Driving sustainable development in line with the UN SDGs will create a more prosperous world, to live in today and to pass on tomorrow
Sustainable Development Goals
Building on the launch of our major report, Investing with SDG outcomes: A five-part framework, which provides a high-level framework for investors looking to shape real-world outcomes in line with the Sustainable Development Goals, we have started publishing a series of case studies exploring how institutional investors understand and shape these outcomes in their investments.
We also explored the role that infrastructure investors can play in meeting the SDGs, publishing two reports:
- Are national infrastructure plans SDG-aligned, and how can investors play their part?
- Bridging the gap: how infrastructure investors can contribute to SDG outcomes
Sustainability outcomes in the Reporting Framework
We introduced mandatory questions in the new Reporting Framework, focusing on the organisation-wide guidelines and processes that signatories have in place to identify and set policies on sustainability outcomes. These are aligned with the first two steps of our SDG outcomes framework (see below), while signatories can answer additional voluntary questions aligned with steps two to five, focusing on how they set and track progress against sustainability outcomes targets, use asset allocation or engagement to advance these outcomes, individually or in collaboration with other investors.
Five-part SDG outcomes framework for investors
Priority ESG issues
We undertook work on several ESG issues that are linked to the SDGs, including biodiversity (see below), human rights (see above), and issues linked to COVID-19 (see section on COVID-19).
Real-world outcomes’ role in our 2021–24 strategy
Increasingly, our signatories are recognising that the real-world sustainability outcomes they contribute to shaping through their investment activities will feed back into the financial risks they face. For this reason, building a bridge between financial risk, opportunities, and real-world outcomes is a key element of our 2021-24 strategy.
This year, we identified the priority ESG issues we will work on over the next three years, with an overarching focus on helping signatories understand how to integrate and measure outcomes, while remaining grounded in fiduciary duty and the broader role of investors in society. Among others, these include:
- Climate change mitigation
- Sustainable commodities
- Tax fairness
- Human rights
- Diversity, equity, and inclusion
- Decent work
We prioritised these issues based on their significance and scale, the scope for institutional investors to make a difference and the opportunity for the PRI to add value, including through partnerships with other organisations. See the PRI 2021-24 Strategy for more detail.