Progress with Global UN Sustainable Development Goals shows that while time has progressed, we’re not maintaining a similar pace with taking action on climate change and the environment.
The development of the UN Sustainable Development Goals (SDGs) in 2015 presented a clear message for our planet. Countries had to take decisive action to ensure that by 2030 we achieved the necessary goals, stabilised climate change and protected our natural environment. The Institute of Chartered Accountants in England and Wales (ICAEW) followed the vision of the SDGs and implemented each measure as part of their wider strategy, highlighting the vital role finance and accounting would play in delivering a sustainable future.
Progress is being made in some areas of the SDGs. For example, SDG 8, focuses on work and economic growth, economies have displayed strength, adaptability and resilience. While the pandemic created many challenges, it enabled accelerated growth in digital technology and completely transformed global access to finance. As economies continue to recover, there has been a clear decrease in global unemployment levels. Despite the positive developments, as we near the mid-way point to 2030, progress has been slow.
The recent UN SDG Progress Report warns that current rates suggest we are on track to achieve only 12% of our SDG targets by 2030. According to the report, progress concerning many targets has been minimal, especially with essential targets related to poverty reduction, hunger, climate and nature.
As we struggle to tackle the climate and nature challenges, inequalities continue to rise fast, and developing nations are experiencing the full impact. This challenge is beyond a people and planet crisis and impacts our economies and global financial system. UN Secretary-General Antonio Guterres explains that to tackle the biggest causes of the problem, we must transform our dated international finance system.
We must reshape our economies, how we perform business and how our financial systems operate, shifting financial processes towards net zero outcomes.
After the Dasgupta Review on the Economics of Biodiversity, the UK Government committed to aligning the UK economy and finance system with a nature-positive future, introducing compulsory biodiversity net gain requirements for developers. The rate of action is, however, falling short of expectations. Differing policy plans are hindering investment in low-carbon projects, impacting the UK’s competitiveness and threatening net zero targets in the UK. Finance continues flowing towards areas that impact nature, whether through UK supply chains or lending and overseas investment.
As we near COP28, there is an opportunity for global leaders, businesses and communities to come together with a plan to improve progress. Governments must leverage all options, including fiscal measures, to deliver incentives and support businesses, including plans for the existing and future workforce. Developed countries must also remain responsible for their financial commitments to developing nations.
Finance professionals are well-positioned to support this transition, playing a vital role in all economic fields. By combining sustainability with financial plans, measuring risk, determining opportunities and delivering transparent reporting, they can positively contribute to connecting the gaps. Finance professionals can influence the reshaping of business activities and the broader financial landscape, driving positive changes associated with the SDGs.
The ICAEW recognises the extent of this challenge but is committed to playing its part and supporting the government to deliver the frameworks required to drive further business action. ICAEW highlights they will continue to provide their members with the training and support to integrate climate, nature and social justice into decision-making and disclosure.
