US SIF Foundation Releases Report on Investing to Advance the UN Sustainable Development Goals
The report examines why sustainable investors in the United States are interested in the Sustainable Development Goals (SDGs) and the challenges in furthering the SDGs. The report also assesses whether the SDGs have led to a change in investment strategies, new investment products or new investment flows.
The US SIF Foundation recently released “Investing to Achieve the UN Sustainable Development Goals: A Report for the US Investor Community.” The report examines why sustainable investors in the United States are interested in the Sustainable Development Goals (SDGs) and the challenges in furthering the SDGs. The report also assesses whether the SDGs have led to a change in investment strategies, new investment products or new investment flows.
The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, calls on governments, civil society, business leaders and investors to take action to help realize 17 sustainability and social justice goals. The economic arguments for implementing the SDGs are compelling. Ending poverty, reducing income inequality and advancing the socioeconomic status of women — as the Goals emphasize — would spur economic growth and also provide opportunities for many business enterprises to expand their customer base.
To prepare the paper, the US SIF Foundation drew on information from UN public reports and data surrounding the issuance of and investment in SDG bonds, climate bonds and SDG-themed equity funds. Staff also interviewed representatives of a select group of investment management firms and institutional asset owners with a long-standing commitment to sustainable investment.
The report is divided into the following sections:
- The history of the Sustainable Development Goals
- The case for investing in the SDGs
- Encouraging private sector investment
- The rise of green, SDG, and sustainable bonds
- The SDGs in the equity markets
- The response of US sustainable investors
“Although no official database tracks private sector investments in the SDGs or the collective impact of these investments, numerous investment products have been launched or issued in recent years with sustainable development themes,” said Meg Voorhes, Director of Research at the US SIF Foundation and editor of the report. “We encourage managers or issuers of investment products that purport to support one or more of the SDGs to measure and report the impact of their products and strategies.”
About US SIF and the US SIF Foundation
US SIF: The Forum for Sustainable and Responsible Investment is the leading voice advancing sustainable and impact investing across all asset classes. Its mission is to rapidly shift investment practices toward sustainability, focusing on long-term investment and the generation of positive social and environmental impacts. US SIF members include investment management and advisory firms, mutual fund companies, asset owners, research firms, financial planners and advisors, broker-dealers, community investing organizations and nonprofit associations.
US SIF is supported in its work by the US SIF Foundation, a 501(C)(3) organization that undertakes educational and research activities to advance the mission of US SIF. The US SIF Foundation will publish its biennial Report on US Sustainable and Impact Investing Trends in November. The Foundation also offers training on the Fundamentals of Sustainable and Impact Investment and in partnership with the College for Financial Planning, offers the only sustainable investment designation in the United States, the Chartered SRI Counselor™ (CSRIC™). This graduate-level program provides financial advisors and investment professionals with the history, definitions, trends, portfolio construction principles, fiduciary responsibilities and best practices of sustainable investment.