COVID-19 and its socio-economic impact significantly increased uncertainty for investment in Sustainable Development Goals (SDGs) related activities. International SDG-relevant investment flows to developing and transition economies fell by one-third in 2020 when the pandemic first struck.  As an effect of COVID-19, the annual SDG-financing gap faced by developing countries increased to USD 4.2 trillion.  The pandemic highlighted the unequal distribution of financial resources, stressing existing vulnerabilities and fragilities and hindering economies’ ability to recover sustainably.

In spite of this, the crisis also opened a window of opportunity for all stakeholders to rethink development priorities and paradigms. Investors, with their ability to innovate solutions and adapt to changing circumstances and needs, are key players in accelerating financing for the SDGs.

This report distills key results from a Rapid Impact Assessment Survey on the impact of COVID-19 on investors’ portfolios and their future investment strategies, including identifying new sustainable investment opportunities during the recovery. In total, 113 institutions were contacted and surveyed either directly or indirectly. While the survey and accompanying interviews were conducted between the end of 2020 and the beginning of 2021, many of the insights of the report remain relevant today. A better understanding of how investors respond to crises, including their needs and requests for support, is more important than ever, as it can help develop better strategies to tap into capital markets for SDG attainment.