Press Release
July 3, 2023

Data solution aligning capital expenditure to the SDGs

Matter launches 'SDG CapEx Fundamentals', an innovative data solution for aligning company capital expenditure with the UN SDGs

Matter today announced the launch of ‘SDG CapEx Fundamentals’, an innovative data solution. This new dataset enables investors to analyse the extent to which company capital expenditure is aligned, or misaligned, with the targets of the 17 United Nations Sustainable Development Goals.

Adopted in 2015 at COP 21 the UN SDGs were defined as a universal roadmap for achieving a sustainable and inclusive future by 2030. Since then the asset management industry has made significant progress in developing solutions to help address some of the global challenges articulated by the SDGs, using capital allocation and engagement as levers towards a sustainable future. Prioritising investment in the SDGs has the potential to unlock opportunities worth approximately USD 12 trillion and 380 million jobs a year by 2030 for investors. Despite this, a funding gap remains between current investments in companies aligned to the SDGs and what is necessary to meet the 2030 targets set by them.

SDG CapEx Fundamentals helps bridge this gap. The introduction of this dataset further expands Matter’s suite of SDG data, in addition to SDG Signals, a tool for aligning company relevant sustainability insights in the media to the SDGs, and SDG Revenue Fundamentals, a dataset aligning company revenue with the SDGs, developed in collaboration with BNP Paribas Asset Management. SDG CapEx Fundamentals rests on the same fundamental principles and methodological underpinnings as SDG Fundamentals, and therefore operates as a complementary dataset. 

“While SDG Revenue Fundamentals offers an insight into a company’s current SDG alignment, SDG CapEx Fundamentals points to potential future alignment, resulting in a more complete view of company SDG alignment”, said Niels Fibæk-Jensen, CEO and co-founder of Matter. “The SDGs are becoming increasingly relevant as the north star for sustainable investment, and we are excited to introduce another offering to help operationalise the SDGs further as a framework for investors.” 

SDG CapEx Fundamentals provides investors with a framework to understand the extent of the alignment of a company’s capital expenditure streams with individual SDGs and sub-targets, as well as across SDGs. It covers more than 23,000 issuers, and is based on a proprietary SDG taxonomy, itself grounded on a strict reading of UNStats SDG metadata. It can assist investors in enriching their approach to sustainability analysis in four ways: 

  1. Integration: helping investors identify sustainable thematic head- and tail-winds to inform their decision making; 
  2. Regulatory compliance under SFDR and MiFID II to inform ‘sustainable investment’ definitions; 
  3. Stewardship and exclusion purposes: helping investors to identify capital expenditures misaligned to sustainable themes; and 
  4. Portfolio construction and reporting for thematic funds, ETFs, and indexes

SDG CapEx Fundamentals is available via CSV download or via Matter’s online portfolio analysis platform.

About Matter: Matter is a financial technology company specialising in the provision of sustainability insights to the financial industry, based in Copenhagen. Matter offers a wide range of data and solutions which enable investors to better understand the sustainability of their investments, beyond ESG ratings. Matter uses the power of collective intelligence and pioneering technology to provide insights which are granular, transparent and accountable, representing the real-world impact of investments, aligned to leading regulatory and industry-led frameworks, including SFDR and the United Nations Sustainable Development Goals.

Author

Matter today announced the launch of ‘SDG CapEx Fundamentals’, an innovative data solution. This new dataset enables investors to analyse the extent to which company capital expenditure is aligned, or misaligned, with the targets of the 17 United Nations Sustainable Development Goals.

Adopted in 2015 at COP 21 the UN SDGs were defined as a universal roadmap for achieving a sustainable and inclusive future by 2030. Since then the asset management industry has made significant progress in developing solutions to help address some of the global challenges articulated by the SDGs, using capital allocation and engagement as levers towards a sustainable future. Prioritising investment in the SDGs has the potential to unlock opportunities worth approximately USD 12 trillion and 380 million jobs a year by 2030 for investors. Despite this, a funding gap remains between current investments in companies aligned to the SDGs and what is necessary to meet the 2030 targets set by them.

SDG CapEx Fundamentals helps bridge this gap. The introduction of this dataset further expands Matter’s suite of SDG data, in addition to SDG Signals, a tool for aligning company relevant sustainability insights in the media to the SDGs, and SDG Revenue Fundamentals, a dataset aligning company revenue with the SDGs, developed in collaboration with BNP Paribas Asset Management. SDG CapEx Fundamentals rests on the same fundamental principles and methodological underpinnings as SDG Fundamentals, and therefore operates as a complementary dataset. 

“While SDG Revenue Fundamentals offers an insight into a company’s current SDG alignment, SDG CapEx Fundamentals points to potential future alignment, resulting in a more complete view of company SDG alignment”, said Niels Fibæk-Jensen, CEO and co-founder of Matter. “The SDGs are becoming increasingly relevant as the north star for sustainable investment, and we are excited to introduce another offering to help operationalise the SDGs further as a framework for investors.” 

SDG CapEx Fundamentals provides investors with a framework to understand the extent of the alignment of a company’s capital expenditure streams with individual SDGs and sub-targets, as well as across SDGs. It covers more than 23,000 issuers, and is based on a proprietary SDG taxonomy, itself grounded on a strict reading of UNStats SDG metadata. It can assist investors in enriching their approach to sustainability analysis in four ways: 

  1. Integration: helping investors identify sustainable thematic head- and tail-winds to inform their decision making; 
  2. Regulatory compliance under SFDR and MiFID II to inform ‘sustainable investment’ definitions; 
  3. Stewardship and exclusion purposes: helping investors to identify capital expenditures misaligned to sustainable themes; and 
  4. Portfolio construction and reporting for thematic funds, ETFs, and indexes

SDG CapEx Fundamentals is available via CSV download or via Matter’s online portfolio analysis platform.

About Matter: Matter is a financial technology company specialising in the provision of sustainability insights to the financial industry, based in Copenhagen. Matter offers a wide range of data and solutions which enable investors to better understand the sustainability of their investments, beyond ESG ratings. Matter uses the power of collective intelligence and pioneering technology to provide insights which are granular, transparent and accountable, representing the real-world impact of investments, aligned to leading regulatory and industry-led frameworks, including SFDR and the United Nations Sustainable Development Goals.

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