A report released earlier this year found that companies committed to the UN Global Compact perform better across their supply chains than those who have not made such a commitment. Sustainability performance assessment themes included environment, labor and human rights, business ethics and sustainable procurement. The report assessed 20,000 companies and was conducted by EcoVadis, a provider of business sustainability ratings.
Companies participating in the UN Global Compact are correlated with efforts to mitigate corporate social responsibility (CSR) risks. This is especially true for small and medium-sized companies because compared to larger companies they are able to act more quickly. The study found that participation in the UN Global Compact outperformed non-participants by the widest margins in the sustainable procurement and environment themes. This may be due to executive level involvement which is part of the Compact. Participating companies have also indicated that there are reputational benefits.
“We must achieve the Sustainable Development Goals — for our own sake and for future generations,” said the CEO and & Executive Director of the UN Global Compact Lise Kingo. “More and more businesses are supporting the Global Goals, and now we must drive for the tipping points that will make sustainability a mainstream reality for small and large businesses everywhere. It is encouraging to see that our Ten Principles on human rights, labor, environment and anti-corruption are helping companies to improve their sustainability performance.”
