SDGs are the framework for holistic sustainable investing
Episode Description = The 17 Sustainable Development Goals (SDGs) lie at the heart of the 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, and are vitally important to building a better world for all humanity. It is clear that everyone needs to play their part in achieving these 17 goals – including the investment community which has a huge opportunity to influence businesses, by first directing capital to the businesses that are advancing the goals and also by the power of engagement by educating business industry best practice to achieve these goals by 2030. Using an SDG framework, portfolio risk is reduced whist having a positive SDG impact. By using an SDG screen, a portfolio’s downside risks are reduced as it prevents investment in companies with challenged business models in a world seeking a more sustainable future. Furthermore, the portfolio creates positive SDG impact by investing in companies that provide products and solutions that contribute towards achieving the 17 SDGs and excludes companies that have a negative impact. This is the Decade of Action for portfolios. - Erik Keller, Robeco on Portfolio Construction Forum