Beyond Philanthropy: Why True SDG Integration is a Fiduciary Duty, not a PR Move

Abstract

The issue about institutional investors' portfolio alignment with the UN's Sustainable Development Goals (SDGs) has, for a very long time, been perceived as the choice between ethical investing and profitability. This paradigm is old-fashioned – and more and more becoming legally indefensible. From Amsterdam to Tokyo, the regulatory authorities have narrowed down the gap from voluntary commitment to legal requirement, while growing empirical evidence shows that portfolios misaligned with the SDGs pose material risks, which have yet to be priced into investments. It is not a matter of whether the alignment must be achieved. It is a matter of how soon.