The Sovereign Sustainable Development Goals (SDG) assessment is a data product developed by Beyond Ratings, covering about 190 countries and leveraging more than 230 KPIs, the majority of which come from the United Nations official SDG database. The model uses a robust statistical approach to transform these inputs into a score for each SDG as well as an overall score. These scores aim to measure countries SDG progress, but – in the context of sovereign bond portfolios – can also provide a robust and versatile tool for impact-oriented portfolio reporting and portfolio construction, including the design of SDG-aligned government bond indices.
Key findings:
- Our SDG Factor-In methodology allows alignment with an official framework as the majority of the leveraged KPIs come from the UN SDG database
- This robust statistical approach allows to transform KPIs into scores by SDG for each of the covered countries
- The flexibility to select only specific SDGs permits to create sovereign fixed income tailored indices
Points of differentiation:
- This is a niche market in which solutions are lacking, we fill this gap with our Sovereign SDG Assessment and its index use case
- Providing customers with flexibility and transparency when it comes to achieving the SDGs
- Taking into account the income bias inherent in the sovereign sustainable segment
- Compatibility with both best-in-class or exclusion approaches within the same portfolio
