Geopolitical fragmentation and lack of governance hinder the 2030 agenda
Global sustainability is experiencing one of its biggest crises since the passing of the 2030 Agenda. Just 17% of Sustainable Development Goals (SDGs) have made sufficient progress, whilst the other 83% are in the doldrums or moving backwards, according to the eighth Report about the Contribution of Spanish Companies to SDGs, ‘Sostenibilidad, competitividad y disrupción geopolítica’ (‘Sustainability, competitiveness and geopolitical disruption') by the Esade Chair of Leadership and Sustainability and the ”la Caixa” Foundation’s Social Observatory.
According to the report, this stagnation is the result of an international landscape characterized by geopolitical fragmentation, weak multilateral institutions and the uneven implementation of strategies to combat climate change. “Ten years after being passed, most SDGs will not be achieved,” warned Àngel Castiñeira, director of the Esade Leadership and Sustainability Chair. “Regulatory pressure has bolstered business transparency, but not their transformation. Emissions continue to increase, biodiversity is faltering and inequalities are becoming chronic."
Adverse, uncoordinated global landscape
The setback in sustainability is happening in an international landscape characterized by tensions between economic blocs, armed conflicts, climate crises and a standstill in multilateral summits. Neither COP29 nor COP16 on biodiversity achieved scope agreements. The United Nations Future Pact, intended to reactivate global cooperation, is not binding and faces an increasingly polarized world. National strategies also vary: Europe is reviewing its green agenda in order to cater for competitiveness and security, and domestic pressure in the USA is shunting sustainability backwards. Meanwhile, China is pushing ahead with its energy transition despite the inherent contradictions of its model.
In this scenario, the report warns that companies must lead change and become proactive social agents. “Sustainability can no longer rely solely on regulations and international political willingness,” underlined Castiñeira. “In a world of uncertainty, companies must undertake active, co-responsible leadership able to transform their commitment into real impact. Sustainability cannot be separated from social justice: without a fair transition that prioritizes the most vulnerable groups and an equitable distribution of resources, the SDGs will lose their transformative meaning and global legitimacy, and without this transformative drive, the 2030 Agenda runs the risk of becoming a figurehead of multilateral failure.”
Improved business transparency, but lack of impact
The study, which surveyed 105 listed Spanish companies, highlights substantial progress in the disclosure of non-financial information: 91% of these Spanish listed companies already report ESG data, compared to 50% in 2017. Materiality analyses (94%) and the double-materiality approach (63%) are also widespread, taking into account both financial risks and environmental and social impacts.
This improvement in transparency does not, however, always translate into effective actions. A mere 22% of companies say they have reduced the emissions of their value chains, and only 26% analyze their impact on biodiversity. The majority mention environmental commitments without specifying any measurable goals or monitoring mechanisms.
Furthermore, SDGs are not incorporated evenly: the ones mentioned most often, i.e. Decent Work (SDG 8), Climate Action (SDG 13) and Responsible Production (SDG 12), concern areas that are regulated or strategic for businesses. Objectives such as the End of Poverty (SDG 1), Zero Hunger (SDG 2) and Life Below Water (SDG 14), on the other hand, are still secondary in business strategies.
Sustainability in governance, but gender gaps persist
Corporate governance is beginning to make room for sustainability. One third of companies already have specific sustainability committees, mainly comprised of independent directors (73%) and women (63%). Complete parity is, however, a long way off. Women account for 35% of board members, a figure still lower than the 40% mandatory by 2026, and even fewer managerial positions (28%), and 38% of the total workforce.
