Quality Education & The Social Impact Bond
By: Paul Equilibriumprorisk
Tags: Sdgs, Esg, Inequality, Social Change, Education

Sustainable Development Goal 4 is Quality Education — ensure inclusive and equitable quality education, and lifelong learning opportunities for all. According to the UN, progress towards this goal was already slow prior to the COVID-19 crisis. School closures kept 90% of all children out of school as a result of pandemic control actions, reversing years of progress in education. The forecast then was that a staggering 200 million children will still be out of school by 2030. The UN goes on to report that inequalities have been amplified by the pandemic. In the poorest countries, the school completion rate is 34% compared with 79% in the richest countries. Remote learning remains out of reach for at least 500 million children. And, only 65% of primary schools have basic hand-washing facilities, a factor key to controlling the virus.

The targets identified for SDG4 Quality Education, which have been agreed at the UN level, are:

To make sure, by 2030, all children complete free, equitable and quality primary and secondary education leading to relevant and effective learning outcomes

By 2030, to ensure that all children have access to quality early childhood development so they are ready for primary school

To ensure all men and women have equal access to affordable further and higher educational options, including university

Substantially increase technical and vocational skills for youth and adults to enable decent jobs and entrepreneurship by 2030

Eliminate gender disparities in education, and ensure equal access to education for the vulnerable, including those with disabilities, indigenous peoples, and children living in vulnerable situations

Make sure a substantial proportion of the global adult population are literate and numerate

Ensure all learners leave education with knowledge and skills to promote sustainable development

Build and upgrade education facilities so they are safe and effective learning environments for all

Expand the number of scholarships available to developing nations

Make sure there is a substantial increase in the number of qualified teachers around the world.

ESG Investing

Just how much potential is there for investment in this arena? According to the Centre for Public Impact, a BCG Foundation, the concept of the social impact bond was developed by the UK’s Young Foundation. Its aims are to combine philanthropic giving with a financial return to meet a social need. Real world examples show how investment in quality education can make a real difference. They also highlight actions that could be made in this field. For example, in 2019 the global energy leader Iberdrola Group made investments of Euros 8.8m in this SDG. In an earlier announcement, they cited the fact that 758 million adults would not be able to read the press release.

There are a number of key ESG actions and solutions that can be implemented to meeting this goal. In addition to making impact investments, and commitments to education through social bonds, organisations can also:

Take care of the workforce — providing them with plenty of CPD/ learning/training possibilities to allow them to continue to learn and grow

Create traineeships / internships that allow students to gain access to a corporate environment

Provide childcare / flexible working to allow parents to make sure their children get a quality education

Deliver innovations and solutions for improved education, or improved access to education

Cross-co-ordinate with government entities and educational institutions to work towards this goal on a national and global level.

Of course, this is by no means an exhaustive list. Metrics for meeting this goal within workplaces include GRI Sustainability Reporting Guidelines 404–1 (average hours of training by gender and employee category). Though there are plenty of other metrics that can be used.

Both through investment in the broader world, and in the workplace, institutions with responsible investing targets can help in major ways in meeting the target of this SDG.