G20 Framework for SDG Focused Startups; India's Game Changing Pitch

One of the key challenges in achieving the United Nations Sustainable Development Goals (SDGs) is identifying and fostering startups that are truly focused on these goals. To address this issue, India has proposed the G20 nations a robust framework for identifying and guiding SDG-focused startups. 

During the Startup20 Shikhar Summit, a Policy Communique was released, aiming to guide the startup ecosystem across G20 Nations.

The Framework for Identifying and Guiding SDG-Focused Startups

The proposed framework consists of several essential elements that contribute to promoting startups aligned with the SDGs. These elements include disclosure of impact, benchmarking of SDG-linked key performance indicators (KPIs), forecasting of SDG-linked KPIs, and monitoring and reporting of SDG-linked KPIs.

Viewing Sustainability Through SDGs

The framework emphasizes the importance of sustainability by aligning startup activities with the SDGs. Startups are encouraged to direct more capital towards initiatives that contribute to the achievement of the SDGs. This approach ensures that startups are actively working towards addressing the global challenges outlined by the United Nations.

How Does the Process Work?

The framework suggests a screening process to identify startups that are genuinely focused on the SDGs. The process involves assessing the startup's intentionality and evaluating the alignment of their business model and operations with the SDGs. Startups should also demonstrate the ability to identify and measure SDG-linked KPIs.

Guiding Framework for SDG Alignment

To claim alignment with the SDG goals, startups are encouraged to explicitly state their intent to meet the SDGs through their mission, vision, and business plan. They should clearly identify the SDGs they are targeting, showcase how their business model aligns with the SDGs, and demonstrate integration of their business with SDG outcomes. Startups should also be willing to be measured against their stated intent as articulated in various documents, including their business plan.

Screening Process and Benchmarking

The screening process involves verifying the startup's intent towards the SDGs by examining their vision, mission statements, and alignment with specific SDG goals. The process also evaluates the integration of SDG goals into the startup's operating business model and the alignment of their product or service offerings with the SDGs. Additionally, the presence of a reporting structure or an intent to implement one is assessed, along with the startup's commitment to governance and transparency.

Benchmarking and Measurement Process

To measure the success of SDG-focused startups, a benchmarking and measurement process is proposed. This process allows startups to present their current status as a baseline across the identified SDG-linked KPIs. Startups can then track and report their progress in achieving the SDGs over time.

Illustrative Methodology for Defining Impact KPIs

The framework includes an illustrative methodology for defining Impact KPIs, which includes identifying the startup's SDG alignments, developing a Theory of Change, defining Impact KPIs, setting data collection methods, and creating an impact reporting structure. This methodology ensures transparency and accountability, providing a consistent and reliable means to measure and communicate a startup's impact on the SDGs.

The proposed framework offers a structured and measurable approach to assess and promote startups that contribute to the SDGs. By identifying and scaling these startups, the framework supports innovation, entrepreneurship, and sustainable development. This initiative aligns with the commitment of G20 nations towards building an inclusive and resilient global economy. With the implementation of this framework, the startup ecosystem can play a significant role in achieving the United Nations' Sustainable Development Goals.