The future of ESGTech: Objective 8


Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. This is an excerpt from Finextra’s The Future of ESGTech 2022 report.

Priority target 8.10: Strengthen the capacity of national financial institutions to encourage and expand universal access to banking, insurance and financial services.

The pandemic has taken its toll on unemployment figures across the world, and while the figures are not complete, the
UN states that global unemployment increased by 33 million in 2020. Raise the unemployment rate from 1.1% to 6.5%. Sadly, women and young people have been hit the hardest, with job losses in 2020 of 5% and 8.7% respectively.

Given these unsatisfactory statistics, it is now more important than ever to expand access to financial tools, products and services so that individuals – especially those in precarious situations – are supported not only in their job search. , but also in their ability to find financial security. . In an increasingly digital world, an important factor in providing this access is the availability of the data infrastructure.

A survey of KPMG and the European Banking Foundation (EBF) found that SDG 8 is the most relevant SDG for their business: “Banks play a major role in communities, promoting the use of savings accounts, conducting education programs financial, increasing financial inclusion for vulnerable clients and promoting entrepreneurship and SME development to contribute to job creation.

the Islamic Development Bank (ISDB) argues that institutions such as the IMF, the World Bank and other multilateral development banks continue to focus on the long-term goals enshrined in the SDGs, including the types of infrastructure investments that can stimulate economic growth. Quoting Kristalina Georgieva, Managing Director of the International Monetary Fund, the
ISDB The report noted that “progress in these areas will depend to a large extent on domestic revenue mobilization as well as external public and private financing. The availability and access to data infrastructure is fundamental in pushing towards decent work and economic growth. According to the World Bank Group 2021 report ‘Data for a better life, ”Numerous studies have shown that broadband infrastructure drives economic growth, increases productivity and employment while enabling digital businesses.

For example, optical fiber submarine cables in Africa have led to the entry of new businesses, increased productivity and increased exports. The use of data-driven services is only becoming more widespread, and poor countries should not be excluded from associated opportunities due to a lack of data infrastructure.

Export opportunities associated with data-based services open up access to new entrants to global trade and would help improve economic growth in countries traditionally without access to global markets.

India’s digital services industry, cited by the World Bank Group report, has created jobs especially for women and in small towns of around one million people or less, which can help fill economic and social inequalities. The increase in India’s services exports has also been associated with per capita income gains and lower urban and rural poverty rates.

A critical factor in tracking progress around specific SDGs is the ability to access and analyze public and private intent data. Data on private intentions – that which is collected by the private sector as part of routine business processes – is of particular value and is used to monitor policy objectives and compare policy priorities.

The World Bank Group report said these initiatives are invaluable because they provide unique and comparable data across countries that is not collected by national governments. In addition, “the data collected and disseminated to promote financial inclusion has been widely recognized by policy makers as essential for reducing poverty and achieving inclusive economic growth”.

The Global Findex database is a clear example of how this data can be used for good. Established in partnership with Gallup Inc surveys, the database is the world’s most comprehensive for data on how adults save, borrow, make payments and manage risk. It has become a “pillar” of efforts and initiatives promoting financial inclusion, and has been used to monitor progress towards universal financial access under SDG8.

As part of its Pledge 2025 initiative, BBVA illustrates how some financial institutions are striving to improve decent work and economic growth in four key policy areas; entrepreneurship, financial inclusion, diversity policies and freedom of assembly. The bank and its various foundations will devote 550 million euros to the financing of social initiatives aimed at promoting inclusive growth in the countries where the bank is present by 2025.

Specifically targeting the needs of SDG 8, the Bank’s Microfinance Foundation (FMBBVA) will launch € 7 billion in micro-loans to support 2.5 million vulnerable entrepreneurs. According to the OECD, FMBBVA is the first private philanthropic organization in Latin America and the second in the world contributing to development.

The bank is also working to tackle social and economic inequalities by allocating around € 115 million to support organizations that focus on social assistance, as well as digital empowerment initiatives in the hope of benefiting over three million people. In addition, the bank provides around 40 million euros to finance non-financial support programs to support social, environmental and vulnerable entrepreneurs.

ACTION FOR 2022: Increase access to financial tools to support individuals in their job search.

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