SDGs and ESG Management｜IT Passport Exam Prep｜17 Goals and ESG Investment

What are the SDGs?

SDGs stands for Sustainable Development Goals, adopted by the United Nations in 2015. They consist of 17 goals and 169 targets to be achieved by 2030. The core principle is "leave no one behind."

The 17 SDGs (Selected)

Some of the 17 SDGs include: No Poverty (Goal 1), Zero Hunger (Goal 2), Good Health and Well-being (Goal 3), Quality Education (Goal 4), Gender Equality (Goal 5), Affordable and Clean Energy (Goal 7), Sustainable Cities and Communities (Goal 11), Climate Action (Goal 13), and Partnerships for the Goals (Goal 17). The exam may test your knowledge of these goal numbers and their corresponding content.

What is ESG Management?

ESG management is an approach that evaluates corporate management from three perspectives: Environment, Social, and Governance. When investors evaluate companies based on these three perspectives, it is called ESG investment. While the SDGs are international goals, ESG focuses on corporate activities, and a company's ESG efforts contribute to achieving the SDGs.

Details of Each Perspective

From the Environmental (E) perspective, companies are expected to reduce CO2 emissions, utilize renewable energy, and cut waste. From the Social (S) perspective, improving working conditions, respecting human rights, promoting diversity, and contributing to local communities are important. From the Governance (G) perspective, board transparency, internal controls, and strict compliance are evaluated.

Carbon Neutrality

Carbon neutrality is the concept of reducing net greenhouse gas emissions to zero by balancing emissions with absorption. Japan declared its goal to achieve this by 2050 in 2020. Additionally, the market for emissions trading (carbon credits) is expanding, with active trading between companies.

Sustainability-Related Terms

Key sustainability-related terms include CSR (Corporate Social Responsibility), which refers to a company's social responsibility and is a precursor concept to the SDGs and ESG. CSV (Creating Shared Value) is a management strategy that simultaneously generates social value and corporate value. A circular economy is an economic model that avoids wasting resources.

Key Points for the IT Passport Exam

In the IT Passport exam, the adoption year of the SDGs (2015) and the number of goals (17), the meaning of the three ESG elements, the relationship between ESG and the SDGs, and the concept of carbon neutrality are frequently tested. Focus on organizing these keywords.

Typical Past Exam Question Patterns

• "Which of the following is not one of the three ESG elements?" type
• "Which organization adopted the SDGs?" type → United Nations

Related Terms

• BCP and Risk Management (What is BCP?)
• DX Promotion and the SDGs (What is DX?)
• Business Models (List of Major Business Models)

Study Tips

As a study tip, remember the SDGs by their 17 goals, the UN, and 2030, and distinguish ESG by its E/S/G components and investment indicators. Understand the relationship between the SDGs and ESG with the image of an arrow: "A company's ESG efforts lead to achieving the SDGs." The one-line keyword for carbon neutrality is "net zero."

Summary

If you grasp the relationship between the SDGs and ESG, each of the three elements, and carbon neutrality, you can score points on related questions. For comprehensive practice on the Strategy domain, see the Strategy Summary; for a full-length practice test, use the Mock Exam.