Private finance and investment are of central importance for the implementation of the 2030 Agenda, including the 17 Sustainable Development Goals (SDGs). Yet, to date, private investment in areas critical for implementation of the SDGs is vastly insufficient. Additional resources are urgently needed to achieve the Sustainable Development Goals (SDGs).
The bulk of the required investment will need to be long-term. The incentives for institutional investors, commercial banks, capital market actors and corporations are driven by shorter time horizons such as dividends or quarterly reporting requirements, that prioritize short-term shareholder value. Shifting a small amount of assets to long-term investment in sustainable development could provide much needed resources for the achievement of the SDGs. At the industry level, extending performance benchmarks, investment mandates, and corporate board structure are high-impact actions that can be used to unlock investment into sustainable development.