Based on SDG 13 “Take urgent action to combat climate change and its impacts” the investable sub-goals are:
13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries
Infrastructure
Investable entities that:
- Build or operate infrastructure offering protection to climate-related hazards (e.g. flood protection dams and dykes, flood-resilient buildings)
X Not: infrastructure that are harmful to the natural environment or energy-inefficient
Adaptive capacity
Investable entities that:
- Build or operate water storage infrastructure
- Provide weather forecasting services and technologies (e.g. sensors)
- Provide equipment and services for natural disaster warning systems
- Produce products and services for climate adaptation (e.g. fire retardant materials)
Insurance
- Climate risk related insurance, catastrophe reinsurance, weather bonds
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).