So far, institutional investors have essentially intent with UN initiatives by signing adult to a Principles for Responsible Investment, that are designed to incorporate environment, social, and governance considerations into investing. According to a UN, signatories to a PRI now manage $59 trillion, adult from $4 trillion 9 years ago. If institutions consider of them as tolerable investment goals as good as growth objectives, a SDGs paint a outrageous event to take that rendezvous one theatre further.
Financial institutions can adopt a series of measures to assistance accommodate a goals both subsequent year and in a years ahead. For example, they can prominence investment opportunities compared with a SDGs and how they describe to their existent portfolios and tolerable investing frameworks. If positioned attractively, this might assistance inflows into existent strategies. They can also lift recognition of a financing needs surrounding a goals and tailor solutions for clients who are meddlesome in assembly them. Third, they can encourage product growth in underserved areas that paint intensity sources for SDG financing – in particular, impact investing and tolerable bound income and private markets.
With a routine as long-term as a SDGs, there is always a enticement to procrastinate. Given that a SDGs will sojourn in place until 2030, institutions might see them as an bulletin object for tomorrow, not today. But with $2 trillion-$3 trillion compulsory a year over that timeframe, 2016 would be a good place to start.
Caroline Anstey is conduct of UBS Society, and Mark Haefele is tellurian arch investment officer during UBS Wealth Management
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