Europe's largest investor calls on govts to foster private-sector investment in support of the SDGs

Author: Investment & Pensions Europe, Published on: 11 September 2018

"Norway SWF: Governments could help realise sustainable development goals", 7 Sep 2018

Governments should consider action to foster more private-sector investment in support of the UN’s Sustainable Development Goals (SDGs), according to Europe’s largest investor [Norges Bank Investment Management]...

“An important hurdle to investing in SDG-supportive projects is that the costs of unsustainable business practices are frequently not borne by the producers, but by society, or other businesses at large,” the manager said.

“Sustainable investments may also create additional costs in the short run, while the benefits may only accrue in the long run.”

It argued that governments could introduce market-based mechanisms to incentivise companies and individuals to internalise the costs of the pollution and environmental damage they caused...

Governments could also make co-investments and cooperate more closely with the private sector, it suggested, and consider aligning financial incentives with the SDGs through public policies and regulatory frameworks.

NBIM said that [...] it invested in [...] firms selling or developing products or services for a more environmentally-friendly economy. It also actively excludes companies with “unsustainable business practices that may impede progress towards the SDGs”.

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Related companies: Norges Bank Investment Management (NBIM)