Investing to Save Our Planet
The United Nations 17 Sustainable Development Goals
A blueprint for peace and prosperity for all people and for our planet. This is the objective of The United Nation’s 2030 Agenda for Sustainable Development, adopted by all United Nation Member States in 2015.
At its’ heart are the 17 Sustainable Development Goals (SGDs.) These goals are an ambitious and urgent call to action to ALL countries, as well as to private investors. Their aim? To end poverty and implement strategies to improve health and education, reduce inequality and spur economic growth, while simultaneously tackling climate change and working to preserve the planet’s oceans and forests.
Lofty goals you may say. Yet scientists agree that meeting them is paramount to ensuring the continuation of life on Earth for future generations.
“There is no ‘Plan B’ because we do not have a ‘Planet B.’ We have to work and galvanize our action.” UN Secretary-General Ban Ki-moon
The 17 GOALS
The UN asks companies to commit to the following 17 goals and use them in their business development:
1. No Poverty
2. Zero Hunger
3. Good Health and Well Being
4. Quality Education
5. Gender Equality
6. Clean Water and Sanitation
7. Affordable and Clean Energy
8. Decent Work and Economic Growth
9. Industry, Innovation and Infrastructure
10. Reduced Inequalities
11. Sustainable Cities and Communities
12. Responsible Consumption and Production
13. Climate Action
14. Life Below Water
15. Life On Land
16. Peace, Justice and Strong Institutions
17. Partnerships for the Goals
HOW DID WE GET HERE
At CAIM we are long time advocates of socially responsible investing. For over 14 years, and since first publishing “Investing with Heart” in 2007, we have been strong proponents of working with companies committed to Environmental, Social and Governance (ESG) principles.
In 2019 CAIM was a proud signatory to The United Nations Principles for Responsible Investing (PRI) and in 2020 Morningstar awarded CAIM a 4 Globes rating for our sustainability acumen.
Which brings us to the UN’s clarion call for global partnerships to usher in a better world for all people.
The UN’s 17 goals have emerged as a motivating factor for US investors interested in sustainability. They also provide a way to understand and measure investors’ real world impact. SRI Investing
HOW CAIM INVESTS TO ACHIEVE UN SUSTAINABLE DEVELOPMENT GOALS
When it comes to investing while adhering to ESG principles, there are two sides to the equation.
A company may present a less than ideal risk score but be doing good things in the world. Conversely, a company may be successfully managing risk but not so much in terms of helping to change the world.
CAIM hits the mark when it comes to UN SGD Goal #5 i.e. Gender Equality: First of all, CAIM is 100% woman owned. Within CAIM holdings, on average, women represent 31% of the board composition versus an average of 20% for the SP 500. Further, all of our companies have women on the board, while the range of women composition is 20% - 55% for our portfolio holdings.
Women on boards offer financial companies and their clients a wealth of advantages. Because let's face it, women think differently than men. And that's a good thing. Adhering to the same old demographics only leads to more of the same. Same outlooks, same opinions. Which, in term, means no debate and no change.
Three CAIM investments that also successfully incorporate SGD issues are Proctor & Gamble, CVS and McDonald’s.
Under the banner of Goal # 6: Clean Water and Sanitation,
Proctor & Gamble provides a water filter called Pure and for every one they sell they donate towards providing clean water and sanitation around the globe.
Adhering to Goal # 3: Good Health and Well Being, CVS is focused on developing health hubs inside their stores nationwide. This allows people without access to healthcare or expensive doctors to receive affordable healthcare.
McDonald’s meets a number of the 17 SGD UN goals and with over 38,000 locations worldwide is uniquely positioned to give back to the communities they serve. The company donate millions of pounds of food from their supply chain every year, and hot meals from their restaurants to communities in times of need and crisis. They also support the Ronald McDonald House Charities® (RMHC®), which enables families to stay together near world-class care facilities when a child is diagnosed with life-threatening illness. McDonalds.com