Analyzing Sustainable Development Goals
This analysis is by Bloomberg Intelligence analyst Shaheen Contractor. It appeared first on the Bloomberg Terminal.
The United Nations’ Sustainable Development Goals are catching on, with about 60% of large EU and Japanese companies discussing them in their public communications. At least 10 funds have been created this year, with SDG integration gaining momentum due to a focus from pension managers and retail investors. A Bloomberg Intelligence tool, the SDG model, helps analyze a company’s exposure to each goal, based on segment revenue and operational ESG performance.
Emerging structures such as Enel’s SDG-linked bonds and Standard Chartered’s SDG deposit accounts, the first retail banking product, indicate expanding diversification. Legrand, Orsted and Schneider, in our view, are among companies that are well-aligned with the SDGs, based on three pillars of analysis: quantitative targets, segment revenue and ESG performance.
Orsted, Legrand shine on Sustainable Development Goals
Orsted, Schneider and Legrand show alignment with the United Nations’ Sustainable Development Goals (SDG), based on BI’s model and research. The companies are positioning themselves to meet investor megatrends such as energy efficiency and gender diversity. Our model analyzes exposure through segment revenue and ESG metrics.
SDGs are next wave of sustainable investing
The UN’s Sustainable Development Goals provide a framework for companies to explore trends in health, nutrition, diversity and sustainable production, mirroring broader movements in ESG investing fueled by European and Japanese pension funds. Companies are using SDGs to position themselves on sustainability, with about 60% of the Bloomberg European 500 Index and Japan’s Topix 500 — along with about 30% of the S&P 500 — discussing the goals in their reports. Companies such as Chr. Hansen are reporting on SDG revenue contribution, indicating increasing corporate focus.
At least 35 companies, including Entergy, Swedbank and UBS, discuss the SDGs on earnings calls, a substantial increase from last year. The 17 goals lay out targets for economic development, social inclusion and environmental preservation.