4 Benefits of Embracing the SDGs in Puerto Rican MSMEs
Written By Carla Joan
ABOUT THE AUTHOR | Carla Joan is the Business Development and Marketing Director at Álvarez-Díaz & Villalón. She also heads the firm's Internship Program.
IN A WORLD FACING PRESSING ENVIRONMENTAL AND SOCIAL CHALLENGES, SUSTAINABLE DEVELOPMENT HAS EMERGED AS A GUIDING PRINCIPLE FOR BUSINESSES SEEKING LONG-TERM SUCCESS.
For Puerto Rican Micro, Small, and Medium-sized Enterprises (MSMEs), embracing the Sustainable Development Goals (SDGs) offers a transformative path to addressing global issues while securing sustainable prosperity for their businesses and the island.
In celebration of UN’s Micro, Small, and Medium-sized Enterprises Day on June 27th, we will explore the relevance of the SDGs to Puerto Rican MSMEs and how adopting sustainable practices can benefit them and pave the way for a prosperous future.
UNDERSTANDING THE SUSTAINABLE DEVELOPMENT GOALS
Launched in 2015, the SDGs include 17 interconnected goals aimed at addressing global challenges, including poverty, inequality, climate change, environmental degradation, peace, and justice. They were adopted by all United Nations Member States as a universal call to action to protect the planet and ensure that all people enjoy peace and prosperity by 2030.
These goals can provide a roadmap for Puerto Rican MSMEs to adopt sustainable business practices that generate profit and contribute to broader social and environmental well-being.
THE RELEVANCE OF SDGS TO PUERTO RICAN MSMEs
At first glance, it might seem that the SDGs are primarily aimed at national governments and multinational corporations. However, the goals hold significant relevance for MSMEs because they are essential drivers of economic growth, job creation, and innovation. With more than 90% of businesses worldwide being MSMEs, they play a critical role in achieving the Sustainable Development Goals (SDGs). Compared to large corporations, MSMEs tend to be more flexible, innovative, and quick to respond to changes. They play an important role and have a notable impact on their local communities.
In Puerto Rico, there are more than 40,000 MSMEs, representing almost 97% of the businesses on the island. By adopting the SDGs, Puerto Rican MSMEs can play a crucial role in addressing these issues directly. They are the backbone of the Puerto Rican economy, and their actions can have a profound impact on local communities and the environment.
At AD&V, we believe in the power of design to make a positive impact on lives and communities. As a Certified B Corporation and a proud ally of the United Nations Global Compact (UNGC) since 2019, we are committed to integrating the SDGs into our business practices. Since 2017, our finished projects have directly impacted 29,554 lives and indirectly impacted 281,866 additional lives. The resources and tools offered by the UNGC have guided us into the impact we’re making today and the impact we want to have for years to come.
The UNGC is the world's largest corporate sustainability initiative providing a framework for businesses to align their operations with universal principles on human rights, labor, environment, and anti-corruption. By joining the UNGC, Puerto Rican MSMEs can access resources and networks to better integrate the SDGs into their strategies.
Through the alignment of AD&V’s operations with the SDGs, our firm aims to create a ripple effect that encourages other businesses to adopt sustainable practices. With this commitment, we see the potential for collective action to drive meaningful change as we work to hopefully inspire other MSMEs in Puerto Rico to join us on this journey.
Essentially, embracing the SDGs allows businesses to align their operations with a broader global agenda and contribute to positive change. Take a look at some of the benefits they can bring to Puerto Rican MSMEs:
1. CREATING A TRIPLE-BOTTOM-LINE
The adoption of sustainable practices enables MSMEs to pursue a triple-bottom-line, focusing not only on profits but also on people and the planet. Sustainability presents an opportunity for MSMEs to enhance efficiency, reduce waste, and optimize resource use, leading to cost savings and improved financial performance.
By incorporating sustainable production methods and reducing waste (SDG 12: Responsible Consumption and Production), MSMEs can save on costs and minimize their environmental impact, contributing to the preservation of Puerto Rico’s natural resources and biodiversity.
2. GAINING A COMPETITIVE ADVANTAGE
Embracing sustainability also offers a competitive advantage for Puerto Rican MSMEs. In today's market, consumers are increasingly conscious of their purchasing decisions, preferring products and services from businesses that demonstrate social and environmental responsibility.
Aligning business practices with gender equality initiatives (SDG 5: Gender Equality) can attract a broader customer base, including those who value gender-inclusive practices, enhancing customer loyalty and brand reputation.
3. UNLOCKING INNOVATION & GROWTH
Sustainable practices can also serve as a catalyst for innovation within MSMEs. Finding creative solutions to address sustainability challenges can lead to new product lines, services, and business models.
Businesses that embrace sustainability are often better positioned to adapt to changing market demands and regulatory requirements, fostering long-term growth and resilience.
Investing in sustainable energy solutions (SDG 7: Affordable and Clean Energy) can drive innovation in energy-efficient products and services, positioning MSMEs as leaders in green technology and fostering long-term growth and resilience.
4. BUILDING PARTNERSHIPS FOR IMPACT
Embracing the SDGs also creates opportunities for partnerships and collaborations. MSMEs can amplify their impact and create meaningful change by connecting with other businesses, non-profit organizations, and governmental agencies with similar sustainability goals.
Engaging in partnerships to improve local community welfare (SDG 17: Partnerships for the Goals) can lead to resource sharing and joint projects, enhancing the overall contribution to sustainable development in Puerto Rico.
A COLLECTIVE EFFORT
The Sustainable Development Goals present MSMEs with a transformative path to sustainable prosperity. In shaping a sustainable future for Puerto Rico, the collective efforts of businesses, both small and large, will make a profound difference. Together, let us embark on the path to sustainable prosperity and ensure a thriving and resilient future for the island and its people.