With less than five years to go until 2030, the year set for achieving the 2030 Agenda, the world is behind schedule in achieving the 17 Sustainable Development Goals and 169 targets. Humanity is facing unprecedented geopolitical, economic and environmental challenges, which are redefining the role of businesses and the scope of their commitment to sustainability from an environmental, social, economic and governance perspective.
Companies have acquired a marked awareness of their accountability, and the decisive role they are called upon to play in this area has grown exponentially. One figure alone provides a significant benchmark for this heightened awareness: between 2011 and 2023, the number of S&P 500 companies that published a corporate social responsibility report grew from 11 to 98%1.
This commitment dates back to the emergence of global initiatives in the 1990s, which highlighted the social and environmental limitations of the traditional development model. The United Nations Global Compact was one of the first initiatives in this field, immediately establishing itself on the international stage and playing a pioneering role in building a culture of sustainability focused on businesses. It is no coincidence that the ESG movement was born in 2004 from the "Who Cares Wins" project launched by the UN Global Compact.
Today marks the 25th anniversary of the UN Global Compact, the world's largest initiative for corporate sustainability, which sees our country among the most active participants, with over 700 Italian companies and non-profit organisations signing up to reaffirm and renew their commitments.
Adherence to the Ten Principles is at the heart of our mission
-
The United Nations Global Compact is a multi-stakeholder initiative of the UN Secretary-General, mandated to guide and support the global business community to advance the goals and values of the United Nations through responsible business practices.
-
The United Nations Global Compact is not influenced by the political leanings of any individual country but is based on resolutions of the United Nations General Assembly, thus ensuring an independent and long-term vision focused on sustainable development.
-
The promotion of the Ten Principles addressing human rights, labour standards, environmental protection, and anti-corruption is at the heart of the Global Compact Network Italy Foundation's mission, which is achieved through institutional dialogue, knowledge production, and the sharing of good sustainability practices. These principles are universally shared as they are derived from the Universal Declaration of Human Rights, the ILO Declaration on Labour Rights, the Rio Declaration on Sustainability and the United Nations Convention against Corruption. With the same commitment, UN Global Compact participating companies are dedicated to advancing the Sustainable Development Goals (SDGs) set by the United Nations for 2030.
Sustainability is good for businesses and society as a whole
-
Increasing evidence suggests that sustainability is a strategic factor and an indicator of a company's well-being. A study by McKinsey shows, for example, that companies that achieve higher growth and profitability than their competitors, while improving sustainability and ESG criteria, have achieved an annual total shareholder return (TSR) that is two percentage points higher than companies that have focused solely on financial metrics.2
-
Sustainability is both an ethical commitment and a competitive advantage. Integrating sustainable practices into their business model enables companies to boost their resilience, enhance their reputation and gain access to new market opportunities.
-
There is also significant potential for improvement on the social front, where companies' efforts will need to be stepped up considerably. This is confirmed by the data. In some countries, for example, long-term GDP per capita would be almost 20% higher on average, if gender employment gaps were closed. In addition, when Boards of Directors are gender balanced, companies are 20% more likely to achieve better business outcomes. Gender equality in the workplace can help unlock over $12 trillion in new market value linked to the SDGs.3
-
With the introduction of regulations such as the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), and the subsequent simplifications of the Omnibus Package, the EU's regulatory framework is confirming both the importance of due diligence applied to human rights and environmental protection, and the need for procedures and regulatory compliance to be accessible and commensurate with the real capabilities of businesses. ESG transparency and reporting, as well as performance and impact analysis and monitoring, are strategic elements for improving competitiveness and corporate reputation. Companies that voluntarily choose to disclose the impact of their operations and the shared value they generate for their stakeholders in a transparent manner demonstrate leadership in the transition to sustainability.
-
The integration of environmental and social criteria into business models enables companies to identify systemic risks, take proactive measures and generate a measurable positive impact. This approach is consistent with the OECD Guidelines for Multinational Enterprises and the United Nations Guiding Principles on Business and Human Rights, key documents for ensuring ethical and sustainable business operations.
A global network for shared impact: our strength lies in our unity of purpose on fundamental principles
-
With more than 20,000 companies and over 3,500 non-profit participants based in 167 countries and 63 Local Networks, the UN Global Compact is the world's largest voluntary corporate sustainability initiative. This network represents a unique platform for sharing knowledge, best practices and opportunities for collaboration between businesses, governments and civil society.
-
At a time when some countries are reviewing their sustainability policies and climate-related commitments, Global Compact participating companies are renewing their commitment to the Ten Principles, reaffirming their commitments to the SDGs and confirming their investments in policies that foster inclusive growth, climate resilience and ethical business practices.
-
The experience gained during these first 25 years of activity in Italy shows that working together and sharing best practices is key to speeding up change and encouraging large-scale sustainability actions.
Companies at the forefront of the transition
-
Commitment to sustainability is a competitive advantage. Companies that continue to demonstrate commitment and are able to leverage complexity will have the opportunity to increase their competitive advantage over competitors who fail to do so, maintaining a stronger market position because they are better able to respond to societal changes and preserve the value of their investments.
-
Recent changes in strategy in some countries, such as the United States, may present challenges in relation to certain aspects of corporate sustainability. In this scenario, companies around the world, and European companies in particular, are now being called upon to continue along the path that has already been laid out, remaining at the forefront of responsible commitment.
-
Recognising the challenges of the current context and demonstrating the ability to navigate complexity are key approaches through which companies can reshape their strategies, drawing inspiration from internationally shared values and principles. Returning to the fundamental values that inform and guide corporate culture, such as the Principles of the Global Compact, which transcend political ideologies and cultural divisions, helps to bring different positions closer together and create a stable foundation on which to build future strategies.
-
Reviving antiquated economic models is not sustainable from an environmental, economic or social perspective. Extreme weather events, which are becoming increasingly frequent, motivate governments, businesses, consumers, customers and investors to consider sustainability in the search for lasting solutions, which must fit into a context of increasingly scarce natural resources and environmental fragility. Demands for effective climate mitigation measures are becoming increasingly urgent. Companies that contribute to building resilience, with mitigation and adaptation strategies to address the climate crisis, will also be those that improve their chances of survival.
-
Environmental and social dimensions are closely intertwined: climate change and environmental damage will have a negative impact on the S dimension, with forced migration estimated by the World Bank at around 216 million people by 2050,4 job losses and increased living costs resulting from the depletion of natural resources and difficulty in accessing basic goods such as water. Companies that abandon sustainability and fail to develop solutions tailored to the new context will run the risk of attracting less investment and losing the trust of their stakeholders.
-
The combination of sustainability and digital transition – including Artificial Intelligence and technological innovation in the broadest sense – embodies a scope that goes beyond the streamlining of corporate processes; it can drive the development of new models and solutions, creating tangible economic and social benefits also in the short term. These must be deeply integrated in an ethical and responsible manner: the latest High-Level Meeting of UN Global Compact Network Italy clearly demonstrated this.
Inaction is not an option: a call to action for businesses
-
The world is changing rapidly, and global challenges – from climate change to growing social inequalities – require immediate and decisive action.
-
It is important to strike a balance and ensure synergy between multilateral cooperation between countries on common sustainability goals (as will be necessary, for example, at the upcoming COP30 Climate Conference) and the ability of businesses to contribute to creating value – in their own countries – for communities and local areas, increasing resilience and fostering confidence among citizens.
-
With the Clean Industrial Deal, the European Union is drawing up a framework aimed at promoting a more responsible and transparent economy, allowing focus to be placed on key sustainability aspects within a long-term vision that can be appreciated by investors and financial institutions.
-
The UN Global Compact will continue to support businesses on this path towards sustainable development for a more just, inclusive and fair world, ensuring a welcoming and open space for dialogue and offering tools, training and platforms for discussion to tackle the challenges of the transition.
-
We ask all organisations participating in the UN Global Compact to continue their commitment by engaging in and developing collective actions, contributing to the development of the national and global network, and sharing their experiences with their partners and along their supply chains, so that even more companies join the global commitment to sustainability.
