Sustainable Investment Strategies: Fresh green CapEx data – Corporate Knights

Report on Corporate Knights’ Contribution to Sustainable Development Goals

Organizational Mandate and SDG Alignment

Corporate Knights is a research and media organization dedicated to advancing a sustainable economy. Its core functions are directly aligned with the United Nations’ 2030 Agenda for Sustainable Development by providing critical data and analysis on corporate performance against environmental, social, and governance (ESG) metrics.

• Research and Analysis: The organization conducts in-depth research into corporate sustainability, providing the data necessary for stakeholders to assess corporate contributions toward the SDGs.
• Global Rankings and Reports: It produces influential global rankings and reports that benchmark corporate performance, fostering transparency and accountability in line with SDG 12 (Responsible Consumption and Production) and SDG 16 (Peace, Justice and Strong Institutions).
• Financial Product Ratings: By rating financial products, Corporate Knights helps channel investment toward enterprises that actively support sustainable development, contributing to SDG 17 (Partnerships for the Goals).

Key Initiatives and Their Impact on the SDGs

Corporate Knights’ flagship initiatives serve as vital tools for measuring and encouraging corporate action on the Sustainable Development Goals.

1. The Global 100 Most Sustainable Corporations in the World: This annual ranking, released during the World Economic Forum, identifies top-performing companies based on metrics that reflect the SDGs. The assessment framework incentivizes corporations to improve performance related to:
   • SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action) by evaluating energy productivity and greenhouse gas emissions.
   • SDG 8 (Decent Work and Economic Growth) by assessing worker safety, employee turnover, and fair wage practices.
   • SDG 5 (Gender Equality) by measuring gender diversity on boards and in executive management.
   • SDG 9 (Industry, Innovation, and Infrastructure) by rewarding investment in sustainable innovation.
2. Sustainability Rating Methodology: The organization’s proprietary rating methodology underpins a leading global sustainability index. This framework provides a transparent mechanism for investors to align capital with companies demonstrating superior performance on SDG-related issues, thereby mobilizing private finance for sustainable development.
3. The Terra Carta Seal: Corporate Knights’ methodology is utilized to determine the recipients of the Terra Carta Seal, an initiative launched by His Majesty King Charles III. This application of their research directly supports a global framework encouraging the private sector to commit to and invest in a sustainable future, reinforcing the multi-stakeholder partnerships essential for achieving the SDGs.

Analysis of the Article in Relation to Sustainable Development Goals (SDGs)

1. Which SDGs are addressed or connected to the issues highlighted in the article?

   The article’s focus on corporate sustainability, sustainable economy, and financial ratings connects to several Sustainable Development Goals (SDGs). The primary SDGs addressed are:

   • SDG 12: Responsible Consumption and Production: The core mission of Corporate Knights, as described in the article, is to produce “global sustainability rankings, research reports and financial product ratings based on corporate sustainability performance.” This directly supports the goal of ensuring sustainable consumption and production patterns by encouraging and evaluating sustainable corporate practices.
   • SDG 17: Partnerships for the Goals: The article highlights collaboration and partnerships, which is the essence of SDG 17. It mentions releasing its flagship ranking during the “World Economic Forum” and its methodology being used to determine recipients of the “Terra Carta Seal, launched at COP26 by His Majesty King Charles III.” This demonstrates multi-stakeholder partnerships to advance sustainability.
   • SDG 8: Decent Work and Economic Growth: By promoting a “sustainable economy” and rating corporations on their sustainability, the work described in the article supports the goal of achieving sustainable economic growth. It encourages decoupling economic growth from environmental degradation.
   • SDG 9: Industry, Innovation, and Infrastructure: The focus on “corporate sustainability performance” incentivizes industries to innovate and adopt more sustainable and environmentally sound practices and technologies, contributing to the goal of building resilient infrastructure and fostering sustainable industrialization.

2. What specific targets under those SDGs can be identified based on the article’s content?

   Based on the activities described, the following specific SDG targets can be identified:

   • Target 12.6: Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle. The entire business model of Corporate Knights, which involves creating the “Global 100 Most Sustainable Corporations in the World” ranking and producing “research reports and financial product ratings based on corporate sustainability performance,” is a direct mechanism to encourage and measure the adoption of these practices.
   • Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources. The article mentions that Corporate Knights is a “research B Corp” that produces and shares knowledge (rankings, reports). Its collaboration with the World Economic Forum and the Terra Carta Seal initiative are clear examples of multi-stakeholder partnerships mobilizing knowledge to direct financial resources towards sustainability.
   • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships. The partnerships mentioned, such as with the World Economic Forum and the royal-led Terra Carta Seal, are prime examples of the public-private and civil society collaborations this target aims to promote.
   • Target 8.4: Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation. By ranking companies on sustainability, Corporate Knights implicitly promotes resource efficiency and other practices that help decouple growth from environmental impact, which are key components of their “rating methodology.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

   The article does not mention official UN SDG indicators, but it implies several metrics and tools that function as indicators to measure progress towards the identified targets:

   • Corporate Sustainability Performance Ratings: The article states that Corporate Knights produces “financial product ratings based on corporate sustainability performance.” This performance rating itself is a key indicator used to measure and compare how well companies are adopting sustainable practices (relevant to Target 12.6).
   • The “Global 100 Most Sustainable Corporations in the World” Ranking: This annual ranking serves as a composite indicator of corporate leadership in sustainability. The methodology and results provide a benchmark for corporate sustainability (relevant to Target 12.6).
   • Performance of Global Sustainability Index: The article mentions its methodology powers “the world’s #1 net total return global sustainability index.” The performance of this index is a financial indicator that measures the market’s valuation of sustainable companies, reflecting the mobilization of financial resources towards sustainable development (relevant to Target 17.16).
   • Number of Terra Carta Seal Recipients: The use of their methodology to “determine recipients of the Terra Carta Seal” implies that the number of companies meeting this standard is an indicator of the successful adoption of high-level sustainability commitments within the private sector (relevant to Targets 12.6 and 17.17).

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article. In this table, list the Sustainable Development Goals (SDGs), their corresponding targets, and the specific indicators identified in the article.

   SDGs	Targets	Indicators (Implied from the article)
   SDG 12: Responsible Consumption and Production	Target 12.6: Encourage companies to adopt sustainable practices and integrate sustainability information into their reporting cycle.	Corporate sustainability performance ratings. The “Global 100 Most Sustainable Corporations in the World” ranking.
   SDG 17: Partnerships for the Goals	Target 17.16: Enhance the global partnership for sustainable development… that mobilize and share knowledge… and financial resources. Target 17.17: Encourage and promote effective public, public-private and civil society partnerships.	Performance of the “net total return global sustainability index.” Number of companies awarded the “Terra Carta Seal” based on the rating methodology.
   SDG 8: Decent Work and Economic Growth	Target 8.4: Improve global resource efficiency in consumption and production and decouple economic growth from environmental degradation.	Metrics within the “rating methodology” used for corporate sustainability rankings (implied).
   SDG 9: Industry, Innovation, and Infrastructure	Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable.	Inclusion and ranking of companies in the “Global 100” list, indicating leadership in sustainable industrial practices.

Source: corporateknights.com