New research has unveiled that almost half of European companies believe that integrating the United Nations SDGs into their sustainability strategies has earned them a competitive edge.Â
A deep dive into the report’s findings
These findings were published in the latest ‘European Private Sector SDG Stocktake’ from the UN Global Compact. 1,422 European companies’ contributions to the SDGs were examined.Â
Businesses based in Spain, the UK, France, Italy, Greece, Switzerland, Bulgaria, Serbia, Turkey, and Ireland were included in the analysis. The survey highlighted there are a growing number of European companies actively embedding the UN SDGs into their plans.Â
It revealed that 96 percent of respondents are aware of the United Nations SDGs, with 69 percent of them demonstrating in-depth knowledge. An additional 27 percent had a more superficial understanding.Â
Moreover, just 5 percent of the companies were unfamiliar with the SDGs prior to taking part in the survey. The survey shared that 6 in 10 of the companies have adopted a sustainable development strategy that integrates the SDGs, while 18 percent are addressing the goals even without having a formal strategy in place.Â
In saying that, almost 12 percent of businesses have sustainability plans that do not yet encompass the SDGs, and a further 12 percent operate without any sustainability strategy at all.Â
When it comes to specific SDGs, 44 percent of respondents reported action on gender equality (SDG 5), sustainable economic growth (SDG 8), and climate change mitigation (SDG 13).Â
However, certain goals, like ocean preservation (SDG 14), food security (SDG 2), and sustainable cities (SDG 11), receive significantly less focus, with just 11 percent, 13 percent, and 17 of companies, respectively, taking steps in these areas.Â
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Economic benefits of integrating United Nations SDGs
The incorporation of SDGs is also translating into measurable economic advantages for many businesses. One-third of the respondents said the positive impact of integrating the SDGs on economic performance was moderate, and 26 percent believe it has been significant.Â
A small percentage (1 percent) reported a negative impact. Additionally, 42 percent of companies believe that adopting the SDGs has enabled them to gain a competitive edge. It is worth noting that 26 percent of respondents have not yet measured the impact of SDG integration on their businesses.Â
While these are positive trends, many companies still struggle with calculating and evaluating their SDG-related efforts. The stocktake reveals that 26 percent of European companies do not measure or assess their contribution to sustainable development in any form.Â
Most (41 percent) have developed performance indicators, but they have yet to set measurable, time-bound, and public objectives. A third of companies have implemented comprehensive performance indicators alongside time-bound and public objectives.Â
The arrival of the Corporate Sustainability Reporting Directive (CSRD) is also driving SDG integration. Among the companies affected by the CSRD, 87 percent plan to explicitly reference the SDGs in their sustainability reports. On top of that, a third of companies cite compliance with sustainability regulations as a critical reason for integrating the SDGs.Â
Final thoughts
The latest European Private Sector SDG Stocktake paints a promising picture of SDG integration among European businesses, underscoring the potential competitive edge that sustainability strategies can bring. While the findings highlight progress, challenges remain in fully embedding, measuring, and reporting on these initiatives.Â
Looking ahead, the key to realising the full potential of SDG-driven strategies will lie in closing the gap between intention and actionable, quantifiable impact. For many European businesses, the road to sustainable growth now depends on not only committing to these goals but also ensuring that progress is tracked, reported, and continuously improved.
