SDG AMBITION INTEGRATION GUIDE Designing Business Systems for the SDGs In partnership with: ABOUT SDG CONTENTS AMBITION Launched in January 2020 at Davos by UN Secretary-General, António Guterres, Introduction SDG Ambition aims to enable the world’s PG 6 leading companies to set ambitious goals and targets in the areas that will have the greatest business impact on the SDGs, and integrate sustainable development Business Integration into enterprise management processes and systems. This pairing of ambition for the Decade of and integration into business forms Action the foundational theory of change for PG 8 the initiative. To build a global movement, SDG Ambition aims to engage leaders across 1,000+ From Raising companies in 40+ countries over the next two years, enabling the world’s leading Ambition companies to set more ambitious targets to Business and advance the integration of the SDGs Integration into core business systems and reporting. PG 10 Together, companies will raise their level of ambition to meet the needs of society and planet by fully integrating Preparing for Integration sustainability into their company, informed and inspired by the SDGs. PG 18 LEARN MORE AT unglobalcompact.org/SDGambition Introduction to the SDG Ambition Benchmark Reference Sheets PG 20 HUMAN RIGHTS LABOUR ENVIRONMENT ANTI-CORRUPTION 2 NAVIGATING THE GUIDES SDG Ambition aims to enable companies to benchmark and advance the integration of the SDGs into core business management. SDG Ambition has released the following core documents: SDG AMBITION SDG AMBITION AMBITION INTEGRATION GUIDE GUIDE Setting Goals for Designing Business the Decade of Action Systems for the SDGs In partnership with: In partnership with: SCALING BUSINESS AMBITION GUIDE INTEGRATION GUIDE IMPACT FOR THE SETTING GOALS FOR DESIGNING BUSINESS DECADE OF ACTION THE DECADE OF ACTION SYSTEMS FOR THE SDGS Introduces the SDG Implementation Establishes the initial set of SDG Presents the approach through which Framework which guides companies Ambition Benchmarks that provide the 10 SDG Ambition Benchmarks to integrate the SDGs and the Ten direction for business action on the can be integrated into core business Principles of the UN Global Compact SDGs. Translating the ambition level processes and systems to enable into business strategy, operations, and of the SDGs into concrete aspirations effective measurement and manage- stakeholder engagement. for business, these benchmarks ment of sustainability performance. challenge organizations to set more Business leaders can use this publica- Business leaders can use this publica- ambitious goals and targets in the tion as an introduction to the SDG tion to identify the system opportuni- areas in which business is positioned Ambition initiative. This publication ties to integrate the SDGs, stimulating to have a substantial impact. also provides the guiding framework discussion with technology partners for companies to take greater action Business leaders can use this docu- to create business systems capable on the SDGs: anchoring ambition in ment to support their sustainability of delivering the insights needed strategy and governance, deepening strategy and set goals ambitious for impact. integration in operations, and enhancing enough to deliver the SDGs by 2030. stakeholder management. This guide is the second release of SDG Ambition: Introducing Business Benchmarks for the Decade of Action. BENCHMARK REFERENCE SHEETS Annexed with the two latest publications, the benchmark reference sheets bring all three core documents to life for each of the 10 SDG Ambition Benchmarks. The reference sheets provide illustrative details regarding the steps to integrate each of these benchmarks into a company’s business systems, as well as the key design decisions required to engage technology partners. Business leaders can use the benchmark reference sheets for guidance on each SDG Ambition Benchmark. 4 Photo: UN Photo/Jean-Marc Ferré UN GLOBAL COMPACT SDG AMBITION | 5 INTRODUCTION Integrating sustainability as other commercial priorities. Only 57 per cent of Enabling leaders to hardwire $2.9 trillion of business value and 6.2 billion hours of into core strategy, systems companies measure the SDG impact of their own the SDGs into business worker productivity globally in 2021.6 operations and only a minority extend this to their and processes suppliers (13 per cent), raw materials (10 per cent) or decision-making Central to organizations capitalizing on these into product use (10 per cent). opportunities to create systems of insight and action The SDG Ambition Benchmarks, presented in this The advent of the Fourth Industrial Revolution are enterprise software solutions that can maintain guide’s sister document Ambition Guide: Setting (4IR) enables leaders to break down longstanding Meaningful progress on the SDGs requires business to a global supply chain, predict equipment failures, or Goals for the Decade for Action, establish the level barriers and gain far greater visibility over their more deeply integrate the SDG Ambition Benchmarks identify new customer needs. These platforms are of ambition that is required by business to deliver on business, partners and products. Combinations of and associated reporting across their functions and the foundation of any modern competitive business the SDGs by 2030. disruptive technologies can drive newfound impact. processes. This includes all processes from product and the pursuit of richer insights has driven the rapid For example, The World Economic Forum estimates design, where over 80 per cent of a product’s impact growth and impact of enterprise software over the However, setting ambitious goals and targets that, when combined with other technologies such is typically determined, to supplier management and past 25 years. SAP systems, for instance, touch 77 per aligned with absolute benchmarks is the first as 5G and artificial intelligence (AI), the internet of customer engagement. cent of all worldwide business transactions today.7 step for businesses to deliver on the SDGs. Today, things (IoT) could help cut global emissions by sustainability is not treated with the same level 15 per cent.5 Now is the time for business systems, in conjunction of accountability, measurement or management with the 4IR technologies, to go to work for These technologies make decision making increas- sustainability performance. Businesses need to ingly agile for businesses, with data collection work with their technology partners to build systems “ enabling real-time insights and results for both Achieving business outcomes and improving operational and strategic opportunities. For and processes that put sustainability and social responsibility on par with other business metrics and sustainability performance cannot be separate goals. instance, research has found that augmented intel- accelerate the achievement of the SDGs. Through SDG Ambition, we are using innovation to ligence — people leveraging artificial intelligence through advanced tools and platforms — will create accelerate sustainability commitments that create measurable value for business, society and our planet. Julie Sweet “ Technology and software play a key role in achieving the CEO, Accenture SDGs. Tools, data and insights can help drive responsible consumption and production within the planetary boundaries, allowing us to transform towards low-carbon, circular economies. Christian Klein CEO, SAP 6 UN GLOBAL COMPACT SDG AMBITION | 7 BUSINESS FIGURE A SUSTAINABILITY MANAGEMENT FOR THE DECADE OF ACTION Driving action on the SDG Ambition Benchmarks requires deeper integration INTEGRATION of sustainability into business management FOR THE DECADE From To Business Value OF ACTION Static data collec- tion, with a reliance on lagging data for Real-time data capture within a digitized end-to- end system focused on Reduce processing time to accelerate business outcomes, while gaining Transforming Sustainability sustainability reporting purposes generating insights to guide action visibility over perfor- mance at any given Management point. The result is rapid optimization rather Example: Water compensation Example: Smart meters and tracking based on site water sensors implemented in a facility than slow reactions to bills at the end of month and to track water data real-time and reported annually automate management outdated data Aggregate data provid- Granular data and Pinpoint challenge ing statistics for sus- insights, down to areas to drive greater tainability performance product and transaction accountability, inform at company, region or level production and product site level portfolio decisions, and Business integration is about approaching The SDG Ambition Benchmarks provide the achieve lower-cost, sustainability management differently: moving absolute, measurable baselines which business can focused improvement from simple, and static data collection to intelligent track and manage against. For example, striving to Example: Waste generation Example: Waste generation projects tracked per facility and rolled up to measured by product line, and by systems of record, insight and action that can achieve a net-positive water impact may require more company level for reporting stage of production hardwire the SDGs into core business granular visibility over current water management, decision making. such as through real-time monitoring to track and optimize usage. Too often sustainability data is either not tracked Information silos with Integrated and cohesive Break down information at all or sits in siloed systems and spreadsheets As companies transition to become data-driven localized and inacces- data sets with visibility silos prompting action- across a business. This can result in “after-the-fact” enterprises — characterized by optimization, sible data and insight across business units able, organization-wide alignment with SDG impact for reporting purposes, prediction, and continuous learning — sustainability insights to empower instead of upfront definition of goals and metrics data should be made readily available and strategic action across that can then be advanced through ongoing accessible. Integration into core systems will enable the enterprise management across the organization. accountability and more agile decision making to Example: Headcount, progression Example: Compensation, direct innovation and investment toward achieving and compensation held within each headcount and recruitment data company SDG targets. business unit and/or geography fed into a central HR system, supported by analytics tools 8 UN GLOBAL COMPACT SDG AMBITION | 9 FROM RAISING FIGURE B SDG AMBITION APPROACH: FROM RAISING AMBITION TO BUSINESS INTEGRATION Strategic steps to operationalize the SDG Ambition Benchmarks AMBITION TO RAISING AMBITION BUSINESS 1 Define priorities for SDG impact and identify relevant benchmarks through Principled IDENTIFY RELEVANT BENCHMARKS BASED ON PRIORITIES INTEGRATION Prioritization 2 Set goals that match or exceed the benchmark’s level of ambition, either as a new goal NEW GOAL IN LINE WITH BENCHMARK’S LEVEL OF AMBITION or aligning existing targets How to Integrate the SDGs into Business Management 3 Identify the pathways which can be taken to achieve each goal, and shape actions and PATHWAY 1 PATHWAY 2 PATHWAY 3 initiatives to drive progress Actions Actions Actions There are key steps businesses can follow to SDG Ambition operationalize the SDG Ambition Benchmarks. The SDG Ambition Approach is designed as Elements of the Approach 4 Define sub-goals to track progress and guide communica- tion with stakeholders SUB-GOAL 1 SUB-GOAL 2 SUB-GOAL 3 directional support for business leaders as they consider how to action the SDGs through their The SDG Ambition approach was developed strategies and business implementation. with five key commitments: ▪ Ambition implementation: Practical 5 Establish performance metrics for evaluating progress and impact, which will Metrics Metrics Metrics Figure B outlines eight steps which all companies can steps leaders can take to integrate SDG inform decision-making and determine required data flows follow to action SDG Ambition. It can be helpful to Ambition into core business consider these steps across two components: Raising ▪ Platform agnosticism: Applicability Ambition and Business Integration. 6 to all business systems and technology Determine the business partners processes needed to enable Steps 1 to 4 are the focus of the SDG Ambition Guide, data flows and drive action BUSINESS BUSINESS BUSINESS BUSINESS PROCESS PROCESS PROCESS PROCESS “Setting Goals for the Decade for Action”. Companies ▪ Guidance Flexibility: Respect for should consult this guidance to inform how they set geographical, industry and system more ambitious sustainability goals and prioritize diversity to enable tailoring at the 7 opportunities to positively impact the SDGs. organization level Identify system opportunities to accelerate integration and SYSTEM SYSTEM SYSTEM ▪ Alignment with existing standards: unlock greater value and impact OPPORTUNITY OPPORTUNITY OPPORTUNITY Step 5 (Performance Metrics) acts as the bridge Directional KPIs and metrics drawn from between “Raising Ambition” and “Business leading reporting standards to inform Integration”, which is the focus of this document. In the following pages we explore steps 5 to 8, providing decision making, with methodology selection to be done by individual 8 Action the opportunities by making the Key Design Decisions (KDDs) for business KDD1 KDD2 KDD3 guidance on how to leverage technologies and companies system implementation enterprise software solutions to hardwire the SDGs into business decision making. ▪ Partner engagement: Stimulation for BUSINESS INTEGRATION dialogue with software providers and partners to guide product roadmaps 10 UN GLOBAL COMPACT SDG AMBITION | 11 RAISING AMBITION 1 Define 5 PERFORMANCE METRICS Priorities IDENTIFY RELEVANT BENCHMARKS BASED ON PRIORITIES 2 Set your NEW GOAL IN LINE WITH BENCHMARK’S LEVEL OF AMBITION Goals Performance metrics are the critical bridge between MAPPING DATA TRANSFORMATION goal setting and business integration. Defining key Achieving more granular insights on sustainability metrics will enable businesses to measure progress performance across business operations, suppliers, 3 Identify PATHWAY 1 PATHWAY 2 PATHWAY 3 on their goals. Once metrics are identified, companies products and customers may require a business can strive to enable their data flows to create to invest in new skills, processes or technologies. Pathways visibility and ongoing management of SDG impact. Companies should consider what metrics they can and Actions Actions Actions Actions track with the solutions they have in place today, and Key Considerations which they should prioritize in the future to enable further sustainability impact and business value. To 4 Define the Sub-Goals SUB-GOAL 1 SUB-GOAL 2 SUB-GOAL 3 INFORMING DECISION MAKING support companies as they mature their capabilities, the example metrics in the benchmark reference While metrics should be designed to support external reporting (in alignment with existing company sheets are broken into two levels: reporting and standards), their main objective is to ▪ Fundamental metrics, which all businesses enhance decision making. By enabling greater visibility should endeavor to track today, and are likely to into business impact and progress against their goals, be more readily available across the organization. leaders can take insight-driven action to optimize ▪ Aspirational metrics, which leaders should STEPS 1 TO 4 are crucial foundations as a business business and sustainability performance. strive to track in order to unlock greater business optimization and SDG impact. seeks to put raised ambition into action through business integration. SDG AMBITION ▪ What are the key indicators of progress against the SDG Ambition Benchmark? Only by kickstarting the business’ strategy develop- AMBITION ▪ What data will drive meaningful insights on sustain- ment regarding each benchmark by completing these GUIDE ability performance and improve decision making? steps can you move into an impactful approach to Setting Goals for business integration. Companies are encouraged to the Decade of Action move through the SDG Ambition documents as such, leveraging the Ambition Guide for support in setting goals before moving onto this document for detail on integrating these goals into core business processes and systems. EXAMPLE PERFORMANCE METRICS ▪ Fundamental: Water abstraction by source In partnership with: ▪ Aspirational: Water use by unit of production When identifying metrics for a net positive water impact goal, measuring your existing water abstraction by source is essential for a business to work towards a reduction in water consump- VIEW STEPS 1–4 IN tion. To inform decision making regarding production or product design, more granular metrics THE AMBITION GUIDE such as water use per unit of production are needed. These may require investment in technolo- gies such as IoT and sensors. 12 UN GLOBAL COMPACT SDG AMBITION | 13 6 BUSINESS PROCESSES 7 SYSTEM OPPORTUNITIES After defining the performance metrics, the next step is to ESTABLISHING ACCOUNTABILITY Moving beyond traditional sustainability management ENGAGING WITH THE map the metrics to processes through which the data can To ensure sustainability data is managed and used across requires intelligent systems of data collection, insight and TECHNOLOGY ROADMAP be collected, managed, and acted upon. action. “System opportunities” are the enablers of this. For the business, it is important to establish corresponding It is important to understand the technology landscape example, for a business to better measure and manage roles and responsibilities across relevant functions. This and upcoming innovations in sustainability performance land impacts in their supply chain, one system opportunity Key Considerations entails embedding sustainability data management responsibilities into roles, performance structures and would be improving traceability over suppliers through management. Companies may be able to embed sustainability requirements into existing planned data technologies such as geospatial mapping and satellite capability development. transformations or prioritize enhancements for key focus SOURCING DATA imagery. Such opportunities provide richer insights for ▪ Who should be responsible for the management of areas, like carbon or waste tracking. Engaging technology Selected metrics will likely require data to be collected businesses to use as they assess measures to improve sustainability data, and how can you build the right partners can support this exploration. from across the business. Understanding which processes their sustainability performance. capabilities and performance structures? ▪ What innovative solutions are due for release to may be recording relevant data points today, and where there are gaps, is crucial. In the example of the Science ▪ What governance is required to ensure reliable support aspirational data flows? Based Emissions Reduction benchmark, in order to data management? Key Considerations ▪ How can you influence the addition of new streamline tracking of scope 1 emissions, required functionality to the product roadmap? data is likely to sit across manufacturing, transport and ASSESSING FUNCTIONALITY TODAY logistics systems. Understanding where this data is Companies must understand their technology landscape EXPLORING EMERGING TECHNOLOGIES recorded and stored in each process is essential when today — both their existing systems of data management Finally, it is important to consider emerging solutions that seeking to advance integration and automate collection and available tools on the market. This assessment may could help advance sustainability insight and perfor- and management. highlight opportunities to utilize existing software func- mance for your company in the longer-term. For example, ▪ Where does the data sit and what processes are tionality. For example, when striving for gender balance, a quantum computing’s potential for greater insight into required to collect and analyze it? business may identify existing Human Resources system molecule behavior could help the agriculture industry functionality to pull data points on the uptake of flexible redesign ammonia fertilizer (currently responsible for up ▪ Do your systems currently track these data points work arrangements by gender despite not yet tracking to 5 per cent of global natural gas consumption).8 Leading and where do gaps exist? that metric in practice. Alternatively, a business may need companies in the sustainability transition will partner to look beyond their current business systems to the wider across the technology and scientific community to try and functionality on the market. bring these visions to life. ▪ What tools underpin systems of data collection and ▪ What emerging technologies could advance your management today? sustainability performance? ▪ What functionality exists in systems and available tools ▪ How can you help innovate the next generation of to support this business process mobilization? sustainability impact? EXAMPLE BUSINESS PROCESSES EXAMPLE SYSTEM OPPORTUNITY ▪ Manufacturing, Operations & Safety Leveraging smart water management technologies to increase visibility over water consumption e.g. cause of water loss, moving to prediction and automation of action ▪ Procurement & Supply Chain Business can leverage invoices, meter readings & digital technologies (IOT, sensors) to gain a better view over Multiple business processes are likely to be involved in the management of a net positive water impact water consumption through the production process. For example, by using sensors and IoT to monitor water goal, such as water footprint data. New processes and skills may be required in functions such as pressure in factory pipelines, they can automate adjustments and reduce likelihood of leaks contributing to a Operations and Procurement for data governance and to enable data-driven action. net positive water target. 14 UN GLOBAL COMPACT SDG AMBITION | 15 8 KEY DESIGN DECISIONS (KDDS) INTEGRATION GUIDANCE DEVELOPMENT The integration guidance was developed col- novations in order to drive greater integration of each laboratively by business strategy, subject-matter, specific SDG Ambition Benchmark. SDG Ambition and enterprise systems experts across partner will be engaging business leaders across the world in Key Design Decisions, or KDDs, are the technology design practically implement technologies and tools to advance organizations. The detail is designed to be directional, the coming months to join the programme and raise decisions companies can take to pursue more transforma- sustainability management. illustrating the connection points between the SDG ambition for the SDGs. Through this engagement tive integration of the SDGs. They focus on realizing the ▪ How can business systems be designed in order to Ambition Benchmarks and business systems. A the integration approach will be further consulted, system opportunities identified in Step 7 through applied unlock capabilities to deliver against the SDGs? process of enterprise software mapping and market developed and applied to specific industry and decision points to implement technologies for improved analysis was conducted to identify opportunities organizational contexts. ▪ Do your existing technology solutions meet your sustainability management. Companies should not think sustainability ambitions? to leverage advanced technologies and system in- of these as one key decision they need to make. Rather, the KDDs should guide a discussion on how you can practically ENGAGING STAKEHOLDERS build systems to manage performance against the SDGs. AND PARTNERS Decisions of how to implement technologies and track Key Considerations sustainability data cannot be taken by one team, leader or function. Businesses should open interactive dialogue UNLOCKING SYSTEM OPPORTUNITIES Companies can think about the systems opportunities with stakeholders across the organization on system opportunities and KDDs, driving discussion on how to OPPORTUNITY FOR SMALL AND MEDIUM and KDDs as linked: if a technology can provide needed functionality to implement our goals, how can we design achieve practical business integration of the SDGs into core systems and processes. It may be useful to engage SIZED ENTERPRISES (SMEs) business systems to use it for that purpose? For example, partners and innovators in these workshops to support if artificial intelligence can be used to monitor how much ideation and embark on collaborative projects to drive Applicability Opportunity operational waste a business throws away, be it food innovation for the pursuit of the business’ goals. Indeed, waste in a commercial kitchen or employee waste in an the KDDs taken may be short-term actions to add or Small and Medium Enterprises should follow the There are two key opportunity areas for SMEs office, the decision for businesses is how to apply that enable functionality in existing systems, or they may be SDG Ambition Approach through from raising in setting goals aligned with the SDG Ambition multi-year business transformations. ambition to business integration with the same Benchmarks. within operations using available technologies. The KDD goal of embedding the SDGs in their core business could therefore be: how might you enable the automation SDG Ambition seeks to encourage companies to pair ambi- processes and systems. That said, smaller 1. COMPETITIVE ADVANTAGE of waste tracking? tion on SDG commitments with ambition in integration. The businesses do face different circumstances than KDDs provided for each benchmark in the reference sheets By embarking on their own sustainability transition Importantly, it is not as simple as buying a technology large multinationals, both positive and negative. in line with the level of ambition of the SDG Ambition or paying for a service. Companies need to ensure they are highlighted in Figure D of this document. They have been Benchmarks, SMEs can align their products and have the right people to manage the solution; the right drafted to inspire companies embarking on their transforma- Advantage: The smaller ESG impact of SMEs services with the demands of multinationals on processes in place to enable its activity (such as encoding tion journeys to design new systems for the SDGs. enables a more targeted approach and adoption of the same journey, or an increasingly sustainability- ▪ What skills and perspectives do you need to SDG Ambition Benchmarks, focusing on specific waste material attributes into the system); and the conscious consumer market. successfully integrate our SDG Ambition? areas where they can have the largest impact. supporting technology to ensure that data collected by the tool is stored and processed effectively to produce ▪ How can you achieve our goals through near and 2. NEW ECOSYSTEM OPPORTUNITIES Challenge: Two-thirds (63 per cent) of CEOs from actionable insights. This is the core of what KDDs are long-term milestones? SMEs cite lack of financial resources as a barrier The business integration guidance offered through about: thinking through how you can design systems to to implement an integrated, company-wide SDG Ambition is critical for successful ecosystem sustainability strategy.9 partnerships among companies of all sizes. The data flows required for end-to-end visibility on the SDG Acknowledging this, SMEs should seek to adapt Ambition Benchmarks depend on SMEs integrating EXAMPLE KEY DESIGN DECISION the guidance and approach to their own context: with enterprise software solutions operated by still pursuing as granular an understanding of their end-of-value-chain partners. How can smart management technology be best integrated into water management systems? SDG impact as possible. In doing this, significant Businesses can work with technology partners to define most efficient water flow and the process for implement- opportunities open up. ing and managing smart systems. This may require the integration of off-the-shelf solutions (e.g. via water manage- ment service providers) or bespoke tools designed through partnerships to achieve net positive water impact. 16 Photo: UNDP UN GLOBAL COMPACT SDG AMBITION | 17 PREPARING FOR FIGURE C MATURITY ASSESSMENT ACROSS PEOPLE, PROCESS & TECHNOLOGY Illustrative questions and examples for businesses across critical areas in preparation for integration INTEGRATION PEOPLE PROCESS TECHNOLOGY Understanding Business Do we have the people Does the data exist already Does our technology enable and skills to support data within our current business us to track key metrics? collection and management? systems? Readiness for SDG Integration Are there defined Does the process for Is the technology available on the market today? tracking and reporting data collection and QUESTIONS responsibilities? consolidation exist or does Is the cost of technology it need to be configured? transformation relative to What incentives and the value it will unlock? governance structures Can processes leverage the would drive data data for proactive action & management and use? decision making? Zero waste to landfill Gender balance at all levels Net-water positive impact in LOWER COMPLEXITY ILLUSTRATIVE EXAMPLES and incineration of management water-stressed basins Likely to be existing localized Core metrics such as employee Smart water management roles in place for measuring headcount diversity, compen- technologies already adopted waste at facilities, as well sation and recruitment are and proven by many businesses, In approaching business integration of the SDGs, Figure C provides the specific questions business as existing cost incentives likely to be tracked as part of with an array of solutions on the there are three critical areas — people, process leaders should consider and illustrates examples for management of data and “business-as-usual” processes. market and many case studies and technology — across which companies across these three capability areas. It also insight-driven action. delivering strong return can assess their existing maturity relating to includes illustrative assessments of the likely on investment. sustainability management. These areas outline complexity involved across a sample of SDG the key requirements for business integration Ambition Benchmarks. of the SDG Ambition Benchmarks. For example, to improve the measurement and reduction of Maturity across these areas will vary Science-based emissions Land degradation neutrality 100% material recovery, HIGHER COMPLEXITY ILLUSTRATIVE EXAMPLES reduction in line with a including zero deforestation with all materials and GHG emissions in their supply chain, a company dramatically across businesses and industries. 1.5°C pathway products recovered and will need engagement with procurement staff These questions have been used to inform a recycled or reused High difficulty for many busi- on sustainable sourcing practices; processes qualitative complexity assessment for each Requires involvement from nesses to accurately assess in place for collecting emissions data from of the SDG Ambition Benchmarks, and the multiple business units which land impacts, with few today Available technology remains suppliers; and data-sharing platforms which can KDDs within them, to support an initial may not be accustomed to having sophisticated processes limited in ability to track material measuring carbon emissions for a strong, auditable view of flows downstream. There can be support the agile integration of supplier data. understanding of the varying levels of complexity beyond reporting compliance. supplier activity. significant investment required across the benchmarks. This detail is included in for options that do exist. Companies must ask themselves to what the benchmark reference sheets and spotlighted extent these people, process and technology in Figure D in this guide. Companies should capabilities exist today. This informs the level conduct their own maturity assessment when of business transformation required to achieve preparing for integration of their goals into goals aligned to the SDG Ambition Benchmarks. business systems. 18 UN GLOBAL COMPACT SDG AMBITION | 19 INTRODUCTION TO FIGURE D KEY DESIGN DECISION MATURITY ASSESSMENT OVERVIEW Snapshot of Key Design Decisions and integration complexity across each benchmark, THE SDG AMBITION explained in greater detail in the benchmark reference sheets SDG Ambition BENCHMARK INTEGRATION KEY DESIGN DECISIONS COMPLEXITY Benchmarks Gender balance ▪ How might you create a holistic, real-time view of gender balance and compensation? across all levels of ▪ How might you automate the assessment of bias across the business? REFERENCE management ▪ How might you optimize recruitment efforts to increase pipeline diversity? Net-positive water ▪ How might smart management technology be integrated into water management systems? impact in water- ▪ How might you facilitate supplier assessment and encourage improvement in supplier water practices? stressed basins ▪ How might you streamline data flows with service providers and core systems of water management? SHEETS ▪ How might you build an aggregate picture of local water challenges and opportunities? 100% of employees ▪ How might you embed the living wage calculation into core HR systems, and automate updates based across the organization on real-time macroeconomic data? earn a living wage ▪ How might you evaluate your supplier network’s compensation policies and encourage supplier improvement? Zero waste to landfill ▪ How might you define specific waste attributes to support more granular measurement of waste streams? and incineration ▪ How might you automate data collection and manage digital chain of custody for waste recycling? ▪ How might you facilitate the introduction of generated waste as a consumable or marketable material in your technology system(s)? Zero discharge of ▪ How might you integrate chemical or pollutant assessment into the product design and hazardous pollutants manufacturing processes? and chemicals ▪ How might you automate data flows from treatment providers to understand current state? ▪ How might you leverage smart technologies to automate the prevention of discharge? 100% sustainable ▪ How might you promote sustainable inputs in material mapping and product design? The SDG Ambition Approach is brought to life in the material inputs that are ▪ How might PLM tools be used to set and maintain guidelines for sustainable inputs? renewable, recyclable ▪ How might you drive visibility over suppliers to identify and promote the use of renewable or recycled benchmark reference sheets with a deep dive into or reusable materials? each of the 10 SDG Ambition Benchmarks. ILLUSTRATIVE METRICS Science-based ▪ How might you automate data collection for emissions calculations? emissions reduction ▪ How might you integrate with suppliers to improve visibility and emissions performance? The fundamental and aspirational in line with a 1.5°C ▪ How might you accurately measure scope 3 emissions? The benchmark-specific detail included in these metrics provided in the benchmark pathway ▪ How might you effectively forecast emissions to optimize removal investment? reference sheets is intended to be illustrative, reference sheets are not presented 100% resource ▪ How might you prioritize recyclability in product and packaging design and material selection? providing examples at each stage of the SDG as a new reporting standard for recovery, with all ▪ How might resource recovery be embedded into customer propositions? materials and products ▪ How might you enable the highest value re-capture from material recovery and recycling? Ambition Approach which are broadly applicable any sustainability subject area. recovered and recycled or reused at end of use to industries, geographies and business sizes. Each business should define their Land degradation ▪ How might you integrate advanced technologies and third party data sets to understand and monitor The examples were informed by subject-matter own metrics in line with their existing neutrality including land impacts? experts across the UN Global Compact and reporting standards. zero deforestation ▪ How might you integrate land impact considerations into all aspects of the business? ▪ How might you integrate with suppliers and third-parties to ensure traceability of land impacts in your partner organizations. supply chain? ▪ How might you evaluate opportunities for restoration and use advanced technologies to monitor progress? The reference sheets culminate in the Key Design Zero incidences ▪ How might you leverage your compliance risk data to automate the flagging and escalation of potential of bribery instances of bribery? Decisions for integration of each. Figure D provides ▪ How might you automate your learning management system in assigning anti-bribery training a snapshot of these KDDs, as well as the high-level and tracking completions? ▪ How might you leverage data related to recorded instances of bribery to better prevent future occurrences? complexity associated with the integration of each benchmark. COMPLEXITY KEY NOTES People Low: Minimal transformation required to enable business systems ▪ Complexity is based on integration rather than action: this Process to measure progress against benchmark means the assessment focuses on how to measure progress VIEW THE Tech rather than the challenges in driving action Medium: Degree of transformation required to enable business systems to measure progress against benchmark ▪ Scoring conducted through expert consultation with BENCHMARK High: Significant transformation required to enable business Accenture and SAP ▪ Greater detail and explanation of the Key Design Decisions REFERENCE SHEETS systems to measure progress against benchmark found in the benchmark tear-sheets 20 ENDNOTES ACKNOWLEDGMENTS PARTNERS AND CONTACTS 1 UN Global Compact, Accenture, 7 SAP, “From Inventing the The UN Global Compact wishes to express gratitude to If you are interested in learning more about “CEO Study on Sustainability: Enterprise Software Sector Accenture, our content partner in developing these guides, SDG Ambition, please contact: The Decade to Deliver”, to Helping the World Run for their extensive support. We thank SAP for their support Caitlin Casey, UN Global Compact 2019. Available: https:// Better”, 2020. Available: https:// as Founding Patron of SDG Ambition and their contributions casey@unglobalcompact.org www.accenture.com/gb-en/ assets.cdn.sap.com/sapcom/ to the development of the guides. insights/strategy/ungcceostudy docs/2020/02/70eee289-847d- Ole Lund Hansen, UN Global Compact [Accessed 2020] 0010-87a3-c30de2ffd8ff.pdf hansen4@unglobalcompact.org [Accessed 2020] ABOUT ACCENTURE 2 UN Global Compact, Accenture, Michael Hughes, Accenture “CEO Study on Sustainability: 8 BCG, “A Quantum Advantage in Accenture is a leading global professional services michael.d.hughes@accenture.com The Decade to Deliver”, Fighting Climate Change”, 2020. company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Anita Varshney, SAP 2019. Available: https:// Available: https://www.bcg.com/ Combining unmatched experience and specialized anita.varshney@sap.com www.accenture.com/gb-en/ publications/2020/quantum-ad- insights/strategy/ungcceostudy vantage-fighting-climate-change skills across more than 40 industries and all business Visit: unglobalcompact.org/sdgambition [Accessed 2020] functions — underpinned by the world’s largest delivery 9 Ibid. network — Accenture works at the intersection of business 3 UN Global Compact, and technology to help clients improve their performance DISCLAIMER “20th-Anniversary Progress and create sustainable value for their stakeholders. With Report: Uniting Business The inclusion of company names and/or 505,000 people serving clients in more than 120 countries, examples in this publication is intended in the Decade of Action”, Accenture drives innovation to improve the way the world strictly for learning purposes and does not 2020. 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Our machine learning, Internet prior permission, provided clear attribution www.unglobalcompact.org/ of Things (IoT), and advanced analytics technologies help is given to the UN Global Compact and library/5747 [Accessed 2020] turn customers’ businesses into intelligent enterprises. that content is not used for commercial purposes. 5 European Commission, Our end-to-end suite of applications and services enables “Sustainable Product our customers to operate profitably, adapt continuously, Policy”, 2018. Available: and make a difference. With a global network of 440,000+ https://ec.europa.eu/jrc/ customers in 180+ countries, 21,000+ partners, 101,150+ en/research-topic/sustai- employees, and thought leaders SAP helps the world run nable-product-policy#:~:text=- better and improves people’s lives. The%20Ecodesign%20of%20 Energy%2DRelated%20 ABOUT 3M Products%20(ErP)&text=It%20 is%20estimated%20that%20 At 3M, we apply science in collaborative ways to improve over,throughout%20their%20 lives daily. With $32 billion in sales, our 96,000 employees entire%20life%20cycle connect with customers all around the world. Learn more [Accessed 2020] about 3M’s creative solutions to the world’s problems at www.3M.com or on Twitter @3M or @3MNews. 6 Garnter, “Leverage Augmented Intelligence to Win With AI.”, 2019. Available: https://www. gartner.com/en/newsroom/ press-releases/2019-08-05- gartner-says-ai-augmentati- on-will-create-2point9-trilli- on-of-business-value-in-2021 [Accessed 2020] 22 UN GLOBAL COMPACT SDG AMBITION | 23 THE TEN PRINCIPLES OF THE ABOUT THE UNITED NATIONS UNITED NATIONS GLOBAL COMPACT GLOBAL COMPACT As a special initiative of the UN Secretary-General, the HUMAN RIGHTS United Nations Global Compact is a call to companies everywhere to align their operations and strategies with 1 Businesses should support and respect the ten universal principles in the areas of human rights, labour, protection of internationally proclaimed environment and anti-corruption. Launched in 2000, the human rights; and mandate of the UN Global Compact is to guide and support the global business community in advancing UN goals and 2 make sure that they are not complicit in values through responsible corporate practices. With more human rights abuses. than 10,000 companies and 3,000 non-business signatories based in over 160 countries, and more than 60 Local LABOUR Networks, it is the largest corporate sustainability initiative in the world. 3 Businesses should uphold the freedom of association and the effective recognition of For more information, follow @globalcompact on social the right to collective bargaining; media and visit our website at unglobalcompact.org. 4 the elimination of all forms of forced and compulsory labour; 5 the effective abolition of child labour; and 6 the elimination of discrimination in respect of © 2020 United Nations Global Compact employment and occupation. 685 Third Avenue New York, NY 10017, USA ENVIRONMENT 7 Businesses should support a precautionary approach to environmental challenges; 8 undertake initiatives to promote greater environmental responsibility; and 9 encourage the development and diffusion of environmentally friendly technologies. ANTI-CORRUPTION 10 Businesses should work against corruption in all its forms, including extortion and bribery. The Ten Principles of the United Nations Global Compact are derived from: the Universal Declaration of Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations Convention Against Corruption. 24