The COVID-19 crisis has highlighted the need for businesses and investors to adjust to a world of increasing uncertainty or mounting risks. To be viable, businesses can no longer focus only on short-term financial returns; they must anticipate and prepare for future risks, including growing risks from climate change and unsustainable practices. For investors, their portfolio’s financial return ultimately depends on a sustainable and stable economy. Companies must adapt their business model to reflect growing risks and uncertainties, and help build a sustainable world; doing so is necessary to preserve their financial performance in the long run. Investors have the financial resources to push companies to change, but lack the necessary tools given limited reliable data on non-financial issues. A common definition of Sustainable Development Investing (SDI) would be a first step in ensuring that investments presented as “sustainable” make a meaningful contribution to the global goals.

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