The United Nations and investors have two things in common: They are answerable to their constituents, and they are hungry for more data. However, when it comes to sustainable development, the key stakeholders seem to be speaking different languages and monitoring different datasets — sustainable development goals (or SDGs) for the United Nations and environmental, social, and governance (ESG) metrics for companies and the investors who invest in them. In short, SDGs focus on broad-based societal well-being, while ESG integration primarily focuses on sustainability risks and opportunities that are financially material over the investment period. Building a bridge here is crucial, especially as the U.N. is preparing to host the Summit of the Future, starting Sept. 22. This summit will gather U.N. ambassadors from 193 countries to negotiate a finalized Pact for the Future, offering a pivotal opportunity to realign global priorities and leverage external expertise, including Morningstar Sustainalytics, which will actively participate in the summit itself.
“The Pact” will consist of action points, including bold shifts in focus for governments, urging them to assess national well-being "beyond GDP." Such a shift opens the door for ESG considerations to play a bigger role in public policy. U.N. Secretary General António Guterres has acknowledged that only 12% of the SDG targets are on track, while a whopping 50% are insufficient, and 30% stalled or regressing. The urgency for change is evident and, understandably, many global private actors have taken notice. While the U.N. has been increasingly inclusive for generations, it is now time ESG data and investor engagement help to propel the currently limping SDGs across the 2030 finish line.
Countries currently report their SDG progress to the U.N. triennially, utilizing extensive metrics overlapping those used by investors, such as those captured by the UNPRI’s Global Reporting Initiative (or GRI). Despite this overlap, investors remain more focused on ESG metrics. Preparing for the summit, a Morningstar Sustainalytics engagement survey of 41 institutional investors this month suggests that investors are far more focused on ESG metrics than SDGs, and 85% of responders stated there should be more of a role for ESG research and investment to play in the SDGs. One institutional investor underlined the external confusion this accompanies, noting that “asset managers are often judged on their fidelity to the SDGs, yet SDGs were developed to guide government action.”
Meanwhile, investors have a recognized role with companies as a key driver in the green transition and the sustainability agenda. Survey results show that the lion’s share of investors consider they have influence and leverage over the companies they invest in, highlighting the importance of bridging the gap between the SDGs and ESG.
Still, investors are keen to be more engaged with the U.N. and the public policy space, with 95% of respondents stating they are interested in bringing investors to future multilateral agendas, with 82% stating there should be more engagement between the U.N. and the investor community. They see value in aligning SDGs more closely with corporate objectives, such as making them sector- and region-specific with time-bound targets. This alignment could allow investment to have a more focused role in implementing SDGs, making use of ESG research to identify how targets can be achieved within certain sectors and regions.
The upcoming U.N. summit will not only address SDGs but also prioritize reforming the international financial architecture. Investors are eager to contribute, particularly regarding regulation. An overwhelming 90% of surveyed investors believe they should play a role in developing sustainable finance regulations and corporate sustainable disclosures. Their deep involvement in capital markets and understanding of ESG risks and opportunities position them as key stakeholders in creating effective regulatory frameworks.
Looking ahead, while the summit's primary focus remains on strengthening the SDGs, there is a subtle shift towards future planning, with the Pact for the Future looking like a blueprint for the future with an action point referring to discussions beginning in 2027 to look beyond 2030. Investors' feedback underscores the need for an SDG framework that better aligns with their ESG work. The successor to the SDGs could potentially provide a more suitable mapping to investor activities if designed with this alignment in mind.
Times have changed since the inception of the SDGs, and investors also want more Global South companies (in developing countries in Asia, Africa and Latin America) represented, and more engagement with the U.N. to inform their own decisions. The Summit of the Future is the first crucial gathering — followed by the high-level Financing for Development Conference in Spain June 2025 — to amplify investor voices and create space to integrate ESG data into the SDG framework. By incorporating the insights and expertise of investors into the construction and development of the SDGs, the global community can create a more cohesive, actionable and impactful strategy for sustainable development.
Matthew Gray is associate director of ESG risk and corporate sustainability at Morningstar Sustainalytics. He is based in Denmark. This content represents the views of the author. It was submitted and edited under Pensions & Investments guidelines but is not a product of P&I’s editorial team.
