Dansk
Dear reader. If you're expecting a column about the necessity of the SDGs for humanity, read no further. If, on the other hand, you want to read about why and how the SDGs can make your business stronger - stay tuned.
First, a few facts: Last year, a survey from Epinion showed that 79% of citizens in Denmark are aware of the SDGs. The question is, of course, whether this relatively high level of awareness has an impact on customer and consumer behavior.
My claim is that if you ask the same respondents to name just 3 of the 17 SDGs, very few would get it right. And to put it bluntly: When did you choose a milk in the supermarket because it contributed to SDG 11, 13 or 15? So why put effort into it as a company?
The answer is that the SDGs can't be used to polish your company's halo. However, they can be used to ensure that your business is relevant in the long term. In other words: The SDGs do not belong in your marketing department, but in your engine room.
ALSO READ: Make the strategy down to earth without losing altitude
This is because the SDGs have gone from being pure goals to global megatrends - partly because they are implemented nationally, regionally and globally in everything from legislation to procurement requirements. And the minimum requirements are constantly being raised.
One example is the government's recent agreement on a green tax reform that makes CO2 emissions significantly more expensive for a number of companies. The political discussion was not whether the tax was too high, but whether it was too low for some industries. The trend is only going one way.
A more down-to-earth example is Formula 1. In the early 90s, I had the pleasure of helping a then young talent - now former Formula 1 driver - Jan Magnussen with his first events and sponsorships. Back then, race cars were roaring gas guzzlers. In the late 2000s, hybrid engines were introduced to the most forward-thinking teams. Last year, Formula 1 announced that races will be run on 100% sustainable fuel from 2025. Even on the black racetrack, going green has become a premise.
Development reminds me a bit of the creation of a cotton candy in Tivoli. Once the pink layers have started to stick to the stick, the next layers go quickly.
This is also reflected in the recruitment of employees. We are now seeing a clear trend that the young generation is increasingly looking for meaningfulness in their career choices. And roughly speaking, they only need to read the first two paragraphs of the job ad to decipher whether your company is using the SDGs as a marketing stunt or in the engine room.
It narrows the recruitment base and thus the competencies of companies that cannot connect their strategic efforts to solving today's global challenges. First gradually - then in a hurry.
ALSO READ: The good generational change is full of emotions
As a rule of thumb, if your work on the SDGs can be done in a couple of long days, you should drop it. If you want them to matter, you need to take them seriously. It takes effort.
Fortunately, there are so many targets for each SDG that many companies can see themselves in one or more of the goals. The key here is to stay true to your company DNA.
Window companies can rarely contribute to the goal of clean water. And few shoe manufacturers can help end hunger.
Instead, look at which of the goals your company already contributes to. For example, window companies and shoe manufacturers can both contribute to SDG 8 on decent jobs and economic growth in developing countries.
The next question is: What will it take for us to contribute even more? The question alone quickly triggers thoughts about new market opportunities, which of course need to be complemented by thorough situation analyses and well thought-out business cases.
A classic example is Grundfos, which used the SDGs in this way relatively early on. Among other things, this meant that the company redefined itself from a pump manufacturer to a global supplier of clean water. This created more business opportunities, but still within a clear strategic framework. Precisely because the change happened in the engine room and not in the marketing department, it has become a building block rather than bullshit bingo.
Less can do it too. But the prerequisite is that the SDGs and the whole sustainable approach is incorporated as a commercial compass in the company's strategy.
This column was published on Jyllands-Postens Finans and in Jyllands-Posten, Erhverv on July 28, 2022.
If you are interested in learning more about MakeMyStrategy™, you are always welcome to contact us. You can also try our popular Pro version HERE.