
Fish cages today hold up to 200,000 fish, which
are fed and kept healthy as a group. Using
digital technology, the Norwegian aquaculture
company Cermaq is able to individualize fish
treatment by identifying each fish and scanning
it to detect and treat potential health issues.
The iFarm concept is currently in the test stage.
If the concept is proven and scaled up, it could
potentially help fish farming operators with
managing production and offer consumers greater
insight into the food they buy.
Cermaq is active on many fronts to improve
seafood systems. They are part of a multi-
stakeholder collaboration via Seafood Business
for Ocean Stewardship (SeaBOS) to develop
global standards for traceability and pilot
technology on board fishing vessels. Cermaq is
also working with the UN Global Compact to
improve governance of ocean resources, develop
principles and share good practice. It is a
founding partner of the UN Global Compact
Sustainable Ocean Business Action Platform and
has contributed to drawing up the Sustainable
Ocean Principles.
CASE STUDY: IMPROVING FARMED FISH WELFARE TO ENSURE SUSTAINABLE
FOOD PRODUCTION IN A HEALTHY OCEAN ENVIRONMENT
Increasing food production from the oceans is key to sustainable food supply in the future.
Cermaq is exploring how digital technology can solve some of the current issues facing fish farming.

86
1 SustainAbility, 2020
2 Baker McKenzie, 2020
3 Deloitte, 2019
4 World Obesity Federation, 2020
5 National Institute of Environmental Health Sciences, 2020
HEALTHCARE AND
LIFE SCIENCES
Core to societies and individuals around the globe, the healthcare and life sciences
system faces immense challenges in the coming decades. From providing universal
access to affordable healthcare and reducing health inequality within and between
countries, to combatting climate change and its effect on health and disease
(SustainAbility, 2020). The healthcare and life sciences system includes the
following sub-sectors:
SCALE IMPACT
US$ 278 BILLION
Value of pharmaceuticals
in 2019² — predicted to rise to
US$1.2 trillion worldwide
by 20243
US$ 33 TRILLION
Approximate value of
goods and services provided,
including direct health
benefits1
1 BILLION+
Obesity is growing globally.
By 2025, over one billion adults
will be affected by obesity and
117 million severely affected4
25%
The WHO estimates that
roughly 25% of the disease burden
in the developing world is due
to environmental factors5
• Medicine
• Bioscience
• Biotechnology
• Life sciences
• Pharmaceuticals
• Medical technology and supplies
• Hospital management
• Healthcare insurance and development aid

87
About the system
The system faces convergent challenges and
opportunities, from antimicrobial resistance
and climate-enabled pandemics, to changing
population demographics and the impacts of
globalization. It also has a high overall influence
on the successful delivery of the Sustainable
Development Goals (SDGs). Stretching from
reducing ill health and inequality through
greater access to healthcare, building a resilient
infrastructure around health and production
facilities and combating climate change and
its impacts through disease surveillance
(SustainAbility, 2020).
The rate at which socio-economic and
technological advances are occurring can help
to connect different stakeholders. Connecting
different stakeholders — or sectors — can increase
investment opportunities (currently, mobilizing
capital remains a global challenge) and help
deliver greater access to healthcare. This is
important given the costly infrastructure needed
for MedTech for instance (Deloitte Insights, 2020).
However, the current pace of change is uneven
around the world.
There are wide-ranging opportunities to
revolutionize the healthcare and life sciences
system. Examples include: how the system
prepares for pandemics and climate health risks
(Deloitte, 2017); how it develops partnerships
and utilizes digital solutions to create value; and
how it provides access to effective, affordable
care for billions worldwide (Accenture, 2019).
These opportunities are yet to be harnessed
fully or equally. Operators within this system will
come to rely much more heavily on data sharing
and collaboration for greater connectivity and
to seek solutions around interconnected global
health challenges.
The healthcare and life sciences system represents a significant proportion of the global economy,
spanning a multitude of products and services from disease prevention to essential healthcare services.
Investing in stronger
health systems could
add up to 8.4 years of
life expectancy and
prevent 97 million
premature deaths by
2030 (World Health
Organization, 2017)
Telehealth use is improving access to healthcare and vitro diagnosis
— 65 per cent of interactions with healthcare facilities now occur
by mobile, and 80 per cent of doctors in 2020 used smartphones and
medical apps in their health provision. — Deloitte Insights, 2020

88
The challenge
Economic and geopolitical headwinds
Health and economic development are closely
interconnected, as are health and sustainable
development. Future demand for healthcare is
set to increase, alongside global demand for
more food, energy, water and shelter (WHO-
UNEP, 2015).
The sustainability of current healthcare systems
is influenced by unparalleled economic,
geopolitical and socioeconomic forces — forces
that influence health and inequality, particularly
for those living in emerging economies (WHO,
2015). Highly relevant to current times, it is said
that the world currently devotes little to pandemic
preparedness, and global health epidemics, such
as chronic and infectious communicable diseases
(e.g. COVID-19, SARS, malaria) are on the rise
(Deloitte Insights, 2019; SustainAbility, 2020).
This is coupled with rising macro-level pressures,
such as financial crises and economic downturns,
deteriorating security, armed conflicts, growing
and ageing populations, shortage of specialist
skills, and climate-risks.
Healthcare legislation and regulation
are lagging behind
Regulatory and technological forces are likely to
mean the system will undergo rapid change in
the next five to ten years (PwC, 2020), but it is not
adapting fast enough (Baker McKenzie, 2020).
Responding to an evolving industry, for example
in digital health and innovation, regulators
need to be more responsive and agile. Some
Governments are beginning to adopt universal
health coverage and introducing pricing controls
on pharmaceuticals and medical technology
devices (Deloitte, 2020a).
Cross-sectoral coordination and multi-
stakeholder collaboration are complex
Partnerships between Governments, businesses
and healthcare professions are needed to target
the SDG financing gap for health, which can be up
to US$ 54 billion a year in some countries (WHO,
2017. But collaboration can be a challenge due to
the complexity of the system and the wide range
of services offered. Incentives for change can
also be misaligned, as policymakers, businesses,
providers, healthcare professionals and patients
all want different things (Goy, 2017).
Digital solutions are not embraced fast enough
The system lags behind in terms of digital
strategies. There are clear opportunities for a
cultural change in the system that embraces
digitalization and innovation at scale — for
example, new science, automation and robotics
— while also reducing negative impacts (Deloitte,
2017). Digitalization and new technology, such
as blockchain and automation, can do things
faster, less expensively and more efficiently,
while improving global connectivity and access
to data.
Who is it that
best delivers
health? Is it
pharma or is
it beyond the
healthcare
system? There
is a missed
opportunity to
engage actors
outside of the
healthcare
industry in
delivering
health. — Novo
Nordisk
GSK: COLLABORATING ON
A MALARIA VACCINE
Goal 3: Good Health and Well-being calls for an
end to the epidemics of AIDS, tuberculosis and
malaria by 2030. Global healthcare company
GSK is one of few companies tackling all three
diseases through its commitment to fight
infectious diseases affecting children and young
people in the developing world.
Malaria claims the lives of more than 400,000
people every year and children in Africa are
disproportionately affected. For 30 years, GSK
has worked collaboratively to develop the RTS,S
vaccine — the first vaccine to help protect children
against the deadliest form of malaria.
In 2019, a WHO-coordinated pilot implementation
programme was launched in selected regions of
Malawi, Ghana and Kenya. The pilot was funded
by Gavi and Unitaid and was led by national
health ministries in partnership with GSK and
the non-profit, PATH.
Every year until 2023, at least 360,000 children
will receive the vaccine and GSK has committed
to donate up to 10 million doses.

89
Most companies in the system have policies
relating to the Ten Principles. Human rights and
anti-corruption stand out against the average,
with 96 per cent of respondents having policies
in place (vs 90% overall). As with other systems,
action to advance policy commitments is lagging.
There are areas of good performance for action
within healthcare and life sciences, compared
to other systems. The system scored better than
most other systems on anti-corruption and
labour actions, including supply chain and
subcontracting arrangements (48% vs 38%
overall) and participating in industry initiatives
for anti-corruption (39% vs 20%). The system
is also doing particularly well on inclusion of
people with disabilities, which scores 22% points
above the average (82% vs 60%).
The system does not score so well on action on
human rights and environment and is one of the
lowest scoring systems in both areas. Other than
water management and water footprinting, where
the system outperforms the average, the
adoption of environmentally friendly technologies
is low (55% vs 72% overall) as is reporting on
greenhouse gas (GHG) emissions (32% vs 44%).
Relating to human rights, particularly low-scoring
actions include human rights risk assessment
(17% vs 26%) and operational guidance notes on
human rights (13% vs 23%).
Policy
Employee training
Policy
Vocational training and counseling programmes
Reliable mechanisms for age verfication
Policy
Environmentally friendly technologies and solutions
Water footprinting
Policy
Record facilitation payments and gifts
% 0 10 20 30 40 50 60 70 80 90 100
IN THE HEALTHCARE AND LIFE SCIENCES SYSTEMOverall responses
System responses
Human rights:
Labour:
Environment:
Anti-corruption:
Sustainability
goals must
be clear,
quantifiable
and auditable.
Then they will
help expose
many
exuberant
announcements
that were not
followed.
— Bayer

90
Business action is aligned with the SDGs,
the level of ambition must be raised
At 75 per cent, healthcare and life sciences has
the lowest percentage of all systems taking
action on the SDGs. One of the main problems
identified relates to translating the SDGs into
business strategy and practices and having
clear business-relevant metrics: "The targets and
metrics are difficult to translate — the language is
not business orientated, it is communicated for
Governments and used in policy".
Negative impacts are well represented,
especially for the environment
There is good alignment between the SDGs that
businesses within this system selected as a priority
and those where they stated they could have a
positive impact. Overall, however, the system has
very low recognition of its negative impacts,
particularly relating to the environment. This
mirrors the low performance in embedding the
environment-specific Ten Principles. As an
interviewee pointed out, "Environmental savings
have always been, more or less, a concern for the
sector. But the complete lifecycle approach is only
starting now. In other words, we have only been
focusing on manufacturing activities".
Products and services supporting the SDGs
Target setting relating to the SDGs is strong within
this system, but the system falls behind others for
developing products and services to support the
SDGs (and deliver their targets). For example, 91
per cent of companies said they have targets to
advance Goal 12: Responsible Production and
Consumption, but only 36 per cent are developing
products or services to advance this SDG.
HOW COMPANIES IN THE HEALTHCARE AND LIFE SCIENCES
Very low acknowledgement of negative
impacts. Compared to other systems, fewer
respondents recognize negative impacts
on SDGs
Higher levels of target setting than other
systems for SDGs identified as a priority
by companies
But products and services significantly behind.
The system has the lowest scores for developing
products and services that support the SDGs
82% 54% 92% 67% 91%
42%88% 38% 31% 36%
88%92% 87%96%100%
#1 #2 #3 #4 #5
4%8% 4% 4%
on the SDGs
But acknowledgment of negative impacts
is very low: percentage of companies
reporting a "significant" or "somewhat
significant" negative impact
75%
2020
Percentage of
respondents in the life
science and healthcare
system taking action
to advance the SDGs
in 2020
SDGs prioritized
by companies in
the system
Targets set to
progress the
SDGs
Products and
services to support
the SDGs

91
System view on delivering changePharma was
not an early
mover in
embracing
sustainability
as a strategic
priority.
There is an
impression
of "natural
alignment" due
to the nature
of the business
— making
products for
health. — Novo
Nordisk
Survey respondents delivered insights into how
well prepared they thought the healthcare and
life sciences system is to deliver the SDGs in the
coming Decade of Action.
Social issue commitment varies
Companies in the system see a positive impact
on Goal 5: Gender Equality and have prioritized
this SDG. But for the system as a whole it is not
selected as a priority. Goal 3: Good Health and
Well-being, however, scores highly across all
areas, as it reflects this system’s core purpose.
It is surprising that for this critical SDG,
recognition of the challenge and a vision for
transition by "all" or "most" of the system only
stand at 66 per cent and 70 per cent respectively.
An agreed approach to deliver the transition is
even lower at 48 per cent. This compares to
higher scores for recognizing the challenge
and a vision for transition for Goal 9: Industry,
Innovation and Infrastructure (78% and 89%
respectively), and Goal12: Responsible
Production and Consumption (88% and
75% respectively).
Action must be accelerated
For each of the four most important SDGs for
the system, well over 50 per cent felt that the
challenge is recognized by "all" or "most" of the
industry. There is also a clear vision for transition,
but the system does not feel as strongly that
there is an agreed approach for the transition.
For instance, on Goal 9, 80 per cent of respondents
report the vision is clear to "all" or "most" of the
industry, but only 40 per cent feel that there is an
agreed approach to deliver.
2020
2030
Recognize
the challenge
A vision
for transition
Agreed approach
to deliver
1
2
3
42%
38%
33%
100%
% 0 10 20 30 40 50 60 70 80 90 100
DECADEOFACTION

92
CREATING A SUPPORTING FOUNDATION
FOR TRANSITION
1. Refocus on a vision to deliver Goal 3 and
ways of measuring impact
Many in the system emphasized the need for
standardized metrics to track progress against
priority SDGs and support impact-based
reporting. Interviewees emphasized this is
not only about indicators for treating disease,
but also those that show the impact of core
business on people’s lives. The system should
consider leading indicators to articulate a vision
of how the healthcare system is contributing to
Goal 3: Good Health and Well-being, such
as people living a more productive life, so
companies can get behind a collective objective.
"As a sector, to what extent are we looking at
systemic challenges in a precompetitive space?
This is what we are missing. The industry is all
for health, but not for health for all. I don’t
think the sector has embraced this idea
of looking at health more systematically"
(LEO Pharma).
2. Access to finance
Access to finance is key to equip businesses
to work towards the SDGs and also to ensure
future resilience — especially against global
pandemics. Finance is needed for research
and innovation and to ensure services and
products are affordable and more accessible
to all (especially to those in developing
countries).

"There needs to be a financial incentive.
Pandemic preparedness, which is not even
an SDG target, is one of our key strategic
pillars. When you look at disease areas for
underserved populations, it is an expectation
to continue this investment, yet others are
not doing anything."
3. Multi-lateral collaboration must be scaled
The current COVID-19 pandemic has highlighted
the need, and also the possibility, for greater
connectivity and global cooperation within
healthcare — not just within the industry itself,
but across industries, to help scale innovations
and solutions at pace. This can also increase
access to finance; before the pandemic,
finance institutions had begun to point
towards supporting projects that illustrated
potential growth opportunities and where the
risks were shared between organizations.
"The pandemic response has unlocked
multi-lateral collaboration at pace. We have
collaborated with competitors, which was
unthinkable before."
4. Address material environmental issues
and sustainable production
Industry is acting to reduce its environmental
footprint and scope 3 greenhouse gas
emissions and water footprinting have
become a focus. One of the key challenges
for businesses is understanding the lifecycle
impacts of products and operations and what
alternative technologies or innovations are
available or best suited to help reduce overall
impacts.
"It takes a lot of time to do a lifecycle analysis
of a product. It is difficult to get to an
understanding of what would have more
benefit between, say, energy efficient
equipment or reducing the emissions in the
supply chain. It is really a matter of investing
time and resources into seeing where we can
have an impact. We need this information to
guide what we need to do."
KEY OPPORTUNITIES
FOR HEALTHCARE
AND LIFE SCIENCES
TO SHIFT GEARS FOR
2030:
• Regulatory reform
and alignment on
key healthcare issues
globally
• Multilateral
collaboration at
scale to unlock
opportunities and
ensure future
resilience
• Availability of
financing for
investment, which
will also help reduce
cost/quality pressure
• Scale action
on key material
environmental issues
(e.g. carbon, water),
with the support
of innovation/
technology
The SDGs are about making the world a better place, something that is at the foundation of
healthcare and life sciences. The system is the single most important for achieving the SDGs, with an
SDG index score of 34.95, followed by resource transformation, consumption and non-renewable
resources (Consolandi and Eccles, 2018). However, to support delivery of the SDGs, the tension
between the social, political and environment priorities must be overcome.
We are talking
about future-
proofing
businesses,
but the crisis
is happening
now. We tend
to strive for
long-term
impact, but we
need to take
action now.
— LEO Pharma

93
Childhood obesity has varied and complex causes
and is increasing at an alarming rate. Novo Nordisk
and UNICEF are working together to raise
awareness, build knowledge and implement
systemic changes to tackle this global issue.
Multiple systemic factors have contributed to the
global rise in childhood overweight and obesi-
ty, including increasing availability, affordability
and promotion of foods high in fats, sugar and
salt. Children who have overweight have a higher
risk of developing chronic non-communicable
diseases (NCDs), like heart disease and type 2
diabetes. Child overweight also contributes to
emotional difficulties and can lead to stigmatization.
The Danish pharmaceutical Novo Nordisk and
UNICEF have partnered to contribute to reversing
this trend.
The partnership works towards supporting Goal 2
and Goal 3 through addressing gaps in knowledge
and sharing best practice; supporting decision
makers to act and scaling up interventions that
work in Mexico and Colombia.
By 2022 the partnership will have contributed by:
• Helping to change the way that childhood
obesity is perceived — from being an individual
to a societal responsibility;
• Working to prevent childhood overweight
and obesity – and diet-related NCDs more
broadly; and
• Addressing obesogenic environments, improving
diets and changing societal narratives and norms.
CASE STUDY: THE NOVO NORDISK AND UNICEF PARTNERSHIP
TO PREVENT CHILDHOOD OVERWEIGHT AND OBESITY
SINCE 2000, the
proportion of
overweight children
between 5 and 19
years old rose from
1 in 10 to almost
1 in 51
. In Latin America
and the Caribbean,
the prevalence of
overweight and obesity
in children under the
age of 5 has increased
from 6.2% in 1990
to 7.5% today
(Novo Nordisk)
• Multi-stakeholder collaboration
To accelerate change collaborative and multi-stakeholder
working is required. "Effectiveness of multi-stakeholder
collaboration should be better leveraged" (Novo Nordisk)
• Science-informed metrics
"We need to have standardized metrics — for our
investors this calls for the SBTi. We need one way to
track progress around the world. I think that would
be an enabler"
• Digital solutions
Digitalization can support the sustainable transition
of healthcare and life sciences. Blockchain and
cloud-based systems that enable safe and secure data
linkages are set to accelerate. Opportunities also exist
with connected systems and shared data, as well as
outcomes-based and patient-centric care models
(Deloitte, 2017; Deloitte Insights, 2019)
• Business case
"Most SDG impact areas are in developing countries
from a health perspective. Unless there are more
partnerships that share the risk, the business case is not
as direct"
• Access to finance for investment,
and greater transparency
Finance is needed for research and innovation, and
accessibility and affordability of products. "Availability
of financing for investment is needed. With COVID-19,
the urgency of the situation unleashed unprecedented
public funding" (Novo Nordisk)
• Standardized metrics
Many industries are struggling with translating the SDGs
into sector-specific action. It requires a common set of
metrics that quantify impact. "Sustainability goals must
be clear, quantifiable and auditable. Then they will help
expose the many exuberant announcements that were
not followed" (Bayer)
• Affordability and access to healthcare
"The question is around affordability of the solutions.
For some companies, business needs to come first; this
can mean that solutions are not affordable for many"
BARRIERS ENABLERS
1 NCD Risk Factor Collaboration. Worldwide trends in body-mass index, underweight, overweight, and obesity from 1975 to 2016.
https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(17)32129-3/fulltext

94
MOBILITY AND
TRANSPORTATION
Acting as the circulatory system of the global economy, the mobility and transportation
system moves a huge volume of goods and people across land, sea and air. It enables
people to reach work, companies to trade in global value chains and leisure and
tourism to thrive. The mobility and transportation system includes the following
systems:
• Automobiles and parts
• Maritime system
• Rail system
• Travel and leisure
1 ACEA, 2020
4 EIA, 2016
SCALE IMPACT
1 IN 3
By 2027, 1 in 3 cars sold
globally is expected to be a
Battery Electric Vehicle²
10%
The automotive industry
accounts for nearly 10%
of world trade¹
25%
of CO2
emissions from fuel combustion
worldwide come from transport. Three
quarters come from road vehicles³
20% USE 55%
OECD nations use 55% of global
transport energy, but only account
for 20% of the world’s population4

95
About the system
Ongoing rapid urbanization will lead to 68 per
cent of the world’s population living in cities
by 2050, up from 55 per cent today (UNDESA,
2018). Combined with a growing global middle
class — expected to increase by 80 per cent
by 2030 (UNECE, 2018) — annual passenger
transport will nearly triple from 44 trillion to 122
trillion passenger-kilometres in 2050. China and
India’s contribution in this time will grow from
one quarter to a third (ITF, 2019). We recognize
that many of these predictions may be affected
by the current global pandemic.
International passenger travel is also growing
most strongly in developing countries. Aviation
passenger-kilometres in India and China alone
are expected to quadruple by 2050 (ITF 2019).
The global aviation system produces around
2 per cent of all human-induced carbon emissions
(ATAG, 2018).
Global freight transport is projected to triple
by 2050. International shipping transports
around 80 per of this freight (IMO, 2020) moving
over 11 billion tonnes of containers and solid
and liquid bulk cargo across the world's seas
annually (UNCTAD 2019).
Although travel by rail is an efficient and lower-
carbon mode of transport, its share of passenger
transport is shrinking in many developing
countries, where it is often uncompetitive and
poorly integrated with other forms of transport.
Slow speeds combined with high prices and a lack
of reliability mean that potential users often choose
other transport options (World Bank, 2020a).
With projected trends in economic development and urbanization, the transport and mobility system
is primed for growth. Passenger transport is projected to increase nearly three-fold between 2015
and 2050 (ITF, 2019). Global freight demand will also triple in the same timeframe, based on current
projections (Fransen et al, 2019).
The transport sector
plays an important role
in achieving the Paris
Agreement, given that
"close to a quarter
of energy-related
global greenhouse gas
emissions come from
transport and that these
emissions are projected
to grow substantially
in the years to come"
(Sustainable
Development Goals
Knowledge Platform,
2020)
Sustainability is now as important to us as safety. We feel it is not only
our responsibility to take action, but also critical to our future success.
It is now key in attracting consumers, employees and investors, as well
as helping drive our profitability. – Volvo Cars

96
The challenge
Congestion, productivity and health
Mobility of people and goods underpins the
global economy. But it also comes with impacts.
By 2040, the number of cars on the road is
expected to reach two billion (WEF, 2016a) from
around 1.3 billion today. Even at today’s level
of car use, congestion limits productivity and
destroys value. In the US alone, traffic congestion
cost almost US$ 88 billion in 2019 (INRIX, 2019).
Road transport and congestion also have health
impacts. Around the world there are approximately
1.35 million road fatalities each year (WHO,
2018a) and outdoor air pollution — to which road
transport significantly contributes — causes
nearly 4.2 million premature deaths each year
(WHO, 2018b).
Solutions are available now, however. Shared
mobility services, autonomous vehicles and
smart transport planning have been proven in
multiple studies to reduce traffic and pollution
in cities (WEF, 2020).
Marine impacts
The International Maritime Organization (IMO)
states that 80 per cent of global trade moves by
sea. At this scale, marine transportation is
responsible for a variety of negative environmental
impacts. These include air pollution, releases of
ballast water containing invasive aquatic species,
use of antifouling agents, oil and chemical spills,
releases of cargo residues, garbage, underwater
noise pollution, ship grounding or sinking and
contamination from ship breaking activities
(Walker et al, 2018).
The shift to alternative fuels
Responsible for 14 per cent of total greenhouse
gas emissions and 24 per cent of CO2
emissions
specifically (WRI, 2019b), the current transport
system is unsustainable. It is on-track to generate
carbon emissions between three to six times
higher than scenarios consistent with the Paris
Climate Agreement (Fransen et al, 2019).
A rapid shift to lower-carbon transport, based
on alternative fuels, is a high priority. Rapid
advancements in lower-carbon propulsion are
set to revolutionize the system and its reliance
on fossil fuels. The production and use of electric
vehicles are growing quickly. The global stock
of electric passenger cars passed five million in
2018, an increase of 63 per cent year-on-year.
China leads the way with 45 per cent of the
global electric vehicle fleet. Europe and the
US account for 24 per cent and 22 per cent
respectively (IEA, 2019).
Policies play a critical role in this advance.
Leading countries use a combination of policy
measures, such as fuel economy standards,
incentives for zero- and low-emissions
vehicles, economic support for the increased
cost of electric vehicles and the deployment of
vehicle-charging infrastructure. Increasingly, policy
support is also being extended to support the
strategic importance of battery technology
(IEA, 2019).
The global transport
system is responsible
for 14 per cent of total
GHG emissions (WRI,
2019b)
14%

97
In each area, except human rights, policy
implementation relating to the Ten Principles
stands at 96 per cent for the mobility and
transport system, which is more advanced than
the average of all systems.
At 89 per cent, human rights policy is only slightly
behind the all-sector average (90%). Despite this
there are still areas of outperformance compared
to the average for all respondents, including
complaints and grievance mechanisms (68% vs
51% overall) and the inclusion of human rights in
supply chain arrangements (56% vs 31%).
Similar to the energy, natural resources and basic
materials system, environment is a very strong
area for mobility and transportation. In almost all
action areas, this system outperforms the average
of all respondents. Particular areas of good
performance are: using environmentally friendly
technologies (89% vs 72% overall) and involvement
in industry- or issue-specific initiatives (56% vs 35%).
Areas where the mobility and transportation
system is behind include monitoring human
rights performance (20% vs 29% overall) and
work-life balance measures (59% vs 74%). In all
areas except environment, respondents are less
involved in industry- or issue-specific initiatives.
This is an area where interviewees thought the
UN Global Compact could use its position to
help. "A convening platform for industry or
issue-specific partnerships can support a
coherent view across the SDGs and enable
progress towards the SDG ambitions" (Maersk).
How is the system performing?We used the
Ten Principles
as a guide
to help develop
our first
sustainability
strategy. We
did a gap
analysis
against the
Principles to
build the basic
foundations
of what a
responsible
business looks
like. – Maersk
Policy
Policy
Framework for industrial relations and collective bargaining
Policy
Environmentally friendly technologies and solutions
Emissions trading
Policy
IN THE MOBILITY AND TRANSPORTATION SYSTEMOverall responses
System responses
Human rights:
Labour:
Environment:
Anti-corruption:
% 0 10 20 30 40 50 60 70 80 90 100

98
Targets set to
progress the
SDGs
Products and
services to support
the SDGs
Companies mobilizing on the SDGs,
but strategy alignment lags behind
Many businesses (86% of respondents) within
the mobility and transportation system are taking
action on the SDGs. Despite high awareness,
only 50 per cent stated their business strategy
is aligned with the SDGs.
Climate action is a priority and progress
is happening
Mobility and transportation is one of few systems
where Goal 13: Climate Action is a priority and a
large percentage of respondents are also setting
emissions reduction targets (78%). It is also an
area where companies are acknowledging their
negative impact.
Balancing communication on positive
and negative impacts
An imbalance of reporting on positive and
negative impacts on the SDGs was recognized
by 60 per cent of respondents in mobility and
transportation. There is also a disparity between
the SDGs that companies have selected as a
priority and the SDGs where they stated they
could have a positive impact.
Products and services supporting the SDGs
Companies in the mobility and transportation
system are investing in products and services that
support their priority SDGs. The electrification and
automation of transport is supporting this trend.
"Our production strategy is aligned with the
BMW Group aim of offering 25 electrified models
by 2023, with more than half of those vehicles
planned to be fully electric” (BMW Brilliance).
HOW COMPANIES IN THE MOBILITY AND TRANSPORTATION
Disconnect between positive impact
and priority SDGs. There is a disparity
between the SDGs prioritized by
companies and those where companies
feel they can have a positive impact
Low target setting. Other than Goal
13: Climate Action, target setting for
priority SDGs within the system is low
or very low
Products and services perform better.
The system performs better than
average on developing products and
services that support the SDGs
50% 59% 80% 43%
25%
71%50% 50%88% 93%
89%89% 89%93%93%
#1 #2 #3 #4 #5
11% 8% 7%
on the SDGs
86%
2020
Percentage of
respondents in the
mobility and transport
system taking action
to advance the
SDGs in 2020
SDGs prioritized
by companies in
the system

99
well prepared they thought the mobility and
transportation system is to deliver the SDGs in
the coming Decade of Action.
Greater recognition and action required
Within this system, there is some alignment between
the SDGs that individual companies are prioritizing
and those they feel are a priority for the industry
as a whole. For instance, 75 per cent of respondents
stated Goal 13: Climate Action was most important
for their industry. However, less than 60 per cent
stated the challenge is recognized and only 30
per cent stated there is an agreed approach
for transition.
Action must be accelerated
For each of the four most important SDGs for the
system, over 50 per cent of respondents felt that
the challenge is recognized by "all" or "most" of
the industry and over 40 per cent felt there is a
vision for transition. The business case, however,
needs to be stronger — the system must be aligned
and committed to an agreed approach in order to
deliver on the SDGs in the next decade.
Social issues are left behind
Social issues that fall under Goals 1 and 8 (e.g.
human and labour rights) are not among the top
four most important SDGs, despite high levels of
employment in this system. Nevertheless, there is
a call from companies to take action, especially in
the automotive system. "We will put even greater
focus on addressing human and labour rights,
including across our supply chain, and help drive
a more proactive approach across the industry"
(Volvo Cars).
2020
2030
Recognize
the challenge
A vision
for transition
Agreed approach
to deliver
1
2
3
68%
64%
51%
75%
12%
Twelve per cent of
respondents have a
Science Based Target;
half of these have been
approved by the Science
Based Targets initiative
% 0 10 20 30 40 50 60 70 80 90 100
DECADEOFACTION

100
FOR TRANSITION
1. Industry-Government collaboration
Multi-stakeholder collaboration, such as that
between industry and Governments, is needed
to create a roadmap for success for this system.
Government involvement is necessary to
encourage consumers within this system to
purchase or use more environmentally friendly
technologies. Tax incentives can help to
deliver this change in consumer demand.
"There needs to be greater governmental
support to encourage the adoption of
electric vehicles, particularly in a post
COVID-19 world. Old technology should not
continue to be subsidized" (Volvo Cars).
2. Collaboration across the value chain
For companies to take action to deliver
the SDGs, they need to work with existing
partnerships from across the value chain
and develop new ones in areas of need.
In the mobility and transportation system,
50 per cent of respondents agreed that further
stakeholder collaboration across the supply
chain will be essential. Establishing industry
coalitions is one way forward.
"We have set ambitious goals on carbon-
neutral shipping by 2050 and a commercially
viable carbon neutral vessel by 2030. To
achieve this, we are working with partners
— key customers, suppliers, academia and
value-chain organizations — in dedicated
coalitions focused on developing sustainable
fuels for shipping and logistics" (Maersk).

his approach can also be applied to circular
systems and processes, where collaboration
is essential to recycling or remanufacturing of
by-products and wastes.
"Adoption of the circular economy is important
for us in not only making better use of material
and components and retaining their value,
but also in reducing our carbon footprint.
We cannot do this without the support of our
suppliers and collaboration with like-minded
companies and organizations" (Volvo Cars).
3. CEO leadership and access to finance
More equal access to finance — in relation
to both size of company and geographical
location — is needed to enable the eco-
innovation that will support the transition of
this system. At present, large companies tend
to dominate and more established countries
lead in greening mobility and transportation.
"Costs of innovation are distributed fairly only
in certain areas globally" (BMW Brilliance).
However, global crises that have the ability
to disrupt global supply chains, such as the
COVID-19 pandemic, must not threaten
sustainable investments and progress made to
date. Company CEOs must take responsibility
for maintaining and continuing to invest in
sustainability-related initiatives and projects.
"In the wake of COVID-19, many companies
are questioning whether they have the
resources to focus on sustainability. At BMW
Group and BMW Brilliance, we will not drop
our sustainability projects, as these are
important to all of our stakeholders and for
the future" (BMW Brilliance).
KEY OPPORTUNITIES
FOR MOBILITY AND
TRANSPORTATION
TO SHIFT GEARS FOR
2030:
• Access to finance
and fair distribution
of money across
developed and
developing countries
to encourage
investment in the
right places, such as
battery development
in the marine industry
and EV advancement
• Standardized metrics.
Businesses require
clear metrics and
ambitious targets
linked to the SDGs
and backed by
science. This will
allow for consistency
in reporting progress
against the SDGs
• Global industry-level
standards must be
established to even-
up the playing field
With the rise of new green deals, such as the European Green Deal to become carbon neutral by 2050, there
is a need for companies to act now to avoid future financial penalties. Innovation and emerging infrastructure
are already happening to support the green transition, but more is needed at scale. On a positive note, 64 per
cent said they are working to improve national infrastructures and 91 per cent invest in community initiatives
where their employees live and work. Policies and market instruments, such as tax-incentives, industry
standards backed up with Science Based Targets, and partnerships or industry coalitions can motivate actors
to innovate, collaborate and deliver the system-level change needed to deliver the SDGs.
GOOD PRACTICE
The maritime industry
is ahead in organizing
systemic change. It
has adopted a vision
and ambition levels
to decarbonize the
international shipping
industry in this century,
as a matter of urgency,
led by the International
Maritime Organization
(IMO, 2018)

101
BMW Brilliance is striving to tackle the challenges
of climate change and better protect the
environment by reducing energy use and
resource usage throughout their products,
production, and supply chain.
In line with the BMW Group’s commitment to
introduce 25 electrified models by 2023, BMW
Brilliance has increased by a factor of 15 its supply
of electric vehicles in the China market since 2017.
BMW Brilliance has realized 100% renewable
electricity for its production in 2019 by generating
solar power electricity and purchasing wind power
electricity and I-RECs. The company reduced CO2
emissions per vehicle produced by 68% from 2018
according to GHG Protocol Scope 2 Guidance.
BMW Brilliance has strict sustainability requirements
for its Tier-1 & Tier-2 suppliers of its fifth generation
BMW high-voltage battery. 100% recycled
aluminum, at least 50% secondary material for
cobalt and nickel and 100% regenerative energy
for HVB cell production.
With its green logistics strategy, BMW Brilliance
has shifted the major outbound transport mode
from road transport to low carbon emission
railway transport — 78 per cent of finished
vehicles can be transported wholly or partly by
rail in 2019.
CASE STUDY: CREATING A SUSTAINABLE VALUE CHAIN
Electric passenger cars
are expected to reach
50% market share in
Greater China and
Europe in the late
2020s, ahead of all
other regions.¹
BMW Brilliance Automotive is an automobile OEM in China. They have examined and optimized their
products, production and supply chain to reduce their environmental footprint.
"Incentives and tax breaks play a key role in encouraging
investments to push the uptake of commercially viable
technologies. We are developing options for customers
to choose low-carbon shipping. Policy-level incentives
can spur further investments and help to level the
playing field" (Maersk)
• Investor and stakeholder pressure
"There is pressure from important stakeholders to act
sustainably. If we can come up with sustainable solutions,
we see this as an opportunity to remain competitive"
• Infrastructure that supports green technologies
"A key enabler for EV adoption is strong investment in
infrastructure, including charging points. In this regard,
China is leading the way, other countries and regions
must follow" (Volvo Cars)
• Business case and brand value
"Everything we do must have a business case. So when it
comes to sustainability, we aim for a win-win for society,
the environment and for our business.This also strengthens
our brand" (BMW Brilliance)
• Standardized metrics
Metrics that are relevant to the system and include
Science Based Targets, so that there is a clear
vision for industry to work towards. "We need
clear industry-based sustainability targets to guide
enterprises in a more efficient way, including in the
automotive industry" (BMW Brilliance)
• Policy and system-level targets are absent
"We haven’t seen specific targets from policy or
frameworks"
• Innovation is lagging for some applications
"The technology is not yet available — batteries are
not yet feasible for long-haul shipping"
• Access to finance
"This is critical for suppliers, as 80 per cent of the car
value chain comes from them. Suppliers need to have
sufficient access to funding to finance their transition"
(BMW Brilliance)
BARRIERS ENABLERS
50%

102
1 ITU, 2019
2 GSMA, 2020a
3 GSMA, 2020b
4 GSMA, 2019a
TELECOMMUNICATIONS
AND TECHNOLOGY
Fast moving and continually innovating, the telecommunications and technology
system has dramatically changed the way in which individuals, businesses and
societies operate in recent decades. Advances in the telecommunications and
technology system, which is a key enabler of the fourth industrial revolution,
have an impact on most industry sectors. The telecommunications and
technology system includes the following sub-sectors:
• Software & computer services
• Technology hardware & equipment
• Fixed line telecommunications
• Mobile telecommunications
US$ 4.1 TRILLION
Mobile industry contribution to
global GDP was US$ 4.1 trillion in
2019 — 4.7% of the global total2
4.1 BILLION
of the global population — or 53.6%
— use the internet. Almost 97%
are covered by a mobile network¹
1.4%
The ICT sector is responsible for
1.4% of global carbon emissions and
around 4% global electricity use³
US$ 690 BILLION
Total value of mobile money
transactions in 2019. Expected to
exceed US$ 1 trillion by 20234
SCALE IMPACT

103
About the system
Mobile technology is one of the most widely
used technologies in the world. Almost 97 per
cent of the population is covered by a mobile
network (ITU, 2019) and 67 per cent — or 5.2
billion people — are mobile users (GSMA, 2020b).
The digital revolution, driven by this widespread
mobile technology and internet connectivity, can
deliver gains in eliminating poverty and generate
economic growth on a global scale. It can deliver
access to health, financial, economic and
humanitarian benefits to ensure we leave no
one behind. But alongside the benefits, advances
with new technologies and communication also
bring new risks and ethical concerns (WEF, 2019).
At the business level, telecommunications and
technology advances are disrupting all sectors.
Well-established and stable sectors are facing
pressure to digitize and transform at an
unprecedented rate. Larger organizations are
facing fresh competition from digitally agile
start-ups that are entering the market and
changing the long-established order.
The telecommunications and technology system
is uniquely positioned to enable every country,
industry and person to collaborate in achieving
the Sustainable Development Goals (SDGs).
Technological innovations have the potential to
provide support for environmental protection
while increasing social and economic inclusion.
The world is currently in the midst of a digital transformation driven by disruptive change in the
telecommunications and technology sectors. At national, business and individual levels, ways of working,
products, services and leisure are increasingly shifting to a digital-first footing.
Technology is a source
of inequality that, if left
unchecked, could create
a great divergence in
society according to the
UNDP
The products and services the mobile industry offers have a direct or
indirect impact on all 17 SDGs. From financial inclusion to advancing
innovation and infrastructure, accelerating gender equality,
the list goes on. This is why the industry committed to the SDGs
as a framework to deliver on its Purpose to "Connect Everyone 2020
and Everything to a Better Future". – GSMA

104
The challenge
Enhancing or reducing inequality?
Technological innovation has the potential to
underpin the successful delivery of all 17 SDGs
(ITU, 2017). Telecommunications and technology
can be used to improve efficiency, reduce
environmental impacts and combat climate
change. Social platforms and communication
have transformed the interconnectivity of society
and delivered essential services to many
underserved people. Economically, digital
payments and mobile-money platforms have
increased financial inclusion.
But, although this system has huge potential
for positive impact, there is also the potential to
create more inequality. Alongside education and
climate change, the United Nations Development
Programme has technology as a source of
inequality that, if left unchecked, could create
a great divergence in society (UNDP, 2019).
Closing the technology gap
With a global economy increasingly centred
around digital technology, internet access and
digital skills are crucial for the world to develop
at an equal rate. However, areas with the greatest
scope for positive impact currently present
the biggest divisions. The telecommunications
and technology system has the opportunity to
change the world in a positive direction, but
these challenges must be overcome for the
benefits to be realized.
Only 17 per cent of
companies in this
system report that they
are fully integrating
renewable energy into
business operations
and strategy
17%
ACCESSIBILITY GAP
Access to the internet is lowest
in areas where it could have
the most impact. Although
53.6 per cent of people globally
use the internet, regional
inequalities are marked. In
developed countries over 86
per cent of the population use
the internet. In developing
countries, the figure is 47 per
cent and in least developed
countries the figure stands at
just 19 per cent. Africa and
South Asia have the highest
proportion of people not
using the internet (ITU, 2019).
GENDER GAP
Globally, the gender gap for
internet use has widened from
11 per cent in 2013 to 17 per
cent in 2019, with 58.3 per
cent of men and 48.4 per cent
of women globally using the
internet in 2019 (ITU, 2019).
In low- and middle-income
countries the gender gap for
mobile phone ownership is 10
per cent. In these countries,
mobile is the primary way people
access the internet and the
gender gap for mobile internet
use is significantly greater at
23 per cent (GSMA, 2019b).
SKILLS GAP
A significant barrier to internet
use is lack of ICT skills (ITU,
2019). Around the world, up to
a third of individuals lack basic
digital skills such as copying
files or folders (ITU, 2018).

105
Policy implementation relating to the Ten
Principles stands at 90 per cent or above for the
telecommunications and technology system.
However, in terms of practical action, the system
is lagging behind significantly in some areas.
Respondents performed worse compared
to all other systems on actions relating to the
environment. At 17 per cent, the system is furthest
behind on fully integrating renewable energy
into business operations and strategy. Given this
system's energy requirements for data centres
and servers, this is an area of opportunity.
Other areas where the system is performing below
average include environmental management
systems (50% vs 65% for all respondents) and
resource efficiency (57% vs 70% overall). In
all four areas of the Ten Principles, the system
scores lower than average for involvement in
multi-stakeholder dialogue.
Areas of better-than-average performance
include complaints and grievance systems and
operational guidance notes relating to human
rights, work-life balance and inclusion of people
with disabilities within labour practices, and
monitoring anti-corruption performance.
Our interview data from this industry group
showed that businesses are using the Ten
Principles within their sustainability policies and
governance framework, while less than half of
interviewees used the Principles to drive ambition,
action and targets within their companies.
The Ten
Principles are
broad and
basic. What is
valuable is the
articulation of
a framework
of how
companies
can go about
applying these
Principles.
– Singtel
Policy
Policy
Policy
GHG and strategic climate change reporting
Eco-design
Policy
Employee training
Terminate supplier contracts if corruption occurs
% 0 10 20 30 40 50 60 70 80 90 100
IN THE TELECOMMUNICATIONS AND TECHNOLOGY SYSTEMOverall responses
System responses
Human rights:
Labour:
Environment:
Anti-corruption:

106
SDGs prioritized
by companies in
the system
Targets set to
progress the
SDGs
Products and
services to support
the SDGs
Mobilizing action for the SDGs
In contrast to action to embed the Ten Principles
into strategy and operations,the telecommunications
and technology system has the highest percentage
of respondents — 90 per cent — stating they are
taking action on the SDGs. Close to half (47%)
claim they align their core strategy with the SDGs.
Action is focused on positive contribution
The system shows perfect alignment between
the top five SDGs that have been prioritized by
companies and those where respondents feel
they have the most positive impact. Although social
SDGs are less prioritized overall, companies in
this system have ranked gender equality as the
second most prioritized SDG. Companies in the
system, however, show very little acknowledgement
of negative impacts on the SDGs — one of the
lowest levels across all systems. This is particularly
relevant to SDGs relating to the environment,
energy and responsible consumption. Supporting
this, only 29 per cent of businesses in the system
have conducted an impact assessment relating
to the SDGs along their value chain.
Ambition setting
Overall, the system has a moderate level of
target setting — 55 per cent or more — for all but
one of the top priority SDGs. Similarly, more
than 70 per cent of respondents are developing
products and services to support the SDGs, other
than for Goal 5: Gender Equality. A particular
high point is Goal 9: Industry, Innovation and
Infrastructure, where more than 97 per cent
report they have products and services that
support its delivery.
90%
2020
Percentage of
respondents in the
telecommunications
and technology system
taking action to advance
the SDGs in 2020
HOW COMPANIES IN THE TELECOMMUNICATIONS AND TECHNOLOGY
Perfect alignment between priority SDGs and
those where companies see the potential for
positive impact. Little focus on environment and
energy SDGs
Moderate target setting for most priority SDGs.
Lagging behind for Goal 3: Good Health and
Well-being
Good support for SDGs through products and
services particularly for Goal 9. Greater focus is
needed on Goal 5: Gender Equality
63% 68% 73% 55% 47%
74%73% 42% 97% 70%
79%83% 81%86%88%
#1 #2 #3 #4 #5
4%3% 4% 4%
on the SDGs.
There is some acknowledgment of negative
impacts: percentage of companies reporting
a "significant" or "somewhat significant"
negative impact.

107
System view on delivering changeThe industry
has a clear
understanding,
vision and
strategy, but
implementation
is currently
varied.
— Telenor
Survey respondents delivered insights into how well
prepared the telecommunications and technology
system is to deliver change to help deliver the
SDGs in the Decade of Action. Overall, there is
good alignment between the SDGs that companies
are prioritizing and those that survey respondents
feel are a priority for the system as a whole.
Goal 5: Gender Equality as a key industry focus
Close to 60 per cent of companies recognize the
level of challenge required to deliver on Goal 5:
Gender Equality. Less than half, however, believe
there is a collective vision or an agreed approach
to deliver by 2030.While the majority of companies
take supportive actions such as flexible working
(89%) and tackling the gender pay gap (80%),
only 35 per cent hold leaders accountable for
gender representation.
Low-carbon transition
Our interview participants also highlighted Goal
13: Climate Action as a priority, although only 38
per cent of survey respondents identified this SDG
as a key priority. Many interviewees highlighted as
good practice the Net Zero Roadmap, developed
by the mobile industry body GSMA, the ITU, GeSI
and the Science Based Target initiative.
The Roadmap comprises emissions disclosures
from mobile operators, a global emissions
reduction pathway for the mobile sector matching
the most ambitious target of the Paris Agreement,
and individual company target setting in line with
a Net Zero ambition. To date, 57 mobile operators,
representing two-thirds of mobile connections
globally, are actively engaged in the initiative
(GSMA, 2019c).
49%
44%
41%
62%
for their whole sector:
% 0 10 20 30 40 50 60 70 80 90 1002020
2030
Recognize
the challenge
A vision
for transition
Agreed approach
to deliver
1
2
3
DECADEOFACTION

108
CREATING A PRE-COMPETITIVE SPACE FOR
ADDRESSING SYSTEMIC CHANGE
1. Collaboration must be scaled
Survey respondents and interview participants
both reported consistently higher scores for
industry-wide recognition of the vision and
ambition needed to achieve the SDGs.
Collaboration is critical and 43 per cent of
respondents stated they collaborate with
private and public organizations to advance the
SDGs. At a sector level, interviewees highlighted
the importance of creating a pre-competitive
space where companies embrace the problem
they need to solve, rather than seeking
reputational or promotion opportunities. This
trend needs to continue to deliver the transition.
"Every company has to undertake the same
work which may touch the same suppliers but
we may not have the leverage on the bigger
suppliers, why not come together to get
leverage" (Singtel).
2. Ambition and leadership at the right levels,
but scale needed
Most interview participants stated there is
sufficient leadership and ambition to support
transition towards the SDGs, but that scale is
also needed. On climate change, ambition is
generally consistent with the Paris Agreement
and although net-zero is an aggressive target for
a growing system, many noted that aspirational
targets help focus on collaboration with energy
providers and others to deliver systemic change.
More operators need to sign up to achieve scale
and market pull is a crucial element here.
"The industry has a clear understanding, vision
and strategy, but implementation is currently
varied. We still don’t have the scale of
companies signed up to GSMA targets to be
able to deliver on collective ambitions for
2030" (Telenor).
3. Spreading cost of innovation more fairly
Interview participants highlighted that
understanding and trust between partners is
crucially important, especially Governments
understanding that business can be part of the
solution. Companies reported that the risks and
costs of innovation currently overwhelmingly
sit with the pioneer, which is a key barrier to
implementing solutions at scale.
"How do you incentivize and create an
impetus? Sustainability and Purpose must be
integrated into business strategy to drive
longer term value" (GSMA).
CLOSING THE DIGITAL
GENDER GAP
Despite Turkey having
the 17th largest
economy in the world,
only 33 per cent of the
country’s women have
jobs, compared to
76 per cent of men
according to 2017’s
Global Gender Gap
Report. This could all
be about to change.
In 2017, mobile
operator Turkcell
launched a programme
to narrow the digital
gender gap, provide
more employment
opportunities for
women and support
female entrepreneurship.
Since 2017, more than
770 women have been
trained in 18 cities,
writing 2.3 million
lines of code. Over
200 mobile apps have
been developed and
launched by more
than 300 women and
hundreds have found
career opportunities in
the mobile industry
Despite some low scores for embedding the Ten Principles of the UN Global Compact into operations
and strategy, the telecommunications and technology system is well placed to support the SDGs in the
Decade of Action. This is supported by high levels of awareness and action on the SDGs, combined with
industry-level collaboration and initiatives. These include the mobile sector’s overall commitment to the
SDGs through industry body GSMA and collaboration on setting sector-relevant Science Based Targets
(see case study).
Principles are the first stage — second stage must be outcome-based.
How do I make it happen from an execution point of view? – Singtel

109
SUSTAINABLE TRANSITION NEEDS – SHIFTING GEARS FOR 2030 CHAPTER 5
Singapore Telecommunications Limited (Singtel) is
a multinational telecommunications conglomerate.
Singtel established its Science Based Targets in
2017, the first company to do so in Asia outside
Japan. Singtel is aiming to cut absolute direct
and indirect (Scope 1 and 2) greenhouse gas
emissions across its Singapore and Australian
operations by 42 per cent by 2030 from its 2015
base-year. It will also work with suppliers to
reduce third-party (Scope 3) emissions by 30
per cent over the same period.
Being an early adopter was not without challenges,
as there were no established decarbonization
pathways for the mobile industry. As more
operators started adopting Science Based
Targets, an opportunity arose for the industry
association, GSMA, to play a role. By working
with companies that had established targets and
collaborating with other partners, such as the
Global e-Sustainability Initiative (GeSI) and the
International Telecommunication Union (ITU),
GSMA was able to carve out a sector-specific
decarbonization pathway.
The result was an agreed pathway for the ICT
sector that sets Science Based Targets and
provides a methodology that ICT companies
can adopt. This led to firm commitments by
several members to work toward net-zero
carbon emissions by 2050 — a first for any
industry sector.
CASE STUDY: COMMITTING TO SCIENCE BASED TARGETS
IN THE TELECOMS SECTOR
To date, 57 global
mobile operators,
representing two-thirds
of the world’s mobile
connections, are
actively engaged in the
initiative (GSMA, 2019c)
Industry-wide collaboration in the Information and Communication Technology (ICT) sector to set Science
Based Targets was brought about by early movers such as Singtel and concerted industry association action.
• Products and services offered by the sector
"In a post-COVID-19 world, digitalization must be scaled up
and will help to meet people's basic needs" (Turkcell)
• Industry leadership on the scale and speed
of change required
Most interview participants within the system agreed
that there is sufficient leadership within the system now
to move the dial.The telecommunications and technology
system is ahead of others in this regard
• Collaboration with key stakeholders on
building resilience
"There is a lot more room for collaboration on resilience
with emergency services, building resilience against
natural disasters or bushfires. For instance, pre-cyclone
season, we hold regular cross-stakeholder planning
sessions with key stakeholders to see how digital
solutions can help deliver"
• Standardized metrics to track collective progress
against the SDGs
"We need to be able to show how we are progressing.
We published the research report ICT Sustainable
Development Goals Benchmark, which captured the
impact of ICT on the SDGs from a national perspective.
It also defined the high-priority SDGs"
(Huawei Technologies)
• Cost of innovation to meet the SDGs is not
distributed fairly
"There needs to be a business case for everyone
involved in innovating for Sustainability. Business can
be a part of the solution but we cannot pull the whole
wagon alone. The cost of innovation needs to be shared
amongst all stakeholders" (Telenor)
• Digital divide gap
"Over 90 per cent of the population is covered by a
mobile network, but this does not mean all are able to
access the benefits. They may lack the digital skills or
affordable solutions. 3.3 billion people are covered by a
network but not using mobile internet services" (GSMA)
Enabling regulatory and policy environment are critical
to foster investment in digital infrastructure and to
ensure the transformative impacts of connectivity can
benefit all individuals
BARRIERS ENABLERS

110
FINANCIAL
SERVICES
Financial development is not simply an outcome of economic growth. It plays a huge
part in the workings of any nation’s economy, not only creating financial value, but
also contributing to sustainable development by increasing investment aligned to the
Sustainable Development Goals. With financial products no longer limited to the
traditional financial sector, financial services have a huge role in progressing economic
development and sustainability in tandem. The financial services system includes the
following sub-sectors:
• Banking and capital markets
• Asset management
• Credit unions, financial advisors, discount brokerages and investment banks
• Venture capital and private equity
• Accountancy
1 Investopedia, 2020
2 World Bank, 2015
3 World Bank, 2018
4 ReportLinker, 2020
US$ 26.5 TRILLION
The financial services market
is expected to reach
US$ 26.5 trillion by 20221
c.103%
Private credit relative to GDP is 103% in
high income countries, four times more
than in low-income countries²
69%
Financial inclusion is growing. Globally,
69% of adults have a bank account or
mobile money provider (2011: 51%)3
US$ 13.9 BILLION
The digital banking market
worldwide is projected to grow
by US$ 13.9 billion by 20234
SCALE IMPACT

111
About the system
The financial services system has changed greatly
in recent years. Digital transition, enhanced
customer focus and growing competition
from non-banks and financial technology firms
(FinTechs) continue to reshape the system. In
addition, collaboration has increased, in particular
as discussions related to inclusive capitalism,
climate change, gun violence and diversity rise.
Responsible investment is an area of huge
growth in recent years, showing a 34 per cent
increase between 2016 and 2018 and a 68 per
cent increase since 2014 (GSIA, 2018; GSIA,
2016). Alongside this expansion, awareness and
activism are also growing. Research shows that
environmental and social shareholder proposals
counted for 41 per cent of all documented
shareholder proposals in 2017, up from 33
per cent a year earlier. Similarly, Twitter posts
mentioning ESG topics grew 19-fold between
2014 and 2018 (Goldman Sachs, 2018).
The system has a key role to play in creating
sustainable economies and contributing to the
Sustainable Development Goals. It is well
positioned to deliver impact in a number of
areas: improving financial inclusion for the poor
and vulnerable to help reduce poverty and
inequality; influencing customer and supplier
impacts through investment decisions; financing
the transition to a low carbon economy; and
increasing national and regional natural
catastrophe insurance schemes (Febelfin, 2016).
The financial services system is one that can leverage resources to enable companies from all sectors to
advance the Sustainable Development Goals (SDGs). Often considered highly complex, it includes an
array of products and services for individuals, businesses, non-profits and Governments — ranging from
personal banking and mortgages to private equity and venture capital funds and impact investing.
Issues of green bonds
and green loans reached
an adjusted US$ 257.7
billion globally in 2019,
marking a new record
and showing 51 per
cent growth over
2018 (Climate Bonds
Initiative, 2019)
Whenever we lend a dollar, we could have an impact on everyone.
What very few banks have done is to say, ‘what can we do if we want
to create this sustainable world? – DBS Bank

112
The challenge
Sound financial systems underpin economic
growth and development, and are crucial for
boosting prosperity, alleviating poverty and
supporting global development (World Bank,
2020b).
However, despite recent efforts to encourage
green finance and broader sustainable
development around the world, challenges
remain and vary for different countries (UN
Environment Inquiry, 2017). The global financial
crisis exposed significant weaknesses in the
financial system and vulnerabilities associated
with an interconnected global market.
Ongoing challenges include, for example,
national Government budgets remaining
constrained; low confidence and public trust
in financial institutions (Deloitte, 2020b);
unconventional monetary policy in major
national and regional economies; and around
200 million small and medium-sized enterprises
worldwide with no access to formal financial
services (WEF, 2016b).
Access to finance is seen as a crucial step in
escaping poverty. There has been good progress
in recent years, with 1.2 billion people obtaining
a bank or mobile money account since 2011.
But financial inclusion remains a key challenge
given that 1.7 billion adults remain unbanked
(World Bank, 2018).
In relation to the SDGs, significant financing —
estimated at US$ 2.6 trillion in low-income and
emerging markets — is needed in the next ten
years to deliver the SDGs (IMF, 2019b). Delivery
of the SDGs relies on significant national spending
in key areas, such as health, education and
infrastructure. In many low-income countries, tax
revenues do not deliver the required financial
resources (IMF, 2019c).
Financing is often the weakest part of national
plans for the SDGs and three quarters of national
plans do not contain costings or financing
details. This is important to address because,
without adequate financing, the aspirations of
the SDGs will remain beyond reach (IMF, 2019b).
Strong efforts, including public-private
collaboration, are key to helping address
financing challenges related to delivering the
SDGs, particularly in the developing and least
developed countries.
Areas of work that need attention to overcome
the financial sector’s challenges are (IMF, 2019b;
World Bank, 2018):
• National policies to support SDG investments
• International cooperation to find solutions to
new and emerging challenges
• Actions to support debt sustainability
• Revenue strategies bolstered by global
coordination on international tax reform
• A framework to identify public and private
flows, aligned to country development plans
• A greater connection between the green
finance movement and digital service
offerings (e.g. FinTech) for financial inclusion.
Unlike other sectors, the financial sector has the opportunity
to have an impact across all categories. – PRI
1.7
Financial inclusion
remains a key challenge
given that 1.7 billion
adults remain unbanked
billion

113
VIEW FROM GLOBAL
COMPACT NETWORK
FRANCE:
Investors' growing
interest in the SDGs
motivates more
companies to join the
UN Global Compact
and work on the SDGs
Responses from the financial services system
show that, across the Ten Principles, more than
90 per cent of companies have policies in place.
While action to embed the Ten Principles into
strategies and operations is nowhere near as
widespread as policy implementation and needs
to improve, this system performs better than
most on actions relating to labour rights and
anti-corruption. Actions relating to human rights
and environment are more mixed compared to
all systems.
The system is particularly strong on multi-
stakeholder dialogue, being the top-scoring
system for dialogue on labour and
anti-corruption and the second-highest scoring
in the environment and human rights areas.
Selected areas of better performance include
labour rights risk assessment (55% vs 46% for
all respondents), sanction systems for corruption
breaches by employees (56% vs 45%) and
recording facilitation payments and gifts (38%
vs 22%) — the top score for all systems.
Areas for improvement include environmental
risk assessments (48% vs 62% for all respondents),
environmental management systems (57% vs
65%) and complaints and grievance mechanisms
for human rights issues (45% vs 51%).
IN THE FINANCIAL SERVICES SYSTEM
Policy
Employee training
Disclosure of human rights policies and practices
Policy
Frameworks for industrial relations and collective bargaining
Labour rights risk assessment
Policy
Resource efficiency
Eco-design
Life-cycle assessment and costing
Policy
Employee training
Record facilitation payments and gifts
Overall responses
System responses
Human rights:
Labour:
Environment:
Anti-corruption:
% 0 10 20 30 40 50 60 70 80 90 100

114
Growing business action, but greater alignment
with strategy is needed
Despite a high number of respondents (88%)
within the financial services system taking action
on the SDGs, only 58 per cent reported that their
core business strategy is aligned with the SDGs.
The interview data supports this, stating that
businesses struggle with alignment.
High priority for the SDGs
Three of the top-five priority SDGs of the
companies in this system are also SDGs where
companies feel they can have the greatest positive
impact. In addition, the interview data also
highlighted Goal 10: Reduced Inequalities and Goal
13: Climate Action as important. Goal 13 is a priority
for companies, while also being recognized as an
area where companies have a negative impact.
However, many respondents within the system
(15%) also reported they were unaware of their
overall impact on Goal 13.
Products and services are in place,
but targets are low
Other than Goal 13: Climate Action and Goal
5: Gender Equality, target setting is low for the
priority SDGs in this system. When it comes to
products and services, the system is performing
better, with higher percentages stating they have
products and services supporting the SDGs.
Compared to other systems, this is particularly
strong for Goal 17: Partnerships for the SDGs,
where 75 per cent indicated they have products
or services in place, despite only 50 per cent
stating that they have set targets for this SDG.
88%
2020
Percentage of
respondents in the
financial services system
taking action to advance
the SDGs in 2020
HOW COMPANIES IN THE FINANCIAL SERVICES SYSTEM
ARE APPROACHING THE SDGs
Very low acknowledgement of negative impacts.
Compared to other systems, fewer respondents
recognize negative impact on SDGs
Low target setting for some priority areas.
Other than Goal 13 and Goal 5, target setting
is low for priority SDGs
Products to support the SDGs. Despite low
target setting in some areas, more respondents
are developing products and services to
support the SDGs
56% 69% 80% 50% 48%
75%84% 63% 80% 87%
79%85% 79%90%91%
#1 #2 #3 #4 #5
3%4% 3% 1%
on the SDGs
But acknowledgment of negative impacts
is very low: percentage of companies
reporting a "significant" or "somewhat
significant" negative impact
SDGs prioritized
by companies in
the system
Targets set to
progress the
SDGs
Products and
services to support
the SDGs
SDGs prioritized
by companies in
the system

115
57%
51%
46%
70%
System view on delivering changeWe came up
with something
called the Ayala
Blueprint.
The blueprint
guides what
SDGs we are
gearing up for,
what is our
goal for 2030,
and what the
themes are
behind each
of these goals.
– Ayala
Corporation
well prepared they thought the financial services
system is to deliver the SDGs in the coming
Decade of Action.
System and company priorities aligned
In the financial services system, there is reasonable
alignment between the SDGs that individual
companies are prioritizing and those that
respondents feel are a priority for the system
industry as a whole. In particular, Goal 8: Decent
Work and Economic Growth and Goal 5: Gender
Equality are highlighted as priority SDGs that
the industry must address.
Stronger focus on social SDGs than in previous
years, but they are still not at the forefront
The financial services system is one of few that
has prioritized SDGs with a social focus, both at
the company level and for the system as a whole.
For example, Goal 5: Gender Equality was listed
amongst the most prioritized SDGs both at an
individual business level and a system level,
signaling that awareness of gender issues is
increasing.
Scaling action towards transition is needed
Across the four most important SDGs for the
system, at least 50 per cent of respondents feel
that the challenge is recognized by their sector,
the vision for transition is in place and there is
an agreed approach to deliver. However, if we
expect to deliver the SDGs in the next decade,
this will need to be accelerated.
2020
2030
Recognize
the challenge
A vision
for transition
Agreed approach
to deliver
1
2
3
% 0 10 20 30 40 50 60 70 80 90 100
DECADEOFACTION

116
1. Centralized system to identify public and
private investment flows, aligned with
country development plans
Targeted investment and international
cooperation are required to find solutions to
new and emerging challenges covered by the
SDGs. Survey responses show the financial
services system performs better than average
on engaging in collective action and multi-
stakeholder dialogue. Companies within the
system need a forum in which they can
embrace and tackle SDG-related problems
and identify where and how finance needs
to be directed towards SDG projects.
"On one hand, money is needed everywhere,
but on the other, there is no obvious way for
us to direct it" (DBS Bank).
View on sustainable finance from Global
Compact Network France: "Work on
sustainable finance has really accelerated since
2018.Financial services companies are contacting
the UN Global Compact to learn about the
SDGs and their philosophy and to understand
best practices and impact measurement. We
are building a guide to show how private actors
and investors can contribute to the 2030 Agenda.
We also hosted a CFO taskforce meeting with
twenty companies to raise awareness of the
SDGs among financial directors."
2. Tools and frameworks
Businesses require the right tools to measure
and report on the progress — both positive
and negative — of finance-related SDG projects
or initiatives. This is not in place currently, and
54 per cent of survey respondents report there
is not a balanced communication of negative
and positive impacts from SDG-related projects.

View on sustainable finance from Global
Compact Network France: The issue of
sustainable finance is essential for us — it puts
measurement in the spotlight. Our main
objective is to ensure the SDGs are a common
language for all private actors (investors, asset
managers, extra-financial rating agencies, etc.)
enhancing long-term thinking and reducing
negative externalities. We want to raise finance
director awareness so they can build financial
tools based on the SDGs. One question
remains: what should a common measurement
framework for these SDG initiatives look like?"
3. Better connection of green finance
and digital services
The financial services system is behind the
average on a number of actions, including
impact and risk assessments. Utilizing technology
is important for traceability and accountability
of investments, services and products and for
assessing risks. Financial services companies
can play a key role in building sustainable
supply chain resilience if digital solutions
and service offerings are embraced.
4. Business models equipped for the future
To maintain a social licence to operate,
companies in this system must ensure their
business models are fit for purpose — this
can help scale investment in priority SDGs or
initiatives creating positive impact.
"The world is changing rapidly and we need a
business model fit for the next decade."
KEY OPPORTUNITIES
FOR FINANCIAL
SERVICES TO SHIFT
GEARS FOR 2030:
• Use digitalization
(e.g. FinTech, AI,
Blockchain) to direct
investment, provide
traceability and report
on the social and
economic benefits
from SDG-related
projects — this is
particularly important
when partnerships
are involved
• Advance financial
inclusion and stimulate
green investment
using systems that
identify risks quicker
(e.g. modern slavery
issues). Mobilize
investment to raise
or re-orient finance
to markets that are
investing in SDGs
• Develop customer-
centric service
strategies and form
partnerships or
ventures to build
trust, innovate and
maintain a competitive
advantage
The challenge of financing the SDGs is not just about mobilizing more money to close the financing
gap — it is more systemic, requiring investors and businesses of all sizes to be influenced. There are
several areas that need to be addressed to achieve the 2030 Agenda: public-private sector
collaboration; financing frameworks for the SDGs; enhanced governance; alignment of business
strategies with the SDGs; impact measurement and reporting for SDG financing; and an emphasis
on country-level achievements towards the SDGs.

117
Banks operate in every corner of the world, yet
their services do not yet reach everyone. Currently,
nearly 70 per cent of adults have a bank account1
.
Financial inclusion is key to helping people out
of poverty. HSBC, one of the five largest banks
in the world, has set itself the goal of widening
access to banking services.
Their approach to financial inclusion has three
main elements
• To improve the accessibility of HSBC services for
existing customers and the wider community
• Invest in financial educational to help customers,
colleagues and communities use financial
services with confidence. HSBC has committed
to providing US$ 35 million over three years
(2018 – 2020) to support programmes to develop
financial skills
• Engage with partners such as trade associations,
Governments and regulators to identify practical
barriers to financial inclusion, find ways to
improve standards and share best practice.
In Mexico, roughly 50 per cent of the population is
financially excluded. To provide banking services
for those previously excluded, HSBC launched a
digital service called "Stilo Connect" in 2019. The
digital service simplifies the registration process,
offers instant activation of accounts and a digital
debit card for e-commerce. It is free to use if used
regularly. More than 22,000 new customers have
signed up so far and the goal is to reach 60,000
within 2020.
CASE STUDY: HSBC: INCREASING ACCESS TO FINANCIAL SERVICES
FINANCIAL
INCLUSION IS
CONSIDERED AN
ENABLER
of sustainable
development in eight
of the seventeen SDGs,
and "there is growing
evidence that it
contributes to more
stable financial systems
and economies,
increasing domestic
resources through
national savings and
helping to increase
Government revenue"2
HSBC is working to widen access to formal financial services by making its services more accessible and
affordable to people previously excluded from financial services.
• Communication and engagement to
stimulate SDG action
"Education is one of the biggest enablers.Action happens
when people are educated and when they have money. For
example, in the Philippines they may be aware of it, but they
can’t afford to buy another option.We need to give people
the opportunity to move up.This means education and
affordable products" (Ayala Corporation)
• Environmental regulation
Governments need to incentivize the private sector to
take action to deliver the SDGs
• Embracing digital
"Our digital strategy, for example, helps to reduce carbon
emissions, expand and facilitate customer access to our
services and reduce our dependence on physical service
structures, which are more impact-intensive and more
exposed to the risk of disruption from climate factors
(such as flooding)" (Banco Bradesco)
• Blended finance from Governments to share risk
"The biggest difference is in supply chain finance. The
solution is more blended finance — for governments to
give risk insurance. Then it will work" (DBS Bank)
• Bold leadership currently lags
"I think the majority of banks are still response-driven.
For example, with climate change, banks focus on energy.
We all fly, so why is no one pointing the finger at aviation?
What is really needed is for money that goes much further
in areas that are ‘not as sexy’" (Ayala Corporation)
• Lack of system-wide SDG prioritization
Most interview participants within the system agreed that
there is a lack of focus on what SDGs they should prioritize
• Poor business case, especially on climate
"No one dares to say that climate change shouldn’t
be at the top of the agenda. Banks are not doing this
because you can’t build a financial business case
around it"
• Finance frameworks for SDGs are needed
"There needs to be more awareness among individuals
around how their money is managed and how that is
contributing to the SDGs. The demand has to start
there" (PRI)
Such frameworks must account for positive and negative
impacts: "We are now measuring impact and orientating
business models to deliver positive impacts and avoid
negative impacts" (Banco Bradesco)
BARRIERS ENABLERS
1 World Bank 2018. https://www.worldbank.org/en/news/press-release/2018/04/19/financial-inclusion-on-the-rise-
but-gaps-remain-global-findex-database-shows
2 UN Global Compact Scaling Finance for the Sustainable Development Goals, 2020

118
6KEY FINDINGS
ACROSS THE SYSTEMS

119
KEY FINDINGS ACROSS THE SYSTEMS CHAPTER 6
KEY FINDINGS OF
DNV GL'S RESEARCH
ACROSS THE SYSTEMS
It is widely accepted that the scale and pace of change to date to deliver the SDGs
has not been big enough or fast enough to date. At this point in time — with ten
years to go — the world is not on track to deliver the SDGs. We need a Decade of
Action to reverse this predicament.
The potential for business to contribute to the SDGs is widely recognized, but levels
of ambition and action on the SDGs do not currently match this awareness.
The UN Global Compact/Accenture CEO survey in 2019 noted that 71 per cent
of CEOs agree business can play a critical role in contributing to the SDGs, but only
21 per cent agreed they are playing a critical role now. For businesses — now more
than ever — it is time to ramp-up action in all areas of their operations and value
chains to support delivery of the SDGs.

120
System priorities
MOST PRIORITIZED SDGs KEY FINDINGS
TELECOMMUNICATIONS
AND TECHNOLOGY
63% 58% 57% 48% 46%
• Strong leadership through the telecommunications and
technology industry association, which has made a sector-wide
commitment to the SDGs and created a low-carbon roadmap
• Key focus on gender equality
• Complete alignment between goals being prioritized and those
with the greatest positive impact
• Very little acknowledgement of negative impacts, particularly on
the environment and responsible consumption
FINANCIAL
SERVICES
76% 59%59% 53%54%
• Target setting is lagging behind
• There is very little acknowledgement of negative impact
or respondents are unaware of impacts
• Products and services are being developed to support the SDGs
• On a system level, social goals have some focus
• Only 3% acknowledge negative impacts on Goal 10: Reducing
Inequalities, despite the sector being instrumental to advancing
this SDG
FOOD, BEVERAGE
AND CONSUMER
GOODS
72% 67% 57%78% 50%
• Only 21% believe the sector is moving fast enough to meet
the SDGs
• Only 29% of companies have conducted assessments of the
negative impacts along the supply chain
• 45% of the companies are yet to set targets to progress Goal 3:
Good Health and Well-being, despite strong links
• The current market is fragmented and does not support smaller
players to act sustainably
HEALTHCARE AND
LIFE SCIENCES
72%94% 72% 67% 61%
• Only 75% of companies are taking action on the SDGs
(lowest of all systems)
• Strong alignment between priority goals and those where the
sector has a positive impact
• A large percentage of companies are setting targets but are
behind on developing products and services to support them
ENERGY, NATURAL
RESOURCES AND
BASIC MATERIALS
66% 58%69% 66% 55%
• A high percentage of companies are setting targets to
advance priority SDGs
• However, only 6% have an emissions reduction target approved
by the Science Based Targets initiative
• Goal 13: Climate Action is the #1 priority, yet 11% of companies
feel that this is an area of significant negative impact
59% 56% 54% 52% 52%
INDUSTRIAL
MANUFACTURING
• SDGs where companies feel they are having the most positive
impacts are well aligned with those goals being prioritized
• Target setting is variable across the SDGs, e.g. only 23% have an
SBTi approved target despite Goal 13: Climate Action being a
top priority
• There is a high level of action or engagement; many companies
are developing products and services to support the SDGs
75% 63%71% 58% 50%
MOBILITY AND
TRANSPORTATION
• A large number of businesses are taking action, but only 50%
are aligning core business strategy with the goals
• Climate action is both a priority with targets set to progress it
and an area where negative impacts are being acknowledged
• Target setting is lagging behind in other areas
• On products and services, the system performs more consistently

121
LEAST PRIORITIZED SDGs
11% 9% 9%
• Need to recognize and report on negative impacts on the SDGs
• Need to achieve more scale with the shared low-carbon
roadmap at industry level
• Need for more collaboration to solve shared problems
20% 17% 8%
• Common impact measurement framework of financial
investments for the SDGs
• Better connection of green finance and digital services
• Centralized system to identify public and private investment
flows, aligned with country development plans
22% 20% 17%
• Need for regulation to level the playing field and encourage
innovation
• High cost of sustainable products must be addressed
• Accelerate digitalization and improve traceability to support
transparency across the value chain and drive producer
responsibility
22% 17% 6%
• Although there is a strong vision to deliver on the SDGs, the
industry does not have an agreed approach for transition
• Need for standardized metrics to track progress against priority
SDGs and support impact-based reporting
• Multilateral collaboration to address the SDGs must be scaled
23% 20% 14%
• Strategies to mitigate negative impacts on SDGs
• More collaboration needed to standardize metrics and reporting
• Long-term ambition needs to be translated into near-term steps
12% 9% 8%
• Standardized metrics to track collective action and progress
towards the SDGs are required
• A conducive policy environment is needed that supports clean,
socially inclusive and healthy industry processes
25% 21% 8%
• Industry-government collaboration needed to create a roadmap
for success for this system
• Increase collaboration throughout the value chain
• Need for greater action on human and labour rights
The percentages below reflect the extent to which companies participating in the UN Global Compact Annual Implementation
Survey 2020 indicated they are currently prioritizing each SDG. There are high levels of commonality amongst the most prioritized
SDGs across systems. This means that a number of SDGs are left behind with very few companies focusing on them and are
therefore an area where greater attention is needed (e.g. Goal 1, 2, 10, 14 and 15).
ENABLERS OF SYSTEMIC CHANGE

122
More needs to be done to help establish the link between the
global targets and metrics of the SDGs and the national level
and business level. Otherwise we have no way of measuring
how everything adds up. — Singtel
UN Global Compact
Communication on
Progress will be
upgraded in 2021 with
enhanced questions on
the Ten Principles and
the SDGs, indicating
relevant actions to drive
sustainability. It will
be delivered through
an open database
to facilitate easy
aggregation and
evaluation of data and
will be supported by
a number of integrity
enhancements, such
as random spot-checks,
to raise accountability
Recurring themes across the systems
An operating environment that incentivizes
SDG action is essential
The interview data emphasized the importance
of creating the right regulatory framework that
provides a level playing field among businesses
and distributes the cost of innovation more fairly
among actors in the system. For instance, the
financial services system emphasized that more
blended finance with Governments would be
a key enabler in the Decade of Action. Carbon
pricing initiatives only covered 20 per cent of
the world’s greenhouse gas emissions in 2019
and there was a call from interview participants
to enhance this, especially from the energy and
finance systems participants.
Lack of science-led regulation and supportive
public policy were cited as key barriers that
businesses face as they aim to scale business
action. Indeed, many interview participants
called for business to be recognized as an "equal
partner" at the table where decisions are made
and the voice of business to be echoed when
setting the policy agenda.
Enhancing demand from customers and
consumers to generate the right market signals
for businesses to respond to across the value
chain is also required.
More engagement of the finance industry to
incentivize and fund innovation and action that
supports the SDGs
The availability of financing to support delivery
of the SDGs was also cited as a key barrier for the
telecommunications and technology, mobility
and transport, and healthcare and life sciences
systems. More engagement by the finance
industry to incentivize and fund innovation that
supports business SDG action is required.
"More work is needed to understand how the
private sector is impacting the SDGs and what
we can do as a community, or as a sector or group,
to help companies enhance positive impacts and
restrict negative ones."
Despite a high level of awareness of the scale of
the challenge and the ambition required to meet
the SDGs by 2030 (84% of survey respondents),
only 46 per cent say they have aligned their core
business strategy with the SDGs. This shows a
fundamental gap in embedding the SDGs in
core business.
"The SDGs are not designed to fit into
business."
Create industry-specific, business relevant SDG
goals/targets/ambitions
Businesses struggle to identify an ambition level
they can work towards that supports the SDGs.
This is in part because the targets within each
SDG are not expressed in a way that is tangible
for business and easy to operationalize. As well
as difficulty in translating the SDGs into action,
businesses are also unclear on how their
individual actions and outcomes contribute to
wider sector-level progress and ultimately relate
to systemic progress towards the SDGs.
Recurring themes shed light on the enablers that businesses consider will help them to enhance action
on the SDGs.

123
We need
hundreds of
thousands
of business
transforming
their way of
operating to
accelerate
action.
"We need hundreds of thousands of businesses
transforming their way of operating to accelerate
action."
However, there is some good progress happening
across different systems to help define a vision
and level of ambition: the telecommunications
and technology system reported the industry-
wide Net Zero Roadmap as good practice. In the
maritime industry, IMO has adopted a roadmap
for the decarbonization of the shipping industry
with defined levels of ambition. The steel
industry adopted a certification scheme
this year, ResponsibleSteelTM, to encourage
responsible, low-carbon steel making.
Reduce complexity of initiatives and rally around
common ambitions, especially for social goals
While ambition levels are being set for climate,
the research clearly shows that progress in
organizing systemic change in other areas,
especially on those SDGs least prioritized by
business (Goal 15: Life on Land, Goal 10:
Reduced Inequalities) is lagging behind. This is
because companies struggle to see a tangible
link with business-as-usual.
It is not a surprise, then, that most companies
prioritize Goal 8: Decent Work and Economic
Growth, for example, with its clear links to business.
Goals such as Goal 1: Zero Hunger (18%), Goal 2:
No Poverty (22%) and Goal 10: Reduced
Inequalities (33%) are all less tangible for
business and therefore less prioritized for action.
Many businesses, especially in the financial
services system, called for more clarity and
simplification of sustainability frameworks to
measure impact on delivering the SDGs, especially
if action on social goals is to take place.
"More needs to be done to help establish the
link between the global targets and metrics of
the SDGs and the national level and business
level. Otherwise we have no way of measuring
how everything adds up" (Singtel).
Focus on delivering context-specific outcomes
Interview participants highlighted that
Communication on Progress (COP) is a reporting
framework referenced in their sustainability
disclosures, but this has limited impact on how
companies address issues on the ground.
Only one-third of survey respondents stated
COP had an impact on how their business is
addressing the four areas of the Ten Principles
(human rights, labour, environment and anti-
corruption). Businesses can deliver impact by
scaling action to progress on the most material
SDGs in the countries where they operate.
"There is a risk of having too many topics that all
need major change. People have said let’s get
climate right, but there is a risk the other SDGs
are parked to come later. People work on urgent
issues first and wait on the outcome, then pick up
the rest later."
SDG Ambition provides a set of ambitions that all
companies should align their goals and targets
with, across seven areas that encompass the Ten
Principles and the SDGs. The SDG Ambition
accelerator programme will be rolled out as a
collaboration between the UN Global Compact
Office and Local Networks around the world with
a view to mainstream this SDG Ambition target
setting and implementation. Global accelerator
programmes will also be delivered in partnership
with the Local Networks on Climate 1.5°C,
Gender Equality and SDG Innovation initiatives.
SDG AMBITION
https://www.unglobalcompact.org/take-action/sdg-ambition

124

125
A CALL TO ACTION FROM THE UN GLOBAL COMPACT CHAPTER 7
7A CALL TO ACTION
FROM THE
UN GLOBAL COMPACT

126
A CALL TO ACTION FROM
THE UN GLOBAL COMPACT
With less than 4,000 days remaining until the 2030 target, businesses urgently
need to accelerate transformation towards a sustainable future and address the
interconnected and growing challenges to health and well-being caused by
inequality and climate change.

127
A CALL TO ACTION FROM THE UN GLOBAL COMPACT CHAPTER 7
Looking forward to the
Decade of Action
Content for this section was provided by the UN Global Compact
Leading companies are already influencing their sectors, peers and Governments to step up and turn
ambition into action and policies. It is time for all companies to drive the transformational changes
required to create the world we want. We call on all companies to:
• Fully integrate the Ten Principles: implement the Ten Principles deep into business strategies,
operations and value chains as a foundation for driving sustainability.
• Raise SDG Ambition: raise ambitions to meet the needs of society and the planet by fully integrating
sustainability informed by a principled-based approach to the SDGs.
BUSINESS BENCHMARKS FOR THE DECADE OF ACTION:
Gender balance at all levels of management
100 per cent of employees earn a living wage
Science-based emissions reduction targets in line with a 1.5°C pathway
Net-positive water impact in water-stressed basins
Zero waste to landfill and incineration
100 per cent resource recovery, with all products and materials recovered and recycled
or reused at end of life
Zero discharge of pollutants and hazardous materials
Land degradation neutrality, including zero deforestation
100 per cent of raw materials sourced sustainably according to the highest possible standards
Zero instances of bribery
• Advocate for Ambitious Policies and Engage in Collective Action: the change we need to see
in the Decade of Action will not happen through incremental improvements and adjustments
to ‘business-as-usual’. Along with these ambitious changes, we need more CEOs to advocate for
SDG-aligned policies and influence national plans to deliver the Paris Climate Agreement by
illustrating their own ambitious commitments. Only by working together — across business, finance,
civil society, UN and Governments — will we be able to tackle the world’s biggest challenges.

128
The state of our world:
a UN Global Compact perspective
NOT ON TRACK TO MEET
THE 2030 DEADLINE
Progress had been made in some areas: extreme
poverty and child mortality had been reduced
by half1
; access to electricity in the least
developed countries had doubled2
. Economies
had bounced back to the levels recorded before
the 2008 financial crisis, with increased labour
productivity and employment rates3
. The
underlying trend was worrying though because
social inequalities were widening for more than
70 per cent of the global population4
, exacerbating
the risk of divisions and hampering economic and
social development. Growth and rising employment
were largely carried by low-paid, low-quality and
low-security jobs5
, with more than half the world’s
population — 4 billion people — not covered by
any social safety net6
. Worst impacted were
women: according to the World Economic
Forum’s 2020 Gender Gap Report7
, it would take
257 years to achieve economic gender parity — or
ten generations of women.
At the same time, global warming and
overconsumption continued to test the limits
of the Earth’s natural resources, threatening the
health, well-being and livelihoods of millions of
people. The World Health Organization called
out that air pollution alone already caused 7
million deaths annually8
and global hunger was
on the rise again due to climate change9
. The
Intergovernmental Panel on Climate Change
(IPCC) issued a special report warning of the
implications of global warming beyond 1.5°C
over pre-industrial levels, cautioning that the
difference between 2 °C and 1.5°C could be a
matter of life and death for millions of people10
.
COVID-19 EXPOSED THE FRAGILE NATURE
OF PROGRESS TOWARDS THE SDGs
Then came the COVID-19 pandemic. As the
coronavirus sweeps across the world, the fragile
nature of our progress has been exposed.
The hard truth is that our failure to create a
more socially just world before COVID-19 has
significantly worsened the current crisis and will
hamper our ability to recover faster as a global
community.
The virus has sent shockwaves through the
global economy, deteriorating already serious
inequalities. The International Monetary Fund
(IMF) estimates that the ‘Great Lock-Down’
recession could shrink the global economy by
more than 3 per cent11
, and according to the
World Bank, the pandemic could push about 49
million people into extreme poverty in 202012
,
reversing two decades of poverty reduction.
At the end of the second quarter of 2020, the
equivalent of 305 million full-time jobs had
been lost, with ILO warning that about 1.6 billion
people in the informal sector could be at high
risk of losing their jobs due to COVID-1913
.
Many of them will be women living on the brink
of extreme poverty without any rights or social
protection.
1 United Nations Department of Economic and Social Affairs (UNDESA) Special Edition: Progress towards Sustainable Development Goals Report
of the Secretary-General, New York 2019
2 Ibid
3 Ibid
4 United Nations Department of Economic and Social Affairs (UNDESA) World Social Report 2020
5 Organisation for Economic Co-operation and Development (OECD) Compendium of Productivity Indicators 2019
6 International Labour Organization (ILO) World Social Protection Report 2017-2019: Universal social protection to achieve the Sustainable Development Goals
7 World Economic Forum Global Gender Gap Report 2020: Mind the 100 Year Gap
8 World Health Organization (WHO) Public Health, Environmental and Social Determinants of Health, Issue 63, March 2014
9 Food and Agriculture Organization (FAO)
10 Intergovernmental Panel on Climate Change (IPCC) Global Warming of 1.5°C – a special report on the impacts of global warming of 1.5°C above pre-industrial
levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable
development, and efforts to eradicate poverty, June 2019
11 The International Monetary Fund (IMF) 2020 World Economic
12 The World Bank Blogs – The impact of COVID-19 (coronavirus) on global poverty, and why sub-Saharan Africa might be the region hardest hit, April 20, 2020
13 International Labour Organization (ILO) – press release 29 April 2020: ILO: As job losses escalate, nearly half of global workforce at risk of losing livelihoods

129
INTO THE DECADE OF ACTION CHAPTER 7
As we come together to rebuild our economies
from this unprecedented crisis, we must draw
from the most important lessons from COVID-19:
That the human community is completely
interconnected and interdependent; that without
solidarity, especially with those most vulnerable
among us, we all lose; and that cross-border
challenges such as COVID-19 call for a coordinated
multilateral response that unites all sectors — public
and private — around a shared set of values
and principles.
RECOVERY STARTS BY REBUILDING
TRUST IN BUSINESS
The 2020 Edelman Trust Barometer14
showed
that a growing sense of unfairness in the system
was driving distrust across institutions. And in
May, a special COVID-19 update of the 2020
Edelman Trust Barometer15
showed that 67 per
cent of respondents believed that COVID-19
exacerbated these inequalities. However, while
trust in institutions grew during the pandemic,
wide-held disappointment was voiced in business
and its leaders: half of all people felt that business
failed at putting people before profits; and
more than 60 per cent felt that business failed at
protecting their employees’ financial well-being
and safeguarding their jobs, as well as helping
their smaller suppliers or business customers to
stay financially afloat. Fewer than one in three
respondents believed CEOs did a good job in
responding to demands on them placed by the
pandemic.
Despite the twin health and economic crises,
people are, however, strikingly optimistic that
long-term, positive change will emerge. More
than two-thirds of respondents say they believe
the pandemic will result in valuable innovations
and improvements in how we work, live and treat
each other, and they are calling for partnerships
between Government and business to pave
the way forward.
THE ROAD TO SOCIO-ECONOMIC
RECOVERY IS SUSTAINABLE
Boston Consulting Group recently conducted a
survey showing that 92 per cent of mainstream
investors, in the COVID-19 crisis, would put
companies’ economic recovery before
Environmental, Social and Governance (ESG)
commitments16
. But that is an entirely flawed
logic — economic recovery and sustainable
development are not opposites. Indeed,
companies with higher ESG scores fared financially
better during the COVID-19 crisis17
, and will
continue to do so as we set out to recover better.
Right now trillions of dollars are being infused
into the recovery of some the world’s largest
economies and to support developing economies
in the face of the COVID-19 pandemic.
Simultaneously, businesses across sectors, sizes
and geographies are revisiting their strategies
and business plans to recover lost territory and
adapt to a new normal. There has never been
a better time to jumpstart a worldwide
14 2020 Edelman Trust Barometer, 19 January 2020
15 2020 Edelman Trust Barometer Spring Update: Trust and the COVID-19 Pandemic, 5 May 2020
16 Financial Times (FT) 7 May 2020 – Investors row back on ethical principles, research shows / Boston Consulting Group (BCG) COVID-19 Investor Pulse Check #4,
May 1-May 3, 2020
17 HSBC – ESG stocks did best in COVID-19 slump, 27 March 2020 https://www.gbm.hsbc.com/insights/global-research/esg-stocks-did-best-in-corona-slump

130
transformation towards a more inclusive and
sustainable net-zero economy that will enable
us to recover better and become more resilient.
Ambitious climate action could unleash an
economic upside of US$ 26 trillion and create
65 million climate resilient jobs towards 203018
.
And according to the International Renewable
Energy Agency (IRENA), a decarbonization path
could creative massive socio-economic gains,
generating savings of between US$ 50 trillion to
US$ 142 trillion by 2050, quadrupling renewable
energy jobs to 42 million and adding tens of
millions more jobs in related sectors, while at the
same time producing a 13.5% rise in global welfare
indicators such as health and education19
.
THE STATE OF PROGRESS AMONG UN
GLOBAL COMPACT PARTICIPANTS
The 2020 UN Global Compact annual survey
provides a baseline for how business across all
sectors can ramp up efforts to create a new
sustainable normal.
While 84 per cent of UNGC business participants
take some form of action on the SDGs, goal
setting and impact are not ambitious enough:
only 39 per cent of businesses are setting goals
that are sufficiently ambitious, science based and
aligned with societal needs and only 46 per cent
have aligned the Goals with their core business.
And while 90 per cent of companies have
policies covering all of the Ten Principles of the
UN Global Compact, only 26 per cent assess
their risks against the Principles and even fewer
— 18 per cent — assess their impact. Among the
companies that conduct impact assessments,
the social areas are trailing behind, with only 18
per cent conducting impact assessments within
human rights and 29 per cent relating to labour.
Companies have become better at tracking
progress from their SDG actions (45 per cent
up from 40 per cent in 2019), with a majority of
companies covering SDGs targeting health (Goal
3), gender (Goal 5), decent work (Goal 8),
responsible consumption (Goal 12) and
climate action (Goal 13). Companies have also
become better at integrating the SDGs into their
operations (57% vs 41% in 2019), with 61 per
cent aligning their products and services with
the Goals. However, it is also true that the vast
majority of businesses maintain a narrow focus
on — mainly the positive — impacts of their own
operations on the SDGs. Only 31 per cent are
actively assessing their negative impacts on the
SDGs and only 13 per cent of companies act
through their suppliers, while even fewer — 10
per cent — consider the use of their products as
an SDG responsibility.
According to the UN Global Compact annual
survey, fewer companies drive advocacy for the
Goals — 35 per cent in 2020 vs 53 per cent in
2019 — and fewer work through partnerships —
52 per cent in 2020 vs 64 per cent in 2019.
COVID-19 CALLS FOR A NEW NORMAL
Many businesses right now are fighting for their
survival and a looming global recession is forcing
companies and governments to think very
short-term. It can be tempting to turn the focus
inwards and deal with COVID-19 now, while
returning to a focus on sustainable development
‘when we can’. But as we set out to recover from
COVID-19 the world needs more, not less
sustainability.
The COVID-19 pandemic starkly exposed the
vulnerability of workers around the world and
the sustainable recovery must necessarily start
by business stepping up their ambition to ensure
18 Global Commission on the Economy and Climate – The New Climate Economy, 2018
19 International Renewable Energy Agency (IRENA) Global Renewables Outlook: Energy Transformation 2050, April 2020

131
INTO THE DECADE OF ACTION CHAPTER 7
access to decent work, living wages and social
protection – also in the global supply chain.
The pandemic also called out the
interconnectedness of issues across health,
social and economic development. In a post-
COVID-19 world, business must deal decisively
and transparently with those issues that make
us all unnecessarily vulnerable to this and future
crises, carefully assessing and accounting for
every business touch-point across the value
chain and in the supply chain, and how it may
impact the health of planet and people —
positively and negatively. A recent Harvard study,
for example, found that long-term exposure to
air pollution may significantly increase the risk
factor from dying of COVID-1920
. Efforts to
reduce air pollution, is therefore essential to
decrease vulnerability in the population to the
virus as well as climate change.
Some of the most forward-looking businesses
are setting the pace for a new climate ambition.
Within the past year, 185 UN Global Compact
companies21
— collectively representing over 5.9
million employees, spanning 36 sectors and with
headquarters in 37 countries — have responded
to the UN Secretary-General’s call to climate
action committing to set Science Based Targets
aligned with a 1.5°C future. With a combined
market capitalization of over US$ 3.8 trillion, and
representing annual direct emissions equivalent
to the annual total CO2
emissions of France,
we are approaching a real tipping point for a
net-zero economy.
It is clear that no business, no sector, no nation
will be able to exit this crisis on their own. The
business voice is critical for a recovery that builds
on multilateral cooperation and solidarity and
the UN Global Compact invites all businesses to
join the growing number of corporate activists
for a new more sustainable normal. In May 2020,
UN Global Compact, together with its partners
in the Science Based Target initiative (SBTi),
mobilized the largest-ever UN-backed CEO-led
advocacy effort, urging world leaders to build
net-zero climate targets into COVID-19 recovery
plans and stimulus packages. Behind the state-
ment were more than 160 CEOs of the world’s
leading businesses, representing more than
US$ 2.4 trillion in market capitalization. Even in
the face of economic shock from the coronavirus,
their commitment is unwavering.
SUSTAINABILITY IS LEADERSHIP
To truly succeed in driving sustainability outcomes,
organizations need to focus on making sustainability
sustainable. This is so much more than a matter
of strategy, policy and process — it is fundamentally
about leadership and people. If organizations
are a collection of individuals working together
on a common purpose and corporate culture
is a manifestation of their shared beliefs and
behaviours, then embedding and identifying
employees and leaders across the organization
who are motivated to drive sustainability and
have the skills and experience to do so is the
surest path to long-term success.
To lead a transformation of this scale and nature
requires a high degree of legitimacy, personal
impact and authenticity that all stems from the
personal commitment to making the world
a better place.
Leaders on boards and in the c-suite have a
huge opportunity to make sustainability central
to their organization’s culture of leadership. How
companies develop and select the leaders of
tomorrow will have a lasting impact on our
collective progress against sustainability goals.
20 Harvard T.H. Chan School of Public Health – Air pollution linked with higher COVID-19 death rates, updated article 5 May 2020
21 UN Global Compact Business Ambition for 1.5°C – Our only future

132
APPENDIX:
METHODOLOGY,
PROJECT TEAM
AND REFERENCES

133
METHODOLOGY, PROJECT TEAM AND REFERENCES APPENDIX

134
Methodology
The underlying premise of the research is that we
know that the Sustainable Development Goals
will not be delivered by ‘business as usual’ or
small incremental improvements. We also know
that individual organizations cannot deliver the
change required on their own — they need to
work with others in their value chain as well as in
their industry and beyond to create the systemic
change that is needed, if we are to deliver the
SDGs in this Decade of Action.
By researching the current state and role of
business contribution in sectors that correlate to
systems, we can get new and more business-
relevant insight into the current status, the action
required and associated barriers and enablers.
The research focused on three fundamental
objectives:
1. Looking back on 20 years of embedding
the Ten Principles
Chapter 3 summarizes key milestones in the
20 year journey of the UN Global Compact.
Chapter 4 summarizes our key findings.
2. Progress on the SDGs and changes needed
to achieve them
Taking each system, we looked at how the SDGs
are currently being referenced, the current
state of coordinated action in each system
and enablers and barriers of systemic change.
These findings are summarized in chapter 5.
3. Looking ahead to the Decade of Action
and what companies need to do to propel
the Decade of Action
Based on our analysis, we summarized key
findings relating to the system enablers and
barriers in chapter 6, helping to inform what
companies can do to propel the Decade
of Action.
The report "Uniting Business in the Decade of Action" is based on a research frame developed by
DNV GL's sustainability experts on behalf of the UN Global Compact.

135
METHODOLOGY APPENDIX
Classifying the seven systems
The seven systems consist of sectors that are
aligned with the Industry Classification Benchmark
(ICB) taxonomy, which the UN Global Compact
has used for all annual surveys.
The systems groupings are aligned with existing
UN Global Compact research such as the
KPMG Sustainable Development Goals (SDG)
Industry Matrix.
We recognize that these classifications are not
perfect but are a pragmatic balance between
existing classification of data, incorporating all
participant industries and a manageable
number of systems groupings.
• Oil and gas
– Oil and gas producers
– Oil equipment, services and distribution
– Alternative energy
• Chemicals
– Commodity chemicals
– Specialty chemicals
• Basic resources
– Forestry and paper
– Industrial metals and mining
• Utilities
– Electricity
– Gas, water and multi-utilities
• Construction materials
• Aerospace and defence
• General industrials
• Electronic and electrical equipment
• Industrial engineering
• Industrial transportation
• Support services
• Software and computer services
• Technology hardware and equipment
• Fixed line telecommunications
• Mobile telecommunications
• Banking and capital markets
• Asset management
• Credit Unions, financial advisors, discount
brokerages and investment banks
• Venture capital and private equity
• Accountancy
• Beverages
• Food production
• Household goods and home construction
• Leisure goods
• Personal goods (clothing, accessories and footwear,
personal products)
• Automobile and parts
• Maritime system
• Rail system
• Travel and leisure
ENERGY, NATURAL RESOURCES AND
BASIC MATERIALS
• Medicine
• Bioscience
• Biotechnology
• Life sciences
• Pharmaceuticals
• Medical technology and supplies
• Hospital management
• Healthcare insurance and development aid
HEALTHCARE AND LIFE SCIENCESINDUSTRIAL MANUFACTURING
TELECOMMUNICATIONS AND TECHNOLOGY
FINANCIAL SERVICES
FOOD, BEVERAGE AND CONSUMER GOODS
MOBILITY AND TRANSPORTATION
7SYSTEMS

136
Information sources used in this report
1. The UN Global Compact Annual
Implementation Survey:
Participants in the UN Global Compact
self-report their progress via an annual survey.
Historical survey responses from 2010-2019
were used. In addition, new questions were
added to the 2020 survey. Respondents in
2020 represent 5 per cent of the UN Global
Compact Signatories.

2. Structured interviews with 40 Chief
Sustainability Officers or equivalent to gather
qualitative and quantitative data on the use of
the Ten Principles, the SDGs systems and the
role of UN Global Compact.

3. Case studies were provided by selected
UN Global Compact participants.
4. A sample of Communication on Progress
(CoP) disclosures were studied in order to
corroborate survey responses.
5. Desktop research was conducted to establish
a current understanding of SDGs and transition
needs that helped define the research frame
and inform and corroborate findings throughout
the report. Please see the list of references for
more detail.
DNV GL’s role: DNV GL was asked by the
UN Global Compact to provide an independent
view on the three objectives outlined on page
134. The results are based on our review of the
information and data provided by the sources
and are subject to the limitations of that
information. The report is intended to provide
insight and practical help for the UN Global
Compact and its participants to accelerate
and unite towards a Decade of Action.
The UN Global Compact provided content for
chapter 3 of the report, covering its history,
descriptions of key initiatives over the last years
and stories from their Local Networks. The UN
Global Compact also provided the content for
the call to action in chapter 7.
DNV GL expressly disclaims any liability or
co-responsibility for any decision a person or
an entity may make based on this report.

Systems % of total
participants
UN Global Compact
2020 Annual
Implementation
Survey responses
% of total
survey
responses
Difference
THE UN GLOBAL COMPACT ANNUAL IMPLEMENTATION SURVEY
Energy, natural resources and basic materials
Industrial manufacturing
Telecommunications and technology
Financial services
Food, beverage and consumer goods
Healthcare and life sciences
Mobility and transportation
Other
12%
34%
14%
11%
12%
4%
4%
9%
12%
26%
12%
11%
9%
4%
5%
22%
0%
8%
-2%
0%
-3%
0%
-2%
13%
75
161
73
67
54
24
28
133

137
PROJECT TEAM APPENDIX
This report has been prepared by DNV GL as a cross-disciplinary exercise between the
Sustainability team in DNV GL’s Business Assurance business area and DNV GL Group Centre,
in close cooperation with the United Nations Global Compact.
Steering Committee
Lise Kingo, Remi Eriksen, Ulrike Haugen
Core contributors from DNV GL
Jason Perks (research director)
Laura Dombi (research lead)
Amila Bojadzic (report lead)
Ellen Skarsgård (report lead)
Nichola Hutson
Dorothy Price
Core contributors from UN Global Compact
Sue Allchurch
Colleen Connors
Sean Cruse
Charlotte Ersboll
Lyubava Kroll
Jayoung Park
Katie Rolfes
Alexandra Tarazi
External contributors
Dan Holmes
Dave Knight
Project team
Photo/Icon credits: Page 3: Alex Treadway/Shutterstock Offset. Page 4: UN Photo/Mark Garten. Page 5: Rafal Cichawa/
Shutterstock. Page 9: taka1022/Shutterstock. Page 10: Monty Rakusen/Getty Images. Page 11: Espen Sturlason. Page 12:
Earth Icon, Freepik.com. Page 13: Michael/Unsplash. Page 15: Joel Sheakoski/UN Global Compact. Page 23: Christopher
Burns/Unsplash. Page 24: Jaromir Kavan/Unsplash. Page 26: Getty Images. Page 28: Map, Freepik.com. Page 31: UN Photo/
JC McIlwaine. Page 40: Global Compact Network Brazil, Global Compact Network Germany, Global Compact Network
Bangladesh. Page 41: Global Compact Network Turkey, Global Compact Network Kenya, Global Compact Network Spain.
Page 42: Arun Raj/Unsplash. Page 44: Sander Crombach/Unsplash. Page 57: Pat Whelen/Unsplash. Page 58: Wissanu01/
Getty Images. Page 66: Shunli Zhao/Getty Images. Page 69: Christian Wiediger/Unsplash. Page 70: Adria Tormo/Unsplash.
Pages 77, 85,93,101,109,117: Thumb Icons, Freepik.com. Page 78: Jordan madrid/Unsplash. Page 78-79: Icons, Freepik.
com. Page 86: CDC/Unsplash. Page 94: Shutterstock/hxdyl. Page 102: Morteza F. Shojaei/Unsplash. Page 110: Joel Filipe/
Unsplash. Page 118: Chinaface/Getty Images. Page 124: Armon Ruetz/UN Global Compact. Page 126: Gustav Gullstrand/
Unsplash. Page 133: Thomas/Unsplash. Page 134: Shutterstock.

138
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DNV Report: 20 years UN Global Compact: Uniting business in the decade of action 2030

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