ESG versus SDG Impact

Current approaches to incorporating environmental, social and governance (ESG) factors into business and investment decisions are based on risk management mechanisms that the market has used for decades to protect the financial value of companies. However, these approaches are insufficient for companies, investors, or society to contribute to sustainability and the achievement of the SDGs at the pace the planet and people need.

The SDG Impact Standards were developed to address the gaps in current market practices that undermine progress toward sustainability and achieving the SDGs - and that ultimately threaten the stability of the economic and financial systems on which businesses depend to survive and thrive.

Because the SDG Impact Standards focus on managing the company's material impacts - which includes managing its interdependencies - and include a strong focus on responsible business practices and governance, ESGs are fully embedded in the SDG Impact Standards.