Investing in Sustainable Development Goals: Opportunities for Private and Public Institutions to Solve Wicked Problems that Characterize a VUCA World

Abstract

We live in a world full of global challenges, such as global warming, the COVID-19 pandemic, and only recently the Russia-Ukraine crisis, all of which confirm that we live in a volatile, uncertain, complex, and ambiguous (VUCA) world. Most of these challenges are considered to be wicked problems. For many decades, wicked problems have been viewed as difficult, even impossible to solve. This chapter examines how institutions can navigate the VUCA world through investing in SDG so as to solve wicked problems. The chapter argues that adopting socially responsible investment as a strategy allows both private and public organizations to improve economic, social, and environmental performance; and is a fine way of investing in SDG, which could be a long-term solution to wicked problems. Using a multivariate analysis of variance (MANOVA), the chapter examines the relationship between SDG investment and climate change solutions at the local level. Results show a significant effect of investment in SDGs on a solution to wicked problems like climate change. The chapter concludes that the difficulty or impossibility of solving global challenges is likely to be caused by a lack of investment in the SDGs.