The Paris Agreement and the Sustainable Development Goals (SDGs) will only be met if developed and emerging market stakeholders – such as governments, investors, multi-lateral organisations and local communities – work towards their advancement.
Although some progress has been made since 2015, a lack of financing remains a major barrier and it is most acute in emerging markets. The Organisation for Economic Cooperation and Development (OECD) estimates that there is a US$3.7trn funding gap between the annual financing needed to meet the SDGs by 2030 and what is provided by current investment levels, with the COVID-19 pandemic creating additional capital needs and reducing existing funding.
Investors – including PRI signatories – can play a role in closing this gap by applying responsible investment approaches to their emerging market investments, such as ESG incorporation and considering sustainability outcomes, and by collaborating with local and international stakeholders.