KBI Global Investors evolves its impact research methodology

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KBI Global Investors evolves its impact research methodology

KBI Global Investors has evolved its research methodology, adding 13 additional business activities on its Energy Solutions strategy and nine on its Water strategy.  Today the firm released the Revenue Alignment SDG Score (RASS) impact measurement scores for 2019 for each of the strategies.

The RASS impact measurement scores for 2019 for each of the strategies claims to show, by revenue impact, how every pound of investment in each company it holds in the portfolios correlates with the Sustainable Development Goals (SDGs).

The wealth manager said the Global Resource Solutions (GRS) strategy delivered a particularly high RASS score of 74.7% (the percentage of revenues contributing to the achievement of the SDGs), with SDG9 (Industry, Innovation and Infrastructure), SDG6 (Clean Water and Sanitation), SDG11 (Sustainable Cities and Communities), SDG7 (Affordable and Clean Energy) and SDG2 (Zero Hunger) the SDGs to which the GRS strategy contributes most. This is a net figure - as with the RASS scores for each of the four Natural Resources strategies - a 3.3% deduction being made to the GRS score in respect of negative contribution.

The company announced it had quantified the revenue impact of constituent portfolio holdings in each of its natural resources strategies to the SDGs."

In compiling the research, KBIGI's Responsible Investing Committee this year focused heavily on business activities related to fossil fuels, aerospace and emissions, the mining of lithium, the classification of Materials Treatment (which is largely related to the weight of autos) and the production of palm oil - adding 13 additional business activities on the Energy Solutions strategy and nine on its Water strategy.

KBI Global Investors aligned its investment strategies with the UN Sustainable Development Goals (SDGs) from their introduction in 2015.

Two years ago, with growing numbers of investors looking to achieve impact through investment in public equities, the company announced it had quantified the revenue impact of constituent portfolio holdings in each of its natural resources strategies to the SDGs and published the findings of its inaugural RASS research study, including a revenue impact score for each strategy. 

According to KBIGI, the company remains one of a small band of managers with this type of capability.

Author spotlight

Christopher Copper-Ind

Christopher Copper-Ind is editor-in-chief of International Investment. Before this, he was editorial director of The Business Year, from 2014 to 2017.