SDGs at the half-way point: how DEG customers contribute to the global Sustainable Development Goals

The year 2023 marks the half-way point to the deadline set for implementing the 2030 Agenda and its 17 Sustainable Development Goals (SDGs), which were established in September 2015 and adopted by 193 nations worldwide. The progress review comes at a time of worsening geopolitical conflicts and global crises, which are currently causing headwinds to achieving the goals. Alongside public contributions and funds, the private sector also has an important role to play in reaching the ambitious SDGs.

SDG Summit in New York: mid-term review of 2030 Agenda

The development impacts of private company investments that it has co-financed are a key control instrument for DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH. To this end, the KfW subsidiary records and evaluates how its customers in developing and emerging countries are contributing to the SDGs. “We are convinced that achieving the global Sustainable Development Goals is more important than ever. This applies not only to the creation of skilled jobs, but also to other SDGs, such as building resilient infrastructure, promoting sustainable industrialisation and fostering innovation and gender equality. That’s why we want to make our contribution to achieving these goals,” explained DEG CEO Roland Siller, on the occasion of the current SDG Summit in New York.

According to a current analysis of the portfolio, DEG customers make especially strong contributions to SDG 8 (decent work and economic growth): 93% of companies co-financed by DEG create fair jobs for local people and raise local income. One of these companies is Peruvian vegetable producer Virú, which processes locally grown vegetables and exports its products to over 40 countries. With support from DEG, Virú was able to expand its cultivation areas. The company pays its 12,000 employees and its seasonal workers fair wages while at the same time complying with international standards on health and safety in the workplace. In recent years DEG has provided advice to Virú on its transformation towards more efficient, low-emission and resource-saving production. The company now uses modern drip irrigation systems to reduce water usage and has installed computer-based groundwater level monitoring tools.

Fair jobs and rising local income

The companies financed by DEG also make contributions to further SDGs. For example, 83% of its customers were able to increase the local income they generated – EUR 209 billion in the past year alone – thus helping to combat poverty (SDG 1). Moreover, energy suppliers co-financed by DEG produce around 35 TWh of electricity from renewable sources (SDG 7) every year.

Combining successful operations with SDG contributions

In order to make its customers’ investments more sustainable, DEG combines the financing it provides with a broad range of advisory and support services, as well as promoting internationally recognised environmental, social and corporate governance standards. “There are tangible commercial benefits for companies that use the SDGs as a compass for their activities. After all, this helps to reduce risk, boost business resilience and thus safeguard future viability in precisely those developing countries that have been most hit by the consequences of the climate crisis,” observes Roland Siller.

Development impact as a yardstick - Find out more about how DEG supports sustainable development as defined by the 2030 Agenda:

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