Our impact calculator aims to show the achieved associated impacts by invested companies within the last year.
The sustainability goal of the EQ Positive Impact Portfolios is to invest in companies and projects that create measurable positive impacts on social and environmental challenges, such as those outlined by the UN Sustainable Development Goals.
Our impact calculator aims to show the achieved associated impacts by invested companies within the last year, created by their core products & services of these companies.
As a shareholder you own part-owner of a business, and applying this logic you can claim ownership of a part of a company’s positive or negative impacts. The impact calculator uses this logic and associates a proportion of the measured positive outcomes with your specific investments in the companies delivering them.
Every year, we take a snapshot of the holdings in each fund held in the EQ Positive Impact Portfolios and conduct a bottom-up research project into their public reporting, websites, and other disclosures. For every holding in the portfolio (approximately 600 unique issuers) we aim to evaluate & quantify the contribution of their core products & services to a target / ‘sub-target’ of one or more of the 17 UN Sustainable Development goals, within the last twelve months.
For example, for a company installing and operating wind turbines, we will seek to collect data on the MWh of renewable energy generated in one year, as it is associated with the environmental goal of ‘affordable and clean energy’, or SDG target 7.2.
While there are a large number of diverse metrics gathered across the 600+ underlying holdings, describing the diverse ways in which these created positive solutions to social/environmental challenges, the twelve metrics shown on the calculator reflect some of the most common positive outcomes in the last year.
It is important to know that we only ever include data describing the primary business activities, and not any immaterial side projects. For example, all companies contributing to the “patients treated” metric operate in healthcare delivery or treatments, and we would not include the likes of a tech business that may be donating vaccines through CSR initiatives. This stringent lens for reporting also prevents us from including impact data on companies which might be making their operations a little less harmful to society or the environment, rather than instilling it in their core business.
Once data has been collected for every underlying holding with availability, we can aggregate it up to the portfolio level. The impact calculator can personalise the attribution of the impact metrics to the specific shareholding of a client. To aggregate per impact metric, we use the following equation:
= (Impact metric reported by company/company enterprise value) x company weighting in one fund within impact portfolio x fund weighting in the EQ Positive Impact Portfolio x amount invested by client = impact metric attributed to client
The impact calculator then shows the positive impact associated with owning a specific amount of investment in a specific EQ Positive Impact portfolio within the last year. The measures shown will differ depending on the amount invested and risk adjusted portfolio invested in.
Investing (e.g. buying shares in a listed company) does not create the positive outputs and outcomes displayed on the calculator: they are instead generated by the activities of our underlying portfolio companies. An investment can be associated with these measures based on company disclosures and share of ownership as described above, but these are not additionally created through the investment placement.
You can access the detailed methodology here.
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