Sustainable Finance Blueprint: Integrated SDG strategy and investments | CFO Coalition for the SDGs

The CFO Coalition aims to illuminate the critically important role of companies in financing sustainable development, while also providing guidance on how CFOs can collectively help redirect trillions in annual corporate investments toward the Sustainable Development Goals (SDGs).

In 2021, CFOs in the Coalition announced a commitment to direct $500 billion in corporate investments toward SDG impact and strategies. As the initiative continues to grow and expand—encompassing thousands of UN Global Compact CFOs around the world—our goal is to increase this number to tens of trillions in annual corporate investments. This recognizes the pivotal part that CFOs play in overseeing more than $15 trillion in annual corporate investments globally.

Topics in this principle

Integrated SDG Strategy and Investments

Once companies have developed a compelling impact thesis, as well as measurements for investors and stakeholders (based on their capabilities, assets, and geographical area), the key is to adopt a strategy—and make the right type of investments—to maximize impact.

Identifying Corporate SDG Investments

To increase the visibility of corporate SDG investments and source adequate financing, it’s important to identify the types of investments that companies are making to support their SDG strategy.

Adopting SDG Investment Criteria

Companies can adopt internal investment criteria for corporate investments based on their sustainability strategy. Over time, these criteria can become another “hurdle” rate for investments, alongside the traditional internal rate of return (IRR), focusing on positive SDG impact and management of downside ESG risks.

Governance of SDG Investments

Monitoring of SDG investments should be integrated into a company’s existing corporate-governance mechanisms, including oversight by the board of directors or a specialized committee, risk management and internal controls, external audit, and reporting through the main communication channels for financial and sustainability information.

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Integrated SDG Strategy and Investments

Once companies have developed a compelling impact thesis, as well as measurements for investors and stakeholders (based on their capabilities, assets, and geographical area), the key is to adopt a strategy—and make the right type of investments—to maximize impact.

Identifying Corporate SDG Investments

To increase the visibility of corporate SDG investments and source adequate financing, it’s important to identify the types of investments that companies are making to support their SDG strategy.

Adopting SDG Investment Criteria

Companies can adopt internal investment criteria for corporate investments based on their sustainability strategy. Over time, these criteria can become another “hurdle” rate for investments, alongside the traditional internal rate of return (IRR), focusing on positive SDG impact and management of downside ESG risks.

Governance of SDG Investments

Monitoring of SDG investments should be integrated into a company’s existing corporate-governance mechanisms, including oversight by the board of directors or a specialized committee, risk management and internal controls, external audit, and reporting through the main communication channels for financial and sustainability information.

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