INDUSTRIAL POLICY FOR THE SUSTAINABLE DEVELOPMENT GOALS INCREASING THE PRIVATE SECTOR'S CONTRIBUTION.

Foreword
Acknowledgements
Acronyms, abbreviations and units of measure
Executive summary
	Firms should consider sustainability shifts as an intangible investment
	Sound policies for the SDGs require an effort on the measurement of firms’ awareness, actions and impacts
	Key recommendations
1 Introduction
	References
2 The role of the business sector with respect to the SDGs
	Context
	Firms can complement governments and households in the pursuit of SDGs
	Firms can benefit from sustainability efforts through several channels
		Do sustainability efforts increase the financial value of a firm?
		Through which channels can sustainability efforts positively affect the financial value of a firm?
		Tensions between financial and sustainability objectives may also arise
	How firms tackle SDGs in practice
		Typology of firms’ SDG actions
		Examples of firms’ SDG actions
		How firms are developing their business models around sustainability
	SDG orientation of firms: Quantitative evidence from the UNGC participating firms
		SDG orientation of firms
		Channel of firms’ SDG actions
	References
	Notes
3 Measuring the share of the private sector related to the SDGs
	Context
	Mapping sectoral classifications into SDGs
		Sustainable Development Goals Business Actions Identifier
		Using the algorithm to identify the sectors that are relevant for the SDGs
		Incorporating external information to supplement the output of the algorithm
		Caveats
	Measuring the share of the private sector contributing to the SDGs
		A significant share of value added can be linked to the SDGs, especially to SDG 9
		There is a significant level of heterogeneity across countries
		The indirect contribution of upstream sectors can amount to close to 80% of SDG-related activities
	Exports and the contribution to the SDGs
	Firms are contributing to a wide range of SDGs
	References
	Notes
4 The cross-border impact of SDG-related activities
	Context
	ICIO tables at a glance
	Manufacturing value added: Indicator 9.2.1
		Manufacturing value added and the SDG framework
		Manufacturing heavily relies on upstream and foreign activities
		All countries rely significantly on foreign manufacturing goods, even countries with a large manufacturing base
		Although global, the integration also has a regional dimension
	Medium and high-tech industry value added: Indicator 9.B.1
		Medium and high-tech industry and the SDG framework
		OECD countries significantly contribute to fulfilling the final demand of MHTI goods and services, including in other partner economies
	R&D expenditures: Indicator 9.5.1
		R&D expenditures and the SDG framework
		On average, R&D expenditures amount to 2.4% of OECD countries’ GDP
		The share of foreign R&D value added in final demand is low
		The United States represents more than 40% of the worldwide value added embodied in foreign final demand
		R&D value chains have become significantly more global between 2005 and 2015
	Agricultural industry value added: Target 2.4
		Agricultural industry value added and the SDG framework
		Some countries are better equipped for agricultural production than others
		Exporting countries contribute to meeting the final demand in other countries
	References
	Notes
5 Industrial policies for the SDGs
	Which policies are likely to affect firms’ commitment to SDGs?
		Several policy tools can be used to foster the contribution of firms to SDGs
		From policy instruments to strategies
	OECD countries’ policy experience in incentivising firms to contribute to SDGs
		OECD countries’ policy experience in incentivising firms to contribute to SDGs
		Main findings from the policy benchmarking exercise
	References
	Notes
6 Designing and implementing SDG-oriented industrial policies
	Mandatory compliance instruments are a key component of policy packages, but they need to be complemented with other types of policies
	The development of new solutions to global challenges requires a vibrant ecosystem of start-ups and entrepreneurs
	Support to firms, and especially SMEs, is needed to foster the transition to sustainable business models
	Beyond core SDG industrial policies, framework and demand-side instruments are needed
	Well-designed mission-oriented industrial strategies provide an adequate framework to consistently articulate policy instruments
	References
	Notes
Annex A. Examples of firms’ SDG actions
	References
Annex B. Performance of the SDG identification algorithm
	Estimation of the algorithm
	Robustness checks
	SDG-ISIC mapping after the incorporation of external information
	References
	Notes
Annex C.  Detailed results: Measuring the contribution of the private sector to the SDGs
	References
Annex D. Regional and country coverage
Annex E. Results of the policy benchmarking exercise
	Canada
		Policies addressing multiple types of SDGs
		Policies addressing health, well-being and safety-related SDGs, notably SDGs 3 and 8
		Policies addressing equity-related SDGs, notably SDG5
		Policies addressing environment-related SDGs, notably SDGs 7, 12, 13, 14 and 15
	Costa Rica
		Policies addressing multiple types of SDGs
		Policies addressing health, well-being and safety-related SDGs, notably SDGs 3 and 8
		Policies addressing equity-related SDGs, notably SDG 5
		Policies addressing environment-related SDGs, notably SDGs 7, 12, 13, 14 and 15
	European Union
		Policies addressing multiple types of SDGs
		Policies addressing health, well-being and safety-related SDGs, notably SDGs 3 and 8
		Policies addressing equity-related SDGs, notably SDG 5
		Policies addressing environment-related SDGs, notably SDGs 7, 12, 13, 14 and 15
	France
		Policies addressing multiple types of SDGs
		Policies addressing health, well-being and safety-related SDGs, notably SDGs 3 and 8
		Policies addressing equity-related SDGs, notably SDG 5
		Policies addressing environment-related SDGs, notably SDGs 7, 12, 13, 14 and 15
	Germany
		Policies addressing multiple types of SDGs
		Policies addressing health, well-being and safety-related SDGs, notably SDGs 3 and 8
		Policies addressing equity-related SDGs, notably SDG 5
		Policies addressing environment-related SDGs, notably SDGs 7, 12, 13, 14 and 15
	Japan
		Policies addressing multiple types of SDGs
		Policies addressing health, well-being and safety-related SDGs, notably SDGs 3 and 8
		Policies addressing equity-related SDGs, notably SDG 5
		Policies addressing environment-related SDGs, notably SDGs 7, 12, 13, 14 and 15
	Korea
		Policies addressing multiple types of SDGs
		Policies addressing health, well-being and safety-related SDGs, notably SDGs 3 and 8
		Policies addressing equity-related SDGs, notably SDG 5
		Policies addressing environment-related SDGs, notably SDGs 7, 12, 13, 14 and 15
	New Zealand
		Policies addressing multiple types of SDGs
		Policies addressing health, well-being and safety-related SDGs, notably SDGs 3 and 8
		Policies addressing equity-related SDGs, notably SDG 5
		Policies addressing environment-related SDGs, notably SDGs 7, 12, 13, 14 and 15
	References
	Notes
Annex F. Framework conditions and sustainability
	Fostering the accountability of firms
	Competition policies and sustainability
	References