On September 25th 2015, more than 150 world leaders adopted the United Nations Sustainable Development Goals (SDG) to end poverty, protect the planet and ensure prosperity for all as part of a new sustainable development agenda.
Trucost, a leader in carbon and environmental data and risk analysis, developed the SDG Evaluation Tool to increase transparency and help market participants identify SDG-aligned business value and inform sustainable growth strategies.
The Trucost SDG Evaluation Tool provides a quantitative analysis of corporate performance on the SDGs across the value chain, from raw material inputs to product use and disposal, within the context of a company’s geographic operations. The framework was developed to increase the accuracy of SDG reporting by quantifying both SDG-linked risks and opportunities faced by companies.
Libby Bernick, Managing Director and Global Head of Corporate Business, Trucost said, “Working with a diverse range of companies and market specialists has enabled us to develop a robust framework to assess SDG-aligned business value so that it is comparable across business activities and regions. We are grateful for the collaboration of our program participants in helping to address growing demand for holistic SDG metrics to meet the decision-making needs of investors, company boards, and other market participants.”
The SDGs can catalyze new ways to think about social and environmental issues. For example, corporate reporting and action on greenhouse gas emissions has increased exponentially in recent years, but SDG 13 Climate Action also highlights the importance of climate adaptation which is less commonly disclosed by companies.
Additional findings from the inaugural application of the Trucost SDG Evaluation include:
- Regional considerations: Market participants need to assess SDGs with a regional lens, as many of the risks and opportunities are locally specific
- Supply Chain: Supply chain SDG risks are largely opaque; economic models provide a fast, efficient way to sleuth which are material issues, and where
- Sales in developing markets: Companies can create more positive contribution to the SDGs by accelerating sales in markets where the need is greatest; in many sectors, this often includes developing markets
Multiple companies, supported by an advisory panel of investment professionals, interest group representatives and academics, were part of the inaugural application of the Trucost SDG Evaluation Tool.
The Trucost SDG Tool inaugural group of companies included: Aguas Andinas, AMD, Arm, CLP Holdings, HP Inc, Iberdrola, Ingersoll Rand, Ørsted, ROCKWOOL Group, S&P Global, Spectrum Brands Holdings, Inc, Tarkett and Walgreens Boots Alliance.
Advisory panel: American Chemistry Council, APG, Calvert Research and Management, Impax Asset Management LLC/Pax World Funds, London School of Economics, Nordic Investment Bank, PGGM, S&P Dow Jones Indices, UN Global Compact, and World Business Council for Sustainable Development.
Trucost is part of S&P Global (NYSE: SPGI). A leader in carbon and environmental data and risk analysis, Trucost assesses risks relating to climate change, natural resource constraints, and broader environmental, social, and governance factors. Companies and financial institutions use Trucost intelligence to understand their ESG exposure to these factors, inform resilience and identify transformative solutions for a more sustainable global economy. S&P Global’s commitment to environmental analysis and product innovation allows us to deliver essential ESG investment-related information to the global marketplace. For more information, visit www.trucost.com.
About S&P Global
S&P Global is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide. The Company’s divisions include S&P Global Ratings, S&P Global Market Intelligence, S&P Dow Jones Indices and S&P Global Platts. S&P Global has approximately 20,000 employees in 31 countries. For more information visit www.spglobal.com.
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