Based on SDG 11 “Make cities and human settlements inclusive, safe, resilient and sustainable” the investable sub-goals are:
11.1 Access to safe and affordable housing and basic services
Affordable housing
Investible entities that:
- Build or operate or own social housing, student housing, senior housing with a focus on inclusive, affordable and equitable access
X Not luxury retirement homes
Sustainable housing
- Real estate which has energy intensity and GHG intensity aligned with the Carbon Risk Real Estate Monitor CRREM 1.5deg pathway for its property type/location in 2030, (ie does not strand before 2030).
Safe housing
Investible entities that:
- upgrade/adapt existing housing to address health & safety considerations/regulatory requirements (e.g. asbestos removal, fire safety systems)
- provide services that increase availability of social housing
X Not security systems for gated communities or other non-essential structures (e.g. sports facilities, swimming pools)
11.2 Access to safe, affordable, accessible and sustainable transport systems
Sustainable transportation systems
Investible entities that:
- provide equipment or services for public transport that is electric or natural gas powered
X Not: taxi companies
!Controversies exist around ride sharing schemes
Improving road safety
Investible entities that:
- provide products and services to improve road safety (e.g. vision & sensor systems, traffic management systems)
!Many improvements become standard components (e.g. airbags)
11.5 Reduce impact of disasters
Reduce human impact
Investible entities that:
- provide disaster relief products and services (e.g. emergency packs, survival kits, medical equipment), short-term and emergency housing in response to natural disasters/conflicts (e.g. containers, shelter tents)
Reduce economic losses
Investible entities that:
- provide financial products and services for disaster relief after earthquakes, floods, hurricanes or conflicts (e.g. catastrophe insurance)
11.6 Reduce adverse per capita environmental impact of cities
Air quality
Investible entities that:
- provide products and services for air pollution control (e.g. filters for vehicle exhaust emissions)
Transport substitutes
Investible entities that:
- provide products and services that offer alternatives for transport (e.g. virtualisation, video-conferencing)
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. The full SDI Taxonomy can be found here. 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).