Corporate sustainability has been dominated by the demands—and concerns—imposed by the Corporate Sustainability Reporting Directive (CSRD). With the reporting deadline approaching for the first companies covered by the directive, little attention has been given to other topics: the CSRD has centralized discussions and corporate efforts regarding sustainability.
In this context, we cannot help but ask ourselves: what is the place of the Sustainable Development Goals (SDGs) in this scenario? Does it still make sense to discuss this Agenda?
The answer is clear: absolutely.
The SDGs remain the primary global prosperity agenda, and their role is unquestionably relevant. This moment presents an opportunity to reflect on how this Agenda can (and should) continue to be further integrated into corporate strategy and communication.
Although the CSRD does not explicitly reference the SDGs, the connection between the Goals and the European Sustainability Reporting Standards (ESRS) is evident. The ESRS are the reporting criteria established by the CSRD to standardize and specify the information that companies must disclose, facilitating its analysis and comprehension. Each standard covers a range of topics and subtopics directly related to the scope of the SDGs. This alignment means that by reporting on the various ESRS, companies are indirectly communicating their contribution to the progress of the 2030 Agenda. By disclosing risks and mitigation plans, companies can also identify negative impacts on the SDGs and propose corrective actions. This process not only enhances transparency but also allows for a more direct connection with the global Goals.
Despite this potential, there is a real risk that the SDGs may be sidelined during the adaptation period to the CSRD. Since the directive does not formally require them, companies may choose to streamline their reports, omitting the integration of the SDGs. However, rather than abandoning them, organizations can use the SDGs as a competitive differentiator, ensuring stronger alignment between their sustainability objectives and global challenges while reinforcing their role in society.
A practical approach involves aligning the SDGs with the ESRS by identifying the specific SDG targets that correspond to each topic covered by the standards. Additionally, linking the SDGs to the company’s strategy enables the identification of priority action areas, thereby strengthening its positive impact.
As companies adapt to a higher level of detail and scrutiny in their reports, it is important to remember that the CSRD goes beyond mere regulatory compliance. The directive encourages organizations to rethink their sustainability strategies and policies, fostering internal discussions and broader reflections on the impact of their activities. It is precisely this aspect of the CSRD that offers companies a unique opportunity to rethink their sustainability efforts, using the SDGs as a starting point to assess their global impact.
While the initial adaptation period requires significant effort, the ultimate goal is to establish a more efficient reporting system that allows companies to focus on higher-impact initiatives. In this context, the CSRD and the SDGs can function as complementary tools, helping organizations align their sustainability objectives and practices with global challenges. By exploring this connection, companies can gain a better understanding of the impact of their activities, refine their strategies, and communicate their contributions more clearly. Thus, the SDGs are not at risk but can instead assume a strengthened role—provided that companies recognize their strategic value and actively integrate them into their strategies and reports.
Have a great and impactful week!
Natália Cantarino
Researcher and Operations Manager
Center for Responsible Business & Leadership