Sustainalytics

According to the 2010 Business Impact Report, 20 Dutch multinationals have made a positive impact on more than 8.2 million people in developing countries. This highlights that the private sector plays a larger than expected role in contributing to the Millennium Development Goals (MDGs). The Sustainalytics and NCDO study revealed that these companies contributed to the MDGs through job creation, commercial activities as well as community involvement.  

The study also compared the impact of the companies’ commercial activities versus their community involvement.  In doing so, the results showed that the pursuit of business opportunities in developing markets can influence development goals just as effectively as philanthropy. In fact, the findings show more than 4 million people benefited from commercial activities, just under the 4.2 million who benefited from philanthropic programs. Most notably, commercial initiatives have a significant impact on alleviating poverty (MDG1), more so than community investment activities alone; approximately 2.5 million people benefited from business activities versus 607,000 from community investments.

The report, commissioned by NCDO, was prepared by Sustainalytics and assessed the positive impacts of 20 multinational corporations on the MDGs. The participating companies include Air France-KLM, Ahold, Royal Dutch Shell, Akzo Nobel, ING Group, Phillips, Randstad, Unilever, BAM Group, ArcelorMittal, TNT, DSM, Arcadis, CSM, Crucell, SNS Reall, Vlisco, Dunea, and Colruyt Group en Olam International. The report is now available at www.sustainalytics.com.

Sustainalytics used the MDG Scan, which was designed for companies to measure their positive contribution to the MDGs. Sustainalytics and NCDO have been collaborating since 2005 on the development of the Scan. A unique and rare tool, the MDG Scan can strengthen the connections between business activities and social progress. This was evidenced by the sample groups’ combined positive influence on millions of people in developing countries. This achievement is under-reported and under-appreciated.

“Companies, particularly multinationals, have the greatest incentive to understand that investing in a sound business environment can harness new market opportunities and lead to a competitive advantage. They are also uniquely positioned to share business expertise and resources to influence development goals,” said Azadeh Sabour, Associate Consultant, Sustainalytics. “Poverty alleviation was influenced the most by the sample group's combined activities, and maternal health and gender equality were influenced the least. The corporations that identify the connection between these challenges, their market opportunities and investment goals could focus on these under-achieving goals and reap the reputational rewards, while improving the lives of millions of women."

The Millennium Development Goals (MDGs)

In 2000, 189 nations committed to the United Nations Millennium Declaration. The objective of the Declaration is to promote a comprehensive and coordinated approach to poverty reduction, eradicating the spread of diseases such as HIV/AIDS and providing universal primary education. The Millennium Development Goals are quantified targets for addressing extreme poverty in its many dimensions.