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A global standard for investing into the sustainable development goals

An asset owner led approach based on AI technology

Translation of the SDG’s from an investor perspective

A Sustainable Development Investment (SDI) is a company, which according to our methodology contributes positively to the UN Sustainable Development Goals through its products and services.

The starting point for the mapping of investments to the SDG classification is the taxonomy and rules. The SDI classification focuses on companies’ product and service-related contributions to the SDGs, and is based on financial metrics, most often revenues.

AI and machine learning is used to review public information (annual reports, financial reports, investor presentations on company’s websites, and product pages) to identify those companies that offer products and services that align with the rules and classification. The revenue that is generated from the company’s products and services is used to classify a contribution as majority – decisive – or a non–SDI.

In total we have 7.888 companies that are considered SDI-eligible and have been classified as SDI or Non-SDI.
The SDI-dataset includes the following data fields:

  • Description of SDI products and services
  • Relevant SDGs
  • Details of revenue segments
  • SDI rationale
  • Flags, exclusion flags
  • SDI revenue total

Using the data is of interest for asset owners that want to target SDGs and asset managers who want to serve their clients requests to align their investments more towards the SDGs. The data can be used to target capital allocation into SDG’s, manager selection and client reporting, improve engagement with issues and support reporting for example PRI and SFDR reporting.

The SDGs and SDG sub-goals have been translated from an investor perspective into the SDI taxonomy of product categories that are considered solutions contributing to the SDGs. When evaluating a company, the starting point is the classification of its products and services within the SDI product categories. The size of the positive contribution is calculated from the associated revenues (sales).

Currently we have over 323 product categories in our database. 151 of them quality as SDI product categories

Want to know more about the SDG sub-goals per SDG, click on the image below.