This is the “Decade of Action,” calling on all stakeholders to accelerate efforts to achieve the UN Sustainable Development Goals. The SDGs aim to address the challenges of poverty, climate change, and closing the financial gap between the world’s most vulnerable communities.
However, the UN Sustainable Development Goals Report 2023 showed that we are still behind schedule to achieve the goals, with only 15% of the SDGs on track despite the 2030 deadline.
The “Decade of Action” is a call for all institutions, including the private sector, to implement policies and regulations that support the achievement of the global goals by 2030.
This shift has led to companies adopting environmental, social and governance (ESG) principles as a guiding force for their operations.
Consistent application of ESG principles not only drives business growth, it also enables us to be a force for good. An Ipsos study found that the majority of people believe private organizations can make a profit while supporting communities, reinforcing the power of the private sector to drive positive change.
Adopting ESG principles is critical to business growth. Addressing social and environmental concerns while implementing robust governance structures can transform our organizations.
One of the most important impacts of ESG on business is its ability to attract more investment and opportunities.
Governance structures that promote transparency gain a good reputation among our clients and potential investors. Pushing towards the SDGs is a challenge for established companies because it involves directing a significant amount of investment and resources into their operations.
Partnerships are not just the key, they are the bridge that can help us overcome challenges. By allying with like-minded entities, we can secure investment opportunities. Maintaining a strong reputation and being accountable to ourselves and others is crucial. Transparent governance structures can pave the way for expansion and growth.
ESG gives us a unique opportunity to connect with communities. Investing in their most pressing social needs can drive steadfast loyalty and consistency to our brands. Reinvesting in communities, especially vulnerable groups, through social programs gives us a social license to operate and builds trusted relationships that lead to strong brand affinity.
In the environmental field, organizations’ expectations for responsible production and consumption have risen. The consequences of climate change are clear, especially on our continent, where sustainable business practices that support environmental management are a catalyst for growth. According to a report published by the Global Commission on the Economy and Climate in 2018, climate initiatives are expected to generate $26 billion in profits and 65 million new jobs by 2030.
The push for clean energy is a means of creating jobs. According to the International Labor Organization, the number of jobs available in the renewable energy sector reached 12.7 million worldwide in 2022, with the use of solar energy among local and commercial interests being cited as a major front for job creation.
Investing in the environment is a path towards partnerships that advance the organization’s platform while taking responsibility for job creation.
Environmental management also makes business operations more cost effective, making them sustainable.
Although we advocate for ESG compliance in our business operations, challenges remain.
Making companies ESG compliant is essential, especially in the social and environmental realm. The challenge is to gain full support from internal and external stakeholders to reorganize business operations to meet the required standards.
Partnerships with public and private sector actors can help us achieve our ESG agenda and address these barriers. Stakeholder engagement and consultation is also vital to gaining stakeholder support for embedding strong ESG principles in our business.
At Wato, we are constantly working to build sustainable business practices. Our Environmental, Social and Governance (ESG) agenda supports three pillars: financial inclusion, road safety and health, and climate action.
Through these core pillars, we have successfully impacted over 8 million people across seven African countries by providing financing solutions, investing in e-mobility, and giving back to the community through rider training, literacy forums, and educational programs.
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