SDGs (Sustainable Development Goals)
Definition
The Sustainable Development Goals are 17 interconnected global goals adopted by all UN Member States in 2015 as a shared blueprint for peace and prosperity for people and the planet by 2030. They address challenges including poverty, inequality, climate change, environmental degradation, and injustice. Organisations increasingly map their ESG strategies and impacts to specific SDGs.
Why It Matters
The SDGs provide a universal language for communicating sustainability impact to diverse stakeholders. While widely used in corporate reporting, credible SDG alignment requires demonstrating measurable contributions rather than superficial logo placement.
Related Terms
UN Global Compact
The United Nations Global Compact is the world's largest corporate sustainability initiative, calling on companies to align their strategies and operations with ten universal principles on human rights, labour, environment, and anti-corruption. Participating companies commit to annual reporting on their progress (Communication on Progress). The initiative connects business with UN agencies, civil society, and governments.
Social Impact
Social impact refers to the significant positive or negative effects that an organisation's activities have on the well-being of communities and society at large. It encompasses outcomes related to health, education, employment, equity, and quality of life. Measuring social impact helps organisations understand and communicate their contribution to societal progress.
Impact Investing
Impact investing refers to investments made with the intention of generating positive, measurable social or environmental impact alongside a financial return. It spans asset classes including private equity, debt, and public equities, targeting outcomes aligned with the SDGs. Impact investments are distinguished from ESG integration by their explicit intentionality and impact measurement requirements.
GRI (Global Reporting Initiative)
The Global Reporting Initiative (GRI) is an independent international organisation that provides the world's most widely used standards for sustainability reporting. GRI Standards help organisations report on their economic, environmental, and social impacts in a structured, comparable way. The framework emphasises stakeholder inclusiveness and materiality.