A Science-Based Heuristic to Guide Sector-Level SDG Investment Strategy

Maniatakou, Sofia, Crona, Beatrice, Jean-Charles, Beatrice, Ohlsson, Moa, Lillepold, Kate and Amar Causevic (2024). A science-based heuristic to guide sector-level SDG investment strategy, Journal of Sustainable Finance & Investment, DOI: 10.1080/20430795.2024.2320318

26 Pages Posted: 13 Jan 2024 Last revised: 4 Mar 2024

See all articles by Sofia Maniatakou

Sofia Maniatakou

Stockholm University - Stockholm Resilience Center, Global Resilience Partnership

Beatrice Crona

Stockholm Resilience Centre; Global Economic Dynamics and the Biosphere Program

Isabelle Jean-Charles

Global Economic Dynamics and the Biosphere

Moa Ohlsson

Global Economic Dynamics and the Biosphere; Stockholm University - Stockholm Resilience Center, Global Resilience Partnership

Kate Lillepold

Global Economic Dynamics and the Biosphere

Amar Causevic

Global Economic Dynamics and the Biosphere

Date Written: December 27, 2023

Abstract

Aligning investments with Sustainable Development Goals (SDGs) has been a longstanding ambition for many private investors. The assessment of corporate impact on the SDGs is not a trivial task, and most present-day attempts often overlook SDG interactions, and lack scientific anchoring and transparency. We present an evidence-based review approach for investors to assess sector-level impacts on individual SDGs, and score these using a traffic-light system. Our initial review documents impacts of 81 economic sectors on SDGs 1-16. Results show that environmental SDGs are impacted negatively by most economic sectors, and that primary sector activities negatively impact the highest number of SDGs. Using the agricultural sector as a case, we draw on Causal Loop methodology to illustrate spillovers resulting from SDG interactions. Our findings point to three key considerations of relevance for sustainable investment strategies; the necessity to capture ‘impact shadows’, spillovers across SDGs, and the hierarchical nature of the SDGs.

Keywords: Sustainable Development Goals, economic sectors, impact assessment, sustainable investing, systems thinking

Suggested Citation

Maniatakou, Sofia and Crona, Beatrice and Jean-Charles, Isabelle and Ohlsson, Moa and Lillepold, Kate and Causevic, Amar, A Science-Based Heuristic to Guide Sector-Level SDG Investment Strategy (December 27, 2023). Maniatakou, Sofia, Crona, Beatrice, Jean-Charles, Beatrice, Ohlsson, Moa, Lillepold, Kate and Amar Causevic (2024). A science-based heuristic to guide sector-level SDG investment strategy, Journal of Sustainable Finance & Investment, DOI: 10.1080/20430795.2024.2320318, Available at SSRN: https://ssrn.com/abstract=4687299 or http://dx.doi.org/10.2139/ssrn.4687299

Sofia Maniatakou (Contact Author)

Stockholm University - Stockholm Resilience Center, Global Resilience Partnership ( email )

Stockholm
Sweden

Beatrice Crona

Stockholm Resilience Centre ( email )

Kräftriket 2B
Stockholm, SE-114 19
Sweden

Global Economic Dynamics and the Biosphere Program ( email )

Sweden

Isabelle Jean-Charles

Global Economic Dynamics and the Biosphere ( email )

Moa Ohlsson

Global Economic Dynamics and the Biosphere ( email )

Stockholm University - Stockholm Resilience Center, Global Resilience Partnership ( email )

Kate Lillepold

Global Economic Dynamics and the Biosphere ( email )

Amar Causevic

Global Economic Dynamics and the Biosphere ( email )

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