INSIGHTS FROM CDP DATA TO ASSESS

PROGRESS AND DRIVE ACTION ON

THE SUSTAINABLE DEVELOPMENT GOALS

Policy Brief 2021

 CONTENTS

Prepared by 03 Introduction

Sandra Bernick, 04 CDP disclosure and the SDGs

SDG Consultant
07 Key Insights from the CDP dataset
Petra Sarapatkova,
SDG Consultant 10 Case studies

Pietro Bertazzi,
Director,
Policy Engagement and
External Affairs

Helen Finlay,
Senior Global Policy
Manager, Forests

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INTRODUCTION

The landmark report ‘Transforming our World: the 2030

Agenda for Sustainable Development’ was adopted on
25 September 2015 by Heads of State and Government
at a special UN summit. The Agenda is a commitment to
eradicate poverty and achieve sustainable development
by 2030 worldwide. Its adoption was an important
achievement, providing for a shared global vision towards
sustainable development for all. The Agenda includes
17 Sustainable Development Goals (SDGs), which are
further broken down into 169 targets and 230 indicators to
facilitate monitoring of progress.

Achieving sustainable development raised concerns that companies could

cannot rely on governments alone; active SDG-wash4 or cherry-pick what to report on,
involvement of businesses, sub-regional focusing only on those SDGs that put them
authorities, capital markets and other under a favourable light5. Knowing where
non-state actors is vital. There is a growing companies really stand with regards to their
appetite to engage with the SDG agenda sustainability performance is therefore of
among the business community. The key importance. CDP, through its disclosure
UN Global Compact found that almost platform used by over 9,600 companies
all CEOs in their 2019 study believed that worldwide, is uniquely positioned to assess
sustainability is crucial to their future progress towards the SDGs, identify
success, up from 93% a decade earlier. progressive policy to activate businesses, as
CEOs also understand the importance of well as governmental authorities, and drive
the SDG agenda specifically: 71% of CEOs corporate, city and regional government
interviewed in the same study agreed that engagement with this agenda more broadly.
business had a key role to play in achieving
the SDGs1. Similarly, in 2019, PwC found This briefing summarises the key insights
that among 1,141 global companies, 72% gathered from a recently completed
mentioned the SDGs somewhere in their exercise, which mapped CDP questionnaires
annual reporting, though other analyses onto SDG indicators. It provides an overview
estimate this figure to be as low as 40%2. of all the indicators for which CDP data can
be readily used, identifies opportunities
Insights regarding tangible actions that for a fuller exploitation of CDP data and
businesses take on the SDGs are scarce concludes with several examples of
and it appears that too few are translating successful corporate engagement with the
their promises into action; only 14% of SDG agenda.
the businesses in the PwC analysis had
set specific targets for their contributions
to the SDG3. Many observers have also

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 CDP DISCLOSURE AND THE SDGs

CDP has been actively involved in the SDG agenda since 2015, when the SDG
compass was launched by the Global Reporting Initiative, the UN Global Compact,
and the World Business Council for Sustainable Development, culminating in the
report titled, ‘Business Reporting on the SDGs: An Analysis of the Goals and Targets’.

CDP’s recent mapping exercise of the SDG indicators iterative approach, where questions and related data points
against its disclosure data aims to assess business were first sifted through a set of exclusion criteria, with
contribution and progress towards the SDGs, understand those retained then reviewed in a stepwise manner against
gaps and inform policy action. As CDP’s data collection SDG goals, targets and, finally, indicators. The mapping
currently focuses primarily on environmental sustainability, at the final, most granular level was complemented with
this was restricted to the 66 indicators corresponding to a rating of the strength of the link, with a scale between
the six environmental goals6. a strong, direct relevance (3) to a given indicator to
tangential, indirect relevance (1) on the other.
The mapping methodology consisted of linking each
individual data point from the four CDP questionnaires The main finding is that CDP data provides insights on
(Climate Change; Forests; Water Security; and Cities, the most business-relevant SDG indicators across the six
States and Regions (CStaR)) to the most appropriate environmental SDGs.
SDG indicator. This was accomplished through an

6 7 11 12 13 15
Clean water Affordable Sustainable Sustainable Climate Life
and sanitation and clean cities and consumption action on land
energy communities and production

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Table 1: SDG indicators where CDP data is almost entirely aligned

Cities,
Climate Water
SDG Indicators matched at relevancy level 3 Forests States and
change security
Regions

Ensure availability and sustainable management of water and sanitation for all

Proportion of population using safely

6.1.1
managed drinking water services

6 Proportion of population using (a)

safely managed sanitation services
6.2.1
and (b) a hand-washing facility with
soap and water

Change in water-use efficiency over

6.4.1
time

Level of water stress: freshwater

Clean water 6.4.2 withdrawal as a proportion of available
freshwater resources
and sanitation
Degree of integrated water resources
6.5.1
management

Change in the extent of water-related

6.6.1
ecosystems over time

Ensure access to affordable, reliable, sustainable and modern energy for all
7

Renewable energy share in the total

7.2.1
final energy consumption
Affordable and
clean energy

Make cities and human settlements inclusive, safe, resilient and sustainable

Proportion of population that has

convenient access to public transport,
11.2.1
by sex, age and persons with
disabilities
11
Proportion of municipal solid waste
collected and managed in controlled
11.6.1
facilities out of total municipal waste
generated, by cities

Annual mean levels of fine particulate

11.6.2 matter (e.g. PM2.5 and PM10) in cities
(population weighted)
Sustainable cities
and communities Proportion of local governments that
adopt and implement local disaster
11.b.2 risk reduction strategies in line with
national disaster risk reduction
strategies
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 Cities,
Climate Water
SDG Indicators matched at relevancy level 3 Forests States and
change security
Regions

Ensure sustainable consumption and production patterns

12

(a) Food loss index and (b) food

12.3.1
Sustainable waste index
consumption
and production

Take urgent action to combat climate change and its impacts

13 Proportion of local governments that

adopt and implement local disaster
13.1.3 risk reduction strategies in line with
national disaster risk reduction
strategies
Climate action
Total greenhouse gas emissions per
13.2.2
year

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage
15
forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

Forest area as a proportion of total

15.1.1
land area

Progress towards sustainable forest

Life on land 15.2.1
management

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KEY INSIGHTS FROM THE CDP DATASET

In the following section, the key contributions that CDP data can bring to the SDG
agenda are highlighted.

1 Considerable potential for filling in SDG data gaps

For some SDG indicators, data is still not reported. CDP data can potentially help
address some of these gaps, given the number of businesses now disclosing
through CDP.

Almost six years on from the launch of the SDG agenda, only 22 out of the 93
(23%) environment-related indicators show good progress. For the other 77% of
environment-related SDGs indicators, there is either insufficient data to assess
progress (68%) or it is unlikely that the target will be met without scaling up action
(9%). CDP data on private sector progress on the SDGs has the potential to help close
these gaps and bridge new partnerships between the public and private sector.

2 SDG indicator gaps exist, mostly for good reasons

SDG indicators most closely matched in the CDP data are those that are defined
in simpler terms and at the right level.

While the CDP data covers all six environmental SDG goals, not all indicators that
belong to these goals are covered equally well. This is related to the complexity of the
SDG indicators and the granularity with which they are measured. What this means
is that often an indicator will be a composite of many data points and not all are
available. Indicators are often defined as pertaining to a municipal government, or the
indicator is implicitly measuring at the country level, for example indicators that cover
signatures of specific treaties. Goals that have more of these types of indicators are
generally harder to match. SDG 6 indicators, for example, are not defined at a specific
level and are particularly well matched by CDP data (see Table 1).

3 Learning from top performers

CDP data offers unique insight on the actions of companies that are leaders on
integrating sustainability and addressing SDG indicators.

A variety of corporate approaches to sustainability (and to SDG engagement,

specifically) exist. CDP data offers an opportunity to learn about the way in which
different companies addressing SDG indicators “get there”. CDP captures both
qualitative and quantitative data, producing deeper insights and understanding on
company behaviour and trends.

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 4 Understanding inaction
CDP data can enable policymakers to better understand business inaction around
the SDGs. For many relevant indicators, the CDP questionnaires capture the
reasons businesses do not follow best practices.

Many businesses already disclose which SDGs they act on. Yet, for many businesses
there are gaps, or they do not act at all. Understanding why businesses do not
act on specific SDGs can bring important insights to policymakers interested in
supporting businesses in contributing to the SDGs. This is particularly true for
indicators where progress has been slow or stagnating, or even reversing, as we have
recently seen as a result of the Covid-19 pandemic7. The CDP data can thus offer an
opportunity to learn about barriers and challenges in reaching the SDGs. Fostering an
understanding of why businesses de-prioritise certain issues, what type of support
they may require, or where specifically the roadblocks are by looking at the types of
businesses or sectors that are lagging behind.

5 Converting insights to actions

CDP data can provide policymakers with insights on what it takes for business to
move from inaction to action. CDP collects data relevant to SDG indicators that
allow businesses to report intentions to act and the long time series of CDP data
allows analysts to trace whether these pledges are realised.

Research has shown that businesses are aware of the importance of the SDG
agenda and often even communicate intentions to integrate the SDGs into their
strategies8. Yet, actions often remain elusive. A unique strength of CDP data is that
many SDG relevant questions often include options beyond the binary “yes” and
“no”. Normally binary questions in the CDP questionnaires also include options
such as “in progress” or “planning to do so within two years”. These data points
allow CDP to analyse how many businesses are gearing up for action, adding an
important dimension to the overall picture of progress towards the SDGs. The time
series available for many companies also allows analysts to understand whether
companies actually follow through on their pledges.

The same data also allows CDP to see the contexts within which intentions are
converted to action. For example, whether certain types of businesses or sectors
are more likely to be ramping up action compared to others, or whether sub-national
governments in specific geographies are supporting specific parts of the SDG agenda.

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6 Forecasting progress on SDGs
CDP questions that allow companies to state actions they intend to undertake would
allow the preparation of forecasts on potential progress towards relevant goals.

The international community aims to make ambitious strides towards reaching the
SDGs by 2030. Data on most indicators exists which allows the tracking of progress
to date. However, little exists in terms of projections9. CDP data allows to partially fill
this gap by allowing to assess the near-term progress businesses will likely make.
Many questions in CDP surveys enquire about plans rather than the current state of
affairs and could be used to create some forward-looking indicators or forecasts.

These indicators could help understand where progress is most likely to come from,
before it happens, and where businesses are lagging. For indicators where this is
feasible, this could help engage with or support the groups and issues where most
impact can be achieved. Few organisations can offer these types of forward-looking
indicators as intentions are infrequently captured in similar surveys and few have the
reach of the CDP disclosure10.

7 Highlighting linkages between SDGs

Mapping CDP data to SDG indicators shows clearly that many data points are
related to multiple goals, illustrating the interconnections between different
SDGs and highlighting potential synergies in addressing them.

Much of the SDG conversation focuses on contributions to specific indicators,

targets or even just goals. Discussions rarely consider the linkages between
indicators belonging to different goals11. Mapping the CDP data to SDG indicators
had the side effect of highlighting the interlinkages between different goals, targets
and even indicators. For example, in the forest questionnaire, questions often fit well
with indicators under goals 12 and 15. Of course, such content then, for the most
part, maps perfectly only to one. However, it is clear that links between ‘Sustainable
Consumption and Production’ and ‘Life on Land’ are strong, and tackling a specific
indicator under goal 15 often also requires actions on indicators grouped under 12.
This relationship repeats across other goals, targets and indicators.

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 CASE STUDIES

Case study 1 showcases how CDP data can contribute to the United Nation’s work on
assessing SDG progress.

CASE STUDY 1
CDP data used in UN-Water report

In the SDG 6 Synthesis Report on Water and Sanitation 2. MoI in line with SDG target 6.4: to increase water-use
(2018), UN-Water used CDP’s data to examine five efficiency across all sectors and ensure sustainable
aspects related to the availability and sustainable withdrawals and supply of freshwater to address
management of water and sanitation for all: water scarcity and substantially reduce the number of
people suffering from water scarcity, providing data
1. Means of implementation (MoI) in line with SDG target revealing:
6.2: to achieve access to adequate and equitable
(i) risks of water scarcity and how they might lead
sanitation and hygiene for all, by assessing whether
to the supply chain disruption.
the private sector can provide the access for water,
sanitation, and hygiene (WASH) to their employees. (ii) insights on water quality and quantity, indicating
that companies reported good-quality water as a vital
element for their direct operations.
(iii) that the private sector faces water challenges
and solutions that align with the 2030 SDG agenda.
3. MoI in line with SDG target 6.5: to implement
integrated water resources management at all levels,
including through transboundary cooperation as
appropriate, and target 6.b: to support and strengthen
the participation of local communities in improving
water and sanitation management. CDP data shows
how companies have begun to initiate investment
in mitigating and adapting to water scarcity by
engaging suppliers, public policy makers and other
stakeholders (i.e., creating projects for farmers
to teach good agricultural practices including the
enhancement of irrigation techniques).
4. Estimate financial cost impacts in relation to poor
water quality on industry due to constant declining
water. CDP’s survey was the first systemic linkage
between water and financial information, relevant
data to measure and disclose water-related
information to institutional investors.
5. Provide insights regarding the top five water-related
risk drivers (increased water scarcity, flooding,
drought, increased water stress, and climate change)
and top five water-related risks (higher operation
costs, supply chain disruption, water supply
disruption, constraint to growth, and brand damage).

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There are different approaches to bring sustainability to the core of business strategy.
Some companies focus on their internal operations, embedding sustainability deeply
within their business logic, while others leverage their comparative advantage to
engage in external projects, sometimes in partnership with other actors, such as NGOs,
business alliances or local government. The following two case studies illustrate how
two large multinational firms engage with SDGs.

CASE STUDY 2
Nestle: addressing deforestation along supply chains12

Like many companies in the food sector, Nestle’s deforestation of smaller patches, which account for
operations risk supporting deforestation through 57% of palm oil driven deforestation. In 2019, Nestle
increased demand for commodities such as cocoa or reviewed 388,047 Starling alerts for deforestation within
palm oil. Supply chains for these commodities are long 50 km of its mills. They then use these reports to identify
and complex and this makes it difficult to ensure that they offending suppliers. They apply a firm rule: when further
do not originate in deforested areas. Tracing their origins investigation reveals offending behaviour by a supplier,
throughout the full supply chain can be very difficult and they are banned within sixty days. Nestle has banned 14
thus deforestation may be unwittingly supported. suppliers since 2018 this way and also makes this public
via a transparency dashboard on their website.
Nestle has been one of the companies in the food
sector at the forefront of tacking this issue. Aligning Now, ten years on from their deforestation commitment,
their actions with SDG 15, 'Life on Land’, the company the company is moving from a more passive approach
made a no deforestation commitment by 2010. Tackling (responding to deforestation), to a more active one by
deforestation is a long journey – from understanding implementing a forest-positive policy. This involves
where in the supply chain problems exist, to devising actively seeking out suppliers that “are conserving and
monitoring frameworks and finally excluding bad actors restoring forests while promoting sustainable livelihoods
from supply chains. To do so effectively, Nestle employs and respecting human rights”, according to the company.
a Satellite-backed monitoring tool, Starling. Starling A first pilot period for this is under way in Aceh province
allows the company to spot deforestation for palm oil, in Indonesia.
pulp and paper, and is particularly well-suited to spot

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 CASE STUDY 3

Multi Bintang engaging with SDG 6 Clean Water & Sanitation

Multi Bintang is one of the largest beer producers in by 2023, which implies returning of 1.5 hectolitres to
Indonesia, owned by HEINEKEN N.V. As part of the Brew A the environment for every hectolitre of water used for
Better World strategy, working towards healthy watershed beverage production.
especially in water-stressed area is a core priority, where
the brewer needs to look into internal efficiencies and In terms of watershed action, Multi Bintang is involved in
promote external water security to support healthy a range of projects. One involves the building of biopori
watershed. Water stress is an important issue in many holes, which are narrow, meter-deep pits dug into the soil
parts of the country and operating breweries in these and filled with vegetable scraps and compost material.
conditions is an on-going challenge. Multi Bintang By slowing rainwater runoff, they preserve water and
launched series of Water Stewardship Programmes since prevent flooding. Other key projects include large scale
2014, which aim to protect water resources and preserve reforestation and river restoration. Watershed protection
them for future generations. These programmes focus on requires collective action. In line with this, the brewer
both internal and external efforts. Internally, operational organised targeted stakeholder engagement in support
water efficiency and efficient wastewater treatment, while of United Nations Industrial Development Organization
externally source protection and water balancing at the (UNIDO), which led to the founding of two local watershed
respective sites watersheds are priority. water alliances in Brantas and Cisadane. Multi Bintang’s
efforts in water resource protection earned it a special
Multi Bintang quantifies its water usage targets in terms recognition at the Sustainable Business Awards by Global
of clear quantified indicators which can be linked to SDG Initiatives in collaboration with PwC five times in a row.
indicators. The company declared that it wants to reduce In 2021, the watershed health protection of the Brantas
water usage in production to 2.35 hectolitres of water per and Cisadane will be accelerated through a new multi-
hectolitre of beer brewed by 2022. As of June 2019, the stakeholder partnership, the Indonesia Water Coalition.
level reached is 3.06 hectolitres of water per hectolitre Members include local and international NGOs and six
of beer, and the company claims it is on track to reach other multinational companies aiming to promote water
the target. Moreover, it aims to be 100% water balanced security in Indonesia.

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REFERENCES

1 United Nations Global Compact (2019) The decade to deliver – a call to business action
2 KPMG found only 40% of businesses surveyed in their 2017 Survey of Corporate Responsibility Reporting.
3 PwC (2019) Creating a strategy for a better world
4 SDG washing is a term equivalent to greenwashing. It describes a practice of corporate reporting where the
company focuses on its intentions and its activities that align well with the SDG agenda but fails to integrate
sustainability into its business practices.
5 GRI and UN Global Compact (2018) Integrating the SDGs into corporate reporting: a practical guide.
6 The environmental SDG goals are: SDG 6 Clean Water and Sanitation, SDG 7 Affordable and Clean Energy, SDG 11
Sustainable Cities and Communities, SDG 12 Responsible Consumption and Production, SDG 13 Climate Action
and SDG 15 Life on Land.
7 UNDESA (2020) The Sustainable Development Goals Report 2020
8 For example, the 2017 UN Global Compact SDG report singled this problem out as a key issue. UN Global
Compact (2017) Progress report – Business solutions to sustainable development.
9 A couple of early efforts in this direction exist. These are often very high-level assessments that focus on
establishing whether certain goals can feasibly be met or should be adjusted. An example is a report from the
Overseas Development Institute that focuses on changing the agenda. ODI (2015) Projecting progress- Reaching
the SDGs by 2030. Others, such as a quantitative modelling exercise from DNV GL, also fall short – they only cover
the SDGs at goal level and focus on progress at the region level. DNV GL (2015) Future of Spaceship Earth – Will
the sustainable development goals be reached?
10 Of course, these measures may be compromised if businesses are prone to report intentions that are not followed
through. CDP could consider their historical data to see how intentions translated into action in the past to
understand how feasible or useful this would be.
11 Research that has explicitly focused on this tends to focus on how the environment underpins or enables other
goals. For an overview see: Scharlemann et al (2020) Towards understanding interactions between Sustainable
Development Goals: the role of environment–human linkages.
12 Based on the following sources: https://www.nestle.com/csv/raw-materials/palm-oil/palm-oil-transparency-
dashboard, https://www.starling-verification.com, https://www.nestle.com/stories/deforestation-learnings-
forest-footprint-pilot-palm-oil-supply-chain, https://www.nestle.co.uk/en-gb/stories/starling-nestle-deforestation-
monitoring-system, https://www.nestle.com/csv/raw-materials/palm-oil/palm-oil-transparency-dashboard,
https://www.nestle.com/csv/raw-materials/palm-oil

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 DISCLOSURE INSIGHT ACTION

For more information please contact:

CDP Policy Engagement

Pietro Bertazzi,
Director,
Policy Engagement and External Affairs
[email protected]

Helen Finlay,
Senior Global Policy Manager, Forests
[email protected]

CDP Worldwide
Level 4
60 Great Tower Street
London EC3R 5AZ
Tel: +44 (0) 20 3818 3900
www.cdp.net

In partnership with:

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