The United Nations Development Programme (UNDP) has announced the release of Sustainable Development Goals (SDGs) Impact Standards for Bonds Issuers (version 1.0) after a series of public consultations.

The SDG Impact Standards are designed for setting the UN on a path to achieve the SDGs by 2030. More so, to put impact at the very heart of every consumption, business, and investment decision.

“… The Standards are a ground-breaking UNDP initiative to empower investors, and businesses with the clarity, insight, and tools required to support and authenticate their contributions to achieving the SDGs.”

Concurrently, UNDP has begun final public consultations for completing the SDG Impact Standards for Enterprises. This is followed by a Version 1.0 release of the Standards by 30 June 2021.

With the process completed, UNDP sought responses from all interested stakeholders; enterprises, investors, civil society, analysts, intermediaries, assurance providers and policy makers.

Accordingly, the SDG Impact Standards are already undergoing piloting in the market. This piloting is with New Development Banks (NDB) SDG bond issuance in China Interbank Bond Market.

The Director of UNDP Finance Sector Hub, Marcos Neto pointed indicated

“… The responses overwhelmingly saw the important contribution that these Standards can make, in shifting the capital to fund the UN Sustainable Development Goals (SDGs).

“We are proud to see Issuers already piloting the standards, including NDB who last week announced a RMB 5 billion SDG Bond, utilizing the Standards and the SDG Finance Taxonomy (China) developed by UNDP.”
Marcos Neto, Director of UNDP Finance Sector Hub

Importance of the SDG Impact Standards

Enterprises and investors are beginning to recognize that sustainable development is at the core of long-term value creation. However, sustainability and impact considerations not yet systematically infused into their decision-making. SDG Impact aims to help make this process easier through SDG Impact Standards.

“Across the globe, the private sector is increasingly seeking new opportunities to make a positive impact, mitigate longer-term and systemic risks – and to make meaningful contributions to achieving the SDGs.

However, concrete guidance on how to translate that intent to action remains a missing link. These UNDP SDG Impact Standards for Bond Issuers are a practical contribution. Hence, they provide a common language and a clear system to fully integrate the SDGs into decision-making processes.

Furthermore, Fabienne Michaux, Director of UNDP’s SDG Impact advanced that:

“COVID-19 and long-term trends such as climate change and biodiversity reinforce how interconnected our future social, environmental and economic outcomes are. This makes impact management and advancing sustainable development in line with the SDGs even more important and urgent.
Fabienne Michaux, Director of UNDP’s SDG Impact

“Crucially, the Standards are helping us to reimagine the role of enterprises and investments in our society. No longer can the world be driven by a zero-sum game of economy versus environment, or health versus economy, for instance.”

According to the report, a list of complementary SDG Impact tools are under development; guidance, a glossary, assurance protocols, training for different actors across the capital and investment spectrum.

The UNDP is also in partnership with the Organization for Economic Cooperation and Development (OECD) in pursuance of Impact Standards for Financing Sustainable Development.