Topics in this section: - The 17 Sustainable Development Goals - Analyzing the Sustainable Development Goals with BI's SDG model
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.
The 17 Sustainable-Development Goals
Analyzing the Sustainable Development Goals with BI's SDG model
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.
