User Guidance reveals use cases of growing SDI investor community
The User Guidance website can be accessed here and SDI AOP subscribers can request access for additional people by sending a mail to info@sdi-aop.org.
Transformative insights: see SDI Data in action
On 1st of February 2024 an international contingent of investors gathered to celebrate the launch of the SDI AOP online User Guidance: a new subscriber-only website that collects use cases from the SDI AOP and its investor community to offer guidance on how to successfully implement and accurately report on the use of SDI data.
With an emphasis on community and transparency, the use cases presented comprise success stories but also learning experiences that detail the journeys that peers have undertaken to integrate SDI in their approaches to responsible investment. Users can employ these first-hand accounts to share a common understanding of what SDI Data is and the various ways it has already been put into action with colleagues in their organisation.
The User Guidance also nurtures our growing SDI investor community by including contact details which encourage alignment between asset owners & managers. Though discussion of relevant and similar use cases, our subscribers can form useful connections and help each other mitigate potential greenwashing risks and increase confidence, knowing that they stand together in their approach to implementing SDI Data.
The website showcases a wide diversity of use cases from leading investors at different steps in their investment process - from asset allocation to stewardship and reporting, every aspect is easy to search and reference by topic and subscriber. This diversity demonstrates how the SDI AOP’s asset owner led philosophy and consistent Taxonomy approach has enabled it to meet the needs of investors large and small across many investment contexts.
Subscribers can explore various suggested ways to take advantage of the granularity and transparency of SDI data, from connecting an SDI verdict with the source information it was based on, to using segment level breakdowns and confidence levels to understand why a company was classified as SDI.
Ultimately, the User Guidance is an asset that will inspire both newer and more experienced users to better understand and get more value out of the various applications SDI Data makes possible.
The 9 key topics of the online User Guidance:
Creating community: workshop highlights
At our in-person workshop on February 1st , the User Guidance inspired discussion on key topics in sustainable investment and ways to advance them as a community.
On regulatory compliance, subscribers discussed how they employ the consistent, robust, and transparent approach to revenue alignment of SDI data to make it a component of their approach to identifying Sustainable Investments, while recognising that it aims to be applicable across regulatory contexts and therefore does not aim to be a “one stop shop” matching specific regulations 1-to-1.
On creating and balancing portfolios, different approaches were discussed to setting SDI thresholds for company selection, highlighting the variety of investment situations SDI data can accommodate. It was enlightening to hear how users wield a combination of minimum SDI%, confidence level thresholds, and/or average SDI% across their portfolios to create a baseline that matches their situation and level of ambition. Several comments referenced the use cases in the User Guidance page on “Monitoring and managing SDI exposure”.
“It is genuinely unique to have such open, engaged dialogue across asset owners and managers on the role of data and data evolution in underscoring real commitment to sustainable investing” – Stephanie Kelly, Redwheel
It was also great to see attendees from a wide range of teams and responsibilities in the workshop, as the User Guidance itself and the workshops around it aim to create a common base of understanding about SDI data which is easy to reference, and from which further discussion can emerge on how to implement the SDI AOP philosophy. At the same time, more experienced users of the data seemed to enjoy the lively discussion sparked by topics addressed in the User Guidance, and a desire was expressed for more frequent meetings between subscribers to dive deeper into themes and technical questions of particular interest to them.
In closing, meeting in person with our investor community was an interesting and exciting representation of everything that the User Guidance aims for: fostering collaboration and alignment through discussion of use cases, showcasing the granularity and transparency of SDI data by going into detail about its methodology, and inspiring more effective and widespread use of SDI Data by creating a common understanding of its key principles and all the different ways they can (and have already been) implemented.
We want to thank PGGM for hosting us in their beautiful offices, and all participants and contributors of the User Guidance for their enthusiasm and insights.
The User Guidance website can be accessed here and SDI AOP subscribers can request access for additional people by sending a mail to info@sdi-aop.org.