Significant investment is required to reach the Sustainable Development Goals (SDGs) by 2030. The Organization for Economic Co-operation and Development (OECD) estimates $2.5 trillion in financing needs in developing countries to achieve the SDGs, with an additional projected shortfall of $1.7 trillion as a result of COVID-19. Aligning just 1.1 percent of global finance with the SDGs could fill that gap. While the need is great, the opportunities are also significant. IFC estimates over $23 trillion in investment opportunities in green and climate-related sectors and activities than can help achieve national goals aligned with the Paris Agreement and accelerate the global transition to a low-carbon economy. Most of this capital will come from the private sector, including banks, institutional investors, and capital markets.

This report captures a significant increase in collective efforts between regulators and industry across all parts of the financial sector, and at regional and global level, to advance sustainable finance. This has emerged as an essential strategy to harmonize definitions, disclosure requirements, and good practice expectations for managing sustainability risks and opportunities in all financial sector activities.