• Thu. May 30th, 2024

Using scientific principles to create a strategy for investing in sector-level Sustainable Development Goals (SDGs)


Mar 26, 2024

Investors have long aimed to align their investments with the Sustainable Development Goals (SDGs). Evaluating how corporations impact the SDGs is challenging, with many current efforts lacking depth and transparency. In response, the authors propose an evidence-based review method for assessing sector-level impacts on individual SDGs. They assign scores using a traffic-light system, analyzing the impacts of 81 economic sectors on SDGs 1-16.

The review reveals that most economic sectors have a negative impact on environmental SDGs, with primary sector activities impacting the highest number of SDGs. Using the agricultural sector as a case study, the authors use Causal Loop methodology to demonstrate the spillover effects resulting from interactions between SDGs. Their research highlights the importance of understanding ‘impact shadows’, the interconnectedness of SDGs, and the hierarchical nature of the goals for sustainable investment strategies.

Overall, the study emphasizes the need for investors to consider the broader effects of their investments on the SDGs. By taking into account how different sectors influence multiple goals, investors can make more informed and responsible decisions that contribute to sustainable development objectives.

By editor

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