What is SDG Risk Exposure ?

SDG Risk Exposure is a score from 0-100 that indicates exposure to SDG-related risks (0 signifying lowest risk and 100 highest risk) that the company directly impacts or the company is directly impacted by for all value chain stages, including operations, direct suppliers (Tier 1), indirect suppliers (Tier 2-Tier n) and downstream impacts, based on the sectors and operations where the company conducts business activities. The SDG Risk Exposure score is derived from Trucost’s SDG-Extended Multiregional Input-Output Model (SDGI-O), which analyzes the economic flows and associated exposure to SDG-related risks across sectors and 185 countries globally. Trucost assesses a company’s risk exposure from direct and indirect risks on the SDGs (such as greenhouse gas emissions in the supply chain) or the risk that a company may be dependent on practices and activities that conflict with the SDGs (such as child labor or underpayment of wages). Trucost has identified 45 unique metrics linked to the 17 SDGs that aim to represent corporate exposure to each SDG. The SDG Risk Exposure does not take into account mitigation activities the companies in a portfolio may be doing to address SDG-related risk, but is rather a baseline estimate of risk based on which sectors and countries a company is operating within. Trucost plans to incorporate mitigation activities into the SDG Analytics in subsequent versions of the product. A detailed breakdown the SDG Risk Exposure metrics and methodology can be found in the Trucost SDG Analytics Methodology document.

 

What data sources does Trucost use in the SDG Analytics product ?

Trucost’s SDG Analytics product uses a variety of data sources, including:

  • Financial data comes from Trucost and S&P Market Intelligence
  • Companies’ geographical breakdown of business activity is derived from public disclosures, S&P Market Intelligence and Trucost analysis
  • SDG Risk Exposure data is collated from a number of data sources, including Trucost, Institute for Health Metrics and Evaluation, Institute for Spatial Planning and Development Planning, International Labor Organization, New Earth’s Social Hotspots Database, the World Bank, and additional data sources.


References to the sources can be found in the reference section and in the
Trucost SDG Analytics Methodology document.

How often is the data revised ?


The SDG Analytics datasetis updated annually to incorporate any newly available data (e.g., change in revenue segments and percentage, business activity location, etc.).

What universe does Trucost cover ?

The SDG Analytics dataset covers 3,500 companies, which includes the entire S&P LargeMid Cap and about 600 additional companies representing 83% of global market capitalization.


What data history is available ?
The SDG Analytics datasetis currently available for 2019 or the most current year of company reporting (which in some cases may be 2018 or 2017).


I subscribe to Market Intelligence data. Does this allow me access to Trucost’s data?
Access to Trucost’s data requires a separate data license with Trucost. For more
information, contact trucostinfo@spglobal.com.