Why is Measuring Impact Important?
Investors increasingly view a robust responsible investment strategy to be one that considers the environmental and social impact of investee companies alongside financial returns. Because of this, investors need a consistent way to evaluate the broader impact of the companies they invest in.
Building Impact Focused Investment Strategies
Investors can use Impact data throughout the investment process to support robust impact-oriented strategies. This starts with setting meaningful and transparent impact objectives, and includes investment selection, monitoring and engagement and reporting back to stakeholders.
How does Sustainalytics look at Impact?
Sustainalytics considers Impact through the lens of our ESG Impact Framework, which is aligned to the UN SDGs and covers all the direct and indirect potential environmental and social impacts of an investment.
Climate
Action
The global effort to curb the Earth’s temperature rise and cope with unavoidable consequences.
7. Affordable and Clean Energy
9. Industry, Innovation and Infrastructure
11. Sustainable Cities and Communities
13. Climate Action
Healthy Ecosystems
Safeguarding of ecologically sound environments on land, air and water.
2. Zero Hunger
3. Good Health and Well-Being
6. Clean Water and Sanitation
9. Industry, Innovation and Infrastructure
12. Responsible Consumption and Production
15. Life on Land
Resource Security
Positively impacting natural resources through efficient use and circular economies.
2. Zero Hunger
6. Clean Water and Sanitation
7. Affordable and Clean Energy
11. Sustainable Cities and Communiities
12. Responsible Consumption and Production
Basic
Needs
Addressing the basic needs of humans, including access to food, housing, healthcare, clean water, and energy.
2. Zero Hunger
3. Good Health and Well-Being
6. Clean Water and Sanitation
7. Clean and Affordable Energy
11. Sustainable Cities and Communities
16. Peace, Justice and Strong Institutions
Human Development
Promoting human capabilities and progress through education, employment opportunities, and healthcare.
4. Quality Education
5. Gender Equality
7. Affordable and Clean Energy
8. Decent Work and Economic Growth
9. Industry, Innovation and Infrastructure
10. Reduced Inequalities
11. Sustainable Cities and Communities
Fair Business Conduct
A baseline for social and environmental themes.
8. Decent Work and Economic Growth
9. Industry, Innovation and Infrastructure
11. Sustainable Cities and Communities
8. Decent Work and Economic Growth
9. Industry, Innovation and Infrastructure
16. Peace, Justice and Strong Institutions
17. Partnership for the Goals
Related Insights
Post-COP15 Outlook: Evolving Investor Responsibilities in Biodiversity
Awaiting COP15’s Global Biodiversity Framework negotiation outcomes, financial market participants could face new regulatory pressure sooner than expected to integrate biodiversity assessment into their investment, decision-making processes.
Biodiversity loss and climate change call for a nature-positive economy – Stewardship may lead the way
Financial institutions funding the supply chains affected by biodiversity loss stand to lose right alongside farmers, producers and retailers—and so, in turn, do investors. ESG stewardship continues to be a powerful investor instrument to mitigate risks on a changing planet. With growing expectations of double materiality, it is an opportunity for investors to have a greater societal impact and support the transition towards a nature-positive economy.
United Nations Sustainable Development Goals (SDGs)
Assessing impact often starts with the UN SDGs. Introduced in 2015, The 17 SDGs are described as the “blueprint to achieve a better and more sustainable future for all.” Each of the 17 SDGs have a targeted goal to achieve by 2030 and most businesses are increasingly being scrutinized on these in the context of global issues including poverty, human well-being, consumption of natural resources, climate change, and environmental conservation.
Explore Sustainalytics’ ESG Impact Themes
Our ESG Impact Framework is the foundation of our approach to measuring Impact, and includes five key impact themes:
Climate Action
The global effort to limit the Earth’s increasing temperature and manage its consequences. This includes measures to promote clean energy, reduce GHG emissions and adapt to climate change.
Healthy Ecosystems
The safeguarding of land, air and water to ensure ecologically safe environments. This does not include GHG emissions and water consumption, as these are covered under other themes.
Resource Security
The effort to secure the Earth's resources by using them efficiently and contributing to circular economies. Resources of concern include water, timber, metals, minerals, gases and all types of manufactured materials.
Basic Needs
Addressing human needs, particularly those of low-income individuals. Basic needs include providing access to food, housing, essential healthcare (including major and neglected diseases), clean water, and energy for underserved populations. It also addresses human safety, including safe workplaces and communities.
Human Development
Enhancing human capabilities and promoting human progress. This includes measures that support education, improve equality, provide employment opportunities and advance healthcare.
Sustainalytics Solutions
Sustainalytics is committed to helping investors analyze the environmental and social impact of their investee companies’ operations and economic activities. Learn more about our Impact Solutions:
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Impact Metrics
Manage and report on the environmental and social impact of investee companies.
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Climate Solutions
Identify and manage investment risks and opportunities with climate research, ratings and data for investors.
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Thematic Engagement
Engage on the most challenging ESG issues, from climate change to human capital.
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