Enhancing Efficiency in Sustainable Markets

Sustainable investments—although still working outside a clearly defined framework—include investments aiming at achieving a positive impact on environment and society. Several different investments strategies (e.g., negative screening, positive screening, best in class) and many dominant purposes are inspiring sustainable investing. Addressing the funding gap connected to the financing of sustainable development goals (SGDs) included in the United Nations Agenda 2030 (United Nations 2015) represents one of the priorities for sustainable investors over recent years. The Agenda 2030 includes 17 SDGs—including no poverty, zero hunger, quality education, reduced inequalities, and climate actions—and 230 precise targets that need to be financed by public and private investors. Similarly, the Climate Agreement signed by 195 countries pushed funding needs connected to climate issues to the top of the agenda for the public (and private) sector. Sustainable investments represent a growing, worldwide phenomenon: recent data from Global Sustainable Investment Alliance (GSIA 2019) estimates the market in USD 30.7 trillion, with a growth of 34% since 2016. Public investments, however, are still insufficient to cover the funding needs of sustainable sectors. In such a panorama, public partnerships (PPP) are an alternative strategy to support the transition toward a more sustainable and inclusive economy. Similarly, public commitment— expressed through policy incentives—is particularly desirable. In this perspective, it is good to know that young generations are aiming at a positive impact with their investments: recent research by Schroders (2018) high- lighted that 52% of younger people invest in sustainability compared to 28% of older generations. Despite the interest that sustainable investments are gaining with governors, investors, and practitioners from many sectors and geographical areas, several related issues remain to be addressed.