A Traffic-Light Approach to Evaluating Sector-Level Impacts on Sustainable Development Goals: Understanding the Interconnectedness of SDGs and the Need for Informed Investment Decisions”.

Investors have long sought to align their investments with the Sustainable Development Goals (SDGs). However, assessing how corporations impact the SDGs has proven challenging, with many current efforts lacking depth and transparency. To address this issue, a new evidence-based review method has been proposed for evaluating sector-level impacts on individual SDGs.

The authors of the study use a traffic-light system to assign scores to 81 economic sectors based on their impact on SDGs 1-16. Their research reveals that most economic sectors have a negative impact on environmental SDGs, with primary sector activities impacting the highest number of SDGs.

To demonstrate the interconnectedness of SDGs, the authors use Causal Loop methodology as a case study in the agricultural sector. Their findings highlight the importance of understanding ‘impact shadows,’ or the way in which different goals interact and influence one another. The study also emphasizes the hierarchical nature of sustainable development objectives and underscores the need for investors to consider broader effects when making investment decisions that contribute to sustainable development goals.

Overall, this research highlights that investors must take into account how different sectors influence multiple goals in order to make more informed and responsible decisions that support sustainable development objectives. By using an evidence-based review method for evaluating sector-level impacts on individual SDGs, investors can better understand the complex relationships between these goals and make more informed decisions about their investments.