SDG Industry Matrix

The matrices are a series of publications that provide industry-specific practical examples and ideas for action, for each Sustainable Development Goal. They profile opportunities that companies can take advantage of to create value for shareholders and for society. It has been developed by KPMG International and the UN Global Compact. [13]
They have provided industry matrices that cover the following 6 key industries :
For each industry, the SDG Industry Matrix outlines the key SDGs that are relevant to that industry and provides examples of how companies can contribute to those goals.

A Snapshot of the SDG Industry Matrix

Climate Action Opportunities [14]

Industry-specific ideas for climate action can be observed by focusing on SDGs 7, 12 and 13. (Note: All 17 SDGs are inextricably linked with climate action). The following opportunities are some of the significant ones linked with climate action.
It profiles opportunities to create ‘shared value’ which in the context of the SDGs represents the coming together of market potential, societal demands and policy action to create a more sustainable and inclusive path to economic growth, prosperity and well-being.
The industry-specific opportunities build on the United Nations Global Compact’s three environmental principles for business:
- 7 - Support a precautionary approach to environmental challenges; 8 - Undertake initiatives to promote greater environmental responsibility; and 9 - Encourage the development and diffusion of environmentally friendly technologies.
Certain actions are incumbent on all companies - regardless of their industry – including reducing carbon emissions, increasing resilience to climate change including extreme climatic events, and reporting transparently against clear ambitious targets.
Financial Services
- Industry Specific Opportunities
  - SDG 7
    - Developing a broad portfolio of investment options including carbon markets
    - Developing better renewable energy pricing models
    - Underwriting renewable energy projects
    - Evaluating the risk of ‘stranded assets’ and considering divestment from the fossil fuel sector
  - SDG 12
    - Developing new pricing models and innovative products which incentivize sustainable actions
    - Being an active steward of investments in portfolio companies to influence more climate-sensitive and climate-resilient business strategies.
  - SDG 13
    - Raise finance for climate risk mitigation, climate resilience and climate adaptation through debt and equity instruments (Including climate and green bonds)
    - Increasing coverage of catastrophe insurance schemes
    - Integrating climate risks in financial undertakings
    - Measure and publicly disclose the carbon footprint of investment portfolios on an annual basis [15]
    - Measuring, reducing and reporting climate exposure against set targets
- Industry Specific Examples [15]
  - SDG 7
    - Globally Rabobank is among the top 10 providers of finance for renewable energy, particularly financing large-scale offshore wind farms (currently in the Netherlands, Germany, the United Kingdom, Ireland, Scandinavia, France, Belgium, the United States, India, Brazil and Chile). The bank works closely with local initiators, construction companies and financial partners such as pension funds and insurers, regularly leading consortiums in which various banks participate. Rabobank structures and builds financial solutions that enable the parties involved to finance projects and subsequently sell the projects to institutional investors, such as pension funds. These institutional investors seek acceptable returns with limited risks and often want to participate when the projects are operational.
    - In 2014 Swedfund increased its financial commitment to Interact Climate Change Facility (ICCF) by investing a further €5 million in climate change projects in growth markets. ICCF finances projects in renewable energy and energy efficiency in existing power generation plants. By demonstrating the economic viability of projects, ICCF also aims to act as a catalyst and attract additional financing for the development of sustainable energy in emerging markets. Examples of projects financed by ICCF include solar energy in India, energy efficiency in existing power generation in Ivory Coast and wind power in India and Kenya.
  - SDG 12
    - The ‘Aviva Drive’ smartphone app rates driver behavior and provides discounts to safer, more fuel-efficient drivers, increasing access to insurance and encouraging responsible driving.
    - In 2010 Daegu Bank, DGB Financial Group’s main subsidiary, opened an internet-based, environmentally-friendly branch in Korea. Its branch only offers green financial products covering deposits, loans, funds and credit card products, and donates a certain percentage of the profits to support regional environmental preservation activities.
  - SDG 13
    - YES BANK issued India’s first Green Infrastructure Bonds to raise INR 10,000 million (US$160 million) to exclusively fund its renewable energy commitments, thus opening the door for this instrument in India. The INR 5,000 million issue, with a greenshoe option, was oversubscribed demonstrating strong demand for these instruments in India. In August 2015, YES BANK raised another INR 3,150 million (US$50 million) from the International Finance Corporation (IFC) through its Masala Bonds launched on the London Stock Exchange, which were the IFC’s first investments in an emerging market’s green bonds.
    - In 2013, Zurich Insurance Group launched a global flood resilience program to improve community resilience to floods by bringing together leading humanitarian organizations (the International Federation of the Red Cross and Red Crescent Societies and Practical Action), academia (IIASA & Wharton School) and the private sector (Zurich). By using complementary skills and expertise the program is finding new ways to enhance resilience in both the developed and developing world.

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