Alignment with the United Nations Sustainable Development Goals (SDGs) is not as easy as it seems and is still very inconsistent. A current study by the DVFA Commission Sustainable Investing on the SDG impact measurement offers a market overview of the currently available measurements, analysis tools and providers as well as some evaluations and recommendations.
The authors of the study, Christoph Klein and Dr. Rupini Rajagopalan, consider the 17 sustainability goals of 2015, although introduced to assess states, as an important milestone on the way to effective sustainable investments in companies. In their view, the SDGs have the potential to shift the focus of market participants and science to the purpose and positive effects of investments. So far, however, implementing ESG considerations has been viewed as prudent risk management.
Klein and Rajagopalan examine the following questions: How can the SDG-related effects of financial instruments and funds be measured? What is actually measured? What is the defined methodology? What types of data are needed? What is the analytical output?
The study provides an overview of the market, but is not a recommendation for a particular provider. The DVFA paper focuses on the twelve providers who, from the authors’ perspective, offer their tools to a broader customer base.
DVFA study on Sustainable Development Goals: https://www.dvfa.de/fileadmin/downloads/Verband/Kommissionen/Sustainable_Investing/DVFA_SDG_Impact_Measurement.pdf
DVFA Commission Sustainable Investing: https://www.dvfa.de/der-berufsverband/kommissionen/sustainable-investing.html