Amidst rising government regulations and rapidly evolving standards and frameworks on sustainability, this knowledge portal helps you understand the various factors which are driving these developments, the current state of play, and what lies ahead.
1. Sustainable Development Goals
Following the Millennium Development Goals (MDGs) which were adopted in 2000, a more comprehensive set of 17 global goals (with 169 targets) known as the Sustainable Development Goals (SDGs) were agreed upon in 2015 by national governments of 193 countries. The SDGs were part of the ‘2030 Agenda for Sustainable Development’ which provided a shared blueprint for peace and prosperity for people and the planet. The 2030 SDG Agenda took a hit when the COVID-19 pandemic in 2019. The economic slowdown caused by lockdowns, and excessive expenditure by governments on relief and welfare schemes have deteriorated the overall state of public finance for achieving SDGs. The wars between countries which began soon after the pandemic further disrupted the global economy and supply chains. The wars which are now spreading to multiple countries are also threatening the progress made so far on the 2030 SDG Agenda.
Dashboard: The dashboard below shows the status of SDG achievement at the world level. In the drop-down menu on the right, you can select the country, region or group of countries to see the individual or average status of SDGs.
2. Planetary Health
The SDGs are also at risk because we are facing a “Triple Planetary Crisis” comprising of climate change, biodiversity loss and pollution. Our economy and lifestyle have caused substantial harm to multiple natural systems on the planet. Today, many natural systems are on the brink of irreversible damage (approaching or crossing tipping points), posing great danger for society and the economy.
Dashboard: The dashboard below has three pages – first showing the status of planetary boundaries and tipping points, second on the trends in climate change indicators, and third on the trends in wildlife population. You can change the page by click on arrows (< or >) at the bottom of the dashboard.
3. Rise in Laws and Regulations on Sustainability
In response to the aforementioned planetary risks and state of SDGs, national governments across the world have started to introduce different regulations on sustainability which affect businesses and investors directly or indirectly. The regulations cover diverse aspects like ESG reporting, climate risk disclosure, green or sustainability taxonomy, eco-labels, green-washing, and more…
– Sustainability Regulations Navigator –
(Coming Soon)
4. Increasing Sustainability Reporting & Disclosures
As a consequence of increasing government regulations as well as pressure from investors, consumers and employers, businesses are increasingly reporting and disclosing their sustainability performance.
Dashboard: The dashboard below shows trends in sustainability disclosures across industries and geographies. In the drop-down menu on the mid-right, you can select an industry to see sustainability disclosure trends within that industry across geographies.
5. Opportunities for Business & Investment
As investors are becoming aware of the importance of sustainability issues and the risks they pose on their investments, they are aligning their investment portfolios accordingly. A large majority of the concerned investors have switched to ‘responsible investing’ which aims at reducing the risks of environmental, social and governance issues on the investment portfolio. On the other hand, many investors are also adopting the ‘impact investing’ approach which aims at investing in organizations and projects which create additional positive impact on the environment and/or society while generating financial returns for the investors.
Dashboard: The dashboard below has two pages – first showing trends in ‘Responsible Investing’ and second showing trends in ‘Impact Investing’. You can change the page by click on arrows (< or >) at the bottom of the dashboard.
6. Risks to Business & Investment
Climate change, sustainability regulations, green transition, climate and green-washing litigation, etc. pose direct and indirect risks which are financially material (now or in near future) for businesses and investors.
Dashboard: The dashboard below shows what share of the total global market cap is likely to have financially material risks due to various sustainability issues.