The United Nations General Assembly launched the Sustainable Development Goals as part of the 2030 Agenda for Sustainable Development. They are a blueprint to achieve a better and more sustainable future for all.
Responsible finance providers directly contribute towards achieving most of the Goals. They contribute indirectly too: responsible finance providers’ customers – businesses and social enterprises – are creating jobs alongside sustainable economic, social and environmental impact, all enabled by their support from our members.
Uniquely in the financial services sector, all members of Responsible Finance must agree to demonstrate accountability and transparency to stakeholders and target communities. These are some of the ways responsible finance providers contribute to reaching the Sustainable Development Goals:
End poverty in all its forms everywhere
Responsible finance providers have a proven track record in lending to the most deprived parts of the UK. They support pathways out of poverty by giving people access to appropriate financial services. Responsible finance business lenders help disadvantaged microentrepreneurs create opportunities and support job creation. Responsible finance social enterprise lenders do this too, and actively invest in projects with specific social objectives, such as training the long-term unemployed and helping them gain meaningful employment. Personal lending responsible finance providers help to alleviate the effects of poverty by offering an affordable option for smoothing out the effects of fluctuating income and expenditure. They offer individuals an alternative to the exploitative lenders that may be their only other options. Responsible finance home improvement lenders help people to make essential repairs to their homes to make them habitable.
End hunger, achieve food security and improved nutrition and promote sustainable agriculture
Among the world’s richest nations, the UK has some of the highest levels of hunger and deprivation(1). People living in the most deprived areas of the UK have far worse health outcomes than those who live in the most affluent areas. Many people struggle to afford healthy and nutritious food. Responsible finance providers work to distribute economic prosperity to all parts of the UK. They exist to serve the underserved. By working to alleviate the effects of poverty and spread wealth, they help to ensure that everybody has the means available to access nutritious food. Many viable food-related projects could not have started or grown without the support of responsible finance providers.
Ensure healthy lives and promote well-being for all at all ages
The impact of financial exclusion on health and well-being can be devastating. The poorest in society are often excluded from affordable finance and sometimes have to resort to high-interest credit, creating a cycle trapping them in poverty. This can increase mental health issues such as stress and anxiety, harm well-being and connection with others, and lead to substance abuse(2). Personal lending responsible finance providers provide credit at affordable rates on fair terms.
They promote financial wellbeing and literacy and encourage saving. Responsible finance lending to businesses and social enterprises provides an avenue for people to build rewarding careers. Rewarding careers foster thriving communities.
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
Most responsible finance providers offer wrap-around services to their customers. Many responsible finance business and social enterprise lenders offer business mentoring and support, educating micro and social entrepreneurs and helping them innovate. Personal lending responsible finance providers often provide customers with financial capability education, improving the quality of customers’ lives by equipping them with vital money management skills.
Achieve gender equality and empower all women and girls
Responsible finance providers monitor and report on their lending demographics. They offer finance to female individuals and female-led businesses and social enterprises. Research continues to demonstrate that female business owners continue to be underrepresented or disproportionately excluded by traditional finance providers.
Ensure access to affordable, reliable, sustainable and modern energy for all
Several social enterprise responsible finance providers specialise in supporting community energy projects, developing skills and capacity and unlocking wider investment. Hundreds of clean, green energy projects would not exist without finance from them. Responsible finance home improvement lenders provide finance to homeowners to give their homes energy efficiency upgrades. Personal lending responsible finance providers offer advice on home energy bills for their customers.
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
Microfinance is a key enabler of sustainable economic development. Access to finance and financial exclusion continue to be significant barriers to growth and long-term prosperity in local economies across the UK, at the individual, household, and business levels. Responsible finance providers develop skills, confidence and resilience, enable inclusive growth and sustainable job creation, and create work and income which circulates in local economies.
Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation
Access to affordable and appropriate finance is a key component for businesses across industrial sectors when making strategic decisions, and restricted access to finance has implications for developing strong and resilient industrial sectors. Finance gives the people with the ideas the means to innovate and grow. Geographical disparities in the provision of finance mean businesses in some areas of the UK have greater access to financial services than in others, particularly impacting on business confidence and the rate of start-ups in sub-regions. All responsible finance providers support local economic development across the UK, and some act as delivery partners for geographically focused funds.
Reduce inequality within and among countries
The UK has an uneven economic landscape. All responsible finance providers work to reduce inequality across the UK by providing opportunity in the form of finance, mentoring, training and other support to people from the most deprived communities, who are often left out from mainstream sources. This enables them to lift themselves out of poverty thereby helping to create a more equal society.
Make cities and human settlements inclusive, safe, resilient and sustainable
Local funding can develop resilience and help to attract private capital at scale. Responsible finance providers invest in the social fabric of places, helping to transform communities to become inclusive and socially sustainable. Responsible finance social enterprise lenders support social enterprises which are outperforming traditional business in their diversity, inclusiveness, growth and innovation(3).
Ensure sustainable consumption and production patterns
Numerous waste reduction, recycling and sustainable manufacturing projects – run by businesses, charities and social enterprises – have been enabled and developed thanks to business and social enterprise responsible finance providers.
Revitalise the global partnership for sustainable development
Responsible finance providers have a collaborative culture, fostering positive partnerships to implement sustainable development within localities and regions, across the UK, in Europe and worldwide.