Sdg analytics portfolio analysis

Who should I contact to get a portfolio SDG Analytics footprint ?
Trucost’s regional Account Directors can discuss the options available and can be reached by contacting trucostinfo@spglobal.com. 

What data points are needed from clients to perform the analysis ?


In order to undertake the SDG Analytics portfolio analysis, the following data points are required:

  • Company identifiers (e.g., ISIN)
  • Value of holdings, or weights and the total value of holdings

How does the analysis and data differ from the Trucost SDG Evaluation ?

Trucost’s SDG Analytics differs from the SDG Evaluation in the following manner:

  • It focuses on the impact of a portfolio rather than one individual company
  • It provides data on SDG-aligned revenue and SDG Risk Exposure, but not on any mitigation activities a company may be doing to alleviate risk or contribute more to positive impact (e.g., philanthropy)
  • It generates data for equity and corporate fixed income portfolio analysis

What asset classes is the analysis available for ?

The SDG Analytics analysis is currently available for equities and listed companies in corporate fixed income portfolios. Loan portfolios, and other asset classes such as private equity or infrastructure analyses may be available on a bespoke basis, subject to available data and custom arrangements with interested clients. For more information, please contact trucostinfo@spglobal.com.


How do you quantify investor exposure to SDG risks or contribution to SDG
positive impact ?
The SDG Analytics producttakes Trucost’s proprietary Positive Impact Taxonomy and SDGI-O model and applies it to the portfolio’s holdings. The holding’s share in the portfolio is taken as the weight to calculate SDG Positive Impact Alignment and SDG Additionality for each entity using a weighted average approach. For this calculation, an investor takes the SDG-aligned revenue intensity (SDG-aligned revenue / total revenue) of each holding and multiplies this by its weight in the portfolio. This method seeks to show an investor’s exposure to companies with SDG-aligned revenues. SDG Risk Exposure is also calculated using a weighted average approach by using the SDG Risk Exposure score multiplied by a holding's weight in the portfolio.


What portfolio level metrics are produced in the analysis ?
The SDG Analytics product will provide a portfolio and benchmark level SDG Positive Impact Alignment. Moreover, several impact metrics are also included:

  • % of revenue alignment with the SDGs
  • % of revenue alignment per SDG
  • Positive impact intensity contribution across portfolio
  • % of “additionality” provided by the portfolio towards achieving the SDGs
  • Top risk exposure SDGs
  • SDG risk exposure related to full value chain, only related to operations and only related to direct suppliers (Tier 1)


What sectors are used for classifications in the data ?
Trucost’s own 464 sector classifications (used in our data models and analytics) were used for determining SDG Positive Impact and are also shown by associated GICs sector classifications. SDG Risk Exposure metrics use the sector classifications included in the EORA26 multiregional input-output model4 that provides data on the economic flows of goods and services as part of the SDGI-O model. Can I see a sample analysis performed by Trucost? SDG Analytics dataset sample files and portfolio analysis sample reports are available on request by contacting trucostinfor@spglobal.com.

Which countries are used in the analysis ?
The SDG Analytics product uses data available from 185 countries in the SDG Positive Impact Alignment and in the SDG Risk Exposure analysis. A detailed breakdown of the countries can be found in the SDG Analytics Methodology document.