The role of the private sector in implementing the Sustainable Development Goals

In September 2015, more than 200 heads of state adopted the Sustainable Development Goals (SDGs), a bold, global agenda for inclusive and sustainable social, economic and environmental prosperity. The ambitious agenda, with a 2030 delivery date, requires strong partnerships between governments, the private sector and civil society. Yet, unlike previous United Nations development agendas, it is imperative the private sector play a central due to its ability to innovate, its resilience in difficult working environments, and its capacity to fund environmental sustainability, youth engagement, stronger economies, and innovation.

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The private sector drives much of the innovation in data, science and technology—areas that are all crucial for fulfilling the 2030 Agenda. This is why it is necessary to engage the private sector and secure access to the technology needed to achieve the SDGs. Data and technology can inform decision-makers, maximize program impact and, by default, galvanize action for development and mobilize political commitment and resources. The leadership of companies like Google, KPMG, MasterCard, Microsoft, Philips and Facebook is imperative for building a global community dedicated to successfully harnessing the data revolution.

Engaging the private sector in social and economic discussions, as well as program design, planning, implementation, monitoring and evaluation can align business strategies around the SDGs and also generate benefits such as limiting endemic corruption in developing countries.

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National government resources and development aid will not be enough to cover the almost $7 trillion USD[1] cost of achieving the SDGs. The private sector can help unlock the investments needed to realize the SDGs by 2030. National governments, multinational development banks, impact investment institutions, and the private sector can work together to set up innovative and sustainable investing mechanisms that appeal to a variety of private investors.

One example is expanding fiduciary duty and sustainable portfolios as in the case of the Union Bank of Switzerland. The bank's 100% sustainable strategic asset allocation portfolio attracted $432 million USD in bonds from multilateral development firms like the World Bank. The private sector can play a leadership role in advocating for increased access to such instrument for smaller private investors[2].

The SDGs are a unique opportunity for the private sector to play a critical role in advancing the 2030 Agenda. Our commitment to the SDGs will be measured by how well the private sector translates the SDGs into business action for inclusive social, economic, and environmental development.

Doni Soro