New dataset: September 2024 release

On 1 September we have released a new SDI Classification and SDI Innovation Outlook dataset. The key enhancements alongside this new release were:

1. Advancement of product categories:
   • Introduction of more granular and specific product types for different technologies, (eg wind, solar, hydro) and types of involvement in renewable energy, (eg splitting into products, services and construction); separation of Hydrogen related activities into a separate product category.
     
     
2. Rule refinements
   • Heat pumps: both “Industrial Heat pump” and “Domestic Heat pump” are now eligible for SDI.
   • Copper: Copper is now also included as a critical mineral for the energy transition, thus a proportion of revenues eligible for SDI.
   • Biofuels: the definition of eligible types has been updated so that only second-generation biofuels are eligible for SDI.
   • Enzymes, cultures, probiotics: only those used for non-animal farming are eligible for SDI
   • Catalysts: only catalysts for vehicle emission control are eligible for SDI.
   • Highly hazardous pesticides: companies associated with the production of agrochemicals that pose significant risks to human health and the environment are considered to have a negative contribution to SDI.
   • Oil & Gas: Extension of fossil fuel-related products and services considered to have a negative contribution to SDI. Oil-based power generation is also considered to have a negative contribution to SDI, alongside the existing coal power generation rule. Products and services from non-Energy sectors which are dedicated to oil & gas are considered negative, eg shipping, rail. The marketing and distribution of fossil fuel products to non-SDI activities (e.g. retail/gas stations and utilities involved in gas distribution) are not included under this change and remain neutral.
     
     

SDI Classification
In total 9,917 companies were assessed. It identifies 1,271 companies with more than 50% SDI aligned revenues, and 842 companies with 10-50% SDI aligned revenues. This contrasts with 614 companies with majority negative revenues and 235 with decisive negative revenues.

The reduction in the number of companies assessed in Q3 compared to Q2 can be attributed to the downward trend in the number of constituents within the underlying equity index. As the number of companies in the equity index decreases, it directly impacts the size of our SDI universe. The primary cause is that the benchmark now covers 99% of the global market capitalization, and with the top companies gaining significant weight, fewer companies are required to achieve this coverage compared to before.

Additional statistics on the SDI Classification are available as a subpage of the SDI Classification.

SDI Innovation Outlook
In total 8,709 companies are in the universe. In this release of the SDI Innovation Outlook a score is provided for 2,510 companies. Of those, 1,439 companies have an Innovation Outlook over 10%.

Additional statistics on the SDI Innovation Outlook are available as a subpage of the SDI Innovation Outlook.

In case of any questions related to the development and maintenance of the SDI taxonomy and guidance, SDI definitions and classification methodology or our research initiatives please send an email to info@sdi-aop.org