The annual SDG Investment Forum in Oslo, Norway, brought together chief financial officers (CFOs), sustainability experts, and investors from Europe to explore how corporate investments and finance can contribute to the achievement of the Sustainable Development Goals (SDGs). The private sector plays a crucial role in bridging the financing gap necessary to meet the SDGs by 2030. Currently, only a small share of private capital is currently aligned with the goals.
With more than $17 trillion invested annually in capital expenditures, companies, and CFOs hold significant influence in driving the sustainability transition of the global economy.
In 2016, the UN secretary general appointed SDG Advocates to promote universal sustainable development. The UN Global Compact and SDG Advocates have collaborated to help the UN achieve SDGs. Initially, letters were sent to various companies, asking them to abide by the five SDG policies, which pertained to assessing their impact, engaging with public and private entities, and investing in the public community.
During the event, Sanda Ojiambo, CEO and executive director of the UN Global Compact, urged the 18,000 participating companies of the UN Global Compact to elevate their ambitions by taking tangible actions. Some of those actions included: aligning their corporate investments with SDG policies and strategies, establishing targets, and tracking and reporting on SDG-aligned investments. Ojiambo emphasized the importance of establishing a corporate financing strategy linked to SDG investments and performance.
CFOs have already made $108 billion in SDG-aligned investments and have committed to investing $500 billion by 2025. Nearly 50% of all corporate financing represented by these CFOs is in the form of sustainable financing instruments. Additionally, the coalition continues to disseminate best practices for thematic SDG-aligned investments and raise awareness of the critical role of CFOs in driving business transitions.
Alberto De Paoli, CFO of Enel and co-chair of the CFO coalition for the SDGs, stressed that sustainability not only leads to better financial results and risk mitigation but also enables companies to seize opportunities arising from the energy transition.
Conversations from the UN Global Compact at the SDG Investment Forum facilitated ongoing dialogue to explore the significant role of corporate investments and finance in achieving the SDGs.
