Climate Week: Promoting Economic Growth, Resilient Infrastructure, Inclusive Communities, and Strong Institutions

Welcome to the fourth edition of this Climate Week series! The US finance sector has a huge chance to step up and contribute to goals like decent work, economic growth, peace, justice, and building solid infrastructure. Today we dive into how the industry is aligning with the SDGs, particularly when it comes to pushing for economic stability, sparking innovation, and ensuring that communities can grow sustainably.

Making sure these goals line up with how the financial world operates is key—not just for making our economy stronger, but also for making sure social equity and environmental sustainability are front and centre. As financial institutions start to adopt practices that support these goals, they can drive serious change while cutting the risks that come with economic and social instability.

In this piece, we’ll explore the progress the finance industry has made, along with the challenges still in the way, all while focusing on the power of sustainable finance and innovation. Ultimately, this conversation is all about why it’s necessary to weave ethical practices and sustainable strategies into the financial sector. That’s how we’re going to make real change and build a better future for everyone.

SDG 8: Decent Work and Economic Growth | SDG 16: Peace, Justice, and Strong Institutions

SDG 8: Decent Work and Economic Growth

Job Creation: The sector directly employs millions of people and indirectly supports countless more jobs through its lending activities. However, there are concerns about the quality of these jobs, particularly in terms of job security and wages.

Financial Inclusion: US banks have made strides in promoting financial inclusion, but challenges remain, especially for low-income and underserved communities. Initiatives like affordable lending and financial education are essential for ensuring everyone has access to financial services.

Sustainable Finance: There's a growing focus on sustainable finance in the US, with banks and other financial institutions investing in environmentally friendly and socially responsible projects. This can contribute to both economic growth and environmental sustainability.

SDG 16: Peace, Justice, and Strong Institutions

Financial Stability: The US has a robust financial regulatory framework designed to maintain stability and prevent crises. However, the sector faces ongoing challenges, such as cybersecurity threats and the potential for market manipulation.

Corruption and Financial Crime: The US has strict laws against corruption and financial crime, but these challenges persist. Financial institutions play a crucial role in preventing and detecting illicit activities.

Rule of Law: A strong rule of law is essential for a functioning financial system. The US legal system provides a framework for enforcing contracts, resolving disputes, and protecting investor rights. However, there are concerns about access to justice, particularly for marginalized communities.

• BlackRock Global Impact Funds: BlackRock : By investing in companies that create jobs and foster economic growth, particularly in underserved communities, support financial inclusion by providing access to financial services for marginalized populations, and promote innovation and infrastructure development, leading to new job opportunities and economic advancement. As well as investing in companies that uphold strong governance practices and ethical standards, support initiatives that enhance transparency and accountability in business operations, and promote access to justice by working towards legal and institutional reforms.

To further contribute to SDG 8 and SDG 16 US finance and banking firms should focus on the following areas:

Strengthening Impact Investing and ESG Integration: Firms can develop innovative impact investment products and deepen the integration of environmental, social, and governance factors into their investment decision-making processes. This will help to ensure that their investments contribute to positive social and environmental outcomes.

Prioritizing Financial Inclusion and Community Development: Expanding access to affordable financial services for low-income and underserved communities is crucial. Additionally, firms can support community development initiatives that promote economic growth, job creation, and social equity in marginalized areas.

Promoting Sustainable Finance and Green Investing: Increasing investments in sustainable projects and developing green financial products can help to drive the transition to a low-carbon economy. This will contribute to both economic growth and environmental sustainability.

Enhancing Corporate Governance and Ethical Practices: Implementing robust governance standards and combating corruption and financial crime are essential for building trust and ensuring accountability. Firms should also foster a culture of ethical business practices that promotes integrity and respect for all stakeholders.

SDG 9: Industry, Innovation, and Infrastructure | SDG 11: Sustainable Cities and Communities

A Synergistic Approach

SDG 9: Industry, Innovation, and Infrastructure and SDG 11: Sustainable Cities and Communities are closely intertwined. Both goals are essential for achieving sustainable economic development and improving the quality of life for all.

Infrastructure is a key component of both goals. Investing in sustainable infrastructure, such as transportation, energy, and telecommunications, is crucial for promoting economic growth, creating jobs, and building resilient cities.

Innovation is another critical factor. By investing in research and development, the financial sector can support the development of new technologies that can improve the efficiency and sustainability of urban infrastructure. For example, advancements in renewable energy, smart transportation systems, and sustainable building materials can contribute to more sustainable cities.

Inclusivity is also essential, by ensuring that infrastructure investments and innovation benefits are distributed equitably we can promote social justice and reduce inequality.

Learn about the latest examples:

Brookfield Infrastructure Income Fund : is a closed-end investment fund managed by Brookfield Oaktree Wealth Solutions. The fund's primary objective is to generate total returns through capital appreciation and income by investing in high-quality private infrastructure equity and debt investments. The Infrastructure Super Cycle ; Infrastructure Investing

SDG 9

• Infrastructure Investment: The fund directly invests in essential infrastructure assets, such as energy, transportation, and communication networks. These investments contribute to the development of sustainable industries and promote economic growth.
• Innovation: By investing in infrastructure projects, the fund can support innovation in sectors such as renewable energy and smart transportation.
• Job Creation: Infrastructure projects often create jobs and stimulate economic activity in local communities.

SDG 11

• Sustainable Cities: The fund's investments in infrastructure can contribute to the development of sustainable cities. For example, investments in renewable energy and public transportation can help reduce pollution and improve the quality of life for urban residents.
• Resilience: Infrastructure investments can help cities become more resilient to climate change and other challenges. For instance, investments in flood protection or water management systems can mitigate the impacts of extreme weather events.
• Inclusive Development: The fund can contribute to inclusive urban development by ensuring that infrastructure projects benefit a wide range of communities and address the needs of marginalized populations.

Bloomberg Philanthropies American Sustainable Cities : is a three-year initiative launched by Bloomberg Philanthropies in 2024 to help 25 US cities build low-carbon, resilient, and economically thriving communities. The initiative provides these cities with expert teams, policy and technical assistance, and funding support to develop and implement innovative climate solutions. By focusing on equity and ensuring that climate action benefits all communities, Bloomberg American Sustainable Cities seeks to create a more sustainable future for cities across the United States.

Investing in sustainable infrastructure—whether in transportation, energy, or communication— is essential for promoting economic growth and building resilient, thriving cities. By supporting innovation in renewable energy and smart technologies, the financial sector can unlock the potential for more sustainable urban development .

Take the Brookfield Asset Management Infrastructure Income Fund—their focus on key infrastructure projects shows how these investments can drive growth, support innovation in clean tech, and create jobs for local communities. And with initiatives like Bloomberg Philanthropies American Sustainable Cities, we’re seeing how climate action can go hand in hand with building more resilient, low-carbon cities that benefit everyone.

But let’s not forget, while we’re building these sustainable, forward-thinking cities, inclusivity has to be at the core. Making sure that infrastructure investments are benefiting all communities, especially those often left behind, is crucial. The real win comes when every part of a city can thrive—not just the wealthier areas.