The 17 Sustainable Development Goals, which are the successors to the Millennium Development Goals, were initially defined for countries. However, they have been adopted by investors against the backdrop of growing awareness, which is a particularly strong driver, and have taken into account the importance of financing needs. The financial and non-financial private sector has rapidly committed to upholding these sustainable development goals in the economic, social and environmental domains by 2030.
There may be a substantial “greenwashing” risk attached to this magnificent marketing tool, with its 17 coloured icons. However, the SDGs ensure that sustainable and responsible investors question their added value and real impact with new dynamism. It is no longer sufficient for sustainable and responsible investment funds to exclude specific industries of companies. Instead, they will need to demonstrate that their investments are geared towards sustainable development solutions. In 2018, the proof of the pudding will be in the eating, by measuring the impact of sustainable investments.
Next week: Increasing regulation in terms of environmental, social and governance disclosure.