Achieving the 17 Sustainable Development Goals (SDGs) is worth trillions of dollars and will open a wealth of new market opportunities. The Sustainian acts as your navigator to lead you to the markets of tomorrow.

Unlocking the multi-trillion dollar market

Throughout the last 1,000 days, much time and effort has been spent analysing, discussing and surveying the potential of the 17 Sustainable Development Goals (SDGs). However, the question remains: will we, throughout the next 1,000 days, prove the economic potential of implementing the Global Goals by turning them into new business ventures?

Showcasing this is the precise mission of The Sustainian. Week by week we want to document, demonstrate and communicate how each of the Global Goals can open up new, great market opportunities. We will identify and pinpoint those new market opportunities, by region, country, and sector as well as presenting real life cases from the world’s biggest platform of vetted sustainable solutions – collected by Sustainia over recent years. In addition, we will be constantly adding new content, whilst continuously asking our readers to nominate the most innovate solutions from their sectors.

Week by week we want to document, demonstrate and communicate how each of the Global Goals can open up new, great market opportunities.

During the next 1,000 days, it is our ambition to prove that it is possible to turn the biggest global risks into a myriad of new great opportunities – not only because we have to, but because it is a natural step for companies and institutions around the world. We must make it clear that markets for doing good are increasingly outshining the markets for doing bad.

The proof is out there

Our proposal should be an easy sell for business. The market potential for fulfilling the SDGs is truly mind-boggling. Several authoritative reports have conclusively and convincingly pointed to the staggering gains to be made from achieving the SDGs. It is a message too dangerous to ignore, as such changes will transform the business game forever.

Better Business, Better World

According to the Business & Sustainable Development Commission’s report Better Business, Better World, fulfilling the SDGs within the coming years can generate a market value estimated to be at least $12 trillion a year, distributed among hundreds of new markets. That is approximately 1/7 of the total, global GDP. And this is even a conservative estimate. The market potential could actually be two to three times higher.

Fulfilling the SDGs within the coming years can generate a market value estimated to be at least $12 trillion a year, distributed among hundreds of new markets.

Using the SDGs as a framework, the Better Business, Better World report identified 60 new market hotspots distributed among four economic systems: Food & Agriculture, Cities, Energy & Materials, and Health & Well-Being. 50% of the value is located in developing countries. 380 million jobs can be created by 2030 if business opportunities pursued relate to the fulfillment of the SDGs. 90% of these are in developing countries. The numbers prove that the SDGs could trigger the biggest and fastest market revolution ever – provided that these numbers and potentials are widely known and recognized.

This is one key mission for The Sustainian.

Figure 1. The 12 largest business themes in a world economy heading for the Global Goals. (Source: Better Business, Better World, 2017)

Global Opportunity Report

The Global Opportunity Report is a joint initiative by Sustainia, DNV GL and the UN Global Compact. With the help of 17,000 global business leaders, the project has documented the realistic potentials of these new markets and points to the staggering economic gains that can be made from turning global risks into business opportunities.

The findings are now summed up in the recent Global Opportunity Report from 2018. It shows that the 17 Global Goals open up no less than 55 new markets, worth trillions of dollars.

5 New Market Opportunities You May Never Have Heard About

Upcycling Carbon

Capturing CO2 and either recycling it back into industrial processes as a feedstock, or locking it up into new materials, provides an opportunity to lower atmospheric carbon concentrations, thereby generating more value, emitting less, and accelerating carbon negative technologies. $1.1 trillion is the potential annual revenue opportunity from carbon-based products.

Reimagining Plastics

Opportunity for SDG 14 “Life below water”. Eighty percent of marine litter is plastic, emphasizing the need for solutions that rethink how we design and use plastic, particularly in single-use applications, which can help reduce the damage plastics do to our oceans. More than $120 billion is lost annually through inefficient end-of-life processes.

Fresh Water Production

Opportunity for SDG 6 “Clean water and sanitation”. Creating new freshwater sources using renewably powered wastewater treatment and desalination offers a crucial opportunity to meet the demand for fresh water while providing new and essential markets for clean energy.

Reuse to Repower

Opportunity for SDG 12 “Responsible consumption and production”. As the mobility sector transitions to an electric future, we will soon see a wave of used batteries becoming obsolete when their capacity becomes too low to use in electric vehicles (EVs). However, by repurposing mobile EV batteries in new stationary settings, it is possible to double battery life cycles to more than 20 years. There is already a rapidly growing market, and the oncoming wave of used EV batteries will mean a wealth of opportunities for those ready to take them.

Rural Growth Initiatives

Opportunity for SDG 8 “Decent work and economic growth”. Creating job opportunities and fostering growth in rural areas can relieve migration pressure and alleviate overcrowding in cities. Initiatives such as access to energy, communication, and infrastructure could enable broader economic development and access to new jobs in rural areas.

 

System Transformation

Along the same lines, GeSI and Accenture Strategy’s report #SystemTransformation revealed how the deployment of digital solutions for SDG achievement could boost the economy by a staggering $9 trillion by 2030. More precisely it identifies savings of over $4.6 trillion, while generating $4.5 trillion in new income across industries such as agriculture, retail, education, renewable energy, and mobility.

Tech is the key to unlocking the new markets

Taking a deep dive into the Global Opportunity Report, it also reveals the importance of digital solutions. Most of the 55 new market opportunities emerge at the intersection of new technology and sustainability risks. The vast majority of the 55 new markets employ technological innovations, but the digitalization of certain products and services will not be enough to remain competitive in the future market universe. True innovation lies in finding the intersection of a business sector and technology.

The deployment of digital solutions for SDG achievement could boost the economy by a staggering $9 trillion by 2030.

Health, food, water, and energy are just some of the examples of key markets that interact with technology to push the boundaries of innovation:

1. Health > Internet of People

The internet of people (using mobile technologies in healthcare) is opening up new opportunities to deliver healthcare to low-income, remote communities via mobile solutions.

2. Food > Smart Farming

Utilizing technological advancements like drip agriculture and access to real-time weather data is helping both large and small-scale farmers produce more with less.

3. Water > Smart Water Tech

Innovative sensor technology and smart grids enable cities to manage their water supplies more efficiently and prevent disruptions to service delivery.

4. Energy > Reuse to Repower

Reusing EV batteries in new stationary settings can help to more efficiently use lithium resources and decarbonize the energy system, where an increasing reliance on variable renewables requires greater energy storage flexibility.

Markets converge

While it is clear that new technologies are pivotal for all industries to remain relevant, they will have to do even more to capitalize on the SDGs. Businesses also need to move beyond their core and live on the edge of their markets. Market opportunities increasingly exist at the edge of innovation and experimentation – and the real business potential arises when markets overlap, merge and interact.

The edge markets that exist, for instance between health and food; food and water; and water and energy signify that all industries, while focusing on their core markets, need to move beyond their comfort zone and operate on the frontiers to capitalize on future opportunities.

Examples of market convergence:

1. Health + Food > Antibiotic-Free Food

Growing concerns over health issues are creating greater demand for antibiotic-free food. Therefore, the antibiotic-free food market is growing rapidly as these two sectors overlap to offer opportunities to protect people.

2. Food + Water > Water-Efficient Agriculture

Techniques like effective rainwater harvesting and gravity powered irrigation allow for the continuation of high-yield agriculture while still saving water.

3. Water + Energy > Fresh Water Production

Creating new freshwater sources using renewable energy-powered wastewater treatment and desalination, offers a crucial opportunity to meet the demand for fresh water while providing new and essential markets for clean energy.

Figure 2. The future of opportunities. (source: Global Opportunity Report, 2018)

Health, food, water, and energy are four of the biggest markets featured in the four years of the Global Opportunity Report. They touch on several opportunities and therefore serve as an excellent illustration of how future markets will emerge in two key areas. First, at the intersection when specific markets are seeing new areas of overlap with technology changes. Second, at the edge of existing markets when markets intersect with one another.