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
What do companies produce?
Positive contribution examples: medicine, water, healthcare
Negative contribution examples: shale gas, fast food, gambling
Step 2: Procedure
How do companies produce?
Pattern of questionable conduct?
Differentiate between firms with highest SDG impact
Step 3: Controversies
Are controversies known?
Example of controversies: spills, bribery and fraud, mis-selling
Jan Anton van Zanten
Robeco offers SDG strategies in equities, credits and through Indices:
Investments that quantifiably contribute to the SDGs
Investing that aims to generate beneficial social or environmental effects
A true understanding of the topic has been in our DNA since the start
This has been a core expertise for us for decades