The Role of Public Development Banks & Institutions in the Implementation of the United Nations’ Agenda 2030: A Survey in Europe

The 17 Sustainable Development Goals (SDGs or Goals) were introduced by the United Nations as a blueprint to achieve a better and more sustainable future for all. Financial systems play a key role in this transition by providing funding for economic activities and reorienting capital flows towards a more sustainable economy and many private sector players have been adopting the SDGs as a guide for their sustainability programmes. In this context, Public Development Banks and Institutions (PDBIs) - entities initiated by governments at regional, national and multinational level to proactively pursue public policy objectives – may have specific mandates to provide and/or help mobilise financial support for additional investments with social and environmental objectives that the market fails to finance. Therefore, these players are by their nature called to action and to contribute to the SDGs. This paper offers a first attempt to track the sustainability performance of PDBIs in Europe where, for several reasons, we are witnessing an enhanced public intervention in the economy, and PDBIs’ contribution to the alignment of EU Member States to the SDGs. By making use of the Institutional Theory, the results of this analysis show an overview of the state of play on SDGs’ implementation among PDBIs in Europe; findings have theoretical and practical implications both for PDBIs in defining their strategy to carry out these goals, and for European policymakers that assess the process and aim to promote achievement of the SDGs across Europe. Findings of this study show that PDBIs in Europe are well aligned with the European policymakers’ goals and aim to contribute to the EU climate objectives.