2020

Practice standards that provide a common language and a system for integrating sustainable development issues, the Sustainable Development Goals and impact management into business and investment decision-making. These practice standards also outline the ‘ABC’ classification methodology, which helps organisations assess whether an impact ‘Acts to reduce harm’, ‘Benefits stakeholders’, or ‘Contributes to solutions’ in relation to the SDGs.

Use this resource to:

Set up processes and embed practices that orient an organisation towards achieving the SDGs. The SDG Impact Standard contains practice indicators that are relevant to several actions. Use the links below to access guidance for different practice indicators. Alternatively, view the whole guidance document here.

• Governance, strategy, and management approach:
  • 2.1.1 / 2.1.2 / 2.1.3 / 2.1.4 / 2.1.5 / 2.1.6 / 2.1.7
  • 4.1 / 4.2 / 4.3
• Set and revise objectives:
  • 1.1.1 / 1.1.2 / 1.1.3 / 1.1.4 / 1.1.5 / 1.1.6 / 1.1.7 / 1.1.8 / 1.1.9 / 1.1.10 / 1.1.11
  • 1.2.1 / 1.2.2 / 1.2.3 / 1.2.4 / 1.2.5 / 1.2.6 / 1.2.7
• Identify sustainability topics:
  • 1.1.6 / 1.1.7 / 1.1.8
  • 2.2.1 / 2.2.2 / 2.2.3
• Measure sustainability performance:
  • 2.1.6
  • 2.2.4
  • 2.3.2
• Assess impact:
  • 2.1.6
  • 2.2.1 / 2.2.2 / 2.2.3 / 2.2.4
  • 2.3.1 / 2.3.2 / 2.3.3 / 2.3.4
• Estimate value created:
  • 2.2.1 / 2.2.4 / 2.2.5
• Verify:
  • 2.2.6
  • 3.6
• Integrate and act:
  • 2.2.5
  • 2.3.1 / 2.3.2 / 2.3.3 / 2.3.4 / 2.3.5
• Disclose:
  • 3.1 / 3.2 / 3.3 / 3.4 / 3.5 / 3.6

Guidance on impact-financial integration at the investment and portfolio level, developed by a collaboration of 13 investors. Includes examples.

Use this resource to:

• Assess: Construct an expected impact rating using sections 1.3 and 2. Use Sections 1.5-1.8 and 3.1-3.2 to integrate impact alongside financial risk and return to inform investment decision-making.

Guidance that provides an analytical framework to compare impact performance, with a specific focus on variance and the extent of the change required to enable meaningful contribution toward impact.

Use this resource to:

• Assess: Normalise measures of impact so that impact performance can be compared. This resource can also be used to determine how meaningful the contribution of the investor is.

Tool designed to help organisations measure and manage their impacts in relation to the Sustainable Development Goals.

Regulation that sets out performance thresholds for organisations to classify their economic activities as “sustainable” according to European policy objectives.

Guidance on constructing due diligence questions based on the investor’s impact goals.

Use this resource to:

• Identify: Use for impact due diligence, specifically the anticipated impacts before an investment decision.
• Assess: Integrate impact measurement and management into the due diligence process to aid in assessing and managing impact risk.
• Monitor: Construct a set of due diligence questions that uses the IRIS+ system and evidence base.

Forthcoming: Tool for investors to publicly classify the impact of their portfolios. The tool uses Impact Classes as a means to segment a portfolio by type of impact on two axes: the impact of underlying assets (A, B or C) and investor’s contribution. Users can also express the portfolio’s contribution to SDGs.

Use this resource to:

• Assess: Assess the actual or expected performance of a portfolio of investments using classification.
• Disclose: Publicly disclose the performance of a portfolio of investments using classification.

Tool to report on responsible investment activities annually.

Relevance to Portfolio of assets:

• Disclose: Report on firm-wide and portfolio or strategy-specific investment practices.

A high-level framework for any investors looking to shape real-world outcomes in line with the Sustainable Development Goals (SDGs).

Use this resource to:

• Identify: Identify and understand the unintended outcomes of an investors’ investments and their own operations. This assessment involves identifying positive and negative real-world outcomes related to investees’ operations, products and services.
• Act: Explore examples of how investors shape outcomes through investor actions including: investment decisions, stewardship of investees and engagement with policy makers and key stakeholders.
• Set Targets: Move from identifying and understanding unintended outcomes towards taking intentional steps to shape outcomes. 

Principles to guide companies in aligning their sustainability commitments with credible corporate finance strategies geared towards contributing to the Sustainable Development Goals.