By Namit Agarwal, World Benchmarking Alliance

As the UN High-level Political Forum on Sustainable Development (HLPF) approaches in July 2023, the world faces a daunting challenge of implementing the SDGs with just seven years remaining before the 2030 deadline. Against the backdrop of global crises and conflicts, the achievement of these ambitious Goals seems increasingly threatened.

The ongoing economic recovery from the COVID-19 pandemic, marked by surging inflation, supply chain disruptions, labor market pressures, and unsustainable debt burdens remains precarious and uneven. This not only undermines the promise to ‘leave no one behind’ (LNOB) but also intensifies a sense of injustice felt by people worldwide. Transformative and rapid steps are urgently needed. Otherwise, far too many individuals will be left behind.

While countries mention the LNOB principle in the Voluntary National Reviews (VNRs) that they present at the HLPF, only a small number of them provide information on the policy strategies employed to implement this principle. The most vulnerable populations, especially women and children, continue to bear the heaviest burdens during the overlapping crises. Women, in particular, face the constraints of lost jobs and livelihoods, disrupted schooling, and increased responsibilities for unpaid care work at home.

In order to achieve the SDGs, we must question the prevailing approach to economic growth and adopt principles of inclusive development, aiming for substantive equality and respect for human rights. The need to address profound and persistent inequalities and put a spotlight on the LNOB principle has never been more urgent.

One crucial factor for achieving the SDGs is the active involvement of the private sector. The private sector possesses significant untapped potential to not only improve the chances of achieving the SDGs but also ensure that economic growth is sustainable and inclusive. Sustainability has become an integral part of the responsibilities of C-suite executives worldwide, and many of the world’s largest companies are reporting on their contributions to the SDGs. However, their current approach is inadequate to meet the expectations of LNOB. Most companies only take a piecemeal approach to sustainability, and when they do set SDG targets, they are driven by the intention to ‘do no harm’ rather than ‘do good.’ To ensure that the private sector contributes to the SDGs in a meaningful way, we must collaborate to measure and compare private actors’ performance and hold them accountable.

Regrettably, the world’s most influential companies are not meeting the fundamental expectations of socially responsible business conduct, including the principles outlined in the UN Guiding Principles for Business and Human Rights. Meaningful stakeholder engagement is essential for companies to address negative impacts and tailor their actions to the needs and experiences of rights holders. However, company performance in engaging with affected stakeholders, involving them in risk assessments, and communicating negative impacts remains discouraging.

VNRs from previous years have recognized the significance of the private sector in creating jobs and livelihoods. By ensuring fair and living wages, the private sector has a direct impact on economic development, families, and individuals. Unfortunately, the reality falls far behind expectations, with only a meagre 13% of companies paying living wages or setting targets to do so across their operations and supply chains.

Gender inequality is a pervasive issue that transcends systems, geographies, and industries. By dismantling barriers to gender equality and promoting women’s empowerment within the private sector, significant progress can be made across all the SDGs. Currently, the global gender gap remains alarmingly high, and at the current pace of progress, it will take over 131 years to achieve complete closure. Transformative actions from the private sector, in coordination with government and civil society, can help accelerate progress and address social norms impeding gender equality.

To ensure the enjoyment of human rights by people and communities is linked to global supply chains and that private actors work towards resolving inequalities in power and wealth, companies need to be held accountable for their influence. Recent legislative actions on supply chain due diligence and transparency are crucial steps toward creating a level playing field for companies. A company’s commitments to supply chain due diligence must align with its purchasing practices and sustainability commitments. Companies need to integrate sustainability commitments in their decisions to purchase goods or services, such as improving working conditions throughout their value chains.

While private sector financing for the SDGs features prominently in many VNRs, there is a noticeable lack of focus on corporate tax transparency. The world’s most influential companies fall short of meeting all the requirements for disclosing a global tax approach and their country-by-country corporate income tax payments. This opacity undermines trust in the global economic system and necessitates greater transparency regarding approaches to tax and the amounts paid by influential companies.

Over the next seven years, we have a small window of opportunity to get the SDGs back on track and fulfil the promise of leaving no one behind. By enabling the private sector to fulfil its commitments to the SDGs, we can unlock its true potential. Establishing a mechanism to monitor the private sector’s contribution to the LNOB promise will significantly accelerate progress. Countries conducting their VNRs at the subsequent HLPF and beyond also have an opportunity to report on the private sector’s contribution to their national sustainable agendas in a holistic way.

It is time to recognize the crucial role of the private sector in achieving the SDGs and leaving no one behind. By fostering collaboration and holding companies accountable, we can harness the private sector’s potential to create a sustainable and inclusive future for all. The time for action is now.