The new era of sustainable development investing

THE contentious and escalating argument around ESG (environmental, social, and governance) investing presents a golden opportunity: to shift the focus away from the narrow and the technical – disclosures, fiduciary obligations, taxonomies, et cetera – towards a broader vision of what sustainable investing can and should be.

Our world faces multiple interlinked challenges that compound one another’s effects, including climate-induced emergencies, food and water scarcity, energy security, global health crises, and macroeconomic challenges. Some may argue that the wind has been taken out of the debate’s sails in recent months, but these issues are not theoretical. They are real, with real-world consequences, altering people’s daily lives and distorting our futures.

What can be done about it? In 2019, United Nations Secretary-General Antonio Guterres launched the Global Investors for Sustainable Development (GISD) Alliance, bringing together some of the largest institutions across the investment and financial value chain with a clear mandate: how to mobilise capital towards the realisation of the 17 Sustainable Development Goals (SDGs).