In the past weeks, we explored together three essential dimensions for a responsible business: Corporate Purpose, Strategy for Impact, and Responsible Leadership.
Today, in the final issue of this series, we turn to a cornerstone of sustainable business transformation: the integration of the United Nations Sustainable Development Goals (SDGs) into your corporate strategy.
Why integrate the SDGs?
The SDGs are not just a global call for action — they are a strategic framework for resilience, competitiveness, and innovation.
Companies that embed the SDGs into their core strategy:
· Create long-term value by aligning with global megatrends (climate transition, demographic shifts, social inclusion).
· Attract capital and talent, as investors, employees, and consumers increasingly demand purpose-driven action.
· Anticipate regulation, since European and global sustainability directives are progressively aligned with the SDGs.
· Drive systemic impact, contributing to solutions for society’s most urgent challenges.
What the data shows
The 2024 Report by the Observatório dos ODS nas Empresas Portuguesas shows clear progress in the integration of the SDGs into corporate strategies in Portugal.
Large Companies
· Integration: 82.8% integrate the SDGs into their strategies (67.2% in 2023).
· Alignment: 34.5% explicitly define their strategies in line with the SDGs (26.2% in 2023).
· Business opportunity: 87.9% see the SDGs as a driver of business opportunity (78.7% in 2023).
· Decision-making: 79.3% report that strategic SDGs support their decision-making processes (73.8% in 2023).
· Reporting: 94% now include the SDGs in their Sustainability Reports, with 32% referring explicitly to specific SDG targets.
· Barriers: The SDG framework is often seen as distant from business language; many companies lean on ESG frameworks as more practical for corporate contexts.
SMEs
· Integration: 40.1% integrate the SDGs into their strategies (30.6% in 2023).
· Alignment: 6.8% define their strategy directly according to the SDGs (1.9% in 2023).
· Business opportunity: 66.7% recognize the SDGs as a business opportunity (63.9% in 2023).
· Strategic focus: The majority (71.2%) still prefer to select SDGs aligned with existing strategies rather than use them to shape new ones.
· Reporting: Only 13.6% publish Sustainability Reports, compared to almost all large companies.
- Barriers: Main obstacles remain lack of knowledge on how to operationalize the SDGs at corporate level and limited financial and human resources.
The data confirms that Portuguese companies are increasingly aligning their strategies with the SDGs. Large companies a re leading the way, embedding the goals into strategic planning, reporting, and governance, while SMEs are progressing more slowly, constrained by resources and knowledge. Most companies, however, now acknowledge the SDGs as a genuine driver of business opportunity. The challenge ahead lies in turning this awareness into measurable outcomes, ensuring that the SDGs become not just a reference framework, but a catalyst for innovation and long-term value creation.
Scored Quiz: How aligned is your company?
For each question, select the answer that best represents your company. Add up your points at the end to see where you stand.
1. Defining focus Has your company identified 2–4 strategic SDGs aligned with its business model?
· (0 pts) No, we haven’t defined SDGs.
· (1 pt) We reference SDGs broadly but without focus.
· (2 pts) We have identified a few SDGs, but not directly linked to strategy.
· (3 pts) We clearly focus on 2–4 SDGs strongly aligned with our core activities.
2. Setting targets Do you translate the SDGs into SMART goals and KPIs?
· (0 pts) No SDG-related goals exist.
· (1 pt) We mention them in reports but without measurable targets.
· (2 pts) Some KPIs exist, but they are not systematically tracked.
· (3 pts) We have clear, SMART KPIs linked to incentives and business outcomes.
3. Governance & culture Is there clear ownership of SDG implementation inside your company?
· (0 pts) No responsibility assigned.
· (1 pt) A CSR or Sustainability team refers to SDGs occasionally.
· (2 pts) A specific team or leader is accountable.
· (3 pts) SDGs are integrated in governance structures, with board oversight.
4. Reporting & transparency How are the SDGs included in your sustainability report?
· (0 pts) Not mentioned.
· (1 pt) Only in introductory sections.
· (2 pts) Referenced throughout but not linked to metrics or CEO message.
· (3 pts) Fully embedded in reporting, CEO’s message, board agenda, and KPIs.
5. Opportunities & innovation Does your company use the SDGs as a framework for innovation?
· (0 pts) No.
· (1 pt) We use SDGs for communication but not for innovation.
· (2 pts) We occasionally link SDGs to new projects.
· (3 pts) We systematically use tools (e.g., SDG morphological box) to innovate.
6. Business case Do you monitor how the SDGs contribute to your business performance?
· (0 pts) No link established.
· (1 pt) We assume indirect benefits but do not measure them.
· (2 pts) We measure impact occasionally.
· (3 pts) We clearly monitor how SDGs drive cost reduction, new business models, market share or brand value.
Your Score & Ranking
· 0–5 points: Emerging Your company is at an early stage. Awareness exists, but action is not yet strategic. Consider starting with 2–3 SDGs most relevant to your business model.
· 6–11 points: Progressing You are moving from awareness to implementation. Some practices exist, but there are gaps in governance, measurement, or innovation. Strengthening accountability and KPIs is key.
· 12–15 points: Advanced SDGs are embedded across governance, reporting, and innovation. Your company sees them as an opportunity for impact and competitiveness. Next step: scale impact and industry leadership.
· 16–18 points: Leader Your company is a role model in SDG integration. You align strategy, culture, and business models with the SDGs, influencing your industry and stakeholders.
As António Guterres reminds us, we are in the “Era of Global Boiling.” Only 16% of SDG targets are currently on track to 2030. Businesses have both the responsibility and the opportunity to accelerate this agenda.
So we leave you with a final challenge: Is your company merely referencing the SDGs — or truly integrating them as a driver of business strategy and innovation?
Let’s transform ambition into action.
Have a great and impactful week!
Mafalda Sarmento, Consultant and Researcher at CRBL and Sustainability Officer at CATÓLICA-LISBON