Assessing the Impact of Sectors on the SDGs: A New Evidence-Based Method for Investors

Using scientific principles to create a strategy for investing in sector-level Sustainable Development Goals (SDGs)

The authors of a new study have developed an evidence-based method for evaluating how corporations impact the Sustainable Development Goals (SDGs) at a sectoral level. The method assigns scores using a traffic-light system, analyzing the impacts of 81 economic sectors on SDGs 1-16.

The research reveals that most economic sectors have a negative impact on environmental SDGs, with primary sector activities impacting the highest number of SDGs. However, the authors use the agricultural sector as a case study to demonstrate the spillover effects resulting from interactions between SDGs. They employ Causal Loop methodology to highlight the importance of understanding ‘impact shadows’, the interconnectedness of SDGs, and the hierarchical nature of the goals for sustainable investment strategies.

Investors can use this evidence-based method to assess their investments’ impact on individual SDGs and make more informed and responsible decisions that contribute to sustainable development objectives. By taking into account how different sectors influence multiple goals, investors can make more informed decisions that align their investments with sustainable development objectives.

Overall, this study emphasizes the need for investors to consider the broader effects of their investments on the SDGs. By doing so, they can contribute to sustainable development while also ensuring responsible investment practices.

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