By Absa
In today’s world, sustainability is no longer a choice but a necessity. The United Nations Sustainable Development Goals (SDGs) represent a global call to action, urging all sectors of society to work towards a more sustainable and equitable future by 2030. South Africa has been making steady progress on this journey, and the 2024 Voluntary National Review (VNR) report, recently published by the United Nations Global Compact Network, highlights the private sector’s pivotal role in achieving these goals.
This is the second edition of the VNR, highlighting how businesses across various industries are contributing to global sustainability efforts. It also reaffirms that the road to a sustainable future is best traveled through strong collaboration between the private and public sectors.
Business Opportunities in Sustainability
The private sector has a crucial role to play in realising the SDGs, but sustainability also presents significant business opportunities. According to the United Nations Business and Development Commission, aligning business strategies with the SDGs could unlock an estimated $12 trillion in market opportunities across various sectors.
This potential for growth is particularly relevant as businesses explore new ways to innovate and tap into untapped markets. The SDGs should be considered not just as a global commitment but as an opportunity for businesses to drive economic growth while creating a positive social and environmental impact.
Companies that fail to embrace sustainability as a core part of their strategy risk falling behind. Investors, consumers, and regulators are increasingly demanding responsible practices, and businesses must adapt to these new expectations or face obsolescence.
Challenges and Strategic Approaches
While the potential rewards of aligning with the SDGs are vast, the journey is not without its challenges. Companies must navigate competing priorities, resource constraints, and the complexities of balancing global goals with the immediate demands of their business environments.
The key to overcoming these challenges lies in a strategic approach. To fully realise these business opportunities, companies must first identify the SDGs most relevant to their operations, set clear targets, and integrate these goals into their governance and decision-making processes. This requires strong leadership, clarity of purpose, and a commitment to continuous learning and adaptation.
Data: Driving Accountability and Innovation
In this journey toward sustainability, data plays a crucial role. As businesses align their strategies with the SDGs, robust data analytics are essential for tracking contributions, identifying areas for improvement, and making informed decisions. A data-driven approach not only enhances accountability but also drives innovation, ensuring that business efforts are scalable and impactful.
The VNR report emphasises the importance of improving the measurement and reporting of sustainable practices. By leveraging data, businesses can better understand their impact on the SDGs and adjust their strategies to maximise positive outcomes. This approach is especially critical as the private sector works to align global goals with local realities.
The Power of Public-Private Collaboration and Stakeholder Engagement
Public-private collaboration, powered by effective stakeholder engagement and data-driven insights, is central to advancing the SDGs. One of the standout themes of the 2024 VNR report is the critical role of public-private partnerships in achieving sustainability goals. The ongoing cooperation between South Africa’s Department of Planning, Monitoring, and Evaluation (DPME) and the Global Compact Network South Africa exemplifies the success of such collaboration. Businesses are working closely with government to drive sustainability initiatives, align operations with societal needs, and leverage public resources to advance environmental, social, and governance (ESG) goals.
Effective stakeholder engagement is central to this approach. The private sector frequently leads or participates in multi-stakeholder partnerships, leveraging collective expertise, resources, and networks to address complex sustainability challenges. By fostering collaborative relationships with government, civil society, and other private sector players, companies like Absa can meaningfully contribute to the SDGs.
Absa played a significant role in South Africa’s 2024 VNR submission, underscoring our commitment to the 2030 Agenda. We are proud to sponsor this collaborative process by creating platforms for stakeholders to share insights, case studies, and prioritize actions that advance the SDGs.
Despite these successful partnerships, the report also acknowledges the challenges posed by policy shifts and bureaucratic inefficiencies that sometimes hinder sustained collaboration. A key recommendation from the private sector is the creation of a dedicated platform for ongoing dialogue between public and private sectors to enhance joint effectiveness and ensure long-term success.
Absa’s Role in the SDG Journey
At Absa, one of our core strategic pillars is to be an Active Force for Good. Our climate strategy is anchored on four key pillars, one of which is promoting sustainability and decarbonization efforts. We are committed to finding a careful balance between environmental stewardship, social equity, and economic growth, while reducing our carbon emissions.
Absa plays a leading role in financing the transition to green solutions by empowering clients to adopt sustainable practices. Our sustainable financing initiatives focus on local communities, enabling them to access capital for green solutions that contribute to the broader sustainability agenda.
In addition to this, climate risk management is a key focus area for Absa. We actively manage both current and emerging climate-related risks through our Enterprise Risk Management Framework. By embedding climate risk assessment and governance into our business processes, we ensure that our operations remain resilient in the face of a changing climate. The 2024 VNR report highlights the role of green financing and inclusive finance products in driving sustainable development, particularly within the financial services and fintech sectors.
A Call to Action
As the 2024 VNR report illustrates, the private sector must see itself as a catalyst for achieving the SDGs. By embedding sustainability into core business strategies, companies can drive innovation, create shared value, and contribute to a more resilient, equitable world.
Absa is proud to be part of this movement, championing sustainability through our commitments and partnerships. As we continue to work together with government, civil society, and other stakeholders, businesses across all sectors must step forward to embrace sustainability, ensuring we accelerate progress toward the 2030 SDGs.
Collaboration and strategic engagement are essential as we chart the path to a sustainable future—one where the private sector, in partnership with the public sector, plays a transformative role in achieving the United Nations’ ambitious goals.
For more information on Absa’s Sustainability story, visit https://www.absa.africa/sustainability/
Punki Modise is the Chief Executive Strategy & Sustainability at Absa Group