Impact Metrics

Analyze and report on the impact of your portfolio

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From climate change to diversity to good governance practices, investors of all types are beginning to consider the outcomes of their investments.  Increasingly, they are interested in aligning their investments with their interests related to environmental and social impacts, compelling asset managers and pension funds to improve portfolio reporting.  

Sustainalytics’ Impact Metrics is a set of company-level metrics that help pension funds and asset managers use the  globally recognized Sustainable Development Goals (SDGs) and other impact themes to analyze and report on the environmental and social impact of their portfolio investments.

Impact Metrics Set Encompasses

25

Product and Service Metrics

22

Operational Metrics

Introducing Our Impact Framework

At the center of our Impact Metrics Solution is our Impact Framework, which includes six impact themes that align to one or more of the SDGs and encompass all potential environmental and social impacts related to a company’s activities. 

Impact framework pie chart

Key Benefits

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Product and Operational Metrics

These metrics help our clients understand the impact generated by both a company's products as well as its operations.

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Up-to-Date and Complete Data

We provide the most complete reported dataset available for a given fiscal year. Data is consistent and can be used for security, portfolio or fund level reporting.

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Versatile Dataset

Our dataset can be adapted and used within various sustainability, impact, or disclosure frameworks.

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Transparency

We are transparent on how we assess companies. Where company disclosure is lacking, we provide estimates for most metrics.

Use Cases

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Portfolio Analysis and Reporting

  • Client/Fund Reporting on Impact or SDGs
  • Portfolio Monitoring on Impact or SDGs
  • Third-Party Fund and Mandate Evaluation
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Security Selection and Product Creation

  • Create impact or SDG-themed investment products
  • Use as an input into security selection and investment analysis process

Why Sustainalytics?

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A Single Market Standard

Consistent approach to ESG assessments across the investment spectrum.

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Award-Winning Research and Data

Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.

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End-to-End ESG Solutions

ESG products and services that serve the entire investment value chain.

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25+ Years ESG Expertise

500+ ESG research analysts across our global offices.

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Largest Second-Party Opinion Provider

As recognized by Environmental Finance and the Climate Bonds Initiative.

Climate Solutions

Leverage our carbon research to align your portfolio to the future low-carbon economy.

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Thematic Engagement

Engage on the most challenging ESG issues, from climate change to human capital.

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Sustainable Products Research

Identify Countries with sustainable product lines. 

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Morningstar® Global Renewable Energy IndexSM

Exposure to equity investments that generate revenue from renewable energy and green transportation.

Morningstar® Societal Development IndexSM

Developed and emerging market companies that align with one or more of the UN SDGs.

Morningstar® Minority Empowerment IndexSM

Companies that are committed to racial and ethnic diversity as demonstrated by relevant programs and policies related to diversity, community development etc.

Morningstar® Global Market SustainabilitySM Index Family

Best-in-class equity index that features reduced ESG risk profile​ with low to moderate tracking error.

Related Insights and Resources

biodiversity and ESG stewardship

3 Reasons to Skill Up and Scale Up ESG Stewardship in 2022

As our clients and the industry at large focus on proactively mitigating risk and capitalizing on this evolving landscape, stewardship will be a key lever for savvy investors—particularly those facing external pressure to divest. Here are the ESG themes we see influencing stewardship priorities this year.

cop26 trending themes for investors

COP 26: A Spotlight on Emerging Climate Action Themes for Investors

Reactions to the COP26 Conference and the resulting Glasgow Climate Pact have predictably run the gamut from claims of greenwashing to the celebration of progress in the fight against climate change. Ultimately, any judgement on COP26 may be premature, as the success of the conference will best be measured in time by the extent to which commitments made are put into motion. While we wait to see the concrete actions that materialize, the past two weeks have underscored the importance of several themes that will garner increasing attention and should be considered by sustainable investors.

EU Action Plan SFDR

Momentum Around Principal Adverse Impact Data Remains Strong Despite SFDR Delays

Despite the shifting timelines, we observe that the market momentum around PAIs is not diminishing, quite the contrary. Investors in the scope of the regulation are using the fourth quarter of this year to get acquainted with PAI data and set up their systems. Most investors we speak with want to be prepared in time to be able to monitor PAIs throughout 2022 and adjust their portfolios to boost their PAIs (or rather limit the downside, as these are adverse impact indicators). This means that PAIs may significantly impact stock selection and portfolio construction by fund managers keen to have ‘good’ PAI scores.

biodiversity species

Biodiversity: A Crisis Equaling, Possibly Exceeding, Climate Change

According to the UN’s Convention on Biological Diversity the main drivers of biodiversity loss are habitat loss and degradation, climate change, pollution, over-exploitation, and invasive species. Habitat loss is directly linked to the conversion of natural ecosystems to agricultural lands and unsustainable use of water resources.