According to Pimco, the biggest bond investor in the world, the goals of the United Nations to address global hunger, sustainability, and poverty, by 2030 could likely be at risk because of poor target setting and disclosure.
Pimco is based in the United States of America. its analysis of the corporate disclosures of 246 companies to examine the extent of the reports referenced the Sustainable Development Goals of the United Nations and in how much detail.
SDG reporting enables investors to make informed decisions and to back ESG (environment, social, governance) investment strategies.
However, even though an encouraging 63 percent of issuers referenced the SDGs in some form, the research found that only 12 percent of the companies reference the SDGs quantitative targets for meeting goals “indicating that many are finding it challenging to translate well-intentioned support into action.”
In the research paper, Pimco stated: “While momentum is building among corporate issuers to contribute to the SDGs, we believe overall private sector progress is insufficient to achieve the 2030 Agenda.”
It added: “Many investors would like to allocate more capital to companies best aligned with the SDGs, but existing levels of disclosure make this difficult to do.”
The report of Pimco outlined the recommendations for sustainable reporting, which includes prioritising goals most relevant to their business, setting targets, and aligning business strategies with the SDGs.