SD-M GmbH creates and publishes global standards for key ESG indicators in 68 different industries, so-called “Sustainable Development Key Performance Indicators” (SD-KPIs). The aim of the project was to model these standards on the basis of the global ESG data from Moody’s ESG Solutions (Moody’s® is a registered trademark) licensed by imug rating to create a database for company- and sector-specific benchmarks in the area of relevant ESG indicators.
The SD-KPIs were operationalised using appropriate imug rating / Moody’s ESG Solutions research lines. The operationalisation included a mapping of the SD-KPIs to appropriate Moody’s ESG Solutions indicators. For each SD-KPI, imug rating also determined meaningful class thresholds for conducting company- and sector-specific benchmarking with regard to relevant indicators in the areas of environment, social affairs and governance.
SD-M GmbH developed a specialised ESG classification model based on three standardised ESG key performance indicators for the respective sectors under consideration. The resulting SD-KPI standard 2016-2021 was published with the support of the German Federal Ministry for the Environment and the Sustainability Accounting Standards Board. SD-KPI and SASB standards have a high overlap. SASB is now part of the International Sustainability Standards Board (ISSB).
Through the modelling of imug rating, a comprehensive database was created for the implementation of company- and sector-specific benchmarking on the basis of SD-KPIs. The modelling process was based on various research lines, which included relevant quantitative as well as a variety of qualitative ESG data.
The standardised solution of imug rating and SD-M enables banks, investors, asset managers and index providers to easily and systematically integrate SD-KPIs into risk management, indices, funds, sustainability-linked bonds and loans.
You are an investor and wondering how you can integrate relevant ESG data into your investment process? We are looking forward to advising you!