SDG 1: No poverty

End poverty in all its forms

everywhere

With 193 governments coming together to agree a common framework to

tackle 17 major world issues by 2030, business engagement to achieve them
is seen as critical. So how do you understand the implications of the SDGs
and prioritise them? How do you quantify and minimise the potential risks,
and explore the opportunities?
This is an extract from PwC’s Navigating the SDGs: a business guide to
engaging with the UN Global Goals 2016 on SDG 1 No poverty. For more on
the other 16 SDGs, go to www.pwc.com/globalgoals

www.pwc.com/globalgoals
2 SDG 1: No poverty

What’s the global challenge? • The poor are particularly vulnerable to natural disasters,
armed conflict, epidemics, economic shocks, food insecurity
• The world succeeded in cutting the 1990 poverty rate in half and climate change. Such stresses often push those who have
by 2010, achieving the first Millennium Development Goal managed to get themselves out, back into poverty.
target five years ahead of schedule. Nevertheless, the number of
people living in poverty remains unacceptably high: in 2012, • The number of people affected globally by disasters has been
896 million people lived on less than $1.90 a day.1 increasing by an estimated 50,000 to 60,000 per decade since
the early 1970s, with 250 million affected per year over the last
• Poverty rates have declined in all regions, but the rate of decade. Over 99% of deaths already attributable to climate-
decline has been uneven. East Asia achieved a dramatic fall in related changes occur in developing countries, with children
extreme poverty from 80% in 1981 to 7.2% in 2012 and South making up over 80% of those deaths.4
Asia saw a fall from 58% to 18.7% over the same period; but
poverty in Sub-Saharan Africa still stood at 42.6% in 2012.2

• Poverty is not only an issue for the developing world and the
principle of the SDGs, of leaving no-one behind, also applies
to rich countries. Across the OECD countries, the average
poverty rate (which is equal to the percentage of people
whose income falls below the poverty line – defined as half the
median household income) is 11.5%. This gives a measure of
how widespread poverty is, defined by the respective national
standard. The US ranks 30th out of the 34 OECD countries,
with a poverty rate of 17.4%.3

Why does it matter for business? In recent years, an increasing number of companies are
And what can business do? exploring inclusive business opportunities that bring benefits
to their businesses as well as to the poor. ‘Inclusive business
Poverty is both a risk and an opportunity for business models’ are commercially viable and benefit businesses
through new markets, higher revenue, innovation and
 Businesses that pay their staff wages that are below a living strengthened supply and distribution chains. And they
wage are at risk of reputational damage. Often it is staff serve the poor by providing them with access to products
employed indirectly via contractors who get the lowest pay. and services as consumers, or by including them in the
Increasingly, consumers expect companies to meet basic, value chain as employees, suppliers or distributors, and
minimum standards on pay, including for staff hired through empowering them through skills development and
contractors, and some are prepared to vote with their earnings.6 Often these business models incorporate an
feet if they become aware of companies that do not. The element of microfinance or microcredit as a key enabler for
pervasiveness of social media makes the exposure of issues the poor to participate.
more likely and the ensuing reputation damage potentially What approaches are you using to support the poor to access
more devastating. On the upside, there is also evidence that your products or services? Would an inclusive business
higher wages can lead to increased productivity.5 model help your company access new markets in developing
Do you pay all your staff a fair or living wage in all countries countries? Have you considered how to include people from
of operation? Do you require the same of contractors? Have poorer communities in your supply chain or distribution
you identified and addressed any potential risks relating to channels and what business and social benefit this could
low pay in your operations? Do you track pay rates against deliver? What partnerships might help you do this?
productivity?

Businesses are increasingly also considering fair pay in the You could also think about:
context of their supply chains, both to manage potential
reputational risk and as a positive lever for lifting people Using community investment to help meet the needs of the
out of poverty. poor, shaping your programmes so that they can be sustained
Do you include a living wage approach to fair compensation when your support comes to an end and measuring the social
in your supply chain policy? Does this apply across the whole return on investment to help you target your efforts for
of your supply base? Have you assessed the reputational risk of maximum impact.
not having such an approach?
Impact investment7, i.e. investing corporate funds into
projects that align with your company’s strategic objectives,
deliver benefits to the poor, and generate a financial return
or, as a minimum, a return of capital.
3 SDG 1: No poverty

Key links to other SDGs:

Goal 2 – Zero hunger: even though we are experiencing tighter world food markets, there is still
enough food available. Many people are just too poor to afford it. Broad-based income growth is
essential to reduce global hunger in a sustainable way.8

Goal 3 – Good health and well-being: poverty increases the chances of suffering from poor health
by limiting, for example, the ability to access health services or treatments. Poor health can also stop
people and their carers accessing work or education, trapping them in poverty.

Goal 5 – Gender equality: women with equal rights are better educated, healthier, and have greater
access to land, jobs and financial resources. Their increased earning power in turn raises household
incomes. And evidence shows that where women have greater involvement in household decision-
making, children go on to have better prospects and higher well-being, reducing poverty in future
generations.9

Goal 8 – Decent work and economic growth: job creation and improving employment for all helps
address one of the key causes of global poverty – the lack of work. For many companies, their biggest
impact on poverty will be through creating decent work and economic growth.10

Goal 13 – Climate action: the poor are particularly vulnerable to climate change – building the
resilience of communities to climate related hazards and natural disasters contributes to the
achievement of target SDG 13.1 which is focused on resilience and adaptation at the country level.

Targets
in f cus
This SDG has seven targets,
The lie of the land – exploring the distance to cover to achieve
the first of which is “By
2030, eradicate extreme Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable,
poverty for all people have equal rights to economic resources, as well as access to basic services, ownership and
everywhere, currently control over land and other forms of property, inheritance, natural resources, appropriate new
measured as people living technology and financial services, including microfinance
on less than $1.25 a day”.
Target 1.4 is shown in
the heat map. By 2030,
ensure that all men and
women, in particular the
poor and the vulnerable,
have equal rights to
economic resources, as
well as access to basic
services, ownership and
control over land and
other forms of property,
inheritance, natural
No data
resources, appropriate new
technology and financial Good performance
services, including
microfinance. For details
on the remaining targets,
please see ‘Global Goals
and targets’ on page 5.
Poor performance
4 SDG 1: No poverty
Case Study

Company: Danone

Sector: Food Production

Region/country of impact:
Bangladesh

Aligns to: SDG 1 and SDG 17

Innovative partnership to address malnutrition and poverty

Global Challenge: Bangladesh is one of the world’s poorest countries, 80% of its population live
on two dollars a day and have no access to basic goods or services. One in two children suffer from
malnutrition.

Business Response: Danone’s mission, since it began has been “bringing health through food to as
many people as possible”. This vision was truly tested when Franck Riboud, CEO of Groupe Danone,
met Muhammad Yunus, founder of Grameen Bank in 2005. This meeting led to the creation of
Grameen Danone Foods Ltd (GDFL), the aim of which was to set up a small yoghurt plant in Bogra,
Bangladesh, to promote local development and bring health to the community. GDFL was set up as
a partnership and both parties contributed initial capital investment. GDFL developed a yoghurt
which is enriched with zinc, iron, iodine, vitamin A, and accounts for 30% of a child’s recommended
daily nutrients; its brand name is “Shokti Doi” which means “strength yoghurt” in Bengali; and it is
being sold at an affordable price to the local community. The milk for the production comes from
local micro-farmers; and the yoghurts are distributed by a network of Rural Sales Women, commonly
known as Jita. The business has a status of “social business enterprise”, where any potential profits
are spent on welfare of the local people and community development.

Benefits: The most important benefit is that the new yoghurts became a good supplement to
children’s diet and that it improved their overall health. Other benefits to the local people have
included: employment for women distributing yoghurts; employment opportunities with fair wages
and development of new skills for the plant workers; and for farmers – having a market for their milk.

This project offered Danone an opportunity to learn how to develop a low-cost nutritious product
and how to sell to the poor, which they can now replicate in other parts of the world. They have also
learned a new way of food fortification, which the company is now applying in their other brands e.g.
Densia and Activia (which are also sold in Europe). In terms of new market entry strategy, starting up
with a smaller scale operation in a new territory, proved to be easier and also less risky.

Source: Danone Communities

http://www.danonecommunities.com/en/node/567
http://www.fastcompany.com/1734931/corporate-social-responsibility-how-you-can-profit-and-kick-poverty-out
http://content.time.com/time/magazine/article/0,9171,2010077,00.html
http://www.danonecommunities.com/en/project/jita
5 SDG 1: No poverty

Global Goals and targets

Please note ‘Targets’ are referenced as n.1 n.2 n.3 etc. ‘The means of implementing the targets’ are referenced as n.a n.b n.c etc.

Goal 1. End poverty in all its forms everywhere

1.1 By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less
than $1.25 a day

1.2 By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in
all its dimensions according to national definitions

1.3 Implement nationally appropriate social protection systems and measures for all, including floors, and by
2030 achieve substantial coverage of the poor and the vulnerable

1.4 By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to
economic resources, as well as access to basic services, ownership and control over land and other forms
of property, inheritance, natural resources, appropriate new technology and financial services, including
microfinance

1.5 By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and
vulnerability to climate-related extreme events and other economic, social and environmental shocks and
disasters

1.a Ensure significant mobilization of resources from a variety of sources, including through enhanced
development cooperation, in order to provide adequate and predictable means for developing countries,
in particular least developed countries, to implement programmes and policies to end poverty in all its
dimensions

1.b Create sound policy frameworks at the national, regional and international levels, based on pro-poor and
gender-sensitive development strategies, to support accelerated investment in poverty eradication actions

Sources
1 World Bank, Poverty: Overview webpage http://www.worldbank.org/en/topic/ 6 UNDP, Creating Value for All: Strategies for Doing Business with the Poor, 2008
poverty/overview http://bit.ly/1WnRXZA
2 World Bank, Poverty: Overview webpage http://www.worldbank.org/en/topic/ 7 Global Impact Investing Network, Impact investment webpage https://thegiin.
poverty/overview org/impact-investing
3 Kroll, Sustainable Development Goals: Are the rich countries ready? 2015 8 OECD, Solving the food crisis, 2013
http://bit.ly/1K4ACNc http://www.oecd.org/agriculture/solving-the-food-crisis.htm
4 Webster, Mackinnon et al., The Humanitarian Costs of Climate Change, 2008 9 UNDP, UNDP - Gender and Poverty Reduction webpage
http://fic.tufts.edu/assets/humanitarian-cost-of-climate-change-2008.pdf http://bit.ly/1xRcquk
UNICEF, Strengthening Resilience through Disaster Risk Reduction, 2014 http:// 10 PwC, Make it your business: Engaging with the Sustainable Development Goals,
www.unicef.org/post2015/files/Disaster_2pager_FINAL_web.pdf 2015 https://www.pwc.com/gx/en/sustainability/SDG/SDG%20Research_
5 Wolfers, J., and Zilinsky, J., Economists: Pay workers a living wage to increase FINAL.pdf
productivity, 2015 http://www.sott.net/article/291554-Economists-Pay-
workers-a-living-wage-to-increase-productivity
6 SDG 1: No poverty

How well are countries performing against the indicators that sit behind the
SDG goals and targets?
SDG 1 Indicator Profile: Poverty headcount ratio at $1.90 a day
(NB. this table is from the SDG Index & Dashboards - Global Report)

Poverty headcount ratio

Poverty
at $1.90 headcount
a day (%) ratio
at $1.90 a day (%)

Country Value/Rating Country Value/Rating

Argentina
Country 0* ●
Value/Rating Spain
Country 0* ●
Value/Rating
Australia
Argentina 0*
0* ● ● Sweden
Spain 0*
0* ● ●
Austria
Australia 0*
0* ● ● Switzerland
Sweden 0*
0* ● ●
Azerbaijan
Austria 0 ●
0* ● Trinidad
Switzerland 0*
0* ● ●
Belarus
Azerbaijan 0
0 ● ● and Tobago
Trinidad 0* ●
Belgium
Belarus 0*
0 ● ● Ukraine
and Tobago 0 ●
Canada
Belgium 0*
0* ● ● UAE
Ukraine 0*
0 ● ●
Chile
Canada 0*
0* ● ● UK
UAE 0*
0* ● ●
Croatia
Chile 0*
0* ● ● USA
UK 0*
0* ● ●
Cyprus
Croatia 0*
0* ● ● Uruguay
USA 0*
0* ● ●
Czech
Cyprus 0*
0* ● ● Venezuela
Uruguay 0*
0* ● ●
Republic Bosnia and 0.1 Country Value/Rating Country Value/Rating
Czech 0* ● Venezuela 0* ● ●
Denmark 0* ● Herzegovina Colombia
Country 6.1 ●
Value/Rating Bangladesh
Country 43.7 ●
Value/Rating
Republic Bosnia and 0.1 ●
Estonia 0* Cambodia 6.2
6.1 ● Gambia 45.3 ●
Denmark 0* ● ● Iran
Herzegovina 0.1 ● Colombia ● Bangladesh 43.7 ●
Finland 0* Bolivia 6.2 ●
7.7 Tanzania 46.6
45.3 ●
Estonia 0* ● ● Jordan
Iran 0.1
0.1 ● ● Cambodia ● Gambia ●
France 0* Gabon 8 ● Mali 49.3 ●
Finland 0* ● ● Moldova
Jordan 0.1
0.1 ● ● Bolivia 7.7 ● Tanzania 46.6 ●
Germany 0* Pakistan 8.3
8 ● Niger 50.3
49.3 ●
France 0* ● ● Serbia
Moldova 0.1
0.1 ● ● Gabon ● Mali ●
Greece 0* Nicaragua 10.8
8.3 ● Sierra
Niger Leone 52.3 ●
Germany 0* ● ● Thailand
Serbia 0.1
0.1 ● ● Pakistan ● 50.3 ●
Hungary 0* Mauritania 10.9
10.8 ● Benin 53.1 ●
Greece 0* ● ● Malaysia
Thailand 0.3
0.1 ● ● Nicaragua ● Sierra Leone 52.3 ●
Iceland 0* China 11.2 ● Nigeria 53.5
53.1 ●
Hungary 0* ● ● Turkey
Malaysia 0.3
0.3 ● ● Mauritania 10.9 ● Benin ●
Ireland 0* Georgia 11.5 ● Haiti 53.9
53.5 ●
Iceland 0* ● ● Mongolia
Turkey 0.4
0.3 ● ● China 11.2 ● Nigeria ●
Israel 0* Guatemala 11.5
11.5 ● Togo 54.2 ●
Ireland 0* ● ● Mauritius
Mongolia 0.5 ●
0.4 ● Georgia ● Haiti 53.9 ●
Italy 0* Philippines 13.1
11.5 ● Burkina 55.3 ●
Israel 0* ● ● Albania
Mauritius 1.1 ●
0.5 ● Guatemala ● Togo 54.2 ●
Japan 0* Nepal 14.9
13.1 ● Faso
Italy 0* ● ● Macedonia
Albania 1.3
1.1 ●● Philippines ● Burkina 55.3 ●
Kazakhstan 0 ● Costa Rica 1.7 Sudan 14.9
14.9 ● Lesotho 59.7 ●
Japan 0* ● Macedonia 1.3 ● ● Nepal ● Faso
Korea, Rep. 0* Indonesia 15.9 ● Rwanda 60.3
59.7 ●
Kazakhstan 0 ● ● Jamaica
Costa Rica 1.7
1.7 ● ● Sudan 14.9 ● Lesotho ●
Kuwait 0* South Africa 16.6
15.9 ● Zambia 60.3 ●
64.4
Korea, Rep. 0* ● ● Montenegro
Jamaica 1.7
1.7 ● ● Indonesia ● Rwanda ●
Latvia 0* Cabo Verde 17.6 ● CAR 66.3
64.4 ●
Kuwait 0* ● ● Sri Lanka
Montenegro 1.7
1.7 ● ● South Africa 16.6 ● Zambia ●
Lithuania 0* Botswana 17.6 ●
18.2 Liberia 68.6
66.3 ●
Latvia 0* ● ● Tunisia
Sri Lanka 1.72 ●● Cabo Verde ● CAR ●
Luxemb. 0* Honduras 18.9
18.2 ● Mozamb. 68.7 ●
Lithuania 0* ● ● Bulgaria
Tunisia 22 ●
● Botswana ● Liberia 68.6 ●
Malta 0* India 21.3 ● Malawi 70.9
68.7 ●
Luxemb. 0* ● ● Bhutan
Bulgaria 2.22 ●● Honduras 18.9 ● Mozamb. ●
Netherlands 0* Namibia 22.6
21.3 ● Congo, Dem. 70.9 ●
77.2
Malta 0* ● ● Paraguay
Bhutan 2.2
2.2 ● ● India ● Malawi ●
New 0* Ghana 25.1 ● Rep.
Netherlands 0* ● ● Dominican
Paraguay 2.3 ●
2.2 ● Namibia 22.6 ● Congo, Dem. 77.2 ●
Zealand Republic Congo,
Ghana Rep. 28.7
25.1 ●● Burundi
Rep. 77.7 ●
New 0* ● Dominican 2.3 ●
Norway 0* ● Armenia 2.4 ● Cote d'Ivoire
Congo, Rep. 29 ●
28.7 ● Madagascar
Burundi 81.8 ●
77.7 ●
Zealand Republic
Oman 0* Cameroon 29.3
29 ● Afghanistan n/a ●
Norway 0* ● ● Mexico
Armenia 2.7 ●
2.4 ● Cote d'Ivoire ● Madagascar 81.8 ●
Poland 0* Lao PDR 30 ● Algeria n/a
n/a ●
Oman 0* ● ● Kyrgyzstan
Mexico 2.9
2.7 ● ● Cameroon 29.3 ● Afghanistan ●
Portugal 0* Angola 30.1
30 ● Egypt n/a ●
Poland 0* ● ● Panama
Kyrgyzstan 2.9
2.9 ● ● Lao PDR ● Algeria n/a ●
Qatar 0* Uganda 33.2 ● Guyana n/a ●
Portugal 0* ● ● Morocco
Panama 3.1 ●
2.9 ● Angola 30.1 ● Egypt n/a ●
Romania 0 ● Vietnam 3.2 Ethiopia 33.5 ● Iraq n/a ●
Qatar 0* ● Morocco 3.1 ● ● Uganda 33.2 ● Guyana n/a ●
Russia 0* Kenya 33.6
33.5 ● Lebanon n/a ●
Romania 0 ● ● El Salvador
Vietnam 3.3 ●
3.2 ● Ethiopia ● Iraq n/a ●
Saudi Guinea 35.3 ● Myanmar n/a ●
RussiaArabia 0*
0* ● ● Peru
El Salvador 3.7
3.3 ● ● Kenya 33.6 ● Lebanon n/a ●
Singapore 0* Senegal 38 ● Suriname n/a ●
Saudi Arabia 0* ● ● Ecuador
Peru 4.4
3.7 ● ● Guinea 35.3 ● Myanmar n/a ●
Slovakia 0* Chad 38.4
38 ● Yemen n/a ●
Singapore 0* ● ● Tajikistan
Ecuador 4.7 ●
4.4 ● Senegal ● Suriname n/a ●
Slovenia 0* Swaziland 42 ● Zimbabwe n/a ●
Slovakia 0* ● ● Brazil
Tajikistan 4.9
4.7 ● ● Chad 38.4 ● Yemen n/a ●
Slovenia 0* ● Brazil 4.9 ● Swaziland 42 ● Zimbabwe n/a ●

Source : World Bank (2016). Years : 2009-2013. Detailed metadata and quantitative thresholds used for each indicator are
available
Source onlineBank
: World at www.sdgindex.org. Data refer
(2016). Years : 2009-2013. to the most
Detailed recent
metadata andyear available during
quantitative the period
thresholds specified.
used for each indicator are
*available
Assumed to be 0% (see Annex 1 for details)
online at www.sdgindex.org. Data refer to the most recent year available during the period specified.
* Assumed to be 0% (see Annex 1 for details)
Source: Sachs, J., Schmidt-Traub, G., Kroll, C., Durand-Delacre, D. and Teksoz, K. (2016): An SDG Index and Dashboards – Global Report. New York: Bertelsmann Stiftung and Sustainable Development Solutions Network (SDSN).
All indicators are based on published data. Each data point is coloured as “green”, “yellow” or “red”, indicating whether the country is close or at SDG achievement (green), is in a “caution lane” (yellow), or is seriously far from
achievement as of 2015 (red), on that indicator. Thresholds are based on the authors’ analysis and expert assessments. For more detail, see www.sdgindex.org
pwc.com/globalgoals
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