Aligning ESG and SDGs at the Urban Level (Chicago Council on Global Affairs)

This report outlines how cities and the private sector can collaborate on and magnify sustainability efforts that enable broad systemic change.

Sustainability efforts require not only public policy interventions and resources but also the initiative and innovation of the private sector. These are systematized through the UN Sustainable Development Goals (SDGs) for governments, including at the city level, and through environmental, social, and governance (ESG) principles for companies. Bringing these two approaches into alignment is a crucial step for fostering multi-sectoral sustainability effort, but this alignment is largely unrealized.

Among the local-government sustainability documents examined for this report, mentions of corporate activity are minimal and often superficial, primarily addressing the participation of companies in multi-stakeholder discussions about policy issues. In turn, ESG reports center on the decisions and actions of corporations, with public governance referenced largely in the context of regulatory limitations and policy objectives that affect business operations.

Local governments and companies are undertaking sustainability efforts in their own ways. Merging the two through shared focus and strategy can magnify sustainability efforts in ways that enable the broad systemic change needed to avert climate crisis and societal disruption. This report outlines how a more collaborative approach can proceed, first by providing an overview of policy and corporate sustainability efforts and second by detailing examples of both. The report concludes with a discussion about how sustainability narratives can be harmonized between the two sectors.

https://globalaffairs.org/research/report/aligning-esg-and-sdgs-urban-level

Hartley, Kris. (2023). “Aligning ESG and SDGs at the Urban Level.” Chicago Council on Global Affairs.

PDF: Hartley_2023_Aligning-SDGs-and-ESG-Cities