How do the UN sustainable development goals impact investing?

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The Sustainable Development Goals, adopted by UN Member States in 2015, consist of 17 goals the world must collectively achieve by 2030 to end poverty, protect the planet and improve the lives and prospects of everyone, everywhere.

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Title: How do the UN SDGs impact investing?

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Carole Crozat

Head of Fundamental Research for BlackRock Sustainable Investing

 While measuring the alignment of investments to the UN SDGs is still a complex and evolving task, we believe that their integration in investment decisions can help secure long-term financial performance and is relevant to all sustainable investors. 

Our research finds significant overlap between the UN SDGs and company indicators that are material to their long-term performance. 

This means that the management of both positive and negative social and environmental outcomes today may become more and more material to company success in the future as countries progress towards achieving the goals.

Redirecting capital towards them could offer 12 trillion dollars of market opportunities linked to our long-term social and environmental wellbeing. Examples include the building of key waste treatment and water infrastructure, and green transportation.

The bottom line is that investing in alignment with the UN SDGs has the potential to deliver value to all investors and will play a key role in accelerating the global transition towards the goals.

In 2015, the United Nations member states adopted 17 goals to improve sustainability worldwide by 2030.  To learn more, watch Carole Crozat, Head of Fundamental Research for BlackRock Sustainable Investing explain how investors will play a key role in advancing the process from developing key infrastructure to building green transportation.

Larry Fink: I really believe the transformation of leadership, the transformation of businesses is about more and more leaders in their focusing on things about their stakeholders. They're connecting with their employees deeper and broader, they’re connecting with the client broader and they're certainly trying to be more connected to their society. So much of that is in this letter it is about moving forward on better disclosure, more complete disclosure, especially in that zero climate change. And investing is something that is a powerful economic result. As we move towards a more sustainable world it's going to create great jobs, is going to create a you know a great environment, and so we should not be afraid of it we should all be embracing it and finding ways that we could you know be a part of that and I think this is one of the big messages in the 2021 letter.

Larry Fink on our sustainable future

Larry Fink, BlackRock’s Chairman and CEO, discusses how the energy transition, including the widespread adoption of net zero, will fundamentally reshape the global economy.

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PRESSURE TESTED

iShares fixed income ETFs provided liquidity and price discovery when investors needed it most.2

1 WRI (May 2020), Water: mapping, measuring and mitigating global water challenges.
2During stressed markets, iShares UCITS fixed income ETFs traded an average of US $17.5B (21 Feb - 20 Mar 2020), more than twice the 2019 weekly average of $7.8B. All amounts in $USD.

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