AIIB Inaugural Sustainability Report: A Commitment to Sustainable Development Goals

Executive Summary

The Asian Infrastructure Investment Bank (AIIB) has released its inaugural Sustainability Report, marking a significant step in its commitment to transparency and alignment with the Sustainable Development Goals (SDGs). The report voluntarily applies the International Sustainability Standards Board (ISSB) disclosure requirements to detail the financial impacts of climate-related risks and opportunities, directly supporting **SDG 13 (Climate Action)** and **SDG 17 (Partnerships for the Goals)**.

Integration of Climate Action (SDG 13) and Sustainable Infrastructure (SDG 9)

The 2024 report outlines a comprehensive framework for integrating climate considerations across the Bank’s operations, which is fundamental to achieving its mission of financing “Infrastructure for Tomorrow.” This integration is critical for promoting resilient infrastructure and sustainable industrialization as outlined in **SDG 9**.

• Governance and Strategy: Climate considerations are embedded within AIIB’s governance, strategic planning, and risk management frameworks.
• Risk Assessment: A key finding of the report is that climate-related financial risks do not materially affect AIIB at present, demonstrating robust risk management in pursuit of sustainable development.
• Support for Low-Carbon Transition: The report details how AIIB manages its climate risk exposure while actively supporting its members’ transition to low-carbon economies, contributing to **SDG 7 (Affordable and Clean Energy)** and **SDG 11 (Sustainable Cities and Communities)**.

Key Disclosures and Contributions to Global Goals

The report introduces several key disclosures that enhance transparency and accountability, reinforcing the principles of **SDG 17** by providing clear, comparable data for stakeholders.

1. Adoption of Global Standards: By applying ISSB standards, AIIB contributes to a globally consistent baseline for sustainability disclosures, following a joint commitment made by multilateral development banks at COP28.
2. Financed Emissions Disclosure: For the first time, the report includes voluntary disclosures on the bank’s financed emissions, offering critical data for tracking progress under **SDG 13**.
3. Strengthening Stakeholder Trust: According to AIIB Chief Financial Officer Andrew Cross, the use of credible sustainability data helps strengthen stakeholder trust, reduce perceived risk, and support long-term value creation, which is essential for mobilizing capital for sustainable economic development under **SDG 8 (Decent Work and Economic Growth)**.

Conclusion: Advancing Sustainable Development Through Strategic Partnerships

The release of the Sustainability Report alongside mid-year financial results underscores AIIB’s dedication to integrating sustainability into its core financial operations. As a multilateral development bank with 110 approved members, AIIB’s adoption of leading disclosure standards sets an important precedent. This action reinforces its commitment to collaborating with partners to finance infrastructure that fosters sustainable economic development and enhances regional connectivity, thereby making a direct and measurable contribution to the global Sustainable Development Goals.

Analysis of SDGs in the AIIB Sustainability Report Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article highlights issues and actions by the Asian Infrastructure Investment Bank (AIIB) that are directly connected to several Sustainable Development Goals. Based on the focus on sustainable infrastructure, climate action, economic development, and partnerships, the following SDGs are addressed:

• SDG 9: Industry, Innovation and Infrastructure
• SDG 13: Climate Action
• SDG 17: Partnerships for the Goals
• SDG 8: Decent Work and Economic Growth

2. What specific targets under those SDGs can be identified based on the article’s content?

The article’s content points to several specific targets within the identified SDGs:

1. Under SDG 9 (Industry, Innovation and Infrastructure):
   • Target 9.1: “Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.”
     • Explanation: The article explicitly states AIIB’s mission is “financing ‘infrastructure for tomorrow,’ with sustainability at its core” and investing in infrastructure to “foster sustainable economic development and enhance regional connectivity.” This directly aligns with the goal of developing sustainable infrastructure.
   • Target 9.a: “Facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial, technological and technical support to African countries, least developed countries, landlocked developing countries and small island developing States.”
     • Explanation: As a “multilateral development bank” with 110 members, AIIB’s function is to “mobilize capital and invest in infrastructure” in its member countries, many of which are developing nations. This represents the enhanced financial support mentioned in the target.
2. Under SDG 13 (Climate Action):
   • Target 13.2: “Integrate climate change measures into national policies, strategies and planning.”
     • Explanation: The article notes that AIIB’s report outlines how “climate considerations are integrated across AIIB’s governance, strategy and risk frameworks.” By adopting these standards, AIIB influences the projects and planning of its partners and member countries, promoting the integration of climate measures.
   • Target 13.a: “Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possible.”
     • Explanation: AIIB, as a multilateral development bank capitalized at USD100 billion, contributes to this global financial mobilization. Its support for members’ “transitions to a low-carbon economy” is a direct contribution to financing climate mitigation actions.
3. Under SDG 17 (Partnerships for the Goals):
   • Target 17.16: “Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries.”
     • Explanation: The article highlights that AIIB is a “multilateral development bank” that “collaborates with partners.” It also refers to a “joint commitment made by multilateral development banks at COP28,” which exemplifies a global partnership to advance sustainability disclosures and goals.
4. Under SDG 8 (Decent Work and Economic Growth):
   • Target 8.1: “Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries.”
     • Explanation: The article states that AIIB invests in infrastructure and other sectors to “foster sustainable economic development.” Infrastructure investment is a primary driver of economic growth, directly contributing to this target in the countries where AIIB operates.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions one explicit indicator and implies others that can be used to measure progress:

• Explicitly Mentioned Indicator:
  • Financed Emissions: The article states that the report “includes voluntary disclosures on the bank’s financed emissions for the first time.” This is a direct, quantifiable indicator used to measure the climate impact of a financial institution’s portfolio, aligning with the objectives of SDG 13. It is a key metric for tracking progress towards a low-carbon transition.
• Implied Indicators:
  • Amount of Capital Mobilized for Sustainable Infrastructure: The article mentions AIIB is “capitalized at USD100 billion” and its purpose is to “mobilize capital and invest in infrastructure.” The total value of investments directed towards sustainable and resilient projects serves as a clear indicator for Target 9.a (specifically Indicator 9.a.1: Total official international support to infrastructure).
  • Adoption of Sustainability Reporting Standards: The article’s central theme is AIIB’s adoption of the “International Sustainability Standards Board (ISSB) disclosure requirements.” The adoption and application of such global standards by a major institution is an indicator of progress in transparency and accountability, relevant to Target 17.16, which focuses on sharing knowledge and expertise.

4. Table of SDGs, Targets, and Indicators

Source: aiib.org