What are the UN's Sustainable Development Goals? A quick guide
Know your SDG 1 from your SDG 17. Sustainable Development Goals explained and why investors should care – a quick guide.
The United Nations’ Sustainable Development Goals are a “blueprint to achieve a better and more sustainable future for all”. The UN describes them as a “call for action” to “promote prosperity while protecting the planet”.
Read on for what the 17 goals are and what Schroders’ Global Head of Sustainable Investment has to say about them.
Where did the SDGs come from and what are they for?
They were adopted by all UN Member States in 2015 as part of the 2030 Agenda for Sustainable Development to address global challenges. They were developed from the Millennium Development Goals.
Andrew Howard explains: “It is important to recognise that the global challenges described by the SDGs have been building up over several decades. The SDGs are a framework to guide ideas and innovation towards tackling those challenges.”
What are they?
- No poverty
- Zero hunger
- Good health and well-being
- Quality education
- Gender equality
- Clean water and sanitation
- Affordable and clean energy
- Decent work and economic growth
- Industry, innovation and infrastructure
- Reduced inequalities
- Sustainable cities and communities
- Responsible consumption and production
- Climate action
- Life below water
- Life on land
- Peace, justice and strong institutions
- Partnerships for the goals
What are the targets and indicators?
Each of the SDGs has around 8-12 targets so there are more than 150 in total. They range from “enhancing the use of enabling technology... to promote the empowerment of all women and girls” to increasing “substantially the share of renewable energy in the global energy mix”.
These targets have specific indicators to measure progress, of which there are more than 200. For example, to measure progress against the target to reduce global maternal mortality, the global maternal mortality ratio is an indicator.
Are we on track to meet the goals by 2030?
The UN’s own progress report for 2021 has warned that “the global community is at a critical moment in its pursuit of the SDGs”.
It said the coronavirus pandemic was “threatening decades of development gains, further delaying the urgent transition to greener, more inclusive economies, and throwing progress on the SDGs even further off track”.
How are the UN SDGs relevant to investment?
It is often said that investors big and small have a part to play in meeting these global goals.
Andrew Howard, Schroders’ Global Head of Sustainable Investment, explains: “While originally intended for governments and policymakers, the SDGs have evolved into a universally recognised framework, being used by both the public and private sectors. Both play a key role in developing solutions.
“As investors, the SDGs help us understand where to deploy capital and how to ensure the capital we deploy is aligned.”
How else have investment firms developed their use of the UN SDGs?
Andrew Howard says: “The SDGs can also offer a way of understanding how investments align to an investor’s personal values. A wide array of solutions have appeared in the form of SDG-focused funds and measurement and reporting tools.
"However, it can be difficult to pick out which solutions offer new ways of thinking with meaningful outcomes versus products and tools that have simply been rebranded without much fundamental change.”
He adds: "In the face of this challenge, we are developing a proprietary framework that aims to fill this gap. It will sit alongside our suite of investment tools including SustainEx, our proprietary tool to measure impact."
So, in summary, investors can help progress the SDGs by investing in companies that are positively contributing to them?
Not only that. As owners of companies, investors have a voice – a unique opportunity to hold them to account and encourage them towards more sustainable business practices.
Andrew Howard explains: “If we are to drive positive change, investment alone is not enough. Engagement is a critical component of an investor’s success in achieving positive, meaningful outcomes for society.”
This document is issued by Schroder Investment Management Australia Limited (ABN 22 000 443 274, AFSL 226473) (Schroders). It is intended solely for wholesale clients (as defined under the Corporations Act 2001 (Cth)) and is not suitable for distribution to retail clients. This document does not contain and should not be taken as containing any financial product advice or financial product recommendations. This document does not take into consideration any recipient’s objectives, financial situation or needs. Before making any decision relating to a Schroders fund, you should obtain and read a copy of the product disclosure statement available at www.schroders.com.au or other relevant disclosure document for that fund and consider the appropriateness of the fund to your objectives, financial situation and needs. You should also refer to the target market determination for the fund at www.schroders.com.au. All investments carry risk, and the repayment of capital and performance in any of the funds named in this document are not guaranteed by Schroders or any company in the Schroders Group. The material contained in this document is not intended to provide, and should not be relied on for accounting, legal or tax advice. Schroders does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this document. To the maximum extent permitted by law, Schroders, every company in the Schroders plc group, and their respective directors, officers, employees, consultants and agents exclude all liability (however arising) for any direct or indirect loss or damage that may be suffered by the recipient or any other person in connection with this document. Opinions, estimates and projections contained in this document reflect the opinions of the authors as at the date of this document and are subject to change without notice. “Forward-looking” information, such as forecasts or projections, are not guarantees of any future performance and there is no assurance that any forecast or projection will be realised. Past performance is not a reliable indicator of future performance. All references to securities, sectors, regions and/or countries are made for illustrative purposes only and are not to be construed as recommendations to buy, sell or hold. Telephone calls and other electronic communications with Schroders representatives may be recorded.