The Sustainable Development Goals (SDGs) address 17 global challenges the world faces today and are an ambitious plan of action for people, planet and prosperity. They are universal, applying to all nations and people, seeking to tackle inequality and leave nobody behind. The goals include ending poverty and hunger, ensuring sustainable consumption and production and promoting peaceful and inclusive societies by 2030. The goals can only be achieved with the aid of the private sector working with governments, parliaments, the United Nations (UN) system and other international institutions, local authorities, civil society, the scientific and academic community – and all people.

The main aim of the SDG Industry Matrix is to convert the interest stimulated by the SDGs into strategic industry activities which grow in scale and impact. This could be through generating new innovative approaches, prompting companies to replicate successful activities in new markets, catalysing new collaborations and increasing participation in existing collaborations.

The SDG Industry Matrix aims to find “shared value” within the financial services sector, where the sector collectively creates market potential, societal demands and policy action to create a more sustainable and inclusive path to economic growth, prosperity and well-being. As an example, to address SDG 13, which is “Climate Action”, Citi has made a 10-year US$100 billion commitment to finance activities that reduce carbon emissions, help communities adapt to climate change and directly finance sustainable infrastructure such as green housing. Further, AXA has committed to divest “from companies most exposed to coal-related activities”, totalling €500 million. AXA has also committed to triple its green investment to over €3 billion by 2020.  The SDG Industry Matrix provides an opportunity for firms to create value for their business and society through providing ideas to businesses in each SDG.

The SDG Industry Matrix further highlights opportunities for financial services companies to create value for their business whilst creating a more sustainable and inclusive path to economic growth, prosperity and well-being, and considers opportunities to target specific SDGs. For example, to address SDG 1, which is “No Poverty”, there is the opportunity for the financial sector to innovate and develop new financial products, credit scoring methodologies, operation channels and distribution channels to advance financial inclusion. This could include banking for 2.5 billion adults currently without a bank account and micro insurance to increase social protection. For SDG 4, “Quality Education”, the matrix advises financial institutions to collaborate with development financial institutions and governments to raise and/or invest in innovative financing for education projects.

1. KPMG International and the UN Global Compact have developed six industry matrices which provide industry-specific practical examples and ideas for action for each Sustainable Development Goal. They profile opportunities which companies expect to create value for shareholders and for society. The six areas are: Financial Services, Food, Beverage and Consumer Goods, Healthcare & Life Sciences, Industrial Manufacturing, Transportation and Energy, Natural Resources & Chemicals.
2. The SDG Industry Matrix aims to inspire and inform greater private sector action to drive inclusive, sustainable prosperity. It assists each specific industry to recognise specific opportunities, providing industry specific ideas for action and practical examples for each relevant SDG.
3. The SDG Industry Matrix suggests new innovative approaches, helping companies to successfully achieve sustainable finance.
4. Through the lens of “shared value” the private sector can identify opportunities in addressing social and environmental challenges. As a financial services firm the opportunities for shared value will benefit the organisation as well as society and the environment.
5. Multi-stakeholder partnerships and collaborations will become increasingly important in realising shared value opportunities. Many solutions will include blended finance (e.g. combining a financial institution’s finance with third party concessional funds), innovative financing mechanisms such as development and climate bonds, and application of new technologies.
6. The financial services industry is a vital enabler for the real economy. It supports improved economic well-being which then increases the ability of families and governments to improve social outcomes.
7. The insurance industry has an opportunity to lead the way in placing sustainable development at the heart of risk management and thus sustainable development.
8. In addition to the UN Global Compact’s ten principles in the areas of human rights, labour, the environment and anti-corruption, there are a number of good practice principles and initiatives which align with the financial services industry’s contribution to sustainable development. These include the Equator Principles, Green Bond Principles and Sustainable Stock Exchanges Initiative. See page 12 for further initiatives.
9. The SDG Industry Matrix includes several examples of collaborations which advance sustainable development. In addition, some of the largest global multi-stakeholder collaborations for financial services include: Banking Environment Initiative, Investment Leaders Group, UNEP FI Priniciples for Sustainable Insurance Initiative, Climate Bonds Initiative and Global Impact Investing Network. See pages 13 to 15 for a comprehensive list.