Why does this report matter right now?
Business is not just about growth. Running a business should be about delivering sustainable growth. At the time of writing, some of us (including me) on the East coast of Australia between the Sunshine Coast and South of Taree are experiencing extreme weather conditions with cyclone Alfred approaching. That’s an impact area of almost 900 km. Some of us in Australia experience social and financial challenges. To put that in perspective, around 3.3 million Australians, or 12.7 per cent of the 26 million in our population, are living below the poverty line. This is worse than the OECD average of 12.1 per cent. Close to 13 per cent of Australians experience food insecurity, compared to only 8.5 per cent in Europe and North America.
Your business might be running great on the (financial) growth model. The problem with just “financial growth” means you could be missing out on a more holistic purpose. A vision beyond financial growth. You can only see that when you step out of the Business As Usual (BAU) treadmill and look at the world around you from a few different perspectives.
Once you do that you’ll notice we simple cannot continue to live and work like we do. Extreme weather conditions have become part of the new normal. We have to look beyond BAU because our context has changed. Natural resources and growth is not endless. It’s time to change our game. That’s why this report is so helpful and provides the insights to look at your business horizon. Perhaps even revisit your vision and (re) connect with a purpose so your sustainable business delivers growth with a purpose and does something to change the game for you, your community and future generations.
The “Transforming Australia: SDG Progress Report 2024” (produced by the Monash Sustainable Development Institute – MSDI) assesses Australia’s progress towards achieving the United Nations Sustainable Development Goals (SDGs) by 2030. It is the third in a series of reports, building upon previous iterations in 2018 and 2020. The report provides a comprehensive evaluation of advancements across 80 indicators (economic, social, and environmental), identifies areas where accelerated action is needed, and explores potential pathways for Australia to accelerate progress towards the SDGs by 2030 and 2050. The report is intended to inform policy, business, and community decisions, ensuring they are based on evidence and aligned with long-term sustainability goals.
System dynamics modelling was used to explore future pathways, comparing a “Transform Australia Pathway” (TAP) against a “Business-As-Usual Pathway“. The report evaluates Australia’s progress using a very simple ‘traffic light’ system based on long-term and short-term trends.
- Green: On Track
- Yellow: Needs Improvement
- Orange: Breakthrough Needed
- Red: Off Track: Going Backwards
Key Findings and Themes:
So what have can be learned from the report?
There are some areas of progress.
- Significant progress in reducing the gender gaps in superannuation (21%), wages (12%) and the proportion of parliamentary seats held by women (38.4%).
- Five of the nine economic indicators from SDG 8 (Economic Growth) are on track to meet 2030 targets, with recent large gains in rates of unemployment (3.7%), underemployment (6.4%) and youth unemployment (8.5%).
- The share of renewable electricity has almost quadrupled since 2010 to 35% and greenhouse gas emissions continue to decline.
- Australia is a safe country with low homicide rates and comparatively high feelings of safety and levels of trust compared to our peers.
Areas Needing Improvement (and even going backward)
- Net overseas aid has declined since 2000 to 0.2% of Gross National Income.
- Poverty level remains.
- Indigenous life expectancy lags.
- Household net worth of the first and second quintiles remain low.
In general the researchers find that:
“Too much of our politics is focused on short-term issues, and not enough on how to tackle longer-term challenges that will determine if the next generation is the first to be worse off than their parents.
“Our modelling sets out a clear and achievable way to overcome these challenges, and proves we can achieve better outcomes for even the most vulnerable Australians, but only if we act boldly and immediately.
“In so many areas, Australia’s progress is not only stagnating but going backwards and we have an obligation to future generations to take the right move at this critical juncture and truly transform Australia’s path.”
Key system Transformations for Accelerated Progress
The report identifies six key transformations required to accelerate Australia’s progress toward the SDGs:
- Wellbeing and Resilience
- Sustainable and Just Economy
- Sustainable Food Systems
- Energy Decarbonisation
- Sustainable Urban Development
- Regenerating the Environmental Commons
Economic Prosperity and the Net Zero Transition
Australia’s long-term economic prosperity depends on its ability to improve energy systems and tackle climate change. Innovation plays a pivotal role in this transition and is mostly delivered through business. This is where the opportunity for Small and Medium-sized Enterprises (SMEs) lies. They’re agile and flexible enough to make decisions and pivot to get ahead of the game.
Key Insights
Perhaps these two quotes can help you find direction and get ready to explore business transformation towards business models that support a circular economy:
- “Australia needs to advance resource efficiency and circularity”
- “Australia’s material footprint at 31.1 tons per capita (12.2.1) has slightly improved since 2019, however, it remains nearly double that of leading countries such as the UK, France and Japan”
Transforming Australia report recommendations
The report offers several recommendations focused on measurement, planning, and governance. Bear in mind that the perspective is mostly on government and policymakers, but informs business on what’s on the horizon. The recommendations can inform your longer term strategy, but could also be turned into smart and sustainable business opportunities. Here’s the list:
- Data-driven policy: Government departments should use the latest data and integrated modelling to evaluate and prioritise policies, improving policy coherence.
- Actionable Commitments: Establish implementation plans for the 56 actions Australia has committed to as part of the United Nations Pact for the Future.
- SDG Integration: Incorporate SDG-aligned targets into the “Measuring What Matters” framework and expand its scope.
- Intergenerational Reporting: Use the Intergenerational Reports as an accountability mechanism, reporting on all the SDGs.
- Indigenous Knowledge: Authentically integrate Aboriginal and Torres Strait Islander knowledges into policy-making.
- Future Generations Commissioner: Establish an independent Commissioner for Future Generations.
- Multi-Sectoral Reference Group: Create a representative, multi-sectoral reference group to create a strong enabling environment for action on the SDGs.
- National Poverty Measures: Agree and adopt official national poverty measures.
From a business point of view your journey starts with aligning your business priorities with your purpose. But have you aligned your purpose with the SDGs?
We believe that Sustainability Delivers Growth with a Purpose and our SDG Align Toolkit helps you to get your SDG priorities set.
To get started sign-up and take the 10-minute Quick scan. The return on your invested time is a simple and powerful dashboard with your SDG priorities.
What’s next?
Have a read of the report and familiarise yourself with the Sustainable Development Goals. Explore the different perspectives and discover how sustainability is more than just the environment. To progress your journey you can start to invite your team-members and discuss what matters most to you and your business. If you want to have a chat about how sustainability can deliver growth for your business? Just reach out and book a free discovery call with one of our team.
