DPBS1150 Global Business Environments
Global Business Environments
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DPBS1150
Global Business Environments
SUSTAINABILITY LENS (II):
INTERCONNECTEDNESS OF U.N.
SDGs AND PARTNERSHIPS FOR THE
GOALS
Unit 9: Lecture 9B
Lecture Overview
• The Interconnectedness of SDGs – synergies and trade-offs
• Explore sustainable ways of doing business
• Explore the role of the SDGs and normative values as
instruments of change
• Discuss the importance of partnerships for the UN SDGs
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The Interconnectedness of SDGs
3
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The Interconnectedness of SDGs
• The SDGs consist of 17 goals and 169 targets to ensure
human well-being, economic prosperity and environmental
protection simultaneously.
• The 17 goals are highly interdependent on one another and
may result in conflicting interactions and diverging results.
• Synergies and trade-offs between goals and targets.
• Interrelated positive and negative correlations
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The Interconnectedness of SDGs
Study found that:
• SDG 1 (No poverty) had the greatest synergy with the other SDGs.
• Reducing poverty (SDG 1) is statistically linked to favouring the progress of
SDGs 3 (Good health and well-being), 4 (Quality education), 5 (Gender
equality), 6 (Clean water and sanitation), and 10 (Reduced inequalities).
• SDGs 3 (Good health and well-being) also had high amounts of
synergies with other goals
• Such as SDGs 1 (Poverty Reduction), 4 (Quality education), 5 (Gender
equality), 6 (Provision of clean water and sanitation), 10 (Inequalities
reduction).
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Pradhan, P., Costa, L., Rybski, D., Lucht, W. and Kropp, J.P. (2017). A Systematic Study of Sustainable Development Goal (SDG)
Interactions. Earth’s Future, 5(11), pp.1169–1179.
The Interconnectedness of SDGs
• On the other hand, trade-offs are observed in SDGs 8 (Decent
work and economic growth), 9 (Industry, innovation, and
infrastructure), 12 (Responsible consumption and production),
and 15 (Life on land).
• Significantly, SDGs 12 and 15 frequently appear as a goal with
a trade-off to other goals. SDGs 12 and 15 have trade-offs
with 10 and 12 goals respectively.
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The Interconnectedness of SDGs
• Trade-offs between the SDGs occur because the goals with high trade-
off percentages are focused on economic growth. This often results in
improved human well-being at the expense of environmental
sustainability.
• For example, to reduce poverty (SDG 1) which improves human welfare as a whole,
SDG 12 (Responsible consumption and production) has to be sacrificed as
consumption and production would increase at a rate that would substantially cause
impact on the environment.
• Goals that focus on economic growth and human well-being often
have a negative correlation with the other goals that focus on
environmental sustainability.
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The Interconnectedness of SDGs
• Instead of looking at the goals as separate identities, they
should be treated as “cogwheels” that are dependent and
interact with one another.
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• Global ranking of Sustainable Development
Goals’ pairs in terms of synergies (left) and
trade-offs (right).
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Source: Pradhan, P., Costa, L., Rybski, D., Lucht, W., & Kropp, J. P, 2017.
The Interconnectedness of SDGs
Sustainable Ways of Doing Business
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The Triple Bottom Line
• People
• Planet
• Profits
Sustainable approaches naturally
connect with other lenses:
• Socio-cultural
• Political/Legal
• Economic
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Instruments for Sustainability in Business
• Incorporating sustainability into business operations often requires a
combination of instruments and strategies.
• Some key instruments and approaches that businesses can use to
promote sustainability:
• Consumer awareness: education, campaigns, Fairtrade and B-Corp
• Corporate Social Responsibility: ethics and shareholder activism
• Economic instruments: e.g., pricing, taxes, charges/levy (e.g., carbon offset)
• Laws, regulations and standards (Diesendorf, 2015) and the UN SDGs
• Redefining supply chains (circular economy, efficiency, innovation)
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Supply Chain Transparency
Supply chain transparency can support businesses to meet their sustainability goals.
• End-to-end visibility for complete supply chain knowledge:
SDG 12 Responsible Production and Consumption relies on visibility into production conditions
at all facilities involved in the making of a product – assess and improve the environmental and
social impact of their production
• Communication with supply chain stakeholders:
as above visibility is needed to understand local and regional impacts, it also creates co-operative
relationships along the supply chain (SDG 17 Partnerships for the Goals) – address common
sustainability challenges
• Proactive risk management:
for example, by monitoring the supply chain, companies can determine areas at potential risk of
deforestation (SDG 15) or forced labour (SDG 8) – implement responsible sourcing practices
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Source: 3 ways transparency can help achieve the UN Sustainable Development Goals - Transparency-One
Supply Chains Link Partners and Places
• Joe Stiglitz speaking about the 2022 World Economic Forum
pointed out the significance of supply chain failures and
lack of resilience, such as the lack of computer chips
resulting in failure to produce cars – likening it to making cars
without spare tyres.
• But what external factors can disrupt our supply chains?
Source: Joe Stiglitz, The Guardian, June 2, 2022
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ability to adapt and recover quickly
from disruptions or failures
What UN SDGs is this company committed
to?
Woolworths Sustainability Development Plan 2025 details
commitment to goals over three key areas; People, Planet, Product.
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People incorporates equity and inclusion as well as economic security and well-being.
Planet addresses sustainable agriculture and production as well as distribution efficiency.
Product contributes to health and well-being along with sustainability of resources.
Woolworths: People, Planet, Product
Each of these is mapped to UN SDGs
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What does this commitment
look like?
Examples of Responsible Consumption (SDG 12)
• SDG 12 seeks to “ensure sustainable consumption and
production patterns.”
• SDG 12.3: “By 2030, halve per capita global food waste at the
retail and consumer levels and reduce food losses along
production and supply chains, including post-harvest losses”
• Fresh produce; odd shaped vegetables, using excess in ready-made
meals, etc
• Shelf life and “Used By” dates review for redistribution
• What about Zero Hunger (SDG 2)?
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Blind Spots or Unintended Consequences
• What are the issues for addressing SDG 2 “Zero Hunger” as a
supermarket?
• Unexpected events create demand, or fluctuations in supply:
When are supply and demand at odds with SDG 12?
• Food Waste: Supermarkets often contribute to food waste through
practices like overstocking, cosmetic standards for produce, and
frequent replenishing of fresh goods. This can lead to the
unnecessary disposal of food that could otherwise be distributed to
those in need, which is contrary to SDG 2.
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UN SDGs
— Progress and Partnership
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Watch: Joseph Stiglitz on the UN SDGs
DPBS115021 Source: Joseph Stiglitz on the Sustainable Development Goals
< 2 mins
Stiglitz describes the UN SDGs as
Normative Values – What does this mean?
Definition of ‘Value’ (noun) Oxford
1. the regard that something is held to deserve; the importance, worth, or
usefulness of something.
2. principles or standards of behaviour; one’s judgement of what is
important in life.
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The SDGs represent a set of guiding principles and standards that embody the
shared ethical and moral values of the international community. In the context
of the SDGs, “normative” refers to what is considered to be the standard or ideal
behaviour or condition in terms of sustainable development and global well-
being.
Source: Article on GPI
Alternatives to GDP: Economic Lens
The Genuine Progress Indicator (GPI)
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account for economic, environmental, and social factors
Alternatives to GDP:
The Genuine Progress Indicator (GPI)
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• It includes factors such as income
distribution, household and volunteer
work, the costs of crime and pollution,
and the depletion of natural resources.
• Adjusts for income inequality,
acknowledging that even if the overall
GDP is rising, if the benefits are
concentrated among a few, it may not
reflect real progress.
• Environmental factors are considered
by accounting for the costs of
environmental degradation and
resource depletion.
Alternatives to GDP:
The Genuine Progress Indicator (GPI)
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GPI and other indicators might not be perfect, but they can help policy-makers do a
better job of balancing the costs and benefits of economic development
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Alternatives to GDP:
The Social Progress Index (SPI)
• Developed by Michael Porter and team at Harvard with Scott
Stern (MIT) and built on ideas of Joe Stiglitz and Amryta Sen.
• “Gross Domestic Product (GDP) can often be a misleading
measurement of progress as it tells us nothing about people’s
quality of life,” CSI chief executive Professor Kristy Muir.
• The SPI is already being used in more than 45 countries
around the world as a tool to guide policymaking and
investment decisions.