What role do the sustainability goals play?

The consultancy Sustainserv GmbH analysed the publicly reported approaches of 196 Swiss companies in terms of commitment to the Sustainable Development Goals (SDGs), intensity of engagement with the SDGs, type of corporate objective and quality of reporting on the SDGs. In order to evaluate the companies' approaches, the consultancy developed a scoring system with a maximum of 23 achievable points, which on the one hand allows companies to be compared regardless of size and sector, and on the other hand relates their approaches to what they consider to be an ideal - "best practice" - approach.

"Classic" sustainability goals are in the foreground
Do companies commit to the SDGs at all, and if so, how? The survey found that 41 percent of the companies surveyed have leadership principles that reference the SDGs. In concrete figures: 58 companies visibly address sustainability goals and also refer to the SDGs. The SDGs most frequently prioritised by Swiss companies are:
- SDG 3: Good health care
- SDG 8: Good jobs and economic growth
- SDG 9: Innovation and infrastructure
- SDG 12: Responsible consumption
- SDG 13: Climate protection measures
84 percent of the companies prioritize those sustainability goals that are directly related to their business model. But only five percent of these 58 companies clearly show in the study how they intend to achieve individual sustainability goals. Two thirds limit themselves to mentioning specific products or services.

Only a few measure and document
But what goals have companies set in terms of sustainability? And do the companies also measure the progress made towards achieving the targets and with which indicators? The picture here is rather sobering. Only 22 percent - or 14 companies - align their goals with those of the SDGs. However, the good news is that these companies are also measuring progress on a time-bound basis and by means of indicators. As far as reporting is concerned, the picture is ambivalent, according to the study authors. Around a third of the reports examined clearly show the companies' contributions to the SDGs. In the other two-thirds, this was less clear or even so vaguely formulated that no reference to the SDGs was discernible. All companies highlighted their efforts and positive achievements for more sustainability, but did not mention their shortcomings with a single word.

Well-meaning, but...
Conclusion: The analysis shows that there is currently still a discrepancy between good intentions and actual embedding of the SDGs in corporate practice. Much remains to be done to ensure that Swiss companies contribute to the achievement of the SDGs: only 30 % of all assessed Swiss companies and 37 % of companies reporting on sustainability address the SDGs. The 58 Swiss companies that visibly address the SDGs also achieved on average only 40 % of the maximum achievable score (9.2 out of 23 points). The companies are most active in prioritising the SDGs that are relevant in their context. At the moment, the least developed are still company-specific goals on the SDGs and the corresponding track record.

New legal form as solution?
What is the reason that the sustainability goals are so little anchored in companies? The aforementioned study does not provide a concrete answer to this question. One can at most assume that the reason is to be found in the discrepancy between the pursuit of profit and "ethical conscience". Or, to put it another way, there is no money to be made (yet) from meeting sustainability targets. At best, companies do something for their reputation by committing themselves to the issue of sustainability. A new initiative by business associations, universities, employee organisations and individuals aims to resolve the discrepancy between "classic" profit orientation and orientation towards the common good. This initiative wants to show that social and ecological commitment no longer means foregoing profits for a company. Companies that want to set other equally important goals in addition to profit orientation quickly find themselves facing a variety of challenges - not least the questions of shareholders and investors. This is what the introduction of a new legal form, the Benefit Corporation, is designed to avoid.

The concept of the Benefit Corporation (B-Corp) is a practical attempt to combine entrepreneurial action with economic, social and ecological sustainability and to create more transparency in this respect. A benefit corporation operates on a profit-oriented basis, but its goal is not only profit for the owners and shareholders, but benefits for all stakeholders, i.e. for the company itself, for society, for the state, for the environment and for the employees.

Switzerland should not allow itself to be left behind
In the US, Italy and Puerto Rico, the benefit corporation already exists as a separate legal entity, and legislation is underway in many countries around the world, including the EU. Benefit corporations can stand out in the jungle of product labels and greenwashing campaigns and send a clear message to their customers, employees, suppliers and other stakeholders. It would be regrettable if Switzerland were to allow itself to be left behind on the international, but also national market by failing to take legal measures here ...

So far, there is only one B-Corp label for a Benefit Corporation in Switzerland, based on a private initiative: "B-Lab Switzerland " is an offshoot of an American organization. However, the broad-based working group - represented by business associations, universities and employee organisations - would also like to create the conditions at the legal level for Swiss companies to be able to achieve social and business objectives in the sense of a Benefit Corporation. This could either take the form of a new legal form or a state-recognised label. To this end, pioneering companies are now being sought that can demonstrate what is already a reality in this area and/or that would like to contribute their experience and ideas to the development and formulation of the requirements for a Swiss Benefit Corporation.