Global Goals, Local Action: Translating SDGs into Tangible Business Strategies

By aligning with the UN’s Sustainable Development Goals, forward-thinking companies transform global targets into powerful drivers of innovation, efficiency and market leadership.

What do a Danish power company, an Indian bank, and a Swedish furniture retailer have in common? They’re all translating the UN’s Sustainable Development Goals (SDGs) from lofty targets into tangible business strategies – and seeing real results.

Ørsted, once reliant on fossil fuels, produced 90% of its energy from renewable sources by 2024, aligning with SDG 7 (Affordable and Clean Energy). This transition not only supports global sustainability goals but has also positioned Ørsted as a leader in the renewable energy market, resulting in a 71% growth in operating profit (EBITDA) in 2024.

Meanwhile, over the last two decades, ICICI Bank’s Self Help Group program supported over nine million women entrepreneurs in rural areas in India with loans, advancing SDGs 8 (Decent Work and Economic Growth) and 5 (Gender Equality). IKEA, committed to responsible forestry, ensures over 98% of the wood used in their products is either Forest Stewardship Council (FSC) certified or recycled, demonstrating their dedication to SDG 15 (Life on Land) and sustainable consumption.

These companies exemplify a growing trend: businesses increasingly see the SDGs not just as an alignment exercise, but as a roadmap for delivering long-term value. By making these goals core to operations, they drive systemic change while reaping tangible rewards.

The business case for SDGs

Why should businesses care about the SDGs? Put simply, sustainability has become a key competitive advantage.

A McKinsey study reveals that many consumers, especially millennials and Gen Z, indicate a willingness to pay more for products that are environmentally friendly. This consumer sentiment translates into tangible business growth. According to another McKinsey report, products making ESG-related claims averaged 28% cumulative growth over a five-year period, compared to just 20% for products without such claims.

By using recycled materials and promoting sustainable consumption, as outdoor clothing company Patagonia does to support SDG 12 (Responsible Consumption and Production), companies can attract and retain these conscious customers.

Employees, too, seek out companies that embed purpose into their practices. As the war for talent intensifies, fair wages, inclusive hiring, and educational opportunities – all aligned with SDG 8 – can be differentiating factors.

What’s more, investors are rewarding sustainability leadership. An analysis by Arabesque and Oxford University found that companies with strong ESG performance had lower costs of capital, higher valuations, and better operational performance. Pursuing SDGs, then, can drive shareholder returns.

Additionally, SDG alignment can lead to improved operational efficiency and risk reduction throughout the supply chain, enhancing a company’s resilience in the face of global challenges.

Strategies in action

How are companies putting this into practice? Leading businesses are moving from high-level commitments to on-the-ground implementation across the value chain:

1. Transforming operations

Merck, a German science and technology company, aligns with SDG 6 (Clean Water and Sanitation) by improving wastewater management to prevent heavy metal contamination. This operational upgrade not only protects ecosystems but also enhances Merck’s regulatory compliance and social license to operate in various communities.

2. Responsibility as a brand value

Patagonia actively supports SDG 12 (Responsible Consumption and Production) by using recycled materials in its products and promoting repair and reuse. Patagonia’s “Worn Wear“ program encourages customers to repair, share, and recycle their gear, extending product lifecycles and reducing waste.

3. Addressing global health challenges

Pharmaceutical company Novo Nordisk’s “Cities Changing Diabetes” program collaborates with over 100 local partners in urban areas to tackle diabetes by analyzing root causes and implementing systemic solutions. This initiative directly addresses the growing urban diabetes epidemic while aligning with SDG 3 (Good Health and Well-being).

From product design to sourcing to distribution, sustainability is being woven into every business function and decision. The common thread: a focus on material issues where social or environmental progress aligns with competitive advantage.

However, companies can still face challenges when implementing SDGs, such as balancing short-term financial pressures with long-term sustainability goals, measuring impact accurately, and navigating complex global supply chains. Successful businesses overcome these obstacles through strong leadership commitment, innovative partnerships, and continuous stakeholder engagement.

The path forward

With 2030 approaching, achieving the SDGs remains a daunting challenge.

But as more companies move from alignment to action and demonstrate the business benefits of embracing the SDGs, private sector leadership could be an accelerating force. We’re seeing the seeds of this virtuous cycle already, as companies that successfully pursue SDGs nudge their competitors to follow suit, setting demand signals that spur industry-wide shifts.

The importance of partnerships (SDG 17) in achieving other SDGs cannot be overstated. Many of the successful initiatives mentioned involve collaborations between companies, NGOs, and local communities, demonstrating that collective action is key to making meaningful progress.

The road ahead is long, but green shoots are emerging. As businesses recognize SDGs as a key to unlocking long-term value, high-level goals are cascading into concrete actions, innovations, and systems-level shifts. A sustainable and inclusive future is within reach if companies continue stepping up ambitions, partnering for scale, and making global goals their local business reality.

The numbers paint a clear picture: $12 trillion in market opportunities and 380 million potential new jobs. These figures, projected by the Business & Sustainable Development Commission for 2030, reveal the scale of business transformation possible through strategic alignment with UN Sustainable Development Goals.

In boardrooms across industries, the conversation has shifted from abstract sustainability targets to concrete market opportunities. Energy giants are reimagining power generation. Tech companies are revolutionizing resource management. Real estate developers are transforming urban landscapes. Their common strategy? Systematic integration of SDGs to drive innovation, efficiency, and growth.