What are the SDGs?
โSociety is demanding that companies, both public and private, serve a social purpose. To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to societyโ
Overview:
The Sustainable Development Goals (SDGs) are a collection of objectives adopted by the United Nations as part of its 2030 Agenda for Sustainable Development which aims to provide โa shared blueprint for peace and prosperity for people and the planetโ [1]. In 2015, all 193 UN Member States agreed to work towards 17 goals and 169 targets to combat poverty, climate change, disease and inequality, and achieve a better and more sustainable future for all.
Millions of businesses also now align their strategies and operations with the SDGs, which serve as a globally agreed framework for understanding ESG impact.
No poverty - End all forms of poverty everywhere
Zero hunger - End hunger, achieve food security and improved nutrition and promote sustainable agriculture
Good health and well-being - Ensure healthy lives and promote well-being for all at all ages
Quality education - Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
Gender equality - Achieve gender equality and empower all women and girls
Clean water and sanitation - Ensure availability and sustainable management of water and sanitation for all
Affordable and clean energy - Ensure access to affordable, reliable, sustainable and modern energy for all
Decent work and economic growth - Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
Industry, Innovation and Infrastructure - Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
Reduced Inequalities - Reduce inequality within and among countries
Sustainable cities and communities - Make cities and human settlements inclusive, safe, resilient and sustainable
Responsible consumption and production - Ensure sustainable consumption and production patterns
Climate action - Take urgent action to combat climate change and its impacts
Life below water - Conserve and sustainably use the oceans, seas and marine resources for sustainable development
Life on land - Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
Peace, justice and strong institutions - Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
Partnership for the goals - Strengthen the means of implementation and revitalize the global partnership for sustainable development
To learn more about the SDGs, please visit the UN website here.
Implications:
For investment managers and financial service companies, SDG alignment provides a framework for understanding, measuring and communicating how business practices and investments are contributing to economic development, helping them to manage risks, fulfil regulatory obligations and demonstrate leaderships in ESG and sustainability.
Given the scale and scope of the goals and targets, managers and companies are advised to focus on the goals closest to their core business and ambitions and set measurable performance goals to achieve them.
The SDGs can also be used to engage portfolio companies, partners, and other stakeholders in a companyโs wider network, enabling them to raise awareness and ambition, and grow their impact further afield.
To find out more about how to align your business with the SDGs and demonstrate the associated impact, please feel free to contact us.
Notes:
[1]โโ https://sdgs.un.org/goals
Further Reading
