Corporate Finance. UN Global Compact

The UN Global Compact Action Platform on Financial Innovation for the SDGs

Corporate Finance — A Roadmap to Mainstream SDG Investments is part of a broad agenda of the United Nations Global Compact to secure private capital for the Sustainable Development Goals (SDGs). The goal is to foster companies and their Chief Financial Officers (CFOs) or Corporate Treasurers to tap into the capital markets to support their companies’ efforts to contribute to the SDGs. They also aim to inspire major players in the investment community to increase their allocation of capital toward SDG investments and to contribute to closing the financing gap for the SDGs.

The SDGs create tremendous opportunities for companies, and contributing to them will require substantial capital. Whether entering new markets or developing new business models, companies will need to raise capital for research and development (R&D), human resources, physical assets and other activities.In this publication, they introduce an integrated model for corporate SDG finance to support the many ways businesses can contribute to the SDGs while creating a broad market for investors seeking credible impact investments. They seek a paradigm shift where companies compete for capital based not only on their investment thesis, but also on their SDG impact thesis. They believe that efficient capital markets can encourage companies to experiment with and improve upon a wide range of sustainability solutions, and overtime, help identify the most effective ways to contribute to the SDGs. The goal is to champion Chief Financial Officers (CFOs) and corporate treasurers as the stewards of trillions of US dollars in investments that can contribute directly to the SDGs.Involving CFOs and corporate finance professionals means giving a voice to companies to participate meaningfully in the SDG finance agenda. It enables companies to compete for impact-oriented capital by proactively communicating the effectiveness and impact of private sector solutions for the SDGs. It further promotes the credibility of companies as scalable investment vehicles for the SDGs, including through foreign direct investments in emerging and least developing markets.
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