Poor disclosure puts UN sustainability goals at risk, says Pimco

UN goals to address global poverty, hunger and sustainability by 2030 could be at risk due to poor target setting and disclosure, according to the world’s biggest bond investor.

US-based Pimco’s analysis examined the corporate disclosures of 246 firms to study to what extent the reports referenced the UN’s Sustainable Development Goals and in how much detail.

SDG reporting allows investors to make informed decisions and back ESG (environment, social, governance) investment strategies.

However, despite an encouraging 63 per cent of issuers referencing the SDGs in some form, just 12 per cent of firms reference the SDGs quantitative targets for meeting goals, the research found, “indicating that many are finding it challenging to translate well-intentioned support into action”.

"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," Pimco said in the research paper.

“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 Pimco report outlined recommendations for sustainable reporting, including aligning business strategies with the SDGs, prioritising goals most relevant to their business and setting targets.