Improving companies' impacts on sustainable development: A nexus approach to the SDGS

Abstract

Companies play a decisive role in achieving the Sustainable Development Goals (SDGs). However, most of the world's sustainable development challenges are interconnected and systemic in their nature. How can companies ensure that their strategies effectively contribute to sustainable development? This interdisciplinary paper draws from the social‐ecological systems, corporate sustainability, and sustainability sciences literatures, in order to introduce a nexus approach to corporate sustainability. A nexus approach induces companies to assess and manage their positive and negative interactions with the SDGs—which may arise directly and indirectly—in an integrated manner. Instead of treating SDGs as isolated silos, a nexus approach aims to advance multiple SDGs simultaneously (creating “co‐benefits”) while reducing the risk that contributions to one SDG undermine progress on another (avoiding “trade‐offs”). Through managing the interactions between the SDGs, a nexus approach to corporate sustainability enables companies to improve their societal and environmental impacts. This nexus approach is a step towards developing a theory of sustainability management that helps companies improve their impacts on sustainable development. Such systemic corporate sustainability strategies are sorely needed to drive progress towards achieving the SDGs and to safeguard companies from “SDG‐washing.”

Voluntary disclosure of Sustainable Development Goals in mandatory non‐financial reports: The moderating role of cultural dimension

“…However, despite the absence of specific legal requirements on SDG reporting, many organizations have started integrating SDGs in their non‐financial declarations on a voluntary basis (Pizzi et al., 2021; The Alliance for Corporate Transparency, 2020; Van Zanten & Tulder, 2021). In this sense, the lack of specific rules did not limit the development of new reporting practices by organizations interested in disclosing their contribution to the 2030 Agenda.…”

“…In detail, late adopters could integrate SDGs into their reports to avoid the reputational risks related to the lack of non‐financial information about the SDGs. However, the comprehension of the dynamics related to companies' behaviors cannot be analyzed without an in‐depth analysis of the main institutional factors that have impacted business strategies (Van Zanten & Tulder, 2021). In this sense, despite the central role of managerial practices, the comprehension of the role covered by cultural factors on SDG reporting practices represents a central item for academics, policymakers, and investors interested in evaluating the contribution provided by the private sector to the 2030 Agenda (Bebbington & Unerman, 2020; Nilsson et al., 2016).…”

“…In this sense, the choice to integrate SDGs within non-financial declarations represented a voluntary practice driven by personal orientation and beliefs about the need to contribute to the 2030 Agenda (Bebbington & Unerman, 2020;Silva, 2021). Thus, similarly to the theoretical reflection proposed by Nilsson and colleagues, the disclosure of the specific contribution to the SDGs represents a voluntary activity influenced by geographical, temporal, and cultural factors (Rosati & Faria, 2019b;Van Zanten & Tulder, 2021). The latter mirror both intrinsic and extrinsic entrepreneurial and managerial motivations that drive implicit-explicit communicative stances.…”

Situating Health Within the 2030 Agenda—A Practical Application of the Sustainable Development Goals Synergies Approach

“…Although a detailed description of them is beyond the scope of this policy brief, remarkably few have focused on health (see Bennich et al [ 14 ] and Miola et al [ 15 ]). However, some examples exist, van Zanten and van Tulder [ 16 , 17 ] used network theory to conclude that some economic activities seem to have detrimental effects on health related targets. Using simulation modelling, Collste et al [ 18 ] showcased that increased investment in photovoltaics in Tanzania could positively affect life expectancy.…”

Exploring the Impact of Climate Change on Arctic Shipping through the Lenses of Quadruple Bottom Line and Sustainable Development Goals

“…For example, SDG#6, clean water and sanitation, has direct implications on the environment, which in turn impacts the society (human health) and ultimately the economy. As emphasized in [27], achieving SDGs calls for prompt and honest policies and actions by companies in the marketplace. Most of the 17 SDGs are highly relevant and have implications for ArSh, demonstrating the timely relevance of this topic.…”