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Real economy company

 

Known:

IP targets declared

SDG consists of which IPs and their %ages already defined for the company based on its sector

Ideal weightage of each SDG in its one purpose in other words - entity’s ideal relative focus across SDGs defined by the company based on its sector, products and services, strategy and its Purpose = %SDG ideal

Targeted weightage of each SDG in its one purpose in other words - entity’s targeted relative focus across SDGs declared = %SDG targeted

IP data Actual

 

Calculate:

%IP achievement = (IP data Actual / IP targets declared) *100

For %SDG achievement

 

say SDG1 consists of IP1 & IP2 and =  % a of IP1 + %b of IP2

Then, %SDG1 achievement =  %a * %IP1 achievement + %b * %IP2 achievement

say SDG2 consists of IP3 & IP4 and =  % c of IP3 + %d of IP4

Then, %SDG2 achievement =  %c * %IP3 achievement + %d * %IP4 achievement
….

Then,
weighted %SDG1 achievement = %SDG1 targeted * %SDG1 achievement

weighted %SDG2 achievement = %SDG2 targeted * %SDG2 achievement

….

 

Sum of weighted %SDGs achievements -> denotes %of total impact towards one purpose achieved and is universal and comparable across sectors

 

Financial Institutions

 

Known:

FI’s ideal relative focus across SDGs defined by self based on its strategy, plans, products and services and the Purpose of the FI as %SDG ideal FI

FI’s targeted relative focus across SDGs declared using targeted %funds into underlying & targeted companies, their targeted IP value and IP's standardised % into FI's SDGs based on FI's category and any other criteria as applicable as %SDG targeted FI

FI’s targets for its own IPs

FI’s SDGs consist of which IPs and their %age already defined based on FI's category

FI’s own IP data

wrt underlying company

IP target Comp

IP data Actual Comp

%IP achievement Comp

% FI’s Funds invested Comp

 

Calculate:

 

IP for FI

 

IP data Actual FI = sum of ( IP data Actual Comp ) + FI’s  own IP data

IP target FI = sum of ( IP target Comp ) + FI’s target for its own IP + FI's plans and IP data
% IP achievement for FI = IP data Actual FI / IP target FI  * 100

 

weighted %SDG achievement FI

 

weighted % IP1 achievement across companies =


%Funds invested Comp1 *  %IP1 achievement Comp1 +

%Funds invested Comp2  *  % IP1 achievement Comp2 +

…. 

 

weighted %IP2 achievement across companies =


%Funds invested Comp1 *  %IP2 achievement Comp1 +

%Funds invested Comp2  *  %IP2 achievement Comp2 +

…. 

 

Likewise for IP3, IP4 …..


Now, say SDG1 consists of IP1 & IP2 and =  % a of IP1 + %b of IP2

 

weighted %SDG1 achievement FI = %SDG1 targeted FI * ( %a * weighted %IP1 achievement across companies +
%b * weighted %IP2 achievement across companies )

 

say SDG2 consists of IP3 & IP4 and =  % c of IP2 + %d of IP4

 

weighted %SDG2 achievement FI = %SDG2 targeted FI * ( %c * weighted %IP3 achievement across companies +
%d * weighted %IP4 achievement across companies )


Likewise for SDG3, SDG4, …


Sum of weighted %SDGs achievements FI - > denotes % total impact towards its one purpose achieved and it is universal and comparable across FIs

Note: For real economy, IPs for each of the SDGs need to be standardised by sector and their %ages within the SDGs need to be standardised by sector too., their goals set. and sectoral pathways described. Then at a set period say every year entities measure their current state, baseline them and set their targets in alignment with their sectoral pathways. For the FIs, they need to be classified into standardised categories, their IPs for each of the SDGs and their %ages within each of the SDGs standardised, by category. Then likewise at a set period say every year FI measures the current state of their standardised IPs (derived from their underlying companies+FI's own IP data), baseline them and set their targets (derived from underlying companies targets+FI's own IP target+FI's plans) .Here FIs have the opportunity to influence the targets set by its underlying companies and thereby adjust their own targets. When real economy company or FI declares its targeted relative focus across SDGs, it must measure its actual having had discovered its ideal already to enable their suitability. Also, we consider 16 SDGs, leaving aside the 17th as it is created to support the achievement of other 16.

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