IISD’s Stefan Jungcurt has interviewed Katarin Wagner, Managing Director of ECONSENSE, a sustainability network of German Business. Wagner shares her perspectives on business engagement in sustainable development action and business perspectives on the future of the 2030 Agenda for Sustainable Development.

How is your organization advancing sustainable development in Germany and other countries?

ECONSENSE is a sustainability platform for German business practitioners to support their efforts to implement the German Sustainability Strategy. We have 51 members, mostly large companies listed on the German DAX stock index. We also work with larger small and medium-sized enterprises (SMEs). Our main objective is to facilitate dialogue on environmental, sustainability and governance (ESG) practices. We are a community of practice.  

What do the SDGs mean to your members ten years after their adoption?

Corporate engagement in sustainable development has a long history, but it is mostly voluntary. The adoption of the SDGs and the Paris Agreement on climate change in 2015 was a good starting point to think about new sustainability pathways and scenarios for net-zero commitments. The SDGs help companies to reflect on sustainable development strategies and identify interdependencies with and between the SDGs.

But there are also challenges. For example, at sustainability events, we often meet civil society organization (CSO) representatives and policymakers who are very engaged, but it is hard for business to cooperate because the discussion is very academic and far away from the business reality. Our members would appreciate a space to discuss how ambitions can be reflected in practice. Civil society and policymakers also don’t realize that sustainability professionals in companies have little power inside companies, making it hard to deliver.

How does ECONSENSE engage with SDG implementation and the voluntary national review (VNR) process in Germany?

In 2024, I joined the German delegation to the UN High-level Political Forum on Sustainable Development (HLPF). It was interesting to see the policymaking process and learn how we can engage, but I was surprised how little dialogue there was. I also participated in the national VNR stakeholder dialogue organized by the German chancellor. Again, I was surprised by the lack of discussion. Participants made statements, but there was no dialogue.

What impact do you expect from Germany’s third VNR?

I haven’t looked at the final VNR yet, but I saw that the SDG Index published by the Sustainable Development Solutions Network (SDSN) ranked Germany fourth. At the same time, overall progress is too slow. If the biggest economies in the world can’t be sustainable, then who can? The uptake of the VNR in Germany is uncertain because Germany has just elected a new government. The VNR was initiated by the previous government, so it is unclear what the new government will do with it.

How do the current geopolitical challenges influence business’ sustainability strategies?

The last 30 years, we benefited from a mostly peaceful world and free trade, but now we’re facing new challenges. Companies are adjusting their risk contingencies. We see that human rights issues and equity are linked to the developments we observe. This raises new questions, for instance, what will be the impact of defense spending on sustainable development finance allocations? What is our responsibility in supply chain management since we depend on resources from the Global South? How do we contribute to a just transition? What does a resilient business model look like in the context of a fair and just transition that recognizes every human’s right to live and prosper in peace?

What are your priorities for the next five years to 2030?

Achieving net-zero operations and aligning corporate strategies with the Paris Agreement are still our highest priorities. Most DAX-listed companies are still interested in the sustainable development agenda, but priorities are shifting. Sustainable development is no longer the most important agenda point in board meetings and steering committees. Addressing sustainability in discussions with banks and investors is becoming more challenging. German companies are also waiting for an EU decision that aims to simplify sustainability reporting and due diligence requirements. It is very important to create a global level playing field for business. We need a united European leadership, especially in the context of the headwinds from the US and Russia.  

How much can we achieve before 2030?

The Paris Agreement has shown how important leaders are to build momentum. We need leaders who want to make a difference. The Task Force on Climate-related Financial Disclosures, led by Michael Bloomberg, for example, made businesses think about their climate risk profiles. This was the first time sustainability management was about our own operations and loan books. Most leaders are too absorbed by the national process. We need someone to hold the pen.

What are your thoughts on the SDGs beyond 2030?

We should keep the SDGs. A new framework would be difficult and time consuming to understand. We should focus on updating the targets, but the Goals themselves are a good fit for all. Policymakers should work on incentives and tax laws to level the playing field. And we must work on the overall narrative of the SDGs. We should try to understand the current backlash and how to get around it. The SDG community should learn to “speak business” and aim to achieve a good balance between economic and sustainability strategies. There are many successful examples of good business strategies and good policies we can use as our North Star. What we need is a space for open and constructive discussion where we can move away from blaming each other and work on the “how” of sustainable development.

I also think the current crises can help us better understand the role of the Global North in sustainable development. We are still not where we should be, and we increasingly realize just how strongly issues are linked. If we don’t solve the climate question, we can’t solve the equality question either. Germany does have an opportunity to lead, but I think leadership must come from Europe.