Identify sustainability topics

Use this resource to:

• Identify sustainability topics: Cross-check the organisations economic activities and geographic location against the Impact Mappings when identifying sustainability topics to measure.

Use this resource to:

• Identify: Understand the impact areas and topics associated to different economic activities by consulting the Sector-Impact map; understand both positive and negative associations; identify key sectors for different impact areas and topics.
• Assess: Review existing indicators and metrics for impact assessment by consulting the Indicator Library. Indicators and metrics from reporting standards and frameworks (GRI, SASB, CDP, TCFD), impact investor and development bank resources (IRIS+ and HIPSO), government taxonomies (EU Adaptation and Mitigation Taxonomies) and other sources have been collated to support indicator selection and interoperability between frameworks.

Use this resource to:

• Set and revise objectives: Set relevant and meaningful objectives by using the tool. It provides an impact analysis and management workflow that starts from the identification of impact associations and needs, facilitates the collection and assessment of impact performance data, and accordingly enables specific targets to be set and monitored over time.
• Identify sustainability topics: Identify impact areas and topics (economic, environmental and social) associated with a portfolio, based on an objective review (cartography) of the portfolio, sectoral and geographic breakdown. The tool contains collated research on the association between sectors (ISIC – International Standard Industrial classification) and 22 Impact Areas that cover all the SDGs, as well as a framework to enable a contextualisation of impact associations vis a vis the impact needs present in the country/ies of operation of the bank and its clients.
• Measure sustainability performance: Review existing metrics for impact measurement by consulting the Indicator Library embedded within the tool. UNEP FI has collated metrics from reporting standards and frameworks (GRI, SASB, CDP, TCFD), impact investor and development bank resources (IRIS+ and HIPSO), government taxonomies (EU Adaptation and Mitigation Taxonomies) and other sources to support indicator selection and interoperability between frameworks. This indicator library primarily supports use of the tool, but is also a useful standalone resource.Investors may also refer to the Real Estate Impact Analysis Tool which uses a complementary approach for real estate portfolios.

Investors may also refer to the Real Estate Impact Analysis Tool which uses a complementary approach for real estate portfolios.

Use this resource to:

• Identify: Use the tool to identify impact areas and topics (economic, environmental and social) associated with an investment portfolio, based on an objective review (cartography) of the portfolio, sectoral and geographic breakdown.
• Assess: Assess your current practice and performance vis a vis its most significant impact areas by combining the tools ‘Identification’ outputs with additional data; use the assessment as a basis for target-setting and to define the bank’s action plan.

Use this resource to:

• Identify sustainability topics: Fill in CDP’s questionnaires to understand the relevant climate change, forests and water security impacts to measure, based on the organization’s size, sector, and geography.
• Measure sustainability performance: Use CDP’s questionnaires as sets of environmental metrics.
• Assess impact: Fill in the questionnaires to track change in performance over time. Each question is scored – some with reference to social or ecological thresholds – to help the organisation determine whether it is performing sustainably on that topic.
• Disclose: Report to all stakeholders on climate change, forests and water security. The questionnaires provide a framework for companies to report environmental information to their stakeholders covering governance and policy, risks and opportunity management, environmental targets and strategy, and scenario analysis. Receive an A-D grading based on questionnaire responses.
• Benchmark: Tool allows companies to benchmark their environmental performance against their industry peers and receive feedback on their progress each year. The information disclosed is also used by financial markets for stewardship and engagement, in investment research, new financial products, and global indices and ratings.

Use this resource to:

• Identify: Use CDP’s questionnaires to understand the relevant climate change, forests and water security impacts to measure. 
  
• Assess: CDP holds the most comprehensive collection of corporate environmental data globally, and the questionnaire is now aligned with the TCFD recommendations. CDP data is disseminated throughout the market, and investors access and use the data in their own investment practices.
• Monitor: Every year, investors working with CDP request environmental information by asking companies to respond to our questionnaires on climate change, deforestation and water security. These investors can then access the companies’ responses and can use the data and insights in their own investment process.
• Benchmark: CDP scores allow companies to benchmark their environmental performance against their industry peers and receive feedback on their progress each year. The information disclosed is also used by financial markets for stewardship and engagement, in investment research, new financial products, and global indices and ratings.

Use this resource to:

• Identify sustainability topics: Identify the relevant industry standard to find industry-specific topics and accounting metrics. These standards can be a useful input when identifying which sustainability topics to disclose.
• Measure sustainability performance: Identify metrics from the standards. The standards themselves provide guidance on selecting metrics to report. Using standardised metrics helps the organisation and its stakeholders compare performance with others.
• Estimate value created: SASB evaluates sustainability topics for inclusion in the Standards by assessing whether a given topic is reasonably likely to materially affect the financial condition, operating performance, or risk profile of a typical company within an industry. Collecting information on these metrics provides insight that can inform estimation of value to the organisation.
• Disclose: Report to providers of financial capital on sustainability topics that are likely to affect how value is created, sustained or eroded for the organisation over the short-, medium-, and long-term.

Use this resource to:

• Assess: Assets use the measurement and disclosure standards and guidance for organisations, and investors can provide capacity to help adherence.

Use this resource to:

• Identify sustainability topics: Fill in the online questionnaire to understand the SDGs most relevant to manage, based on the organisation’s size, sector, and geography. The questionnaire draws from B Lab’s B Impact Assessment and the UN Global Compact’s 10 Principles. It was developed through research and public consultation and so provides an evidence-based starting point for identifying sustainability topics to measure.
• Measure sustainability performance: Use the SDG Action Manager as a set of metrics. The questionnaire enables organisations to collect performance information on the SDGs that are most relevant to manage, based on the organisation’s size, sector and geography.
• Assess impact: Fill in the questionnaire to track changes in performance over time. Each question is scored – some with reference to social or ecological thresholds – to help the organisation determine whether it is performing sustainably on that topic.
• Benchmark: The self-assessment tool helps organisations compare performance with peers on each SDG or as a whole organisation.

Use this resource to:

• Assess: Engage with underlying assets and support them in completing the SDG Action Manager Questionnaire. The multiple-choice, weighted question format helps underlying assets and their investors quickly judge whether performance on a topic is likely to be unsustainable or sustainable, and what they can do to improve.

Use this resource to:

• Identify sustainability topics: Find the economic activities that correspond to the organisation and review what the taxonomy says about likely impacts on sustainability. This can be an input into identifying sustainability topics to measure. This regulation is based on research connecting economic activities to likely significant impacts on six environmental objectives. Currently, research related to objectives of climate change mitigation and adaptation are most developed.

Use this resource to:

• Identify: Find the economic activities that correspond to the financial institution’s activities and review what the taxonomy says about likely impacts on sustainability. This can be an input into identifying sustainability topics to measure. This regulation is based on research connecting economic activities to likely significant impacts on six environmental objectives. Currently, research related to objectives of climate change mitigation and adaptation are most developed.
• Assess: Assess whether underlying assets are sustainable. Underlying assets that fall under the taxonomy regulation will report on the portion of their revenue, capital expenditure and operational expenditure that are ‘taxonomy aligned’, and therefore considered a ‘sustainable investment’ according EU policy objectives.
• Set targets: Set objectives for a portion of the portfolio to be ‘taxonomy-aligned’. Regulation provides investors with a set of performance thresholds that have to be met for an underlying asset to be viewed as operating sustainably in relation to one the EU’s six environmental objectives. Underlying assets that are ‘taxonomy aligned’ are generating sustainable outcomes and are therefore also ‘Benefiting stakeholders’.