Why are SDGs important?
United Nations set the Sustainable Development Goals (SDGs) in 2015. SDGs require investors to act in accordance with ideas of the ESG investment. But, can we say that ESG investment benefits us investors? Some people say that environmental or governance responses increase production costs. Thus, they say that it put pressure on corporate profits. However, we disagree with such idea.
Today, countries around the world are implementing policies in line with the SDGs philosophy. Consumers are also actively purchasing products from companies caring about the environment, human rights and governance. Let’s aim to contribute to the achievement of the SDGs in the companies’ activities. Then, the companies will be able to directly enjoy the incentives of the government’s policies. Also, numbers of consumers who sympathize with the principles of the SDGs will support these companies. As a result, the companies easily improve their financial performance by acting in accordance with the SDGs philosophy.
In addition, large companies around the world are trying to eliminate companies violating the SDGs philosophy from their supply chains. These large companies preferentially adopt products from companies that operate in line with the SDGs philosophy when procuring materials or equipments. So, companies ignoring the SDGs are at high risk of losing these business opportunities.
Responding to poverty and human rights issues also has the advantage of enjoying benefits of long-term economic growth. Let’s imagine that people in emerging countries resolve the poverty problem. These countries will surely have improved GDP per capita. Then, the emerging markets will grow and they become able to buy a large amount of the products from developed countries.
We need to be aware that contributing to the achievement of the SDGs is for our benefits, not for contributing to philanthropy.
The world economy is rapidly developing. Under such circumstances, we are encountering to environmental destruction. We have air pollution problems, and waste plastics cause marine pollution. In addition, forest destruction and global warming are long-term hot issues. Furthermore, we have various human rights issues. For example, labor issues, poverty issues, food issues, and education issues.Continue reading “We invest in sustainable growth of advanced economies”
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