The SDG Investment Case
Who’s behind it? – UN Principles for Responsible Investment
How can it help? – In October 2017, the PRI published the SDG Investment Case in partnership with PwC. The report makes the case for why the investment community should adopt an active role in achieving real world impact through implementation of the SDGs. It outlines why there is an expectation that investors will contribute to the SDGs and – crucially – why investors should want to contribute to them:
- The SDGs represent the globally agreed world’s most pressing environmental, social and economic issues and as such serve as a list of the material ESG factors that should be considered as part of an investor’s fiduciary duty.
- Large institutional investors – which can be considered as universal owners – with their portfolios exposed to growing and widespread economic risks, can protect their long-term financial performance by encouraging sustainable economies and markets.
- Achieving the SDGs will be a fundamental driver of economic growth which, in the long term, will boost corporate revenues and earnings and, in turn, equities and other assets.
- A significant proportion of currently external costs such as environmental damage or social upheaval might at some point in the future be forced into companies’ accounts. The SDGs provide a clear risk framework for both companies and investors.
- Providing solutions to sustainability challenges offers attractive investment opportunities. Investors can implement strategies that target SDG themes and sectors, with opportunities available in most asset classes.