Research & Insights
Business Fights Poverty: An Agenda to Address Inequality in Sustainable Finance Decision-Making
By Marcos Neto, Director, UNDP's Sustainable Finance Hub and Delilah Rotenberg, Executive Director, Predistribution Initiative (PDI)
Rising inequalities both between and within countries are fuDiversified investors who sit at the top of the “capital markets value chain” – like pension funds, endowments, and sovereign wealth funds – have an incentive to reduce socio-economic inequality. Their portfolios are so broad across geographies, industries, and asset classes that their financial success is dependent on the health of the economy.
Rising inequalities both between and within countries are fueling polarization and protectionist pressures, hampering social cohesion and political stability. Leading economists are calling for society to combat inequality, demanding better measurement and ambitious targets. Businesses and investors have significant roles to play. The private sector, through various practices, can contribute to inequalities, alleviate inequalities, and also face risks posed by inequalities.