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Further activities that firms can do in order to align their activities with SDGs include: informing

about the SDG development and best practices, understand business activities and its
contribution to the social and environmental challenges, set firms SDGs targets, develop business
solutions, communicate about SDGs with stakeholders about firm’s actions taken, cooperate with
firms in sector to jointly contribute to SDGs, and report on advancements (WBCSD, 2017, p. 17).

Sustainability reporting benefits and challenges

The advantages of implementing SDGs are that "First movers will have a 5 to 15 year advantage”
(Business and Sustainable Development Commission, 2017, p. 7).

According UNGC (p. 8, 2021) good ESG performance results: in 50% lower cost of capital;
88% better operational performance; 80% better stock price performance; 7% higher Return on

Equity (ROE). According to Bloomberg, firms with higher ESG score during the COVID-19
pandemic had better business results than their competitors (UNGC, 2021, p. 8).
Aim of SDGs is to link business strategy with current global challenges, whereas the advantages
are (GRI, UN Global Compact & WBCSD, 2015, p. 4):

• Identifying future business opportunities (e.g. new investment and innovation);

• Enhancing the value of corporate sustainability (business model more in line with
sustainable practices);

• Strengthening stakeholder relations and keeping the pace with policy developments
(reduced legal and reputational risks);

• Stabilizing societies and markets (helps strengthen institutions, business ethics and
provide examples of positive business practices);

• Using a common language and shared purpose (improves communication and relations
with stakeholders about firms contribution to and completion of the stated SDGs targets.
Several studies found that firms with clear social and environmental purpose and contribution to

SDGs are preferred by millennials, where they are 5 times more likely to work and stay in such
firms (working for employers they respect and can relate to). Also, such firms tend to have higher
moral and more productive employees, lower cost of capital, their brands can grow at a faster
rate and customers, as well as business partners tend to have higher trust in such firms (Business
and Sustainable Development Commission, 2017, p. 43-44).

According to McKinsey Global Institute research, benefits of achieving SDGs for firms include
(Business and Sustainable Development Commission, 2017, p. 27):

• Increases in labor productivity due to better health and education;

• Reduced political uncertainty due to reduced social inequality and environmental stress,
translating into reduced business risks.

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