“Sustainable Development Goals in agriculture and responsible investment: A comparative study of the Czech Republic and Ukraine”

This paper explores some Sustainable Development Goals (SDGs – 2 and 12) in agri- culture for the Czech Republic and Ukraine. The idea is to find out best practices in implementing SDGs 2 and 12 within the responsible investment framework. For these purposes, benchmarking (comparative analysis) is used. Using data over the period of 2017–2020, a general comparative review of global and national targets of SDGs 2 and 12 in Ukraine and the Czech Republic is provided. The results justify the merely incorporation and compliance of these targets at the national and global levels. The identified problems in achieving SDG 2 and SDG 12 are common for Ukraine and the Czech Republic and relate to unequal access to investment and financial resources. Recommendations and solutions to the most important problems based on the responsible investment instruments are proposed in this paper. The research findings can be useful for regulators (both in agriculture and in the financial market), companies and a wide group of other stakeholders in promoting responsible investment to make more comprehensive progress towards SDG 2 and 12 in Czech Republic and Ukraine by 2030. Scientists also that these targets will be The basis for ensuring progress for SDG 2 and 12, as well as for other is the formation of a sufficient pool of investment resources. The Addis Ababa Summit in 2015 is dedicated to finding mechanisms and investment financing sustainable development


INTRODUCTION
The UN Global Sustainable Development Goals 2 "End hunger, achieve food security and improved nutrition and promote sustainable agriculture" and "12 Ensure sustainable consumption and production patterns" (SDGs) are accelerating targets that contribute to the progress of other goals by 2030. Agriculture is a sector in which these SDGs can have a synergistic effect.
Achieving SDGs 2 and its targets is quite difficult even by 2050, since almost 800 million people in the world are chronically hungry, and 2 billion suffer from micronutrient deficiencies, and food production should increase by 60% (FAO, 2017a). Scientists also question that these targets will be reached by 2030 (Blesh et al., 2019).
The basis for ensuring progress for SDG 2 and 12, as well as for other SDGs is the formation of a sufficient pool of investment resources. The Addis Ababa Summit in 2015 is dedicated to finding mechanisms and investment tools for financing sustainable development and its Goals.
The required amount to achieve the targets of these goals by 2030 by Food and Agriculture Organization (FAO), International Fund for Agricultural Development (IFAD) and World Food Program (WFP) is estimated at USD 265 billion a year by 2030 (Havemann et al., 2020). However, this amount does not cover the destructive impact on supply, production and consumption chains in the agro-industrial complex of the COVID-19 pandemic. This amount can be significantly increased. That is why, the development of investment tools for financing SDGs 2 and 12 in the agricultural sector on a responsible basis becomes particularly relevant.
The Czech Republic and Ukraine are different countries in terms of economic development in general and in the agro-industrial complex in particular. At the same time, both countries have recently joined the UN Global SDGs system and are taking the first steps in achieving them. The idea of this paper is to find common solutions in implementing SDGs 2 and 12 within the responsible investment framework based on the comparison of progress in SDG 2 and 12 in the agricultural sectors of the Czech Republic and Ukraine.
Using data from the Czech Republic and Ukraine over the period 2017-2020, a general comparative analysis of global and national targets of SDGs 2 and 12 in Ukraine and the Czech Republic is provided. The most crucial problems in achieving SDG 2 and SDG 12 are common for Ukraine and the Czech Republic. Typically, they are caused by a poor access to investment resources. The paper offers recommendations and solutions to the most important problems based on the responsible investment instruments.

LITERATURE AND REGULATORY REVIEW
In a competitive environment, it is difficult to put into practice environmental and other "irrational" principles that can only pay dividends in the distant future. In particular, this applies to small producers. They are increasingly looking for employment opportunities outside of agriculture. Therefore, it is necessary to focus on the role of small producers in agriculture, on the problems of their competitiveness and, at the same time, their more successful involvement in the process of implementing environmental imperatives in practice. This multidimensional goal covers three interrelated components: Achieving progress towards SDG 2 will depend on the progress made in meeting others from the 17 goals (FAO, 2016, 2017). However, interactions between SDGs currently have a weak conceptual and scientific basis. SDG 2 integrates and links food security, nutrition and sustainable and climate-resilient agriculture that does not adversely affect the climate system (Griggs et al., 2017). If there is a food shortage in the country as a result of climate change, achieving the SDG goal will be difficult (Mugambiwa & Tirivangasi, 2017). SDG 12 and SDG 2 are related to smarter management of chemicals in terms of increasing production and more efficient use of natural resources. Although SDG 2 focuses more on final production and food outcomes, SDG 12 focuses on the procurement, processing and distribution of food, which provides a certain perspective of the food system (Griggs et al., 2017). Agricultural practices based on the specificities of each country and their priority are-as should be promoted, especially those contributing the achievement of several sustainability goals simultaneously (Gil et al., 2019). The purpose of the study is to develop common possible solutions for regulators, countries, companies etc to the problem of introducing SDGs 2 and 12 and the financing problem within the framework for responsible investment.

DATA AND METHODOLOGY
A key method for comparing progress in achieving SDG 2 and 12 in the agricultural sector of Ukraine and the Czech Republic, as well as the role of responsible investment in this progress, is benchmarking (comparative analysis). The practical experience in implementing SDGs 2 and 12 is analyzed in the following dimensions: • General comparative review of the compliance of global and national targets of SDGs 2 and 12.
• The degree of target incorporation into the national policy.
• The progress of SDGs 2 and 12 at the level of Goals and Indicators according to global and national reviews.
• Problematic fields on the way to achieving SDGs 2 and 12 and prospects for its intensification.

RESULTS
Ukraine joined the Global SDGs system in 2017, forming national targets and progress indicators for each of them. SDGs 2 and 12 national targets' progress both in Ukraine and the Czech Republic do not fully take into account global targets and focus only on the most significant ones.
Simultaneously, such an essential target of SDG 2, which connects responsible agriculture with re-sponsible investment mechanisms in its development, is overlooked in Ukraine. It is the target 2a -Increase investment, including through enhanced international cooperation, rural infrastructure, agricultural research and extension services, technology development and plant and livestock gene banks to enhance agricultural productive capacity in developing countries, particularly least developed countries".
Regarding SDG 12, it should be noted that Ukrainian national targets' system includes only 36% of global targets. They are related to reducing the national economy's resource intensity, lowering food losses in supply chains, sustainable use of chemicals and shortening waste formation. Targets that create information and analytical support for responsible investment at the national level (12.6 and 12.8) and the basis for responsible investment by authorities at all levels (12.7) were left out of consideration.
Czech Republic is ahead of or in line with the OECD average for every SDG including SDGs 2 and 12. Protection of biodiversity and creation of favorable conditions for terrestrial ecosystems are close to the target levels. One of the key challenges for the case of SDG 12 is the implementation of appropriate measures to improve the management of wetlands and other natural bodies of water, and gradually revise certain agricultural and forest practices so as to prevent quick water runoff and soil erosion. An important issue for the case of achieving SDGs 2 and 12 in the Czech Republic is the development of urban areas and infrastructure in order to comply with the environmental standards and contribute to sustaining and strengthening ecosystem services.
The source of the SDGs system progress in Ukraine is the national system of legislation in strategic planning. As of 2020, it has 162 documents that cover 1,394 tasks, and they are specified in 4,296 measures to achieve all 17 SDGs. As for SDG 12, the number of tasks and activities has increased over the last two years, but it has decreased for SDG 2. At the same time, SDG 2 has a high integration level into state strategic documents, while SDG 12 has a medium level (Institute of Socio-Economic Research, 2017.) Despite the high and medium level of incorporation of the goals into the state strategic documents of Ukraine, the key challenge for their progress at the national policy level is the lack of responsible investments, primarily by the state. According to the World Bank and the IMF, responsible public investments, specified in the SDGs, can become a stimulus for responsible investment, if it is in line with the concept of "billion to trillion". It should be based on public-private partnerships and involve the "pay for success" mechanism, and the latest instruments for responsible investment (green, social bonds, impact investments, etc.).
In Ukraine, SDGs 2 and 12 are not integrated into the budget cycle and budget programming. Even the latest "Public Finance Management Strategy" does not contain guidelines for sustainable development or target indicators of SDG progress. Moreover, the specification of tasks and measures in the sectoral state strategic documents (Agrarian, Energy Strategies of Ukraine) is not linked to the relevant SDG targets and indicators. Thus, there is a significant gap between the formulation of tasks and measures for their progress and direct budget funding in the regulatory and legal support of SDG in Ukraine.
Also, no attention is paid to responsible investment. Responsible investment is defined in SDG 17 as the mobilization and allocation of external and internal investment resources and government and business partnership to ensure SDG progress. It is the next step, after the formation of a results-oriented budget (specific SDG), investing in SDG within a public and private partnership is possible, but only after the full SDG incorporation into the budget cycle at all levels.
From the side of the SDG 2, special attention needs to be paid to the development of investing mech-anisms in government support of the agricultural sector to raise food standards of the population. As for SDG 12, it is the investment mechanisms in the formation of less expensive production and distribution chains in the agro-industrial complex.
In the Czech Republic, responsible investment as defined in SDG 12 aims to maintain genetically diverse populations of native species and restoring natural habitats. For these purposes, grant aid both at European and national levels should be directed to support ecosystem services and achieve adequate food security.
Comparing the progress ( Table 2  The situation with SDG 12 is reversed. According to global monitoring, there are some existing chal-lenges to the achievement of SDG 12 in Ukraine. As a whole, its progress remains more significant compared to SDG 2. This might be related to incomplete data (there is a lack of data on target 2.3). The low level of waste processing in Ukraine, including post-harvest waste in the agro-industrial complex, casts doubt on this assessment.
As can be seen from Table 3, the progress in achieving the targets of SDGs 2 and 12 in the Czech Republic for the most cases is significant and has significant probability of achievement. The most problematic targets are 2.5 and 12.1. These aspects require additional attention because their achievement can be failed.
The existence of significant challenges in achieving the SDG 2 targets (Table 4) offsets the conclusions about their feasibility by 2030.
Observing the progress for each indicator of SDGs 2 and 12 in Ukraine identified problem areas and prospects for overcoming these problems, in particular in terms of responsible investment, as well as indicators (Table 5).
Although the agro-industrial complex is a vital branch of the Ukrainian economy and its exports (44.3% of exports of goods in 2019), and there is a growth in capital investment and modernization in this area (increase in investment by 2 times over the past five years), the achievement of initial targets of SDG 2 is hardly realistic. First of all, there  is a problem with the low level of food security and purchasing power of households in Ukraine, associated with farmers' unequal access to investment resources. Also, there is a lack of food standards; deformation of the agro-industrial complex structure with the predominance of raw material industries with less added-value than the processing industries and the disordered sphere of organic agriculture and production.

Dynamics of indicators by targets
The state should formulate the basic principles of responsible investment to intensify progress in achieving SDG 2 targets within the strategy of government support for agriculture, clustering and cooperation of rural areas, and effective use of public-private partnership investment mechanisms with providing transparency and anti-corruption policy.
The significant waste intensity of Ukraine's GDP and the increase in the amount of waste generated compared to the volume of utilized (less than a third) remains extremely problematic in case of SDG 12 (up to 104% in 2018). The solution to overcoming these problems might be the formation of investment incentives for Ukrainian companies' environmentally friendly activities, improving the legislation in waste management and recycling, and the transition of the economy to a circular basis.
Overall, in most cases, SDG-2 and 12 in the Czech Republic are ready for their implementation, or have been partially implemented. More detailed information regarding the progress in SDGs should be provided in the first official report on the implementation of the 2030 Agenda. But it was delayed due to the COVID-19 state of emergency. This report should serve as a basis for the second Voluntary National Review (VNR) planned for 2021.
As for the challenges, the main problem is the lack of attention from government authorities to the Sustainable Development issues. Other problems related to the progress in achieving SDGs 2 and 12 in the Czech Republic are presented in Table 6.

Characteristics of progress SDG 2 SDG 12
Almost unfulfilling < 20% cannot be achieved with such dynamics (it is not achievable until 2020) 2.5 12.1 Low probability of achievement 20% ≤ and < 60% needs significant acceleration 2.5.b 12.2 12.3 Medium probability of achievement 60% ≤ and < 80% needs some acceleration 2.5.a 2.5 c 2.5.d 12.4 12.5 High probability of achievement ≥ 80% on the way to achievement  Table 5. Problems arising in the process of achieving SDGs 2 and 12 in Ukraine, and solutions to come up with them Source: Author's development.

SDG 2
2.1.2. Consumption of milk and dairy products per capita, kg/year Low level of food security and purchasing power of the population Providing microcredit to SMEs in the agriculture field to diversify the market and reduce the production cost 2.1.1. Consumption of meat per capita, kg/year 2.3.2. Share of the food industry and agricultural raw materials processing production in exports of UCGFEA groups 1-24, % Low share of value-added of agricultural processing production in distribution chains Using investment tools of a public-private partnership to support agricultural processing companies 2.3.3. Share of agricultural land under organic production in the total area of agricultural lands of Ukraine, %* Inconsistency of the legislation on the regulation of organic production and the formation of its market The incentive of responsible investments in organic production, taking into account environmental factors of agricultural companies screening, completion of the formation of operational (markers, benchmarks, circulation technologies) and regulatory infrastructure of this market

SDG 12
12.4.1. Volume of waste generated by all economic activities per unit of GDP, kg per USD1,000 PPP in 2011 Significant wear of production capacity in energy, metallurgy, which cause high carbon content of products, lack of real data on waste Mandatory reporting on companies' environmental criteria; attracting investment in the modernization of production capacities, the formation of investment incentives for such modernization and the developing of low-waste technologies 12.4.2. Share of burned and recycled waste in the total waste generated, % Lack of waste disposal capacity, low share of recycling processes in all sectors of the economy, including raw materials (agro-industrial complex, metallurgy) Increasing the companies' investment attractiveness in the field of waste processing within the state investment policy; investment resources allocation in the circular economy technology; raising consumers' environmental awareness Table 6. Problems arising in the process of achieving SDGs 12 in the Czech Republic, and solutions to come up with them Source: SDG Watched Europe (2020), Strategic Framework Czech Republic 2030 (2020).

Target
Problem Solution

SDG 12
Priority 1. Landscape conservation as a prerequisite for biodiversity conservation 1. The current condition of the landscape and biodiversity is not satisfactory: landscape is exposed to the inadequate intensification of agricultural and forestry production, and excessive and inappropriate urbanization

CONCLUSION
An overall comparative review of global and national targets of SDGs 2 and 12 in Ukraine and the Czech Republic justifies simply including and adhering to these targets at the national and global levels. Some tasks are skipped in both countries. There is also inconsistency between data of global monitoring of these goals in Ukraine and the Czech Republic. This inconsistency, in the absence of some SDG tracking data, does not provide a real picture of progress in both countries.
The identified problems in achieving SDG 2 and SDG 12 are common for Ukraine and the Czech Republic and relate to the gap between SDGs tasks and their investment farmers' unequal access to investment resources, effective use of public-private partnership investment mechanisms with providing transparency.
Eliminating a gap in funding for SDGs 2 and 12 is relevant for both developed countries (the Czech Republic) and developing countries (Ukraine). The same challenges arise for these countries in achieving the SDG targets by 2030, comparing their progress and tools of responsible investment aimed at intensifying such progress.
Common possible ways to solve the problems of SDGs 2 and 12 implementation include the alignment of the system of national and global targets of SDG 2 and 12 in Ukraine and the Czech Republic to ensure their full coverage; deepening the system of monitoring targets, tasks and indicators for the studied Increasing temperatures might cause dry periods in some agricultural areas. The problem is deepening because of the drying of surface and subsurface water Implementation of retention elements both technical (reservoirs and polders) and natural or close-to-nature (wetlands, pools, floodplain forests) will help to retain rainwater in the landscape, and to revitalize the existing retention elements including the floodplains of watercourses and their natural overflows Objective 2: Achieving a good quantitative condition of groundwater and surface water Objective 3: Improving the water regime in the landscape Objective 4: Reducing the impacts of expected global climate change and extreme weather events on forest and agricultural ecosystems Table 6 (cont.). Problems arising in the process of achieving SDGs 12 in the Czech Republic, and solutions to come up with them goals in both countries (vertical approach); expanding the range of stakeholders to contribute to reporting, tracking and progress towards these goals (horizontal approach); inclusion in national budget cycles, programs and strategies for the development of the agricultural sector of the SDGs -focused budgeting and coverage of all targets and tasks of the SDG 2 and 12; creating a common base of the most effective responsible investment tools at the level of the Ministry of Economic Development, Trade and Agriculture of Ukraine and The Office of the Government and the Ministry of Environment Czech Republic, as well as financial market regulators for both countries to provide sufficient investment resources of SDGs 2 and 12. Among them are private-public partnership, impact investment, microcredit; encouraging responsible behavior of producers and consumers of agro-industrial products in order to create better value along supply chains; strengthening the investment attractiveness and transparency of companies on the principles of a circular economy.