Robeco, The Investments Engineers

SDG Investing

The Sustainable Development Goals are the blueprint for sustainable investing

Key points

  1. Investments with positive societal impact and contribution to SDGs

  2. Proprietary SDG framework applying 25+ years of research and sustainability data

  3. Exclusion of negative SDG contributions and controversies

Set up in 2015 by the UN, the SDGs provide a shared blueprint for peace and prosperity for people and the planet, now and into the future. The SDGs are a perfect way to align investors with broader objectives of society. The granularity of the SDGs helps to clearly articulate how sustainability topics are applied to the investment decision making and to explain specifically how money contributes.

Our approach

Robeco was one of the first asset managers to formally develop a proprietary investment framework focused on the SDGs. This is a robust tool that systematically evaluates companies based on their contribution towards the SDGs. A company’s overall performance across the SDGs aggregates into an overall company SDG score. These scores are used to construct portfolios that pursue positive impact and aim to avoid negative impact, thereby advancing sustainable economic, social and ecological progress.

We use this three-step framework to assess to what extent a company contributes positively or negatively to each of the SDGs:

Step 1: Products

Step 1: Products

What do companies produce?

  • Positive contribution examples: medicine, water, healthcare

  • Negative contribution examples: shale gas, fast food, gambling

Step 2: Procedure

Step 2: Procedure

How do companies produce?

  • Governance factors

  • Pattern of questionable conduct?

  • Differentiate between firms with highest SDG impact

Step 3: Controversies

Step 3: Controversies

Are controversies known?

  • Example of controversies: spills, bribery and fraud, mis-selling

How do companies and countries score on sustainability?

Explore the contributions companies make to the Sustainable Development Goals and how countries rank on ESG criteria.

Find out more

All companies are given an SDG score based on their contribution to the SDGs (positive, neutral or negative) and the impact of this contribution (high, medium or low). For instance, companies that have a strong positive impact on the SDGs receive a score of +3, while those with a low positive impact would score a +1.

The Robeco SDG strategies apply this framework to define an investable universe composed of companies that contribute positively to the SDGs. To enable diversification across sectors and countries, companies with a neutral SDG score may be included in the portfolio as well.

The scoring system of the Robeco SDG Framework builds on a pioneering research tradition, and further expands on Robeco’s decades-long lead in sustainable investing. The SDG score, together with the macroeconomic outlook, fundamental analysis, sustainability research and ongoing risk management helps investment teams reduce downside risk and select the most promising stocks and bonds for investment portfolios. For each SDG portfolio we report on overall SDG scores versus the index and individual scores for each of the 17 SDGs.

loader

Team

The quality of the SDG Framework is maintained by our Sustainable Investing Center of Expertise, which includes a dedicated SDG Strategist, SDG Committee and Sustainability Investing Research team. The Center also comprises ESG data scientists and an Active Ownership team that engages with companies and governments on SDGs as well as a wide range of financially material ESG topics. The sustainability specialists work closely with over 200 investment professionals on integrating sustainability into investment portfolios.

Jan Anton van Zanten - SDG Strategist

Jan Anton van Zanten
SDG Strategist

“

Let us take advantage of the opportunities presented by climate action and lay the foundations for a more prosperous and secure future for all

Sub-strategies

Robeco offers SDG strategies in equities, credits and through Indices:

Sustainability

This strategy includes strategies classified as Article 8 as well as strategies classified as Article 9 under the EU's Sustainable Finance Disclosure Regulation.

Ingredients

01

SDGs

Investments that quantifiably contribute to the SDGs

02

Impact

Investing that aims to generate beneficial social and/or environmental effects

03

Research-driven

A true understanding of the topic has been in our DNA since the start

04

Rich heritage

This has been a core expertise for us for decades

Related topics

share

Let's keep the conversation going

Keep track of fast-moving events in sustainable and quantitative investing, trends and credits with our newsletters.

Stay updated
Robeco

Robeco aims to enable its clients to achieve their financial and sustainability goals by providing superior investment returns and solutions.

Important information
The Robeco Capital Growth Funds have not been registered under the United States Investment Company Act of 1940, as amended, nor or the United States Securities Act of 1933, as amended. None of the shares may be offered or sold, directly or indirectly in the United States or to any U.S. Person (within the meaning of Regulation S promulgated under the Securities Act of 1933, as amended (the “Securities Act”)). Furthermore, Robeco Institutional Asset Management B.V. (Robeco) does not provide investment advisory services, or hold itself out as providing investment advisory services, in the United States or to any U.S. Person (within the meaning of Regulation S promulgated under the Securities Act).
This website is intended for use only by non-U.S. Persons outside of the United States (within the meaning of Regulation S promulgated under the Securities Act who are professional investors, or professional fiduciaries representing such non-U.S. Person investors. By clicking “I Agree” on our website disclaimer and accessing the information on this website, including any subdomain thereof, you are certifying and agreeing to the following: (i) you have read, understood and agree to this disclaimer, (ii) you have informed yourself of any applicable legal restrictions and represent that by accessing the information contained on this website, you are not in violation of, and will not be causing Robeco or any of its affiliated entities or issuers to violate, any applicable laws and, as a result, you are legally authorized to access such information on behalf of yourself and any underlying investment advisory client, (iii) you understand and acknowledge that certain information presented herein relates to securities that have not been registered under the Securities Act, and may be offered or sold only outside the United States and only to, or for the account or benefit of, non-U.S. Persons (within the meaning of Regulation S under the Securities Act), (iv) you are, or are a discretionary investment adviser representing, a non-U.S. Person (within the meaning of Regulation S under the Securities Act) located outside of the United States and (v) you are, or are a discretionary investment adviser representing, a professional non-retail investor.


Access to this website has been limited so that it shall not constitute directed selling efforts (as defined in Regulation S under the Securities Act) in the United States and so that it shall not be deemed to constitute Robeco holding itself out generally to the public in the U.S. as an investment adviser. Nothing contained herein constitutes an offer to sell securities or solicitation of an offer to purchase any securities in any jurisdiction. We reserve the right to deny access to any visitor, including, but not limited to, those visitors with IP addresses residing in the United States. This website has been carefully prepared by Robeco. The information contained in this publication is based upon sources of information believed to be reliable. Robeco is not answerable for the accuracy or completeness of the facts, opinions, expectations and results referred to therein. Whilst every care has been taken in the preparation of this website, we do not accept any responsibility for damage of any kind resulting from incorrect or incomplete information. This website is subject to change without notice. The value of the investments may fluctuate. Past performance is no guarantee of future results. If the currency in which the past performance is displayed differs from the currency of the country in which you reside, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if converted into your local currency. For investment professional use only. Not for use by the general public.