UNGC finds CEOs off track for 2030 goals
January 10, 2023
CEOs must accelerate their work in sustainability in order to achieve the Sustainable Development Goals (SDGs) by 2030, according to new research by the United Nations.
The UN Global Compact-Accenture CEO Study (UNGC) revealed the world cannot deliver the SDGs by their deadline at the current trajectory.
This reflects the findings of an ealier report by the Sustainable Development Solutions Network in 2022.
With only eight years remaining to achieve the SDGs, this year’s report discovered business leaders were severely off track to deliver on the sustainability and climate goals.
The study of 2600 CEOs across 128 countries and 18 industries found that energy-related CO2 emissions increased by 6% in 2021, which was the highest level ever.
As a result, the world is currently unlikely to meet the goals of the Paris Agreement, which seeks to limit global temperature rise to 1.5° Celsius by 2030.
Currently, the global temperature rise is expected to reach 2.5 ° Celsius by 2100.
Progress on electrification has also slowed as 679 million people worldwide are expected to be without electricity in 2030.
According to CEOs, impacts from the COVID-19 pandemic, Russian-Ukraine war, and broader geopolitical uncertainty are hindering sustainability progress.
The UNGC study revealed 87% of CEOs feel that current levels of geopolitical instability limit the world’s ability to achieve the SDGs.
The vast majority (90%) of CEOs also feel that limited support from government in building a resilient business is negatively impacting their ability to navigate current global challenges.
Contributing to the report, Susan Chodakewitz, president and chief executive officer of Nathan Associates, said: “We are at the midpoint of achieving the SDGs, and we are seeing a relapse in terms of democratic systems and economic achievements. When we look at the state of the world, we are moving backwards.”
Even though the global sustainability agenda is off-track, CEOs are continuing to embrace sustainability and keep the topic at the top of their agenda.
This is demonstrated as 63% of business leaders are preparing to launch new products and services for sustainability.
Over half (55%) of CEOs are also enhancing sustainability data collection across their value chains and 49% are investing in renewable energy sources.
As a result, CEOs remain optimistic that progress in sustainability will accelerate with 92% believing that the world will be able to achieve their SDGs by 2030.
Attitudes towards sustainability are also changing, which is driving this progression.
In 2013, only 19% of CEOs strongly agreed that they were accountable for their firm’s sustainability performance. In 2022, that percentage increased significantly to 72%.
Chief Executive Officer of Coty, Sue Y. Nabi, told the report: “Sustainability is the ultimate driver of innovation. I believe it is the most significant business imperative of our time.”
Last Updated: 20 January 2023