The sustainable development goals and the Government Pension Fund Global
Asset Manager Perspective 5 September 2018
The UN Sustainable Development Goals (SDGs) set out an ambitious policy agenda to achieve sustainable economic, social and environmental development by 2030. As a long-term and global owner, the Government Pension Fund Global has an interest in a more sustainable global economy. Achieving the SDGs, in both developed and developing countries, could contribute to the long-term return of the fund through increased economic resilience.
This note explores the economic context of the SDGs and the role institutional investors may play in achieving these goals. The fund supports the transition to a more sustainable global economy in four main ways. We provide long-term capital to over 9,000 companies and exercise our ownership to strengthen governance, improve performance and promote sustainable business practices. We invest in 38 developing markets, of which nearly half are outside our benchmark, thereby providing long-term capital to countries most in need of investments. Through our environment-related mandates, we make additional investments in companies offering or developing solutions for a more environmentally friendly economy. Finally, we reduce our exposure to unacceptable risks through ethical exclusions and risk-based divestments.