The Sustainable Development Goals (SDGs) establish worldwide objectives for societies and all stakeholders, including investors, and are clearly rooted in the Universal Declaration of Human Rights. The UN Office of the High Commissioner for Human Rights has clearly delineated the intersection between the Sustainable Development Goals and human rights.

The application of the UNGPs in business and investment endeavours can significantly contribute to achieving the SDGs. By addressing the full range of human rights, corporations and investors could tackle gender-related issues linked to their business operations, which would help achieve up to eleven Sustainable Development Goals (SDGs). – Ensure workers receive a living wage, promoting the advancement of eleven SDGs. – Eliminate forced labour from the value chain, contributing to the progress of six SDGs.

The intersection of the SDGs and human rights does not diminish the inherent essence of human rights: the possible inability of corporations or investors to avert or alleviate harm to individuals cannot be compensated by specific efforts to advance one or more SDGs.

HOW TO DO IT:

Step 1. Identify Outcomes: Investors must recognise and comprehend the unexpected consequences of their investments and operational activities. This evaluation entails recognising both advantageous and detrimental real-world consequences associated with the activities, products, and services of investees. It can enhance efforts such as correlating current investments with the SDGs and assessing the magnitude of investments in activities expressly aligned with the SDGs.

Step 2. Establish policies and objectives: Investors must formulate policies and objectives, transitioning from merely recognising and comprehending unintended consequences to proactively influencing outcomes. Given the interconnections among many outcomes, such as climate change and water shortages, as well as food security and poverty, investors must adopt a holistic approach by evaluating all investments and Sustainable Development Goals (SDGs) when assessing their essential outcomes.

Step 3. Investors influence results: Investors should endeavour to influence outcomes in accordance with the policies and targets established in step 2 and provide reports on progress towards those objectives. This can be accomplished by investor activities, including investment choices, oversight of investees, and interaction with policymakers and significant stakeholders, as well as through disclosure and reporting mechanisms.

Step 4. The financial system influences collective outcomes: Bringing results in line with the SDGs at the financial system level happens when individual investors work together and team up with others in the financial system, like credit rating agencies, index providers, proxy advisors, banks, insurers, and multilateral financial institutions.

Step 5. Global stakeholders cooperate to get results aligned with the Sustainable Development Goals (SDGs): No singular group of actors can accomplish the Sustainable Development Goals independently. The banking industry, corporations, governments, universities, civil society, the media, individuals, and their communities must collaborate to ultimately attain the Sustainable Development Goals (SDGs). Essential components comprise initiatives to align investment supply and demand at scale, along with cooperation on instruments to contextualise outcome data within the global thresholds and timescales necessary for attaining the SDGs.

Given the urgency of achieving the SDGs, investors must collaborate with others to further develop the necessary instruments and incentives.