2020
SDG Impact Standards for Enterprises
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:
- 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:
- Measure sustainability performance:
- Assess impact:
- Estimate value created:
- Verify:
- Integrate and act:
- Disclose:
Impact-financial integration: a handbook for investors
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.
COMPASS: The Methodology for Comparing and Assessing Impact
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.
SDG Action Manager
Tool designed to help organisations measure and manage their impacts in relation to the Sustainable Development Goals.
For organisations
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.
For investors and financial institutions
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.
EU Taxonomy
Regulation that sets out performance thresholds for organisations to classify their economic activities as “sustainable” according to European policy objectives.
For organisations
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.
For investors and financial institutions
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’.
IRIS+ for Impact Due Diligence
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.
Impact Classification System
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.
Reporting and assessment framework
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.
Investing with SDG Outcomes: A Five-part Framework
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.
CFO Principles on Integrated SDG Investments and Finance
Principles to guide companies in aligning their sustainability commitments with credible corporate finance strategies geared towards contributing to the Sustainable Development Goals.
For organisations
Use this resource to:
- Governance, Strategy and Management Approach: Integrate impact management and contribution to the SDGs into the corporate finance function. This initiative involves a fee for participation.
For investors and financial institutions
Use this resource to:
- Strategy: Integrate impact management and contribution to the SDGs into the corporate finance function. This initiative involves a fee for participation