Progressing along with the United Nations Sustainable Development Goals (SDGs) has become one of the main objectives for the sustainable finance industry.
Measuring such progress has not been completely achieved at the corporate and retail investment levels yet. One of the parties which took a step in this path is the Investment Leaders Group – ILG, which was constituted from Cambridge Institute for Sustainability Leadership - CISL.
Investment Leaders Group consisting of pension fund managers, insurance companies and asset managers who want to improve the responsible investment efforts, published the 2019 report which consists of six parts that the investors can use while advancing towards SDGs. The group, which was started as a voluntary organization and supported by the Cambridge University academicians together with the Institute for Sustainability Leadership, aims to become an investment network creating economic, social and environmental benefits.
The booklet published provides an opportunity of measurable impact management for investors regarding their requests to reduce the negative environmental impacts that increase continuously, increase resource productivity and mitigate climate change risks. With the new approach brought for the investment world, it is aimed that the SDGs to become a measurement mechanism while measuring how development is achieved and carrying out performance assessments. The booklet also covers the Science Based Targets initiative. The initiative launched with the partnership of United Nations Global Compact (UNGC), Carbon Disclosure Project (CDP) and World Wildlife Fund (WWF) aims to create a standardized framework for the companies to manage their greenhouse gas emissions within a “science-based” framework. The science-based structure of the emission reduction goals to be adapted by companies are determined based on how much they are compatible with a maximum 2 degrees increase in the average temperature of the planet, in line with the Paris Agreement.
Many stakeholders, including investment consultants, shareholders, investment managers and individual investors esteem that meaningful social and environmental data measurements can transform the investment industry. It is indicated that all investments have an impact on daily life, however many impacts such as creating new job areas or use of natural resources have remained uncertain for investors. The framework allows the investors to surpass such situations where access to information is limited and understand how compatible their investments are with SDGs.