Despite their promises to do so companies in Canada are failing to invest in communities that are at an economic disadvantage, a new University of Waterloo study out today shows.
The university researchers found that while an increasing number of companies over the past decade have committed to act in accordance with the United Nation’s Sustainable Development Goals (SDGs) investment by these companies in disadvantaged communities actually fell during this time.
“The companies studied in our research are accountable for roughly $1 billion in community investment every year,” said David Benjamin Billedeau, PhD candidate in the School of Environment, Enterprise and Development. “This gap between promise and practice is not just a missed opportunity, it’s a wake-up call. These companies have the potential to drive real change. Instead, we’re observing a trend of ‘SDG-washing,’ where public pledges are not translating into increased investments in Canadian communities.”
The study looked at the community investment record of the country’s 58 top private-sector companies and discovered that those pledging to direct efforts towards supporting the SDGs recored a ‘lower average of community investment relative to their net profits after tax’. While those not making promises about the SDGs were contributing more of their profits to struggling communities.
“Greenwashing isn’t just about emissions. We need to really check if companies are living up to their promises on sustainability and helping communities,” adds Billedeau. “Our study aims to show where Canada’s leading private sector companies are falling short and to push for real change.”
