Early estimates show that we need approximately US$5-7 trillion of annual public and private global investments into sectors such as education, clean energy, agriculture, and health to achieve the Sustainable Development Goals (SDGs). Faced with a financing gap, it is imperative to take action now. Every participant in the financial industry has a role to ensure the wellbeing for the planet and future generations.

Institutional investors can:

• seek longer-term investments that support SDGs.
• incorporate environmental, social and governance (ESG) and SDG commitments into investment decisions.
• engage policymakers to promote SDG-aligned investment policies.
• reform corporate incentives to favour SDG-aligned investments.
• support the Sustainable Stock Exchanges initiative and regulators.
• work with real economy companies, banks and insurers to create new SDG-aligned financial solutions.
• apply the Principles for Positive Impact Finance framework for SDG financing.
• promote access to financial services for underserved sectors.
• develop buy-side investment research on private sector SDG activities, and support development of sell-side research.

Banks, insurance and exchanges can:

• show leadership by making SDG-aligned business strategies.
• develop new solutions and products that support SDGs.
• develop sell-side investment research on private sector SDG activities.
• collaborate to build market momentum to support SDG-aligned products.
• assess/manage environmental and social risks of projects financed.
• promote access to financial services for underserved sectors.
• align SDG financing with innovative financing mechanisms.
• engage with clients for business model innovation to overcome the financing gap.
• provide risk transfer and insurance services from micro to macro levels.
• comply with sustainability standards.
• support SDG financial products.
• offer training to people and organisations on specific SDG themes.

Governments and the United Nations (UN) can take action to help under four categories:

• Leadership: set global norms and guiding principles, convening stakeholders, and galvanising action.
• Mobilisation: raise finance and re-orient financial markets towards investments in SDGs.
• Channelling: promote and facilitate investment into SDG sectors.
• Impact: maximise sustainable development benefits while minimising risks.

Companies can:

• ensure no conflicts with SDGs, and work towards action.
• publish high-quality performance reports with SDGs and ESG considerations.
• promote long-term value creation, highlighting financials and SDG efforts.
• ensure industry associations are SDG-aligned.
• change corporate incentives to favour SDG-aligned investments.
• develop new SDG-aligned business models.
• engage with corporate pension fund providers about joining the PRI and SDG-aligned investments.
• account for all stakeholders’ interests.
• collaborate with companies to catalyse private investment flows towards SDGs.

Foundations can:

• incorporate SDGs into grant-making.
• report on the impact of grants and portfolio investments towards SDG achievements.
• apply a responsible long-term portfolio investment approach.
• help to coordinate investments and interventions surrounding issue areas and geographies.
• mobilise sector-wide commitments to catalyse philanthropic investments for SDGs.

Furthermore, there are many forums, events and initiatives that assist with scaling up private sector finance and investment in sustainable development such as the:

• ECOSOC Financing for Development Forum;
• World Investment Forum;
• PRI in Person;
• UN Private Sector Forum;
• High-Level Political Forum on Sustainable Development;
• UNEP FI Global Roundtable for Sustainable Finance;
• Insurance Industry and Cities Sustainable Development Summit; and
• Making Global Goals Local Business Series of Events.

1. Achievement of the SDGs are falling short of the US$5-7 trillion of estimated annual investment required to meet the goals by 2030.
2. All financial industry participants have a role to play in achieving the SDGs. It is through collaborative global acceptance, support and integration of SDG commitments in each individual investment decision and business operation that the SDGs can be achieved.
3. Institutional investors, banks, insurance organisations, stock exchanges, governments, the UN, foundations and all companies are given important guidance on how they can each help with SDG achievements through a list of the many potential actions that they can take.
4. The insurance industry is now an influential and vested player, evidenced by the first-ever summit of insurance industry CEOs and city mayors during the ICLEI World Congress in June 2018 to accelerate global and local action on urban resilience and sustainability.
5. Many forums, events and initiatives are included in this guide, all of which are global and local advocates of SDGs. This can be an important resource for the finance industry and advocates of sustainable finance.