SEEM Sustainability thru Engagement, Empowerment & Mobilisation

Hypothesis: 

An entity's sum of its impacts across SDGs = entity's total impact towards its one Purpose

An SDG (Sustainable Development Goal) consists of IPs (Impact Parameters) that have a weightage in the SDG

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Real economy company

 

Assumptions: 

IPs discovered for each of the SDGs and standardised by sector along with IP's % within each of the SDGs, their goals set, and sectoral pathways defined

For an ideal company, its SDGs' weightage in its one Purpose in other words entity's ideal relative focus across SDGs standardised by sector

Known:

IPs targets declared in alignment with their sectoral pathways

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

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

Targeted weightage of each SDG in its one purpose in other words - the entity’s targeted relative focus across SDGs for the period  declared while looking into its ideal and actual (from its previous cycle) relative focus across SDGs, its strategy, plans etc. = %SDG targeted

IP data Actual

 

Calculate at the end of the period (say every year):

%IP achievement = (IP data Actual / IP target declared) *100. (max 100%)

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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

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

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

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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.

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The actual relative focus across SDGs for the entity will be arrived at by calculating its weightage from the sum of all weighted %SDG achievements

 

Leading Financial Institutions (FIs)

 

Assumptions: 

FIs standardised by Categories

FI's IP value is derived from its underlying companies' or its assets' IP's (which ultimately needs to be arrived at from some real economy companies' IP data) proportionate data and its own IP data. 

FI’s SDGs consist of which IPs and their % already standardised by FI's Category

For a FI, its SDGs' weightage in its one Purpose; in other words, FI's ideal relative focus across SDGs standardised by FI Categories

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Known:

FI’s targeted relative focus across SDGs declared as per strategy while looking into its ideal and actual relative focus for the period as %SDG targeted FI

FI’s targets for its own IPs

FI’s own IP data

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wrt underlying company's (directly or as an underlying company for the asset when assets are from real economy companies)

IP target Comp (it is the proportionate value of the IP target Comp overall) 

IP data Actual Comp (it is the proportionate value of the IP data Actual Comp overall) 

%IP achievement Comp = (IP data Actual Comp / IP target Comp ) *100     (max 100%)

% FI’s Funds invested Comp

 

Calculate at the end of the period (say every year):

 

IP for FI ( for the FI in consideration or its assets when they are from the real economy companies directly, but if not, they need to be calculated for the underlying FI first and then added here just like the IP data Actual Comp or IP target Comp)

 

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 +additional tightness in targets may include considerations from FI's other plans 
% IP achievement for FI = IP data Actual FI / IP target FI  * 100  (max 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

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The actual relative focus across SDGs for the FI will be arrived at by calculating its weightage from the sum of all weighted %SDG achievements FI

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Note: For real economy companies, IPs for each of the SDGs need to be standardised by sector, and their % within the SDGs need to be standardised by sector, too. their goals are 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 ideal relative focus across SDGs is standardised; their IPs for each of the SDGs and their % within each of the SDGs are standardised by category. Then likewise, at a set period, say every year, FI measures the current state of their IPs (derived from their underlying companies and assets+FI's own IP data), baseline them and set their targets ( sum of IP target from underlying companies and assets + FI’s target for its own IP + additional tightness in targets may include considerations from FI's other plans ). Here, FIs have the opportunity to influence the targets set by their underlying companies and those of their assets and thereby adjust their own targets. When a 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. The entire IP and SDG measurements should be auditable. Also, we consider 16 SDGs, leaving aside the 17th as it is created to support the achievement of the other 16.

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