It is now widely accepted that the private sector, both companies and investors, is essential to accomplishing the 169 targets in the 17 Sustainable Development Goals(SDGs). Of course, there is a tension here. The SDGs are about making the world a better place. That is not the primary reason companies exist, although the state of the world matters to them. Thus, they should work to create a better world while still delivering the expected returns to their shareholders. This can be done by focusing on the material environmental, social, and governance (ESG) issues that matter for value creation and knowing which SDGs and their targets will benefit. Choices must be made. As shown in a study by Mozaffar Khan, George Serafeim, and Aaron Yoon, high performance on these material ESG issues improves financial performance. High performance on these ESG issues will also contribute to the SDGs.
By: Dr. Bob Eccles
Read the complete article in: Forbes.com