As Climate Week concluded, new research from a UNSW ThinkTank and UN Global Compact Network Australia has highlighted a significant correlation between corporate responsibility to sustainability and financial performance among Australian companies.

The study found that ASX members of the UN Global Compact Network Australia (UNGCNA) experienced an impressive 18 per cent growth in enterprise value, compared to a mere 3 per cent growth for non-members.

This revelation comes as Australia prepares to commemorate its first Sustainable Development Goal (SDG) Flag Day on September 25th.

Iconic landmarks across the country, including Melbourne Town Hall, Questacon, the Old Parliament House, and the Treasury Building in Canberra, will be illuminated in SDG colours to raise awareness and call for action towards a sustainable future.

The Sustainable Development Report indicates that Australia currently ranks 37th out of 166 countries on the SDG Index, with a score of 76.9.

The country is on track to achieve approximately 51 per cent of its SDG targets by 2030, showcasing both progress and areas requiring further attention.

Kate Dundas, Executive Director of the UN Global Compact Network Australia, emphasised the critical role of businesses in driving sustainability: “This week is a powerful reminder of the progress we’ve made and the work that still lies ahead, with the business community having a critical role in driving us toward net zero.”

Dundas also noted the positive correlation between ethical business practices and financial performance: “We are seeing an increase in ethical business behaviour translate to resilience and professional and business longevity, fostering faster and more sustained growth.”

The UN Global Compact Network Australia is urging businesses to use SDG Flag Day as an opportunity to engage with employees and stakeholders about their sustainability strategies.

This initiative aligns with the global Forward Faster program, which focuses on accelerating efforts in climate action, finance and investment, gender equality, living wage, and water resilience.

As Australia continues to navigate challenges in its sustainability journey, including the urgent need for energy transition and reducing its high per capita material footprint, the business community’s role in driving sustainable progress becomes increasingly crucial.

The findings from this research and the upcoming SDG Flag Day set the stage for Australia’s first UN sustainability Summit, UNiting Business Live Australia, scheduled for October 2024 in Sydney.

This event aims to equip leaders with actionable solutions to challenges at the intersection of net zero, nature-positive, human rights, and governance.