PRI proposes SDG outcomes framework ahead of reporting changes

18 Jun, 2020 07:58
source: Singularity Financial

Singularity Financial Hong Kong June 18, 2020 –The Principles for Responsible Investment (PRI) has published guidance on how investors can “shape the real-world outcomes” of their investments by using the Sustainable Development Goals (SDGs), as it prepares to introduce mandatory outcomes-based reporting for the first time, from next year.

Following on from the PRI’s The SDG investment case – which laid out why the SDGs are relevant to investors, why there is an expectation that investors will contribute and why investors should want to – this report takes the next steps by outlining a prospective framework for action. It is meant as a useful reference for all PRI signatories, providing sufficient scope for asset owners, investment managers and service providers to differ in the specific actions they undertake to shape outcomes in line with the SDGs.

This framework is the starting point for a deeper and ongoing body of work on the subject, and will be the basis for future guidance and support.

The PRI proposes a five-part framework for investors that are seeking to understand the real-world outcomes of their investments, and to shape those outcomes in line with the SDGs.

It comes as the investor organisation, with $89trn (€78trn) in assets managed by its signatories, has registered an increase in its members mentioning the SDGs in their reporting, with 650 in 2020, compared to 418 last year.

The United Nations Conference on Trade and Development (Unctad) estimates that meeting the 17 SDGs by 2030 will require $5trn to $7trn per year from the private sector, the PRI report said.

The PRI’s ‘Investing with SDG Outcomes’ report can be found here.

Going forward, the PRI will work with signatories, who seek to shape outcomes in line with the SDGs, to provide best practices and develop a consensus on how to address common challenges, it said.

The PRI will also include an initial set of questions on shaping real-world outcomes in the pilot year of its new reporting framework in 2021.