Sustainable Finance - A Growth Engine for the Slowing Pace of SDGs

Abstract

In 2015, the member states of the United Nations adopted a blueprint for peace and prosperity for all the people on the planet. This blueprint was named as the 2030 Agenda for Sustainable Development. The idea of universal prosperity and well-being was taken more urgently in this blueprint and instead of listing out general outlines and principles, the United Nations listed time-bound and measurable objectives. The seventeen SDGs are at the core of the 2030 Sustainable Development Agenda. However, the recent world events - the COVID pandemic and the war in Ukraine being the major ones have given a severe setback to the progress on these goals. And since human suffering, climate change and the general stress on the planet’s resources will not give us a breather, it is now up to us to find all possible ways to get us back on track to achieving the SDGs. With this objective in mind, this research paper makes a case for expanding the definition of sustainable finance from presently supporting the ESG framework, to expanding its scope to map with the SDG framework as well. The paper outlines the differences and the overlaps in the two frameworks and how sustainable finance could help funnel private capital to meeting SDGs within the original timelines.