The investment community, including large institutional investors, is increasingly adopting the UN Sustainable Development Goals (SDGs) as a framework for sustainable investing. According to a recent report, the SDGs present a $12 trillion investment opportunity. However, for the capital to flow, the world needs a common framework on how to manage, measure and report on progress towards the Agenda 2030.
In an effort to address this challenge, Sarona signed the Stockholm Declaration. Co-led by the UN Global Compact and GRI, and supported by the UNPRI, the initiative known as “Action Platform Reporting on the SDGs” represents a first-of-its-kind commitment by leading investors and government entities to work together on setting measurement and reporting standards for the SDGs.
The Declaration includes the following:
“… Achieving the SDGs will require an annual investment currently estimated to $5-7 trillion which urgently demands the mobilization of mainstream capital. Investors should see the 17 goals as 17 business opportunities, where investors can move beyond exclusion criteria to inclusion based investment strategies focused on investing with a positive impact on the SDGs.
The 17 SDGs provide an opportunity for responsible investors to establish how they incorporate issues such as climate change, working conditions and board diversity into their investment approach to minimize negative impacts and foster sustainable development.
The SDGs also provide investors with an insight on how government decision-making and company behaviour will shape the development of the global economy over the next 15 years. By setting policy makers’ priorities, the SDGs could be a key driver of global GDP growth and source of investment opportunities.
To achieve real impact on the ground, focused and coordinated effort and accomplishments are key. This however needs to be complemented by a set of well-defined and relevant reporting indicators linked to the SDGs to support investors and companies in achieving the Goals. Impact and real change should be measured and managed.”
To read the full Declaration and for the list of signatories: Stockholm Declaration.