Companies should communicate how their SDG-aligned strategy and investments contribute to positive social and environmental impacts in line with the global goals. The value creation model of the International <IR> Framework (see figure below) provides a good framework to describe how the company is contributing to the SDGs through its business model.
Companies should also report the outcome – or performance –of their strategy and investments, using key performance indicators (KPIs) and targets that are aligned to the broader sustainable-development agenda. This includes the 17 SDGs and 169 targets themselves, as well as other societal goals and planetary boundaries (e.g., goals of the Paris Agreement).
Ideally, companies can identify a set of SDG-level targets with impacts directly linked to their business or where there is a strong potential for action (based on ananalysis of local priorities and industry-based impacts) and match them with their inputs, outputs, and outcomes.
The list of Relevant SDGs, Targets, and Indicators for Companies (see resource) shows how some of the SDG targets and KPIs are directly applicable to businesses.
When it is not possible to use actual SDG targets and indicators, companies should select KPIs that are suitable for their business and location and demonstrate a link to the SDG. The relationship of the SDG to these business specific KPIs and targets can be validated through external assurance.
