Force for Good reveals $ 100,000 billion funding gap for sustainable development ahead of UN General Assembly debate
LONDON –News Direct– Force for Good
LONDON, September 17, 2021 / 3BL Media / – The United Nations Sustainable Development Goals (SDGs) face a funding gap that has reached up to US $ 100,000 billion as a result of COVID-19 and other pressing global challenges, according to a new report from Force for Good in collaboration with the UN and other organizations.
The SDGs are key targets adopted by all UN member states and cover all aspects of sustainability, including environment, education, equality, health and governance. The Capital as a Force for Good report shows that additional annual funding worth about a tenth of global economic output will be needed each year to achieve the SDGs by 2030.
Within the financial sector, major institutions have significantly increased their funding, committing $ 9.5 trillion through 2030 and deploying a record $ 2.1 trillion in 2020. $ 88 trillion in assets under management or held are now committed to net zero, while 20% of total assets or US $ 33 trillion now actively integrate ESG into investment decision making.
However, the current financing of the SDGs by these financial institutions highlights certain imbalances that need to be corrected.
Forty-four percent of total current spending is on climate change, which is roughly twenty percent of the funding needs for all SDGs
Thirty-two percent focus on human, economic and social SDGs, which account for almost half of funding needs
Most of the capital is concentrated in advanced economies with the aim of solving pressing local problems, which means that developing countries still have the biggest financial deficits.
Within the financial sector, a greater commitment to sustainability has also been associated with better returns for shareholders, with more advanced institutions significantly outperforming the industry’s average return over the past five years. This indicates a leadership group that recognizes that innovating to do good makes them more relevant and resilient and may deliver superior returns for shareholders in the future. However, all institutions will need to significantly step up their commitments if the targets are to be met, according to the report.
The full report, based on in-depth analysis and engagement with the world’s leading financial institutions, has been posted on www.forcegood.org/report-2021, including a summary, ahead of this year’s UN General Assembly high-level general debate which begins on September 21 in New York. The report is now in its second edition, the first having been published last year. The Capital as a Force for Good initiative will also bring together key stakeholders at this year’s UNCTAD. World Investment Forum and explore other solutions to reduce the financing gaps for the SDGs.
Ketan Patel, President of Force for Good and CEO and Co-Founder of Greater Pacific Capital, said: “The financial sector is playing an expanding role in financing the SDGs and the transition to a sustainable digital future. However, in less than ten years, there is an urgent need to explore solutions that are even bigger and more radical than those being deployed today. Closing the funding gap must become an attractive business opportunity, but it will not be possible without a new understanding among all stakeholders. The United Nations is essential for this to happen.
Chantal Line Carpentier, Head of the United Nations Conference on Trade and Development in the Office of the Secretary-General in New York, says: “Humanity is at a crossroads. More than ever, all stakeholders must come together to ensure that this crisis is the start of a new economy for sustainable development with prosperity for all. The financial sector is essential to achieve the necessary transition. The Capital as a Force for Good initiative has been an important voice in highlighting how leaders in the financial industry are committed to tackling the world’s greatest challenges. Its convening of key stakeholders to this year’s UNCTAD World Investment Forum aims to increase their commitments and close the large and growing financing gap for the SDGs.
About Force for GoodThe mission of Force for Good is to mobilize capital, resources and ideas as a force for good in the world in a time of profound change. The organization’s Capital as a Force for Good initiative is guided by an advisory board of global leaders in policy, business and social impact and engages the world’s leading financial institutions and other stakeholders to promote sustainable development through the deployment of capital and solutions that address the world’s biggest problems and enable the transition to a better future.
The initiative publishes a report called Capital as a Force for Good assessing the role of capital in solving the world’s most pressing problems. The report is now in its second edition and is the result of the collaboration between the United Nations and the initiative, as well as the efforts of the many financial institutions and organizations that actively engage and support it. For more details, please visit www.forcegood.org.
Actively engaged companies include Bank of America, BlackRock, Bridgewater Associates, Citi, Credit Suisse, Fidelity Investments, First Abu Dhabi Bank, GIC Singapore, Goldman Sachs, Great-West Lifeco, HDFC Ltd, HSBC, Investec Group, Japan Post Holdings, JPMorgan Chase, Liberty Mutual Insurance Group, Lloyds Banking Group, Morgan Stanley, Nomura, Nordea, Northern Trust, OMERS, Putnam Investments, Schroders, State Street, UBS, Wellington and others. The report includes more than 100 financial institutions in total in the analysis.
Media contactNick Rice, Brunswick [email protected]+1 347 720 2943
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