New Review Method Proposes Sector-Level Assessment for Corporate Impact on Sustainable Development Goals

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

Corporate investors have long been looking for ways to align their investments with the Sustainable Development Goals (SDGs). However, evaluating the impact of corporations on these goals has proven challenging, with many current methods lacking depth and transparency. To address this issue, a new evidence-based review method has been proposed for assessing sector-level impacts on individual SDGs. This 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. The authors use Causal Loop methodology to demonstrate the spillover effects resulting from interactions between SDGs, highlighting the importance of understanding ‘impact shadows’, the interconnectedness of SDGs, and the hierarchical nature of the goals for sustainable investment strategies.

Overall, the study emphasizes that investors must consider the broader effects of their investments on the SDGs. By taking into account how different sectors influence multiple goals, investors can make more informed and responsible decisions that contribute to sustainable development objectives.

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