The UN Global Compact CFO Taskforce, a group of Chief Financial Officers and C-suite Executives from some of the world’s largest companies across a broad range of industries, announced the launch of the first integrated, UN-backed principles for integrated SDG Finance and Investment.
The principles were launched in conjunction with the 75th session of the UN General Assembly, currently taking place in New York. The aim of the initiative is to guide companies in aligning their sustainability commitments with credible corporate finance strategies to create real-world impact on the Sustainable Development Goals (SDGs).
Sanda Ojiambo, CEO and Executive Director of the UN Global Compact, said:
“The Principles for SDG-aligned Corporate Finance enable the broader finance ecosystem to scale up financing and investments towards the SDGs to ensure that we leave no-one behind. This is the right and opportune thing to do as the long term success of business is inextricably linked to a sustainable future for all.”
The taskforce stated that in releasing the principles, it pinpointed four key areas that are relatively underserved but critical for SDG-aligned investments: SDG impact and measurement, integrated SDG strategies and investments, integrated corporate SDG Finance and integrated SDG communication and reporting. According to the taskforce, the goal is to work with the investment value chain, including investors, banks, development finance institutions, credit ratings agencies and sustainability assessment firms to create a broad, liquid and efficient market for SDG investments and capital flows.
Scott Mather, Chief Investment Officer, PIMCO U.S. Core Strategies, and Co-Chair of the CFO Taskforce, said:
“Understanding how issuers contribute to the SDGs is a fundamental part of PIMCO’s sustainable investment and engagement strategy. These Principles provide the first integrated, UN-backed framework for companies to incorporate the SDGs in their financial strategy and operations. We hope this will encourage even more issuers to embed sustainability at the core of their business and create new opportunities for SDG investment.”
Alberto De Paoli, CFO of Enel, and co-chair of the CFO Taskforce, said:
“CFOs play a leading role in establishing clear indications and setting best practices for making corporate finance and investments a real driver of social growth. As members of the CFO Taskforce, we are all committed to working at the service of a new stakeholder capitalism, creating sustainable value for people and the planet. The UNGC CFO Principles for Integrated SDG Investments and Finance represent a solid first step to guide companies in the adoption of credible finance strategies that fully integrate sustainability towards the achievement of SDGs.”