Asset Manager Perspective on the Sustainable Development Goals
5 September 2018
Norges Bank Investment Management has published a note on how the fund as a responsible investor can support sustainable development and help fulfil the UN Sustainable Development Goals.
The UN Sustainable Development Goals (SDGs) set out an ambitious policy agenda to achieve sustainable economic, social and environmental development by 2030. The SDGs provide a common global guideline for countries, businesses and civil society. The fund depends on sustainable global economic growth to produce long-term return. Our ambitions as a responsible investor overlap to a great extent with the SDGs.
In our Asset Manager Perspective we explore 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.
“The fund’s investments in more than 9,000 companies in 72 countries contribute directly and indirectly to a number of the SDGs. Our most important contribution is to strengthen governance, improve performance and promote sustainable business practices. We invest in developing markets and in companies developing solutions for a more environmentally friendly economy. Finally, we divest from companies with unsustainable business models”, says Yngve Slyngstad, CEO of Norges Bank Investment Management.
For several years, the fund has focused on many of the challenges that are now defined as SDGs. We have clear expectations of the companies we are invested in when it comes sustainability. So far, we have published expectations documents on children’s rights, climate change, water management, human rights, tax and transparency, anti-corruption and ocean sustainability.
We promote good and consistent disclosure on sustainability.
“As an investor, we depend on good disclosure to analyse the companies we invest in. There is a need for improved disclosure on sustainability beyond regular financial reporting”, says Slyngstad.