Our Frameworks

Sustainable Development Goals (United Nations)

At Impaakt, we use the SDGs as an analytical framework to help our contributors structure their work. Our clients compare the impact of different companies according to well-defined, standardised themes.

You can find out more here: https://app.impaakt.com/sdgs

Products:

The impact described is related to the company's sector of activities, i.e., WHAT they sell. The impact is generated while using their products & services, not when they are manufactured/produced.

Some examples include:

• Essential needs being covered by the products & services offered by the company (e.g., access to water and nutrition, provision of healthcare or education, mobility, etc.)
• Pollution or environmental issues generated while using the company's products & services (e.g., driving a car)
• Health issues related to the consumption of the company's products and services (e.g., screen addiction, obesity, etc.)

Processes:

The impact described is related to the company's operations, i.e., HOW they run their business.

Some examples include:

• Pollution or resource depletion related to the manufacturing or distributing the goods and services (e.g., oil spill, GHG emissions at plant level)
• Social or environmental impacts on the companies' employees, suppliers, or local communities where production occurs (e.g., diversity and inclusion, labour practices, etc.)
• Job creation, labour practices, or workforce health & safety.
• Impacts related to bribery, money laundering, or anti-competitive behaviour.

Taxes & Philanthropy:

The impact described is related to the company's contribution to TAXES & philanthropic initiatives, such as through CHARITABLE programs (carried by the company itself or the corporate foundation).

Some examples include:

• Net tax paid
• The distribution of the company's products and services for free or at a reduced cost.
• Provision of grants to charitable organizations.
• Pro-bono work done by the company's staff.
• Manufacturing plants used to produce emergency supplies for free or at a cost outside the company's core activities (e.g., textile companies manufacturing masks during pandemics).
• Support to local communities or people in distress.

The ILG themes started to get momentum in the sustainable finance industry. It is "a global network of pension funds, insurers and asset managers, with over £14 trillion under management and advice".

This framework allows us to:

1. Get the social and environmental score of a company
2. Give the capacity for our clients to view a company's impact based on the ILG themes
   

They came up with a framework to analyse the impact using the SDGs as a reference point, but with six broader themes that are either:

Social

• Basic Needs

• Well-being

• Decent Work

Environmental

• Resource security

• Healthy Ecosystems

• Climate stability

Sources:
https://www.cisl.cam.ac.uk/bus...
https://www.cisl.cam.ac.uk/sys...

The Impaakt Team has conducted extensive research for 77 industries across 11 sectors to identify the most pertinent social and environmental impacts.

Some impact topics are relevant for all companies across the board, such as Greenhouse Gas emissions and Job Creation, amongst others, while others are industry-specific, such as Gentrification and Water Pollution.

We have used the themes the Sustainability Accounting Standards Board (SASB) provided, and they have inspired these topics and descriptions.

Each company has a Core Business Analysis, which addresses the primary and direct benefit for society through the products or services offered. These analyses assess the impact of these products or services the company offers on fundamental needs (i.e., health, mobility, productivity, etc.).

The Core Business analyses do not include the positive or negative externalities of the company's products and services (e.g., pollution during the manufacturing process, job creation, product waste, etc.) as these topics are covered in separate analyses.

The Impact Category will always be 'Products' for these Core Business Impact analyses.

The SASB Theme will always be 'Access & Affordability'.

Regardless of the industries the topic is offered for, the SDG, ILG, and Impact Category remains the same.

The SDG, ILG, and Impact Category will differ depending on the industry the topic is offered for.

Companies that are pioneers, trendsetters, or that are offering impactful solutions that only a handful of players are able to do, are considered solution providers. This topic is about the direct and intended impact of the products or services offered by the company, benefitting other businesses or individuals.

All solution topics fall under the 'Products' Impact Category.

Companies that are social solution providers will most often be linked to the 'Basic Needs' ILG theme, and environmental solution providers will most often be linked to the 'Climate Stability' ILG theme, although these may vary depending on the impact described.

The SDGs will also vary depending on the solution type, as 'social' and 'environmental' remain quite broad (table below).

We can, however, identify the most commonly used SDGs for more granular solution topics, such as:

• Solutions - R&D: SDG 3 and 9
• Solutions - Clean Mobility: SDG 13
• Solutions - Renewable Energy: SDG 7