Impact
investing themes
strongly resemble the
17 UN Global Goals or
Sustainable Development Goals (SDG's),
which are
the
successors to the Millennium
Goals.
The latter have contributed to decreasing extreme
poverty, hunger, diseases & child mortality
and gender
inequality.
Also to increased access
to clean water & primary education, protection of the environment
& biodiversity
and global
cooperation
to
achieve the goals.
We now have twice as many goals & themes: such as #SDG8:
decent work & economic growth. So
no growth with awful labor conditions and insufficient 'Living
Wage'.
#SDG9
is industry, innovation & infrastructure,
for without technological
progress
the goals are unachievable.
#SDG10:
Reduced Inequalities, next
to
#SDG5 Gender Equality,
is aimed at
inequality within countries (next to inequality between countries).
Policies should pay attention to the needs of disadvantaged
& marginalized populations.
In impact
investing jargon
underserved
communities
whether
they are
ill, old, handicapped, poorly educated
or people simply living in the wrong
place or time.
The
2e Global
Agenda has the crucial impact investing characteristic: private
investors are called upon to invest too.
Investors
have been asking for it for years and e.g. in largecaps,
multinationals
strategies
the
SDG's
are
becoming familiar drivers.
For both daily operations in Environment,
Social & Governance
management and being
proactive
& Futureproof
in planning for long term mega
trends
such as
non renawable resources & human capital.
Impact
investing & Sustainable Development Goals
In
this upcoming posts I will look at SDG opportunities in :
• (sub)sector(s)
contribution to the SDG's as
rated by Bob
best-in-class
& Materiality-of-Sustainability Eccles,
based on SASB
metrics (Sustainability Accounting Standards Board);
• Listed
companies
(stocks
& bonds) in SDG
sectors & themes
(core activities, their ESG ratings (Yahoo
Finance by Sustainalytics)
&
CSRHub
ratings on Community,
Employee, Environment & Governance & exclusion based on
controversy rating;
• Listed
investment
products
in
SDG
sectors & themes
:strategy, tactics & relevance;
• Listed
companies
rated on Research,
Development & Innovation
RDI
& investments,
Mergers
& Acquistion M&A
in
companies offering disruptive technological
solutions for
the SDG's:
ESG
RESEARCH BUREAU'S & the SDGs
I'm
hardly the first to look into the Global
Goals' investment
opportunities. Reputable raters &
indexbuilders developed methodologies, indexes for ETP's, Notes &
Funds. These
indices & investment products are 100%
transparant (with
periodic changes).
MSCI,
Risk & ESG rater, launched
an index & Blackrock
the iShares
Global Impact ETF in
2016. MSCI organized the 17 SDGs in: Basic
Needs, Natural Capital, Climate Change,
Empowerment
&
Governance.
The index holds 100 large
& midcaps
based on revenues (av. 75%) from SDG activitities.
ESG
researcher VigeoEIRIS
&
indexbuilder
Solactive
created the Solactive
Sustainable Development Goals World Index for the WorldBank with
50
largecaps (min.
20% revenues from SDG activitities) Borsa Italiana
ISIN: XS1365236196
Wheb
Investment
analysed it's (2009) Sustainability
Fund
portfolio holdings on SDG's themes: whebgroup.com
INTERESTING
LEADS,
but unfortunately not accessible
& affordable
for me or very appealing, e.g. for lack of direct
People Impact. So I will look for opportunities in the UN GlobalGoals
one-on-one.
For #SDG1
No Poverty
I will focus on micro-,
inclusive
& meso
finance. The
latter are SME
investments
& the employment & economic growth accelerator (so also
SDG8).
I'll
also look into #fintech,
finance innovation #SDG9.
Micro or 'inclusive finance' is
impact investings
largest sector in AuM. It does not have a dedicated
SDG,
but all SDGs need access to finance & impact investments.
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