Standards Launched to Guide Private Equity Funds on SDGs

The UN Development Programme (UNDP) has issued guidance on ways for private equity funds can contribute to the SDGs. The SDG Impact Standards for Private Equity Funds will be supplemented with a voluntary assurance framework that will include an ‘SDG Impact Seal’ in recognition of best practice.

The Standards aim to meet the need for clear guidance and fill a knowledge gap for businesses seeking ways to make a positive impact. The Standards provide a common language to help private equity, venture capital, and other funds in private markets achieve social and/or environmental impact through their investments. The Standards were developed by the UNDP initiative ‘SDG Impact,’ along with industry experts. SDG Impact seeks to empower investors and businesses to support and authenticate their contributions towards achieving the SDGs.

In launching the Standards, Elizabeth Boggs Davidsen, SDG Impact, said they will help focus approximately USD 4 trillion toward sustainable investments and solutions that can address challenges related to health, poverty, inequality, climate change, environmental degradation, and peace and justice. UNDP Administrator Achim Steiner highlighted the private sector’s role as a ‘first responder’ to the COVID-19 pandemic, through the provision of technology, innovation, skills, services, and employment, saying the private sector can now also play a critical role in building back better.

The Standards are:

focused on impact management and decision making, and emphasize transparency and governance;
flexible so they can be used by funds of any size, at any stage of development, and at any location;
grounded in existing principles, and provide context for applying other tools and frameworks, including metrics, taxonomies and reporting frameworks; and
voluntary and freely available.

SDG Impact is also developing Standards for Bonds and Standards for Enterprises, which are currently in the public consultation phase. [Publication: SDG Impact Standards: Private Equity Funds] [FAQs] [Glossary] [Consultation Input]