Page 160 - EN_final

Step 4 - Integrating

To integrate SDGs into business, leaders must be at the top; additionally, boards' critical role in
integrating sustainable development into a long-term strategy is increasingly acknowledged
(Bexell & Jönsson, 2021). For example, boards of directors can play a crucial role by integrating
the Sustainable Development Goals into the recruitment and compensation criteria for executives.

Two principles are essential:
• developing a common understanding of how to progress in implementing SDGs to create
value for society, by clearly communicating the business case and how they can

complement progress in meeting other business goals;
• incorporating SDGs into the organization's performance assessment and reward

systems, with additional incentives reflecting the function or person's role in achieving the
relevant objectives (Hub, 2018).

To be influential, sustainability goals should form an integral part of the company's comprehensive
set of financial, strategic, and operational goals, along with goals in areas such as sales and
performance (Fabrizio, et. al, 2015).
While specialized teams and sustainability specialists can play an essential role in achieving a

company's sustainability goals, the key to integrating sustainability into a company's strategy,
culture and operations is to support and account for corporate functions such as research and
development, business development, supply management, operations, and human resources.
There are many different approaches to promoting organizational change and fostering business
integration, from awareness raising and training to using knowledge and inspiration that can be

obtained through relationships with external experts and stakeholders. To support the
development and implementation of the company's strategy in the context of sustainable
development, many companies have established interdisciplinary boards, boards, or working
groups for sustainable development. In some cases, the governance structures may also include
a board-level sustainability committee, which allows time to be devoted to strategic discussions
on sustainable development priorities, which can be especially valuable in the early stages of
business integration (Avieco, 2021).

Successfully addressing sustainability issues cannot be done in isolation. There are at least three
types of partnerships to explore: value chain partnerships where companies in the value chain
combine complementary skills, technologies, and resources to bring new solutions to the market;
sectoral initiatives that bring together several industry leaders to raise standards and practices

across the sector and overcome common challenges; multilateral partnerships where
governments, the private sector, and civil society organizations join forces to solve complex
problems. Building effective partnerships for sustainable development requires a high degree of
stakeholder commitment. Partners should strive to set common goals, use their core
competencies, depoliticize projects, create clear management structures, establish a unified

5
160
160