The Trucost Positive Impact Taxonomy is a database of 164+ positive impact product and service categories among 464 revenue sectors that align with specific SDG targets. If a company’s revenue is generated from these types of products and services, it is considered to be SDG-aligned. Trucost has used previous research and conducted its own proficiency on this topic to build the Taxonomy. The Taxonomy is expected to grow as new products and services are developed that help achieve the SDGs.
What is SDG Additionality ?
SDG Additionality captures the additional benefit an SDG-aligned product or service provides based on the countries where the revenue is generated. Countries that have more SDG need relevant to the SDG mapped to that product or service will result in a higher additionality because selling the product or service in that location is providing additional benefits towards achieving that SDG.
SDG Additionality weightings are expressed as a multiplier ranging from 100% to 200% applied to the company’s share of SDG aligned revenue. In other words, if all companies in a portfolio sold 100% of SDG-aligned products in countries with 100% of need, the SDG Additionality would be 200%. For example, if a company generates 100% of its revenue from an SDG-aligned product or service and there is a 13% need for progress on that SDG in the country where it is sold, the SDG additionality will be 113%. SDG need is calculated using the SDG Index by the Sustainable Development Solutions Network (SDSN) and can be found in the reference section of this document and at https://www.sdgindex.org/.