Topic outline

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  Why does it matter?

  Why does it matter?

  • The UN has 17 Sustainable Development Goals (SDGs). This section is to help actuaries have an appreciation of SDG 9 Industry, Innovation, Infrastructure, part of the broader UN SDG framework. This should enable individuals working across a broad range of mainstream actuarial roles to join the sustainability conversation in a more informed way. 

    Sustained investment in infrastructure and innovation are crucial drivers of economic growth and development. With over half of the world population now living in cities, mass transport and renewable energy are becoming ever more important, as are the growth of new industries and information and communication technologies. 

    Technological progress is also key to finding lasting solutions to both economic and environmental challenges, such as providing new jobs that support the transition away from carbon-intensive industries and promoting energy efficiency. Promoting sustainable industries, and investing in scientific research and innovation, are all important ways to facilitate sustainable development. 

    As of 2025, the UN International Telecommunication Union (ITU), estimate that 2.6 billion people have never accessed the Internet, the vast majority of whom live within countries categorised as “developing”, by UN. Bridging this digital divide is crucial to ensure equal access to information and knowledge, and consequently foster innovation and entrepreneurship. 

    The UN infographic and summary information provides further information on associated targets and progress against SDG 9.

• Supporting initiatives

  Supporting initiatives

  • 1. United Nations (UN) Secretary General’s has put forward a strategy on new technologies, which aims to develop and use new technologies to accelerate achievement of the 2030 Sustainable Development Agenda. Four commitments are made to improve UN internal capacity for new technology, increase advocacy and dialogue, support cooperation frameworks and enhance member state support. 
    2. The United Nations Industrial Development Organisation have been mandated to drive SDG 9, by supporting 173 member states through technical cooperation, research, policy advice and enabling knowledge and technology transfer. 
    3. International Telecommunication Union (ITU) Broadband Commission, through partnership with UNESCO, are helping to develop practical and sustainable policy recommendations for governments. This includes publishing regular “State of Broadband” reports to track progress against predetermined advocacy targets. 
    4. International Civil Aviation Organisation (ICAO), serve as the global forum of States for international civil aviation. The ICAO develops policies and standards, undertakes compliance audits, performs studies and analyses, aids and builds aviation capacity through many other activities and the cooperation of its Member States and stakeholders.

• Importance for actuarial practice

  Importance for actuarial practice

  • There is a continual need for investment, but public capital provision is often challenged due to the associated risks and slow-moving nature of infrastructure projects, coupled with economic instability and competing priorities. UN Trade and Development (UNCTAD), highlight in their Investment report that downturns in project finance affects sustainable development.

    Private investment in projects and companies that support sustainable infrastructure is essential to reach global sustainability targets. Actuaries sit on boards of trustees for pension firms and provide investment advice to institutional asset managers. Where these clients are considering investment in infrastructure, actuaries are well positioned to advise given their expertise in understanding and quantifying risk, coupled with a duty to act in the public interest. The IFoA infrastructure investment guide provides further information on infrastructure investment and potential SDG considerations.

    Investment in infrastructure offers the potential for diversification benefits to a broader portfolio, alongside expected returns that compensate for an elevated risk profile. This is therefore potentially suitable for many financial institutions that would like to match long-term, real liabilities whilst also providing risk-return profiles that suit investor appetite. Such institutions include pension funds, private banks, insurance companies and sovereign wealth funds.

    Infrastructure projects can have significant positive economic and social impacts when established in emerging markets. The UN Principles for Responsible Investment (UN PRI) state that in order “to support meeting the SDGs, investors must understand the positive and negative outcomes from their investments, as well as how they can shape those outcomes”.

    Infrastructure projects could often be associated with an elevated risk profile, due to complex and potential construction delays and the length of time needed before assets generate cash flow. The Economist Intelligence unit and UN Office for Project Services show that out of $120trn in assets under management by banks and institutional investors globally, infrastructure makes up only about 5%.

    Other driving factors of the elevated risk profile of infrastructure projects often include limited available information and data, a lack of adequate regulation, and associated political instability. This is where actuarial involvement adds meaningful value through modelling and quantifying these risk factors, enabling more informed capital appraisal decisions to be made and improving investor knowledge. This in turn can facilitate additional investment in developing countries and markets, which can then help with progress against other SDGs.

    (Re)insurance also plays a critical role in facilitating infrastructure investment through risk transfer. This is particularly true for new technologies where the associated risks are non-standard and complex. The 2024 African Insurance organization (AIO) report, states that more encouragement of re/insurers to invest in large-scale infrastructure projects is needed for the potential to stabilise economies, reduce dependency on additional debt, and pave the way for sustainable growth.

    Actuaries play a key role in identifying and communicating these risks to enable adequate pricing, reserving and capital allocation for such products.

• Relationships to other goals

  Relationships to other goals

  • SDG 9 has very clear links to many of the other goals, some of which include:

    • SDG 3 (Good Health and Well-Being): Technological developments are acting to improve life expectancy and healthcare, particularly for developing countries.
      
      
    • SDG 8 (Decent Work and Economic Growth): Provide a broad variety of jobs across the product and project lifecycle, supporting innovation and implementation of infrastructure projects and facilitating a Just Transition.
      
      
    • SDG 11 (Sustainable Cities and Communities): Enabling the build-out of sustainable cities through new infrastructure projects, including adaptation to and mitigation of the effects of climate change.
      
      
    • SDG 13 (Climate Action): Innovating to develop new materials and practices that reduce carbon emissions are associated with infrastructure and industry

• Other

  Other

  • For further reading and listening please refer to the following resources:

    Podcasts

    • SDG 9 | Leveraging Immersive Learning & Digital Engagement for the SDGs | Samantha Matthews

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    • SDG 9: Innovating for the future podcast

    Articles

    • Infrastructure, Industrialization and Innovation: Why SDG 9 matters and how we can achieve it

    • How businesses can contribute to hitting SDG 9 targets