We believe that companies which contribute to achieving the Sustainable Development Goals (SDGs) are capable of creating positive social and environmental impacts – and are also exposed to the drivers of future growth. We created the Hermes SDG Taxonomy to find investment opportunities directly connected to the goals by identifying impactful businesses poised to be the growth champions of tomorrow.
At their inception, the 17 SDGs were designed to appeal to the broadest audience possible rather than being a framework for sustainable investment. The Hermes SDG Taxonomy therefore seeks to prove clear links between the 169 targets within the SDGs and potential investments in a logical and transparent way. It is a living body of research, enabling us to highlight clear opportunities today and adapt our findings as new information comes to light.
Please find the Hermes SDG Taxonomy below. To start exploring, click on an SDG icon.
Back to the SDGs
Micro-lending
Issue - Only 27% of people aged 15 plus have formal savings, and 11% have formal borrowing, according to the World Bank. Financial account ownership is lower among young adults, those with less education, women and poorer adults.
Contribution - Micro-lending focuses on expanding access to banking services to previously unbanked populations. While evidence of impact is context-dependent, there seems to be positive impacts on household consumption and women's health.
Evidence risks
Execution risks
Financial inclusion
Mobile financial services in developing countries
Issue - Only 27% of people aged 15 plus have formal savings, and 11% have formal borrowing, according to the World Bank. Financial account ownership is lower among young adults, those with less education, women and poorer adults.
Contribution - Research in Kenya shows that M-Pesa (mobile phone based money transfer) users were able to fully absorb large negative income shocks (such as job loss, livestock death, harvest or business failure, or poor health) without any reduction in household income, whereas statistically-comparable non-users saw consumption fall on average 7%.
Execution risks
Financial inclusion
Affordable housing
Issue - Affordable housing is usually defined as households who can afford to pay using no more than 30% of income. The number of low-income urban households affected today by lack of access is 330m, which could grow to 440m by 2025, according to McKinsey. The lack of affordable housing has many negative effects. Recruitment and retention problems can particularly affect lower-paid employees, such as key workers, with implications for the delivery of essential public services. High house prices can lead to longer commutes and increased congestion, which can have a negative impact on quality of life, with long-term implications for economic growth and sustainability.
Contribution - Loans targeted at low-income groups can help accelerate access to property ownership at an affordable cost. Affordable housing can also be offered through rental models, making it accessible at a reasonable monthly rate without the need for upfront capital.
Execution risks
Financial inclusion
Micro-irrigation
Issue - The majority of the world's poor work in small-scale agriculture. Of the 75% of the worldÕs poor that live in rural areas, 80% directly or indirectly depend on agriculture as their main source of income and employment according to the International Finance Corporation (IFC). Agriculture contributes 4.6% of global GDP and provides work to 27% of the labour force.
Contribution - Micro-irrigation substantially increases agricultural productivity and therefore farmers' income, by between 30-100%, according to the World Bank.
Execution risks
Food security
Directly investable
Directly investable
Back to the SDGs
Access to consumer staples
Issue - The proportion of undernourished people worldwide declined from 15% in 2000-2002 to 11% in 2014-2016. Yet about 793m people are still undernourished globally. Food poverty touches many developing countries, but also the lower income groups in developed countries.
Contribution - Companies can help make safe and nutritious food cheaper and more widely-available across geographies, reducing the relative weight of spending on basic staples within a total household budget. While the lowest-income countries spend more than half of the household budget on food, this share drops to less than 20% for higher-income countries.
Execution risks
- Food security
Directly investable
Smart irrigation
Issue - The majority of the world's poor work in small-scale agriculture. Of the 75% of the worldÕs poor that live in rural areas, 80% directly or indirectly depend on agriculture as their main source of income and employment, according to the International Finance Corporation (IFC). Agriculture contributes 4.6% of global GDP and provides work to 27% of the labour force.
Contribution - Micro-irrigation substantially increases agricultural productivity and therefore farmers' income, by between 30-100%, according the the World Bank. Micro-irrigation reduces reliance on seasonal rainfall and weather-related shocks.
Contribution risks
- Food security
Micro-lending
Issue - Only 27% of people aged 15 plus have formal savings, and 11% have formal borrowing, according to the World Bank. Financial account ownership is lower among young adults, those with less education, women and poorer adults.
Contribution - Micro-lending focuses on expanding access to banking services to previously unbanked populations. While evidence of impact is context-dependent, there seems to be positive impacts on household consumption and women's health.
Evidence risks
Execution risks
- Financial inclusion
Organic food production
Issue - Agricultural production will need to increase by 70% to meet global demand in 2050, according to the OECD. But yield gains have been consistently declining over the last decades. Crop yields have been progressing at slightly more than 1% since the 1990s. At the same time, agriculture's environmental impact has been vast and needs to be addressed: land-use change, as well as nitrogen fertilisation is a major contributor to greenhouse gas emissions - the latter also contributing to deterioration in water quality. Ecosystem degradation is also leading to loss of biodiversity, especially as crops focus on a small number of species.
Contribution - Systematic reviews of academic studies show strong evidence that organic agriculture improves soil quality, biodiversity, and some evidence that it also improves water quality, reduces greenhouse gas emissions and reduces farmers' pesticide exposure.
Stakeholder participation risks
Execution risks
Evidence risks
- Food security
Organic food retail
Issue - Agricultural production will need to increase by 70% to meet global demand in 2050, according to the OECD. But yield gains have been consistently declining over recent decades. Crop yields have been progressing at slightly more than 1% since the 1990s. At the same time, agriculture's environmental impact has been vast and needs to be addressed; land-use change, as well as nitrogen fertilisation is a major contributor to greenhouse gas emissions - the latter also contributing to deterioration in water quality. Ecosystem degradations is also leading to loss of biodiversity, especially as crops focus on a small number of species.
Contribution - Systematic reviews of academic studies show strong evidence that organic agriculture improves soil quality, biodiversity, and some evidence that it also improves water quality, reduces greenhouse gas emissions and reduces farmers' pesticide exposure.
Stakeholder participation risks
Execution risks
Evidence risks
- Food security
Precision agriculture
Issue - Agricultural production will need to increase by 70% to meet global demand in 2050, according to the OECD. But yield gains have been consistently declining over the recent decades. Crop yields have been progressing at slightly more than 1% since the 1990s. Technology adoption is very low in agriculture, leading to low productivity gains. Farmers typically favour 'tried-and-tested' techniques.
Contribution - Research reports indicate that there could be an 18% crop yield increase thanks to precision fertiliser application, 13% with precision planting, 13% with compaction reduction via fleets of smaller tractors, 4% with precision spraying (Goldman Sachs). This means that less land and chemicals would be required to produce the same amount of food.
Stakeholder participation risks
Contribution risks
- Food security
Plant-based foods
Issue -
Population-growth places increasing pressure on scarce natural resources. Agriculture accounts for 92% of the freshwater footprint of humanity; almost one third relates to animal products. Mekonnen and Hoekstra (2012) show that animal products have a large water footprint relative to crop products.
More than 80% of farmland is used for livestock but it produces just 18% of food calories (Poore & Nemecek, Science Journal 2018).
Contribution -
There is strong evidence supporting plant-based diets as a sustainable solution to helping to reduce food shortages, land-degradation and fresh water intake (Webber, 2017).
The lower land-use footprint also means that fewer chemicals are necessary to produce the same amount of protein, thus reducing the risk of contamination of rivers etc.
Execution risks
Contribution risks
- Food security
Sustainable aquaculture
Issue - Animal farming is a highly-inefficient way of creating proteins for human consumption. Beef production in particular requires 10-times more land use and greenhouse gas emissions than farmed fish.
Contribution - According to the Food and Agriculture Organisation, sustainable aquaculture is among the most sustainable of animal protein production systems. It does not use land, and has a much lower carbon footprint than any kind of animal protein. Sustainable aquaculture does not use antibiotics and other chemicals that could be harmful to the marine ecosystem.
Execution risks
Contribution risks
- Food security
Sustainable food ingredients
Issue - Excessive practices in food processing are linked to negative health effects such as the over-use of sugar contributing to diabetes, or artificial sweeteners with potentially carcinogenic effects, etc.
Contribution - Food products can be reformulated into healthier versions that contain, for instance, less sugar or more nutritious elements. The addition of iodine in salt, for example, has been a major contributor to reducing iodine deficiency.
Contribution risks
- Food security
Directly investable
Directly investable
Directly investable
Back to the SDGs
Hospitals in developing countries
Issue -
In 2010, 800m people spent over 10% of their household budget on healthcare and 97m were pushed into extreme poverty by health spending (World Health Organisation).
In 2016 alone, 7,000 newborn babies died every day. Newborn deaths made up 46% of all child deaths, an increase from 41% in 2000. Children in the poorest households are nearly twice as likely to die before the age of five than those from the richest. Most of these deaths are entirely preventable (UNICEF).
Contribution -
Better-staffed health systems are linked with improved health outcomes. Better access to healthcare is closely correlated with higher scores in the Human Development Index.
Prematurity, complications during labour and birth, and infections like sepsis, pneumonia, tetanus and diarrhoea are among the leading causes of death Ð all of which can be treated or prevented with simple, affordable solutions (UNICEF).
Execution risks
Stakeholder participation risks
- Health & Well-being
Hospitals in developing countries
Issue -
In 2010, 800m people spent over 10% of their household budget on healthcare, and 97m were pushed into extreme poverty by health spending (World Health Organisation).
In 2016 alone, 7,000 newborn babies died every day. Newborn deaths made up 46% of all child deaths, an increase from 41% in 2000. Children in the poorest households are nearly twice as likely to die before the age of five than those from the richest. Most of these deaths are entirely preventable (UNICEF).
Contribution -
Better-staffed health systems are linked with improved health outcomes. Better access to healthcare is closely correlated with higher scores in the Human Development Index.
Prematurity, complications during labour and birth, and infections like sepsis, pneumonia, tetanus and diarrhoea are among the leading causes of death Ð all of which can be treated or prevented with simple, affordable solutions (UNICEF).
Execution risks
Stakeholder participation risks
- Health & Well-being
AIDS medicine
Issue - HIV is the 14th largest cause of death globally, representing 1.9% of deaths and disproportionally affects low income countries (World Health Organisation).
Contribution - Most people who are treated for HIV take three or more drugs. This is called antiretroviral therapy (ART) or highly-active antiretroviral therapy (HAART). Combination therapy is the most effective treatment for HIV but it remains a therapeutic area in need of medical innovation. Life expectancy is getting better: between 1996 and 2010, life expectancy in 20-year-old patients starting ART increased by about nine years in women and 10 years in men.
Execution risks
Stakeholder participation risks
Efficiency risks
Evidence risks
- Health & Well-being
Tropical disease medicine
Issue -
Malaria is the 16th largest cause of death globally, representing 1.3% of deaths (World Health Organisation). Yet it is an under-researched and under-developed area. 16 out of 1,393 new chemical entities were approved for neglected and tropical diseases (NTDs) between 1975 and 1999 (~1%).
The WHO estimates that 1bn people are afflicted by NTDs.
Contribution - Many tropical diseases are not seeing the research attention that they deserve. The World Health Organisation has developed a list of neglected tropical disease as priority areas for research and development of treatments in those areas.
Stakeholder participation risks
Evidence risks
- Health & Well-being
Vaccines providers
Issue - Infectious disease remains a major cause of avoidable mortality globally. This is even more so in developing countries. Communicable diseases represent nearly 20% of deaths worldwide and 30% of disability-adjusted life years (Institute for Health Metrics and Evaluation).
Contribution - Because they are relatively inexpensive, and focus on prevention, vaccines are a highly cos- effective health intervention. The effect of vaccines in the history of medicine has been dramatic. For example, more than 15,000 Americans died from diphtheria in 1921 before there was a vaccine. Only two cases of diphtheria have been reported to the Centre for Disease Control and Prevention between 2004 and 2014. According to the World Health Organisation: "Vaccination has greatly reduced the burden of infectious diseases. Only clean water, also considered to be a basic human right, performs better".
Execution risks
Stakeholder participation risks
Efficiency risks
Evidence risks
- Health & Well-being
Food testing
Issue - Pathogens can be transmitted by food contaminated by infected persons. Food supply chains thus play an important role in spreading communicable diseases.
Contribution - Testing of food allows for the detection of pathogens and their removal, thus limiting the spread of a disease and decreasing its likely impact.
Execution risks
- Health & Well-being
Cleaning and hygiene products and services
Issue - While non-communicable diseases are making up an increasing share of disease burden worldwide, communicable diseases still represent a major source of health problems, with 20% of deaths and 30% of quality-adjusted life years liked to communicable disease.
Contribution - Cleaning and sanitation products and services help improve hygiene, removing pathogens that may otherwise contribute to the spread of communicable diseases.
Execution risks
- Health & Well-being
Prevention, diagnosis & treatment for diabetes
Issue -
"The number of people with Type 2 Diabetes has grown rapidly. Diabetes 2 is highly-correlated to obesity and physical inactivity. The International Diabetes Foundation estimates that between 2014 and 2035, the number of people living with diabetes globally will rise from 387m to 592m (a 53% increase), with the largest regional increases coming in Africa (109%) and 96% inMENA (Middle East and North Africa).
"People with Type 1 diabetes require insulin for survival Ð without insulin, even for a short time, these individuals may face life-threatening consequences. Yet an array of international and national barriers interact to hamper access to insulin, and many in low- and middle-income countries do not receive this essential treatment" (World Health Organisation, 2016).
Contribution - Current treatment of diabetes is still inadequate; good glucose regulation is difficult to achieve, and current drugs are linked to increased risk of cardiovascular disease and weight gains. Innovation in diabetes treatment shows early evidence of superior cardio-vascular, hypoglycemia and weight-loss outcomes.
Execution risks
Stakeholder participation risks
Efficiency risks
Contribution risks
Evidence risks
- Health & Well-being
Prevention, diagnosis & treatment for cardiovascular disease
Issue - Cardiovascular disease is the largest cause of death in the OECD, representing 31% of deaths. It is also the largest cause of death globally, at 32% of the total (Institute for Health Metrics and Evaluation).
Contribution - Raised blood pressure is a major risk factor for cerebrovascular disease, coronary heart disease, and cardiac and renal failure. Treating raised blood pressure has been associated with a 35Ð40% reduction in the risk of stroke and at least a 16% reduction in the risk of myocardial infarction. (World Health Organisation)
Execution risks
Stakeholder participation risks
Efficiency risks
Evidence risks
- Health & Well-being
Prevention, diagnosis & treatment for cancer
Issue - Cancer is the second-largest cause of death in the OECD, representing 26% of deaths. It is also the second-largest cause of death globally, at 17% of the total (Institute for Health Metrics and Evaluation).
Contribution -
There are three exciting new areas for the treatment of cancer:
- immunotherapy;
- gene-sequencing and editing (particularly liquid biopsy);
- more-targeted radiotherapy.
Execution risks
Stakeholder participation risks
Contribution risks
Evidence risks
- Health & Well-being
Prevention, diagnosis & treatment of chronic respiratory diseases
Issue - Respiratory disease is the fourth-largest cause of death in the OECD, representing 9.6% of deaths. It is also the third cause of death globally, at 13% of the total. Chronic obstructive pulmonary disease, asthma, acute lower respiratory tract infections, tuberculosis and lung cancer are among the most-common causes of severe illness and death worldwide. Lower respiratory tract infection kills more people than (HIV), tuberculosis and malaria combined (Institute for Health Metrics and Evaluation).
Contribution - More than 90% of chronic obstructive pulmonary disease deaths occur in low-income and middle-income countries. A large part could be prevented with access to adequate treatment.
Execution risks
Stakeholder participation risks
Contribution risks
Evidence risks
- Health & Well-being
Healthy food producers
Issue - 39% of adults aged 18 years and over were overweight in 2016, and 13% were obese. The worldwide prevalence of obesity nearly tripled between 1975 and 2016. Most of the world's population live in countries where obesity kills more people than being underweight does. Raised body mass index is a major risk factor for noncommunicable diseases such as cardiovascular diseases and some cancers (World Health Organisation).
Contribution - Obesity and related noncommunicable diseases are largely preventable. As Kumanyika et al reported in the International Journal of Obesity: "Genes are important in determining a personÕs susceptibility to weight gain, but societal changes are driving the epidemic; the rapid rises in obesity rates around theworld have occurred in too short a time for there to have been any evolutionary genetic changes within populations". Supportive environments and communities are fundamental in shaping peopleÕs choices, by making the choice of healthier foods and regular physical activity the easiest.
Execution risks
Evidence risks
External risks
- Health & Well-being
Sports equipment and services
Issue - 39% of adults aged 18 years and over were overweight in 2016, and 13% were obese. The worldwide prevalence of obesity nearly tripled between 1975 and 2016. Most of the world's population live in countries where obesity kills more people than being underweight does. Raised body mass index is a major risk factor for noncommunicable diseases such as cardiovascular diseases and some cancers (World Health Organisation).
Contribution - Physical activity has significant health benefits and contributes to prevent noncommunicable diseases. Globally, one in four adults is not active enough. According to McKinney et all in British Columbia Medical Journal, 2016: "High levels of physical activity and cardiorespiratory fitness are associated with lower all-cause and cardiovascular mortality. Furthermore, physical activity can reduce the development of chronic diseases such as hypertension, diabetes, stroke, and cancer. Additionally, physical activity can promote healthy cognitive and psychosocial function."
Evidence risks
Stakeholder participation risks
- Health & Well-being
Mental health medicine/services
Issue - According to estimates from the World Health Organisation (WHO), over 800,000 people die by suicide every year. Yet suicides are preventable with timely, evidence-based interventions. In high-income countries, mental disorders are present in up to 90% of people who die by suicide. Alcohol and other substance use disorders contribute to 25?50% of all suicides, and suicide risk is further increased if alcohol or substance use is co-morbid with other psychiatric disorders.
Contribution - Quality mental healthcare centres and products dealing with substance use disorders, while not the only solution to mental health disorders, can play an important role in treatment.
Execution risks
Stakeholder participation risks
- Health & Well-being
Mental health medicine/services
Issue - According to estimates from the World Health Organisation (WHO), over 800,000 people die by suicide every year. Yet suicides are preventable with timely, evidence-based interventions. In high-income countries, mental disorders are present in up to 90% of people who die by suicide. Alcohol and other substance use disorders contribute to 25?50% of all suicides, and suicide risk is further increased if alcohol or substance use is co-morbid with other psychiatric disorders.
Contribution - Quality mental healthcare centres and products dealing with substance use disorders, while not the only solution to mental health disorders, can play an important role in treatment.
Execution risks
Stakeholder participation risks
- Health & Well-being
Car safety equipment
Issue - Road accidents are the ninth source of death globally, representing 2.2% of deaths, or 1.3m cases every year (Institute for Health Metrics and Evaluation). In the UK, 94% of car accidents are thought to be caused by human error (Royal Society for the Prevention of Accidents).
Contribution - Certain technological innovations can have a dramatic effect on safety. Seat belts, for instance, have dramatically reduced the risk of death and serious injury. Among drivers and front-seat passengers, seat belts reduce the risk of death by 45%, and cut the risk of serious injury by 50% (Centre for Disease Control and Prevention).
Execution risks
Stakeholder participation risks
- Future mobility
Vehicle safety
Issue - Road accidents are the ninth source of death globally, representing 2.2% of deaths, or 1.3m cases every year (Institute for Health Metrics and Evaluation). In the UK, 94% of car accidents are thought to be caused by human error (Royal Society for the Prevention of Accidents).
Contribution - Active safety products (as opposed to passive safety products such as seat belts, brakes etc) are gaining critical importance as cars become more autonomous. As cars transition along the automated vehicle spectrum, the responsibility for road safety will shift from the human driver towards full systems responsibility. The quality of sensors (such as cameras and radars) as well as underlying software will be become key to road safety. Autonomous vehicles can also play a role; so far pilot tests have shown that autonomous vehicles have a much better safety performance than human-driven vehicles.
External risks
Execution risks
Stakeholder participation risks
- Future mobility
Contraceptives
Issue - Worldwide in 2017, only 63% of women aged 15-49 were using some form of contraception. At least one in 10 married or in-union women in most regions of the world have an unmet need for family planning; that is to say, they want to stop or delay childbearing but are not using any method of contraception to prevent pregnancy - 214m women of reproductive age in developing countries who want to avoid pregnancy are not using a modern contraceptive method (UN).
Contribution - According to the World Health Organisation: "A womanÕs ability to choose if and when to become pregnant has a direct impact on her health and well-being. Family planning allows spacing of pregnancies and can delay pregnancies in young women at increased risk of health problems and death from early childbearing. It prevents unintended pregnancies, including those of older women who face increased risks related to pregnancy. Family planning enables women who wish to limit the size of their families to do so. Evidence suggests that women who have more than four children are at increased risk of maternal mortality." Also, family planning and contraception reduce the need for abortion, which can be unsafe due to lack of service provision in some countries.
Contribution risks
Stakeholder participation risks
Evidence risks
- Health & Well-being
Affordable private health insurance
Issue - In 2010, 800m people spent over 10% of their household budget on healthcare, and 97m were pushed into extreme poverty by health spending (World Bank).
Contribution - Public financing plays a dominant role in expanding financial coverage. The more pressing challenge is how to deliver universal healthcare (UHC) in practice, expanding coverage of high-quality services and developing capacity throughout health systems. The financing gap for UHC is substantial. Chatham House estimates that a basic healthcare system costs $86 per capita per year.
Execution risks
Stakeholder participation risks
- Financial inclusion
Healthcare Information Technology
Issue - Healthcare systems in developed countries are under increasing financial pressure due to rising health costs as a percentage of GDP. At the same time, in developing countries a large part of health spending is out of pocket, which decreases access and reinforces inequalities.
Contribution - Better collection, management and analysis of health data has the potential to improve the cost-effectiveness of healthcare delivery.
External risks
- Health & Well-being
Telemedicine
Issue - There is a global shortage of medical staff. Health systems are also under increasing financial pressure.
Contribution - Telemedicine can help broaden access to medical staff to a wider population, regardless of location. It can also be more cost-effective than visits to physical health centres.
External risks
Stakeholder participation risks
- Health & Well-being
Hospitals in developing countries
Issue -
"In 2010, 800m people spent over 10% of their household budget on healthcare, and 97m were pushed into extreme poverty by health spending" (World Health Organisation).
"In 2016 alone, 7,000 newborn babies died every day. Newborn deaths made up 46% of all child deaths, an increase from 41% in 2000. Children in the poorest households are nearly twice as likely to die before the age of five than those from the richest. Most of these deaths are entirely preventable" (UNICEF).
Contribution -
Better-staffed health systems are linked with improved health outcomes. Better access to healthcare is closely correlated with higher scores in the Human Development Index.
"Prematurity, complications during labour and birth, and infections like sepsis, pneumonia, tetanus and diarrhoea are among the leading causes of death Ð all of which can be treated or prevented with simple, affordable solution" (UNICEF).
Execution risks
Stakeholder participation risks
- Health & Well-being
Vaccine providers
Issue - Infectious disease remains a major cause of avoidable mortality globally. This is even more prevalent in developing countries. Infectious disease represent nearly 30% of deaths worldwide (Institute for Health Metrics and Evaluation).
Contribution - Because they are relatively inexpensive, and focus on prevention, vaccines are a highly cost-effective health intervention. Their effect in the history of medicine have been dramatic. For example, more than 15,000 Americans died from diphtheria in 1921 before there was a vaccine. Only two cases of diphtheria have been reported to the Centre for Disease Control and Prevention between 2004 and 2014. According to the World Health Organisation: "Vaccination has greatly reduced the burden of infectious diseases. Only clean water, also considered to be a basic human right, performs better."
Execution risks
Stakeholder participation risks
Contribution risks
Evidence risks
- Health & Well-being
Generic drug providers
Issue - Healthcare systems in developed countries are under increasing financial pressure due to rising health costs as a percentage of GDP. At the same time, in developing countries a large part of health spending is out of pocket, which decreases access and reinforces inequalities.
Contribution - In the UK, according to the Kings Fund, "increasing generic prescribing has saved the NHS around £7.1bn since 1976 and allowed 490m more items to be prescribed without an increase in total spending".
Execution risks
Stakeholder participation risks
Contribution risks
Evidence risks
- Health & Well-being
Biosimilar drug providers
Issue - Healthcare systems in developed countries are under increasing financial pressure due to rising health costs as a percentage of GDP. At the same time, in developing countries a large part of health spending is out of pocket, which decreases access and reinforces inequalities.
Contribution - Similar to generics, although to a lesser extent, increased prescription of biosimilars can help reduce healthcare costs while maintaining standards of care.
Execution risks
Stakeholder participation risks
Contribution risks
Evidence risks
- Health & Well-being
Environmental services
Issue - Local governments and municipalities are often faced with multiple, complex environmental issues to tackle: local pollution, road congestion, waste management, etc. Companies, too, may not have the internal expertise and ability to analyse and address environmental issues.
Contribution - Companies with strong expertise in analysing and acting on environmental issues can help public authorities and private companies find better solutions to manage their environmental impacts.
Execution risks
Evidence risks
- Circular economy
Water treatment
Issue - Only 71% of people have access to safely-managed water. In low- and middle-income countries, 38% of healthcare facilities lack an improved water source, 19% do not have improved sanitation, and 35% lack water and soap for handwashing (World Health Organisation).
Contribution - Water treatment is one of the most straightforward, cost-effective ways of improving public health, because it greatly decreases the risk of communicable diseases. It also helps improve re-use of water, which reduces the burden on aquifers.
Execution risks
Contribution risks
- Circular economy
Organic food production
Issue - "Agricultural production will need to increase by 70% to meet global demand in 2050, according to the OECD. At the same time, agriculture's use of chemicals may lead to negative health effects. According to Nicolopoulou-Stamati (2016), the numerous negative health effects that have been associated with chemical pesticides include dermatological, gastrointestinal, neurological, carcinogenic, respiratory, reproductive, and endocrine effects. Furthermore, high occupational, accidental, or intentional exposure to pesticides can result in hospitalization and death.
Contribution - Systematic reviews of academic studies provide strong evidence that organic agriculture improves soil quality, biodiversity, and some evidence that it also improves water quality, reduces greenhouse gas emissions and reduces farmers' pesticide exposure.
Stakeholder participation risks
Execution risks
Evidence risks
- Circular economy
Waste management
Issue - Growing population, rising standards of living, industrialisation, and production and consumption of new products are acting in concert to generate greater quantities of solid wastes. And this in turn is creating serious problems for management and proper disposal of waste. Without waste management there is an increased likelihood of disease spreading, which has a negative impact on people's health.
Contribution - Waste management ensures recycling and re-use are possible, supporting a circular economy and hazardous materials can be dealt with appropriately, reducing the negative impact on population health from the spread of disease.
Stakeholder participation risks
Contribution risks
- Circular economy
Directly investable
Directly investable
Directly investable
Directly investable
Back to the SDGs
Affordable private primary education providers
Issue - Half of countries failed to meet the UN Millenium Development Goals of universal primary education by 2015. Only 12 out of 157 countries are currently on track to meet the 2030 Sustainable Development Goal on inclusive and equitable education; 10% of people globally have no education, not even primary (UN).
Contribution - The World Bank estimates that globally, each year of additional schooling is associated with a 9% increase in wages for men, and 11% for women. It even has positive impacts on health, showing a lower probability of chronic health conditions, and longer life expectancy. But quality is important. The World Bank also shows that in a country like South Africa, learning-adjusted schooling is almost half that of the actual official years, due to poor learning outcomes.
Execution risks
Stakeholder participation risks
- Education
Private childcare services
Issue - Access to childcare remains low. Within the OECD, only about 35% of children aged up to two years participate in formal childcare services.
Contribution - Wider provision of childcare is linked to a better-skilled, more employable and more productive population, and less waste of the human potential of women and underprivileged groups. Early-years childcare can lead to real economic returns to investments from 7% to 13% in better skills development, higher employment and other benefits. Affordability is important though - in the OECD, parents earning the average wage spend 12% of their family's net income on childcare.
Execution risks
Stakeholder participation risks
- Education
Educational publishers
Issue - Economies are faced with the growing challenge of integrating people in the workforce at a time when new technologies may make some of those jobs disappear - and others emerge. According to McKinsey: "Unemployment and underemployment are high around the world. In the United States and the 15 core European Union countries, there are 285m adults who are not in the labour force - and at least 100m of them would like to work more. Some 30-45 % of the working-age population around the world is underutilized - that is, unemployed, inactive, or underemployed. This translates into some 850m people in the United States, the United Kingdom, Germany, Japan, Brazil, China, and India alone."
Contribution - Publishing of quality educational materials may help broaden access to education beyond the boundaries of schools and/or universities. Higher levels of education are also associated with higher wages at the individual level and, at the macro level, better economic prospects.
Execution risks
Stakeholder participation risks
- Education
Continuing education
Issue - Economies are faced with the growing challenge of integrating people in the workforce at a time when new technologies may make some of those jobs disappear - and others emerge. According to McKinsey: "Unemployment and underemployment are high around the world. In the United States and the 15 core European Union countries, there are 285m adults who are not in the labor force - and at least 100m of them would like to work more. Some 30-45 % of the working-age population around the world is underutilised - that is, unemployed, inactive, or underemployed. This translates into some 850m people in the United States, the United Kingdom, Germany, Japan, Brazil, China, and India alone."
Contribution - Availability of continuing education programmes can help improve skills and increase individuals' ability to adapt to economic changes leading to changes in job structures. Higher levels of education are also associated with higher wages at the individual level and, at the macro level, better economic prospects.
Execution risks
Stakeholder participation risks
- Education
Post-secondary education providers
Issue - There will be a shortfall in the number of workers educated to Ôcollege levelÕ or beyond across the world of 38-40m by 2030 (McKinsey Global Institute, 2012).
Contribution - Participation in post-secondary education leads to better health, greater civic participation and increased happiness (Global Access to Postsecondary Education).
Execution risks
Stakeholder participation risks
- Education
Directly investable
Affordable private primary education providers
Issue - Half of countries failed to meet the UN Millenium Development Goals of universal primary education by 2015. Only 12 out of 157 countries are currently on track to meet the 2030 Sustainable Development Goal on inclusive and equitable education; 10% of people globally have no education, not even primary. (UN)
Contribution - The World Bank estimates that globally, each year of additional schooling is associated with a 9% increase in wages for men, and 11% for women. It even has positive impacts on health, showing a lower probability of chronic health conditions, and longer life expectancy. But quality is important. The World Bank also shows that in a country like South Africa, learning-adjusted schooling is almost half that of the actual official years, due to poor learning outcomes.
Execution risks
Stakeholder participation risks
- Education
Directly investable
Directly investable
Directly investable
Directly investable
Back to the SDGs
Directly investable
Directly investable
Directly investable
Directly investable
Directly investable
Contraceptives
Issue - Worldwide in 2017, only 63% of women aged 15-49 were using some form of contraception. At least one in 10 married or in-union women in most regions of the world have an unmet need for family planning; that is to say, they want to stop or delay childbearing but are not using any method of contraception to prevent pregnancy - 214m women of reproductive age in developing countries who want to avoid pregnancy are not using a modern contraceptive method (UN).
Contribution - According to the World Health Organisation: "A womanÕs ability to choose if and when to become pregnant has a direct impact on her health and well-being. Family planning allows spacing of pregnancies and can delay pregnancies in young women at increased risk of health problems and death from early childbearing. It prevents unintended pregnancies, including those of older women who face increased risks related to pregnancy. Family planning enables women who wish to limit the size of their families to do so. Evidence suggests that women who have more than four children are at increased risk of maternal mortality." Also, family planning and contraception reduce the need for abortion, which can be unsafe due to lack of service provision in some countries.
Contribution risks
Stakeholder participation risks
Evidence risks
- Health & Well-being
Directly investable
Directly investable
Directly investable
Back to the SDGs
Public utilities in developing countries
Issue - In 2015, nearly 3bn people used a safely-managed sanitation service: 60% of these people lived in urban areas, with the other 40% living in rural areas. This means that two out of five people used safely-managed sanitation services in 2015. About 2bn people still lacked even a basic sanitation service; 70% of these live in rural areas (UN).
Contribution - Every dollar spent on water and sewage infrastructure can have a multiplier effect of up to $5 (Institute of Civil Engineers). Three out of four jobs are directly or indirectly dependent on water security. In 80% of households in the developing world, women and girls collect water. This restricts their access to education and other economic opportunities. As such, improving access to water can be a contributory factor in female empowerment in those countries (UN).
Execution risks
Contribution risks
- Water
Water testing & diagnostics
Issue - Almost 60% of all domestic wastewater flows is collected and safely treated. The untreated 41% presents risks to the environment and public health. (UN)
Contribution - Improved water treatment helps reduce the use of primary water resources, in particular from deep aquifers. It has positive public health implications as water quality is associated with better health outcomes.
Execution risks
- Water
Flow efficiency
Issue - Efficiency in water use is increasingly critical to the sustainability of economy activities. Global water demand for the manufacturing industry is expected to increase by 400% from 2000 to 2050. Energy production is generally water-intensive. Meeting ever-growing demands for energy will generate increasing stress on freshwater resources with repercussions on other users, such as agriculture and industry.
Contribution - Increasing water-use efficiency over time means decoupling economic growth from water use across the main water-using sectors of agriculture, industry, energy and municipal water supply. This has strong synergies with sustainable food production (Sustainable Development Goal 2 - or SDG 2), economic growth (SDG 8), infrastructure and industrialisation (SDG 9), cities and human settlements (SDG 11) and consumption and production (SDG 15).
Contribution risks
- Water
Water treatment
Issue - About 60% of all domestic wastewater flows is collected and safely treated. The untreated 41% presents risks to the environment and public health. (UN)
Contribution - Improved water treatment helps reduce the use of primary water resources, in particular from deep aquifers. It has positive public health implications as water quality is associated with better health outcomes.
Execution risks
Contribution risks
- Water
Water testing & diagnostics
Issue - About 60% of all domestic wastewater flows is collected and safely treated. The untreated 41% presents risks to the environment and public health. (UN)
Contribution - Improved water treatment helps reduce the use of primary water resources, in particular from deep aquifers. It has positive public health implications as water quality is associated with better health outcomes.
Execution risks
- Water
Water re-use
Issue - More than 2bn people globally are living in countries with excess water stress, defined as the ratio of total freshwater withdrawn to total renewable freshwater resources above a threshold of 25%. Northern Africa and Western Asia experience water stress levels above 60%, which indicates the strong probability of future water scarcity. (UN)
Contribution - Increasing water-use efficiency over time means decoupling economic growth from water use across the main water-using sectors of agriculture, industry, energy and municipal water supply. This has strong synergies with sustainable food production (Sustainable Development Goal 2 - or SDG 2), economic growth (SDG 8), infrastructure and industrialization (SDG 9), cities and human settlements (SDG 11) and consumption and production (SDG 15).
Execution risks
Contribution risks
- Water
Leak detection
Issue - 2.1tn gallons of drinking water, or 15% of total water supply, is lost to leaks in the US annually. (Chicago-based Center for Neighborhood Technology)
Contribution - Increasing water-use efficiency over time means decoupling economic growth from water use across the main water-using sectors of agriculture, industry, energy and municipal water supply. This has strong synergies with sustainable food production (Sustainable Development Goal 2 - or SDG 2), economic growth (SDG 8), infrastructure and industrialization (SDG 9), cities and human settlements (SDG 11) and consumption and production (SDG 15).
Execution risks
- Water
Desalination
Issue - Population growth and increasing socio-economic pressures have reduced the availability of freshwater resources. In the Middle East, availability dropped from 921 m3 per capita per year in 2002 to 727 m3 per capita per year a decade later, with 16 of the 22 Arab countries falling below the water scarcity level of 1,000 m3 per capita per year and able to withdraw on average only 292 m3 per capita per year in 2011. (UN)
Contribution - Desalination increases the availability of freshwater without exploiting existing freshwater reserves.
Stakeholder participation risks
Contribution risks
- Water
Micro-irrigation
Issue - Agriculture is responsible for the largest use of water globally, representing 70% of total freshwater use (World Bank). Most fields are still irrigated using flood-based techniques, which are highly inefficient: more than half of water is typically evaporated in the process.
Contribution - According to the Alliance for Water Efficiency: "Drip irrigation is arguably the most efficient method of providing water to trees, crops, gardens and landscapes. The efficiency of overhead irrigation, such as rotors, and pop-up sprayheads is typically 50% and rarely exceeds 70%. The efficiency of a well-designed drip irrigation system can reach nearly 100%."
Stakeholder participation risks
Contribution risks
- Water
Directly investable
Directly investable
Directly investable
Directly investable
Back to the SDGs
Utilities with high share of generation from renewable energy
Issue - Electricity and heat generation represents 25% of global greenhouse gas emissions and is the largest-emitting economic sector (Inter-governmental Panel on Climate Change).
Contribution - Renewables and fuel-switching would contribute to 38% of the necessary carbon dioxide emissions savings to reach the International Energy Agency's Sustainable Development Scenario.
Stakeholder participation risks
Contribution risks
- Energy transition
Wind Original Equipment Manufacturers (OEM)
Issue - Annual offshore wind installations are set to nearly double in the 2020s. With a yearly run-rate of around 9.5 gigawatts (GW) compared to 4GW in 2018, global capacity is forecast to reach 129GW in 2030. (Bloomberg New Energy Finance)
Contribution - On average, wind generation today will avoid approximately 0.70 metric tons of carbon dioxide (CO2) for every megawatt hour produced. A typical new wind turbine will avoid over 4,300 metric tons of CO2 production annually, nearly 900 cars' worth of CO2 emissions. Overall wind turbines have the potential to reduce CO2 emissions by 85 gigatonnes (Gt) for onshore and 14Gt for offshore. (Wind Solar Alliance)
Stakeholder participation risks
Contribution risks
- Energy transition
Wind developers
Issue - Annual offshore wind installations are set to nearly double in the 2020s. With a yearly run-rate of around 9.5 gigawatts (GW) compared to 4GW in 2018, global capacity is forecast to reach 129GW in 2030. (Bloomberg New Energy Finance)
Contribution - On average, wind generation today will avoid approximately 0.70 metric tons of carbon dioxide (CO2) for every megawatt hour produced. A typical new wind turbine will avoid over 4,300 metric tons of CO2 production annually, nearly 900 cars' worth of CO2 emissions. Overall wind turbines have the potential to reduce CO2 emissions by 85 gigatonnes (Gt) for onshore and 14Gt for offshore. (Wind Solar Alliance)
Stakeholder participation risks
Contribution risks
- Energy transition
Solar Original Equipment Manufacturers (OEM)
Issue - Electricity and heat generation represents 25% of global greenhouse gas emissions and is the largest-emitting economic sector (Inter-governmental Panel on Climate Change).
Contribution - Solar farms have the potential to reduce carbon emissions by 37 gigatonnes (Gt) by 2050, with a further 25Gt for rooftop solar and 11Gt for concentrated solar, according to Drawdown.
Stakeholder participation risks
Contribution risks
- Energy transition
Solar developers
Issue - Electricity and heat generation represents 25% of global greenhouse gas emissions and is the largest-emitting economic sector (Inter-governmental Panel on Climate Change).
Contribution - Solar farms have the potential to reduce carbon emissions by 37 gigatonnes (Gt) by 2050, with a further 25Gt for rooftop solar and 11Gt for concentrated solar, according to Drawdown.
Stakeholder participation risks
Contribution risks
- Energy transition
Smart grid infrastructure
Issue - Electricity and heat generation represents 25% of global greenhouse gas emissions and is the largest-emitting economic sector (Inter-governmental Panel on Climate Change).
Contribution - Renewables and fuel-switching would contribute to 38% of the necessary carbon dioxide emissions savings to reach the International Energy Agency's Sustainable Development Scenario. Smart grids with batteries create the conditions for higher penetration of renewables in the power grid thanks to higher flexibility.
Stakeholder participation risks
Contribution risks
- Energy transition
Energy storage
Issue - Renewable energy has the potential to greatly reduce the carbon footprint of economies. The increased deployment of renewables into power grids is challenging because most of them - especially wind and solar - produce energy intermittantly. This can create a mistmatch in supply and demand of energy that is difficult to manage - especially as today power grids operate mostly on a flow basis, with very limited, if any, energy storage.
Contribution - Renewables and fuel-switching would contribute to 38% of the necessary carbon dioxide emissions savings to reach the International Energy Agency's Sustainable Development Scenario. Smart grids with batteries create the conditions for higher penetration of renewables in the power grid thanks to higher flexibility. Wind and solar power produce intermitant energy output, leading to an inconsistent supply of energy. Energy storage will therefore be crucial to overcoming the biggest limitation to renewable power.
Stakeholder participation risks
Contribution risks
- Energy transition
Electric vehicles
Issue - Transport represents 14% of global greenhouse gas emissions. In the EU, road transport contributes about one-fifth of the EU's total emissions of carbon dioxide. While these emissions fell by 3.3% in 2012, they are still 20.5% higher than in 1990. Transport is the only major sector in the EU where greenhouse gas emissions are still rising.
Contribution - Electric vehicles are on average 30% cleaner than the most efficient internal-combustion engines (International Council on Clean Transportation). Carbon reductions are even more significant in countries where the power grid has a heavy fossil fuel content, like India or China. Electric vehicles have the potential to reduce carbon emissions by 10 gigatonnes.
Evidence risks
Stakeholder participation risks
Contribution risks
- Future mobility
Renewable energy financing
Issue - Electricity and heat generation represents 25% of global greenhouse gas emissions and is the largest-emitting economic sector (Inter-governmental Panel on Climate Change).
Contribution - New Climate Energy estimates that at least $1tn of investment in low-carbon power supply and (non-transport) energy efficiency a year from 2015-2030 is needed to keep global warming below 2 degrees.
Stakeholder participation risks
Contribution risks
- Energy transition
Fuel-cell vehicles
Issue - Transport represents 14% of global greenhouse gas emissions. In the EU, road transport contributes about one-fifth of the EU's total emissions of carbon dixoide. While these emissions fell by 3.3% in 2012, they are still 20.5% higher than in 1990. Transport is the only major sector in the EU where greenhouse gas emissions are still rising.
Contribution - The first commercially available hydrogen-powered fuel cell car, the Hyundai Tucson Fuel Cell SUV, produces zero carbon dioxide combined emissions versus the diesel-powered version, which produces 125 grams per kilometer.
Evidence risk
Contribution risks
Execution risks
- Future mobility
Advanced Biofuels
Issue - Transport represents 14% of global greenhouse gas emissions. In the EU, road transport contributes about one-fifth of the EU's total emissions of carbon dixoide. While these emissions fell by 3.3% in 2012, they are still 20.5% higher than in 1990. Transport is the only major sector in the EU where greenhouse gas emissions are still rising.
Contribution - Renewable diesel produced from used vegetable oil or waste animal fats could reduce lifecycle carbon dioxide emissions by as much as 85%.
Evidence risks
Contribution risks
- Future mobility
LED lighting
Issue - Lighting accounts for nearly 6% of global carbon dioxide emissions.
Contribution - LED lighting has the potential to reduce carbon emissions by 7.8 gigatonnes (Gt) in households and 5Gt in commercial buildings. A global switch to energy-efficient LED technology could save over 1,400m tons of carbon dixoide and avoid the construction of 1,250 power stations (Project Drawdown).
Contribution risks
- Energy transition
Efficiency in industrial processes
Issue - About a fifth of US greenhouse gas emissions come directly from industrial sources, such as manufacturing, food processing, mining, and construction (US EPA).
Contribution - Efficiency improvements would contribute to 44% of the necessary carbon dioxide emissions savings to reach the International Energy Agency's Sustainable Development Scenario. It is the largest improvement area for achieving low-carbon scenarios, above even renewable energies. For example, shifting from basic oxygen blast furnaces to electric arc furnaces in the production of iron-ore steel contributed to a 37% reduction in the energy intensity of US crude steel production from 1991Ð2010 (Center for Climate and Energy Solutions).
Contribution risks
- Impact enablers
Measurement equipment
Issue - About a fifth of US greenhouse gas emissions come directly from industrial sources, such as manufacturing, food processing, mining, and construction. (US EPA)
Contribution - Efficiency improvements would contribute to 44% of the necessary carbon dioxide emissions savings to reach the International Energy Agency's Sustainable Development Scenario. It is the largest improvement area for achieving low-carbon scenarios, above even renewable energies.
Contribution risks
- Impact enablers
Building insulation
Issue - Cities account for up to 75% of greenhouse gas emissions and energy use, with the latter expected to rise to 80% in 2040.
Contribution - Better cavity wall and loft insulation has the potential to reduce carbon emissions by 8 gigatonnes by 2050, according to Drawdown.
Execution risks
Contribution risks
- Impact enablers
Internal Combustion Engine (ICE) efficiency
Issue - Transport represents 14% of global greenhouse gas emissions. In the EU, road transport contributes about one-fifth of the EU's total emissions of carbon dioxide. While these emissions fell by 3.3% in 2012, they are still 20.5% higher than in 1990. Transport is the only major sector in the EU where greenhouse gas emissions are still rising.
Contribution - Efficiency improvements would contribute to 44% of the necessary carbon dioxide emissions savings to reach the International Energy Agency's Sustainable Development Scenario. It is the largest improvement area for achieving low-carbon scenarios, above even renewable energies.
Execution risks
Contribution risks
Stakeholder participation risks
- Impact enablers
Refrigerant management
Issue - Refrigerant management has a major role in climate change. According to the UN: Ò328m Americans consume approximately the same amount of electricity for air conditioning alone than the total electricity used for all needs by 1.1bn people in Africa.Ó The International Energy Agency also estimates that increases in air conditioning could capture nearly 80% of the increase in power generation from renewable energies.
Contribution - According to Drawdown, refrigerant management has the largest potential of all climate-related solutions, with the potential for a 90 gigatonne reduction in carbon dioxide by 2050.
Evidence risks
Execution risks
- Energy transition
Sustainable materials
Issue - Industrial activities represent about 20% of global greenhouse gas emissions. Within this, steel represents 25%, cement 19%, paper 4%, plastic 4%, aluminium 3%. These are the five priority materials for carbon reductions in materials used. (Cambridge Institute for Sustainability Leadership)
Contribution - Dramatic changes can be made to materials we use. According to Drawdown, 90% of plastics could be derived from plants instead of fossil fuels.
Evidence risks
- Impact enablers
Directly investable
Back to the SDGs
Directly investable
Internet of Things
Issue - Many economic assets are underutilised or used in a sub-optimal way, leading to waste of resources.
Contribution - The Internet of Things could contribute to sustainable economic growth in a myriad of ways: remote monitoring of infrastructure enabling preventive maintenance; smart cities; optimising traffic; precision irrigation boosting yields, among others.
Stakeholder participation risks
Execution risks
Evidence risks
- Impact enablers
Automation
Issue - Productivity improvements have slowed down, especially in developed economies. There is a productivity challenge to overcome to make sure that per capita growth is maintained or continues to grow.
Contribution - Researchers have found that the use of robots within manufacturing raised the annual growth of labour productivity and GDP by 0.36% and 0.37%, respectively, between 1993 and 2007. This represents 10% of total GDP growth in the countries studied and 16% of labour productivity growth over that time period (Brookings Institution).
Stakeholder participation risks
Evidence risks
- Impact enablers
Micro and SME lending
Issue - Only 27% of people aged 15 plus have formal savings, and 11% have formal borrowing, according to the World Bank. Financial account ownership is lower among young adults, those with less education, women and poorer adults
Contribution - Micro-lending focuses on expanding access to banking services to previously unbanked populations. While evidence of impact is context-dependent, there seems to be positive impacts on household consumption and women's health.
Evidence risks
Execution risks
- Financial inclusion
Sharing economy
Issue - Many assets are underutilised, which is a wasteful use of resources. A prime example of this is light vehicles, they are unused 95% of the time (RAC Foundation).
Contribution - One shared car could replace approximately four to 13 personal cars. Accounting for potential increases in new car sales to car-sharing fleets and more heavy utilisation of shared cars, carbon dioxide emissions could be reduced by roughly 40 to 140 kg per household per year from reduced production and maintenance of cars.
Execution risks
Stakeholder participation risks
Evidence risks
- Circular economy
Waste collection, recycling and re-use
Issue - Should the global population reach 9.6bn by 2050, the equivalent of almost three planets could be required to provide the natural resources needed to sustain current lifestyles (UN). In the OECD, recycling rates have been improving but are still at only about 25%.
Contribution - Recycling allows for a closed-loop system where less virgin resources are taken from the environment, thus limiting environmental degradation. If managed sustainably scarce natural resources can benefit current and future generations. While the OECD recycling average is only 25%, countries like Germany or Taiwan are able to achieve the highest recycling rates of above 55%.
Efficiency risks
Execution risks
Stakeholder participation risks
- Circular economy
Testing, inspection & certification services
Issue - Supply chains lack transparency. A survey of chief procurement officers in 2018 found that 65% declared having limited to no visibility beyond their tier 1 suppliers (Deloitte). This can lead to poor understanding of supply chains, and thus suboptimal allocation of resources.
Contribution - Testing and certification enables companies and customers to understand supply chain sustainability, which improves transparency and should lead to more-informed decisions.
Evidence risks
- Impact enablers
Directly investable
Directly investable
Directly investable
Directly investable
Directly investable
Directly investable
Directly investable
Directly investable
Back to the SDGs
Transport infrastructure
Issue - Inadequate infrastructure leads to a lack of access to crucial services and markets, jobs and information, creating a major barrier for economic development. For example, there is a direct link between lack of access to good roads and poverty. In Mozambique, fewer than one in 20 people have access to good roads in the counties of Mandera and Wajir, where 80% of the population lives below the national poverty line (World Bank Sustainable Development Goal Atlas 2018). In some low-income African countries, infrastructure constraints cut business productivity by around 40% (UN Development Programme).
Contribution - Improved infrastructure increases the productivity of a country, improves employment prospects and leads to higher GDP/capita. For example, in 2015, the estimated global economic impact (both direct and indirect) of air transport was $2.7tn, equivalent to 3.5% of global GDP (UN).
Stakeholder participation risks
Execution risks
Contribution risks
- Future Mobility
Education providers
Issue - Education and health care are underserved services in many developing countries. Over 265m children are currently out of school and 22% of them are of primary school age (UN). Only 10% of adults reach post secondary education globally. Several studies have demonstrated that low levels of education and healthcare hamper economic growth, which in turn accelerates poverty (UNESCO).
Contribution - Education and healthcare are important investments into the human capital of an economy. For example, research suggests increasing the years of schooling among adults (15 years old and over) by two years would help to lift nearly 60m people out of poverty. Achieving universal primary and secondary attainment in the adult population would help to lift more than 420m out of poverty, thus reducing the number of poor worldwide by more than half (UNESCO).
Execution risks
Stakeholder participation risks
- Education
Water treatment & distribution
Issue - 2.5bn people worldwide lack access to basic sanitation and 748m people lack access to safe water (World Health Organisation). The main cause is lack of water distribution infrastructure and waste-water treatment.
Contribution - Access to clean water and good health are inextricably linked. About half of the developing worldÕs hospital beds are occupied by people with water-related illness (UN Development Programme).
Execution risks
Contribution risks
- Water
Waste management
Issue - Growing population, rising standards of living, industrialisation, and production and consumption of new products are acting together to generate increasingly greater quantities of solid waste. And that growing pile of waste is creating serious managment and disposal problems. Without waste management there is an increased likelihood of disease spreading, which has a negative impact on population health.
Contribution - Waste management ensures recycling and re-use are possible, supporting a circular economy where hazardous materials can be dealt with appropriately, reducing the negative impact on population health from the spread of disease.
Efficiency risks
Execution risks
Stakeholder participation risks
- Circular economy
Electric vehicle charging points
Issue -
Transport represents 14% of global greenhouse gas emissions. In the EU, road transport contributes about one-fifth of the EU's total emissions of carbon dioxide. While these emissions fell by 3.3% in 2012, they are still 20.5% higher than in 1990. Transport is the only major sector in the EU where greenhouse gas emissions are still rising.
2.6bn people in developing countries do not have access to constant electricity (UNDP).
Highly-polluting energy generation leads to air-quality issues impacting on population health, particularly in urban environments.
Contribution -
Electric vehicles on average reduce carbon emissions by 30% globally (International Council on Clean Transportation). Carbon reductions are even more significant in countries where the power grid has a heavy fossil fuel content, like India or China. Electric vehicles have the potential to reduce carbon emissions by 10 gigatonnes.
Cleaner fuels and vehicles can have a significant impact on both climate change and health. A study by Harvard's Center for Health and the Global Environment showed the climate change and health benefits are on par with each other.
Evidence risks
Stakeholder participation risks
- Energy transition
Utilities with high share of generation from renewable energy
Issue - Electricity and heat generation represents 25% of global greenhouse gas emissions and is the largest-emitting economic sector (Inter-governmental Panel on Climate Change).
Contribution - Renewables and fuel-switching would contribute to 38% of the necessary carbon dioxide emissions savings to reach the International Energy Agency's Sustainable Development Scenario.
Stakeholder participation risks
Contribution risks
- Energy transition
Wind Original Equipment Manufacturers (OEM)
Issue - Annual offshore wind installations are set to nearly double in the 2020s. With a yearly run-rate of around 9.5 gigawatts (GW) compared to 4GW in 2018, global capacity is forecast to reach 129GW in 2030 (Bloomberg New Energy Finance).
Contribution - On average, wind generation today will avoid approximately 0.70 metric tons of carbon dioxide production for every megawatt hour of generation. A typical new wind turbine will avoid over 4,300 metric tons of carbon dioxide production annually - or nearly 900 cars' worth of emissions. Overall, wind turbines have the potential to reduce carbon dioxide emissions by 85 gigatonnes (Gt) for onshore and 14Gt for offshore (Wind Solar Alliance).
Stakeholder participation risks
Contribution risks
- Energy transition
Wind developers
Issue - Annual offshore wind installations are set to nearly double in the 2020s. With a yearly run-rate of around 9.5 gigawatts (GW) compared to 4GW in 2018, global capacity is forecast to reach 129GW in 2030 (Bloomberg New Energy Finance).
Contribution - On average, wind generation today will avoid approximately 0.70 metric tons of carbon dioxide production for every megawatt hour of generation. A typical new wind turbine will avoid over 4,300 metric tons of carbon dioxide production annually - or nearly 900 cars' worth of emissions. Overall, wind turbines have the potential to reduce carbon dioxide emissions by 85 gigatonnes (Gt) for onshore and 14Gt for offshore (Wind Solar Alliance).
Stakeholder participation risks
Contribution risks
- Energy transition
Solar Original Equipment Manufacturers (OEM)
Issue - Electricity and heat generation represents 25% of global greenhouse gas emissions and is the largest emitting economic sector (Inter-governmental Panel on Climate Change).
Contribution - Solar farms have the potential to reduce carbon emissions by 37 gigatonnes (Gt) by 2050, with a further 25Gt for rooftop solar and 11Gt for concentrated solar.
Stakeholder participation risks
Contribution risks
- Energy transition
Solar developers
Issue - Electricity and heat generation represents 25% of global greenhouse gas emissions and is the largest emitting economic sector (Inter-governmental Panel on Climate Change).
Contribution - Solar farms have the potential to reduce carbon emissions by 37 gigatonnes (Gt) by 2050, with a further 25Gt for rooftop solar and 11Gt for concentrated solar.
Stakeholder participation risks
Contribution risks
- Energy transition
Smart grid infrastructure
Issue - Electricity and heat generation represents 25% of global greenhouse gas emissions and is the largest emitting economic sector (Inter-governmental Panel on Climate Change).
Contribution - Renewables and fuel-switching would contribute to 38% of the necessary carbon dioxide emissions savings to reach the International Energy Agency's Sustainable Development Scenario. Smart grids with batteries create the conditions for higher penetration of renewables in the power grid thanks to higher flexibility.
Stakeholder participation risks
Contribution risks
- Energy transition
Energy storage
Issue - Growing population, rising standards of living, industrialisation, and production and consumption of new products are acting together to generate increasingly greater quantities of solid wastes, and this in turn is creating serious problems for management and proper disposal. Without waste management there is an increased likelihood of disease spreading, which has a negative impact on population health.
Contribution - Renewables and fuel-switching would contribute to 38% of the necessary carbon dioxide emissions savings to reach the International Energy Agency's Sustainable Development Scenario. Smart grids with batteries create the conditions for higher penetration of renewables in the power grid thanks to higher flexibility. Wind and solar power produce intermitant energy output, leading to an inconsistent supply. Energy storage will therefore be crucial to overcoming the biggest limitation to renewable power.
Stakeholder participation risks
Contribution risks
- Energy transition
Fuel-cell vehicles infrastructure
Issue - Electricity and heat generation represents 25% of global greenhouse gas emissions and is the largest emitting economic sector (Inter-governmental Panel on Climate Change).
Contribution - The first commercially-available hydrogen-powered fuel cell car, the Hyundai Tucson Fuel Cell SUV, produces zero carbon dioxide combined emissions versus the diesel-powered version, which emits 125 grams per kilometer.
Evidence risk
Contribution risks
Execution risks
- Future mobility
Directly investable
Microfinance in developing countries
Issue - Small and medium-sized enterprises make up over 90% of business worldwide, representing between 50-60% of employment. While about 80% of small-to-medium enterprises (SMEs) have access to some account services with formal financial institutions, access to credit remains low. Only 37% of SMEs receive the credit they need to compete, grow, and create more formal sector jobs, which pay better and last longer than informal employment. The problem is more severe when micro-enterprises and the informal sector are taken into account. The overall SME financing gap, has been estimated by an International Finance Corporation and McKinsey study to be in excess of $3tn, two-thirds of which is in developing economies.
Contribution - Micro-lending focuses on expanding access to banking services to previously unbanked populations. While evidence of impact is context-dependent, there seems to be positive impacts on household consumption and women's health.
Evidence risks
Execution risks
- Financial inclusion
Small-to-medium enterprise (SME) lending in developing countries
Issue - Small-to-medium enterprises (SMEs) are major employment engines yet often lack access to credit to finance growth. In Southeastern Europe, 70% of SMEs consider it difficult or impossible to get a long-term loan (EBRD).
Contribution - Prudent lending to small-to-medium enterprises (SMEs) in developing countries supports corporate investment in productive assets, generating greater economic activity and more employment opportunities.
Evidence risks
Execution risks
- Financial inclusion
Automation
Issue - Outdated industrial operations tend to be less efficient and more polluting. Older industry generally involves more low-quality manual labour, with job roles that can have lower safety levels and can be detrimental to health and wellbeing.
Contribution - Retro-fitting can extend the life of existing buildings and infrastructure, with significant environmental benefits in improving energy efficiency and pollution. Other technology-led improvements such as automation can increase productivity so human input can be more value-added, helping eliminate low-quality manual labour which can be detrimental to health.
Stakeholder participation risks
Evidence risks
- Impact enablers
Efficiency in industrial processes
Issue - About a fifth of US greenhouse gas emissions come directly from industrial sources, such as manufacturing, food processing, mining, and construction (US Environmental Protection Agency).
Contribution - Efficiency improvements would contribute to 44% of the necessary carbon dioxide emissions savings to reach the International Energy Agency's Sustainable Development Scenario. It is the largest improvement area for achieving low-carbon scenarios, above even renewable energies. For example, shifting from basic oxygen blast furnaces to electric arc furnaces in the production of iron-ore steel contributed to a 37% reduction in the energy intensity of US crude steel production from 1991Ð2010 (Center for Climate and Energy Solutions).
Contribution risks
Evidence risks
- Impact enablers
Flow efficiency
Issue - Efficiency in water use is becoming increasingly critical to the sustainability of economy activities. Global water demand for the manufacturing industry is expected to increase by 400% from 2000 to 2050. Energy production is generally water-intensive. Meeting ever-growing demands for energy will generate increasing stress on freshwater resources with repercussions on other users, such as agriculture and industry.
Contribution - Increasing water-use efficiency over time means decoupling economic growth from water use across the main water-using sectors of agriculture, industry, energy and municipal water supply. This has strong synergies with sustainable food production (Sustainable Development Goal 2 - or SDG 2), economic growth (SDG 8), infrastructure and industrialisation (SDG 9), cities and human settlements (SDG 11) and consumption and production (SDG 15).
Contribution risks
- Water
Waste collection, recycling and reuse
Issue - Should the global population reach 9.6bn by 2050, the equivalent of almost three planets could be required to provide the natural resources needed to sustain current lifestyles (UN). In the OECD, recycling rates have been improving but are still at only about 25%.
Contribution - Recycling allows for a closed-loop system where less virgin resources are taken from the environment, thus limiting environmental degradation. If managed sustainably, scarce natural resources can benefit current and future generations. While the OECD recycling average is only 25%, countries like Germany or Taiwan are able to achieve the highest recycling rates of above 55%.
Efficiency risks
Execution risks
Stakeholder participation risks
- Circular economy
Pooled systems (sharing economy)
Issue - Many assets are underutilised, which is a wasteful use of resources. A prime example of this is light vehicles, they are unused 95% of the time (RAC Foundation).
Contribution - One shared car could replace approximately four to 13 personal cars. Accounting for potential increases in new car sales to car-sharing fleets and more heavy utilszation of shared cars, carbon dioxide emissions could be reduced by roughly 40 to 140kg per household per year from reduced production and maintenance of cars.
Execution risks
Stakeholder participation risks
Evidence risks
- Circular economy
Measurement equipment
Issue - Scientific research can only be as good as its capacity to accurately measure things. For instance, up until the advent of the Human Genome project in the beginning of the 21st century, the ability to research genes and harness their power in the immune system was very limited.
Contribution - Enhanced scientific research and technological innovations can lead to efficiency improvements which would contribute to 44% of the necessary carbon dioxide emissions savings to reach the International Energy Agency's Sustainable Development Scenario. It is the largest improvement area for achieving low-carbon scenarios, above even renewable energies. Better measurement in the field of genomic sequencing has also been fundamental to the development of gene therapies especially for cancer treatments.
Evidence risks
- Impact enablers
Modelling & Simulation software
Issue - Research advancements are limited by the ability to model things with great accuracy. Often models are tested with physical prototypes, which are costly and time-consuming to produce.
Contribution - Research and development (R&D) and innovation are major drivers of competitiveness and employment in a knowledge-based economy. Greater investment in R&D provides new jobs in business and academia, increasing demand for scientists and researchers in the labour market. Knowledge-intensive sectors are key drivers of economic growth and productivity - as well as providing a source of high value-added and well-paid jobs. Measurement equipment is heavily-used in R&D work. Modelling and simulation software isused extensively in industrial R&D as it helps speed up the process.
Execution risks
- Impact enablers
Directly investable
Directly investable
Directly investable
Back to the SDGs
Affordable education providers
Issue - A significant majority of households in developing countries - more than 75% of the population - are living in societies where income is more unequally distributed than it was in the 1990s. Income-inequality increased 11% on average in developing countries between 1990 and 2010 (UN). Evidence from developing countries shows that children in the poorest 20% of the populations are still up to three-times more likely to die before their fifth birthday than children in the richest quintiles (UN).
Contribution - By reducing inequality, the number of people on low incomes can be reduced. By supporting education and healthcare targetting at underserved populations income growth can be supported. Education has many benefits in terms of personal development, democratic life, but also for people's earnings. In the US, the gap in average real wages between individuals with a four-year college degree or graduate degree and high school graduates rose from 40-67% in 1980 to 72-120% as of 2015 (Valletta, 2016).
Execution risks
Stakeholder participation risks
- Education
Micro-lending
Issue - Only 27% of people aged 15 plus have formal savings, and 11% have formal borrowing, according to the World Bank. Financial account ownership is lower among young adults, those with less education, women and poorer adults.
Contribution - Micro-lending focuses on expanding access to banking services to previously unbanked populations. While evidence of impact is context-dependent, there seems to be positive impacts on household consumption and women's health.
Evidence risks
Execution risks
- Financial inclusion
Directly investable
Directly investable
Directly investable
Directly investable
Directly investable
Directly investable
Directly investable
Directly investable
Back to the SDGs
Affordable housing
Issue - Affordable housing is usually defined as households who can afford to pay using no more than 30% of income. The number of low-income urban households affected today by lack of access is 330m, which could grow to 440m by 2025, according to McKinsey. The lack of affordable housing has many negative effects. Recruitment and retention problems can particularly affect lower-paid employees, such as key workers, with implications for the delivery of essential public services. High house prices can lead to longer commutes and increased congestion, which can have a negative impact on quality of life, with long-term implications for economic growth and sustainability.
Contribution - Loans targeted at low-income groups can help accelerate access to property ownership at an affordable cost. Affordable housing can also be offered through rental models, making it accessible at a reasonable monthly rate without the need for upfront capital.
Execution risks
- Financial inclusion
Hospitals in developing countries
Issue - In 2010, 800m people spent over 10% of their household budget on healthcare, and 97m were pushed into extreme poverty by health spending (World Health Organisation). In 2016 alone, 7,000 newborn babies died every day. Newborn deaths made up 46% of all child deaths, an increase from 41% in 2000. Children in the poorest households are nearly twice as likely to die before the age of five than those from the richest. Most of these deaths are entirely preventable (UNICEF).
Contribution - Better-staffed health systems are linked with improved health outcomes. Better access to healthcare is closely correlated with higher scores in the Human Development Index. Prematurity, complications during labour and birth, and infections like sepsis, pneumonia, tetanus and diarrhoea are among the leading causes of death Ð all of which can be treated or prevented with simple, affordable solutions (UNICEF).
Execution risks
Stakeholder participation risks
- Health & Well-being
Education providers
Issue - Over 265m children are currently out of school and 22% of them are of primary school age (UN). Only 10% of adults reach post secondary education globally. Only half have primary education.
Contribution - Education has many benefits in terms of personal development, democratic life, but also people's earnings. In the US, the gap in average real wages between individuals with a four-year college degree or graduate degree and high school graduates rose from 40-67% in 1980 to 72-120% as of 2015 (Valletta, 2016).
Execution risks
Stakeholder participation risks
- Education
Water utilities in developing countries
Issue - In 2015, 6.6bn people (over 90% of the worldÕs population) used improved drinking water sources and 4.9bn people (over two thirds of the worldÕs population) used improved sanitation facilities. In both cases, people without access live predominantly in rural areas. The global population using at least a basic drinking water service increased from 81 to 89% between 2000 and 2015. However, only one in five countries below 95% coverage in 2015 is on track to achieving universal basic water services by 2030.
Contribution - Every dollar spent on water and sewage infrastructure can have a multiplier effect of up to $5 (Institute of Civil Engineers). Three out of four jobs are directly or indirectly dependent on water security. For 80% of households in the developing world it is women and girls who collect water, which restricts their access to education and other economic opportunities, so improving access can be a factor in female empowerment in those countries (UN).
Execution risks
Contribution risks
- Water
Public transport infrastructure
Issue - As populations grow in urban environments, driven by urbanisation, pressure on public transport services and infrastructure grows.
Contribution - Improving transport infrastructure increases social mobility and economic development of a country.
Stakeholder participation risks
Contribution risks
- Future Mobility
Electric vehicles
Issue - Transport represents 14% of global greenhouse gas emissions. In the EU, road transport contributes about one-fifth of the EU's total emissions of carbon dioxide. While these emissions fell by 3.3% in 2012, they are still 20.5% higher than in 1990. Transport is the only major sector in the EU where greenhouse gas emissions are still rising.
Contribution - Electric vehicles on average reduce carbon emissions by 30% globally (International Council on Clean Transportation). Carbon reductions are even more significant in countries where the power grid has a heavy fossil fuel content, like India or China. Electric vehicles have the potential to reduce carbon emissions by 10 gigatonnes.
Evidence risks
Stakeholder participation risks
Contribution risks
- Future mobility
Fuel-cell vehicles
Issue - As populations grow in urban environments, driven by urbanisation, pressure on public transport services and infrastructure grows.
Contribution - The first commercially-available hydrogen-powered fuel cell car, the Hyundai Tucson Fuel Cell SUV, produces much lower global warming emissions than the modelÕs gasoline-powered version.
Evidence risk
Contribution risks
Execution risks
- Future mobility
Advanced biofuels
Issue - As populations grow in urban environments, driven by urbanisation, pressure on public transport services and infrastructure grows.
Contribution - Renewable diesel produced from used vegetable oil or waste animal fats could reduce life-cycle carbon dioxide emissions by as much as 85%.
Evidence risks
Contribution risks
- Future mobility
Safety infrastructure
Issue - Road accidents are the ninth-biggest source of death globally, representing 2.5% of deaths, or 1.3m cases every year.
Contribution - Road safety infrastructure has contributed to the reduction of accidents. Fatalities per billion kilometers driven have fallen from nearly 40 in 1970 to around 10 today in Britain.
Stakeholder participation risks
- Future mobility
Vehicle safety
Issue - Road accidents are the ninth-largest source of death globally, representing 2.5% of deaths, or 1.3m cases every year. In the US, 90% of car accidents are thought to be caused by human error.
Contribution - Active safety products (as opposed to passive safety products such as seat belts, brakes etc) are gaining critical importance as cars become more autonomous. As cars transition along the autonomous vehicle spectrum, the responsibility for road safety will shift from the human driver towards full systems responsibility. The quality of sensors (such as cameras and radars) as well as underlying software will become key to road safety. Autonomous vehicles can also play a role: so far pilot tests have shown that autonomous vehicles have a much better safety performance than human-driven vehicles.
External risks
Execution risks
Stakeholder participation risks
- Future mobility
Directly investable
Directly investable
Waste collection, recycling and reuse
Issue - Growing population, rising standards of living, industrialisation, and production and consumption of new products are acting together to generate increasingly greater quantities of solid waste. The growing piles of waste are creating serious management and disposal problems. Without waste management there is an increased likelihood of disease spreading, which has a negative impact on population health.
Contribution - Waste management ensures recycling and re-use are possible, supporting a circular economy. Hazardous materials can be dealt with appropriately, reducing the negative impact on population health from the spread of disease.
Efficiency risks
Execution risks
Stakeholder participation risks
- Circular economy
Emission control technologies (ECT)
Issue - More than nine out of 10 people globally live in places where air pollution exceeds safe limits, according to research from the World Health Organization (WHO). Air pollution is the fourth-largest threat to human health, behind high blood pressure, dietary risks and smoking.
Contribution - Emission control technologies such as selective catalytic reduction, lean nitrogen oxides traps, and diesel particulate filters can reduce the emission of toxic particules and improve air quality.
Execution risks
- Energy transition
Electric vehicle (EV) infrastructure
Issue - With population growth and urbanisation comes an increase in the number of internal combustion engine vehicles on the road and therefore an increase in pollution.
Contribution - Potentially cleaner energy sources, such as electric vehicle batteries can reduce or eliminate carbon dixoide and nitrogen oxides emissions.
Evidence risks
Stakeholder participation risks
Contribution risks
- Future mobility
Advanced biofuels
Issue - More than nine out of 10 people globally live in places where air pollution exceeds safe limits, according to research from the World Health Organization (WHO). Air pollution is the fourth-largest threat to human health, behind high blood pressure, dietary risks and smoking.
Contribution - Renewable diesel produced from used vegetable oil or waste animal fats could reduce life-cycle carbon dioxide emissions by as much as 85%.
Evidence risks
Contribution risks
- Energy transition
Pooled systems (Sharing economy)
Issue - Many assets are underutilised, which is a wasteful use of resources. A prime example of this is light vehicles, which are unused 95% of the time (RAC Foundation).
Contribution - One shared car could replace approximately four to 13 personal cars. Accounting for potential increases in new car sales to car-sharing fleets and more heavy utilisation of shared cars, carbon dioxide emissions could be reduced by roughly 40 to 140kg per household per year from reduced production and maintenance of cars.
Execution risks
Stakeholder participation risks
Evidence risks
- Circular economy
Air purification systems
Issue - About 92% of the worldÕs population lives in places where air pollution exceeds safe limits, according to research from the World Health Organization (WHO). Air pollution is the fourth-largest threat to human health, behind high blood pressure, dietary risks and smoking.
Contribution - Air purification systems are able to capture large amounts of allergens and dust particles in the air, leading to improved resipratory function (Vijayan et al, 2015).
Execution risks
- Health & Wellbeing
Directly investable
Directly investable
Directly investable
Directly investable
Back to the SDGs
Directly investable
Precision agriculture
Issue - Agricultural production will need to increase by 70% to meet global demand in 2050, according to the OECD. But yield gains have been consistently declining over the recent decades. Crop yields have been progressing at slightly more than 1% since the 1990. Technology adoption is very low in agriculture, leading to low productivity gains. Farmers typically favour 'tried-and-tested' techniques.
Contribution - Research reports indicate that there could be an 18% crop yield increase thanks to precision fertiliser application, 13% with precision planting, 13% with compaction reduction via fleets of smaller tractors, 4% with precision spraying (Goldman Sachs). This means that less land and chemicals would be required to produce the same amount of food.
Stakeholder participation risks
Contribution risks
- Food security
Waste collection, recycling and reuse
Issue - Should the global population reach 9.6bn by 2050, the equivalent of almost three planets could be required to provide the natural resources needed to sustain current lifestyles (UN). In the OECD, recycling rates have been improving but are still at only about 25%.
Contribution - Recycling allows for a closed-loop system where less virgin resources are taken from the environment, limiting environmental degradation. If managed sustainably, scarce natural resources can benefit current and future generations. While the OECD recycling average is only 25%, countries like Germany or Taiwan are able to achieve the highest recycling rates of above 55%.
Efficiency risks
Execution risks
Stakeholder participation risks
- Circular economy
Pooled systems (sharing economy)
Issue - Many assets are underutilised, which is a wasteful use of resources. A prime example of this is light vehicles, which are unused 95% of the time (RAC Foundation).
Contribution - One shared car could replace approximately four to 13 personal cars. Accounting for potential increases in new car sales to car-sharing fleets and more heavy utilisation of shared cars, carbon dioxide emissions could be reduced by roughly 40 to 140kg per household per year from less production and maintenance of cars.
Execution risks
Stakeholder participation risks
Evidence risks
- Circular economy
Logistics and food preservation
Issue - Each year, an estimated one-third of all food produced Ð equivalent to 1.3bn tonnes worth around $1tn Ð ends up rotting in the bins of consumers and retailers, or spoiling due to poor transportation and harvesting practices, while almost 2bn go hungry or undernourished (UN).
Contribution - Investing in efficient, low-cost and sustainable processing technologies, adequate storage and packaging solutions, road infrastructure and market linkages can lead to a reduction in food loss and waste. Providing training and education to chain actors, including consumers, can also reduce food waste. Refrigeration, food preservatives, and other technologies can help improve the shelf life of perishable food products. Improved infrastructure and more efficient supply chains can also be a significant contributor to reducing food waste.
Stakeholder participation risks
- Food security
Green chemicals
Issue - Chemicals play an important part in many human activities (medicines, agriculture, industrial production) and the chemical industry is a major contributor to national economies. However, when chemicals are mismanaged the poorest communities face the highest risk due to their occupations, living conditions and limited access to uncontaminated food and water (UNDP).
Contribution - Managing chemicals reduces the risk of contamination of food and water and therefore improves population health. Principles around 'green chemistry' mark a fundamental change of approach. Instead of trying to clean up pollution, green chemistry is about preventing pollution in the first place. It is an approach that applies across all areas of chemistry and across the life-cycle of a chemical product, trying to minimise the use of harmful substances.
Evidence risks
Execution risks
- Circular economy
Precision agriculture
Issue - Agricultural production will need to increase by 70% to meet global demand in 2050, according to the OECD. But yield gains have been consistently declining over the recent decades. Crop yields have been progressing at slightly more than 1% since the 1990. Technology adoption is very low in agriculture, leading to low productivity gains. Farmers typically favour 'tried-and-tested' techniques.
Contribution - Research reports indicate that there could be an 18% crop yield increase thanks to precision fertiliser application, 13% with precision planting, 13% with compaction reduction via fleets of smaller tractors, 4% with precision spraying (Goldman Sachs). This means that less land and chemicals would be required to produce the same amount of food.
Stakeholder participation risks
Contribution risks
- Food Security
Waste collection, recycling and reuse
Issue - Should the global population reach 9.6bn by 2050, the equivalent of almost three planets could be required to provide the natural resources needed to sustain current lifestyles (UN). While recycling rates have been improving, they remain low (averaging 25% in OECD countries).
Contribution - Recycling allows for a closed-loop system where less virgin resources are required from the environment, thus limiting environmental degradation. If managed sustainably scarce natural resources can benefit current and future generations. While the OECD recycling average is only 25%, countries like Germany or Taiwan are able to achieve the highest recycling rates of above 55%.
Efficiency risks
Execution risks
Stakeholder participation risks
- Circular economy
Logistics and food preservation
Issue - Each year, an estimated one-third of all food produced Ð equivalent to 1.3bn tonnes worth around $1tn Ð ends up rotting in the bins of consumers and retailers, or spoiling due to poor transportation and harvesting practices, while almost 2bn go hungry or undernourished (UN).
Contribution - Investing in efficient, low-cost and sustainable processing technologies, adequate storage and packaging solutions, road infrastructure and market linkages can lead to a reduction in food loss and waste. Providing training and education to chain actors, including consumers, can also reduce food waste. Refrigeration, food preservatives, and other technologies can help improve the shelf life of perishable food products. Improved infrastructure and more efficient supply chains can also be a significant contributor to reducing food waste.
Stakeholder participation risks
- Circular economy
Directly investable
Directly investable
Directly investable
Directly investable
Directly investable
Back to the SDGs
Flow efficiency
Issue - Efficiency in water use is becoming increasingly critical to the sustainability of economy activities. Global water demand for the manufacturing industry is expected to increase by 400% from 2000 to 2050. Energy production is generally water-intensive. Meeting ever-growing demands for energy will generate increasing stress on freshwater resources with repercussions on other users, such as agriculture and industry. This stress will be exacerbated by climate change.
Contribution - Water systems that are able to deal more effectively with stormwater are better-equiped to handle climate-related hazards that put high strain on water networks.
Contribution risks
- Water
Directly investable
Directly investable
Directly investable
Directly investable
Back to the SDGs
Biodegradable and bio-based plastics
Issue - As much as 40% of the world's oceans are heavily affected by human activities, including pollution, depleted fisheries, and loss of coastal habitats. At the same time, over 3bn people depend on marine and coastal biodiversity for their livelihoods. Sea pollution such as plastic packaging in oceans or fertiliser leaching into rivers has a negative impact on marine ecosystems, potentially reducing biodiversity.
Contribution - Plastic can take a very long time to break down once discarded, leading to significant problems with landfill waste and posing a danger to wildlife. Biodegradable plastics use alternate materials or specialised enzyme or chemical reactions to break down materials quickly once exposed to the elements. This technology offers a number of advantages over traditional plastic materials including: waste reduction; reduced feedstock demand for oil-based polymers; and lower greenhouse gas emissions from production.
Execution risks
Evidence risks
- Circular economy
Waste collection, recycling and reuse
Issue - As much as 40% of the world's oceans are heavily affected by human activities, including pollution, depleted fisheries, and loss of coastal habitats. At the same time, over 3bn people depend on marine and coastal biodiversity for their livelihoods. Sea pollution such as plastic packaging in oceans or fertiliser leaching into rivers has a negative impact on marine ecosystems, potentially reducing biodiversity.
Contribution - Recycling allows for a closed-loop system where less virgin resources are required from the environment, thus limiting environmental degradation. If managed sustainably, scarce natural resources can benefit current and future generations. While the OECD recycling average is only 25%, countries like Germany or Taiwan are able to achieve the highest recycling rates of above 55%.
Efficiency risks
Execution risks
Stakeholder participation risks
- Circular economy
Sustainable aquaculture
Issue - Acquaculture, when not done sustainably, can result in the use of high levels of chemicals and waste, which can impact marine ecosystems.
Contribution - According to the UN's Food and Agriculture Organisation (FAO), aquaculture is among the most sustainable of animal protein production systems. It does not use land, and has a much lower carbon footprint than any kind of animal protein. Sustainable aquaculture does not use antibiotics and other chemicals that could be harmful to the marine ecosystem.
Execution risks
Contribution risks
- Food security
Precision agriculture
Issue - Intensive agricultural farming can result in leaching of pesticides, fungicides, herbicides into marine ecosystems. Agricultural production will need to increase by 70% to meet global demand in 2050, according to the OECD. But yield gains have been consistently declining over the recent decades.
Contribution - Research reports indicate that there could be an 18% crop yield increase thanks to precision fertiliser application, 13% with precision planting, 13% with compaction reduction via fleets of smaller tractors, 4% with precision spraying (Goldman Sachs). This means that less land and chemicals would be required to produce the same amount of food, and therefore less risk of leaching into marine ecosystems.
Stakeholder participation risks
Contribution risks
- Food security
Organic food production
Issue - Intensive conventional agricultural farming can result in leaching of pesticides, fungicides, herbicides into marine ecosystems.
Contribution - Systematic reviews of academic studies have uncovered strong evidence that organic agriculture improves soil quality, biodiversity, and some indications that it also improves water quality, lowers greenhouse gas emissions and reduces farmers' pesticide exposure.
Stakeholder participation risks
Execution risks
Evidence risks
- Food security
Organic food retail
Issue - Intensive conventional agricultural farming can result in leaching of pesticides, fungicides, herbicides into marine ecosystems.
Contribution - Systematic reviews of academic studies have uncovered strong evidence that organic agriculture improves soil quality, biodiversity, and some indications that it also improves water quality, lowers greenhouse gas emissions and reduces farmers' pesticide exposure.
Stakeholder participation risks
Execution risks
Evidence risks
- Food security
Sustainable aquaculture
Issue - Overfishing remains a big issue in some marine ecosystems, leading to disruption in food chains and ultimately depletion of stocks. Productive oceans are important from a food security perspective as alternative protein sources are highly-inefficient. Beef production, in particular, requires 10-times more land use and greenhouse gas emissions than farmed fish (WRI, 2016).
Contribution - Sustainable aquaculture is part of the solution to help reduce pressure on fish stocks. Active fishery management and regular observation of fish stocks contributes to their recovery. According to the UN's Food and Agriculture Organisation, aquaculture is among the most sustainable of animal protein production systems. It does not use land, and has a much lower carbon footprint than any kind of animal protein.
Execution risks
Contribution risks
- Food security
Directly investable
Directly investable
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Impact theme
- xxxx
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Back to the SDGs
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Sustainable forestry
Issue - Around 1.6bn people depend on forests for their livelihood, including some 70m indigenous people. Forests are also home to more than 80% of all terrestrial species of animals, plants and insects (UN). Deforestation is a major issue facing the world, with the planet's forests being depleted rapidly. The planet has lost 1.3m square kilometers of forest from 1990 to 2015 - an area larger than South Africa, according to data published by the World Bank.
Contribution - Increasing or maintaining the forest cover is a key part of any scenario to mitigate climate change; forests function as carbon dioxide sink. Shell's 'Sky scenario', for instance, which limits global warming by 1.75 degrees centrigrade, would require planting trees on an area the size of Brazil. Analysis from The Nature Conservancy, World Resources Institute and others, indicates that stopping deforestation, restoring forests and improving forestry practices could cost-effectively remove 7bn metric tons of carbon dioxide annually, or as much as eliminating 1.5bn cars-more than all of the cars in the world today.
Stakeholder participation risks
Evidence risks
Contribution risks
- Circular economy
Plant-based foods
Issue - Population growth places increasing pressure on scarce natural resources. Agriculture accounts for 92% of the freshwater footprint of humanity; almost one-third relates to animal products. Mekonnen and Hoekstra (2012) show that animal products have a large water footprint relative to crop products. More than 80% of farmland is used for livestock but it produces just 18% of food calories (Poore & Nemecek, Science Journal 2018).
Contribution - There is strong evidence supporting plant based diets as a sustainable solution to helping to reduce food shortages, land degradation and fresh water intake (Webber, 2017). The lower land use footprint also means that fewer chemicals are necessary to be used to produce the same amount of protein, reducing the risk of contaminating rivers.
Execution risks
Contribution risks
- Food security
Precision agriculture
Issue - Crop yields are not rising fast enough to meet anticipated future crop demand by 2050 (Deepak et al, 2013). Crop yields have been progressing at circa 1% since the 1990, unless this rate more than doubles to 2.5%, there is expected to be a shortfall to meet projected crop demand. Technology adoption is very low in agriculture, leading to low productivity gains. Farmers typically favour 'tried-and-tested' techniques.
Contribution - Research reports indicate that there could be an 18% crop yield increase thanks to precision fertiliser application, 13% with precision planting, 13% with compaction reduction via fleets of smaller tractors, 4% with precision spraying (Goldman Sachs). This means that less land and chemicals would be required to produce the same amount of food.
Stakeholder participation risks
Contribution risks
- Food security
Flow efficiency
Issue - Efficiency in water use is increasingly critical to the sustainability of economic activities. Global water demand for the manufacturing industry is expected to increase by 400% from 2000 to 2050 (OECD estimates). Energy production is generally water-intensive. Meeting ever-growing demands for energy will generate increasing stress on freshwater resources with repercussions on other users, such as agriculture and industry.
Contribution - Increasing water-use efficiency over time means decoupling economic growth from water use across the main water-using sectors of agriculture, industry, energy and municipal water supply. This has strong synergies with sustainable food production (Sustainable Development Goal 2 - or SDG 2), economic growth (SDG 8), infrastructure and industrialisation (SDG 9), cities and human settlements (SDG 11) and consumption and production (SDG 15).
Contribution risks
- Water
Organic food production
Issue - 2.6bn people depend directly on agriculture, but 52% of the land used for agriculture is moderately or severely affected by soil degradation. Due to drought and desertification each year 12m hectares are lost (23 hectares per minute), where 20m tons of grain could have been grown. One of the consequences of climate change is desertification, can result in a reduction of land available for agricultural production. Agricultural production will need to increase by 70% to meet global demand in 2050, according to the OECD.
Contribution - Systematic reviews of academic studies show strong evidence that organic agriculture improves soil quality, biodiversity, and some evidence that it also improves water quality, reduces greenhouse gas emissions and reduces farmers' pesticide exposure.
Stakeholder participation risks
Execution risks
Evidence risks
- Food security
Organic food retail
Issue - 2.6bn people depend directly on agriculture, but 52% of the land used for agriculture is moderately or severely affected by soil degradation. Due to drought and desertification each year 12m hectares are lost (23 hectares per minute), where 20m tons of grain could have been grown. One of the consequences of climate change is desertification, can result in a reduction of land available for agricultural production. Agricultural production will need to increase by 70% to meet global demand in 2050, according to the OECD.
Contribution - Systematic reviews of academic studies show strong evidence that organic agriculture improves soil quality, biodiversity, and some evidence that it also improves water quality, reduces greenhouse gas emissions and reduces farmers' pesticide exposure.
Stakeholder participation risks
Execution risks
Evidence risks
- Food security
Sustainable aquaculture
Issue - Livestock and poultry farming are highly-inefficient ways of creating proteins for human consumption. Beef production, in particular, requires 10-times more land use and greenhouse gas emissions than farmed fish (World Resources Institute, 2016).
Contribution - According to the UN's Food and Agriculture Organisation, aquaculture is among the most sustainable of animal protein production systems. It does not use land, and has a much lower carbon footprint than any kind of animal protein.
Execution risks
Contribution risks
- Food security
Directly investable
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Back to the SDGs
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Back to the SDGs
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Back to the SDGs
The Hermes SDG Taxonomy has been created by investors, for investors. We welcome your insights and suggestions in order to help us make it a valuable resource for all investors mindful of the impacts and opportunities connected with the SDGs.
