What Standardized Measurement Frameworks Can Businesses Adopt to Track SDG Progress?

 As the world continues to strive for the Sustainable Development Goals (SDGs) set by the United Nations, businesses are increasingly expected to align their operations with these global goals. With 17 SDGs to address, each with specific targets and indicators, the need for businesses to track and report their progress is critical. However, measuring the impact of business activities on SDGs can be complex, requiring standardized frameworks that enable companies to consistently assess, report, and improve their performance.

In this blog, we will explore the standardized measurement frameworks that businesses can adopt to effectively track their SDG progress, ensuring that their actions align with global sustainability standards, meet stakeholder expectations, and contribute to achieving the 2030 Agenda for Sustainable Development.

1. Global Reporting Initiative (GRI)

The Global Reporting Initiative (GRI) is one of the most widely used frameworks for sustainability reporting. It provides businesses with standardized guidelines to measure and disclose their environmental, social, and governance (ESG) impacts. The GRI framework helps companies report on a wide range of sustainability metrics, including climate change, human rights, labor practices, and community impact—many of which are directly linked to the SDGs.

The GRI standards are structured around core principles that emphasize transparency, stakeholder inclusivity, materiality, and accountability. These standards cover a wide spectrum of sustainability issues and are designed to help businesses communicate their contributions to sustainable development in a clear and comparable way.

For companies wanting to track progress towards SDG-specific goals, GRI has aligned its indicators with the SDGs. The framework includes specific SDG indicators that allow businesses to measure their performance in areas such as climate action, decent work, gender equality, and reduced inequalities. By adopting GRI standards, businesses can comprehensively assess their sustainability efforts and demonstrate their commitment to the SDGs to stakeholders.

2. Sustainability Accounting Standards Board (SASB)

The Sustainability Accounting Standards Board (SASB) has developed a set of standards focused on financially material sustainability issues across different industries. While SASB’s standards are mainly geared towards investors, they provide a robust framework for companies to measure and disclose ESG performance in a way that highlights the financial relevance of sustainability.

The SASB standards cover a wide range of industries, with specific metrics related to climate change, water management, labor practices, product safety, and supply chain management, among others. These metrics align with several SDGs, such as Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), and Responsible Consumption and Production (SDG 12).

By adopting SASB standards, businesses can track their progress in achieving SDG-related objectives in a way that speaks directly to the financial materiality of sustainability issues, helping them manage risks, opportunities, and performance related to global development goals. Additionally, aligning with SASB can enhance a company’s attractiveness to investors who are increasingly prioritizing sustainability in their investment strategies.

3. The UN Global Compact and SDG Reporting Tool

The UN Global Compact is a voluntary initiative for businesses that encourages companies to adopt policies and practices aligned with human rights, labor standards, environmental sustainability, and anti-corruption. One of the key resources offered by the UN Global Compact is its SDG Reporting Tool, which is specifically designed to help businesses measure and report their progress toward the SDGs.

The SDG Reporting Tool is a practical and structured framework that enables companies to assess their contributions to each of the 17 SDGs. The tool prompts businesses to provide data on their efforts in areas such as climate change, health and well-being, gender equality, and sustainable consumption. It helps businesses not only track their progress but also communicate their contributions to stakeholders and the public.

Businesses that are signatories to the UN Global Compact are required to submit an annual Communication on Progress (COP), which includes information on their SDG initiatives. This COP serves as an essential vehicle for transparency, encouraging companies to demonstrate their commitment to sustainable practices and to continuously improve their alignment with the SDGs.

4. B Impact Assessment (BIA)

The B Impact Assessment (BIA) is an assessment tool used by companies to evaluate their impact on various stakeholders, including workers, customers, the community, and the environment. It is a key component of the B Corporation Certification process, which recognizes businesses that meet rigorous social and environmental performance standards.

The BIA provides businesses with a comprehensive framework to assess their operations against a wide range of sustainability and social impact metrics. These include governance, workers, community, environment, and customers—all of which align with various SDGs such as Decent Work and Economic Growth (SDG 8), Reduced Inequality (SDG 10), and Climate Action (SDG 13).

By using the BIA, businesses can track their performance in a structured way, identify areas for improvement, and measure their alignment with SDGs. The tool helps organizations understand their social and environmental footprint, providing actionable insights for enhancing sustainability efforts and creating positive impact.

5. ISO 26000: Social Responsibility

The ISO 26000 standard is a globally recognized framework for social responsibility. While it is not a certification standard, it provides businesses with guidelines on how to operate in a socially responsible manner. The framework covers areas such as organizational governance, human rights, labor practices, environmental impact, fair operating practices, and consumer issues.

By using ISO 26000, businesses can ensure that their operations are aligned with the SDGs and that they are making a positive contribution to sustainable development. The standard encourages businesses to consider the social and environmental consequences of their actions and offers guidance on how to integrate responsible practices into their day-to-day operations.

ISO 26000’s focus on stakeholder engagement and transparency makes it a valuable tool for businesses that wish to track their progress toward SDG-related goals, particularly in areas related to gender equality (SDG 5), sustainable communities (SDG 11), and responsible consumption (SDG 12).

6. The SDG Compass

The SDG Compass is a guide for businesses developed by the Global Reporting Initiative (GRI), UN Global Compact, World Business Council for Sustainable Development (WBCSD), and UNDP. It provides a detailed step-by-step process for companies to align their strategies with the SDGs and measure their contributions toward achieving them.

The SDG Compass offers a clear and structured approach for businesses to identify which SDGs are most relevant to their operations, set measurable targets, and track progress. This framework emphasizes integration into business strategy, ensuring that sustainability is embedded into the core of business operations rather than being treated as an afterthought.

By adopting the SDG Compass, businesses can systematically align their goals with the SDGs, ensure that their efforts are measurable, and communicate their contributions transparently to stakeholders.

7. Integrated Reporting Framework (IR)

The Integrated Reporting Framework (IR) is a reporting standard developed by the International Integrated Reporting Council (IIRC). It provides businesses with a comprehensive framework for reporting on both financial and non-financial performance, including sustainability impacts and contributions to the SDGs.

The framework helps businesses connect their financial performance with their social, environmental, and governance outcomes, making it easier for stakeholders to see the value generated across multiple dimensions. Integrated reporting encourages businesses to consider their long-term value creation and how their strategies contribute to global development goals.

The IR framework also encourages holistic thinking, where businesses are urged to consider how their activities impact various capitals, including natural, social, human, and financial capital. This aligns well with SDG-focused strategies that require companies to balance economic growth with social and environmental responsibilities.

Conclusion

Tracking SDG progress is a critical aspect of any business committed to sustainability, and there are several standardized measurement frameworks that can help companies align their operations with global goals. Whether through GRI, SASB, the UN Global Compact, or other tools, businesses can use these frameworks to track their contributions to the SDGs, report on their progress, and ensure accountability to stakeholders.

By adopting these measurement frameworks, businesses not only contribute to the achievement of the 2030 Agenda for Sustainable Development but also gain a competitive edge by improving their transparency, enhancing their reputation, and fostering stronger relationships with customers, investors, and communities. The key is to choose the framework that best aligns with the company’s industry, operational goals, and sustainability vision, and to ensure continuous improvement in measuring, reporting, and achieving SDG targets.