T H E 1 2 T FIGURE 1: GEOPOLITICAL INSTABILITY SETS BACK SUSTAINABILITY IN OVER HALF (51%) H U AS WE APPROACH THE HALFWAY MARK TO ACHIEVE THE 2030 N I T OF DEVELOPING COUNTRIES E AGENDA, CEOS REMAIN COMMITTED TO DELIVERING THE SDGS. D N A T I YET THEY ARE SOUNDING THE ALARM THAT MORE ACTION AND O N SUPPORT ARE NEEDED TO RESCUE THE GLOBAL GOALS CEO Survey Question: To what extent do you agree or disagree with the following statements? S G L (Geopolitical instability has set back my company’s sustainability efforts) O B A L C O M P A THE WORLD CANNOT ACHIEVE THE SDGS – their highest level ever. Climate finance is C T - A ON OUR CURRENT TRAJECTORY still dangerously short of the USD 100 billion C C E goal. An additional 10 million hectares of forest N T U We are nearly at the halfway mark to 2030, R were destroyed in 2021, bringing nearly 40,000 E C the shared deadline when we plan to achieve 1 E species to be at risk of extinction.” O S the Sustainable Development Goals (SDGs). T U D While progress has been made, the world Global leaders recognize that this is the moment Y remains drastically behind where it needs to be. to take action. Secretary General of the United For example, the Paris Agreement sought to limit Nations, António Guterres, in his 2022 address global temperature rise to 1.5° Celsius by the to the UN General Assembly remarked, “A world end of the century, but the latest United Nations without extreme poverty, want or hunger is not Framework Convention on Climate Change an impossible dream. It is within reach. That is (UNFCCC) report illustrates that current climate the world envisaged by the 2030 Agenda and the pledges would put the world on track to reach Sustainable Development Goals. But it is not the 2.5° Celsius by 2100 — a scenario that would world we seem to have chosen. Because of our lead to cataclysmic impacts for the world. decisions, sustainable development everywhere is at risk. The SDGs are issuing an SOS.” 2 The instability of the past three years, marked by the global pandemic, climate change impacts, This sentiment is echoed by business leaders and geopolitical conflicts, has set the world in the private sector. As CEO of Intrepid Travel, Disagree Agree even further behind. As Susan Chodakewitz, James Thornton, states, “Businesses and President and Chief Executive Officer of Nathan No data available Associates notes, “We are at the midpoint of governments still have a lot more to progress achieving the SDGs, and we are seeing a relapse on the SDGs. Unfortunately, inequalities are in terms of democratic systems and economic widening, and communities are being left more vulnerable.” “The world is not as resilient as we had hoped. as they grapple with competing priorities and achievements. When we look at the state of the Societal structures including democracy are limited resources.Nearly half (49%) of SME world, we are moving backwards.” failing us as we try to tackle huge challenges CEOs felt that their sustainability efforts have GLOBAL INSTABILITY IS FURTHER such as climate change and inequality.” been impacted, as opposed to 36% of the largest The UN Sustainable Development Goals Report RISKING THE SDGS, SETTING BACK 4 companies. As Gurpreet Singh Minhas, Director 2022 puts the situation in even more dire terms: SUSTAINABILITY PROGRESS Geopolitical instability is also amplifying of Harman Finochem Limited notes, “Our “Four years of poverty reduction has been erased existing pressures, such as expanding supply ability to achieve sustainability commitments is by the pandemic, with the working poverty rate While a variety of challenges in the last half chain disruptions, increasing price volatility, hindered by the lack of long-term commitments rising for the first time in two decades. Women decade have influenced progress on the SDGs, and intensifying resource shortages. As CEOs from major stakeholders and policymakers, the accounted for 39% of global employment in current geopolitical instability risks their deal with these impacts in the short term, inaccessibility of useful technology, and lack 2019, but 45% of global employment losses in achievement. Globally, 87% of CEOs feel that sustainability efforts are being disrupted, as of access to affordable finance and resources.” 2020. Progress on electrification has slowed — current levels of geopolitical instability limit shown by the 43% of CEOs who agree that Karen James, Chief Executive Officer of Business on today’s pace there would still be 679 million the world’s ability to achieve the SDGs. The geopolitical instability has set back their for Development, adds, “There is limited support people without electricity in 2030. Our reliance fallout is leaving CEOs with limited confidence sustainability efforts. In particular, both from government and financial institutions for on natural resources is only increasing — rising in multilateralism as they work to achieve the companies in the developing world, as well as SMEs, especially when it comes to sustainability. Global Goals. As the President and CEO of Novo 3 Their risk appetite is too low now, which makes it 65% globally between 2000 and 2019. Energy small and medium-sized enterprises (SMEs) related CO emissions increased 6% in 2021 Nordisk A/S, Lars Fruergaard Jørgensen, notes, globally, are facing the strongest headwinds difficult for us to survive.” 2 1. The United Nations Economic Commission for Europe (2022) Halfway to 2030: UNECE report shows we must accelerate progress 3. Defined as companies with less than USD 25 million in annual revenue. 14 to achieve SDGs in the region. 2. United Nations (2022) Secretary-General’s address to the General Assembly. 4. Defined as companies with greater than USD 1 billion in annual revenue. 15