SDG 1: No Poverty

End poverty in all its forms everywhere

SDG 1 aims to eradicate extreme poverty for all people everywhere, currently measured as people living on less than $2.15 a day (2022 international poverty line). The goal encompasses multiple dimensions of poverty including lack of income, access to basic services, social protection, and resilience to shocks.

Global Context

As of 2020, approximately 700 million people lived in extreme poverty globally. The COVID-19 pandemic reversed decades of progress, pushing an additional 70 million people into extreme poverty in 2020 alone. Climate change, conflict, and economic instability continue to threaten poverty reduction efforts.

Business Contribution to SDG 1

Companies can advance poverty reduction through multiple pathways:

Core Business Operations

Living Wages — Pay wages sufficient to meet basic needs and provide discretionary income. The Global Living Wage Coalition provides benchmarks for calculating living wages by location.

Job Creation — Generate employment opportunities, particularly in underserved communities and for vulnerable populations including youth, women, and persons with disabilities.

Financial Inclusion — Provide access to financial services including savings, credit, insurance, and payment systems for low-income populations.

Affordable Products & Services — Design products and services accessible to base-of-the-pyramid consumers while maintaining quality and sustainability.

Supply Chain Management

Supplier Development — Support small and medium enterprises (SMEs) and informal sector businesses to improve productivity and access markets.

Fair Procurement Practices — Ensure fair payment terms, transparent contracting, and capacity building for suppliers in developing economies.

Community Investment

Skills Development — Provide training and education programs to enhance employability and entrepreneurship.

Infrastructure Development — Invest in community infrastructure including roads, electricity, water, and digital connectivity that enables economic activity.

Social Protection — Support social safety nets and insurance schemes that protect vulnerable populations from shocks.

Measurement and Reporting

Key Performance Indicators

Employment Metrics:

• Number of jobs created (direct and indirect)
• Percentage of employees earning living wage or above
• Employee demographics (gender, age, disability status)

Supply Chain Metrics:

• Number and value of contracts with SMEs and local suppliers
• Supplier capacity building programs and participants
• Payment terms and practices

Community Investment:

• Investment in community development programs (monetary value)
• Number of beneficiaries reached
• Skills training participants and employment outcomes

Reporting Frameworks

GRI Standards:

• GRI 201: Economic Performance (201-1 Direct economic value generated and distributed)
• GRI 202: Market Presence (202-1 Ratios of standard entry level wage by gender compared to local minimum wage)
• GRI 203: Indirect Economic Impacts (203-1 Infrastructure investments and services supported)
• GRI 204: Procurement Practices (204-1 Proportion of spending on local suppliers)

SASB Standards:

• Industry-specific metrics on workforce management and community relations

UN Global Compact:

• Communication on Progress (COP) reporting on poverty-related initiatives

Business Risks and Opportunities

Risks

Reputational Risk — Criticism for low wages, poor working conditions, or exploitation of vulnerable populations

Operational Risk — Poverty-related instability affecting supply chains and markets

Regulatory Risk — Increasing minimum wage requirements and labor standards

Opportunities

Market Expansion — Access to base-of-the-pyramid markets representing billions of potential consumers

Innovation — Develop frugal innovation and inclusive business models

Talent Attraction — Enhanced employer brand and ability to attract purpose-driven employees

License to Operate — Strengthened relationships with communities and governments

Primary Source Documents

From ESG Library

• ESG & GRI Reporting Made Simple — SDG mapping and disclosure guidance for poverty-related impacts
• Practical Guide to ESG Integration — Integrating SDG 1 into business strategy and operations

View all books →

Related Topics

• Living Wage
• Human Rights Due Diligence
• Community Investment
• GRI Standards

Part of ESG Hub | Curated by Ascent Partners Foundation