Responsible Investment and the Role of the Private Sector

The private sector and development finance institutions are increasingly important actors in development and dominant sources of financing for development. While they hold great potential for positive impacts on sustainable development, poverty eradication and the realization of the SDGs, there remain serious concerns around private sector regulation and accountability which have not yet been fully addressed. Responsible investment in the private sector, applying pro-poor policies that prioritise proactive and targeted support for Micro, Small and Medium Enterprises, social protection, access to decent work, promotion of women’s rights and economic opportunities, climate protection, and human rights due diligence in line with the UN Guiding Principles on Business and Human Rights, can be important contribution to sustainable development and thus need to be central to G20 policies. In order to contribute to achieving the SDGs, governments’ engagement with the private sector has to be backed by strong guiding principles and criteria to ensure that the engagement effectively contributes to sustainable development and poverty eradication and reduces inequality within and between countries.

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