New York, United States of America, Sept. 26, 2024 (GLOBE NEWSWIRE) -- The United Nations Global Compact successfully concluded its 2024 SDG Investment Forum, an event that brought together leaders from business, finance, government, and civil society to explore innovative ways to mobilize private capital towards achieving the Sustainable Development Goals (SDGs). Held during the United Nations General Assembly, the forum culminated with the launch of a groundbreaking report "Accelerating Innovation in Sustainable Finance."
The SDG Investment Forum is a cornerstone event in the global effort to accelerate sustainable finance, emphasizing the importance of aligning investment practices with the SDGs to address the world’s most pressing challenges.
This year’s forum featured high-level discussions and workshops focused on actionable strategies to bridge the significant financing gap needed to achieve the SDGs by 2030 as outlined in the key findings of the report:
- Increased Private Investment is Essential: The report highlights the urgent need for increased private investment, particularly in emerging markets where the financing gap is most pronounced. With global private financial assets totaling $200 trillion, the report calls for innovative mechanisms to unlock this capital and direct it towards sustainable development.
- Overcoming Structural Barriers: The report identifies key challenges such as the lack of transparency, the mismatch between risk and returns, and the need for better integration of sustainability into financial markets. It advocates for the establishment of global sustainability reporting standards and the use of innovative blended finance tools, new outcomes-based financing mechanisms, and technologies like AI to bridge data gaps, especially in emerging markets.
- The UN’s Leadership Role: The report emphasizes the UN’s unique position to convene global stakeholders, standardize sustainability practices, and promote transparency in financial markets. It calls for the UN to lead efforts in creating de-risking mechanisms and fostering partnerships that can drive the integration of sustainability into corporate and financial decision-making.
The 2024 SDG Investment Forum featured key sessions on topics including innovative financing mechanisms, sustainability-linked investments, gender-led investing, and the role of technology in driving sustainable finance. Participants explored the potential of public-private partnerships and blended finance to mitigate risks and unlock greater investment flows into sectors critical to achieving the SDGs.
Sanda Ojiambo, CEO and Executive Director of the UN Global Compact, emphasized the transformative potential of private capital in sustainable finance: With $200 trillion in global private financial assets, the potential for the financial sector to drive sustainable development is immense. Our recently launched report, Accelerating Innovation in Sustainable Finance, underscores that it's not just about identifying the challenges but about creating innovative mechanisms that unlock private investment—particularly in emerging markets where the financing gap is most critical. The work we’re doing, alongside our partners, is setting the foundation for a global shift in capital markets, ensuring that investments drive both financial returns and impactful, long-term value creation for a sustainable future."
Christian Stracke, Global Head of Credit Research at PIMCO and Co-Chair of the CFO Coalition for the SDGs, emphasized the need for urgent action: "We see continued momentum in the sustainable investing megatrend as more investors align with environmental and social goals. We commend the UN's latest report and its crucial role in mobilizing private finance to support the SDGs. By fostering collaboration between public and private sectors, we can create a more sustainable future together."
Alberto De Paoli, Head of Rest of the World at Enel and Co-Chair of the CFO Coalition for the SDGs said “We stand at a critical juncture where the financial sector must step up and lead by example. The alignment of private capital with the SDGs is no longer optional—it is essential. Through innovative mechanisms as sustainability-linked and blended finance, we can leverage public and private investments to not only address the most pressing global challenges but also demonstrate that sustainability generates tangible economic and financial value. By channeling the immense financial resources at our disposal into sustainable investments, we can create a more resilient, equitable future.”
Douglas L. Peterson, President and CEO of S&P Global; Member of UN Global Board and strategic advisor to the CFO Coalition for the SDGs noted that: “The global financial system stands at a pivotal moment. To meet the challenges of the 21st century, we must rethink how capital flows are directed. Sustainable finance—underpinned by transparency, accountability, public-private sector cooperation, and innovation—will drive the transformation we need to achieve the SDGs.”
The Forum also laid the groundwork for discussions at the Summit of the Future and the Fourth International Conference on Financing for Development in Spain next year. These events will further explore the strategies and tools presented in the report to build a more transparent, resilient, and sustainable global economy. Central to these discussions will be the Forward Faster Initiative, a key pillar of the UN Global Compact's strategy to accelerate private sector contributions toward the SDGs. By harnessing innovation, investment, and collaboration, the initiative aims to fast-track the transition towards sustainable and inclusive economic systems, ensuring that the pace of progress matches the urgency of the global challenges we face.
Notes to Editors
About the CFO Coalition for the SDGs
The UN Global Compact CFO Coalition for the SDGs is the first UN initiative to mobilize finance chiefs and their corporations to create the necessary environment to attract more private capital towards sustainable development. It provides Chief Financial Officers (CFOs) worldwide with a platform to collaborate with peers, investors, financial institutions, and UN agencies to develop principles, frameworks, and recommendations to integrate the Sustainable Development Goals (SDGs) in corporate finance and create a market for mainstream SDG investments. For more information, follow @globalcompact and visit our website at www.cfocoalition.org. To sign up please visit https://www.cfocoalition.org/get-involved
About the United Nations Global Compact
The ambition of the UN Global Compact is to accelerate and scale the global collective impact of business by upholding the Ten Principles and delivering the SDGs through accountable companies and ecosystems that enable change. With more than 20,000 participating companies, 5 Regional Hubs, 62 Country Networks covering 78 countries and 14 Country Managers establishing Networks in 20 other countries, the UN Global Compact is the world’s largest corporate sustainability initiative — one Global Compact uniting business for a better world.
