PRI publishes 5-point plan for meeting sustainability goals

Investors can play a bigger role in achieving the goals of United Nations' sustainable development goals, according to a new framework of actions by the Principles for Responsible Investment.

The PRI published Monday a report outlining how investors can shape both positive and negative outcomes associated with the SDGs — a set of 17 overarching goals for real-world outcomes related to water, health, poverty, gender equality and other issues — through investment decisions, stewardship and engagement with key stakeholders.

The coronavirus pandemic has increased urgency to deliver on the SDGs, "with several governments recognizing that the SDGs can act as a guide to the global response.

The urgency to deliver on the SDGs has only been increased by the COVID-19 pandemic, the PRI said, citing a commentary co-authored by Italian Prime Minister Guiseppe Conte; French President Emmanuel Macron; German Chancellor Angela Merkel; European Council President Charles Michel; Norwegian Prime Minister Erna Solberg; Canadian Prime Minister Justin Trudeau; and European Commission President Ursula von der Leyen, dated May 3.

"Guided by the (SDGs,) we can redesign the power of community, society and global collaboration, to make sure that nobody is left behind," the commentary said.

The PRI's report outlines a five-part framework. The first part is to identify outcomes, understanding and finding the unintended outcomes of an investor's own investments and operations.

The second part is to set policies and targets, "taking intentional steps to shape outcomes." Part three outlines how investors can report on progress against those objectives, and part four considers how the financial system can shape collective outcomes. The final part is about collaboration between the finance sector, businesses, governments, academia, civil society, the media, individuals and communities to achieve outcomes that are in line with the goals.

"Even before the incredible market shocks precipitated by the COVID-19 pandemic, the investment world had been committing to actionable steps to achieve the sustainable development goals," Fiona Reynolds, CEO at the PRI, said in a statement accompanying the report."With the release of this report, the PRI will continue to support its signatories to create mutually beneficial outcomes for their investors and key stakeholders and marks a step forward in moving investors towards greater accountability to the U.N. sustainable development goals."

The PRI will officially update its reporting framework in January. Signatories represent about $100 trillion in assets.