Trucost Identifies $233 Billion SDG-Aligned Revenues

Companies participating in the inaugural application of the Trucost SDG Evaluation Tool were found to have $233 Billion SDG-Aligned Revenues, equivalent to 87% of their total revenues.

Trucost, part of S&P Global has announced findings from the inaugural application of its SDG Evaluation Tool. The 13 companies that participated in the inaugural application generated almost $233 billion of SDG-aligned business revenues in 2017; equivalent to 87% of their total revenues.

On September 25th 2015, more than 150 world leaders adopted the United Nations Sustainable Development Goals (SDG) to end poverty, protect the planet and ensure prosperity for all as part of a new sustainable development agenda.

Trucost, a leader in carbon and environmental data and risk analysis, developed the SDG Evaluation Tool to increase transparency and help market participants identify SDG-aligned business value and inform sustainable growth strategies.

The Trucost SDG Evaluation Tool provides a quantitative analysis of corporate performance on the SDGs across the value chain, from raw material inputs to product use and disposal, within the context of a company’s geographic operations. The framework was developed to increase the accuracy of SDG reporting by quantifying both SDG-linked risks and opportunities faced by companies.

Libby Bernick, Managing Director and Global Head of Corporate Business, Trucost said, “Working with a diverse range of companies and market specialists has enabled us to develop a robust framework to assess SDG-aligned business value so that it is comparable across business activities and regions. We are grateful for the collaboration of our program participants in helping to address growing demand for holistic SDG metrics to meet the decision-making needs of investors, company boards, and other market participants.”

The SDGs can catalyze new ways to think about social and environmental issues. For example, corporate reporting and action on greenhouse gas emissions has increased exponentially in recent years, but SDG 13 Climate Action also highlights the importance of climate adaptation which is less commonly disclosed by companies.

Additional findings from the inaugural application of the Trucost SDG Evaluation include:
  • Regional considerations: Market participants need to assess SDGs with a regional lens, as many of the risks and opportunities are locally specific
  • Supply Chain: Supply chain SDG risks are largely opaque; economic models provide a fast, efficient way to sleuth which are material issues, and where
  • Sales in developing markets: Companies can create more positive contribution to the SDGs by accelerating sales in markets where the need is greatest; in many sectors, this often includes developing markets
Multiple companies, supported by an advisory panel of investment professionals, interest group representatives and academics, were part of the inaugural application of the Trucost SDG Evaluation Tool.

The Trucost SDG Tool inaugural group of companies included: Aguas Andinas, AMD, Arm, CLP Holdings, HP Inc, Iberdrola, Ingersoll Rand, Ørsted, ROCKWOOL Group, S&P Global, Spectrum Brands Holdings, Inc, Tarkett and Walgreens Boots Alliance.

Advisory panel: American Chemistry Council, APG, Calvert Research and Management, Impax Asset Management LLC/Pax World Funds, London School of Economics, Nordic Investment Bank, PGGM, S&P Dow Jones Indices, UN Global Compact, and World Business Council for Sustainable Development.