Sovereign Wealth Funds (SWFs) hold total assets under management worth USD 7.5 trillion. Their potential role financing and promoting green investments and the Sustainable Development Goals (SDGs) is undeniable yet scarcely explored. The recent and significant growth of real assets in SWFs’ portfolios, have increased in-house capabilities and aligned their portfolios to long-term investment horizons, providing positive signs of the involvement of SWFs in green investments in the near future.
This working paper commissioned by UN Environment seeks to understand the particular nature of SWFs and their investment strategies. It provides evidence of the potential role SWFs may play in supporting the SDGs, examines the best cases of SWF investment strategies supporting the SDGs and sets out guidelines for SWFs to successfully implement strategies to achieve the SDGs.