Bank of England's emphasis on supporting the UN's SDGs

The Sustainable Development Goals (SDGs) set by the United Nations set out a global strategy to make the world a more sustainable and fairer by 2030. Long-term economic growth, poverty reduction and inequality are goals that can be achieved through sustainable investment The Bank of England (BoE) has identified as key. We will examine why the Bank of England's (BoE) willingness to support the United Nations.

Urgent need to support United Nations goals

The Bank of England (BoE) agrees that funding the Sustainable Development Goals is essential to eradicating poverty and promoting equality around the world. Because sustainable investing can promote social and environmental sustainability while strengthening the financial system (Wong, 2019). Greenhouse gas emissions can be reduced, food security improved, jobs created and economic growth supported, for example through investments in renewable energy and sustainable agriculture (Moffatt and Thomas, 2020).

In addition, poverty and social unrest exacerbate economic and social inequalities, which can be mitigated by investing in SDGs (Rezvani et al., 2020). Indeed, investing in areas such as education, healthcare, and small and medium-sized businesses is a great way to ensure growth for all (Ibrahim, 2019). For example, investing in microfinance institutions can promote financial inclusion and entrepreneurship while facilitating the provision of credit and financial services to low-income households and small businesses (Pravat and Karmakar, 2021).

The Bank of England (BoE) also sees support for the SDGs as an opportunity to reduce systemic risks and increase financial stability. Indeed, unsustainable activities such as fossil fuel extraction and deforestation contribute to climate change and other environmental and social problems, and pose long-term risks for investors and the economy at large (Hildebrandt and Young, 2020). For example, fossil fuel companies could be stuck after the transition to a low-carbon economy in which would have serious implications for their financial security (Liu and Hu, 2019).

In addition, the Sustainable Development Goals present a unique opportunity for the financial sector to increase its credibility and image by aligning its activities with the broader aspirations of society (Krueger, 2020). Trust between financial institutions and their customers will increase, leading to the implementation of more responsible and sustainable investment strategies (Moffatt and Thomas, 2020).

Finally, the Bank of England's commitment to the United Nations Sustainable Development Goals is particularly relevant as it underscores the importance of sustainable investment in achieving long-term economic development, reducing poverty and promoting social and environmental sustainability. The Sustainable Development Goals enable financial institutions to promote social and economic inclusion, reduce systemic risk and build a more resilient and stable financial system. It is therefore crucial that financial institutions prioritize the Sustainable Development Goals as a key driver for long-term economic development and poverty reduction, and integrate sustainable development into their investment plans.

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